While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

NATIONAL AND COMMUNITY SERVICE ACT OF 1990 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

NATIONAL AND COMMUNITY SERVICE ACT OF 1990 

(Public Law 101--610, Nov. 16, 1990, 104 Stat. 3127) 

(42 U.S.C. 12501 et seq.) 

[As Amended Through P.L. 111-13, Enacted April 21, 2009] 

AN ACT To enhance national and community service, and for other purposes. 

Be it enacted by the Senate and House of Representatives of the 

United States of America in Congress assembled, 

SECTION 1. [42 U.S.C. 12501 note] SHORT TITLE AND TABLE OF CONTENTS. 

(a) SHORT TITLE.-This Act may be cited as the "National and 

Community Service Act of 1990". 

(b) TABLE OF CONTENTS.-The table of contents of this Act is 

as follows: 

Sec. 1. Short title and table of contents. 

Sec. 2. Findings and purpose. 

TITLE I-NATIONAL AND COMMUNITY SERVICE STATE GRANT PROGRAM 

Subtitle A-General Provisions 

Sec. 101. Definitions. 

Sec. 102. Authority to make State grants. 

Subtitle B-School-Based and Community-Based Service-Learning Programs 

PART I-PROGRAMS FOR ELEMENTARY AND SECONDARY SCHOOL STUDENTS 

Sec. 111. Purpose. 

Sec. lllA. Definitions. 

Sec. 112. Assistance to States, territories, and Indian tribes. 

Sec. 112A. Allotments. 

Sec. 113. Applications. 

Sec. 114. Consideration of applications. 

Sec. 115. Participation of students and teachers from private schools. 

Sec. 116. Federal, State, and local contributions. 

Sec. 117. Limitations on uses of funds. 

PART II-HIGHER EDUCATION INNOVATIVE PROGRAMS FOR COMMUNITY SERVICE 

Sec. 118. Higher education innovative programs for community service. 

Sec. 118A. Campuses of Service. 

PART III-INNOVATIVE AND COMMUNITY-BASED SERVICE-LEARNING PROGRAMS AND 

RESEARCH 

Sec. 119. Innovative and community-based service-learning programs and research. 

PART N-SERVICE-LEARNING IMPACT STUDY 

Sec. 120. Study and report. 

Subtitle G---N ational Service Trust Program 

PART I-INVESTMENT IN NATIONAL SERVICE 

Sec. 121. Authority to provide assistance and approved national service positions. 

Sec. 122. National service programs eligible for program assistance. 

3 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 1 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 4 

Sec. 123. Types of national service positions eligible for approval for national serv­ ice educational awards. 

Sec. 124. Types of program assistance. 

Sec. 126. Other special assistance. 

PART II-APPLICATION AND APPROVAL PROCESS 

Sec. 129. Provision of assistance and approved national service positions. 

Sec. 129A. Educational awards only program. 

Sec. 130. Application for assistance and approved national service positions. 

Sec. 131. National service program assistance requirements. 

Sec. 132. Ineligible service categories. 

Sec. 132A. Prohibited activities and ineligible organizations. 

Sec. 133. Consideration of applications. 

PART III-NATIONAL SERVICE PARTICIPANTS 

Sec. 137. Description of participants. 

Sec. 138. Selection of national service participants. 

Sec. 139. Terms of service. 

Sec. 140. Living allowances for national service participants. 

Sec. 141. National service educational awards. 

Subtitle D---National Service Trust and Provision of Educational Awards 

Sec. 145. Establishment of the National Service Trust. 

Sec. 146. Individuals eligible to receive an educational award from the Trust. 

Sec. 146A. Certifications of successful completion of terms of service. 

Sec. 147. Determination of the amount of the educational award. 

Sec. 148. Disbursement of educational awards. 

Sec. 149. Approval process for approved positions. 

Subtitle E-National Civilian Community Corps 

Sec. 151. Purpose. 

Sec. 152. Establishment of National Civilian Community Corps Program. 

Sec. 153. National service program. 

Sec. 154. Summer national service program. 

Sec. 155. National Civilian Community Corps. 

Sec. 156. Training. 

Sec. 157. Service projects. 

Sec. 158. Authorized benefits for Corps members. 

Sec. 159. Administrative provisions. 

Sec. 160. Status of Corps members and Corps personnel under Federal law. 

Sec. 161. Contract and grant authority. 

Sec. 162. Responsibilities of Department of Defense. 

Sec. 163. Advisory board. 

Sec. 164. Evaluations. 

Sec. 165. Definitions. 

Subtitle F-Administrative Provisions 

Sec. 171. Family and medical leave. 

Sec. 172. Reports. 

Sec. 173. Supplementation. 

Sec. 174. Prohibition on use offunds. 

Sec. 175. Nondiscrimination. 

Sec. 176. Notice, hearing, and grievance procedures. 

Sec. 177. Nonduplication and nondisplacement. 

Sec. 178. State Commissions on National and Community Service. 

Sec. 179. Evaluation. 

Sec. 179A. Civic Health Assessment and volunteering research and evaluation. 

Sec. 180. Engagement of participants. 

Sec. 181. Contingent extension. 

Sec. 182. Partnerships with schools. 

Sec. 183. Rights of access, examination, and copying. 

Sec. 184. Drug-free workplace requirements. 

Sec. 184A. Availability of assistance. 

Sec. 185. Consolidated application and reporting requirements. 

Sec. 186. Sustainability. 

Sec. 187. Grant periods. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

5 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 1 

Sec. 188. Generation of volunteers. 

Sec. 189. Limitation on program grant costs. 

Sec. 189A. Matching requirements for severely economically distressed commu- nities. 

Sec. 189B. Audits and reports. 

Sec. 189C. Restrictions on Federal Government and uses of Federal funds. 

Sec. 189D. Criminal history checks. 

Subtitle G-Corporation for National and Community Service 

Sec. 191. Corporation for National and Community Service. 

Sec. 192. Board of Directors. 

Sec. 192A. Authorities and duties of the Board of Directors. 

Sec. 193. Chief Executive Officer. 

Sec. 193A. Authorities and duties of the Chief Executive Officer. 

Sec. 194. Officers. 

Sec. 195. Employees, consultants, and other personnel. 

Sec. 196. Administration. 

Sec. 196A. Corporation State offices. 

Sec. 196B. Assignment to State Commissions. 

Sec. 196C. Study of involvement of veterans. 

Subtitle H-Investment for Quality and Innovation 

PART I-ADDITIONAL CORPORATION ACTMTIES To SUPPORT NATIONAL SERVICE 

Sec. 198. Additional corporation activities to support national service. 

Sec. 198A. Presidential awards for service. 

Sec. 198B. ServeAmerica Fellowships. 

Sec. 198C. Silver Scholarships and Encore Fellowships. 

PART II-NATIONAL SERVICE RESERVE CORPS 

Sec. 198H. National Service Reserve Corps. 

PART III-SOCIAL INNOVATION FUNDS PILOT PROGRAM 

Sec. 198K. Funds. 

PART IV-NATIONAL SERVICE PROGRAMS CLEARINGHOUSES; VOLUNTEER GENERATION 

FUND 

Sec. 1980. National service programs clearinghouses. 

Sec. 198P. Volunteer generation fund. 

PART V-NONPROFIT CAPACITY BUILDING PROGRAM 

Sec. 198S. Nonprofit capacity building. 

Subtitle I-American Conservation and Youth Corps 

Sec. 199. Short title. 

Sec. 199A. General authority. 

Sec. 199B. Limitation on purchase of capital equipment. 

Sec. 199C. State application. 

Sec. 199D. Focus of programs. 

Sec. 199E. Related programs. 

Sec. 199F. Public lands or Indian lands. 

Sec. 199G. Training and education services. 

Sec. 199H. Preference for certain projects. 

Sec. 1991. Age and citizenship criteria for enrollment. 

Sec. 199J. Use of volunteers. 

Sec. 199K. Living allowance. 

Sec. 199L. Joint programs. 

Sec. 199M. Federal and State employee status. 

Subtitle J-Training and Technical Assistance 

Sec. 199N. Training and technical assistance. 

TITLE II-MODIFICATIONS OF EXISTING PROGRAMS 

Subtitle A-Publication 

Sec. 201. Information for students. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 2 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 6 

Sec. 202. Exit counseling for borrowers. 

Sec. 203. Department information on deferments and cancellations. 

Sec. 204. Data on deferments and cancellations. 

Subtitle B---Youthbuild Projects 

Sec. 211. Youthbuild projects. 

Subtitle G---Amendments to Student Literacy Corps 

Sec. 221. Amendments to Student Literacy Corps. 

TITLE N-PROJECTS HONORING VICTIMS OF TERRORIST ATTACKS 

Sec. 401. Projects. 

TITLE V-AUTHORIZATION OF APPROPRIATIONS 

Sec. 501. Authorization of appropriations. 

TITLE VI-MISCELLANEOUS PROVISIONS 

Sec. 601. Amtrak waste disposal. Sec. 602. Exchange program with countries in transition from totalitarianism to democracy. 

SEC. 2. [42 U.S.C. 12501] FINDINGS AND PURPOSE. 

(a) FINDINGS.-The Congress finds the following: 

(1) Throughout the United States, there are pressing 

unmet human, educational, environmental, and public safety 

needs. 

(2) Americans desire to affirm common responsibilities and 

shared values, and join together in positive experiences, that 

transcend race, religion, gender, age, disability, region, income, 

and education. 

(3) The rising costs of postsecondary education are putting 

higher education out of reach for an increasing number of citizens. 

(4) Americans of all ages can improve their communities 

and become better citizens through service to the United 

States. 

(5) Nonprofit organizations, local governments, States, and 

the Federal Government are already supporting a wide variety 

of national service programs that deliver needed services in a 

cost-effective manner. 

(6) Residents of low-income communities, especially youth 

and young adults, can be empowered through their service, and 

can help provide future community leadership. 

(b) PuRPOSE.-lt is the purpose of this Act to-- (1) meet the unmet human, educational, environmental, 

and public safety needs of the United States, without displacing existing workers; 

(2) renew the ethic of civic responsibility and the spirit of 

community and service throughout the varied and diverse communities of the United States; 

(3) expand educational opportunity by rewarding individuals who participate in national service with an increased ability to pursue higher education or job training; 

1 Section 1301(b) of Public Law 107-117 (115 Stat. 2339) amended this Act by inserting before 

title V a new title IV without making a conforming amendment to the table of sections. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

7 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 2 

(4) encourage citizens of the United States, regardless of 

age, income, geographic location, or disability, to engage in 

full-time or part-time national service; 

(5) reinvent government to eliminate duplication, support 

locally established initiatives, require measurable goals for performance, and offer flexibility in meeting those goals; 

(6) expand and strengthen existing national service programs with demonstrated experience in providing structured 

service opportunities with visible benefits to the participants 

and community; 

(7) build on the existing organizational service infrastructure of Federal, State, and local programs, agencies, and communities to expand full-time and part-time service opportunities for all citizens; 

(8) provide tangible benefits to the communities in which 

national service is performed; 

(9) expand and strengthen service-learning programs 

through year-round opportunities, including opportunities during the summer months, to improve the education of children 

and youth and to maximize the benefits of national and community service, in order to renew the ethic of civic responsibility and the spirit of community for children and youth 

throughout the United States; 

(10) assist in coordinating and strengthening Federal and 

other service opportunities, including opportunities for participation in emergency and disaster preparedness, relief, and recovery; 

(11) increase service opportunities for the Nation's retiring 

professionals, including such opportunities for those retiring 

from the science, technical, engineering, and mathematics professions, to improve the education of the Nation's youth and 

keep America competitive in the global knowledge economy, 

and to further utilize the experience, knowledge, and skills of 

older individuals; 

(12) encourage the continued service of the alumni of the 

national service programs, including service in times of national need; 

(13) encourage individuals age 55 or older to partake of 

service opportunities; 

(14) focus national service on the areas of national need 

such service has the capacity to address, such as improving 

education, increasing energy conservation, improving the 

health status of economically disadvantaged individuals, and 

improving economic opportunity for economically disadvantaged individuals; 

(15) recognize and increase the impact of social entrepreneurs and other nonprofit community organizations in addressing national and local challenges; 

(16) increase public and private investment in nonprofit 

community organizations that are effectively addressing national and local challenges and encourage such organizations to 

replicate and expand successful initiatives; 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 101 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 8 

(17) leverage Federal investments to increase State, local, 

business, and philanthropic resources to address national and 

local challenges; 

(18) support institutions of higher education that engage 

students in community service activities and provide highquality service-learning opportunities; and 

(19) recognize the expertise veterans can offer to national 

service programs, expand the participation of the veterans in 

the national service programs, and assist the families of veterans and members of the Armed Forces on active duty. 

TITLE I-NATIONAL AND COMMUNITY 

SERVICE STATE GRANT PROGRAM 

Subtitle A-General Provisions 

SEC. 101. [42 U.S.C. 12511] DEFINITIONS. 

For purposes of this title: 

(1) ADULT VOLUNTEER.-The term "adult volunteer'' means 

an individual, such as an older adult, an individual with a disability, a parent, or an employee of a business or public or private nonprofit organization, who- (A) works without financial remuneration in an educational institution to assist students or out-of-school 

youth; and 

(B) is beyond the age of compulsory school attendance 

in the State in which the educational institution is located. 

(2) ALASKA NATIVE-SERVING INSTITUTION.-The term "Alaska Native-serving institution" has the meaning given the term 

in section 317(b) of the Higher Education Act of 1965 (20 

U.S.C. 1059d(b)). 

(3) APPROVED NATIONAL SERVICE POSITION.-The term "approved national service position" means a national service position for which the Corporation has approved the provision of 

a national service educational award described in section 147 

as one of the benefits to be provided for successful service in 

the position. 

(4) APPROVED SILVER SCHOLAR POSITION.-The term "approved silver scholar position" means a position, in a program 

described in section 198C(a), for which the Corporation has approved the provision of a silver scholarship educational award 

as one of the benefits to be provided for successful service in 

the position. 

(5) APPROVED SUMMER OF SERVICE POSITION.-The term 

"approved summer of service position" means a position, in a 

program described in section 119(c)(8), for which the Corporation has approved the provision of a summer of service educational award as one of the benefits to be provided for successful service in the position. 

(6) ASIAN AMERICAN AND NATIVE AMERICAN PACIFIC ISLANDER-SERVING INSTITUTION.-The term "Asian American and 

Native American Pacific Islander-serving institution" has the 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

9 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 101 

meaning given the term in section 320(b) of the Higher Education Act of 1965 (20 U.S.C. 1059g(b)). 

(7) AUTHORIZING COMMITTEES.-The term "authorizing 

committees" means the Committee on Education and Labor of 

the House of Representatives and the Committee on Health, 

Education, Labor, and Pensions of the Senate. 

(8) CARRY OUT.-The term "carry out", when used in connection with a national service program, means the planning, 

establishment, operation, expansion, or replication of the program. 

(9) CHIEF EXECUTIVE OFFICER.-The term "Chief Executive 

Officer'', except when used to refer to the chief executive officer 

of a State, means the Chief Executive Officer of the Corporation appointed under section 193. 

(10) COMMUNITY-BASED AGENCY.-The term "communitybased agency'' means a private nonprofit organization (including a church or other religious entity) that- (A) is representative of a community or a significant 

segment of a community; and 

(B) is engaged in meeting human, educational, environmental, or public safety community needs. 

(11) COMMUNITY-BASED ENTITY.-The term "communitybased entity" means a public or private nonprofit organization 

that- (A) has experience with meeting unmet human, educational, environmental, or public safety needs; and 

(B) meets other such criteria as the Chief Executive 

Officer may establish. 

(12) CORPORATION.-The term "Corporation" means the 

Corporation for National and Community Service established 

under section 191. 

(13) DISADVANTAGED YOUTH.-The term "disadvantaged 

youth" includes those youth who are economically disadvantaged and 1 or more of the following: 

(A) Who are out-of-school youth, including out-of- school youth who are unemployed. 

(B) Who are in or aging out of foster care. 

(C) Who have limited English proficiency. 

(D) Who are homeless or who have run away from 

home. 

(E) Who are at-risk to leave secondary school without 

a diploma. 

(F) Who are former juvenile offenders or at risk of delinquency. 

(G) Who are individuals with disabilities. 

(14) ECONOMICALLY DISADVANTAGED.-The term "economically disadvantaged" means, with respect to an individual, an 

individual who is determined by the Chief Executive Officer to 

be low-income according to the latest available data from the 

Department of Commerce. 

(15) ELEMENTARY SCHOOL.-The term "elementary school" 

has the same meaning given such term in section 9101 of the 

Elementary and Secondary Education Act of 1965. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 101 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 10 

(16) ENCORE SERVICE PROGRAM.-The term "encore service 

program" means a program, carried out by an eligible entity as 

described in subsection (a), (b), or (c) of section 122, that- (A) involves a significant number of participants age 

55 or older in the program; and 

(B) takes advantage of the skills and experience that 

such participants offer in the design and implementation 

of the program. 

(17) HISPANIC-SERVING INSTITUTION.-The term "Hispanicserving institution" has the meaning given such term in section 502(a) of the Higher Education Act of 1965 (20 U.S.C. 

ll0la(a)). 

(18) HISTORICALLY BLACK COLLEGE OR UNIVERSITY.-The 

term "historically black college or university" means a part B 

institution, as defined in section 322 of the Higher Education 

Act of 1965 (20 U.S.C. 1061). 

(19) INDIAN.-The term "Indian" means a person who is a 

member of an Indian tribe, or is a "Native", as defined in section 3(b) of the Alaska Native Claims Settlement Act (43 

U.S.C. 1602(b)). 

(20) INDIAN LANDS.-The term "Indian lands" means any 

real property owned by an Indian tribe, any real property held 

in trust by the United States for an Indian or Indian tribe, and 

any real property held by an Indian or Indian tribe that is subject to restrictions on alienation imposed by the United States. 

(21) INDIAN TRIBE.-The term "Indian tribe" means- (A) an Indian tribe, band, nation, or other organized 

group or community, including- (i) any Native village, as defined in section 3(c) of 

the Alaska Native Claims Settlement Act (43 U.S.C. 

1602(c)), whether organized traditionally or pursuant 

to the Act of June 18, 1934 (commonly known as the 

"Indian Reorganization Act"; 48 Stat. 984, chapter 

576; 25 U.S.C 461 et seq.); and 

(ii) any Regional Corporation or Village Corporation, as defined in subsection (g) or (j), respectively, of 

section 3 of the Alaska Native Claims Settlement Act 

(43 U.S.C. 1602 (g) or (j)), 

that is recognized as eligible for the special programs and 

services provided by the United States under Federal law 

to Indians because of their status as Indians; and 

(B) any tribal organization controlled, sanctioned, or 

chartered by an entity described in subparagraph (A). 

(22) INDMDUAL WITH A DISABILITY.-Except as provided in 

section 175(a), the term "individual with a disability" has the 

meaning given the term in section 7(20)(B) of the Rehabilitation Act of 1973. 

(23) INSTITUTION OF HIGHER EDUCATION.-The term "institution of higher education" has the same meaning given such 

term in sections lOl(a) and 102(a)(l) of the Higher Education 

Act of 1965. 

(24) LOCAL EDUCATIONAL AGENCY.-The term "local educational agency" has the same meaning given such term in secMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

11 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 101 

tion 9101 of the Elementary and Secondary Education Act of 

1965. 

(25) MEDICALLY UNDERSERVED POPULATION.-The term 

"medically underserved population" has the meaning given 

that term in section 330(b)(3) of the Public Health Service Act 

(42 U.S.C. 254b(b)(3)). 

(26) NATIONAL SERVICE LAWS.-The term "national service 

laws" means this Act and the Domestic Volunteer Service Act 

of 1973 (42 U.S.C. 4950 et seq.). 

(27) NATIVE AMERICAN-SERVING, NONTRIBAL INSTITUTION.­

The term "Native American-serving, nontribal institution" has 

the meaning given the term in section 319(b) of the Higher 

Education Act of 1965 (20 U.S.C. 1059f(b)). 

(28) NATIVE HAWAIIAN-SERVING INSTITUTION.-The term 

"Native Hawaiian-serving institution" has the meaning given 

the term in section 317(b) of the Higher Education Act of 1965 

(20 U.S.C. 1059d(b)). 

(29) OUT-OF-SCHOOL YOUTH.-The term "out-of-school 

youth" means an individual who-- (A) has not attained the age of 27; 

(B) has not completed college or the equivalent thereof; and 

(C) is not enrolled in an elementary or secondary 

school or institution of higher education. 

(30) PARTICIPANT.- (A) IN GENERAL.-The term "participant" means- (i) for purposes of subtitle C, an individual in an 

approved national service position; and 

(ii) for purposes of any other provision of this Act, 

an individual enrolled in a program that receives assistance under this title. 

(B) RULE.-A participant shall not be considered to be 

an employee of the organization receiving assistance under 

the national service laws through which the participant is 

engaging in service. 

(31) PARTNERSHIP PROGRAM.-The term "partnership program" means a program through which an adult volunteer, a 

public or private nonprofit organization, an institution of higher education, or a business assists a local educational agency. 

(32) PREDOMINANTLY BLACK INSTITUTION.-The term "Predominantly Black Institution" has the meaning given the term 

in section 318 of the Higher Education Act of 1965 (20 U.S.C. 

1059e). 

(33) PRINCIPLES OF SCIENTIFIC RESEARCH.-The term "principles of scientific research" means principles of research 

that- (A) apply rigorous, systematic, and objective methodology to obtain reliable and valid knowledge relevant to 

the subject matter involved; 

(B) present findings and make claims that are appropriate to, and supported by, the methods that have been 

employed; and 

(C) include, appropriate to the research being conductedMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 101 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 12 

(i) use of systematic, empirical methods that draw 

on observation or experiment; 

(ii) use of data analyses that are adequate to support the general findings; 

(iii) reliance on measurements or observational 

methods that provide reliable and generalizable findings; 

(iv) strong claims of causal relationships, only 

with research designs that eliminate plausible competing explanations for observed results, such as, but 

not limited to, random-assignment experiments; 

(v) presentation of studies and methods in sufficient detail and clarity to allow for replication or, at 

a minimum, to offer the opportunity to build systematically on the findings of the research; 

(vi) acceptance by a peer-reviewed journal or critique by a panel of independent experts through a 

comparably rigorous, objective, and scientific review; 

and 

(vii) consistency of findings across multiple studies 

or sites to support the generality of results and conclusions. 

(34) PROGRAM.-The term "program", unless the context 

otherwise requires, and except when used as part of the term 

"academic program", means a program described in section 

112(a) (other than a program referred to in paragraph (3)(B) of 

such section), 118A, or 118(b)(l), or subsection (a), (b), or (c) of 

section 122, or in paragraph (1) or (2) of section 152(b), section 

198B, 198C, 198G, 198H, or 198K, or an activity that could be 

funded under section 179A, 198, 1980, 198P, or 199N. 

(35) PROJECT.-The term "project" means an activity, carried out through a program that receives assistance under this 

title, that results in a specific identifiable service or improvement that otherwise would not be done with existing funds, 

and that does not duplicate the routine services or functions of 

the employer to whom participants are assigned. 

(36) QUALIFIED ORGANIZATION.-The term "qualified organization" means a public or private nonprofit organization with 

experience working with school-age youth that meets such criteria as the Chief Executive Officer may establish. 

(37) SCHOOL-AGE YOUTH.-The term "school-age youth" 

means-

(A) individuals between the ages of 5 and 17, inclusive; and 

(B) children with disabilities, as defined in section 

602(3) of the Individuals with Disabilities Education Act 

(20 U.S.C. 1401(3)), who receive services under part B of 

such Act. 

(38) SCIENTIFICALLY VALID RESEARCH.-The term "scientifically valid research" includes applied research, basic research, 

and field-initiated research in which the rationale, design, and 

interpretation are soundly developed in accordance with principles of scientific research. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

13 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 101 

(39) SECONDARY SCHOOL.-The term "secondary school" 

has the same meaning given such term in section 9101 of the 

Elementary and Secondary Education Act of 1965. 

(40) SERVICE-LEARNING.-The term "service-learning'' 

means a method- (A) under which students or participants learn and develop through active participation in thoughtfully organized service that- (i) is conducted in and meets the needs of a community; 

(ii) is coordinated with an elementary school, secondary school, institution of higher education, or community service program, and with the community; and 

(iii) helps foster civic responsibility; and 

(B) that- (i) is integrated into and enhances the academic 

curriculum of the students, or the educational components of the community service program in which the 

participants are enrolled; and 

(ii) provides structured time for the students or 

participants to reflect on the service experience. 

(41) SERVICE-LEARNING COORDINATOR.-The term "servicelearning coordinator'' means an individual who provides services as described in subsection (a)(3) or (b) of section 112. 

( 42) SERVICE SPONSOR.-The term "service sponsor'' means 

an organization, or other entity, that has been selected to provide a placement for a participant. 

(43) STATE.-The term "State" means each of the several 

States, the District of Columbia, the Commonwealth of Puerto 

Rico, the United States Virgin Islands, Guam, American 

Samoa, and the Commonwealth of the Northern Mariana Islands. 

(44) STATE COMMISSION.-The term "State Commission" 

means a State Commission on National and Community Service maintained by a State pursuant to section 178. Except 

when used in section 178, the term includes an alternative administrative entity for a State approved by the Corporation 

under such section to act in lieu of a State Commission. 

(45) STATE EDUCATIONAL AGENCY.-The term "State educational agency" has the same meaning given such term in section 9101 of the Elementary and Secondary Education Act of 

1965. 

(46) STUDENT.-The term "student" means an individual 

who is enrolled in an elementary or secondary school or institution of higher education on a full- or part-time basis. 

(47) TERRITORY.-The term "territory" means the United 

States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands. 

(48) TRIBALLY CONTROLLED COLLEGE OR UNIVERSITY.-The 

term "tribally controlled college or university" has the meaning 

given such term in section 2 of the Tribally Controlled Colleges 

and Universities Assistance Act of 1978 (25 U.S.C. 1801). 

(49) VETERAN.-The term ''veteran" has the meaning given 

the term in section 101 of title 38, United States Code. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 111 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 14 

Subtitle B-School-Based and CommunityBased Service-Learning Programs 

PART I-PROGRAMS FOR ELEMENTARY AND 

SECONDARY SCHOOL STUDENTS 

SEC. 111. [42 U.S.C. 12521] PURPOSE. 

The purpose of this part is to promote service-learning as a 

strategy to-- ( 1) support high-quality service-learning projects that engage students in meeting community needs with demonstrable 

results, while enhancing students' academic and civic learning; 

and 

(2) support efforts to build institutional capacity, including 

the training of educators, and to strengthen the service infrastructure to expand service opportunities. 

SEC. 111A. [42 U.S.C. 12522] DEFINITIONS. 

In this part: 

(1) STATE.-The term "State" means each of the several 

States, the District of Columbia, and the Commonwealth of 

Puerto Rico. 

(2) STATE EDUCATIONAL AGENCY.-The term "State educational agency'' means- (A) a State educational agency (as defined in section 

101) of a State; or 

(B) for a State in which a State educational agency described in subparagraph (A) has designated a statewide 

entity under section 112(e), that designated statewide entity. 

SEC. 112. [42 U.S.C. 12523] ASSISTANCE TO STATES, TERRITORIES, AND 

INDIAN TRIBES. 

(a) ALLOTMENTS TO STATES, TERRITORIES, AND INDIAN 

TRIBES.-The Corporation, in consultation with the Secretary of 

Education, may make allotments to State educational agencies, territories, and Indian tribes to pay for the Federal share of- ( 1) planning and building the capacity within the State, 

territory, or Indian tribe involved to implement service-learning programs that are based principally in elementary schools 

and secondary schools, including- (A) providing training and professional development 

for teachers, supervisors, personnel from community-based 

entities (particularly with regard to the recruitment, utilization, and management of participants), and trainers, to 

be conducted by qualified individuals or organizations that 

have experience with service-learning; 

(B) developing service-learning curricula, consistent 

with State or local academic content standards, to be integrated into academic programs, including curricula for an 

age-appropriate learning component that provides participants an opportunity to analyze and apply their service experiences; 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

15 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 112 

(C) forming local partnerships described in paragraph 

(2) or (4)(D) to develop school-based service-learning programs in accordance with this part; 

(D) devising appropriate methods for research on and 

evaluation of the educational value of service-learning and 

the effect of service-learning activities on communities; 

(E) establishing effective outreach and dissemination 

of information to ensure the broadest possible involvement 

of community-based entities with demonstrated effectiveness in working with school-age youth in their communities; and 

(F) establishing effective outreach and dissemination 

of information to ensure the broadest possible participation 

of schools throughout the State, throughout the territory, 

or serving the Indian tribe involved with particular attention to schools not making adequate yearly progress for 

two or more consecutive years under section 1111 of the 

Elementary and Secondary Education Act of 1965 (20 

U.S.C. 6301 et seq.); 

(2) implementing, operating, or expanding school-based 

service-learning programs, which may include paying for the 

cost of the recruitment, training, supervision, placement, salaries, and benefits of service-learning coordinators, through distribution by State educational agencies, territories, and Indian 

tribes of Federal funds made available under this part to 

projects operated by local partnerships among- (A) local educational agencies; and 

(B) 1 or more community partners that- (i) shall include a public or private nonprofit organization that- (!) has a demonstrated expertise in the provision of services to meet unmet human, education, 

environmental, or public safety needs; 

(II) will make projects available for participants, who shall be students; and 

(III) was in existence at least 1 year before 

the date on which the organization submitted an 

application under section 113; and 

(ii) may include a private for-profit business, private elementary school or secondary school, or Indian 

tribe (except that an Indian tribe distributing funds to 

a project under this paragraph is not eligible to be 

part of the partnership operating that project); 

(3) planning of school-based service-learning programs, 

through distribution by State educational agencies, territories, 

and Indian tribes of Federal funds made available under this 

part to local educational agencies and Indian tribes, which 

planning may include paying for the cost of- (A) the salaries and benefits of service-learning coordinators; or 

(B) the recruitment, training and professional development, supervision, and placement of service-learning coordinators who may be participants in a program under subtitle C or receive a national service educational award 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 112 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 16 

under subtitle D, who may be participants in a project 

under section 201 of the Domestic Volunteer Service Act of 

1973 (42 U.S.C. 5001), or who may participate in a 

Youthbuild program under section 173A of the Workforce 

Investment Act of 1998 (29 U.S.C. 2918a), 

who will identify the community partners described in paragraph (2)(B) and assist in the design and implementation of a 

program described in paragraph (2); 

(4) implementing, operating, or expanding school-based 

service-learning programs to utilize adult volunteers in servicelearning to improve the education of students, through distribution by State educational agencies, territories, and Indian 

tribes of Federal funds made available under this part to-- (A) local educational agencies; 

(B) Indian tribes (except that an Indian tribe distributing funds under this paragraph is not eligible to be a recipient of those funds); 

(C) public or private nonprofit organizations; or 

(D) partnerships or combinations of local educational 

agencies, and entities described in subparagraph (B) or 

(C); and 

(5) developing, as service-learning programs, civic engagement programs that promote a better understanding of- (A) the principles of the Constitution, the heroes of 

United States history (including military heroes), and the 

meaning of the Pledge of Allegiance; 

(B) how the Nation's government functions; and 

(C) the importance of service in the Nation's character. 

(b) DUTIES OF SERVICE-LEARNING COORDINATOR-A servicelearning coordinator referred to in paragraph (2) or (3) of subsection (a) shall provide services to a local partnership described in 

subsection (a)(2) or entity described in subsection (a)(3), respectively, that may include- (1) providing technical assistance and information to, and 

facilitating the training of, teachers and assisting in the planning, development, execution, and evaluation of service-learning in their classrooms; 

(2) assisting local partnerships described in subsection 

(a)(2) in the planning, development, and execution of servicelearning projects, including summer of service programs; 

(3) assisting schools and local educational agencies in developing school policies and practices that support the integration of service-learning into the curriculum; and 

( 4) carrying out such other duties as the local partnership 

or entity, respectively, may determine to be appropriate. 

(c) RELATED EXPENSES.-An entity that receives financial assistance under this part from a State, territory, or Indian tribe 

may, in carrying out the activities described in subsection (a), use 

such assistance to pay for the Federal share of reasonable costs related to the supervision of participants, program administration, 

transportation, insurance, and evaluations and for other reasonable 

expenses related to the activities. 

(d) SPECIAL RULE.-A State educational agency described in 

section 111A(2)(A) may designate a statewide entity (which may be 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

17 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 112A 

a community-based entity) with demonstrated experience in supporting or implementing service-learning programs, to receive the 

State educational agency's allotment under this part, and carry out 

the functions of the agency under this part. 

(e) CONSULTATION WITH SECRETARY OF EDUCATION.-The Corporation is authorized to enter into agreements with the Secretary 

of Education for initiatives (and may use funds authorized under 

section 501(a)(6) to enter into the agreements if the additional costs 

of the initiatives are warranted) that may include- ( 1) identification and dissemination of research findings on 

service-learning and scientifically valid research based practices for service-learning; and 

(2) provision of professional development opportunities 

that- (A) improve the quality of service-learning instruction 

and delivery for teachers both preservice and in-service, 

personnel from community-based entities and youth workers; and 

(B) create and sustain effective partnerships for service-learning programs between local educational agencies, 

community-based entities, businesses, and other stakeholders. 

SEC.112A. [42 U.S.C.12524] ALLOTMENI'S. 

(a) INDIAN TRIBES AND TERRITORIES.-Of the amounts appropriated to carry out this part for any fiscal year, the Corporation 

shall reserve an amount of not less than 2 percent and not more 

than 3 percent for payments to Indian tribes, the United States 

Virgin Islands, Guam, American Samoa, and the Commonwealth of 

the Northern Mariana Islands, to be allotted in accordance with 

their respective needs. 

(b) ALLOTMENTS THROUGH STATES.- (1) IN GENERAL.-After reserving an amount under subsection (a), the Corporation shall use the remainder of the 

funds appropriated to carry out this part for the fiscal year as 

follows: 

(A) ALLOTMENTS BASED ON SCHOOL-AGE YOUTH.-From 

50 percent of such remainder, the Corporation shall allot 

to each State an amount that bears the same ratio to 50 

percent of such remainder as the number of school-age 

youth in the State bears to the total number of school-age 

youth in all States. 

(B) ALLOTMENTS BASED ON ALLOCATIONS UNDER ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965.-From 

50 percent of such remainder, the Corporation shall allot 

to each State an amount that bears the same ratio to 50 

percent of such remainder as the allocation to the State for 

the previous fiscal year under title I of the Elementary and 

Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) 

bears to the total of such allocations to all States. 

(2) MINIMUM AMOUNT.-For any fiscal year for which 

amounts appropriated for this subtitle exceed $50,000,000, the 

minimum allotment to each State under paragraph (1) shall be 

$75,000. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 113 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 18 

(c) REALLOTMENT.-If the Corporation determines that the allotment of a State, territory, or Indian tribe under this section will 

not be required for a fiscal year because the State, territory, or Indian tribe did not submit and receive approval of an application for 

the allotment under section 113, the Corporation shall make the allotment for such State, territory, or Indian tribe available for 

grants to community-based entities to carry out service-learning 

programs as described in section 112(b) in such State, in such territory, or for such Indian tribe. After community-based entities apply 

for grants from the allotment, by submitting an application at such 

time and in such manner as the Corporation requires, and receive 

approval, the remainder of such allotment shall be available for reallotment to such other States, territories, or Indian tribes with approved applications submitted under section 113 as the Corporation 

may determine to be appropriate. 

SEC.113. [42 U.S.C.12525] APPLICATIONS. 

(a) APPLICATIONS TO CORPORATION FOR ALLOTMENTS.- (1) IN GENERAL.-To be eligible to receive an allotment 

under section 112A, a State, acting through the State educational agency, territory, or Indian tribe shall prepare and 

submit to the Corporation an application at such time and in 

such manner as the Chief Executive Officer may reasonably require, and obtain approval of the application. 

(2) C0NTENTS.-An application for an allotment under section 112 shall include- (A) a proposal for a 3-year plan promoting servicelearning, which shall contain such information as the 

Chief Executive Officer may reasonably require, including 

how the applicant will integrate service opportunities into 

the academic program of the participants; 

(B) information about the criteria the State educational agency, territory, or Indian tribe will use to evaluate and grant approval to applications submitted under 

subsection (b), including an assurance that the State educational agency, territory, or Indian tribe will comply with 

the requirement in section 114(a); 

(C) assurances about the applicant's efforts to-- (i) ensure that students of different ages, races, 

sexes, ethnic groups, disabilities, and economic backgrounds have opportunities to serve together; 

(ii) include any opportunities for students, enrolled in schools or programs of education providing elementary or secondary education, to participate in 

service-learning programs and ensure that such service-learning programs include opportunities for such 

students to serve together; 

(iii) involve participants in the design and operation of the programs; 

(iv) promote service-learning in areas of greatest 

need, including low-income or rural areas; and 

(v) otherwise integrate service opportunities into 

the academic program of the participants; and 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

19 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 114 

(D) assurances that the applicant will comply with the 

nonduplication and nondisplacement requirements of section 177 and the notice, hearing, and grievance procedures 

required by section 176. 

(b) APPLICATION TO STATE, TERRITORY, OR INDIAN TRIBE FOR 

ASSISTANCE To CARRY OUT SCHOOL-BASED SERVICE-LEARNING PROGRAMS.-

(1) IN GENERAL.-Any- (A) qualified organization, Indian tribe, territory, local 

educational agency, for-profit business, private elementary 

school or secondary school, or institution of higher education that desires to receive financial assistance under 

this subpart from a State, territory, or Indian tribe for an 

activity described in section 112(a)(l); 

(B) partnership described in section 112(a)(2) that desires to receive such assistance from a State, territory, or 

Indian tribe for an activity described in section 112(a)(2); 

(C) entity described in section 112(a)(3) that desires to 

receive such assistance from a State, territory, or Indian 

tribe for an activity described in such section; 

(D) entity or partnership described in section 112(a)(4) 

that desires to receive such assistance from a State, territory, or Indian tribe for an activity described in such section; and 

(E) entity that desires to receive such assistance from 

a State, territory, or Indian tribe for an activity described 

in section lll(a)(5), 

shall prepare, submit to the State educational agency for the 

State, territory, or Indian tribe, and obtain approval of, an application for the program. 

(2) SUBMISSION.-Such application shall be submitted at 

such time and in such manner, and shall contain such information, as the agency, territory, or Indian tribe may reasonably 

require. 

SEC.114. [42 U.S.C.12526] CONSIDERATION OF APPLICATIONS. 

(a) CRITERIA FOR LOCAL APPLICATIONS.-ln providing assistance under this part, a State educational agency, territory, or Indian tribe (or the Corporation if section 112A(c) applies) shall consider criteria with respect to sustainability, replicability, innovation, and quality of programs. 

(b) PRIORITY FOR LOCAL APPLICATIONS.-ln providing assistance under this part, a State educational agency, territory, or Indian tribe (or the Corporation if section 112A(c) applies) shall give 

priority to entities that submit applications under section 113 with 

respect to service-learning programs described in section 111 that 

are in the greatest need of assistance, such as programs targeting 

low-income areas or serving economically disadvantaged youth. 

(c) REJECTION OF APPLICATIONS TO CORPORATION.-If the Corporation rejects an application submitted by a State, territory, or 

Indian tribe under section 113 for an allotment, the Corporation 

shall promptly notify the State, territory, or Indian tribe of the reasons for the rejection of the application. The Corporation shall provide the State, territory, or Indian tribe with a reasonable opporMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 115 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 20 

tunity to revise and resubmit the application and shall provide 

technical assistance, if needed, to the State, territory, or Indian 

tribe as part of the resubmission process. The Corporation shall 

promptly reconsider such resubmitted application. 

SEC. 115. [42 U.S.C. 12527] PARTICIPATION OF STUDENTS AND TEACHERS FROM PRIVATE SCHOOLS. 

(a) IN GENERAL.-To the extent consistent with the number of 

students in the State, in the territory, or served by the Indian tribe 

or in the school district of the local educational agency involved 

who are enrolled in private nonprofit elementary schools and secondary schools, such State, territory, or Indian tribe, or agency 

shall (after consultation with appropriate private school representatives) make provision- (1) for the inclusion of services and arrangements for the 

benefit of such students so as to allow for the equitable participation of such students in the programs implemented to carry 

out the objectives and provide the benefits described in this 

part; and 

(2) for the training of the teachers of such students so as 

to allow for the equitable participation of such teachers in the 

programs implemented to carry out the objectives and provide 

the benefits described in this part. 

(b) WAIVER.-If a State, territory, Indian tribe, or local educational agency is prohibited by law from providing for the participation of students or teachers from private nonprofit schools as required by subsection (a), or if the Corporation determines that a 

State, territory, Indian tribe, or local educational agency substantially fails or is unwilling to provide for such participation on an 

equitable basis, the Chief Executive Officer shall waive such requirements and shall arrange for the provision of services to such 

students and teachers. 

SEC. 116. [42 U.S.C. 12528] FEDERAL, STATE, AND LOCAL CONTRIBUTIONS. 

(a) CORPORATION SHARE.- (1) IN GENERAL.-The Corporation share of the cost of carrying out a program for which a grant is made from an allotment under this part- (A) for new grants may not exceed 80 percent of the 

total cost of the program for the first year of the grant period, 65 percent for the second year, and 50 percent for 

each remaining year; and 

(B) for continuing grants, may not exceed 50 percent 

of the total cost of the program. 

(2) NONCORPORATION CONTRIBUTION.-ln providing for the 

remaining share of the cost of carrying out such a program, 

each recipient of such a grant under this part- (A) shall provide for such share through a payment in 

cash or in kind, fairly evaluated, including facilities, equipment, or services; 

(B) except as provided in subparagraph (C), may provide for such share through Federal, State, or local 

sources, including private funds or donated services; and 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

21 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 118 

(C) may not provide for such share through Federal 

funds made available under title I of the Elementary and 

Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.) 

or the Individuals with Disabilities Education Act (20 

U.S.C. 1400 et seq.). 

(b) WAIVER.-The Chief Executive Officer may waive the requirements of subsection (a) in whole or in part with respect to any 

such program for any fiscal year, on a determination that such a 

waiver would be equitable due to a lack of resources at the local 

level. 

SEC.117. [42 U.S.C.12529] LIMITATIONS ON USES OF FUNDS. 

Not more than 6 percent of the amount of assistance received 

by a State, territory, or Indian tribe that is the original recipient 

of an allotment under this part for a fiscal year may be used to 

pay, in accordance with such standards as the Corporation may 

issue, for administrative costs, incurred by that recipient. 

PART II-HIGHER EDUCATION INNOVATIVE 

PROGRAMS FOR COMMUNITY SERVICE 

SEC. 118. [42 U.S.C. 12561] HIGHER EDUCATION INNOVATIVE PROGRAMS FOR COMMUNITY SERVICE. 

(a) Plrn.POSE.-lt is the purpose of this part to expand participation in community service by supporting innovative community 

service programs through service-learning carried out through institutions of higher education, acting as civic institutions to meet 

the human, educational, environmental, or public safety needs of 

neighboring communities. 

(b) GENERAL AUTHORITY.-The Corporation, in consultation 

with the Secretary of Education, is authorized to make grants to, 

and enter into contracts with, institutions of higher education (including a consortium of such institutions), and partnerships comprised of such institutions and of other public or private nonprofit 

organizations, to pay for the Federal share of the cost of- ( 1) enabling such an institution or partnership to create or 

expand an organized community service program that- (A) engenders a sense of social responsibility and commitment to the community in which the institution is located; 

(B) provides projects for participants, who shall be students, faculty, administration, or staff of the institution, or 

residents of the community; and 

(C) the institution or partnership may coordinate with 

service-learning curricula being offered in the academic 

curricula at the institution of higher education or at 1 or 

more members of the partnership; 

(2) supporting student-initiated and student-designed community service projects through the program; 

(3) strengthening the leadership and instructional capacity 

of institutions of higher education and their faculty, with respect to service-learning, by- (A) including service-learning as a key component of 

the preservice teacher curricula of the institution to 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 118 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 22 

strengthen the instructional capacity of teachers to provide 

service-learning at the elementary and secondary levels; 

(B) including service-learning as a component of other 

curricula or academic programs (other than education curricula or programs), such as curricula or programs relating 

to nursing, medicine, criminal justice, or public policy; and 

(C) encouraging the faculty of the institution to use 

service-learning methods throughout their curriculum; 

( 4) facilitating the integration of community service carried 

out under the program into academic curricula, including integration of clinical programs into the curriculum for students in 

professional schools, so that students can obtain credit for their 

community service projects; 

(5) supplementing the funds available to carry out workstudy programs under part C of title IV of the Higher Education Act of 1965 (42 U.S.C. 2751 et seq.) to support servicelearning and community service through the community service program; 

(6) strengthening the service infrastructure within institutions of higher education in the United States through the program; and 

(7) providing for the training of teachers, prospective 

teachers, related education personnel, and community leaders 

in the skills necessary to develop, supervise, and organize service-learning. 

(c) FEDERAL, STATE, AND LOCAL CONTRJBUTIONS.­

(1) FEDERAL SHARE.- (A) IN GENERAL.-The Federal share of the cost of carrying out a program for which assistance is provided under 

this part may not exceed 50 percent of the total cost of the 

program. 

(B) NON-FEDERAL CONTRIBUTION.-ln providing for the 

remaining share of the cost of carrying out such a program, each recipient of a grant or contract under this 

part- (i) shall provide for such share through a payment 

in cash or in kind, fairly evaluated, including facilities, 

equipment, or services; and 

(ii) may provide for such share through State 

sources or local sources, including private funds or donated services. 

(2) WAIVER.-The Chief Executive Officer may waive the 

requirements of paragraph (1) in whole or in part with respect 

to any such program for any fiscal year if the Corporation determines that such a waiver would be equitable due to a lack 

of available financial resources at the local level. 

(d) APPLICATION FOR GRANT.- (1) SUBMISSION.-To receive a grant or enter into a contract under this part, an institution or partnership shall prepare and submit to the Corporation, an application at such 

time, in such manner, and containing such information and assurances as the Corporation may reasonably require, and obtain approval of the application. In requesting applications for 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

23 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 118 

assistance under this part, the Corporation shall specify such 

required information and assurances. 

(2) CONTENTS.-An application submitted under paragraph 

(1) shall contain, at a minimum- (A) assurances that- (i) prior to the placement of a participant, the applicant will consult with the appropriate local labor organization, if any, representing employees in the area 

who are engaged in the same or similar work as that 

proposed to be carried out by such program, to prevent 

the displacement and protect the rights of such employees; and 

(ii) the applicant will comply with the nonduplication and nondisplacement provisions of section 177 

and the notice, hearing, and grievance procedures required by section 176; and 

(B) such other assurances as the Chief Executive Officer may reasonably require. 

(e) SPECIAL CONSIDERATION.-To the extent practicable, in 

making grants and entering into contracts under subsection (b), the 

Corporation shall give special consideration to applications submitted by, or applications from partnerships including, institutions 

serving primarily low-income populations, including- (1) Alaska Native-serving institutions; 

(2) Asian American and Native American Pacific Islanderserving institutions; 

(3) Hispanic-serving institutions; 

( 4) historically black colleges and universities; 

(5) Native American-serving, nontribal institutions; 

(6) Native Hawaiian-serving institutions; 

(7) Predominantly Black Institutions; 

(8) tribally controlled colleges and universities; and 

(9) community colleges serving predominantly minority 

populations. 

(f) CONSIDERATIONS.-In making grants and entering into contracts under subsection (b), the Corporation shall take into consideration whether the applicants submit applications containing proposals that- ( 1) demonstrate the commitment of the institution of higher education involved, other than by demonstrating the commitment of the students, to supporting the community service 

projects carried out under the program; 

(2) specify the manner in which the institution will promote faculty, administration, and staff participation in the 

community service projects; 

(3) specify the manner in which the institution will provide 

service to the community through organized programs, including, where appropriate, clinical programs for students in professional schools and colleges; 

(4) describe any partnership that will participate in the 

community service projects, such as a partnership comprised 

of- (A) the institution; 

(B)(i) a community-based agency; 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 118A NATIONAL AND COMMUNITY SERVICE ACT OF 1990 24 

(ii) a local government agency; or 

(iii) a nonprofit entity that serves or involves schoolage youth, older adults, or low-income communities; and 

(C)(i) a student organization; 

(ii) a department of the institution; or 

(iii) a group of faculty comprised of different departments, schools, or colleges at the institution; 

(5) demonstrate community involvement in the development of the proposal and the extent to which the proposal will 

contribute to the goals of the involved community members; 

(6) demonstrate a commitment to perform community service projects in underserved urban and rural communities; 

(7) describe research on effective strategies and methods to 

improve service utilized in the design of the projects; 

(8) specify that the institution or partnership will use the 

assistance provided through the grant or contract to strengthen the service infrastructure in institutions of higher education; 

(9) with respect to projects involving delivery of services, 

specify projects that involve leadership development of schoolage youth; or 

(10) describe the needs that the proposed projects are designed to address, such as housing, economic development, infrastructure, health care, job training, education, crime prevention, urban planning, transportation, information technology, 

or child welfare. 

(g) FEDERAL WoRK-STUDY.-To be eligible for assistance under 

this part, an institution of higher education shall demonstrate that 

it meets the minimum requirements under section 443(b)(2)(A) of 

the Higher Education Act of 1965 (42 U.S.C. 2753(b)(2)(A)) relating 

to the participation of students employed under part C of title IV 

of the Higher Education Act of 1965 (42 U.S.C. 2751 et seq.) (relating to Federal Work-Study programs) in community service activities, or has received a waiver of those requirements from the Secretary of Education. 

(h) DEFINITION.-Notwithstanding section 101, as used in this 

part, the term "student" means an individual who is enrolled in an 

institution of higher education on a full- or part-time basis. 

(i) NATIONAL SERVICE EDUCATIONAL AWARD.-A participant in 

a program funded under this part shall be eligible for the national 

service educational award described in subtitle D, if the participant 

served in an approved national service position. 

SEC. 118A. [42 U.S.C.12561a] CAMPUSES OF SERVICE. 

(a) IN GENERAL.-The Corporation, after consultation with the 

Secretary of Education, may annually designate not more than 25 

institutions of higher education as Campuses of Service, from 

among institutions nominated by State Commissions. 

(b) APPLICATIONS FOR NOMINATION.- (1) IN GENERAL.-To be eligible for a nomination to receive 

designation under subsection (a), and have an opportunity to 

apply for funds under subsection (d) for a fiscal year, an institution of higher education in a State shall submit an application to the State Commission at such time, in such manner, 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

25 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 118A 

and containing such information as the State Commission may 

require. 

(2) CONTENTS.-At a minimum, the application shall include information specifying- (A)(i) the number of undergraduate and, if applicable, 

graduate service-learning courses offered at such institution for the most recent full academic year preceding the 

fiscal year for which designation is sought; and 

(ii) the number and percentage of undergraduate students and, if applicable, the number and percentage of 

graduate students at such institution who were enrolled in 

the corresponding courses described in clause (i), for such 

preceding academic year; 

(B) the percentage of undergraduate students engaging in and, if applicable, the percentage of graduate students engaging in activities providing community services, 

as defined in section 441(c) of the Higher Education Act of 

1965 (42 U.S.C. 2751(c)), during such preceding academic 

year, the quality of such activities, and the average 

amount of time spent, per student, engaged in such activities; 

(C) for such preceding academic year, the percentage 

of Federal work-study funds made available to the institution under part C of title IV of the Higher Education Act 

of 1965 (42 U.S.C. 2751 et seq.) that is used to compensate 

students employed in providing community services, as so 

defined, and a description of the efforts the institution undertakes to make available to students opportunities to 

provide such community services and be compensated 

through such work-study funds; 

(D) at the discretion of the institution, information 

demonstrating the degree to which recent graduates of the 

institution, and all graduates of the institution, have obtained full-time public service employment in the nonprofit 

sector or government, with a private nonprofit organization or a Federal, State, or local public agency; and 

(E) any programs the institution has in place to encourage or assist graduates of the institution to pursue careers in public service in the nonprofit sector or government. 

(c) NOMINATIONS AND DESIGNATION.­

(1) NOMINATION.- (A) IN GENERAL.-A State Commission that receives 

applications from institutions of higher education under 

subsection (b) may nominate, for designation under subsection (a), not more than 3 such institutions of higher 

education, consisting of- (i) not more than one 4-year public institution of 

higher education; 

(ii) not more than one 4-year private institution of 

higher education; and 

(iii) not more than one 2-year institution of higher 

education. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 119 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 26 

(B) SUBMISSION.-The State Commission shall submit 

to the Corporation the name and application of each institution nominated by the State Commission under subparagraph (A). 

(2) DESIGNATION.-The Corporation shall designate, under 

subsection (a), not more than 25 institutions of higher education from among the institutions nominated under paragraph 

(1). In making the designations, the Corporation shall, if feasible, designate various types of institutions, including institutions from each of the categories of institutions described in 

clauses (i), (ii), and (iii) of paragraph (l)(A). 

(d) AWARDS.-

(1) IN GENERAL.-Using sums reserved under section 

501(a)(l)(C) for Campuses of Service, the Corporation shall 

provide an award of funds to institutions designated under 

subsection (c), to be used by the institutions to develop or disseminate service-learning models and information on best practices regarding service-learning to other institutions of higher 

education. 

(2) PLAN.-To be eligible to receive funds under this subsection, an institution designated under subsection (c) shall 

submit a plan to the Corporation describing how the institution 

intends to use the funds to develop or disseminate servicelearning models and information on best practices regarding 

service-learning to other institutions of higher education. 

(3) ALLOCATION.-The Corporation shall determine how 

the funds reserved under section 501(a)(l)(C) for Campuses of 

Service for a fiscal year will be allocated among the institutions submitting acceptable plans under paragraph (2). In determining the amount of funds to be allocated to such an institution, the Corporation shall consider the number of students 

at the institution, the quality and scope of the plan submitted 

by the institution under paragraph (2), and the institution's 

current (as of the date of submission of the plan) strategies to 

encourage or assist students to pursue public service careers in 

the nonprofit sector or government. 

PART III-INNOVATIVE AND COMMUNITYBASED SERVICE-LEARNING PROGRAMS AND 

RESEARCH 

SEC. 119. [42 U.S.C. 12563] INNOVATIVE AND COMMUNITY-BASED SERVICE-LEARNING PROGRAMS AND RESEARCH. 

(a) DEFINITIONS.-ln this part: 

(1) ELIGIBLE ENTITY.-The term "eligible entity" means a 

State educational agency, a State Commission, a territory, an 

Indian tribe, an institution of higher education, or a public or 

private nonprofit organization (including community-based entities), a public or private elementary school or secondary 

school, a local educational agency, a consortium of such entities, or a consortium of 2 or more such entities and a for-profit 

organization. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

27 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 119 

(2) ELIGIBLE PARTNERSHIP.-The term "eligible partnership" means a partnership that- (A) shall include- (i) 1 or more community-based entities that have 

demonstrated records of success in carrying out service-learning programs with economically disadvantaged students, and that meet such criteria as the 

Chief Executive Officer may establish; and 

(ii) a local educational agency for which- (1) a high number or percentage, as determined by the Corporation, of the students served 

by the agency are economically disadvantaged students; and 

(II) the graduation rate (as defined in section 

llll(b)(2)(C)(vi) of the Elementary and Secondary 

Education Act of 1965 (20 U.S.C. 6311(b)(2)(C)(vi)) 

and as clarified in applicable regulations promulgated by the Department of Education for the secondary school students served by the agency is 

less than 70 percent; and 

(B) may also include- (i) a local government agency that is not described 

in subparagraph (A); 

(ii) the office of the chief executive officer of a unit 

of general local government; 

(iii) an institution of higher education; 

(iv) a State Commission or State educational 

agency;or 

(v) more than 1 local educational agency described 

in subclause (I). 

(3) YOUTH ENGAGEMENT ZONE.-The term "youth engagement zone" means the area in which a youth engagement zone 

program is carried out. 

(4) YOUTH ENGAGEMENT ZONE PROGRAM.-The term "youth 

engagement zone program" means a service-learning program 

in which members of an eligible partnership collaborate to provide coordinated school-based or community-based servicelearning opportunities- (A) in order to address a specific community challenge; 

(B) for an increasing percentage of out-of-school youth 

and secondary school students served by a local educational agency; and 

(C) in circumstances under which- (i) not less than 90 percent of such students participate in service-learning activities as part of the 

program; or 

(ii) service-learning is a part of the curriculum in 

all of the secondary schools served by the local educational agency. 

(b) GENERAL AUTHORITY.-From the amounts appropriated to 

carry out this part for a fiscal year, the Corporation may make 

grants (which may include approved summer of service positions in 

the case of a grant for a program described in subsection (c)(8)) and 

fixed-amount grants (in accordance with section 129(1)) to eligible 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 119 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 28 

entities or eligible partnerships, as appropriate, for programs and 

activities described in subsection (c). 

(c) AUTHORIZED ACTIVITIES.-Funds under this part may be 

used to--

(1) integrate service-learning programs into the science, 

technology, engineering, and mathematics (referred to in this 

part as "STEM") curricula at the elementary, secondary, postsecondary, or postbaccalaureate levels in coordination with 

practicing or retired STEM professionals; 

(2) involve students in service-learning programs focusing 

on energy conservation in their community, including conducting educational outreach on energy conservation and working to improve energy efficiency in low-income housing and in 

public spaces; 

(3) involve students in service-learning programs in emergency and disaster preparedness; 

(4) involve students in service-learning programs aimed at 

improving access to and obtaining the benefits from computers 

and other emerging technologies, including improving such access for individuals with disabilities, in low-income or rural 

communities, in senior centers and communities, in schools, in 

libraries, and in other public spaces; 

(5) involve high school age youth in the mentoring of middle school youth while involving all participants in servicelearning to seek to meet unmet human, educational, environmental, public safety, or emergency and disaster preparedness 

needs in their community; 

(6) conduct research and evaluations on service-learning, 

including service-learning in middle schools, and disseminate 

such research and evaluations widely; 

(7) conduct innovative and creative activities as described 

in section 112(a); 

(8) establish or implement summer of service programs 

(giving priority to programs that enroll youth who will be enrolled in any of grades 6 through 9 at the end of the summer 

concerned) during the summer months (including recruiting, 

training, and placing service-learning coordinators)- (A) for youth who will be enrolled in any of grades 6 

through 12 at the end of the summer concerned; and 

(B) for community-based service-learning projects- (i) that shall- (1) meet unmet human, educational, environmental (including energy conservation and stewardship), and emergency and disaster preparedness and other public safety needs; and 

(II) be intensive, structured, supervised, and 

designed to produce identifiable improvements to 

the community; 

(ii) that may include the extension of academic 

year service-learning programs into the summer 

months; and 

(iii) under which a student who completes 100 

hours of service as described in section 146(b)(2), shall 

be eligible for a summer of service educational award 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

29 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 119 

of $500 or $750 as described in sections 146(a)(2)(C) 

and 147(d); 

(9) establish or implement youth engagement zone programs in youth engagement zones, for students in secondary 

schools served by local educational agencies for which a majority of such students do not participate in service-learning activities that are--- (A) carried out by eligible partnerships; and 

(B) designed to-- (i) involve all students in secondary schools served 

by the local educational agency in service-learning to 

address a specific community challenge; 

(ii) improve student engagement, including student attendance and student behavior, and student 

achievement, graduation rates, and college-going rates 

at secondary schools; and 

(iii) involve an increasing percentage of students 

in secondary school and out-of-school youth in the 

community in school-based or community-based service-learning activities each year, with the goal of involving all students in secondary schools served by the 

local educational agency and involving an increasing 

percentage of the out-of-school youth in service-learning activities; and 

(10) conduct semester of service programs that-- (A) provide opportunities for secondary school students 

to participate in a semester of coordinated school-based or 

community-based service-learning opportunities for a minimum of 70 hours (of which at least a third will be spent 

participating in field-based activities) over a semester, to 

address specific community challenges; 

(B) engage as participants high percentages or numbers of economically disadvantaged students; 

(C) allow participants to receive academic credit, for 

the time spent in the classroom and in the field for the 

program, that is equivalent to the academic credit for any 

class of equivalent length and with an equivalent time 

commitment; and 

(D) ensure that the classroom-based instruction component of the program is integrated into the academic program of the local educational agency involved; and 

(11) carry out any other innovative service-learning programs or research that the Corporation considers appropriate. 

(d) APPLICATIONS.-To be eligible to receive a grant to carry 

out a program or activity under this part, an entity or partnership, 

as appropriate, shall prepare and submit to the Corporation an application at such time and in such manner as the Chief Executive 

Officer may reasonably require, and obtain approval of the application. 

(e) PRIORITY.-ln making grants under this part, the Corporation shall give priority to applicants proposing to-- ( 1) involve students and community stakeholders in the 

design and implementation of service-learning programs carried out using funds received under this part; 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 120 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 30 

(2) implement service-learning programs in low-income or 

rural communities; and 

(3) utilize adult volunteers, including tapping the resources of retired and retiring adults, in the planning and implementation of service-learning programs. 

(f) R.EQUIREMENTS.- (1) TERM.-Each program or activity funded under this 

part shall be carried out over a period of 3 years, which may 

include 1 planning year. In the case of a program funded under 

this part, the 3-year period may be extended by 1 year, if the 

program meets performance levels established in accordance 

with section 179(k) and any other criteria determined by the 

Corporation. 

(2) COLLABORATION ENCOURAGED.-Each entity carrying 

out a program or activity funded under this part shall, to the 

extent practicable, collaborate with entities carrying out programs under this subtitle, subtitle C, and titles I and II of the 

Domestic Volunteer Service Act of 1973 (42 U.S.C. 4951 et seq., 

5001 et seq.). 

(3) EVALUATION.-Not later than 4 years after the effective 

date of the Serve America Act, the Corporation shall conduct 

an independent evaluation of the programs and activities carried out using funds made available under this part, and determine best practices relating to service-learning and recommendations for improvement of those programs and activities. The Corporation shall widely disseminate the results of 

the evaluations, and information on the best practices and recommendations to the service community through multiple 

channels, including the Corporation's Resource Center or a 

clearinghouse of effective strategies. 

PART IV-SERVICE-LEARNING IMPACT STUDY 

SEC.120. [42 U.S.C.12565] STUDY AND REPORT. 

(a) STUDY.- (1) IN GENERAL.-From the sums reserved under section 

501(a)(l)(B) for this section, the Corporation shall enter into a 

contract with an entity that is not otherwise a recipient of financial assistance under this subtitle, to conduct a 10-year longitudinal study on the impact of the activities carried out 

under this subtitle. 

(2) CONTENTS.-ln conducting the study, the entity shall 

consider the impact of service-learning activities carried out 

under this subtitle on students participating in such activities, 

including in particular examining the degree to which the activities-

(A) improved student academic achievement; 

(B) improved student engagement; 

(C) improved graduation rates, as defined in section 

llll(b)(2)(C)(vi) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311(b)(2)(C)(vi)) and as 

clarified in applicable regulations promulgated by the Department of Education; and 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

31 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 121 

(D) improved the degree to which the participants in 

the activities engaged in subsequent national service, volunteering, or other service activities, or pursued careers in 

public service, in the nonprofit sector or government. 

(3) ANALYSIS.-ln carrying out such study, the entity shall 

examine the impact of the service-learning activities on the 4 

factors described in subparagraphs (A) through (D) of paragraph (2), analyzed in terms of how much time participants 

were engaged in service-learning activities. 

(4) BEST PRACTICES.-The entity shall collect information 

on best practices concerning using service-learning activities to 

improve the 4 factors. 

(b) INTERIM REPORTS.-The entity shall periodically submit reports to the Corporation containing the interim results of the study 

and the information on best practices. The Corporation shall submit such reports to the authorizing committees. 

(c) FINAL REPORT.-The entity shall submit a report to the 

Corporation containing the results of the study and the information 

on best practices. The Corporation shall submit such report to the 

authorizing committees, and shall make such report available to 

the public on the Corporation's website. 

(d) CONSULTATION AND DISSEMINATION.-On receiving the report described in subsection (c), the Corporation shall consult with 

the Secretary of Education to review the results of the study, and 

to identify best practices concerning using service-learning activities to improve the 4 factors described in subparagraphs (A) 

through (D) of subsection (a)(2). The Corporation shall disseminate 

information on the identified best practices. 

Subtitle C-National Service Trust 

Program 

PART I-INVESTMENT IN NATIONAL SERVICE 

SEC. 121. [42 U.S.C. 12571] AUTHORITY TO PROVIDE ASSISTANCE AND 

APPROVED NATIONAL SERVICE POSITIONS. 

(a) PROVISION OF AsSISTANCE.-Subject to the availability of 

appropriations for this purpose, the Corporation for National and 

Community Service may make grants to States, subdivisions of 

States, territories, Indian tribes, public or private nonprofit organizations, and institutions of higher education for the purpose of assisting the recipients of the grants- (1) to carry out full- or part-time national service programs, including summer programs, described in subsection 

(a), (b), or (c) of section 122; and 

(2) to make grants in support of other national service programs described in subsection (a), (b), or (c) of section 122 that 

are carried out by other entities. 

(b) RESTRICTIONS ON AGREEMENTS WITH FEDERAL AGENCIES.- (1) AGREEMENTS AUTHORIZED.-The Corporation may enter 

into an interagency agreement (other than a grant agreement) 

with another Federal agency to support a national service program carried out or otherwise supported by the agency. The 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 121 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 32 

Corporation, in entering into the interagency agreement may 

approve positions as approved national service positions for a 

program carried out or otherwise supported by the agency. 

(2) PROHIBITION ON GRANTS.-The Corporation may not 

provide a grant under this section to a Federal agency. 

(3) CONSULTATION WITH STATE COMMISSIONS.-A Federal 

agency carrying out or supporting a national service program 

shall consult with the State Commissions for those States in 

which projects will be conducted through that program in order 

to ensure that the projects do not duplicate projects conducted 

by State or local national service programs. 

( 4) SUPPORT FOR OTHER NATIONAL SERVICE PROGRAMS.-A 

Federal agency that enters into an interagency agreement 

under paragraph (1) shall, in an appropriate case, enter into 

a contract or cooperative agreement with an entity that is carrying out a national service program in a State that is in existence in the State as of the date of the contract or cooperative 

agreement and is of high quality, in order to support the national service program. 

(5) APPLICATION OF REQUIREMENTS.-A requirement under 

this Act that applies to an entity receiving assistance under 

section 121 (other than a requirement limited to an entity receiving assistance under section 121(a)) shall be considered to 

apply to a Federal agency that enters into an interagency 

agreement under this subsection, even though no Federal 

agency may receive financial assistance under such an agreement. 

(c) PROVISION OF APPROVED NATIONAL SERVICE POSITIONS.-As 

part of the provision of assistance under subsection (a), and in providing approved national service positions under subsection (b), the 

Corporation shall- ( 1) approve the provision of national service educational 

awards described in subtitle D for the participants who serve 

in national service programs carried out using such assistance; 

and 

(2) deposit in the National Service Trust established in 

section 145(a) an amount equal to the product of- (A) the value of a national service educational award 

under section 14 7; and 

(B) the total number of approved national service positions to be provided or otherwise approved. 

(d) FIVE PERCENT LIMITATION ON ADMINISTRATIVE COSTS.- (1) LIMITATION.-Not more than 5 percent of the amount 

of assistance provided to the original recipient of a grant or 

transfer of assistance under subsection (a) for a fiscal year may 

be used to pay for administrative costs incurred by- (A) the recipient of the assistance; and 

(B) national service programs carried out or supported 

with the assistance. 

(2) RULES ON USE.-The Corporation may by rule prescribe 

the manner and extent to which- (A) assistance provided under subsection (a) may be 

used to cover administrative costs; and 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

33 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 121 

(B) that portion of the assistance available to cover administrative costs should be distributed between- (i) the original recipient of the grant or transfer of 

assistance under such subsection; and 

(ii) national service programs carried out or supported with the assistance. 

(e) MATCHING FUNDS REQUIREMENTS.- (!) REQUIREMENTS.-Except as provided in section 140, the 

Corporation share of the cost (including the costs of member 

living allowances, employment-related taxes, health care coverage, and workers' compensation and other necessary operation costs) of carrying out a national service program that receives the assistance under subsection (a), whether the assistance is provided directly or as a subgrant from the original recipient of the assistance, may not exceed 75 percent of such 

cost. 

(2) CALCULATION.-ln providing for the remaining share of 

the cost of carrying out a national service program, the program-

(A) shall provide for such share through a payment in 

cash or in kind, fairly evaluated, including facilities, equipment, or services; and 

(B) may provide for such share through State sources, 

local sources, or other Federal sources (other than the use 

of funds made available under the national service laws). 

(3) COST OF HEALTH CARE.-ln providing a payment in 

cash under paragraph (2)(A) as part of providing for the remaining share of the cost of carrying out a national service 

program, the program may count not more than 85 percent of 

the cost of providing a health care policy described in section 

140(d)(2) toward such share. 

(4) WAIVER.-The Corporation may waive in whole or in 

part the requirements of paragraph (1) with respect to a national service program in any fiscal year if the Corporation determines that such a waiver would be equitable due to a lack 

of available financial resources at the local level. 

(5) OTHER FEDERAL FUNDS.- (A) RECIPIENT REPORT.-A recipient of assistance 

under this section (other than a recipient of assistance 

through a fixed-amount grant in accordance with section 

129(1)) shall report to the Corporation the amount and 

source of any Federal funds used to carry out the program 

for which the assistance is made available other than 

those provided by the Corporation. 

(B) CORPORATION REPORT.-The Corporation shall report to the authorizing committees on an annual basis information regarding each recipient of such assistance that 

uses Federal funds other than those provided by the Corporation to carry out such a program, including the 

amounts and sources of the other Federal funds. 

(f) PLAN FOR APPROVED NATIONAL SERVICE POSITIONS.-The 

Corporation shall- ( 1) develop a plan toMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 122 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 34 

(A) establish the number of the approved national 

service positions as 88,000 for fiscal year 2010; 

(B) increase the number of the approved positions to­

(i) 115,000 for fiscal year 2011; 

(ii) 140,000 for fiscal year 2012; 

(iii) 170,000 for fiscal year 2013; 

(iv) 200,000 for fiscal year 2014; 

(v) 210,000 for fiscal year 2015; 

(vi) 235,000 for fiscal year 2016; and 

(vii) 250,000 for fiscal year 2017; 

(C) ensure that the increases described in subparagraph (B) are achieved through an appropriate balance of 

full- and part-time service positions; 

(2) not later than 1 year after the date of enactment of the 

Serve America Act, submit a report to the authorizing committees on the status of the plan described in paragraph (1); and 

(3) subject to the availability of appropriations and quality 

service opportunities, implement the plan described in paragraph (1). 

SEC. 122. [42 U.S.C. 12572] NATIONAL SERVICE PROGRAMS ELIGIBLE 

FOR PROGRAM ASSISTANCE. 

(a) NATIONAL SERVICE CORPS.-The recipient of a grant under 

section 121(a) and a Federal agency operating or supporting a national service program under section 121(b) shall use a portion of 

the financial assistance or positions involved, directly or through 

subgrants to other entities, to support or carry out the following 

national service corps or programs, as full- or part-time corps or 

programs, to address unmet needs: 

(1) EDUCATION CORPS.- (A) IN GENERAL.-The recipient may carry out national 

service programs through an Education Corps that identifies and meets unmet educational needs within communities through activities such as those described in subparagraph (B) and improves performance on the indicators 

described in subparagraph (C). 

(B) ACTIVITIES.-An Education Corps described in this 

paragraph may carry out activities such as- (i) tutoring, or providing other academic support 

to elementary school and secondary school students; 

(ii) improving school climate; 

(iii) mentoring students, including adult or peer 

mentoring; 

(iv) linking needed integrated services and comprehensive supports with students, their families, and 

their public schools; 

( v) providing assistance to a school in expanding 

the school day by strengthening the quality of staff 

and expanding the academic programming offered in 

an expanded learning time initiative, a program of a 

21st century community learning center (as defined in 

section 4201 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7171)), or a high-quality 

after-school program; 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

35 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 122 

(vi) assisting schools and local educational agencies in improving and expanding high-quality servicelearning programs that keep students engaged in 

schools by carrying out programs that provide specialized training to individuals in service-learning, and 

place the individuals (after such training) in positions 

as service-learning coordinators, to facilitate servicelearning in programs eligible for funding under part I 

of subtitle B; 

(vii) assisting students in being prepared for college-level work; 

(viii) involving family members of students in supporting teachers and students; 

(ix) conducting a preprofessional training program 

in which students enrolled in an institution of higher 

education-

(!) receive training (which may include classes 

containing service-learning) in specified fields including early childhood education and care, elementary and secondary education, and other fields 

such as those relating to health services, criminal 

justice, environmental stewardship and conservation, or public safety; 

(II) perform service related to such training 

outside the classroom during the school term and 

during summer or other vacation periods; and 

(Ill) agree to provide service upon graduation 

to meet unmet human, educational, environmental, or public safety needs related to such 

training; 

(x) assisting economically disadvantaged students 

in navigating the college admissions process; 

(xi) providing other activities, addressing unmet 

educational needs, that the Corporation may designate; or 

(xii) providing skilled musicians and artists to promote greater community unity through the use of 

music and arts education and engagement through 

work in low-income communities, and education, 

health care, and therapeutic settings, and other work 

in the public domain with citizens of all ages. 

(C) EDUCATION CORPS INDICATORS.-The indicators for 

a corps program described in this paragraph are- (i) student engagement, including student attendance and student behavior; 

(ii) student academic achievement; 

(iii) secondary school graduation rates as defined 

in section llll(b)(2)(C)(vi) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 

6311(b)(2)(C)(vi)) and as clarified in applicable regulations promulgated by the Department of Education; 

(iv) rate of college enrollment and continued college enrollment for recipients of a high school diploma; 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 122 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 36 

(v) any additional indicator relating to improving 

education for students that the Corporation, in consultation (as appropriate) with the Secretary of Education, establishes; or 

(vi) any additional local indicator (applicable to a 

particular recipient and on which an improvement in 

performance is needed) relating to improving education for students, that is approved by the Corporation or a State Commission. 

(2) HEALTHY FUTURES CORPS.- (A) IN GENERAL.-The recipient may carry out national 

service programs through a Healthy Futures Corps that 

identifies and meets unmet health needs within communities through activities such as those described in subparagraph (B) and improves performance on the indicators 

described in subparagraph (C). 

(B) ACTMTIES.-A Healthy Futures Corps described in 

this paragraph may carry out activities such as- (i) assisting economically disadvantaged individuals in navigating the health services system; 

(ii) assisting individuals in obtaining access to 

health services, including oral health services, for 

themselves or their children; 

(iii) educating economically disadvantaged individuals and individuals who are members of medically 

underserved populations about, and engaging individuals described in this clause in, initiatives regarding 

navigating the health services system and regarding 

disease prevention and health promotion, with a particular focus on common health conditions, chronic diseases, and conditions, for which disease prevention 

and health promotion measures exist and for which socioeconomic, geographic, and racial and ethnic health 

disparities exist; 

(iv) improving the literacy of patients regarding 

health, including oral health; 

(v) providing translation services at clinics and in 

emergency rooms to improve health services; 

(vi) providing services designed to meet the health 

needs of rural communities, including the recruitment 

of youth to work in health professions in such communities; 

(vii) assisting in health promotion interventions 

that improve health status, and helping people adopt 

and maintain healthy lifestyles and habits to improve 

health status; 

(viii) addressing childhood obesity through inschool and after-school physical activities, and providing nutrition education to students, in elementary 

schools and secondary schools; or 

(ix) providing activities, addressing unmet health 

needs, that the Corporation may designate. 

(C) HEALTHY FUTURES CORPS INDICATORS.-The indicators for a corps program described in this paragraph areMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

37 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 122 

(i) access to health services among economically 

disadvantaged individuals and individuals who are 

members of medically underserved populations; 

(ii) access to health services for uninsured individuals, including such individuals who are economically 

disadvantaged children; 

(iii) participation, among economically disadvantaged individuals and individuals who are members of 

medically underserved populations, in disease prevention and health promotion initiatives, particularly 

those with a focus on addressing common health conditions, addressing chronic diseases, and decreasing 

health disparities; 

(iv) literacy of patients regarding health; 

(v) any additional indicator, relating to improving 

or protecting the health of economically disadvantaged 

individuals and individuals who are members of medically underserved populations, that the Corporation, in 

consultation (as appropriate) with the Secretary of 

Health and Human Services and the Director of the 

Centers for Disease Control and Prevention, establishes; or 

(vi) any additional local indicator (applicable to a 

particular recipient and on which an improvement in 

performance is needed) relating to improving or protecting the health of economically disadvantaged individuals and individuals who are members of medically 

underserved populations, that is approved by the Corporation or a State Commission. 

(3) CLEAN ENERGY SERVICE CORPS.- (A) IN GENERAL.-The recipient may carry out national 

service projects through a Clean Energy Service Corps that 

identifies and meets unmet environmental needs within 

communities through activities such as those described in 

subparagraph (B) and improves performance on the indicators described in subparagraph (C). 

(B) ACTIVITIES.-A Clean Energy Service Corps described in this paragraph may carry out activities such 

as- (i) weatherizing and retrofitting housing units for 

low-income households to significantly improve the energy efficiency and reduce carbon emissions of such 

housing units; 

(ii) building energy-efficient housing units in lowincome communities; 

(iii) conducting energy audits for low-income 

households and recommending ways for the households to improve energy efficiency; 

(iv) providing clean energy-related services designed to meet the needs of rural communities; 

(v) working with schools and youth programs to 

educate students and youth about ways to reduce 

home energy use and improve the environment, inMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 122 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 38 

eluding conducting service-learning projects to provide 

such education; 

(vi) assisting in the development of local recycling 

programs; 

(vii) renewing and rehabilitating national and 

State parks and forests, city parks, county parks and 

other public lands, and trails owned or maintained by 

the Federal Government or a State, including planting 

trees, carrying out reforestation, carrying out forest 

health restoration measures, carrying out erosion control measures, fire hazard reduction measures, and rehabilitation and maintenance of historic sites and 

structures throughout the national park system, and 

providing trail enhancements, rehabilitation, and repairs; 

(viii) cleaning and improving rivers maintained by 

the Federal Government or a State; 

(ix) carrying out projects in partnership with the 

National Park Service, designed to renew and rehabilitate national park resources and enhance services and 

learning opportunities for national park visitors, and 

nearby communities and schools; 

(x) providing service through a full-time, yearround youth corps program or full-time summer youth 

corps program, such as a conservation corps or youth 

service corps program that- (1) undertakes meaningful service projects 

with visible public benefits, including projects involving urban renewal, sustaining natural resources, or improving human services; 

(II) includes as participants youths and young 

adults who are age 16 through 25, including outof-school youth and other disadvantaged youth 

(such as youth who are aging out of foster care, 

youth who have limited English proficiency, homeless youth, and youth who are individuals with 

disabilities), who are age 16 through 25; and 

(III) provides those participants who are 

youth and young adults with- (aa) team-based, highly structured, and 

adult-supervised work experience, life skills, 

education, career guidance and counseling, 

employment training, and support services including mentoring; and 

(bb) the opportunity to develop citizenship 

values and skills through service to their community and the United States; 

(xi) carrying out other activities, addressing 

unmet environmental and workforce needs, that the 

Corporation may designate. 

(C) CLEAN ENERGY SERVICE CORPS INDICATORS.-The 

indicators for a corps program described in this paragraph 

areMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

39 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 122 

(i) the number of housing units of low-income 

households weatherized or retrofitted to significantly 

improve energy efficiency and reduce carbon emissions; 

(ii) annual energy costs (to determine savings in 

those costs) at facilities where participants have provided service; 

(iii) the number of students and youth receiving 

education or training in energy-efficient and environmentally conscious practices; 

(iv)(I) the number of acres of national parks, State 

parks, city parks, county parks, or other public lands, 

that are cleaned or improved; and 

(II) the number of acres of forest preserves, or 

miles of trails or rivers, owned or maintained by the 

Federal Government or a State, that are cleaned or 

improved; 

(v) any additional indicator relating to clean energy, the reduction of greenhouse gas emissions, or 

education and skill attainment for clean energy jobs, 

that the Corporation, in consultation (as appropriate) 

with the Administrator of the Environmental Protection Agency, the Secretary of Energy, the Secretary of 

the Interior, or the Secretary of Labor, as appropriate, 

establishes; or 

(vi) any additional local indicator (applicable to a 

particular recipient and on which an improvement in 

performance is needed) relating to clean energy, the 

reduction of greenhouse gas emissions, or education or 

skill attainment for clean energy jobs, that is approved 

by the Corporation or a State Commission. 

( 4) VETERANS CORPS.- (A) IN GENERAL.-The recipient may carry out national 

service programs through a Veterans Corps that identifies 

and meets unmet needs of veterans and members of the 

Armed Forces who are on active duty through activities 

such as those described in subparagraph (B) and improves 

performance on the indicators described in subparagraph 

(C). 

(B) ACTIVITIES.-A Veterans Corps described in this 

paragraph may carry out activities such as- (i) promoting community-based efforts to meet the 

unique needs of military families while a family member is deployed and upon that family member's return 

home; 

(ii) recruiting veterans, particularly returning veterans, into service opportunities, including opportunities that utilize their military experience; 

(iii) assisting veterans in developing their educational opportunities (including opportunities for professional certification, licensure, or credentials), coordinating activities with and assisting State and local 

agencies administering veterans education benefits, 

and coordinating activities with and assisting entities 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 122 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 40 

administering veterans programs with internships and 

fellowships that could lead to employment in the private and public sectors; 

(iv) promoting efforts within a community to serve 

the needs of veterans and members of the Armed 

Forces who are on active duty, including helping veterans file benefits claims and assisting Federal agencies in providing services to veterans, and sending 

care packages to Members of the Armed Forces who 

are deployed; 

(v) assisting veterans in developing mentoring relationships with economically disadvantaged students; 

(vi) developing projects to assist veterans with disabilities, veterans who are unemployed, older veterans, and veterans in rural communities, including 

assisting veterans described in this clause with transportation; or 

(vii) other activities, addressing unmet needs of 

veterans, that the Corporation may designate. 

(C) VETERANS' CORPS INDICATORS.-The indicators for 

a corps program described in this paragraph are- (i) the number of housing units created for veterans; 

(ii) the number of veterans who pursue educational opportunities; 

(iii) the number of veterans receiving professional 

certification, licensure, or credentials; 

(iv) the number of veterans engaged in service opportunities; 

(v) the number of military families assisted by organizations while a family member is deployed and 

upon that family member's return home; 

(vi) the number of economically disadvantaged 

students engaged in mentoring relationships with veterans; 

(vii) the number of projects designed to meet identifiable public needs of veterans, especially veterans 

with disabilities, veterans who are unemployed, older 

veterans, and veterans in rural communities; 

(viii) any additional indicator that relates to education or skill attainment that assists in providing veterans with the skills to address identifiable public 

needs, or that relates to improving the lives of veterans, of members of the Armed Forces on active duty, 

and of families of the veterans and the members on 

active duty, and that the Corporation, in consultation 

(as appropriate) with the Secretary of Veterans Affairs, establishes; or 

(ix) any additional local indicator (applicable to a 

particular recipient and on which an improvement in 

performance is needed) relating to the education or 

skill attainment, or the improvement, described in 

clause (viii), that is approved by the Corporation or a 

State Commission. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

41 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 122 

(5) OPPORTUNITY C0RPS.-

(A) IN GENERAL.-The recipient may carry out national 

service programs through an Opportunity Corps that identifies and meets unmet needs relating to economic opportunity for economically disadvantaged individuals within 

communities, through activities such as those described in 

subparagraph (B) and improves performance on the indicators described in subparagraph (C). 

(B) ACTMTIES.-An Opportunity Corps described in 

this paragraph may carry out activities such as- (i) providing financial literacy education to economically disadvantaged individuals, including financial literacy education with regard to credit management, financial institutions including banks and credit 

unions, and utilization of savings plans; 

(ii) assisting in the construction, rehabilitation, or 

preservation of housing units, including energy efficient homes, for economically disadvantaged individuals; 

(iii) assisting economically disadvantaged individuals, including homeless individuals, in finding placement in and maintaining housing; 

(iv) assisting economically disadvantaged individuals in obtaining access to health services for themselves or their children; 

(v) assisting individuals in obtaining information 

about Federal, State, local, or private programs or 

benefits focused on assisting economically disadvantaged individuals, economically disadvantaged children, or low-income families; 

(vi) facilitating enrollment in and completion of 

job training for economically disadvantaged individuals; 

(vii) assisting economically disadvantaged individuals in obtaining access to job placement assistance; 

(viii) carrying out a program that seeks to eliminate hunger in low-income communities and rural 

areas through service in projects- (!) involving food banks, food pantries, and 

nonprofit organizations that provide food during 

emergencies; 

(II) seeking to address the long-term causes of 

hunger through education and the delivery of appropriate services; 

(Ill) providing training in basic health, nutrition, and life skills necessary to alleviate hunger 

in communities and rural areas; or 

(IV) assisting individuals in obtaining information about federally supported nutrition programs; 

(ix) addressing issues faced by homebound citizens, such as needs for food deliveries, legal and medical services, nutrition information, and transportation; 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 122 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 42 

(x) implementing an E-Corps program that involves participants who provide services in a community by developing and assisting in carrying out technology programs that seek to increase access to technology and the benefits of technology in such community; and 

(xi) carrying out other activities, addressing 

unmet needs relating to economic opportunity for economically disadvantaged individuals, that the Corporation may designate. 

(C) OPPORTUNITY CORPS INDICATORS.-The indicators 

for a corps program described in this paragraph are- (i) the degree of financial literacy among economically disadvantaged individuals; 

(ii) the number of housing units built or improved 

for economically disadvantaged individuals or low-income families; 

(iii) the number of economically disadvantaged individuals with access to job training and other skill 

enhancement; 

(iv) the number of economically disadvantaged individuals with access to information about job placement services; 

(v) any additional indicator relating to improving 

economic opportunity for economically disadvantaged 

individuals that the Corporation, in consultation (as 

appropriate) with the Secretary of Health and Human 

Services, the Secretary of Labor, the Secretary of 

Housing and Urban Development, and the Secretary of 

the Treasury, establishes; or 

(vi) any additional local indicator (applicable to a 

particular recipient and on which an improvement in 

performance is needed) that is approved by the Corporation or a State Commission. 

(b) NATIONAL SERVICE PROGRAMS.- (1) IN GENERAL.-The recipient of a grant under section 

121(a) and a Federal agency operating or supporting a national 

service program under section 121(b) may use the financial assistance or positions involved, directly or through subgrants to 

other entities, to carry out national service programs and 

model programs under this subsection that are focused on 

meeting community needs and improve performance on the indicators described in paragraph (3). 

(2) PROGRAMS.-The programs may include the following 

types of national service programs: 

(A) A community service program designed to meet 

the needs of rural communities, using teams or individual 

placements to address the development needs of rural communities, including addressing rural poverty, or the need 

for health services, education, or job training. 

(B) A program- (i) that engages participants in public health, 

emergency and disaster preparedness, and other public safety activities; 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

43 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 122 

(ii) that may include the recruitment of qualified 

participants for, and placement of the participants in, 

positions to be trainees as law enforcement officers, 

firefighters, search and rescue personnel, and emergency medical service workers; and 

(iii) that may engage Federal, State, and local 

stakeholders, in collaboration, to organize more effective responses to issues of public health, emergencies 

and disasters, and other public safety issues. 

(C) A program that seeks to expand the number of 

mentors for disadvantaged youths and other youths (including by recruiting high school-, and college-age individuals to enter into mentoring relationships), either 

through-

(i) provision of direct mentoring services; 

(ii) provision of supportive services to direct mentoring service organizations (in the case of a partnership); 

(iii) the creative utilization of current and emerging technologies to connect youth with mentors; or 

(iv) supporting mentoring partnerships (including 

statewide and local mentoring partnerships that 

strengthen direct service mentoring programs) by- (1) increasing State resources dedicated to 

mentoring; 

(II) supporting the creation of statewide and 

local mentoring partnerships and programs of national scope through collaborative efforts between 

entities such as local or direct service mentoring 

partnerships, or units of State or local government; and 

(III) assisting direct service mentoring programs. 

(D) A program- (i) in which not less than 75 percent of the participants are disadvantaged youth; 

(ii) that may provide life skills training, employment training, educational counseling, assistance to 

complete a secondary school diploma or its recognized 

equivalent, counseling, or a mentoring relationship 

with an adult volunteer; and 

(iii) for which, in awarding financial assistance 

and approved national service positions, the Corporation shall give priority to programs that engage retirees to serve as mentors. 

(E) A program- (i) that reengages court-involved youth and adults 

with the goal of reducing recidivism; 

(ii) that may create support systems beginning in 

correctional facilities; and 

(iii) that may have life skills training, employment 

training, an education program (including a program 

to complete a secondary school diploma or its recogMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 122 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 44 

nized equivalent), educational and career counseling, 

and postprogram placement services. 

(F) A demonstration program- (i) that has as 1 of its primary purposes the recruitment and acceptance of court-involved youth and 

adults as participants, volunteers, or members; and 

(ii) that may serve any purpose otherwise permitted under this Act. 

(G) A program that provides education or job training 

services that are designed to meet the needs of rural communities. 

(H) A program that seeks to expand the number of 

mentors for youth in foster care through- (i) the provision of direct academic mentoring 

services for youth in foster care; 

(ii) the provision of supportive services to mentoring service organizations that directly provide mentoring to youth in foster care, including providing 

training of mentors in child development, domestic violence, foster care, confidentiality requirements, and 

other matters related to working with youth in foster 

care; or 

(iii) supporting foster care mentoring partnerships, including statewide and local mentoring partnerships that strengthen direct service mentoring programs. 

(I) Such other national service programs addressing 

unmet human, educational, environmental, or public safety 

needs as the Corporation may designate. 

(3) INDICATORS.-The indicators for a program described in 

this subsection are the indicators described in subparagraph 

(C) of paragraphs (1), (2), (3), (4), or (5) of subsection (a) or any 

additional local indicator (applicable to a participant or recipient and on which an improvement in performance is needed) 

relating to meeting unmet community needs, that is approved 

by the Corporation or a State Commission. 

(c) PROGRAM MODELS FOR SERVICE CORPS.- (1) IN GENERAL.-ln addition to any activities described in 

subparagraph (B) of paragraphs (1) through (5) of subsection 

(a), and subsection (b)(2), a recipient of a grant under section 

121(a) and a Federal agency operating or supporting a national 

service program under section 121(b) may directly or through 

grants or subgrants to other entities carry out a national service corps program through the following program models: 

(A) A community corps program that meets unmet 

health, veteran, and other human, educational, environmental, or public safety needs and promotes greater community unity through the use of organized teams of participants of varied social and economic backgrounds, skill 

levels, physical and developmental capabilities, ages, ethnic backgrounds, or genders. 

(B) A service program that- (i) recruits individuals with special skills or provides specialized preservice training to enable particiMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

45 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 122 

pants to be placed individually or in teams in positions 

in which the participants can meet such unmet needs; 

and 

(ii) if consistent with the purposes of the program, 

brings participants together for additional training 

and other activities designed to foster civic responsibility, increase the skills of participants, and improve 

the quality of the service provided. 

(C) A campus-based program that is designed to provide substantial service in a community during the school 

term and during summer or other vacation periods 

through the use of- (i) students who are attending an institution of 

higher education, including students participating in a 

work-study program assisted under part C of title N 

of the Higher Education Act of 1965 (42 U.S.C. 2751 

et seq.); 

(ii) teams composed of students described in 

clause (i); or 

(iii) teams composed of a combination of such students and community residents. 

(D) A professional corps program that recruits and 

places qualified participants in positions- (i) as teachers, nurses and other health care providers, police officers, early childhood development 

staff, engineers, or other professionals providing service to meet human, educational, environmental, or 

public safety needs in communities with an inadequate number of such professionals; 

(ii) for which the salary may exceed the maximum 

living allowance authorized in subsection (a)(2) of section 140, as provided in subsection (c) of such section; 

and 

(iii) that are sponsored by public or private employers who agree to pay 100 percent of the salaries 

and benefits (other than any national service educational award under subtitle D) of the participants. 

(E) A program that provides opportunities for veterans 

to participate in service projects. 

(F) A program carried out by an intermediary that 

builds the capacity of local nonprofit and faith-based organizations to expand and enhance services to meet local or 

national needs. 

(G) Such other program models as may be approved by 

the Corporation or a State Commission, as appropriate. 

(2) PROGRAM MODELS WITHIN CORPS.-A recipient of financial assistance or approved national service positions for a 

corps program described in subsection (a) may use the assistance or positions to carry out the corps program, in whole or 

in part, using a program model described in this subsection. 

The corps program shall meet the applicable requirements of 

subsection (a) and this subsection. 

(d) QUALIFICATION CRITERIA To DETERMINE ELIGIBILITY.- May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 122 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 46 

(1) ESTABLISHMENT BY CORPORATION.-The Corporation 

shall establish qualification criteria for different types of national service programs for the purpose of determining whether 

a particular national service program should be considered to 

be a national service program eligible to receive assistance or 

approved national service positions under this subtitle. 

(2) CONSULTATION.-ln establishing qualification criteria 

under paragraph (1), the Corporation shall consult with organizations and individuals with extensive experience in developing and administering effective national service programs or 

regarding the delivery of veteran services, and other human, 

educational, environmental, or public safety services, to communities or persons. 

(3) APPLICATION TO SUBGRANTS.-The qualification criteria 

established by the Corporation under paragraph (1) shall also 

be used by each recipient of assistance under section 121(a) 

that uses any portion of the assistance to conduct a grant program to support other national service programs. 

(4) ENCOURAGEMENT OF INTERGENERATIONAL COMPONENTS 

OF PROGRAMS.-The Corporation shall encourage national service programs eligible to receive assistance or approved national 

service positions under this subtitle to establish, if consistent 

with the purposes of the program, an intergenerational component of the program that combines students, out-of-school 

youths, disadvantaged youth, and older adults as participants 

to provide services to address unmet human, educational, environmental, or public safety needs. 

(e) PRIORITIES FOR CERTAIN CORPS.-ln awarding financial assistance and approved national service positions to eligible entities 

proposed to carry out the corps described in subsection (a}- (1) in the case of a corps described in subsection (a)(2}- (A) the Corporation may give priority to eligible entities that propose to provide support for participants who, 

after completing service under this section, will undertake 

careers to improve performance on health indicators described in subsection (a)(2)(C); and 

(B) the Corporation shall give priority to eligible entities that propose to carry out national service programs in 

medically underserved areas (as designated individually, 

by the Secretary of Health and Human Services as an area 

with a shortage of personal health services); and 

(2) in the case of a corps described in subsection (a)(3), the 

Corporation shall give priority to eligible entities that propose 

to recruit individuals for the Clean Energy Service Corps so 

that significant percentages of participants in the Corps are 

economically disadvantaged individuals, and provide to such 

individuals support services and education and training to develop skills needed for clean energy jobs for which there is current demand or projected future demand. 

(f) NATIONAL SERVICE PRIORITIES.- (1) ESTABLISHMENT.- (A) BY CORPORATION.-ln order to concentrate national 

efforts on meeting human, educational, environmental, or 

public safety needs and to achieve the other purposes of 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

47 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 122 

this Act, the Corporation, after reviewing the strategic 

plan approved under section 192A(g)(l,) shall establish, 

and may periodically alter, priorities regarding the types 

of national service programs and corps to be assisted 

under section 129 and the purposes for which such assistance may be used. 

(B) BY STATES.-Consistent with paragraph (4), States 

shall establish, and through the national service plan process described in section 178(e)(l), periodically alter priorities as appropriate regarding the national service programs to be assisted under section 129(e). The State priorities shall be subject to Corporation review as part of the 

application process under section 130. 

(2) NOTICE TO APPLICANTS.-The Corporation shall provide 

advance notice to potential applicants of any national service 

priorities to be in effect under this subsection for a fiscal year. 

The notice shall specifically include- (A) a description of any alteration made in the priorities since the previous notice; and 

(B) a description of the national service programs that 

are designated by the Corporation under section 133(d)(2) 

as eligible for priority consideration in the next competitive distribution of assistance under section 121(a). 

(3) REGULATIONS.-The Corporation shall by regulation establish procedures to ensure the equitable treatment of national service programs that- (A) receive funding under this subtitle for multiple 

years; and 

(B) would be adversely affected by annual revisions in 

such national service priorities. 

(4) APPLICATION TO SUBGRANTS.-Any national service priorities established by the Corporation under this subsection 

shall also be used by each recipient of funds under section 

121(a) that uses any portion of the assistance to conduct a 

grant program to support other national service programs. 

(g) CONSULTATION ON INDICATORS.-The Corporation shall consult with the Secretary of Education, the Secretary of Health and 

Human Services, the Director of the Centers for Disease Control 

and Prevention, the Secretary of Energy, the Secretary of Veterans 

Affairs, the Secretary of the Interior, the Administrator of the Environmental Protection Agency, the Secretary of Labor, the Secretary of Housing and Urban Development, and the Secretary of 

the Treasury, as appropriate, in developing additional indicators 

for the corps and programs described in subsections (a) and (b). 

(h) REQUIREMENTS FOR TUTORS.- (1) IN GENERAL.-Except as provided in paragraph (2), the 

Corporation shall require that each recipient of assistance 

under the national service laws that operates a tutoring program involving elementary school or secondary school students 

certifies that individuals serving in approved national service 

positions as tutors in such program have- (A) obtained their high school diplomas; and 

(B) successfully completed pre- and in-service training 

for tutors. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 122 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 48 

(2) EXCEPTION.-The requirements in paragraph (1) do not 

apply to an individual serving in an approved national service 

position who is enrolled in an elementary school or secondary 

school and is providing tutoring services through a structured, 

school-managed cross-grade tutoring program. 

(i) REQUIREMENTS FOR TUTORING PROGRAMS.-Each tutoring 

program that receives assistance under the national service laws 

shall-

(1) offer a curriculum that is high quality, research-based, 

and consistent with the State academic content standards required by section 1111 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311) and the instructional program of the local educational agency; and 

(2) offer high quality, research-based pre- and in-service 

training for tutors. 

G) CITIZENSHIP TRAINING.-The Corporation shall establish 

guidelines for recipients of assistance under the national service 

laws, that are consistent with the principles on which citizenship 

programs administered by U.S. Citizenship and Immigration Services are based, relating to the promotion of citizenship and civic engagement among participants in approved national service positions and approved summer of service positions, and appropriate to 

the age, education, and experience of the participants. 

(k) REPORT.-Not later than 60 days after the end of each fiscal year for which the Corporation makes grants under section 

121(a), the Corporation shall prepare and submit to the authorizing 

committees a report containing- ( 1) information describing how the Corporation allocated 

financial assistance and approved national service positions 

among eligible entities proposed to carry out corps and national service programs described in this section for that fiscal 

year; 

(2) information describing the amount of financial assistance and the number of approved national service positions the 

Corporation provided to each corps and national service program described in this section for that fiscal year; 

(3) a measure of the extent to which the corps and national 

service programs improved performance on the corresponding 

indicators; and 

( 4) information describing how the Corporation is coordinating-

(A) the national service programs funded under this 

section; with 

(B) applicable programs, as determined by the Corporation, carried out under subtitle B of this title, and part 

A of title I and parts A and B of title II of the Domestic 

Volunteer Service Act of 1973 (42 U.S.C. 4951 et seq., 

5001, 5011) that improve performance on those indicators 

or otherwise address identified community needs. 

SEC. 123. [42 U.S.C. 12573] TYPES OF NATIONAL SERVICE POSITIONS 

ELIGIBLE FOR APPROVAL FOR NATIONAL SERVICE EDUCATIONAL AWARDS. 

The Corporation may approve of any of the following service 

positions as an approved national service position that includes the 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

49 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 124 

national service educational award described in subtitle D as one 

of the benefits to be provided for successful service in the position: 

(1) A position for a participant in a national service program described in subsection (a), (b), or (c) of section 122 that 

receives assistance under subsection (a) of section 121. 

(2) A position for a participant in a program that- (A) is carried out by a State, a subdivision of a State, 

a territory, an Indian tribe, a public or private nonprofit 

organization, an institution of higher education, or a Federal agency (under an interagency agreement described in 

section 121(b)); and 

(B) would be eligible to receive assistance under section 121(a), based on criteria established by the Corporation, but has not applied for such assistance. 

(3) A position involving service as a VISTA volunteer 

under title I of the Domestic Volunteer Service Act of 1973 ( 42 

U.S.C. 4951 et seq.). 

(4) A position facilitating service-learning in a program described in section 122(a)(l)(B)(vi) that is eligible for assistance 

under part I of subtitle B. 

(5) A position for a participant in the National Civilian 

Community Corps under subtitle E. 

(6) A position involving service as a crew leader in a youth 

corps program or a similar position supporting a national service program that receives an approved national service position. 

(7) A position involving service in the ServeAmerica Fellowship program carried out under section 198B. 

(8) Such other national service positions as the Corporation considers to be appropriate. 

SEC. 124. [42 U.S.C. 12574] TYPES OF PROGRAM ASSISTANCE. 

(a) PLANNING AsSISTANCE.-The Corporation may provide assistance under section 121 to a qualified applicant that submits an 

application under section 130 for the planning of a national service 

program. Assistance provided in accordance with this subsection 

may cover a period of not more than 1 year. 

(b) OPERATIONAL AsSISTANCE.-The Corporation may provide 

assistance under section 121 to a qualified applicant that submits 

an application under section 130 for the establishment, operation, 

or expansion of a national service program. Assistance provided in 

accordance with this subsection may cover a period of not more 

than 3 years, but may be renewed by the Corporation upon consideration of a new application under section 130. 

(c) REPLICATION ASSISTANCE.-The Corporation may provide 

assistance under section 121 to a qualified applicant that submits 

an application under section 130 for the expansion of a proven national service program to another geographical location. Assistance 

provided in accordance with this subsection may cover a period of 

not more than 3 years, but may be renewed by the Corporation 

upon consideration of a new application under section 130. 

(d) APPLICATION TO SUBGRANTS.-The requirements of this section shall apply to any State or other applicant receiving assistance 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 126 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 50 

under section 121 that proposes to conduct a grant program using 

the assistance to support other national service programs. 

SEC. 126. [42 U.S.C. 12576] OTHER SPECIAL ASSISTANCE. 

(a) SUPPORT FOR STATE COMMISSIONS.- (1) GRANTS AUTHORIZED.-From amounts appropriated for 

a fiscal year pursuant to the authorization of appropriation in 

section 501(a)(5), the Corporation may make a grant in an 

amount between $250,000 and $1,000,000 to a State to assist 

the State to establish or operate the State Commission on National and Community Service required to be established by 

the State under section 178. 

(2) MATCHING REQUIREMENT.-ln making a grant to a 

State under this subsection, the Corporation shall require the 

State to agree to provide matching funds from non-Federal 

sources of not less than $1 for every $1 provided by the Corporation through the grant. 

(3) ALTERNATIVE.-Notwithstanding paragraph (2), the 

Chief Executive Officer may permit a State that demonstrates 

hardship or a new State Commission to meet alternative 

matching requirements for such a grant as follows: 

(A) FIRST $100,000.-For the first $100,000 of grant 

funds provided by the Corporation, the State involved shall 

not be required to provide matching funds. 

(B) AMOUNTS GREATER THAN $100,000.-For grant 

amounts of more than $100,000 and not more than 

$250,000 provided by the Corporation, the State shall 

agree to provide matching funds from non-Federal sources 

of not less than $1 for every $2 provided by the Corporation, in excess of $100,000. 

(C) AMOUNTS GREATER THAN $250,000.-For grant 

amounts of more than $250,000 provided by the Corporation, the State shall agree to provide matching funds from 

non-Federal sources of not less than $1 for every $1 provided by the Corporation, in excess of $250,000. 

(b) DISASTER SERVICE.-The Corporation may undertake activities, including activities carried out through part A of title I of the 

Domestic Volunteer Service Act of 1973 (42 U.S.C. 4951 et seq.), to 

involve programs that receive assistance under the national service 

laws in disaster relief efforts, and to support, including through 

mission assignments under the Robert T. Stafford Disaster Relief 

and Emergency Assistance Act (42 U.S.C. 5121 et seq.), nonprofit 

organizations and public agencies responding to the needs of communities experiencing disasters. 

(c) CHALLENGE GRANTS FOR NATIONAL SERVICE PROGRAMS.­

(1) AsSISTANCE AUTHORIZED.-The Corporation may make 

challenge grants under this subsection to programs supported 

under the national service laws. 

(2) SELECTION CRITERIA.-The Corporation shall develop 

criteria for the selection of recipients of challenge grants under 

this subsection, so as to make the grants widely available to 

a variety of programs that- (A) are high-quality national service programs; and 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

51 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 129 

(B) are carried out by entities with demonstrated experience in establishing and implementing projects that provide benefits to participants and communities. 

(3) AMOUNT OF ASSISTANCE.-A challenge grant under this 

subsection may provide, for an initial 3-year grant period, not 

more than $1 of assistance under this subsection for each $1 

in cash raised from private sources by the program supported 

under the national service laws in excess of amounts required 

to be provided by the program to satisfy matching funds requirements. After an initial 3-year grant period, a grant under 

this subsection may provide not more than $1 of assistance 

under this subsection for each $2 in cash raised from private 

sources by the program in excess of amounts required to be 

provided by the program to satisfy matching funds requirements. The Corporation may permit the use of local or State 

funds under this paragraph in lieu of cash raised from private 

sources if the Corporation determines that such use would be 

equitable due to a lack of available private funds at the local 

level. The Corporation shall establish a ceiling on the amount 

of assistance that may be provided to a national service program under this subsection. 

PART II-APPLICATION AND APPROVAL 

PROCESS 

SEC. 129. [42 U.S.C. 12581] PROVISION OF ASSISTANCE AND APPROVED 

NATIONAL SERVICE POSITIONS. 

(a) ONE PERCENT ALLOTMENT FOR CERTAIN TERRITORIES.-Of 

the funds allocated by the Corporation for provision of assistance 

under section 121(a) for a fiscal year, the Corporation shall reserve 

1 percent for grants to the United States Virgin Islands, Guam, 

American Samoa, and the Commonwealth of the Northern Mariana 

Islands upon approval by the Corporation of an application submitted under section 130. The Corporation shall allot for a grant 

to each such territory under this subsection for a fiscal year an 

amount that bears the same ratio to 1 percent of the allocated 

funds for that fiscal year as the population of the territory bears 

to the total population of all such territories. 

(b) ALLOTMENT FOR INDIAN TRIBES.-Of the funds allocated by 

the Corporation for provision of assistance under section 121(a) for 

a fiscal year, the Corporation shall reserve at least 1 percent for 

grants to Indian tribes to be allotted by the Corporation on a competitive basis. 

(c) RESERVATION OF APPROVED POSITIONS.-The Corporation 

shall ensure that each individual selected during a fiscal year for 

assignment as a VISTA volunteer under title I of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4951 et seq.) or as a participant in the National Civilian Community Corps Program under 

subtitle E shall receive the national service educational award described in subtitle D if the individual satisfies the eligibility requirements for the award. Funds for approved national service positions required by this paragraph for a fiscal year shall be deducted from the total funding for approved national service posiMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 129 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 52 

tions to be available for distribution under subsections (d) and (e) 

for that fiscal year. 

(d) ALLOTMENT FOR COMPETITIVE GRANTS.- (1) IN GENERAL.-Of the funds allocated by the Corporation for provision of assistance under section 121(a) for a fiscal 

year and subject to section 133(d)(3), the Corporation shall reserve not more than 62. 7 percent for grants awarded on a competitive basis to States specified in subsection (e)(l) for national service programs, to nonprofit organizations seeking to 

operate a national service program in 2 or more of those 

States, and to Indian tribes. 

(2) EQUITABLE TREATMENT.-ln the consideration of applications for such grants, the Corporation shall ensure the equitable treatment of applicants from urban areas, applicants 

from rural areas, applicants of diverse sizes (as measured by 

the number of participants served), applicants from States, and 

applicants from national nonprofit organizations. 

(3) ENCORE SERVICE PROGRAMS.-ln making grants under 

this subsection for a fiscal year, the Corporation shall make an 

effort to allocate not less than 10 percent of the financial assistance and approved national service positions provided 

through the grants for that fiscal year to eligible entities proposing to carry out encore service programs, unless the Corporation does not receive a sufficient number of applications of 

adequate quality to justify making that percentage available to 

those eligible entities. 

(4) CORPS PROGRAMS.-ln making grants under this subsection for a fiscal year, the Corporation- (A) shall select 2 or more of the national service corps 

described in section 122(a) to receive grants under this 

subsection; and 

(B) may select national service programs described in 

section 122(b) to receive such grants. 

(e) ALLOTMENT TO CERTAIN STATES ON FORMULA BASIS.- (1) GRANTS.-Of the funds allocated by the Corporation for 

provision of assistance under section 121(a) for a fiscal year, 

the Corporation shall make a grant to each of the several 

States, the District of Columbia, and the Commonwealth of 

Puerto Rico that submits an application under section 130 that 

is approved by the Corporation. 

(2) ALLOTMENTS.-The Corporation shall allot for a grant 

to each such State under this subsection for a fiscal year an 

amount that bears the same ratio to 35.3 percent of the allocated funds for that fiscal year as the population of the State 

bears to the total population of the several States, the District 

of Columbia, and the Commonwealth of Puerto Rico, in compliance with paragraph (3). 

(3) MINIMUM AMOUNT.-Notwithstanding paragraph (2), 

the minimum grant made available to each State approved by 

the Corporation under paragraph (1) for each fiscal year shall 

be at least $600,000, or 0.5 percent of the amount allocated for 

the State formula under this subsection for the fiscal year, 

whichever is greater. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

53 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 129 

(f) EFFECT OF FAILURE To APPLY.-If a State or territory fails 

to apply for, or fails to give notice to the Corporation of its intent 

to apply for, an allotment under this section, or the Corporation 

does not approve the application consistent with section 133, the 

Corporation may use the amount that would have been allotted 

under this section to the State or territory to-- ( 1) make grants (and provide approved national service positions in connection with such grants) to other communitybased entities under section 121 that propose to carry out national service programs in such State or territory; and 

(2) make reallotments to other States or territories with 

approved applications submitted under section 130, from the 

allotment funds not used to make grants as described in paragraph (1). 

(g) APPLICATION REQUIRED.-The Corporation shall make an 

allotment of assistance (including the provision of approved national service positions) to a recipient under this section only pursuant to an application submitted by a State or other applicant 

under section 130. 

(h) APPROVAL OF POSITIONS SUBJECT TO AVAILABLE FUNDS.­

The Corporation may not approve positions as approved national 

service positions under this subtitle for a fiscal year in excess of 

the number of such positions for which the Corporation has sufficient available funds in the National Service Trust for that fiscal 

year, taking into consideration funding needs for national service 

educational awards under subtitle D based on completed service. If 

appropriations are insufficient to provide the maximum allowable 

national service educational awards under subtitle D for all eligible 

participants, the Corporation is authorized to make necessary and 

reasonable adjustments to program rules. 

(i) SPONSORSHIP OF APPROVED NATIONAL SERVICE POSITIONS.- (1) SPONSORSHIP AUTHORIZED.-The Corporation may enter 

into agreements with persons or entities who offer to sponsor 

national service positions for which the person or entity will be 

responsible for supplying the funds necessary to provide a national service educational award. The distribution of those approved national service positions shall be made pursuant to the 

agreement, and the creation of those positions shall not be 

taken into consideration in determining the number of approved national service positions to be available for distribution under this section. 

(2) DEPOSIT OF CONTRIBUTION.-Funds provided pursuant 

to an agreement under paragraph (1) shall be deposited in the 

National Service Trust established in section 145 until such 

time as the funds are needed. 

G) RESERVATION OF FUNDS FOR SPECIAL ASSISTANCE.- (1) RESERVATION.-From amounts appropriated for a fiscal 

year pursuant to the authorization of appropriations in section 

501(a)(2) and allocated to carry out subtitle C and subject to 

the limitation in such section, the Corporation may reserve 

such amount as the Corporation considers to be appropriate for 

the purpose of making assistance available under subsections 

(b) and (c) of section 126. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 129 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 54 

(2) LIMITATION.-The amount reserved under paragraph 

(1) for a fiscal year may not exceed $10,000,000. 

(3) TIMING.-The Corporation shall reserve such amount, 

and any amount reserved under subsection (k) from funds appropriated and allocated to carry out subtitle C, before allocating funds for the provision of assistance under any other 

provision of this subtitle. 

(k) RESERVATION OF FUNDS To INCREASE THE PARTICIPATION 

OF INDMDUALS WITH DISABILITIES.- (1) RESERVATION.-To make grants to public or private 

nonprofit organizations to increase the participation of individuals with disabilities in national service and for demonstration 

activities in furtherance of this purpose, and subject to the limitation in paragraph (2), the Chief Executive Officer shall reserve not less than 2 percent from the amounts, appropriated 

to carry out subtitles C, D, E, and H for each fiscal year. 

(2) LIMITATION.-The amount reserved under paragraph 

(1) for a fiscal year may not exceed $20,000,000. 

(3) REMAINDER.-The Chief Executive Officer may use the 

funds reserved under paragraph (1), and not distributed to 

make grants under this subsection for other activities described in section 501(a)(2). 

(1) AUTHORITY FOR FIXED-AMOUNT GRANTS.­

(1) IN GENERAL.- (A) AUTHORITY.-From amounts appropriated for a fiscal year to provide financial assistance under the national 

service laws, the Corporation may provide assistance in 

the form of fixed-amount grants in an amount determined 

by the Corporation under paragraph (2) rather than on the 

basis of actual costs incurred by a program. 

(B) LIMITATION.-Other than fixed-amount grants to 

support programs described in section 129A, for the 1-year 

period beginning on the effective date of the Serve America 

Act, the Corporation may provide assistance in the form of 

fixed-amount grants to programs that only offer full-time 

positions. 

(2) DETERMINATION OF AMOUNT OF FIXED-AMOUNT 

GRANTS.-A fixed-amount grant authorized by this subsection 

shall be in an amount determined by the Corporation that is­

(A) significantly less than the reasonable and nec- essary costs of administering the program supported by 

the grant; and 

(B) based on an amount per individual enrolled in the 

program receiving the grant, taking into account- (i) the capacity of the entity carrying out the program to manage funds and achieve programmatic results; 

(ii) the number of approved national service positions, approved silver scholar positions, or approved 

summer of service positions for the program, if applicable; 

(iii) the proposed design of the program; 

(iv) whether the program provides service to, or 

involves the participation of, disadvantaged youth or 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

55 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 129 

otherwise would reasonably incur a relatively higher 

level of costs; and 

(v) such other factors as the Corporation may consider under section 133 in considering applications for 

assistance. 

(3) REQUIREMENTS FOR GRANT RECIPIENTS.-ln awarding a 

fixed-amount grant under this subsection, the Corporation­

(A) shall require the grant recipient- (i) to return a pro rata amount of the grant funds 

based upon the difference between the number of 

hours served by a participant and the minimum number of hours for completion of a term of service (as established by the Corporation); 

(ii) to report on the program's performance on 

standardized measures and performance levels established by the Corporation; 

(iii) to cooperate with any evaluation activities undertaken by the Corporation; and 

(iv) to provide assurances that additional funds 

will be raised in support of the program, in addition 

to those received under the national service laws; and 

(B) may adopt other terms and conditions that the 

Corporation considers necessary or appropriate based on 

the relative risks (as determined by the Corporation) associated with any application for a fixed-amount grant. 

(4) OTHER REQUIREMENTS NOT APPLICABLE.-Limitations 

on administrative costs and matching fund documentation requirements shall not apply to fixed-amount grants provided in 

accordance with this subsection. 

(5) RULE OF CONSTRUCTION.-Nothing in this subsection 

shall relieve a grant recipient of the responsibility to comply 

with the requirements of chapter 75 of title 31, United States 

Code, or other requirements of Office of Management and 

Budget Circular A-133. 

SEC. 129A. [42 U.S.C. 12581a] EDUCATIONAL AWARDS ONLY PROGRAM. 

(a) IN GENERAL.-From amounts appropriated for a fiscal year 

to provide financial assistance under this subtitle and consistent 

with the restriction in subsection (b), the Corporation may, through 

fixed-amount grants (in accordance with section 129(1)), provide 

operational support to programs that receive approved national 

service positions but do not receive funds under section 121(a). 

(b) LIMIT ON CORPORATION GRANT FUNDS.-The Corporation 

may provide the operational support under this section for a program in an amount that is not more than $800 per individual enrolled in an approved national service position, or not more than 

$1,000 per such individual if at least 50 percent of the persons enrolled in the program are disadvantaged youth. 

(c) INAPPLICABLE PROVISIONS.-The following provisions shall 

not apply to programs funded under this section: 

(1) The limitation on administrative costs under section 

121(d). 

(2) The matching funds requirements under section 121(e). 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 130 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 56 

(3) The living allowance and other benefits under sections 

131(e) and 140 (other than individualized support services for 

participants with disabilities under section 140(£)). 

SEC. 130. [42 U.S.C. 12582] APPLICATION FOR ASSISTANCE AND APPROVED NATIONAL SERVICE POSITIONS 

(a) TIME, MANNER, AND CONTENT OF APPLICATION.-To be eligible to receive assistance under section 121(a) or approved national 

service positions for participants who serve in the national service 

programs to be carried out using the assistance, a State, territory, 

subdivision of a State, Indian tribe, public or private nonprofit organization, or institution of higher education shall prepare and 

submit to the Corporation an application at such time, in such 

manner, and containing such information as the Corporation may 

reasonably require. 

(b) TYPES OF PERMISSIBLE APPLICATION INFORMATION.-ln 

order to have adequate information upon which to consider an application under section 133, the Corporation may require the following information to be provided in an application submitted 

under subsection (a): 

(1) A description of the national service programs proposed 

to be carried out directly by the applicant using assistance provided under section 121. 

(2) A description of the national service programs that are 

selected by the applicant to receive a grant using assistance requested under section 121 and a description of the process and 

criteria by which the programs were selected. 

(3) A description of other funding sources to be used, or 

sought to be used, for the national service programs referred 

to in paragraphs (1) and (2), and, if the application is submitted for the purpose of seeking a renewal of assistance, a description of the success of the programs in reducing their reliance on Federal funds. 

(4) A description of the extent to which the projects to be 

conducted using the assistance will address unmet human, 

educational, environmental, or public safety needs and produce 

a direct benefit for the community in which the projects are 

performed. 

(5) A description of the plan to be used to recruit participants, including youth who are individuals with disabilities 

and economically disadvantaged young men and women, for 

the national service programs referred to in paragraphs (1) and 

(2). 

(6) A description of the manner in which the national service programs referred to in paragraphs (1) and (2) build on existing programs, including Federal programs. 

(7) A description of the manner in which the national service programs referred to in paragraphs (1) and (2) will involve 

participants- (A) in projects that build an ethic of civic responsibility and produce a positive change in the lives of participants through training and participation in meaningful 

service experiences and opportunities for reflection on such 

experiences; and 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

57 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 130 

(B) in leadership positions in implementing and evaluating the program. 

(8) Measurable goals for the national service programs referred to in paragraphs (1) and (2), and a strategy to achieve 

such goals, in terms of- (A) the impact to be made in meeting unmet human, 

educational, environmental, or public safety needs; and 

(B) the service experience to be provided to participants in the programs. 

(9) A description of the manner and extent to which the 

national service programs referred to in paragraphs (1) and (2) 

conform to the national service priorities established by the 

Corporation under section 122(£). 

(10) A description of the past experience of the applicant 

in operating a comparable program or in conducting a grant 

program in support of other comparable service programs. 

(11) A description of the type and number of proposed 

service positions in which participants will receive the national 

service educational award described in subtitle D and a description of the manner in which approved national service positions will be apportioned by the applicant. 

(12) A description of the manner and extent to which participants, representatives of the community served, community-based agencies with a demonstrated record of experience 

in providing services, municipalities and governments of counties in which such a community is located, and labor organizations contributed to the development of the national service 

programs referred to in paragraphs (1) and (2), including the 

identity of the individual representing each appropriate labor 

organization (if any) who was consulted and the nature of the 

consultation. 

(13) Such other information as the Corporation may reasonably require. 

(c) REQUIRED APPLICATION INFORMATION.-An application submitted under subsection (a) shall contain the following information: 

(1) A description of the proposed positions into which participants will be placed using the assistance provided under 

section 121. 

(2) A description of the proposed minimum qualifications 

that individuals shall meet to become participants in such programs. 

(3) In the case of a nonprofit organization intending to operate programs in 2 or more States, a description of the manner in which and extent to which the organization consulted 

with the State Commissions of each State in which the organization intends to operate and the nature of the consultation. 

(d) ADDITIONAL REQUIRED APPLICATION INFORMATION.-An application submitted under subsection (a) for programs described in 

122(a) shall also contain- (1) measurable goals, to be used for annual measurements 

of the program's performance on 1 or more of the corresponding indicators described in section 122; 

(2) information describing how the applicant proposes to 

utilize funds to improve performance on the corresponding inMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 130 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 58 

dicators utilizing participants, including describing the activities in which such participants will engage to improve performance on those indicators; 

(3) information identifying the geographical area in which 

the eligible entity proposing to carry out the program proposes 

to use funds to improve performance on the corresponding indicators, and demographic information on the students or individuals, as appropriate, in such area, and statistics demonstrating the need to improve such indicators in such area; 

and 

( 4) if applicable, information on how the eligible entity will 

work with other community-based entities to carry out activities to improve performance on the corresponding indicators 

using such funds. 

(e) APPLICATION To RECEIVE ONLY APPROVED NATIONAL SERVICE POSITIONS.- ( 1) APPLICABILITY OF SUBSECTION.-This subsection shall 

apply in the case of an application in which- (A) the applicant is not seeking assistance under section 121(a), but requests national service educational 

awards for individuals serving in service positions described in section 123; or 

(B) the applicant requests national service educational 

awards for service positions described in section 123, but 

the positions are not positions in a national service program described in subsection (a), (b), or (c) of section 122 

for which assistance may be provided under section 121(a). 

(2) SPECIAL APPLICATION REQUIREMENTS.-For the applica- tions described in paragraph (1), the Corporation shall establish special application requirements in order to determine­

(A) whether the service positions meet unmet human, 

educational, environmental, or public safety needs and 

meet the criteria for assistance under this subtitle; and 

(B) whether the Corporation should approve the positions as approved national service positions. 

(f) SPECIAL RULE FOR STATE APPLICANTS.- (1) SUBMISSION BY STATE COMMISSION.-The application of 

a State for approved national service positions or for a grant 

under section 121(a) shall be submitted by the State Commission. 

(2) COMPETITIVE SELECTION.-The application of a State 

shall contain an assurance that all assistance provided under 

section 121(a) to the State will be used to support national 

service programs that were or will be selected by the State on 

a competitive basis. In making such competitive selections, the 

State shall seek to ensure the equitable allocation within the 

State of assistance and approved national service positions provided under this subtitle to the State taking into consideration 

such factors as the location of the programs applying to the 

State, population density, and economic distress. 

(3) ASSISTANCE TO NONSTATE ENTITIES.-The application of 

a State shall also contain an assurance that not less than 60 

percent of the assistance will be used to make grants in support of national service programs other than national service 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

59 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 131 

programs carried out by a State agency. The Corporation may 

permit a State to deviate from the percentage specified by this 

subsection if the State has not received a sufficient number of 

acceptable applications to comply with the percentage. 

(g) SPECIAL RULE FOR CERTAIN APPLICANTS.- (!) WRITTEN CONCURRENCE.-ln the case of an applicant 

that proposes to also serve as the service sponsor, the application shall include the written concurrence of any local labor organization representing employees of the service sponsor who 

are engaged in the same or substantially similar work as that 

proposed to be carried out. 

(2) APPLICANT DEFINED.-For purposes of this subsection, 

the term "applicant" means- (A) a State, subdivision of a State, territory, Indian 

tribe, public or private nonprofit organization, or institution of higher education submitting an application under 

this section; or 

(B) an entity applying for assistance or approved national service positions through a grant program conducted 

using assistance provided to a State, subdivision of a 

State, territory, Indian tribe, public or private nonprofit 

organization, or institution of higher education under section 121. 

(h) LIMITATION ON SAME PROJECT RECEMNG MULTIPLE 

GRANTS.-Unless specifically authorized by law, the Corporation 

may not provide more than 1 grant under the national service laws 

for a fiscal year to support the same project under the national 

service laws. 

SEC. 131. [42 U.S.C. 12583] NATIONAL SERVICE PROGRAM ASSISTANCE 

REQUIREMENTS. 

(a) IMPACT ON COMMUNITIES.-An application submitted under 

section 130 shall include an assurance by the applicant that any 

national service program carried out by the applicant using assistance provided under section 121 and any national service program 

supported by a grant made by the applicant using such assistance 

will- (1) address unmet human, educational, environmental, or 

public safety needs through services that provide a direct benefit to the community in which the service is performed; and 

(2) comply with the nonduplication and nondisplacement 

requirements of section 177 and the grievance procedure requirements of section 176(£). 

(b) IMPACT ON PARTICIPANTS.-An application submitted under 

section 130 shall also include an assurance by the applicant that 

any national service program carried out by the applicant using assistance provided under section 121 and any national service program supported by a grant made by the applicant using such assistance will- ( 1) provide participants in the national service program 

with the training, skills, and knowledge necessary for the 

projects that participants are called upon to perform; 

(2) provide support services to participants, such as the 

provision of appropriate information and supportMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 131 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 60 

(A) to those participants who are completing a term of 

service and making the transition to other educational and 

career opportunities; and 

(B) to those participants who are school dropouts in 

order to assist those participants in earning the equivalent 

of a high school diploma; and 

(3) provide, if appropriate, structured opportunities for 

participants to reflect on their service experiences. 

(c) CONSULTATION.-An application submitted under section 

130 shall also include an assurance by the applicant that any national service program carried out by the applicant using assistance 

provided under section 121 and any national service program supported by a grant made by the applicant using such assistance 

will- (1) provide in the design, recruitment, and operation of the 

program for broad-based input from- (A) the community served, the municipality and government of the county (if appropriate) in which the community is located, and potential participants in the program; and 

(B) community-based agencies with a demonstrated 

record of experience in providing services and local labor 

organizations representing employees of service sponsors, 

if these entities exist in the area to be served by the program; 

(2) prior to the placement of participants, consult with the 

appropriate local labor organization, if any, representing employees in the area who are engaged in the same or similar 

work as that proposed to be carried out by such program to ensure compliance with the nondisplacement requirements specified in section 177; and 

(3) in the case of a program that is not funded through a 

State (including a national service program that a nonprofit organization seeks to operate in 2 or more States), consult with 

and coordinate activities with the State Commission for each 

State in which the program will operate, and the Corporation 

shall obtain confirmation from the State Commission that the 

applicant seeking assistance under this Act has consulted with 

and coordinated with the State Commission when seeking to 

operate the program in that State. 

(d) EVALUATION AND PERFORMANCE GOALS.- (1) IN GENERAL.-An application submitted under section 

130 shall also include an assurance by the applicant that the 

applicant will- (A) arrange for an independent evaluation of any national service program carried out using assistance provided to the applicant under section 121 or, with the approval of the Corporation, conduct an internal evaluation 

of the program; 

(B) apply measurable performance goals and evaluation methods (such as the use of surveys of participants 

and persons served), which are to be used as part of such 

evaluation to determine the impact of the programMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

61 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 132 

(i) on communities and persons served by the 

projects performed by the program; 

(ii) on participants who take part in the projects; 

and 

(iii) in such other areas as the Corporation may 

require; and 

(C) cooperate with any evaluation activities undertaken by the Corporation. 

(2) EVALUATION.-Subject to paragraph (3), the Corporation shall develop evaluation criteria and performance goals 

applicable to all national service programs carried out with assistance provided under section 121. 

(3) ALTERNATIVE EVALUATION REQUIREMENTS.-The Corporation may establish alternative evaluation requirements for 

national service programs based upon the amount of assistance 

received under section 121 or received by a grant made by a 

recipient of assistance under such section. The determination 

of whether a national service program is covered by this paragraph shall be made in such manner as the Corporation may 

prescribe. 

(e) LMNG ALLOWANCES AND OTHER INSERVICE BENEFITS.-Except as provided in section 140(c), an application submitted under 

section 130 shall also include an assurance by the applicant that 

the applicant will- (1) ensure the provision of a living allowance and other 

benefits specified in section 140 to participants in any national 

service program carried out by the applicant using assistance 

provided under section 121; and 

(2) require that each national service program that receives a grant from the applicant using such assistance will 

also provide a living allowance and other benefits specified in 

section 140 to participants in the program. 

(f) SELECTION OF PARTICIPANTS FROM INDMDUALS RECRUITED 

BY CORPORATION OR STATE COMMISSIONS.-The Corporation may 

also require an assurance by the applicant that any national service program carried out by the applicant using assistance provided 

under section 121 and any national service program supported by 

a grant made by the applicant using such assistance will select a 

portion of the participants for the program from among prospective 

participants recruited by the Corporation or State Commissions 

under section 138(d). The Corporation may specify a minimum percentage of participants to be selected from the national leadership 

pool established under section 138(e) and may vary the percentage 

for different types of national service programs. 

SEC.132. [42 U.S.C.12584] INELIGIBLE SERVICE CATEGORIES. 

(a) IN GENERAL.-Except as provided in subsection (b), an application submitted to the Corporation under section 130 shall include an assurance by the applicant that any national service program carried out using assistance provided under section 121 and 

any approved national service position provided to an applicant will 

not be used to perform service that provides a direct benefit to 

any- (1) business organized for profit; 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 132A NATIONAL AND COMMUNITY SERVICE ACT OF 1990 62 

(2) labor union; 

(3) partisan political organization; 

( 4) organization engaged in religious activities, unless such 

service does not involve the use of assistance provided under 

section 121 or participants- (A) to give religious instruction; 

(B) to conduct worship services; 

(C) to provide instruction as part of a program that includes mandatory religious education or worship; 

(D) to construct or operate facilities devoted to religious instruction or worship or to maintain facilities primarily or inherently devoted to religious instruction or 

worship; or 

(E) to engage in any form of proselytization; or 

(5) nonprofit organization that fails to comply with the restrictions contained in section 501(c) of the Internal Revenue 

Code of 1986 (26 U.S.C. 501(c)), except that nothing in this section shall be construed to prevent participants from engaging 

in advocacy activities undertaken at their own initiative. 

(b) REGIONAL CORPORATION.-The requirement of subsection 

(a) relating to an assurance regarding direct benefits to businesses 

organized for profit shall not apply with respect to a Regional Corporation, as defined in section 3(g) of the Alaska Native Claims 

Settlement Act (43 U.S.C. 1602(g)), that is established in accordance with such Act as a for-profit corporation but that is engaging 

in nonprofit activities. 

SEC. 132A. [42 U.S.C. 12584a] PROmBITED ACTIVITIBS AND INELIGIBLE 

ORGANIZATIONS. 

(a) PROHIBITED ACTMTIES.-An approved national service position under this subtitle may not be used for the following activities: 

(1) Attempting to influence legislation. 

(2) Organizing or engaging in protests, petitions, boycotts, 

or strikes. 

(3) Assisting, promoting, or deterring union organizing. 

(4) Impairing existing contracts for services or collective 

bargaining agreements. 

(5) Engaging in partisan political activities, or other activities designed to influence the outcome of an election to Federal 

office or the outcome of an election to a State or local public 

office. 

(6) Participating in, or endorsing, events or activities that 

are likely to include advocacy for or against political parties, 

political platforms, political candidates, proposed legislation, or 

elected officials. 

(7) Engaging in religious instruction, conducting worship 

services, providing instruction as part of a program that includes mandatory religious instruction or worship, constructing 

or operating facilities devoted to religious instruction or worship, maintaining facilities primarily or inherently devoted to 

religious instruction or worship, or engaging in any form of 

proselytization, consistent with section 132. 

(8) Consistent with section 132, providing a direct benefit 

to anyMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

63 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 133 

(A) business organized for profit; 

(B) labor union; 

(C) partisan political organization; 

(D) nonprofit organization that fails to comply with 

the restrictions contained in section 501(c) of the Internal 

Revenue Code of 1986, except that nothing in this paragraph shall be construed to prevent participants from engaging in advocacy activities undertaken at their own initiative; and 

(E) organization engaged in the religious activities described in paragraph (7), unless the position is not used to 

support those religious activities. 

(9) Providing abortion services or referrals for receipt of 

such services. 

(10) Conducting a voter registration drive or using Corporation funds to conduct a voter registration drive. 

(11) Carrying out such other activities as the Corporation 

may prohibit. 

(b) INELIGIBILITY.-No assistance provided under this subtitle 

may be provided to any organization that has violated a Federal 

criminal statute. 

(c) NONDISPLACEMENT OF EMPLOYED WORKERS OR OTHER VoLUNTEERS.-A participant in an approved national service position 

under this subtitle may not be directed to perform any services or 

duties, or to engage in any activities, prohibited under the nonduplication, nondisplacement, or nonsupplantation requirements 

relating to employees and volunteers in section 177. 

SEC.133. [42 U.S.C.12585] CONSIDERATION OF APPLICATIONS. 

(a) CORPORATION CONSIDERATION OF CERTAIN CRITERIA.-The 

Corporation shall apply the criteria described in subsections (c) and 

(d) in determining whether- (1) to approve an application submitted under section 130 

and provide assistance under section 121 to the applicant; and 

(2) to approve service positions described in the application 

as national service positions that include the national service 

educational award described in subtitle D and provide such approved national service positions to the applicant. 

(b) APPLICATION TO SUBGRANTS.- (1) IN GENERAL.-A State or other entity that uses assistance provided under section 121(a) to support national service 

programs selected on a competitive basis to receive a share of 

the assistance shall use the criteria described in subsections (c) 

and (d) when considering an application submitted by a national service program to receive a portion of such assistance 

or an approved national service position. 

(2) CONTENTS.-The application of the State or other entity 

under section 130 shall contain- (A) a certification that the State or other entity used 

these criteria in the selection of national service programs 

to receive assistance; 

(B) a description of the positions into which participants will be placed using such assistance, including deMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 133 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 64 

scriptions of specific tasks to be performed by such participants; and 

(C) a description of the minimum qualifications that 

individuals shall meet to become participants in such programs. 

(c) AsSISTANCE CRITERIA.-The criteria required to be applied 

in evaluating applications submitted under section 130 are as follows: 

(1) The quality of the national service program proposed to 

be carried out directly by the applicant or supported by a grant 

from the applicant. 

(2) The innovative aspects of the national service program, 

and the feasibility of replicating the program. 

(3) The sustainability of the national service program, 

based on evidence such as the existence- (A) of strong and broad-based community support for 

the program; and 

(B) of multiple funding sources or private funding for 

the program. 

(4) The quality of the leadership of the national service 

program, the past performance of the program, and the extent 

to which the program builds on existing programs. 

(5) The extent to which participants of the national service 

program are recruited from among residents of the communities in which projects are to be conducted, and the extent to 

which participants and community residents are involved in 

the design, leadership, and operation of the program. 

(6) The extent to which projects would be conducted in the 

following areas where they are needed most: 

(A) Communities designated as empowerment zones or 

redevelopment areas, targeted for special economic incentives, or otherwise identifiable as having high concentrations of low-income people. 

(B) Areas that are environmentally distressed. 

(C) Areas adversely affected by Federal actions related 

to the management of Federal lands that result in significant regional job losses and economic dislocation. 

(D) Areas adversely affected by reductions in defense 

spending or the closure or realignment of military installations. 

(E) Areas that have an unemployment rate greater 

than the national average unemployment for the most recent 12 months for which satisfactory data are available. 

(7) In the case of applicants other than States, the extent 

to which the application is consistent with the application 

under section 130 of the State in which the projects would be 

conducted. 

(8) Such other criteria as the Corporation considers to be 

appropriate. 

(d) OTHER CONSIDERATIONS.- (1) GEOGRAPHIC DIVERSITY.-The Corporation shall ensure 

that recipients of assistance provided under section 121 are 

geographically diverse and include projects to be conducted in 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

65 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 133 

those urban and rural areas in a State with the highest rates 

of poverty. 

(2) PRIORITIES.-The Corporation may designate, under 

such criteria as may be established by the Corporation, certain 

national service programs or types of national service programs 

described in subsection (a), (b), or (c) of section 122 for priority 

consideration in the competitive distribution of funds under 

section 129(d). In designating national service programs to receive priority, the Corporation may include- (A) national service programs that- (i) conform to the national service priorities in effect under section 122(f); 

(ii) are innovative; and 

(iii) are well established in 1 or more States at the 

time of the application and are proposed to be expanded to additional States using assistance provided 

under section 121; 

(B) grant programs in support of other national service 

programs if the grant programs are to be conducted by 

nonprofit organizations with demonstrated and extensive 

expertise in the provision of services to meet human, educational, environmental, or public safety needs; and 

(C) professional corps programs described in section 

122(c)(l)(D). 

(3) ADDITIONAL PRIORITY.-ln making a competitive distribution of funds under section 129(d), the Corporation may 

give priority consideration to a national service program that 

is- (A) proposed in an application submitted by a State 

Commission; and 

(B) not one of the types of programs described in para- graph (2), 

if the State Commission provides an adequate explanation of 

the reasons why it should not be a priority of such State to 

carry out any of such types of programs in the State. 

(4) REVIEW PANEL.-The Corporation shall- (A) establish panels of experts for the purpose of securing recommendations on applications submitted under 

section 130 for more than $250,000 in assistance, or for 

national service positions that would require more than 

$250,000 in national service educational awards; and 

(B) consider the opinions of such panels prior to making such determinations. 

(e) EMPHASIS ON AREAS MOST IN NEED.-ln making assistance 

available under section 121 and in providing approved national 

service positions under section 123, the Corporation shall ensure 

that not less than 50 percent of the total amount of assistance to 

be distributed to States under subsections (d) and (e) of section 129 

for a fiscal year is provided to carry out or support national service 

programs and projects that- (1) are conducted in any of the areas described in subsection (c)(6) or on Federal or other public lands, to address 

unmet human, educational, environmental, or public safety 

needs in such areas or on such lands; and 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 137 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 66 

(2) place a priority on the recruitment of participants who 

are residents of any of such areas or Federal or other public 

lands. 

(f) VIEWS OF STATE COMMISSION.-ln making competitive 

awards under section 129(d), the Corporation shall solicit and consider the views of a State Commission regarding any application 

for assistance to carry out a national service program within the 

State. 

(g) REJECTION OF STATE APPLICATIONS.- (1) NOTIFICATION OF STATE APPLICANTS.-If the Corporation rejects an application submitted by a State Commission 

under section 130 for funds described in section 129(e), the 

Corporation shall promptly notify the State Commission of the 

reasons for the rejection of the application. 

(2) RESUBMISSION AND RECONSIDERATION.-The Corporation shall provide a State Commission notified under paragraph (1) with a reasonable opportunity to revise and resubmit 

the application. At the request of the State Commission, the 

Corporation shall provide technical assistance to the State 

Commission as part of the resubmission process. The Corporation shall promptly reconsider an application resubmitted 

under this paragraph. 

(3) REALLOTMENT.-The amount of any State's allotment 

under section 129(e) for a fiscal year that the Corporation determines will not be provided for that fiscal year shall be available for distribution by the Corporation as provided in section 

129(£). 

PART III-NATIONAL SERVICE PARTICIPANTS 

SEC.137. [42 U.S.C.12591] DESCRIPTION OF PARTICIPANTS. 

(a) IN GENERAL.-For purposes of this subtitle, an individual 

shall be considered to be a participant in a national service program carried out using assistance provided under section 121 if the 

individual- ( 1) meets such eligibility requirements, directly related to 

the tasks to be accomplished, as may be established by the program; 

(2) is selected by the program to serve in a position with 

the program; 

(3) is 17 years of age or older at the time the individual 

begins the term of service; 

(4) has received a high school diploma or its equivalent, 

agrees to obtain a high school diploma or its equivalent (unless 

this requirement is waived based on an individual education 

assessment conducted by the program) and the individual did 

not drop out of an elementary or secondary school to enroll in 

the program, or is enrolled in an institution of higher education on an ability to benefit basis and is considered eligible 

for funds under section 484 of the Higher Education Act of 

1965 (20 U.S.C. 1091); and 

(5) is a citizen or national of the United States or lawful 

permanent resident alien of the United States. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

67 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 138 

(b) SPECIAL RULES FOR CERTAIN YOUTH PROGRAMS.-An individual shall be considered to be a participant in a youth corps program described in section 122(a)(3)(B)(x) that is carried out with 

assistance provided under section 121(a) if the individual- (1) satisfies the requirements specified in subsection (a), 

except paragraph (3) of such subsection; and 

(2) is between the ages of 16 and 25, inclusive, at the time 

the individual begins the term of service. 

(c) WAIVER.-The Corporation may waive the requirements of 

subsection (a)(4) with respect to an individual if the program in 

which the individual seeks to become a participant conducts an 

independent evaluation demonstrating that the individual is incapable of obtaining a high school diploma or its equivalent. 

SEC. 138. [42 U.S.C. 12592] SELECTION OF NATIONAL SERVICE PARTICIPANTS. 

(a) SELECTION PROCESS.-Subject to subsections (b) and (c) and 

section 131(£), the actual recruitment and selection of an individual 

to serve in a national service program receiving assistance under 

section 121 or to fill an approved national service position shall be 

conducted by the entity to which the assistance and approved national service positions are provided. 

(b) NONDISCRIMINATION AND NONPOLITICAL SELECTION OF PARTICIPANTS.-The recruitment and selection of individuals to serve 

in national service programs receiving assistance under section 121 

or to fill approved national service positions shall be consistent 

with the requirements of section 175. 

(c) SECOND TERM.-Acceptance into a national service program 

to serve a second term of service under section 139 shall only be 

available to individuals who perform satisfactorily in their first 

term of service. 

(d) RECRUITMENT AND PLACEMENT.-The Corporation and each 

State Commission shall establish a system to recruit individuals 

who desire to perform national service and to assist the placement 

of these individuals in approved national service positions, which 

may include positions available under titles I and II of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4951 et seq.). The Corporation and State Commissions shall disseminate information regarding available approved national service positions through cooperation with secondary schools, institutions of higher education, 

employment service offices, State vocational rehabilitation agencies 

within the meaning of the Rehabilitation Act of 1973 (29 U.S.C. 

701 et seq.) and other State agencies that primarily serve individuals with disabilities, and other appropriate entities, particularly 

those organizations that provide outreach to disadvantaged youths 

and youths who are individuals with disabilities. 

(e) NATIONAL LEADERSHIP POOL.- (1) SELECTION AND TRAINING.-From among individuals recruited under subsection (d), the Corporation may select individuals with significant leadership potential, as determined by 

the Corporation, to receive special training to enhance their 

leadership ability. The leadership training shall be provided by 

the Corporation directly or through a grant or contract. 

(2) EMPHASIS ON CERTAIN INDIVIDUALS.-ln selecting individuals to receive leadership training under this subsection, 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 139 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 68 

the Corporation shall make special efforts to select individuals 

who have served- (A) in the Peace Corps; 

(B) as VISTA volunteers; 

(C) as participants in national service programs receiving assistance under section 121, particularly those 

who were considered, at the time of their service, disadvantaged youth; 

(D) as participants in programs receiving assistance 

under subtitle D of the National and Community Service 

Act of 1990, as in effect on the day before the date of enactment of this subtitle; or 

(E) as members of the Armed Forces of the United 

States and who were honorably discharged from such service. 

(3) AsSIGNMENT.-At the request of a program that receives assistance under the national service laws, the Corporation may assign an individual who receives leadership training 

under paragraph (1) to work with the program in a leadership 

position and carry out assignments not otherwise performed by 

regular participants. An individual assigned to a program shall 

be considered to be a participant of the program. 

(f) EVALUATION OF SERVICE.-The Corporation shall issue regulations regarding the manner and criteria by which the service of 

a participant shall be evaluated to determine whether the service 

is satisfactory and successful for purposes of eligibility for a second 

term of service or a national service educational award. 

SEC.139. [42 U.S.C.12593] TERMS OF SERVICE. 

(a) IN GENERAL.-As a condition of receiving a national service 

education award under subtitle D, a participant in an approved national service position shall be required to perform full- or parttime national service for at least one term of service specified in 

subsection (b). 

(b) TERM OF SERVICE.- (1) FULL-TIME SERVICE.-An individual performing fulltime national service in an approved national service position 

shall agree to participate in the program sponsoring the position for not less than 1,700 hours during a period of not more 

than 1 year. 

(2) PART-TIME SERVICE.-Except as provided in paragraph 

(3), an individual performing part-time national service in an 

approved national service position shall agree to participate in 

the program sponsoring the position for not less than 900 

hours during a period of not more than 2 years. 

(3) REDUCTION IN HOURS OF PART-TIME SERVICE.-The Corporation may reduce the number of hours required to be served 

to successfully complete part-time national service to a level 

determined by the Corporation, except that any reduction in 

the required term of service shall include a corresponding reduction in the amount of any national service educational 

award that may be available under subtitle D with regard to 

that service. 

( 4) EXTENSION OF TERM FOR DISASTER PURPOSES.- May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

69 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 139 

(A) EXTENSION.-An individual in an approved national service position performing service directly related 

to disaster relief efforts may continue in a term of service 

for a period of 90 days beyond the period otherwise specified in, as appropriate, this subsection or section 153(d) or 

in section 104 of the Domestic Volunteer Service Act of 

1973 (42 u.s.c. 4954). 

(B) SINGLE TERM OF SERVICE.-A period of service performed by an individual in an originally-agreed to term of 

service and service performed under this paragraph shall 

constitute a single term of service for purposes of subsections (b)(l) and (c) of section 146. 

(C) BENEFITS.-An individual performing service 

under this paragraph may continue to receive a living allowance and other benefits under section 140 but may not 

receive an additional national service educational award 

under section 141. 

(c) RELEASE FROM COMPLETING TERM OF SERVICE.- (1) RELEASE AUTHORIZED.-A recipient of assistance under 

section 121 or a program sponsoring an approved national 

service position may release a participant from completing a 

term of service in the position- (A) for compelling personal circumstances as determined by the organization responsible for granting the release, if the participant has otherwise performed satisfactorily and has completed at least 15 percent of the term of 

service; or 

(B) for cause. 

(2) EFFECT OF RELEASE FOR COMPELLING CIRCUMSTANCES.-If a participant eligible for release under paragraph (l)(A) is serving in an approved national service position, the recipient of assistance under section 121 or a program 

sponsoring an approved national service position may elect- (A) to grant such release and certify the participant's 

eligibility for that portion of the national service educational award corresponding to the portion of the term of 

service actually completed, as provided in section 147(c); or 

(B) to permit the participant to temporarily suspend 

performance of the term of service for a period of up to 2 

years (and such additional period as the Corporation may 

allow for extenuating circumstances) and, upon completion 

of such period, to complete the remainder of the term of 

service and obtain the entire national service educational 

award. 

(3) EFFECT OF RELEASE FOR CAUSE.-A participant released 

for cause may not receive any portion of the national service 

educational award. 

SEC. 140. [42 U.S.C. 12594] LIVING ALLOWANCES FOR NATIONAL SERVICE PARTICIPANTS. 

(a) PROVISION OF LIVING ALLOWANCE.- (1) LIVING ALLOWANCE REQUIRED.-Subject to paragraphs 

(2) and (3), a national service program carried out using assistance provided under section 121 shall provide to each participant who participates on a full-time basis in the program a livMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 140 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 70 

ing allowance in an amount equal to or greater than the average annual subsistence allowance provided to VISTA volunteers under section 105 of the Domestic Volunteer Service Act 

of 1973 (42 U.S.C. 4955). 

(2) MAxIMUM LIVING ALLOWANCE.-Except as provided in 

subsection (c), the total amount of an annual living allowance 

that may be provided to a participant in a national service program shall not exceed 200 percent of the average annual subsistence allowance provided to VISTA volunteers under section 

105 of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 

4955). 

(3) FEDERAL WORK-STUDY STUDENTS.-The living allowance 

that may be provided under paragraph (1) to an individual 

whose term of service includes hours for which the individual 

receives a Federal work-study award under part C of title N 

of the Higher Education Act of 1965 (42 U.S.C. 2751 et seq.) 

shall be reduced by the amount of the individual's Federal 

work study award. 

(4) PRORATION OF LIVING ALLOWANCE.-The amount provided as a living allowance under this subsection shall be prorated in the case of a participant who is authorized to serve 

a term of service that is less than 12 months. 

(5) WAIVER OR REDUCTION OF LIVING ALLOWANCE.-The 

Corporation may waive or reduce the requirement of paragraph (1) with respect to such national service program if such 

program demonstrates that- (A) such requirement is inconsistent with the objectives of the program; and 

(B) the amount of the living allowance that will be 

provided to each full-time participant is sufficient to meet 

the necessary costs of living (including food, housing, and 

transportation) in the area in which the program is located. 

(6) EXEMPTION.-The requirement of paragraph (1) shall 

not apply to any program that was in existence on the date of 

the enactment of the National and Community Service Trust 

Act of 1993. 

(b) COVERAGE OF CERTAIN EMPLOYMENT-RELATED TAXES.-To 

the extent a national service program that receives assistance 

under section 121 is subject, with respect to the participants in the 

program, to the taxes imposed on an employer under sections 3111 

and 3301 of the Internal Revenue Code of 1986 (26 U.S.C. 3111, 

3301) and taxes imposed on an employer under a workmen's compensation act, the assistance provided to the program under section 

121 may be used to pay the taxes described in this subsection. 

(c) EXCEPTION FROM MAxlMUM LIVING ALLOWANCE FOR CERTAIN AssISTANCE.-A professional corps program described in section 122(c)(l)(D) that desires to provide a living allowance in excess 

of the maximum allowance authorized in subsection (a)(2) may still 

apply for such assistance, except that- ( 1) any assistance provided to the applicant under section 

121 may not be used to pay for any portion of the allowance; 

and 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

71 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 141 

(2) the national service program shall be operated directly 

by the applicant and shall meet urgent, unmet human, educational, environmental, or public safety needs, as determined 

by the Corporation. 

(d) HEALTH INSURANCE.-

(1) IN GENERAL.-A State or other recipient of assistance 

under section 121 shall provide or make available a basic 

health care policy for each full-time participant in a national 

service program carried out or supported using the assistance, 

if the participant is not otherwise covered by a health care policy. The Corporation shall establish minimum standards that 

all plans must meet in order to qualify for payment under this 

part, any circumstances in which an alternative health care 

policy may be substituted for the basic health care policy, and 

mechanisms to prohibit participants from dropping existing 

coverage. 

(2) OPTION.-A State or other recipient of assistance under 

section 121 may elect to provide from its own funds or make 

available a health care policy for participants that does not 

meet all of the standards established by the Corporation if the 

fair market value of such policy is equal to or greater than the 

fair market value of a plan that meets the minimum standards 

established by the Corporation, and is consistent with other 

applicable laws. 

(e) CHILD CARE.-

(1) AVAILABILITY.-A State or other recipient of assistance 

under section 121 shall-

(A) make child care available for children of each fulltime participant who needs child care in order to participate in a national service program carried out or supported by the recipient using the assistance; or 

(B) provide a child care allowance to each full-time 

participant in a national service program who needs such 

assistance in order to participate in the program. 

(2) GUIDELINES.-The Corporation shall establish guidelines regarding the circumstances under which child care shall 

be made available under this subsection and the value of any 

allowance to be provided. 

(f) INDIVIDUALIZED SUPPORT SERVICES.-A State or other recipient of assistance under section 121 shall provide reasonable accommodation, including auxiliary aids and services (as defined in 

section 3(1) of the Americans with Disabilities Act of 1990 (42 

U.S.C. 12102(1))), based on the individualized need of a participant 

who is a qualified individual with a disability (as defined in section 

101(8) of such Act (42 U.S.C. 12111(8))). 

SEC. 141. [42 U.S.C. 12595] NATIONAL SERVICE EDUCATIONAL AWARDS. 

(a) ELIGIBILITY GENERALLY.-A participant in a national service program carried out using assistance provided to an applicant 

under section 121 shall be eligible for the national service educational award described in subtitle D if the participant- (1) serves in an approved national service position; and 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 145 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 72 

(2) satisfies the eligibility requirements specified in section 

146 with respect to service in that approved national service 

position. 

(b) SPECIAL RULE FOR VISTA VOLUNTEERS.-A VISTA volunteer who serves in an approved national service position shall be 

ineligible for a national service educational award if the VISTA volunteer accepts the stipend authorized under section 105(a)(l) of the 

Domestic Volunteer Service Act of 1973 (42 U.S.C. 4955(a)(l)). 

Subtitle D-National Service Trust and 

Provision of Educational Awards 

SEC. 145. [42 U.S.C. 12601] ESTABLISHMENT OF THE NATIONAL SERVICE TRUST. 

(a) ESTABLISHMENT.-There is established in the Treasury of 

the United States an account to be known as the National Service 

Trust. The Trust shall consist of- ( 1) from the amounts appropriated to the Corporation and 

made available to carry out this subtitle, such amounts as the 

Corporation may designate to be available for the payment of­

(A) national service educational awards, summer of 

service educational awards, and silver scholar educational 

awards; and 

(B) interest expenses pursuant to section 148(e); 

(2) any amounts received by the Corporation as gifts, bequests, devises, or otherwise pursuant to section 196(a)(2), if 

the terms of such donations direct that the donated amounts 

be deposited in the National Service Trust; 

(3) any amounts recovered by the Corporation pursuant to 

section 146A; and 

(4) the interest on, and proceeds from the sale or redemption of, any obligations held by the Trust. 

(b) INVESTMENT OF TRUST.-lt shall be the duty of the Secretary of the Treasury to invest in full the amounts appropriated 

to the Trust. Except as otherwise expressly provided in instruments concerning a gift, bequest, devise, or other donation and 

agreed to by the Corporation, such investments may be made only 

in interest-bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United 

States. For such purpose, such obligations may be acquired on 

original issue at the issue price or by purchase of outstanding obligations at the market price. Any obligation acquired by the Trust 

may be sold by the Secretary at the market price. 

(c) EXPENDITURES FROM TRUST.-Amounts in the Trust shall 

be available, to the extent provided for in advance by appropriation, for-

(1) payments of national service educational awards, summer of service educational awards, and silver scholar educational awards in accordance with section 148; and 

(2) payments of interest in accordance with section 148(e). 

(d) REPORTS TO THE AUTHORIZING COMMITTEES ON RECEIPTS 

AND EXPENDITURES.-Not later than March 1 of each year, the Corporation shall submit a report to the authorizing committees on the 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

73 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 146 

financial status of the Trust during the preceding fiscal year. Such 

report shall- ( 1) specify the amount deposited to the Trust from the 

most recent appropriation to the Corporation, the amount received by the Corporation as gifts, bequests, devises, or otherwise pursuant to section 196(a)(2) during the period covered by 

the report, and any amounts obtained by the Trust pursuant 

to subsection (a)(3); 

(2) identify the number of individuals who are currently 

performing service to qualify, or have qualified, for national 

service educational awards, summer of service educational 

awards, or silver scholar awards; 

(3) identify the number of individuals whose expectation to 

receive national service educational awards, summer of service 

educational awards, or silver scholar awards during the period 

covered by the report- (A) has been reduced pursuant to section 147(c); or 

(B) has lapsed pursuant to section 146(d); and 

( 4) estimate the number of additional approved national 

service positions, additional approved summer of service positions, and additional approved silver scholar positions that the 

Corporation will be able to make available on the basis of any 

accumulated surplus in the Trust above the amount required 

to provide national service educational awards, summer of 

service educational awards, or silver scholar awards to individuals identified under paragraph (2), including any amounts 

available as a result of the circumstances referred to in paragraph (3). 

SEC. 146. [42 U.S.C. 12602] INDIVIDUALS ELIGIBLE TO RECEIVE AN 

EDUCATIONAL AWARD FROM THE fflUST. 

(a) ELIGIBLE INDIVIDUALS.-An individual shall receive a national service educational award, summer of service educational 

award, or silver scholar educational award from the National Service Trust if the organization responsible for the individual's supervision in a national service program certifies that the individual- (!) met the applicable eligibility requirements for the approved national service position, approved silver scholar position, or approved summer of service position, as appropriate, in 

which the individual served; 

(2)(A) for a full-time or part-time national service educational award, successfully completed the required term of 

service described in subsection (b)(l) in the approved national 

service position; 

(B) for a partial educational award in accordance with section 139(c)- (i) satisfactorily performed prior to being granted a release for compelling personal circumstances under such 

section; and 

(ii) completed at least 15 percent of the required term 

of service described in subsection (b) for the approved national service position; 

(C) for a summer of service educational award, successfully 

completed the required term of service described in subsection 

(b)(2) in an approved summer of service position, as certified 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 146 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 74 

through a process determined by the Corporation through regulations consistent with section 138(£); or 

(D) for a silver scholar educational award, successfully 

completed the required term of service described in subsection 

(b)(3) in an approved silver scholar position, as certified 

through a process determined by the Corporation through regulations consistent with section 138(£); and 

(3) is a citizen or national of the United States or lawful 

permanent resident alien of the United States. 

(b) TERM OF SERVICE.-

(1) APPROVED NATIONAL SERVICE POSITION.-The term of 

service for an approved national service position shall not be 

less than the full- or part-time term of service specified in section 139(b). 

(2) APPROVED SUMMER OF SERVICE POSITION.-The term of 

service for an approved summer of service position shall not be 

less than 100 hours of service during the summer months. 

(3) APPROVED SILVER SCHOLAR POSITION.-The term of 

service for an approved silver scholar position shall be not less 

than 350 hours during a 1-year period. 

(c) LIMITATION ON RECEIPT OF NATIONAL SERVICE EDUCATIONAL AWARDS.-An individual may not receive, through national service educational awards and silver scholar educational 

awards, more than an amount equal to the aggregate value of 2 

such awards for full-time service. The value of summer of service 

educational awards that an individual receives shall have no effect 

on the aggregate value of the national service educational awards 

the individual may receive. 

(d) TIME FOR USE OF EDUCATIONAL AWARD.- (1) IN GENERAL.-Subject to paragraph (2), an individual 

eligible to receive a national service educational award or a silver scholar educational award under this section may not use 

such award after the end of the 7-year period beginning on the 

date the individual completes the term of service in an approved national service position or an approved silver scholar 

position, as applicable, that is the basis of the award. Subject 

to paragraph (2), an individual eligible to receive a summer of 

service educational award under this section may not use such 

award after the end of the 10-year period beginning on the 

date the individual completes the term of service in an approved summer of service position that is the basis of the 

award. 

(2) EXCEPTION.-The Corporation may extend the period 

within which an individual may use a national service educational award, summer of service educational award, or silver 

scholar educational award if the Corporation determines that 

the individual- (A) was unavoidably prevented from using the national service educational award, summer of service educational award, or silver scholar educational award during 

the original 7-year period, or 10-year period, as appropriate; or 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

75 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 146 

(B) performed another term of service in an approved 

national service position, approved summer of service position, or approved silver scholar position during that period. 

(3) TERM FOR TRANSFERRED EDUCATIONAL AWARDS.-For 

purposes of applying paragraphs (1) and (2)(A) to an individual 

who is eligible to receive an educational award as a designated 

individual (as defined in section 148(£)(8)), references to a 

seven-year period shall be considered to be references to a 10- year period that begins on the date the individual who transferred the educational award to the designated individual completed the term of service in the approved national service position or approved silver scholar position that is the basis of 

the award. 

(e) SUSPENSION OF ELIGIBILITY FOR DRUG-RELATED OFFENSES.-

(1) IN GENERAL.-An individual who, after qualifying 

under this section or under section 119(c)(8) as an eligible individual, has been convicted under any Federal or State law of 

the possession or sale of a controlled substance shall not be eligible to receive a national service educational award, a summer of service educational award, or a silver scholar educational award during the period beginning on the date of such 

conviction and ending after the interval specified in the following table: 

If convicted of: 

The possession of a controlled substance: Ineligibility period is: 

1st conviction .................................................................. . 1 year 

2nd conviction ................................................................ . 2 years 

3rd conviction ................................................................. . indefinite 

The sale of a controlled substance: 

1st conviction .................................................................. . 2 years 

2nd conviction ................................................................ . indefinite 

(2) REHABILITATION.-An individual whose eligibility has 

been suspended under paragraph (1) shall resume eligibility 

before the end of the period determined under such paragraph 

if the individual satisfactorily completes a drug rehabilitation 

program that complies with such criteria as the Corporation 

shall prescribe for purposes of this paragraph. 

(3) FIRST CONVICTIONS.-An individual whose eligibility 

has been suspended under paragraph (1) and is convicted of a 

first offense may resume eligibility before the end of the period 

determined under such paragraph if the individual demonstrates that he or she has enrolled or been accepted for enrollment in a drug rehabilitation program described in paragraph (2). 

( 4) DEFINITIONS.-As used in this subsection, the term 

"controlled substance" has the meaning given in section 102(6) 

of the Controlled Substances Act (21 U.S.C. 802(6)). 

(5) EFFECTIVE DATE.-This subsection shall be effective 

upon publication by the Corporation in the Federal Register of 

criteria prescribed under paragraph (2). 

(f) AUTHORITY To ESTABLISH DEMONSTRATION PROGRAMS.-The 

Corporation may establish by regulation demonstration programs 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 146A NATIONAL AND COMMUNITY SERVICE ACT OF 1990 76 

for the creation and evaluation of innovative volunteer and community service programs. 

SEC. 146A. [42 U.S.C. 12602a] CERTIFICATIONS OF SUCCESSFUL COMPLETION OF TERMS OF SERVICE. 

(a) CERTIFICATIONS.-ln making any authorized disbursement 

from the National Service Trust in regard to an eligible individual 

(including disbursement for a designated individual, as defined in 

section 148(f)(8), due to the service of an eligible individual) under 

section 146 who served in an approved national service position, an 

approved summer of service position, or an approved silver scholar 

position, the Corporation shall rely on a certification. The certification shall be made by the entity that selected the individual for 

and supervised the individual in the approved national service position in which such individual successfully completed a required 

term of service, in a national service program. 

(b) EFFECT OF ERRONEOUS CERTIFICATIONS.-If the Corporation determines that the certification under subsection (a) is erroneous or incorrect, the Corporation shall assess against the national service program a charge for the amount of any associated 

payment or potential payment from the National Service Trust. In 

assessing the amount of the charge, the Corporation shall consider 

the full facts and circumstances surrounding the erroneous or incorrect certification. 

SEC. 147. [42 U.S.C. 12603] DETERMINATION OF THE AMOUNT OF THE 

EDUCATIONAL AWARD. 

(a) AMOUNT FOR FULL-TIME NATIONAL SERVICE.-Except as 

provided in subsection (c), an individual described in section 146(a) 

who successfully completes a required term of full-time national 

service in an approved national service position shall receive a national service educational award having a value equal to the maximum amount of a Federal Pell Grant under section 401 of the 

Higher Education Act of 1965 (20 U.S.C. 1070a) that a student eligible for such Grant may receive in the aggregate (without regard 

to whether the funds are provided through discretionary or mandatory appropriations), for the award year for which the national 

service position is approved by the Corporation. 

(b) AMOUNT FOR PART-TIME NATIONAL SERVICE.-Except as 

provided in subsection (c), an individual described in section 146(a) 

who successfully completes a required term of part-time national 

service in an approved national service position shall receive a national service educational award having a value equal to 50 percent 

of value of the national service educational award determined 

under subsection (a). 

(c) AWARD FOR PARTIAL COMPLETION OF SERVICE.-If an individual serving in an approved national service position is released 

in accordance with section 139(c)(l)(A) from completing the fulltime or part-time term of service agreed to by the individual, the 

Corporation may provide the individual with that portion of the national service educational award approved for the individual that 

corresponds to the quantity of the term of service actually completed by the individual. 

(d) AMOUNT FOR SUMMER OF SERVICE.-An individual described in section 146(a) who successfully completes a required 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

77 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 148 

summer of service term shall receive a summer of service educational award having a value, for each of not more than 2 of such 

terms of service, equal to $500 (or, at the discretion of the Chief 

Executive Officer, equal to $750 in the case of a participant who 

is economically disadvantaged). 

(e) AMOUNT FOR SILVER SCHOLARS.-An individual described in 

section 146(a) who successfully completes a required silver scholar 

term shall receive a silver scholar educational award having a 

value of $1,000. 

SEC. 148. [42 U.S.C. 12604] DISBURSEMENT OF EDUCATIONAL AWARDS. 

(a) IN GENERAL.-Amounts in the Trust shall be available--- ( !) to repay student loans in accordance with subsection 

(b); 

(2) to pay all or part of the cost of attendance or other educational expenses at an institution of higher education in accordance with subsection (c); 

(3) to pay expenses incurred in participating in an approved school-to-work program in accordance with subsection 

(d); 

( 4) to pay expenses incurred in enrolling in an educational 

institution or training establishment that is approved under 

chapter 36 of title 38, United States Code, or other applicable 

provisions of law, for offering programs of education, apprenticeship, or on-job training for which educational assistance 

may be provided by the Secretary of Veterans Affairs; and 

(5) to pay interest expenses in accordance with regulations 

prescribed pursuant to subsection (e). 

(b) USE OF EDUCATIONAL AWARD To REPAY OUTSTANDING STUDENT LOANS.- (1) APPLICATION BY ELIGIBLE INDIVIDUALS.-An eligible individual under section 146 who desires to apply the national 

service educational award of the individual, an eligible individual under section 146(a) who served in a summer of service 

program and desires to apply that individual's summer of service educational award, or an eligible individual under section 

146(a) who served in a silver scholar program and desires to 

apply that individual's silver scholar educational award, to the 

repayment of qualified student loans shall submit, in a manner 

prescribed by the Corporation, an application to the Corporation that-

(A) identifies, or permits the Corporation to identify 

readily, the holder or holders of such loans; 

(B) indicates, or permits the Corporation to determine 

readily, the amounts of principal and interest outstanding 

on the loans; 

(C) specifies, if the outstanding balance is greater than 

the amount disbursed under paragraph (2), which of the 

loans the individual prefers to be paid by the Corporation; 

and 

(D) contains or is accompanied by such other information as the Corporation may require. 

(2) DISBURSEMENT OF REPAYMENTS.-Upon receipt of an 

application from an eligible individual of an application that 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 148 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 78 

complies with paragraph (1), the Corporation shall, as promptly as practicable consistent with paragraph (5), disburse the 

amount of the national service educational award, the summer 

of service educational award, or the silver scholar educational 

award, as applicable, that the eligible individual has earned. 

Such disbursement shall be made by check or other means that 

is payable to the holder of the loan and requires the endorsement or other certification by the eligible individual. 

(3) APPLICATION OF DISBURSED AMOUNTS.-If the amount 

disbursed under paragraph (2) is less than the principal and 

accrued interest on any qualified student loan, such amount 

shall be applied according to the specified priorities of the individual. 

( 4) REPORTS BY HOLDERS.-Any holder receiving a loan 

payment pursuant to this subsection shall submit to the Corporation such information as the Corporation may require to 

verify that such payment was applied in accordance with this 

subsection and any regulations prescribed to carry out this 

subsection. 

(5) NOTIFICATION OF INDIVIDUAL.-The Corporation upon 

disbursing the national service educational award, the summer 

of service educational award, or the silver scholar educational 

award, as applicable, shall notify the individual of the amount 

paid for each outstanding loan and the date of payment. 

(6) AUTHORITY TO AGGREGATE PAYMENTS.-The Corporation may, by regulation, provide for the aggregation of payments to holders under this subsection. 

(7) DEFINITION OF QUALIFIED STUDENT LOANS.-As used in 

this subsection, the term "qualified student loans" means- (A) any loan made, insured, or guaranteed pursuant to 

title IV of the Higher Education Act of 1965 (20 U.S.C. 

1070 et seq.), other than a loan to a parent of a student 

pursuant to section 428B of such Act (20 U.S.C. 1078--2); 

(B) any loan made pursuant to title VII or VIII of the 

Public Health Service Act (42 U.S.C. 292a et seq.); and 

(C) any loan (other than a loan described in subparagraph (A) or (B)) determined by an institution of higher 

education to be necessary to cover a student's educational 

expenses and made, insured, or guaranteed by- (i) an eligible lender, as defined in section 435 of 

the Higher Education Act of 1965 (20 U.S.C. 1085); 

(ii) the direct student loan program under part D 

of title IV of such Act (20 U.S.C. 1087a et seq.); 

(iii) a State agency; or 

(iv) a lender otherwise determined by the Corporation to be eligible to receive disbursements from the 

National Service Trust. 

(8) DEFINITION OF HOLDER.-As used in this subsection, 

the term "holder" with respect to any eligible loan means the 

original lender or, if the loan is subsequently sold, transferred, 

or assigned to some other person, and such other person acquires a legally enforceable right to receive payments from the 

borrower, such other person. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

79 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 148 

(c) USE OF EDUCATIONAL AWARDS To PAY CURRENT EDUCATIONAL EXPENSES.- (1) APPLICATION BY ELIGIBLE INDMDUAL.-An eligible individual under section 146 who desires to apply the individual's 

national service educational award, an eligible individual 

under section 146(a) who desires to apply the individual's summer of service educational award, or an eligible individual 

under section 146(a) who served in a silver scholar program 

and desires to apply that individual's silver scholar educational 

award, to the payment of current full-time or part-time educational expenses shall, on a form prescribed by the Corporation, submit an application to the institution of higher education in which the student will be enrolled that contains such 

information as the Corporation may require to verify the individual's eligibility. 

(2) SUBMISSION OF REQUESTS FOR PAYMENT BY INSTITUTIONS.-An institution of higher education that receives one or 

more applications that comply with paragraph (1) shall submit 

to the Corporation a statement, in a manner prescribed by the 

Corporation, that- (A) identifies each eligible individual filing an application under paragraph (1) for a disbursement of the individual's national service educational award, summer of service educational award, or silver scholar educational award, 

as applicable, under this subsection; 

(B) specifies the amounts for which such eligible individuals are, consistent with paragraph (6), qualified for 

disbursement under this subsection; 

(C) certifies that- (i) the institution of higher education has in effect 

a program participation agreement under section 487 

of the Higher Education Act of 1965 (20 U.S.C. 1094); 

(ii) the institution's eligibility to participate in any 

of the programs under title IV of such Act (20 U.S.C. 

1070 et seq.) has not been limited, suspended, or terminated; and 

(iii) individuals using national service educational 

awards, summer of service educational awards, or silver scholar educational awards, as applicable, received 

under this subtitle to pay for educational costs do not 

comprise more than 15 percent of the total student 

population of the institution; and 

(D) contains such provisions concerning financial compliance as the Corporation may require. 

(3) DISBURSEMENT OF PAYMENTS.-Upon receipt of a statement from an institution of higher education that complies 

with paragraph (2), the Corporation shall, subject to paragraph 

(4), disburse the total amount of the national service educational awards summer of service educational awards, or silver scholar educational awards for which eligible individuals 

who have submitted applications to that institution under 

paragraph (1) are scheduled to receive. Such disbursement 

shall be made by check or other means that is payable to the 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 148 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 80 

institution and requires the endorsement or other certification 

by the eligible individual. 

(4) MULTIPLE DISBURSEMENTS REQUIRED.-The total 

amount required to be disbursed to an institution of higher 

education under paragraph (3) for any period of enrollment 

shall be disbursed by the Corporation in 2 or more installments, none of which exceeds 1⁄2 of such total amount. The interval between the first and second such installment shall not 

be less than 1⁄2 of such period of enrollment, except as necessary to permit the second installment to be paid at the beginning of the second semester, quarter, or similar division of 

such period of enrollment. 

(5) REFUND RULES.-The Corporation shall, by regulation, 

provide for the refund to the Corporation (and the crediting to 

the national service educational award, summer of service educational award, or silver scholar educational award, as applicable, of an eligible individual) of amounts disbursed to institutions for the benefit of eligible individuals who withdraw or 

otherwise fail to complete the period of enrollment for which 

the assistance was provided. Such regulations shall be consistent with the fair and equitable refund policies required of 

institutions pursuant to section 484B of the Higher Education 

Act of 1965 (20 U.S.C. 1091b). Amounts refunded to the Trust 

pursuant to this paragraph may be used by the Corporation to 

fund additional approved national service positions under subtitle C, additional approved summer of service positions, and 

additional approved silver scholar positions. 

(6) MAxlMUM AWARD.-The portion of an eligible individual's total available national service educational award, summer of service educational award, or silver scholar educational 

award that may be disbursed under this subsection for any period of enrollment shall not exceed the difference between- (A) the eligible individual's cost of attendance and 

other educational expenses for such period of enrollment, 

determined in accordance with section 4 72 of the Higher 

Education Act of 1965 (20 U.S.C. 108711); and 

(B) the student's estimated financial assistance for 

such period under part A of title IV of such Act (20 U.S.C. 

1070 et seq.). 

(d) USE OF EDUCATIONAL AWARD To PARTICIPATE IN APPROVED 

SCHOOL-TO-WORK PROGRAMS.-The Corporation shall by regulation 

provide for the payment of national service educational awards, 

summer of service educational awards, and silver scholar educational awards to permit eligible individuals to participate in 

school-to-work programs approved by the Secretaries of Labor and 

Education. 

(e) INTEREST PAYMENTS DURING FORBEARANCE ON LOAN REPAYMENT.-The Corporation shall provide by regulation for the payment on behalf of an eligible individual of interest that accrues 

during a period for which such individual has obtained forbearance 

in the repayment of a qualified student loan (as defined in subsection (b)(7)), if the eligible individual successfully completes the 

individual's required term of service (as determined under section 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

81 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 148 

146(b)). Such regulations shall be prescribed after consultation 

with the Secretary of Education. 

(f) TRANSFER OF EDUCATIONAL AWARDS.- (1) IN GENERAL.-An individual who is eligible to receive 

a national service educational award or silver scholar educational award due to service in a program described in paragraph (2) may elect to receive the award (in the amount described in the corresponding provision of section 147) and 

transfer the award to a designated individual. Subsections (b), 

(c), and (d) shall apply to the designated individual in lieu of 

the individual who is eligible to receive the national service 

educational award or silver scholar educational award, except 

that amounts refunded to the account under subsection (c)(5) 

on behalf of a designated individual may be used by the Corporation to fund additional placements in the national service 

program in which the eligible individual who transferred the 

national service educational award or silver scholar educational award participated for such award. 

(2) CONDITIONS FOR TRANSFER.-An educational award 

may be transferred under this subsection if- (A)(i) the award is a national service educational 

award for service in a national service program that receives a grant under subtitle C; and 

(ii) before beginning the term of service involved, the 

eligible individual is age 55 or older; or 

(B) the award is a silver scholarship educational 

award under section 198C(a). 

(3) MODIFICATION OR REVOCATION.- (A) IN GENERAL.-An individual transferring an educational award under this subsection may, on any date on 

which a portion of the educational award remains unused, 

modify or revoke the transfer of the educational award 

with respect to that portion. 

(B) NOTICE.-A modification or revocation of the transfer of an educational award under this paragraph shall be 

made by the submission of written notice to the Corporation. 

(4) PROHIBITION ON TREATMENT OF TRANSFERRED AWARD AS 

MARITAL PROPERTY.-An educational award transferred under 

this subsection may not be treated as marital property, or the 

asset of a marital estate, subject to division in a divorce or 

other civil proceeding. 

(5) DEATH OF TRANSFEROR.-The death of an individual 

transferring an educational award under this subsection shall 

not affect the use of the educational award by the child, foster 

child, or grandchild to whom the educational award is transferred if such educational award is transferred prior to the 

death of the individual. 

(6) PROCEDURES TO PREVENT WASTE, FRAUD, OR ABUSE.­

The Corporation shall establish requirements to prevent waste, 

fraud, or abuse in connection with the transfer of an educational award and to protect the integrity of the educational 

award under this subsection. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 149 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 82 

(7) TECHNICAL ASSISTANCE.-The Corporation may, as appropriate, provide technical assistance, to individuals and eligible entities carrying out national service programs, concerning 

carrying out this subsection. 

(8) DEFINITION OF A DESIGNATED INDMDUAL.-ln this subsection, the term "designated individual" is an individual- (A) whom an individual who is eligible to receive a national service educational award or silver scholar educational award due to service in a program described in 

paragraph (2) designates to receive the educational award; 

(B) who meets the eligibility requirements of paragraphs (3) and (4) of section 146(a); and 

(C) who is a child, foster child, or grandchild of the individual described in subparagraph (A). 

(g) EXCEPTION.-With the approval of the Chief Executive Officer, an approved national service program funded under section 

121, may offer participants the option of waiving their right to receive a national service educational award, summer of service educational award, or silver scholar educational award, as appropriate, 

in order to receive an alternative post-service benefit funded by the 

program entirely with non-Federal funds. 

(h) DEFINITION OF INSTITUTION OF HIGHER EDUCATION.-Notwithstanding section 101 of this Act, for purposes of this section 

the term "institution of higher education" has the meaning provided by section 102 of the Higher Education Act of 1965. 

SEC. 149. [42 U.S.C. 12606] APPROVAL PROCESS FOR APPROVED POSITIONS. 

(a) TIMING AND RECORDING REQUIREMENTS.- (1) IN GENERAL.-Notwithstanding subtitles C, D, and H, 

and any other provision of law, in approving a position as an 

approved national service position, an approved summer of 

service position, or an approved silver scholar position, the 

Corporation- (A) shall approve the position at the time the Corporation- (i) enters into an enforceable agreement with an 

individual participant to serve in a program carried 

out under subtitle E of title I of this Act, section 198B 

or 198C(a), or under title I of the Domestic Volunteer 

Service Act of 1973 (42 U.S.C. 4951 et seq.), a summer 

of service program described in section 119(c)(8), or a 

silver scholarship program described in section 

198C(a); or 

(ii) except as provided in clause (i), awards a grant 

to (or enters into a contract or cooperative agreement 

with) an entity to carry out a program for which such 

a position is approved under section 123; and 

(B) shall record as an obligation an estimate of the net 

present value of the national service educational award, 

summer of service educational award, or silver scholar 

educational award associated with the position, based on a 

formula that takes into consideration historical rates of enrollment in such a program, and of earning and using national service educational awards, summer of service eduMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

83 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 149 

cational awards, or silver scholar educational awards, as 

appropriate, for such a program and remain available. 

(2) FORMULA.-ln determining the formula described in 

paragraph (l)(B), the Corporation shall consult with the Director of the Congressional Budget Office. 

(3) CERTIFICATION REPORT.-The Chief Executive Officer of 

the Corporation shall annually prepare and submit to the authorizing committees a report that contains a certification that 

the Corporation is in compliance with the requirements of 

paragraph (1). 

(4) APPROVAL.-The requirements of this subsection shall 

apply to each approved national service position, approved 

summer of service position, or approved silver scholarship position that the Corporation approves- (A) during fiscal year 2010; and 

(B) during any subsequent fiscal year. 

(b) RESERVE ACCOUNT.- (1) ESTABLISHMENT AND CONTENTS.- (A) ESTABLISHMENT.-Notwithstanding subtitles C, D, 

and H, and any other provision of law, within the National 

Service Trust established under section 145, the Corporation shall establish a reserve account. 

(B) CONTENTS.-To ensure the availability of adequate 

funds to support the awards of approved national service 

positions, approved summer of service positions, and approved silver scholar positions, for each fiscal year, the 

Corporation shall place in the account-- (i) during fiscal year 2010, a portion of the funds 

that were appropriated for fiscal year 2010 or a previous fiscal year under section 501 of this Act or section 501 of the Domestic Volunteer Service Act of 1973 

(42 U.S.C. 5081), were made available to carry out 

subtitle C, D, or E of this title, section 198B or 

198C(a), subtitle A of title I of the Domestic Volunteer 

Service Act of 1973, or summer of service programs 

described in section 119(c)(8), and remain available; 

and 

(ii) during fiscal year 2011 or a subsequent fiscal 

year, a portion of the funds that were appropriated for 

that fiscal year under section 501 of this Act or section 

501 of the Domestic Volunteer Service Act of 1973 (42 

U.S.C. 5081), were made available to carry out subtitle 

C, D, or E of this title, section 198B or 198C(a), subtitle A of title I of the Domestic Volunteer Service Act 

of 1973, or summer of service programs described in 

section 119(c)(8), and remain available. 

(2) OBLIGATION.-The Corporation shall not obligate the 

funds in the reserve account until the Corporation- (A) determines that the funds will not be needed for 

the payment of national service educational awards associated with previously approved national service positions, 

summer of service educational awards associated with previously approved summer of service positions, and silver 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 151 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 84 

scholar educational awards associated with previously approved silver scholar positions; or 

(B) obligates the funds for the payment of national 

service educational awards for such previously approved 

national service positions, summer of service educational 

awards for such previously approved summer of service positions, or silver scholar educational awards for such previously approved silver scholar positions, as applicable. 

(c) AUDITS.-The accounts of the Corporation relating to the 

appropriated funds for approved national service positions, approved summer of service positions, and approved silver scholar positions, and the records demonstrating the manner in which the 

Corporation has recorded estimates described in subsection 

(a)(l)(B) as obligations, shall be audited annually by independent 

certified public accountants or independent licensed public accountants certified or licensed by a regulatory authority of a State or 

other political subdivision of the United States in accordance with 

generally accepted auditing standards. A report containing the results of each such independent audit shall be included in the annual report required by subsection (a)(3). 

(d) AVAILABILITY OF AMOUNTS.-Except as provided in subsection (b), all amounts included in the National Service Trust 

under paragraphs (1), (2), and (3) of section 145(a) shall be available for payments of national service educational awards, summer 

of service educational awards, or silver scholar educational awards 

under section 148. 

Subtitle E-National Civilian Community 

Corps 

SEC.151. [42 U.S.C.12611] PURPOSE. 

It is the purpose of this subtitle to authorize the operation of, 

and support for, residential and other service programs that combine the best practices of civilian service with the best aspects of 

military service, including leadership and team building, to meet 

national and community needs. The needs to be met under such 

programs include those needs related to-- (1) natural and other disasters; 

(2) infrastructure improvement; 

(3) environmental stewardship and conservation; 

( 4) energy conservation; and 

(5) urban and rural development. 

SEC. 152. [42 U.S.C. 12612] ESTABLISHMENT OF NATIONAL CIVJLIAN 

COMMUNITY CORPS PROGRAM. 

(a) IN GENERAL.-The Corporation may establish the National 

Civilian Community Corps Program to carry out the purpose of this 

subtitle. 

(b) PROGRAM COMPONENTS.-Under the National Civilian Community Corps Program authorized by subsection (a), the members 

of a National Civilian Community Corps shall receive training and 

perform service in at least one of the following two program components: 

(1) A national service program. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

85 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 155 

(2) A summer national service program. 

(c) RESIDENTIAL COMPONENTS.-Both programs referred to in 

subsection (b) may include a residential component. 

SEC.153. [42 U.S.C.12613] NATIONAL SERVICE PROGRAM. 

(a) IN GENERAL.-Under the national service program component of the National Civilian Community Corps Program authorized by section 152(a), eligible young people shall work in teams on 

National Civilian Community Corps projects. 

(b) ELIGIBLE PARTICIPANTS.-A person shall be eligible for selection for the national service program if the person- ( 1) is, or will be, at least 18 years of age on or before December 31 of the calendar year in which the individual enrolls 

in the program, but is not more than 24 years of age as of the 

date the individual begins participating in the program; and 

(2) is a high school graduate or has not received a high 

school diploma or its equivalent. 

(c) DIVERSE BACKGROUNDS OF PARTICIPANTS.-ln selecting persons for the national service program, the Director shall endeavor 

to ensure that participants are from economically, geographically, 

and ethnically diverse backgrounds. The Director shall take appropriate steps, including through outreach and recruitment activities, 

to increase the percentage of participants in the program who are 

disadvantaged youth to 50 percent of all participants by year 2012. 

The Director shall report to the authorizing committees biennially 

on such steps, any challenges faced, and the annual participation 

rates of disadvantaged youth in the program. 

(d) PERIOD OF PARTICIPATION.-Persons desiring to participate 

in the national service program shall enter into an agreement with 

the Director to participate in the Corps for a period of not less than 

nine months and not more than one year, as specified by the Director, and may renew the agreement for not more than one additional such period. 

SEC. 154. [42 U.S.C. 12614] SUMMER NATIONAL SERVICE PROGRAM. 

(a) IN GENERAL.-Under the summer national service program 

of the National Civilian Community Corps Program authorized by 

section 152(a), a diverse group of youth aged 14 through 18 years 

who are from urban or rural areas shall work in teams on National 

Civilian Community Corps projects. 

(b) NECESSARY PARTICIPANTS.-To the extent practicable, at 

least 50 percent of the participants in the summer national service 

program shall be from economically and ethnically diverse backgrounds, including youth who are in foster care. 

(c) SEASONAL PROGRAM.-The training and service of Corps 

members under the summer national service program in each year 

shall be conducted after April 30 and before October 1 of that year. 

SEC.155. [42 U.S.C.12615] NATIONAL CIVILIAN COMMUNITY CORPS. 

(a) DIRECTOR-Upon the establishment of the National Civilian Community Corps Program, the National Civilian Community 

Corps shall be under the direction of the Director appointed pursuant to section 159(c)(l). 

(b) MEMBERSHIP IN NATIONAL CIVILIAN COMMUNITY 

CORPS.- May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 155 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 86 

(1) PARTICIPANTS TO BE MEMBERS.-Persons selected to 

participate in the national service program or the summer national service program components of the Program shall become members of the National Civilian Community Corps. 

(2) SELECTION OF MEMBERS.-The Director or the Director's designee shall select individuals for membership in the 

Corps. 

(3) APPLICATION FOR MEMBERSHIP.-To be selected to become a Corps member an individual shall submit an application to the Director or to any other office as the Director may 

designate, at such time, in such manner, and containing such 

information as the Director shall require. At a minimum, the 

application shall contain information about the work experience of the applicant and sufficient information to enable the 

Director, or the campus director of the appropriate campus, to 

determine whether selection of the applicant for membership 

in the Corps is appropriate. 

( 4) TEAM LEADERS.- (A) IN GENERAL.-The Director may select individuals 

with prior supervisory or service experience to be team 

leaders within units in the National Civilian Community 

Corps, to perform service that includes leading and supervising teams of Corps members. Each team leader shall be 

selected without regard to the age limitation under section 

153(b). 

(B) RIGHTS AND BENEFITS.-A team leader shall be 

provided the same rights and benefits applicable to other 

Corps members, except that the Director may increase the 

limitation on the amount of the living allowance under section 158(b) by not more than 10 percent for a team leader. 

(c) ORGANIZATION OF CORPS INTO UNITS.- (1) UNITS.-The Corps shall be divided into permanent 

units. Each Corps member shall be assigned to a unit. 

(2) UNIT LEADERS.-The leader of each unit shall be selected from among persons in the permanent cadre established 

pursuant to section 159(c)(2). The designated leader shall accompany the unit throughout the period of agreed service of 

the members of the unit. 

(d) CAMPUSES.- (1) UNITS TO BE ASSIGNED TO CAMPUSES.-The units of the 

Corps shall be grouped together as appropriate in campuses for 

operational, support, and boarding purposes. The Corps campus for a unit shall be in a facility or central location established as the operational headquarters and boarding place for 

the unit. Corps members may be housed in the campuses. 

(2) CAMPUS DIRECTOR-There shall be a campus director 

for each campus. The campus director is the head of the campus. 

(3) ELIGIBLE SITE FOR CAMPUS.-A campus shall be cost effective and may, upon the completion of a feasibility study, be 

located in a facility referred to in section 162(c). 

(e) DISTRIBUTION OF UNITS AND CAMPUSES.-The Director shall 

ensure that the Corps units and campuses are cost effective and 

are distributed in urban areas and rural areas such that each 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

87 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 156 

Corps unit in a region can be easily deployed for disaster and emergency response to such region. 

(f) STANDARDS OF CONDUCT.- (1) IN GENERAL.-The campus director of each campus 

shall establish and enforce standards of conduct to promote 

proper moral and disciplinary conditions in the campus. 

(2) SANCTIONS.-Under procedures prescribed by the Director, the campus director of a campus may- (A) transfer a member of the Corps in that campus to 

another unit or campus if the campus director determines 

that the retention of the member in the member's unit or 

in the campus director's campus will jeopardize the enforcement of the standards or diminish the opportunities of 

other Corps members in that unit or campus, as the case 

may be; or 

(B) dismiss a member of the Corps from the Corps if 

the campus director determines that retention of the member in the Corps will jeopardize the enforcement of the 

standards or diminish the opportunities of other Corps 

members. 

(3) APPEALS.-Under procedures prescribed by the Director, a member of the Corps may appeal to the Director a determination of a campus director to transfer or dismiss the member. The Director shall provide for expeditious disposition of 

appeals under this paragraph. 

SEC.156. [42 U.S.C.12616] TRAINING. 

(a) COMMON CURRICULUM.-Each member of the National Civilian Community Corps shall be provided with between three and 

six weeks of training that includes a comprehensive service-learning curriculum designed to promote team building, discipline, leadership, work, training, citizenship, and physical conditioning. The 

Director shall ensure that, to the extent practicable, each member 

of the Corps is trained in CPR, first aid, and other skills related 

to disaster preparedness and response. 

(b) ADVANCED SERVICE TRAINING.- (1) NATIONAL SERVICE PROGRAM.-Members of the Corps 

participating in the national service program shall receive advanced training in basic, project-specific skills that the members will use in performing their community service projects, 

including a focus on energy conservation, environmental stewardship or conservation, infrastructure improvement, urban 

and rural development, or disaster preparedness needs, as appropriate. 

(2) SUMMER NATIONAL SERVICE PROGRAM.-Members of the 

Corps participating in the summer national service program 

shall not receive advanced training referred to in paragraph (1) 

but, to the extent practicable, may receive other training. 

(c) TRAINING PERSONNEL.- (1) IN GENERAL.-Members of the cadre appointed under 

section 159(c)(2) shall provide the training for the members of 

the Corps, including, as appropriate, advanced service training 

and ongoing training throughout the members' periods of 

agreed service. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 157 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 88 

(2) COORDINATION WITH OTHER ENTITIES.-Members of the 

cadre may provide, either directly or through grants, contracts, 

or cooperative agreements, the advanced service training referred to in subsection (b)(l) in coordination with vocational or 

technical schools, other employment and training providers, existing youth service programs, other qualified individuals, or 

organizations with expertise in training youth, including disadvantaged youth, in the skills described in such subsection. 

(d) FACILITIES.-The training may be provided at installations 

and other facilities of the Department of Defense, and at National 

Guard facilities, identified under section 162(c). 

SEC.157. [42 U.S.C.12617] SERVICE PROJECTS. 

(a) PROJECT REQUIREMENTS.-The service projects carried out 

by the National Civilian Community Corps shall- (1) meet an identifiable public need, with specific emphasis 

on projects in support of infrastructure improvement, energy 

conservation, and urban and rural development; 

(2) emphasize the performance of community service activities that provide meaningful community benefits and opportunities for service-learning and skills development; 

(3) to the maximum extent practicable, encourage work to 

be accomplished in teams of diverse individuals working together; and 

( 4) include continued education and training in various 

technical fields. 

(b) PROJECT PROPOSALS.- (1) DEVELOPMENT OF PROPOSALS.- (A) SPECIFIC EXECUTIVE DEPARTMENTS.-Upon the establishment of the Program, the Secretary of Agriculture, 

the Secretary of the Interior, the Secretary of Housing and 

Urban Development, the Administrator of the Environmental Protection Agency, the Administrator of the Federal Emergency Management Agency, the Secretary of Energy, the Secretary of Transportation, and the Chief of the 

Forest Service shall develop proposals for Corps projects 

pursuant to guidance which the Director shall prescribe. 

(B) OTHER SOURCES.-Other public and private organizations and agencies, including community-based entities 

and representatives of local communities in the vicinity of 

a Corps campus, may develop proposals for projects for a 

Corps campus. Corps members shall also be encouraged to 

identify projects for the Corps. 

(2) CONSULTATION REQUIREMENTS.-The process for developing project proposals under paragraph (1) shall include consultation with the Corporation, representatives of local communities, State Commissions, and persons involved in other youth 

service programs. 

(c) PROJECT SELECTION, ORGANIZATION, AND PERFORMANCE.- (1) SELECTION.-The campus director of a Corps campus 

shall select the projects to be performed by the members of the 

Corps assigned to the units in that campus. The campus director shall select projects from among the projects proposed or 

identified pursuant to subsection (b). 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

89 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 158 

(2) INNOVATIVE LOCAL ARRANGEMENTS FOR PROJECT PERFORMANCE.-The Director shall encourage campus directors to 

negotiate with representatives of local communities, to the extent practicable, innovative arrangements for the performance 

of projects. The arrangements may provide for cost-sharing and 

the provision by the communities of in-kind support and other 

support. 

SEC. 158. [42 U.S.C. 12618] AUTHORIZED BENEFITS FOR CORPS MEMBERS. 

(a) IN GENERAL.-The Director shall provide for members of 

the National Civilian Community Corps to receive benefits authorized by this section. 

(b) LIVING ALLOWANCE.-The Director shall provide a living allowance to members of the Corps for the period during which such 

members are engaged in training or any activity on a Corps 

project. The Director shall establish the amount of the allowance 

at any amount not in excess of the amount equal to 100 percent 

of the poverty line that is applicable to a family of two (as defined 

by the Office of Management and Budget and revised annually in 

accordance with section 673(2) of the Community Services Block 

Grant Act (42 U.S.C. 9902(2)). 

(c) OTHER AUTHORIZED BENEFITS.-While receiving training or 

engaging in service projects as members of the National Civilian 

Community Corps, members may be provided the following benefits, as the Director determines appropriate: 

(1) Allowances for travel expenses, personal expenses, and 

other expenses. 

(2) Quarters. 

(3) Subsistence. 

( 4) Transportation. 

(5) Equipment. 

(6) Uniforms. 

(7) Supplies. 

(8) Other services determined by the Director to be consistent with the purposes of the Program. 

(d) SUPPORTIVE SERVICES.-As the Director determines appropriate, the Director may provide each member of the Corps with 

health care services, child care services, counseling services, and 

other supportive services. 

(e) POST SERVICE BENEFITS.-Upon completion of the agreed 

period of service with the Corps, a member shall elect to receive 

the educational assistance under subsection (f) or the cash benefit 

under subsection (g). 

(f) NATIONAL SERVICE EDUCATIONAL AWARDS.-A Corps member who successfully completes a period of agreed service in the 

Corps may receive the national service educational award described 

in subtitle D if the Corps member- ( 1) serves in an approved national service position; and 

(2) satisfies the eligibility requirements specified in section 

146 with respect to service in that approved national service 

position. 

(g) ALTERNATIVE BENEFIT.-If a Corps member who successfully completes a period of agreed service in the Corps is ineligible 

for the national service educational award described in subtitle D, 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 159 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 90 

the Director may provide for the provision of a suitable alternative 

benefit for the Corps member. 

SEC.159. [42 U.S.C.12619] ADMINISTRATIVE PROVISIONS. 

(a) SUPERVISION.-The Chief Executive Officer shall monitor 

and supervise the administration of the National Civilian Community Corps Program authorized to be established under section 152. 

In carrying out this section, the Chief Executive Officer shall- ( 1) approve such guidelines, including those recommended 

by the Board, for the design, selection of members, and operation of the National Civilian Community Corps as the Chief 

Executive Officer considers appropriate; 

(2) evaluate the progress of the Corps in providing a basis 

for determining the matters set forth in section 151; and 

(3) carry out any other activities determined appropriate 

by the Board. 

(b) MONITORING AND COORDINATION.-The Chief Executive Officer shall-

( 1) monitor the overall operation of the National Civilian 

Community Corps; 

(2) coordinate the activities of the Corps with other youth 

service programs administered by the Corporation; and 

(3) carry out any other activities determined appropriate 

by the Board. 

(c) STAFF.- (1) DIRECTOR.- (A) APPOINTMENT.-Upon the establishment of the 

Program, the Chief Executive Officer shall appoint a Director. The Director may be selected from among retired commissioned officers of the Armed Forces of the United 

States. 

(B) DUTIES.-The Director shall- (i) design, develop, and administer the National 

Civilian Community Corps programs; 

(ii) be responsible for managing the daily operations of the Corps; and 

(iii) report to the Chief Executive Officer. 

(C) AUTHORITY TO EMPLOY STAFF.-The Director may 

employ such staff as is necessary to carry out this subtitle. 

The Director shall, to the maximum extent practicable, utilize in staff positions personnel who are detailed from departments and agencies of the Federal Government and, to 

the extent the Director considers appropriate, shall request 

and accept detail of personnel from such departments and 

agencies in order to do so. 

(2) PERMANENT CADRE.- (A) ESTABLISHMENT.-The Chief Executive Officer 

sha11 establish a permanent cadre that includes the Director and other appointed supervisors and training instructors for National Civilian Community Corps programs. 

(B) APPOINTMENT.-The Chief Executive Officer sha11 

consider the recommendations of the Director in appointing the other members of the permanent cadre. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

91 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 159 

(C) EMPLOYMENT CONSIDERATIONS.-ln appointing individuals to cadre positions, the Chief Executive Officer 

shall-

(i) give consideration to retired, discharged, and 

other inactive members and former members of the 

Armed Forces recommended under section 162(b); 

(ii) give consideration to former VISTA, Peace 

Corps, and youth service program personnel; 

(iii) ensure that the cadre is comprised of males 

and females of diverse ethnic, economic, professional, 

and geographic backgrounds; 

(iv) give consideration to retired and other former 

law enforcement, fire, rescue, and emergency personnel, and other individuals with backgrounds in disaster preparedness, relief, and recovery; and 

(v) consider applicants' experience in other youth 

service programs. 

(D) COMMUNITY SERVICE CREDIT.-Service as a member of the cadre shall be considered as a community service opportunity for purposes of section 4403 of the National 

Defense Authorization Act for Fiscal Year 1993 and as employment with a public service or community service organization for purposes of section 4464 of that Act. 

(E) TRAINING.-The Director shall provide to other 

members of the permanent cadre appropriate training in 

youth development techniques, including techniques for 

working with and enhancing the development of disadvantaged youth, and the principles of service-learning. All 

members of the permanent cadre shall be required to participate in the training. 

(3) INAPPLICABILITY OF CERTAIN CIVIL SERVICE LAWS.-The 

Director, other members of the permanent cadre, and the other 

staff personnel shall be appointed without regard to the provisions of title 5, United States Code, governing appointments in 

the competitive service. The rates of pay of such persons may 

be established without regard to the provisions of chapter 51 

and subchapter III of chapter 53 of such title. In the case of 

a member of the permanent cadre who was recommended for 

appointment in accordance with 162(b)(l) 1 and is entitled to 

retired or retainer pay, section 5532 of title 5, United States 

Code, shall not apply to reduce the member's retired or retainer pay by reason of the member being paid as a member 

of the cadre. 

(4) VOLUNTARY SERVICES.-Notwithstanding any other provision of law, the Director may accept the voluntary services 

of individuals. While away from their homes or regular places 

of business on the business of the Corps, such individuals may 

be allowed travel expenses, including per diem in lieu of subsistence, in the same amounts and to the same extent, as authorized under section 5703 of title 5, United States Code, for 

persons employed intermittently in Federal Government service. 

1 So in law. The term "section" should appear before "162(b)(l)''. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 160 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 92 

SEC. 160. [42 U.S.C. 12620] STATUS OF CORPS MEMBERS AND CORPS 

PERSONNEL UNDER FEDERAL LAW. 

(a) IN GENERAL.-Except as otherwise provided in this section, 

members of the National Civilian Community Corps shall not, by 

reason of their status as such members, be considered Federal employees or be subject to the provisions of law relating to Federal 

employment. 

(b) WORK-RELATED IN.ruRIES.- (1) IN GENERAL.-For purposes of subchapter I of chapter 

81 of title 5, United States Code, relating to the compensation 

of Federal employees for work injuries, members of the Corps 

shall be considered as employees of the United States within 

the meaning of the term "employee", as defined in section 8101 

of such title. 

(2) SPECIAL RULE.-ln the application of the provisions of 

subchapter I of chapter 81 of title 5, United States Code, to a 

person referred to in paragraph (1), the person shall not be 

considered to be in the performance of duty while absent from 

the person's assigned post of duty unless the absence is authorized in accordance with procedures prescribed by the Director. 

(c) TORT CLAIMS PROCEDURE.-A member of the Corps shall be 

considered an employee of the United States for purposes of chapter 171 of title 28, United States Code, relating to tort claims liability and procedure. 

SEC. 161. [42 U.S.C. 12621] CONTRACT AND GRANT AUTHORITY. 

(a) PROGRAMS.-The Director may, by contract or grant, provide for any public or private organization to carry out the National 

Civilian Community Corps program. 

(b) EQUIPMENT AND FACILITIES.- (1) FEDERAL AND NATIONAL GUARD PROPERTY.-The Director shall enter into agreements, as necessary, with the Secretary of Defense, the Governor of a State, territory or commonwealth, or the commanding general of the District of Columbia National Guard, as the case may be, to utilize- (A) equipment of the Department of Defense and 

equipment of the National Guard; and 

(B) Department of Defense facilities and National 

Guard facilities identified pursuant to section 162(c). 

(2) OTHER PROPERTY.-The Director may enter into contracts or agreements for the use of other equipment or facilities 

to the extent practicable to train and house members of the 

National Civilian Community Corps and leaders of Corps 

units. 

SEC. 162. [42 U.S.C. 12622] RESPONSIBILITIES OF DEPARTMENT OF DEFENSE. 

(a) LIAISON OFFICE.- (1) ESTABLISHMENT.-Upon the establishment of the Program, the Secretary of Defense shall establish an office to provide for liaison between the Secretary and the National Civilian Community Corps. 

(2) DUTIES.-The office shall- (A) in order to assist in the recruitment of personnel 

for appointment in the permanent cadre, make available to 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

93 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 163 

the Director information in the registry established by section 1143a of title 10, United States Code; and 

(B) provide other assistance in the coordination of Department of Defense activities with the Corps. 

(b) CORPS CADRE.- (1) LIST OF RECOMMENDED PERSONNEL.-Upon the establishment of the Program, the Secretary of Defense, in consultation with the liaison office established under subsection (a) 

shall develop a list of individuals from which individuals may 

be selected for appointment by the Director in the permanent 

cadre of Corps personnel. Such personnel shall be selected from 

among members and former members of the Armed Forces referred to in section 151(3) who are commissioned officers, noncommissioned officers, former commissioned officers, or former 

noncommissioned officers. 

(2) RECOMMENDATIONS REGARDING GRADE AND PAY.-The 

Secretary of Defense shall recommend to the Director an appropriate rate of pay for each person recommended for the 

cadre pursuant to this subsection. 

(3) CONTRIBUTION FOR RETIRED MEMBER'S PAY.-If a listed 

individual receiving retired or retainer pay is appointed to a 

position in the cadre and the rate of pay for that individual is 

established at the amount equal to the difference between the 

active duty pay and allowances which that individual would receive if ordered to active duty and the amount of the individual's retired or retainer pay, the Secretary of Defense shall 

pay, by transfer to the Corporation from amounts available for 

pay of active duty members of the Armed Forces, the amount 

equal to 50 percent of that individual's rate of pay for service 

in the cadre. 

(c) FACILITIES.-Upon the establishment of the Program, the 

Secretary of Defense shall identify military installations and other 

facilities of the Department of Defense and, in consultation with 

the adjutant generals of the State National Guards, National 

Guard facilities that may be used, in whole or in part, by the National Civilian Community Corps for training or housing Corps 

members. The Secretary of Defense shall carry out this subsection 

in consultation with the liaison office established under subsection 

(a). 

(d) INFORMATION REGARDING CORPS.-The Secretary of Defense 

may permit Armed Forces recruiters to inform potential applicants 

for the Corps regarding service in the Corps as an alternative to 

service in the Armed Forces. 

SEC. 163. [42 U.S.C. 12623] ADVISORY BOARD. 

(a) ESTABLISHMENT AND Plrn.POSE.-There shall be established 

a National Civilian Community Corps Advisory Board to advise the 

Director concerning the administration of this subtitle and to assist 

the Corps in responding rapidly and efficiently in times of natural 

and other disasters. The Advisory Board members shall help coordinate activities with the Corps as appropriate, including the mobilization of volunteers and coordination of volunteer centers to 

help local communities recover from the effects of natural and 

other disasters. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 164 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 94 

(b) MEMBERSHIP.-The Advisory Board shall be composed of 

the following members: 

(1) The Secretary of Labor. 

(2) The Secretary of Defense. 

(3) The Secretary of the Interior. 

( 4) The Secretary of Agriculture. 

(5) The Secretary of Education. 

(6) The Secretary of Housing and Urban Development. 

(7) The Chief of the National Guard Bureau. 

(8) The Administrator of the Federal Emergency Manage- ment Agency. 

(9) The Secretary of Transportation. 

(10) The Chief of the Forest Service. 

(11) The Administrator of the Environmental Protection 

Agency. 

(12) The Secretary of Energy. 

(13) Individuals appointed by the Director from among 

persons who are broadly representative of educational institutions, voluntary organizations, public and private organizations, youth, and labor unions. 

(14) The Chief Executive Officer. 

(c) INAPPLICABILITY OF TERMINATION REQUIREMENT.-Section 

14 of the Federal Advisory Committee Act (5 U.S.C. App.) shall not 

apply to the Advisory Board. 

SEC.164. [42 U.S.C.12624] EVALUATIONS. 

Pursuant to the provisions for evaluations conducted under 

section 179, and in particular subsection (g) of such section, the 

Corporation shall conduct periodic evaluations of the National Civilian Community Corps Program authorized under this subtitle. 

Upon completing each such evaluation, the Corporation shall transmit to the authorizing committees a report on the evaluation. 

SEC. 165. [42 U.S.C. 12626] DEFINITIONS. 

In this subtitle: 

(1) BOARD.-The term "Board" means the Board of Directors of the Corporation. 

(2) CAMPUS DIRECTOR.-The term "campus director", with 

respect to a Corps campus, means the head of the campus 

under section 155(d). 

(3) CORPS.-The term "Corps" means the National Civilian 

Community Corps required under section 155 as part of the 

National Civilian Community Corps Program. 

(4) CORPS CAMPUS.-The term "Corps campus" means the 

facility or central location established as the operational headquarters and boarding place for particular Corps units. 

(5) CORPS MEMBERS.-The term "Corps members" means 

persons receiving training and participating in projects under 

the National Civilian Community Corps Program. 

(6) DIRECTOR.-The term "Director" means the Director of 

the National Civilian Community Corps. 

(7) INSTITUTION OF HIGHER EDUCATION.-The term "institution of higher education" has the meaning given that term in 

section 101 of the Higher Education Act of 1965. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

95 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 165 

(8) PROGRAM.-The term "Program" means the National 

Civilian Community Corps Program 1 established pursuant to 

section 152. 

(9) SERVICE-LEARNING.-The term "service-learning'', with 

respect to Corps members, means a method- (A) under which Corps members learn and develop 

through active participation in thoughtfully organized 

service experiences that meet actual community needs; 

(B) that provides structured time for a Corps member 

to think, talk, or write about what the Corps member did 

and saw during an actual service activity; 

(C) that provides Corps members with opportunities to 

use newly acquired skills and knowledge in real life situations in their own communities; and 

(D) that helps to foster the development of a sense of 

caring for others, good citizenship, and civic responsibility. 

(10) UNIT.-The term "unit" means a unit of the Corps referred to in section 155(c). 

Subtitle F-Administrative Provisions 

SEC.171. [42 U.S.C.12631] FAMILY AND MEDICAL LEAVE. 

(a) PARTICIPANTS IN PRIVATE, STATE, AND LOCAL PROJECTS.­

For purposes of title I of the Family and Medical Leave Act of 1993 

(29 U.S.C. 2601 et seq.), if- (1) a participant has provided service for the period required by section 101(2)(A)(i) (29 U.S.C. 2611(2)(A)(i)), and has 

met the hours of service requirement of section 101(2)(A)(ii), of 

such Act with respect to a project authorized under the national service laws; and 

(2) the service sponsor of the project is an employer described in section 101(4) of such Act (other than an employing 

agency within the meaning of subchapter V of chapter 63 of 

title 5, United States Code), 

the participant shall be considered to be an eligible employee of the 

service sponsor. 

(b) PARTICIPANTS IN FEDERAL PROJECTS.-For purposes of subchapter V of chapter 63 of title 5, United States Code, if- (1) a participant has provided service for the period required by section 6381(1)(B) of such title with respect to a 

project; and 

(2) the service sponsor of the project is an employing agency within the meaning of such subchapter, 

the participant shall be considered to be an employee of the service 

sponsor. 

1 Section 1516(2)(F) of Public Law 111-13 provides for an amendment to paragraph (8) as follows: 

(F) in paragraph (8) (as so redesignated), by striking "The terms" and all that follows 

through "Demonstration Program" and inserting ''The term 'Program' means the National Civilian Community Corps Program"; and 

The amendment probably should have included the phrase ''the second place such term appears" after "and all that follows through 'Demonstration Program'". Such amendment was exe­ cuted through the second occurrence of ''Demonstration Program" in order to reflect the probable 

intent of Congress. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 172 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 96 

(c) TREATMENT OF ABSENCE.-The period of any absence of a 

participant from a service position pursuant to title I of the Family 

and Medical Leave Act of 1993 or subchapter V of chapter 63 of 

title 5, United States Code, shall not be counted toward the completion of the term of service of the participant under section 139 

of this Act. 

SEC.172. [42 U.S.C.12632] REPORTS. 

(a) STATE REPORTS.- (1) IN GENERAL.-Each State rece1vmg assistance under 

this title shall prepare and submit, to the Corporation, an annual report concerning the use of assistance provided under 

this title and the status of the national and community service 

programs that receive assistance under such title in such 

State. 

(2) LOCAL GRANTEES.-Each State may require local grantees that receive assistance under this title to supply such information to the State as is necessary to enable the State to complete the report required under paragraph (1), including a comparison of actual accomplishments with the goals established 

for the program, the number of participants in the program, 

the number of service hours generated, and the existence of 

any problems, delays or adverse conditions that have affected 

or will affect the attainment of program goals. 

(3) REPORT DEMONSTRATING COMPLIANCE.- (A) IN GENERAL.-Each State receiving assistance 

under this title shall include information in the report required under paragraph (1) that demonstrates the compliance of the State with the provisions of this Act, including 

section 177. 

(B) LOCAL GRANTEES.-Each State may require local 

grantees to supply such information to the State as is necessary to enable the State to comply with the requirement 

of paragraph (1). 

(4) AVAILABILITY OF REPORT.-Reports submitted under 

paragraph (1) shall be made available to the public on request. 

(b) REPORT TO CONGRESS BY CORPORATION 

(1) IN GENERAL.-Not later than 120 days after the end of 

each fiscal year, the Corporation shall prepare and submit, to 

the authorizing committees, the Committee on Appropriations 

of the House of Representatives, and the Committee on Appropriations of the Senate 1, a report concerning the programs 

that receive assistance under the national service laws. 

(2) CONTENT.-Reports submitted under paragraph (1) 

shall contain a summary of the information contained in the 

State reports submitted under subsection (a), and shall reflect 

the findings and actions taken as a result of any evaluation 

conducted by the Corporation. 

(c) REPORT TO CONGRESS BY SECRETARY OF DEFENSE.-

1 Section 1602(1) of Public Law 111-13 amends subsection (b)(l) by striking "appropriate au­ thorizing and appropriations Committees of Congress" and inserting "authorizing committees, 

the Committee on Appropriations of the House of Representatives, and the Committee on Appropriations of the Senate". Such amendment should have struck appropriate authorizing and appropriation Committees of Congress" which was executed above to reflect the probable intent 

of Congress. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

97 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 175 

(1) STUDY.-The Secretary of Defense shall annually conduct a study of the effect of the programs carried out under 

this title on recruitment for the Armed Forces. 

(2) REPORT.-The Secretary of Defense shall annually submit a report to the authorizing committees, the Committee on 

Armed Services of the House of Representatives, and the Committee on Armed Services of the Senate containing the findings 

of the study described in paragraph (1) and such recommendations for legislative and administrative reform as the Secretary 

may determine to be appropriate. 

SEC.173. [42 U.S.C.12633] SUPPLEMENTATION. 

(a) IN GENERAL.-Assistance provided under this title shall be 

used to supplement the level of State and local public funds expended for services of the type assisted under this title in the previous fiscal year. 

(b) AGGREGATE EXPENDITURE.-Subsection (a) shall be satisfied, with respect to a particular program, if the aggregate expenditure for such program for the fiscal year in which services are to 

be provided will not be less than the aggregate expenditure for 

such program in the previous fiscal year, excluding the amount of 

Federal assistance provided and any other amounts used to pay the 

remainder of the costs of programs assisted under this title. 

SEC.174. [42 U.S.C.12634] PROfilBITION ON USE OF FUNDS. 

(a) PROHIBITED UsEs.-No assistance made available under a 

grant under this title shall be used to provide religious instruction, 

conduct worship services, or engage in any form of proselytization. 

(b) POLITICAL ACTIVITY.-Assistance provided under this title 

shall not be used by program participants and program staff to-­

(1) assist, promote, or deter union organizing; or 

(2) finance, directly or indirectly, any activity designed to 

influence the outcome of an election to Federal office or the 

outcome of an election to a State or local public office. 

(c) CONTRACTS OR COLLECTIVE BARGAINING AGREEMENTS.-A 

program that receives assistance under this title shall not impair 

existing contracts for services or collective bargaining agreements. 

(d) REFERRALS FOR FEDERAL ASSISTANCE.-A program may not 

receive assistance under the national service laws for the sole purpose of referring individuals to Federal assistance programs or 

State assistance programs funded in part by the Federal Government. 

SEC.175. [42 U.S.C.12635] NONDISCRIMINATION. 

(a) IN GENERAL.- (1) BASIS.-An individual with responsibility for the operation of a project that receives assistance under this title shall 

not discriminate against a participant in, or member of the 

staff of, such project on the basis of race, color, national origin, 

sex, age, or political affiliation of such participant or member, 

or on the basis of disability, if the participant or member is a 

qualified individual with a disability. 

(2) DEFINITION.-As used in paragraph (1), the term 

"qualified individual with a disability" has the meaning given 

the term in section 101(8) of the Americans with Disabilities 

Act of 1990 (42 U.S.C. 12111(8)). 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 176 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 98 

(b) FEDERAL FINANCIAL AsSISTANCE.-Any assistance provided 

under this title shall constitute Federal financial assistance for 

purposes of title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d 

et seq.), title IX of the Education Amendments of 1972 (20 U.S.C. 

1681 et seq.), section 504 of the Rehabilitation Act of 1973 (29 

U.S.C. 794), and the Age Discrimination Act of 1975 (42 U.S.C. 

6101 et seq.), and shall constitute Federal financial assistance to 

an education program or activity for purposes of the Education 

Amendments of 1972 (20 U.S.C. 1681 et seq.). 

(c) RELIGIOUS DISCRIMINATION.- (1) IN GENERAL.-Except as provided in paragraph (2), an 

individual with responsibility for the operation of a project that 

receives assistance under this title shall not discriminate on 

the basis of religion against a participant in such project or a 

member of the staff of such project who is paid with funds received under this title. 

(2) EXCEPTION.-Paragraph (1) shall not apply to the employment, with assistance provided under this title, of any 

member of the staff, of a project that receives assistance under 

this title, who was employed with the organization operating 

the project on the date the grant under this title was awarded. 

(d) RULES AND REGULATIONS.-The Chief Executive Officer 

shall promulgate rules and regulations to provide for the enforcement of this section that shall include provisions for summary suspension of assistance for not more than 30 days, on an emergency 

basis, until notice and an opportunity to be heard can be provided. 

SEC. 176. [42 U.S.C. 12636] NOTICE, HEARING, AND GRIEVANCE PROCE- DURES. 

(a) IN GENERAL.- (1) SUSPENSION OF PAYMENTS.-The Corporation may in 

accordance with the provisions of this title, suspend or terminate payments under a contract or grant providing assistance 

under this title, or revoke the designation of positions, related 

to the grant or contract, as approved national service positions, 

whenever the Corporation determines there is a material failure to comply with this title or the applicable terms and conditions of any such grant or contract issued pursuant to this 

title. 

(2) PROCEDURES TO ENSURE ASSISTANCE.-The Corporation 

shall prescribe procedures to ensure that- (A) assistance provided under this title shall not be 

suspended for failure to comply with the applicable terms 

and conditions of this title except, in emergency situations, 

a suspension may be granted for 1 or more periods of 30 

days not to exceed a total of 90 days; and 

(B) assistance provided under this title shall not be 

terminated or revoked for failure to comply with applicable 

terms and conditions of this title unless the recipient of 

such assistance has been afforded reasonable notice and 

opportunity for a full and fair hearing. 

(b) HEARINGS.-Hearings or other meetings that may be necessary to fulfill the requirements of this section shall be held at locations convenient to the recipient of assistance under this title. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

99 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 176 

(c) TRANSCRIPT OR RECORDING.-A transcript or recording shall 

be made of a hearing conducted under this section and shall be 

available for inspection by any individual. 

(d) STATE LEGISLATION.-Nothing in this title shall be construed to preclude the enactment of State legislation providing for 

the implementation, consistent with this title, of the programs administered under this title. 

(e) CONSTRUCTION.-Nothing in this title shall be construed to 

link performance of service with receipt of Federal student financial assistance, other than assistance provided pursuant to this Act. 

(f) GRIEVANCE PROCEDURE.- (1) IN GENERAL.-An entity that receives assistance under 

this title shall establish and maintain a procedure for the filing 

and adjudication of grievances from participants, labor organizations, and other interested individuals concerning projects 

that receive assistance under this title, including grievances 

regarding proposed placements of such participants in such 

projects. 

(2) DEADLINE FOR GRIEVANCES.-Except for a grievance 

that alleges fraud or criminal activity, a grievance shall be 

made not later than 1 year after the date of the alleged occurrence of the event that is the subject of the grievance. 

(3) DEADLINE FOR HEARING AND DECISION.- (A) HEARING.-A hearing on any grievance conducted 

under this subsection shall be conducted not later than 30 

days after the filing of such grievance. 

(B) DECISION.-A decision on any such grievance shall 

be made not later than 60 days after the filing of such 

grievance. 

(4) ARBITRATION.­

(A) IN GENERAL.- (i) JOINTLY SELECTED ARBITRATOR.-ln the event 

of a decision on a grievance that is adverse to the 

party who filed such grievance, or 60 days after the filing of such grievance if no decision has been reached, 

such party shall be permitted to submit such grievance to binding arbitration before a qualified arbitrator who is jointly selected and independent of the 

interested parties. 

(ii) APPOINTED ARBITRATOR.-If the parties cannot 

agree on an arbitrator, the Chief Executive Officer 

shall appoint an arbitrator from a list of qualified arbitrators within 15 days after receiving a request for 

such appointment from one of the parties to the grievance. 

(B) DEADLINE FOR PROCEEDING.-An arbitration proceeding shall be held not later than 45 days after the request for such arbitration proceeding, or, if the arbitrator 

is appointed by the Chief Executive Officer in accordance 

with subparagraph (A)(ii), not later than 30 days after the 

appointment of such arbitrator. 

(C) DEADLINE FOR DECISION.-A decision concerning a 

grievance shall be made not later than 30 days after the 

date such arbitration proceeding begins. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 177 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 100 

(D) COST.- (i) IN GENERAL.-Except as provided in clause (ii), 

the cost of an arbitration proceeding shall be divided 

evenly between the parties to the arbitration. 

(ii) EXCEPTION.-If a participant, labor organization, or other interested individual described in paragraph (1) prevails under a binding arbitration proceeding, the State or local applicant described in paragraph (1) that is a party to such grievance shall pay 

the total cost of such proceeding and the attorneys' 

fees of such participant, labor organization, or individual, as the case may be. 

(5) PROPOSED PLACEMENT.-If a grievance is filed regarding a proposed placement of a participant in a project that receives assistance under this title, such placement shall not be 

made unless the placement is consistent with the resolution of 

the grievance pursuant to this subsection. 

(6) REMEDIES.-Remedies for a grievance filed under this 

subsection include--- (A) suspension of payments for assistance under this 

title; 

(B) termination of such payments; 

(C) prohibition of the placement described in paragraph (5); 

(D) in a case in which the grievance is filed by an individual applicant or participant- (i) the applicant's selection or the participant's reinstatement, as the case may be; and 

(ii) other changes in the terms and conditions of 

service applicable to the individual; and 

(E) in a case in which the grievance involves a violation of subsection (a) or (b) of section 177 and the employer 

of the displaced employee is the recipient of assistance 

under this title- (i) reinstatement of the displaced employee to the 

position held by such employee prior to displacement; 

(ii) payment of lost wages and benefits of the displaced employee; 

(iii) reestablishment of other relevant terms, conditions, and privileges of employment of the displaced 

employee; and 

(iv) such equitable relief as is necessary to correct 

any violation of subsection (a) or (b) of section 177 or 

to make the displaced employee whole. 

(7) ENFORCEMENT.-Suits to enforce arbitration awards 

under this section may be brought in any district court of the 

United States having jurisdiction of the parties, without regard 

to the amount in controversy and without regard to the citizenship of the parties. 

SEC. 177. [42 U.S.C. 12637] NONDUPLICATION AND NONDISPLACEMENT. 

(a) NONDUPLICATION.- (1) IN GENERAL.-Assistance provided under the national 

service laws shall be used only for a program that does not duMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

101 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 177 

plicate, and is in addition to, an activity otherwise available in 

the locality of such program. 

(2) PRNATE NONPROFIT ENTITY.-Assistance made available under the national service laws shall not be provided to 

a private nonprofit entity to conduct activities that are the 

same or substantially equivalent to activities provided by a 

State or local government agency that such entity resides in, 

unless the requirements of subsection (b) are met. 

(b) NONDISPLACEMENT.- (1) IN GENERAL.-An employer shall not displace an employee, position, or volunteer (other than a participant under 

the national service laws), including partial displacement such 

as reduction in hours, wages, or employment benefits, as a result of the use by such employer of a participant in a program 

receiving assistance under the national service laws. 

(2) SERVICE OPPORTUNITIES.-A service opportunity shall 

not be created under the national service laws that will infringe in any manner on the promotional opportunity of an employed individual. 

(3) LIMITATION ON SERVICES.- (A) DUPLICATION OF SERVICES.-A participant in a program receiving assistance under the national service laws 

shall not perform any services or duties or engage in activities that would otherwise be performed by an employee 

as part of the assigned duties of such employee. 

(B) SUPPLANTATION OF HIRING.-A participant in any 

program receiving assistance under the national service 

laws shall not perform any services or duties, or engage in 

activities, that- (i) will supplant the hiring of employed workers; 

or 

(ii) are services, duties, or activities with respect 

to which an individual has recall rights pursuant to a 

collective bargaining agreement or applicable personnel procedures. 

(C) DUTIES FORMERLY PERFORMED BY ANOTHER EMPLOYEE.-A participant in any program receiving assistance under the national service laws shall not perform 

services or duties that have been performed by or were assigned to any- (i) presently employed worker; 

(ii) employee who recently resigned or was discharged; 

(iii) employee who- (!) is subject to a reduction in force; or 

(II) has recall rights pursuant to a collective 

bargaining agreement or applicable personnel procedures; 

(iv) employee who is on leave (terminal, temporary, vacation, emergency, or sick); or 

(v) employee who is on strike or who is being 

locked out. 

(c) LABOR MARKET INFORMATION.-The Secretary of Labor 

shall make available to the Corporation and to any program agency 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 178 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 102 

under this title such labor market information as is appropriate for 

use in carrying out the purposes of this title. 

(d) TREATMENT OF BENEFITS.-Allowances, earnings, and payments to individuals participating in programs that receive assistance under this title shall not be considered to be income for the 

purposes of determining eligibility for and the amount of income 

transfer and in-kind aid furnished under any Federal or federally 

assisted program based on need, other than as provided under the 

Social Security Act (42 U.S.C. 301 et seq.). 

(e) STANDARDS OF CONDUCT.-Programs that receive assistance 

under this title shall establish and stringently enforce standards of 

conduct at the program site to promote proper moral and disciplinary conditions. 

(f) PARENTAL INVOLVEMENT.- (1) IN GENERAL.-Programs that receive assistance under 

the national service laws shall consult with the parents or 

legal guardians of children in developing and operating programs that include and serve children. 

(2) PARENTAL PERMISSION.-Programs that receive assistance under the national service laws shall, before transporting 

minor children, provide the children's parents with the reason 

for the transportation and obtain the parents' written permission for such transportation, consistent with State law. 

SEC. 178. [42 U.S.C. 12638] STATE COMMISSIONS ON NATIONAL AND 

COMMUNITY SERVICE. 

(a) EXISTENCE REQUIRED.- (1) STATE COMMISSION.-Except as provided in paragraph 

(2), to be eligible to receive a grant or allotment under subtitle 

B or C or to receive a distribution of approved national service 

positions under subtitle C, a State shall maintain a State Commission on National and Community Service that satisfies the 

requirements of this section. 

(2) ALTERNATIVE ADMINISTRATIVE ENTITY.-The chief executive officer of a State may apply to the Corporation for approval to use an alternative administrative entity to carry out 

the duties otherwise entrusted to a State Commission under 

this Act. The chief executive officer shall ensure that any alternative administrative entity used in lieu of a State Commission provides for the individuals described in paragraph (1), 

and some of the individuals described in paragraph (2), of subsection (c) to play a significant policymaking role in carrying 

out the duties otherwise entrusted to a State Commission, including the submission of applications on behalf of the State 

under section 130. 

(b) APPOINTMENT AND SIZE.-Except as provided in subsection 

(c)(3), the members of a State Commission for a State shall be appointed by the chief executive officer of the State. A State Commission shall consist of not fewer than 15, and not more than 25, voting members, and any ex officio nonvoting members, as described 

in paragraph (3) or (4) of subsection (c). 

(c) COMPOSITION AND MEMBERSHIP.- (1) REQUIRED MEMBERS.-The State Commission for a 

State shall include as voting members at least one of each of 

the following individuals: 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

103 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 178 

(A) An individual with expertise in the educational, 

training, and development needs of youth, particularly disadvantaged youth. 

(B) An individual with experience in promoting the involvement of older adults in service and voluntarism. 

(C) A representative of community-based agencies or 

community-based organizations within the State. 

(D) The head of the State educational agency. 

(E) A representative of local governments in the State. 

(F) A representative of local labor organizations in the 

State. 

(G) A representative of business. 

(H) An individual between the ages of 16 and 25 who 

is a participant or supervisor in a program. 

(I) A representative of a national service program described in subsection (a), (b), or (c) of section 122. 

(J) A representative of the volunteer sector. 

(2) SOURCES OF OTHER MEMBERS.-The State Commission 

for a State may include as voting members the following individuals: 

(A) Members selected from among local educators. 

(B) Members selected from among experts in the delivery of human, educational, environmental, or public safety 

services to communities and persons. 

(C) Representatives of Indian tribes. 

(D) Members selected from among out-of-school youth 

or other at-risk youth. 

(E) Representatives of entities that receive assistance 

under the Domestic Volunteer Service Act of 1973 (42 

U.S.C. 4950 et seq.). 

(3) CORPORATION REPRESENTATIVE.-The representative of 

the Corporation designated under section 195(c) for a State 

shall be an ex officio nonvoting member of the State Commission or alternative administrative entity for that State. 

(4) Ex OFFICIO STATE REPRESENTATIVES.-The chief executive officer of a State may appoint, as ex officio nonvoting 

members of the State Commission for the State, representatives selected from among officers and employees of State agencies operating community service, youth service, education, social service, senior service, and job training programs. 

(5) LIMITATION ON NUMBER OF STATE EMPLOYEES AS MEMBERS.-The number of voting members of a State Commission 

selected under paragraph (1) or (2) who are officers or employees of the State may not exceed 25 percent (reduced to the 

nearest whole number) of the total membership of the State 

Commission. 

(d) MISCELLANEOUS MATTERS.- (1) MEMBERSHIP BALANCE.-The chief executive officer of a 

State shall ensure, to the maximum extent practicable, that 

the membership of the State Commission for the State is diverse with respect to race, ethnicity, age, gender, and disability 

characteristics. Not more than 50 percent of the voting members of a State Commission, plus one additional member, may 

be from the same political party. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 178 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 104 

(2) TERMS.-Each member of the State Commission for a 

State shall serve for a term of 3 years, except that the chief 

executive officer of a State shall initially appoint a portion of 

the members to terms of 1 year and 2 years. 

(3) VACANCIES.-If a vacancy occurs on a State Commission, a new member shall be appointed by the chief executive 

officer of the State and serve for the remainder of the term for 

which the predecessor of such member was appointed. The vacancy shall not affect the power of the remaining members to 

execute the duties of the State Commission. 

(4) COMPENSATION.-A member of a State Commission or 

alternative administrative entity shall not receive any additional compensation by reason of service on the State Commission or alternative administrative entity, except that the State 

may authorize the reimbursement of travel expenses, including 

a per diem in lieu of subsistence, in the same manner as other 

employees serving intermittently in the service of the State. 

(5) CHAIRPERSON.-The voting members of a State Commission shall elect one of the voting members to serve as chairperson of the State Commission. 

(6) LIMITATION ON MEMBER PARTICIPATION.- (A) GENERAL LIMITATION.-Except as provided in subparagraph (B), a voting member of the State Commission 

(or of an alternative administrative entity) shall not participate in the administration of the grant program (including any discussion or decision regarding the provision 

of assistance or approved national service positions, or the 

continuation, suspension, or termination of such assistance 

or such positions, to any program or entity) described in 

subsection (e)(9) if- (i) a grant application relating to such program is 

pending before the Commission (or such entity); and 

(ii) the application was submitted by a program or 

entity of which such member is, or in the 1-year period 

before the submission of such application was, an officer, director, trustee, full-time volunteer, or employee. 

(B) EXCEPTION.-If, as a result of the operation of sub- paragraph (A), the number of voting members of the Commission (or of such entity) is insufficient to establish a 

quorum for the purpose of administering such program, 

then voting members excluded from participation by subparagraph (A) may participate in the administration of 

such program, notwithstanding the limitation in subparagraph (A), to the extent permitted by regulations issued 

under section 193A(b)(12) by the Corporation. 

(C) RULE OF CONSTRUCTION.-Subparagraph (A) shall 

not be construed to limit the authority of any voting member of the Commission (or of such entity) to participate 

in- (i) discussion of, and hearing and forums on- (1) the general duties, policies, and operations 

of the Commission (or of such entity); or 

(11) the general administration of such program; or 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

105 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 178 

(ii) similar general matters relating to the Commission (or such entity). 

(e) DUTIES OF A STATE COMMISSION.-The State Commission or 

alternative administrative entity for a State shall be responsible 

for the following duties: 

(1) Preparation of a national service plan for the State 

that- (A) is developed, through an open and public process 

(such as through regional forums, hearings, and other 

means) that provides for maximum participation and input 

from the private sector, organizations, and public agencies, 

using service and volunteerism as strategies to meet critical community needs, including service through programs 

funded under the national service laws; 

(B) covers a 3-year period, the beginning of which may 

be set by the State; 

(C) is subject to approval by the chief executive officer 

of the State; 

(D) includes measurable goals and outcomes for the 

State national service programs in the State consistent 

with the performance levels for national service programs 

as described in section 179(k); 

(E) ensures outreach to diverse community-based 

agencies that serve underrepresented populations, through 

established networks and registries at the State level, or 

through the development of such networks and registries; 

(F) provides for effective coordination of funding applications submitted by the State and other organizations 

within the State under the national service laws; 

(G) is updated annually, reflecting changes in practices and policies that will improve the coordination and 

effectiveness of Federal, State, and local resources for service and volunteerism within the State; 

(H) ensures outreach to, and coordination with, municipalities (including large cities) and county governments 

regarding the national service laws; and 

(I) contains such information as the State Commission 

considers to be appropriate or as the Corporation may require. 

(2) Preparation of the applications of the State under section 130 for financial assistance. 

(3) Assistance in the preparation of the application of the 

State educational agency for assistance under section 113. 

( 4) Preparation of the application of the State under section 130 for the approval of service positions that include the 

national service educational award described in subtitle D. 

(5) Make recommendations to the Corporation with respect 

to priorities for programs receiving assistance under the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4950 et seq.). 

(6) Make technical assistance available to enable applicants for assistance under section 121- (A) to plan and implement service programs; and 

(B) to apply for assistance under the national service 

laws using, if appropriate, information and materials 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 178 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 106 

available through a clearinghouse established under section 198A. 

(7) Assistance in the provision of health care and child 

care benefits under section 140 to participants in national service programs that receive assistance under section 121. 

(8) Development of a State system for the recruitment and 

placement of participants in programs that receive assistance 

under the national service laws and dissemination of information concerning national service programs that receive such assistance or approved national service positions. 

(9) Administration of the grant program in support of national service programs that is conducted by the State using 

assistance provided to the State under section 121, including 

selection, oversight, and evaluation of grant recipients. 

(10) Development of projects, training methods, curriculum 

materials, and other materials and activities related to national service programs that receive assistance directly from 

the Corporation (to be made available in a case in which such 

a program requests such a project, method, material, or activity) or from the State using assistance provided under section 

121, for use by programs that request such projects, methods, 

materials, and activities. 

(f) RELIEF FROM ADMINISTRATIVE REQUIREMENTS.-Upon approval of a State plan submitted under subsection (e)(l), the Chief 

Executive Officer may waive for the State, or specify alternatives 

for the State to, administrative requirements (other than statutory 

provisions) otherwise applicable to grants made to States under the 

national service laws, including those requirements identified by 

the State as impeding the coordination and effectiveness of Federal, State, and local resources for service and volunteerism within 

the State. 

(g) STATE SERVICE PLAN FOR ADULTS AGE 55 OR OLDER.- (1) IN GENERAL.-Notwithstanding any other provision of 

this section, to be eligible to receive a grant or allotment under 

subtitle B or C or to receive a distribution of approved national 

service positions under subtitle C, a State shall work with appropriate State agencies and private entities to develop a comprehensive State service plan for service by adults age 55 or 

older. 

(2) MATTERS INCLUDED.-The State service plan shall include-

(A) recommendations for policies to increase service for 

adults age 55 or older, including how to best use such 

adults as sources of social capital, and how to utilize their 

skills and experience to address community needs; 

(B) recommendations to the State agency (as defined 

in section 102 of the Older Americans Act of 1965 ( 42 

U.S.C. 3002)) on- (i) a marketing outreach plan to businesses; and 

(ii) outreach to-- (1) nonprofit organizations; 

(II) the State educational agency; 

(III) institutions of higher education; and 

(IV) other State agencies; 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

107 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 178 

(C) recommendations for civic engagement and 

multigenerational activities, such as- (i) early childhood education and care, family literacy, and after school programs; 

(ii) respite services for adults age 55 or older and 

caregivers; and 

(iii) transitions for older adults age 55 or older to 

purposeful work in their post-career lives; and 

(D) recommendations for encouraging the development 

of Encore service programs in the State. 

(3) KNOWLEDGE BASE.-The State service plan shall incorporate the current knowledge base (as of the time of the plan) 

regarding-

(A) the economic impact of the roles of workers age 55 

or older in the economy; 

(B) the social impact of the roles of such workers in 

the community; and 

(C) the health and social benefits of active engagement 

for adults age 55 or older. 

(4) PuBLICATION.-The State service plan shall be made 

available to the public and be transmitted to the Chief Executive Officer. 

(h) ACTMTY INELIGIBLE FOR ASSISTANCE.-A State Commission or alternative administrative entity may not directly carry out 

any national service program that receives assistance under section 

121. 

(i) DELEGATION.-Subject to such requirements as the Corporation may prescribe, a State Commission may delegate nonpolicymaking duties to a State agency or public or private nonprofit organization. 

(j) APPROVAL OF STATE COMMISSION OR ALTERNATIVE.- (!) SUBMISSION TO CORPORATION.-The chief executive officer for a State shall notify the Corporation of the establishment or designation of the State Commission or use of an alternative administrative entity for the State. The notification 

shall include a description of- (A) the composition and membership of the State Commission or alternative administrative entity; and 

(B) the authority of the State Commission or alternative administrative entity regarding national service activities carried out by the State. 

(2) APPROVAL OF ALTERNATIVE ADMINISTRATIVE ENTITY.­

Any designation of a State Commission or use of an alternative 

administrative entity to carry out the duties of a State Commission shall be subject to the approval of the Corporation, 

which shall not be unreasonably withheld. The Corporation 

shall approve an alternative administrative entity if such entity provides for individuals described in paragraph (1), and 

some of the individuals described in paragraph (2), of subsection (c) to play a significant policymaking role in carrying 

out the duties otherwise entrusted to a State Commission, including the duties described in paragraphs (1) through (4) of 

subsection (e). 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 178 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 108 

(3) REJECTION.-The Corporation may reject a State Commission if the Corporation determines that the composition, 

membership, or duties of the State Commission do not comply 

with the requirements of this section. The Corporation may reject a request to use an alternative administrative entity in 

lieu of a State Commission if the Corporation determines that 

the entity does not provide for the individuals described in 

paragraph (1), and some of the individuals described in paragraph (2), of subsection (c) to play a significant policymaking 

role as described in paragraph (2). If the Corporation rejects a 

State Commission or alternative administrative entity under 

this paragraph, the Corporation shall promptly notify the State 

of the reasons for the rejection. 

(4) RESUBMISSION AND RECONSIDERATION.-The Corporation shall provide a State notified under paragraph (3) with a 

reasonable opportunity to revise the rejected State Commission 

or alternative administrative entity. At the request of the 

State, the Corporation shall provide technical assistance to the 

State as part of the revision process. The Corporation shall 

promptly reconsider any resubmission of a notification under 

paragraph (1) or application to use an alternative administrative entity under paragraph (2). 

(5) SUBSEQUENT CHANGES.-This subsection shall also 

apply to any change in the composition or duties of a State 

Commission or an alternative administrative entity made after 

approval of the State Commission or the alternative administrative entity. 

(6) RIGHTS.-An alternative administrative entity approved by the Corporation under this subsection shall have the 

same rights as a State Commission. 

(k) COORDINATION.- (1) COORDINATION WITH OTHER STATE AGENCIES.-The 

State Commission or alternative administrative entity for a 

State shall coordinate the activities of the Commission or entity under this Act with the activities of other State agencies 

that administer Federal financial assistance programs under 

the Community Services Block Grant Act (42 U.S.C. 9901 et 

seq.) or other appropriate Federal financial assistance programs. 

(2) COORDINATION WITH VOLUNTEER SERVICE PROGRAMS.- (A) IN GENERAL.-The State Commission or alternative 

administrative entity for a State shall coordinate functions 

of the Commission or entity (including recruitment, public 

awareness, and training activities) with such functions of 

any division of the Corporation, that carries out volunteer 

service programs in the State. 

(B) AGREEMENT.-ln coordinating functions under this 

paragraph, such Commission or entity, and such division, 

may enter into an agreement to-- (i) carry out such a function jointly; 

(ii) to assign responsibility for such a function to 

the Commission or entity; or 

(iii) to assign responsibility for such a function to 

the division. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

109 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 179 

(C) INFORMATION.-The State Commission or alternative entity for a State, and the head of any such division, shall exchange information about- (i) the programs carried out in the State by the 

Commission, entity, or division, as appropriate; and 

(ii) opportunities to coordinate activities. 

(1) LIABILITY.- (!) LIABILITY OF STATE.-Except as provided in paragraph 

(2)(B), a State shall agree to assume liability with respect to 

any claim arising out of or resulting from any act or omission 

by a member of the State Commission or alternative administrative entity of the State, within the scope of the service of the 

member on the State Commission or alternative administrative 

entity. 

(2) OTHER CLAIMS.- (A) IN GENERAL.-A member of the State Commission 

or alternative administrative entity shall have no personal 

liability with respect to any claim arising out of or resulting from any act or omission by such person, within the 

scope of the service of the member on the State Commission or alternative administrative entity. 

(B) LIMITATION.-This paragraph shall not be construed to limit personal liability for criminal acts or omissions, willful or malicious misconduct, acts or omissions for 

private gain, or any other act or omission outside the scope 

of the service of such member on the State Commission or 

alternative administrative entity. 

(3) EFFECT ON OTHER LAW.-This subsection shall not be 

construed- (A) to affect any other immunities and protections that 

may be available to such member under applicable law 

with respect to such service; 

(B) to affect any other right or remedy against the 

State under applicable law, or against any person other 

than a member of the State Commission or alternative administrative entity; or 

(C) to limit or alter in any way the immunities that 

are available under applicable law for State officials and 

employees not described in this subsection. 

SEC.179. [42 U.S.C.12639] EVALUATION. 

(a) IN GENERAL.-The Corporation shall provide, directly or 

through grants or contracts, for the continuing evaluation of programs that receive assistance under the national service laws, including evaluations that measure the impact of such programs, to 

determine--- (!) the effectiveness of programs receiving assistance 

under the national service laws in achieving stated goals and 

the costs associated with such programs, including an evaluation of each such program's performance based on the performance levels established under subsection (k); and 

(2) the effectiveness of the structure and mechanisms for 

delivery of services, such as the effective utilization of the participants' time, the management of the participants, and the 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 179 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 110 

ease with which recipients were able to receive services, to 

maximize the cost effectiveness and the impact of such programs. 

(b) COMPARIS0NS.-The Corporation shall provide for inclusion 

in the evaluations required under subsection (a), where appropriate, comparisons of participants in such programs with individuals who have not participated in such programs. 

(c) CONDUCTING EVALUATIONS.-Evaluations of programs 

under subsection (a) shall be conducted by individuals who are not 

directly involved in the administration of such program. 

(d) STANDARDS.-The Corporation shall develop and publish 

general standards for the evaluation of program effectiveness in 

achieving the objectives of the national service laws. 

(e) COMMUNITY PARTICIPATION.-ln evaluating a program receiving assistance under the national service laws, the Corporation 

shall consider the opinions of participants and members of the communities where services are delivered concerning the strengths and 

weaknesses of such program. 

(f) COMPARISON OF PROGRAM MODELS.-The Corporation shall 

evaluate and compare the effectiveness of different program models 

in meeting the program objectives described in subsection (g) including full- and part-time programs, programs involving different 

types of national service, programs using different recruitment 

methods, programs offering alternative voucher or post-service benefit options, and programs utilizing individual placements and 

teams. 

(g) PROGRAM OBJECTIVES.-The Corporation shall ensure that 

programs that receive assistance under subtitle C are evaluated to 

determine their effectiveness in- ( 1) recruiting and enrolling diverse participants in such 

programs, consistent with the requirements of section 145, 

based on economic background, race, ethnicity, age, marital 

status, education levels, and disability; 

(2) promoting the educational achievement of each participant in such programs, based on earning a high school diploma 

or the equivalent of such diploma and the future enrollment 

and completion of increasingly higher levels of education; 

(3) encouraging each participant to engage in public and 

community service after completion of the program based on 

career choices and service in other service programs such as 

the Volunteers in Service to America Program and National 

Senior Service Corps programs established under the Domestic 

Volunteer Service Act of 1973 (42 U.S.C. 4950 et seq.), the 

Peace Corps (as established by the Peace Corps Act (22 U.S.C. 

2501 et seq.)), the military, and part-time volunteer service; 

(4) promoting of positive attitudes among each participant 

regarding the role of such participant in solving community 

problems based on the view of such participant regarding the 

personal capacity of such participant to improve the lives of 

others, the responsibilities of such participant as a citizen and 

community member, and other factors; 

(5) enabling each participant to finance a lesser portion of 

the higher education of such participant through student loans; 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

111 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 179 

(6) providing services and projects that benefit the community; 

(7) supplying additional volunteer assistance to community 

agencies without overloading such agencies with more volunteers than can effectively be utilized; 

(8) providing services and activities that could not otherwise be performed by employed workers and that will not supplant the hiring of, or result in the displacement of, employed 

workers or impair the existing contracts of such workers; and 

(9) attracting a greater number of citizens to engage in 

service that benefits the community. 

(h) OBTAINING INFORMATION.- (1) IN GENERAL.-ln conducting the evaluations required 

under this section, the Corporation may require each program 

participant and State or local applicant to provide such information as may be necessary to carry out the requirements of 

this section. 

(2) CONFIDENTIALITY.- (A) IN GENERAL.-The Corporation shall maintain the 

confidentiality of information acquired under this subsection regarding individual participants. 

(B) DISCLOSURE.- (i) CONSENT.-The content of any information described in subparagraph (A) may be disclosed with the 

prior written consent of the individual participant 

with respect to whom the information is maintained. 

(ii) AGGREGATE INFORMATION.-The Corporation 

may disclose information about the aggregate characteristics of such participants. 

(i) INDEPENDENT EVALUATION AND REPORT OF DEMOGRAPHICS 

OF NATIONAL SERVICE PARTICIPANTS AND COMMUNITIES.- (1) INDEPENDENT EVALUATION.- (A) IN GENERAL.-The Corporation shall, on an annual 

basis, arrange for an independent evaluation of the programs assisted under subtitle C. 

(B) PARTICIPANTS.- (i) IN GENERAL.-The entity conducting such evaluation shall determine the demographic characteristics of the participants in such programs. 

(ii) CHARACTERISTICS.-The entity shall determine, for the year covered by the evaluation, the total 

number of participants in the programs, and the number of participants within the programs in each State, 

by sex, age, economic background, education level, ethnic group, disability classification, and geographic region. 

(iii) CATEGORIES.-The Corporation shall determine appropriate categories for analysis of each of the 

characteristics referred to in clause (ii) for purposes of 

such an evaluation. 

(C) COMMUNITIES.-ln conducting the evaluation, the 

entity shall determine the amount of assistance provided 

under section 121 during the year that has been expended 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 179 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 112 

for projects conducted under the programs in areas described in section 133(c)(6). 

(2) REPORT.-The entity conducting the evaluation shall 

submit a report to the President, the authorizing committees, 

the Corporation, and each State Commission containing the results of the evaluation- (A) with respect to the evaluation covering the year 

beginning on the date of enactment of this subsection, not 

later than 18 months after such date; and 

(B) with respect to the evaluation covering each subsequent year, not later than 18 months after the first day of 

each such year. 

(j) RESERVED PROGRAM FuNDS FOR ACCOUNTABILITY.-Notwithstanding any other provision of law, in addition to amounts appropriated to carry out this section, the Corporation may reserve not 

more than 1 percent of the total funds appropriated for a fiscal 

year under section 501 of this Act and sections 501 and 502 of the 

Domestic Volunteer Service Act of 1973 to support program accountability activities under this section. 

(k) PERFORMANCE LEVELS.-The Corporation shall, in consultation with each recipient of assistance under the national service 

laws, establish performance levels for such recipient to meet during 

the term of the assistance. The performance levels may include, for 

each national service program carried out by the recipient, performance levels based on the following performance measures: 

(1) Number of participants enrolled in the program and 

completing terms of service, as compared to the stated participation and retention goals of the program. 

(2) Number of volunteers recruited from the community in 

which the program was implemented. 

(3) If applicable based on the program design, the number 

of individuals receiving or benefitting from the service conducted. 

(4) Number of disadvantaged and underrepresented youth 

participants. 

(5) Measures of the sustainability of the program and the 

projects supported by the program, including measures to ascertain the level of community support for the program or 

projects. 

(6) Measures to ascertain the change in attitude toward 

civic engagement among the participants and the beneficiaries 

of the service. 

(7) Other quantitative and qualitative measures as determined to be appropriate by the recipient of assistance and the 

Corporation. 

(1) CORRECTIVE ACTION PLANS.- (1) IN GENERAL.-A recipient of assistance under the national service laws that fails, as determined by the Corporation, to meet or exceed the performance levels agreed upon 

under subsection (k) for a national service program, shall reach 

an agreement with the Corporation on a corrective action plan 

to meet such performance levels. 

(2) AsSISTANCE.- May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

113 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 179A 

(A) NEW PROGRAM.-For a program that has received 

assistance under the national service laws for less than 3 

years and for which the recipient is failing to meet or exceed the performance levels agreed upon under subsection 

(k), the Corporation shall- (i) provide technical assistance to the recipient to 

address targeted performance problems relating to the 

performance levels for the program; and 

(ii) require the recipient to submit quarterly reports on the program's progress toward meeting the 

performance levels for the program to the- (1) appropriate State, territory, or Indian 

tribe; and 

(II) the Corporation. 

(B) ESTABLISHED PROGRAMS.-For a program that has 

received assistance under the national service laws for 3 

years or more and for which the recipient is failing to meet 

or exceed the performance levels agreed upon under subsection (k), the Corporation shall require the recipient to 

submit quarterly reports on the program's progress toward 

the performance levels for the program to-- (i) the appropriate State, territory, or Indian tribe; 

and 

(ii) the Corporation. 

(m) FAILURE To MEET PERFORMANCE LEVELS.-If, after a period for correction as approved by the Corporation in accordance 

with subsection (1), a recipient of assistance under the national 

service laws fails to meet or exceed the performance levels for a national service program, the Corporation shall- ( 1) reduce the annual amount of the assistance received by 

the underperforming recipient by at least 25 percent, for each 

remaining year of the grant period for that program; or 

(2) terminate assistance to the underperforming recipient 

for that program, in accordance with section 176(a). 

(n) REPORTS.-The Corporation shall submit to the authorizing 

committees not later than 2 years after the date of enactment of 

the Serve America Act, and annually thereafter, a report containing information on the number of- ( 1) recipients of assistance under the national service laws 

implementing corrective action plans under subsection (1)(1); 

(2) recipients for which the Corporation provides technical 

assistance for a program under subsection (1)(2)(A)(i); 

(3) recipients for which the Corporation terminates assistance for a program under subsection (m); 

(4) entities whose application for assistance under a national service law was rejected; and 

(5) recipients meeting or exceeding their performance levels under subsection (k). 

SEC. 179A. [42 U.S.C. 12639a] CIVIC HEALTH ASSESSMENT AND VOLUNTEERING RESEARCH AND EVALUATION. 

(a) DEFINITION OF PARTNERSHIP.-In this section, the term 

"partnership" means the Corporation, acting in conjunction with 

(consistent with the terms of an agreement entered into between 

the Corporation and the National Conference) the National ConMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 179A NATIONAL AND COMMUNITY SERVICE ACT OF 1990 114 

ference on Citizenship referred to in section 150701 of title 36, 

United States Code, to carry out this section. 

(b) IN GENERAL.-The partnership shall facilitate the establishment of a Civic Health Assessment by- ( 1) after identifying public and private sources of civic 

health data, selecting a set of civic health indicators, in accordance with subsection (c), that shall comprise the Civic Health 

Assessment; 

(2) obtaining civic health data relating to the Civic Health 

Assessment, in accordance with subsection (d); and 

(3) conducting related analyses, and reporting the data 

and analyses, as described in paragraphs (4) and (5) of subsection (d) and subsections (e) and (f). 

(c) SELECTION OF INDICATORS FOR CMC HEALTH AsSESSMENT.-

(1) IDENTIFYING SOURCES.-The partnership shall select a 

set of civic health indicators that shall comprise the Civic 

Health Assessment. In making such selection, the partnership- (A) shall identify public and private sources of civic 

health data; 

(B) shall explore collaborating with other similar efforts to develop national indicators in the civic health domain; and 

(C) may sponsor a panel of experts, such as one convened by the National Academy of Sciences, to recommend 

civic health indicators and data sources for the Civic 

Health Assessment. 

(2) TECHNICAL ADVICE.-At the request of the partnership, 

the Director of the Bureau of the Census and the Commissioner of Labor Statistics shall provide technical advice to the 

partnership on the selection of the indicators for the Civic 

Health Assessment. 

(3) UPDATES.-The partnership shall periodically evaluate 

and update the Civic Health Assessment, and may expand or 

modify the indicators described in subsection (d)(l) as necessary to carry out the purposes of this section. 

(d) DATA ON THE INDICATORS.- (1) SPONSORED DATA COLLECTION.-ln identifying the civic 

health indicators for the Civic Health Assessment, and obtaining data for the Assessment, the partnership may sponsor the 

collection of data for the Assessment or for the various civic 

health indicators being considered for inclusion in the Assessment, including indicators related to-- (A) volunteering and community service; 

(B) voting and other forms of political and civic engagement; 

(C) charitable giving; 

(D) connecting to civic groups and faith-based organizations; 

(E) interest in employment, and careers, in public 

service in the nonprofit sector or government; 

(F) understanding and obtaining knowledge of United 

States history and government; and 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

115 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 179A 

( G) social enterprise and innovation. 

(2) DATA FROM STATISTICAL AGENCIES.-The Director of the 

Bureau of the Census and the Commissioner of Labor Statistics shall collect annually, to the extent practicable, data to inform the Civic Health Assessment, and shall report data from 

such collection to the partnership. In determining the data to 

be collected, the Director and the Commissioner shall examine 

privacy issues, response rates, and other relevant issues. 

(3) SOURCES OF DATA.-To obtain data for the Civic Health 

Assessment, the partnership shall consider- (A) data collected through public and private sources; 

and 

(B) data collected by the Bureau of the Census, 

through the Current Population Survey, or by the Bureau 

of Labor Statistics, in accordance with paragraph (2). 

(4) DEMOGRAPHIC CHARACTERISTICS.-The partnership 

shall seek to obtain data for the Civic Health Assessment that 

will permit the partnership to analyze the data by age group, 

race and ethnicity, education level, and other demographic 

characteristics of the individuals involved. 

(5) OTHER ISSUES.-ln obtaining data for the Civic Health 

Assessment, the partnership may also obtain such information 

as may be necessary to analyze--- (A) the role of Internet technology in strengthening 

and inhibiting civic activities; 

(B) the role of specific programs in strengthening civic 

activities; 

(C) the civic attitudes and activities of new citizens 

and immigrants; and 

(D) other areas related to civic activities. 

(e) REPORTING OF DATA.- (1) IN GENERAL.-The partnership shall, not less often 

than once each year, prepare a report containing- (A) detailed data obtained under subsection (d), including data on the indicators comprising the Civic Health 

Assessment; and 

(B) the analyses described in paragraphs (4) and (5) of 

subsection (d), to the extent practicable based on the data 

the partnership is able to obtain. 

(2) AGGREGATION AND PRESENTATION.-The partnership 

shall, to the extent practicable, aggregate the data on the civic 

health indicators comprising the Civic Health Assessment by 

community, by State, and nationally. The report described in 

paragraph (1) shall present the aggregated data in a form that 

enables communities and States to assess their civic health, as 

measured on each of the indicators comprising the Civic Health 

Assessment, and compare those measures with comparable 

measures of other communities and States. 

(3) SUBMISSION.-The partnership shall submit the report 

to the authorizing committees, and make the report available 

to the general public on the Corporation's website. 

(f) PUBLIC INPUT.-The partnership shall- (1) identify opportunities for public dialogue and input on 

the Civic Health Assessment; and 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 180 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 116 

(2) hold conferences and forums to discuss the implications 

of the data and analyses reported under subsection (e). 

(g) VOLUNTEERlNG RESEARCH AND EVALUATION.- (1) RESEARCH.-The partnership shall provide for baseline 

research and tracking of domestic and international volunteering, and baseline research and tracking related to relevant 

data on the indicators described in subsection (d). In providing 

for the research and tracking under this subsection, the partnership shall consider data from the Supplements to the Current Populations Surveys conducted by the Bureau of the Census for the Bureau of Labor Statistics, and data from other 

public and private sources, including other data collected by 

the Bureau of the Census and the Bureau of Labor Statistics. 

(2) IMPACT RESEARCH AND EVALUATION.-The partnership 

shall sponsor an independent evaluation of the impact of domestic and international volunteering, including an assessment 

of best practices for such volunteering, and methods of improving such volunteering through enhanced collaboration among- (A) entities that recruit, manage, support, and utilize 

volunteers; 

(B) institutions of higher education; and 

(C) research institutions. 

(h) DATABASE PROHIBITION.-Nothing in this Act shall be construed to authorize the development, implementation, or maintenance of a Federal database of personally identifiable information 

on individuals participating in data collection for sources of information under this section. 

SEC. 180. [42 U.S.C. 12640] ENGAGEMENT OF PARTICIPANTS. 

A State shall not engage a participant to serve in any program 

that receives assistance under this title unless and until amounts 

have been appropriated under section 501 for the provision of national service educational awards and for the payment of other necessary expenses and costs associated with such participant. 

SEC.181. [42 U.S.C.12641] CONTINGENT EXTENSION. 

Section 422 of the General Education Provisions Act (20 U.S.C. 

1226a) shall apply to this Act. 

SEC.182. [42 U.S.C.12642] PARTNERSfilPS WITH SCHOOLS. 

(a) DESIGN OF PROGRAMS.-The head of each Federal agency 

and department shall design and implement a comprehensive 

strategy to involve employees of such agencies and departments in 

partnership programs with elementary schools and secondary 

schools. Such strategy shall include- ( 1) a review of existing programs to identify and expand 

the opportunities for such employees to be adult volunteers in 

schools and for students and out-of-school youth; 

(2) the designation of a senior official in each such agency 

and department who will be responsible for establishing partnership and youth service programs in each such agency and 

department and for developing partnership and youth service 

programs; 

(3) the encouragement of employees of such agencies and 

departments to participate in partnership programs and other 

service projects; 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

117 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 183 

( 4) the annual recognition of outstanding service programs 

operated by Federal agencies; and 

(5) the encouragement of businesses and professional firms 

to include community service among the factors considered in 

making hiring, compensation, and promotion decisions. 

(b) REPORT.- (1) FEDERAL AGENCY SUBMISSION.-The head of each Federal agency and department shall prepare and submit to the 

Corporation a report concerning the implementation of this 

section, including an evaluation of the agency or department's 

performance on performance goals and benchmarks for each 

partnership program of the agency or department. 

(2) REPORT TO CONGRESS.-The Corporation shall prepare 

and submit to the authorizing committees a compilation of the 

information received under paragraph (1). 

SEC. 183. [42 U.S.C. 12643] RIGHTS OF ACCESS, EXAMINATION, AND 

COPYING. 

(a) COMPTROLLER GENERAL.-Consistent with otherwise applicable law, the Comptroller General, or any of the duly authorized 

representatives of the Comptroller General, shall have access to, 

and the right to examine and copy, any books, documents, papers, 

records, and other recorded information in any form- ( 1) within the possession or control of the Corporation or 

any State or local government, territory, Indian tribe, or public 

or private nonprofit organization receiving assistance directly 

or indirectly under this Act; and 

(2) that the Comptroller General, or his representative, 

considers necessary to the performance of an evaluation, audit, 

or review. 

(b) CHIEF FINANCIAL OFFICER.-Consistent with otherwise applicable law, the Chief Financial Officer of the Corporation shall 

have access to, and the right to examine and copy, any books, documents, papers, records, and other recorded information in any 

form- (1) within the possession or control of the Corporation or 

any State or local government, territory 1 Indian tribe, or public or private nonprofit organization receiving assistance directly or indirectly under this Act; and 

(2) that relates to the duties of the Chief Financial Officer. 

(c) INSPECTOR GENERAL.-Consistent with otherwise applicable 

law, the Inspector General of the Corporation shall have access to, 

and the right to examine and copy, any books, documents, papers, 

records, and other recorded information in any form- ( 1) within the possession or control of the Corporation or 

any State or local government, territory, Indian tribe, or public 

or private nonprofit organization receiving assistance directly 

or indirectly under the national service laws; and 

(2) that relates to-- (A) such assistance; and 

(B) the duties of the Inspector General under the Inspector General Act of 1978 (5 U.S.C. App.). 

1 So in law. Probably should read ''territory,". See amendment made by section 1611(2XB) of 

Public Law 111-13 (123 Stat. 1537). 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 184 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 118 

SEC. 184. [42 U.S.C. 12644] DRUG-FREE WORKPLACE REQUIREMENTS. 

All programs receiving grants under this title shall be subject 

to the Drug-Free Workplace Requirements for Federal Grant Recipients under sections 5153 through 5158 of the Anti-Drug Abuse 

Act of 1988 (41 U.S.C. 702-707). 

SEC.184A. [42 U.S.C. 12644a] AVAILABILITY OF ASSISTANCE. 

A reference in subtitle C, D, E, or H of title I regarding an entity eligible to receive direct or indirect assistance to carry out a 

national service program shall include a non-profit organization 

promoting competitive and non-competitive sporting events involving individuals with disabilities (including the Special Olympics), 

which enhance the quality of life for individuals with disabilities. 

SEC. 185. [42 U.S.C. 12644b] CONSOLIDATED APPLICATION AND RE- PORTING REQUIREMENTS. 

(a) IN GENERAL.-To promote efficiency and eliminate duplicative requirements, the Corporation shall consolidate or modify application procedures and reporting requirements for programs, 

projects, and activities funded under the national service laws. 

(b) REPORT TO CONGRESS.-Not later than 18 months after the 

effective date of the Serve America Act, the Corporation shall submit to the authorizing committees a report containing information 

on the actions taken to consolidate or modify the application procedures and reporting requirements for programs, projects, and activities funded under the national service laws, including a description of the procedures for consultation with recipients of the funding. 

SEC.186. [42 U.S.C.12645] SUSTAINABILITY. 

The Corporation, after consultation with State Commissions 

and recipients of assistance, may set sustainability goals for 

projects or programs under the national service laws, so that recipients of assistance under the national service laws are carrying out 

sustainable projects or programs. Such sustainability goals shall be 

in writing and shall be used- ( 1) to build the capacity of the projects or programs that 

receive assistance under the national service laws to meet community needs; 

(2) in providing technical assistance to recipients of assistance under the national service laws regarding acquiring and 

leveraging non-Federal funds for support of the projects or programs that receive such assistance; and 

(3) to determine whether the projects or programs, receiving such assistance, are generating sufficient community support. 

SEC.187. [42 U.S.C.12645a] GRANT PERIODS. 

Unless otherwise specifically provided, the Corporation has authority to award a grant or contract, or enter into a cooperative 

agreement, under the national service laws for a period of 3 years. 

SEC. 188. [42 U.S.C. 12645b] GENERATION OF VOLUNTEERS. 

In making decisions on applications for assistance or approved 

national service positions under the national service laws, the Corporation shall take into consideration the extent to which the applicant's proposal will increase the involvement of volunteers in meetMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

119 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 189A 

ing community needs. In reviewing the application for this purpose, 

the Corporation may take into account the mission of the applicant. 

SEC. 189. [42 U.S.C. 12645c] LIMITATION ON PROGRAM GRANT COSTS. 

(a) LIMITATION ON GRANT A.MOUNTS.-Except as otherwise provided by this section, the amount of funds approved by the Corporation for a grant to operate a program authorized under the national service laws, for supporting individuals serving in approved 

national service positions, may not exceed $18,000 per full-time 

equivalent position. 

(b) COSTS SUBJECT TO LIMITATION.-The limitation under subsection (a), and the increased limitation under subsection (e)(l), 

shall apply to the Corporation's share of the member support costs, 

staff costs, and other costs to operate a program authorized under 

the national service laws incurred, by the recipient of the grant. 

(c) COSTS NOT SUBJECT TO LIMITATION.-The limitation under 

subsection (a), and the increased limitation under subsection (e)(l), 

shall not apply to expenses under a grant authorized under the national service laws to operate a program that are not included in 

the grant award for operating the program. 

(d) ADJUSTMENTS FOR INFLATION.-The amounts specified in 

subsections (a) and (e)(l) shall be adjusted each year after 2008 for 

inflation as measured by the Consumer Price Index for All Urban 

Consumers published by the Secretary of Labor. 

(e) WAIVER AUTHORITY AND REPORTING REQUIREMENT.- (1) WAIVER.-The Chief Executive Officer may increase the 

limitation under subsection (a) to not more than $19,500 per 

full-time equivalent position if necessary to meet the compelling needs of a particular program, such as- (A) exceptional training needs for a program serving 

disadvantaged youth; 

(B) the need to pay for increased costs relating to the 

participation of individuals with disabilities; 

(C) the needs of tribal programs or programs located 

in the territories; and 

(D) the need to pay for start-up costs associated with 

a first-time recipient of assistance under a program of the 

national service laws. 

(2) REPORTS.-The Chief Executive Officer shall report to 

the authorizing committees annually on all limitations increased under this subsection, with an explanation of the compelling needs justifying such increases. 

SEC. 189A. [42 U.S.C. 12645d] MATCmNG FUNDS FOR SEVERELY ECONOMICALLY DISTRESSED COMMUNITIBS. 

(a) IN GENERAL.-Notwithstanding any other provision of law, 

a severely economically distressed community that receives assistance from the Corporation for any program under the national 

service laws shall not be subject to any requirements to provide 

matching funds for any such program, and the Federal share of 

such assistance for such a community may be 100 percent. 

(b) SEVERELY ECONOMICALLY DISTRESSED COMMUNITY.-For 

the purposes of this section, the term "severely economically distressed community'' meansMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec 1898 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 120 

(1) an area that has a mortgage foreclosure rate, home 

price decline, and unemployment rate all of which are above 

the national average for such rates or level, for the most recent 

12 months for which satisfactory data are available; or 

(2) a residential area that lacks basic living necessities, 

such as water and sewer systems, electricity, paved roads, and 

safe, sanitary housing. 

SEC.189B. [42 U.S.C.12645e] AUDITS AND REPORTS. 

The Corporation shall comply with applicable audit and reporting requirements as provided in the Chief Financial Officers Act of 

1990 (31 U.S.C. 901 note; Public Law 101-576) and chapter 91 of 

title 31, United States Code (commonly known as the "Government 

Corporation Control Act"). The Corporation shall report to the authorizing committees any failure to comply with such requirements. 

SEC. 189C. [42 U.S.C. 12645f] RESTRICTIONS ON FEDERAL GOVERN- MENT AND USE OF FEDERAL FUNDS. 

(a) GENERAL PROHIBITION.-Nothing in the national service 

laws shall be construed to authorize an officer or employee of the 

Federal Government to mandate, direct, or control a State, local 

educational agency, or school's curriculum, program of instruction, 

or allocation of State or local resources, or mandate a State or any 

subdivision thereof to spend any funds or incur any costs not paid 

for under this Act. 

(b) PROHIBITION ON ENDORSEMENT OF CURRICULUM.-Notwithstanding any other prohibition of Federal law, no funds provided 

to the Corporation under this Act may be used by the Corporation 

to endorse, approve, or sanction any curriculum designed to be 

used in an elementary school or secondary school. 

(c) PROHIBITION ON REQUIRING FEDERAL APPROVAL OR CERTIFICATION STANDARDS.-Notwithstanding any other provision of Federal law, not State shall be required to have academic content or 

student academic achievement standards approved or certified by 

the Federal Government, in order to receive assistance under this 

Act. 

SEC. 189D. [42 U.S.C. 12645g] CRIMINAL HISTORY CHECKS. 

(a) IN GENERAL.-Each entity selecting individuals to serve in 

a position in which the individuals receive a living allowance, stipend, national service educational award, or salary through a program receiving assistance under the national service laws, shall, 

subject to regulations and requirements established by the Corporation, conduct criminal history checks for such individuals. 

(b) REQUIREMENTS.-A criminal history check under subsection 

(a) shall, except in cases approved for good cause by the Corporation, include- (1) a name-based search of the National Sex Offender Registry established under the Adam Walsh Child Protection and 

Safety Act of 2006 (42 U.S.C. 16901 et seq.); and 

(2)(A) a search of the State criminal registry or repository 

in the State in which the program is operating and the State 

in which the individual resides at the time of application; or 

(B) submitting fingerprints to the Federal Bureau of Investigation for a national criminal history background check. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

121 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 189D 

(c) ELIGIBILITY PROHIBITION.-An individual shall be ineligible 

to serve in a position described under subsection (a) if such individual-

(1) refuses to consent to the criminal history check described in subsection (b); 

(2) makes a false statement in connection with such criminal history check; 

(3) is registered, or is required to be registered, on a State 

sex offender registry or the National Sex Offender Registry established under the Adam Walsh Child Protection and Safety 

Act of 2006 (42 U.S.C. 16901 et seq.); or 

(4) has been convicted of murder, as described in section 

1111 of title 18, United States Code. 

(d) SPECIAL RULE FOR INDIVIDUALS WORKING WITH VULNERABLE POPULATIONS.- (1) IN GENERAL.-Notwithstanding subsection (b), on and 

after the date that is 2 years after the date of enactment of the 

Serve America Act, a criminal history check under subsection 

(a) for each individual described in paragraph (2) shall, except 

for an entity described in paragraph (3), include--- (A) a name-based search of the National Sex Offender 

Registry established under the Adam Walsh Child Protection and Safety Act of 2006 (42 U.S.C. 16901 et seq.); 

(B) a search of the State criminal registry or repository in the State in which the program is operating and 

the State in which the individual resides at the time of application; and 

(C) submitting fingerprints to the Federal Bureau of 

Investigation for a national criminal history background 

check. 

(2) INDIVIDUALS WITH ACCESS TO VULNERABLE POPULATIONS.-An individual described in this paragraph is an individual age 18 or older who-- (A) serves in a position in which the individual receives a living allowance, stipend, national service educational award, or salary through a program receiving assistance under the national service laws; and 

(B) as a result of such individual's service in such posi- tion, has or will have access, on a recurring basis, to-­

(i) children age 17 years or younger; 

(ii) individuals age 60 years or older; or 

(iii) individuals with disabilities. 

(3) EXCEPTIONS.-The provisions of this subsection shall 

not apply to an entity- (A) where the service provided by individuals serving 

with the entity to a vulnerable population described in 

paragraph (2)(B) is episodic in nature or for a 1-day period; 

(B) where the cost to the entity of complying with this 

subsection is prohibitive; 

(C) where the entity is not authorized, or is otherwise 

unable, under State law, to access the national criminal 

history background check system of the Federal Bureau of 

Investigation; 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 191 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 122 

(D) where the entity is not authorized, or is otherwise 

unable, under Federal law, to access the national criminal 

history background check system of the Federal Bureau of 

Investigation; or 

(E) to which the Corporation otherwise provides an exemption from this subsection for good cause. 

Subtitle G-Corporation for National and 

Community Service 

SEC. 191. [42 U.S.C. 12651] CORPORATION FOR NATIONAL AND COMMUNITY SERVICE. 

There is established a Corporation for National and Community Service that shall administer the programs established under 

the national service laws. The Corporation shall be a Government 

corporation, as defined in section 103 of title 5, United States Code. 

SEC.192. [42 U.S.C.12651a] BOARD OF DIRECTORS. 

(a) COMPOSITION.- (1) IN GENERAL.-There shall be in the Corporation a 

Board of Directors (referred to in this subtitle as the "Board") 

that shall be composed of- (A) 15 members, including an individual between the 

ages of 16 and 25 who-- (i) has served in a school-based or communitybased service-learning program; or 

(ii) is or was a participant or a supervisor in a 

program; 

to be appointed by the President, by and with the advice 

and consent of the Senate; and 

(B) the ex officio nonvoting members described in 

paragraph (3). 

(2) QUALIFICATIONS.-To the maximum extent practicable, 

the President shall appoint members- (A) who have extensive experience in volunteer or 

service activities, which may include programs funded 

under one of the national service laws, and in State government; 

(B) who represent a broad range of viewpoints; 

(C) who are experts in the delivery of human, educational, environmental, or public safety services; 

(D) so that the Board shall be diverse according to 

race, ethnicity, age, gender, and disability characteristics; 

and 

(E) so that no more than 50 percent of the appointed 

members of the Board, plus 1 additional appointed member, are from a single political party. 

(3) Ex OFFICIO MEMBERS.-The Secretary of Education, the 

Secretary of Health and Human Services, the Secretary of 

Labor, the Secretary of the Interior, the Secretary of Agriculture, the Secretary of Housing and Urban Development, the 

Secretary of Defense, the Attorney General, the Director of the 

Peace Corps, the Administrator of the Environmental ProtecMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

123 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 192A 

tion Agency, and the Chief Executive Officer shall serve as ex 

officio nonvoting members of the Board. 

(b) OFFICERS.- (!) CHAIRPERSON.-The President shall appoint a member 

of the Board to serve as the initial Chairperson of the Board. 

Each subsequent Chairperson shall be elected by the Board 

from among its members. 

(2) VICE CHAIRPERSON.-The Board shall elect a Vice 

Chairperson from among its membership. 

(3) OTHER OFFICERS.-The Board may elect from among its 

membership such additional officers of the Board as the Board 

determines to be appropriate. 

(c) TERMS.-Subject to subsection (e), each appointed member 

shall serve for a term of 5 years. 

(d) VACANCIES.-If a vacancy occurs on the Board, a new member shall be appointed by the President, by and with the advice and 

consent of the Senate, and serve for the remainder of the term for 

which the predecessor of such member was appointed. The vacancy 

shall not affect the power of the remaining members to execute the 

duties of the Board. 

(e) SERVICE UNTIL APPOINTMENT OF SUCCESSOR.-A voting 

member of the Board whose term has expired may continue to 

serve on the Board until the date on which the member's successor 

takes office, which period shall not exceed 1 year. 

SEC. 192A. [42 U.S.C. 12651b] AUTHORITIES AND DUTIES OF THE 

BOARD OF DIRECTORS. 

(a) MEETINGS.-The Board shall meet not less often than 3 

times each year. The Board shall hold additional meetings at the 

call of the Chairperson of the Board, or if 6 members of the Board 

request such meetings in writing. 

(b) QUORUM.-A majority of the appointed members of the 

Board shall constitute a quorum. 

(c) AUTHORITIES OF OFFICERS.- (!) CHAIRPERSON.-The Chairperson of the Board may call 

and conduct meetings of the Board. 

(2) VICE CHAIRPERSON.-The Vice Chairperson of the 

Board may conduct meetings of the Board in the absence of the 

Chairperson. 

(d) EXPENSES.-While away from their homes or regular places 

of business on the business of the Board, members of such Board 

shall be allowed travel expenses, including per diem in lieu of subsistence, at rates authorized for employees of agencies under subchapter I of chapter 57 of title 5, United States Code, for persons 

employed intermittently in the Government service. 

(e) SPECIAL GOVERNMENT EMPLOYEES.-For purposes of the 

provisions of chapter 11 of part I of title 18, United States Code, 

and any other provision of Federal law, a member of the Board (to 

whom such provisions would not otherwise apply except for this 

subsection) shall be a special Government employee. 

(f) STATUS OF MEMBERS.- (!) TORT CLAIMS.-For the purposes of the tort claims provisions of chapter 171 of title 28, United States Code, a member of the Board shall be considered to be a Federal employee. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 192A NATIONAL AND COMMUNITY SERVICE ACT OF 1990 124 

(2) OTHER CLAIMS.-A member of the Board shall have no 

personal liability under Federal law with respect to any claim 

arising out of or resulting from any act or omission by such 

person, within the scope of the service of the member on the 

Board, in connection with any transaction involving the provision of financial assistance by the Corporation. This paragraph 

shall not be construed to limit personal liability for criminal 

acts or omissions, willful or malicious misconduct, acts or omissions for private gain, or any other act or omission outside the 

scope of the service of such member on the Board. 

(3) EFFECT ON OTHER LAW.-This subsection shall not be 

construed- (A) to affect any other immunities and protections that 

may be available to such member under applicable law 

with respect to such transactions; 

(B) to affect any other right or remedy against the 

Corporation, against the United States under applicable 

law, or against any person other than a member of the 

Board participating in such transactions; or 

(C) to limit or alter in any way the immunities that 

are available under applicable law for Federal officials and 

employees not described in this subsection. 

(g) DUTIES.-The Board shall have responsibility for setting 

overall policy for the Corporation and shall- ( 1) review and approve the strategic plan described in section 193A(b)(l), and annual updates of the plan, and review 

the budget proposal in advance of submission to the Office of 

Management and Budget; 

(2) review and approve the proposal described in section 

193A(b)(2)(A), with respect to the grants, allotments, contracts, 

financial assistance, payment, and positions referred to in such 

section; 

(3) review and approve the proposal described in section 

193A(b)(3)(A), regarding the regulations, standards, policies, 

procedures, programs, and initiatives referred to in such section; 

( 4) review and approve the evaluation plan described in 

section 193A(b)(4)(A); 

(5)(A) review, and advise the Chief Executive Officer regarding, the actions of the Chief Executive Officer with respect 

to the personnel of the Corporation, and with respect to such 

standards, policies, procedures, programs, and initiatives as 

are necessary or appropriate to carry out the national service 

laws; 

(B) inform the Chief Executive Officer of any aspects of the 

actions of the Chief Executive Officer that are not in compliance with the annual strategic plan referred to in paragraph 

(1), the proposals referred to in paragraphs (2) and (3), or the 

plan referred to in paragraph (4), or are not consistent with 

the objectives of the national service laws; and 

(C) review the performance of the Chief Executive Officer 

annually and forward a report on that review to the President; 

(6) receive any report as provided under subsection (b), (c), 

or (d) of section BE of the Inspector General Act of 1978; 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

125 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 192A 

(7) make recommendations relating to a program of research for the Corporation with respect to national and community service programs, including service-learning programs; 

(8) advise the President and the authorizing committees 

concerning developments in national and community service 

that merit the attention of the President and the authorizing 

committees; 

(9) ensure effective dissemination of information regarding 

the programs and initiatives of the Corporation; 

(10) notwithstanding any other provision of law- (A) make grants to or contracts with Federal and other 

public departments or agencies, and private nonprofit organizations, for the assignment or referral of volunteers 

under the provisions of title I of the Domestic Volunteer 

Service Act of 1973 (42 U.S.C. 4950 et seq.) (except as provided in section 108 of such Act), which may provide that 

the agency or organization shall pay all or a part of the 

costs of the program; and 

(B) enter into agreements with other Federal agencies 

or private nonprofit organizations for the support of programs under the national service laws, which- (i) may provide that the agency or organization 

shall pay all or a part of the costs of the program, except as is provided in section 121(b); and 

(ii) shall provide that the program (including any 

program operated by another Federal agency) will 

comply with all requirements related to evaluation, 

performance, and other goals applicable to similar programs under the national service laws, as determined 

by the Corporation, 

(11) prepare and make recommendations to the authorizing committees and the President for changes in the national 

service laws resulting from the studies and demonstrations the 

Chief Executive Officer is required to carry out under section 

193A(b)(ll), which recommendations shall be submitted to the 

authorizing committees and President not later than January 

1, 2012. 

(h) ADMINISTRATION.-The Federal Advisory Committee Act (5 

U.S.C. App.) shall not apply with respect to the Board. 

(i) LIMITATION ON PARTICIPATION.-All employees and officers 

of the Corporation shall recuse themselves from decisions that 

would constitute conflicts of interest. 

G) COORDINATION WITH OTHER FEDERAL ACTMTIES.-As part 

of the agenda of meetings of the Board under subsection (a), the 

Board shall review projects and programs conducted or funded by 

the Corporation under the national service laws to improve the coordination between such projects and programs, and the activities 

of other Federal agencies that deal with the individuals and communities participating in or benefiting from such projects and programs. The ex officio members of the Board specified in section 

192(a)(3) shall jointly plan, implement, and fund activities in connection with projects and programs conducted under the national 

service laws to ensure that Federal efforts attempt to address the 

total needs of participants in such programs and projects, their 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 193 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 126 

communities, and the persons and communities the participants 

serve. 

SEC.193. [42 U.S.C.12651c] CHIEF EXECUTIVE OFFICER. 

(a) APPOINTMENT.-The Corporation shall be headed by an individual who shall serve as Chief Executive Officer of the Corporation, and who shall be appointed by the President, by and with the 

advice and consent of the Senate. 

(b) C0MPENSATION.-The Chief Executive Officer shall be compensated at the rate provided for level III of the Executive Schedule under section 5314 of title 5, United States Code, plus 3 percent. 

(c) REGULATIONS.-The Chief Executive Officer shall prescribe 

such rules and regulations as are necessary or appropriate to carry 

out the national service laws. 

SEC. 193A. [42 U.S.C. 12651d] AUTHORITIES AND DUTIES OF THE CHIEF 

EXECUTIVE OFFICER. 

(a) GENERAL POWERS AND DUTIES.-The Chief Executive Officer shall be responsible for the exercise of the powers and the discharge of the duties of the Corporation that are not reserved to the 

Board, and shall have authority and control over all personnel of 

the Corporation, except as provided in section SE of the Inspector 

General Act of 1978. 

(b) DUTIES.-In addition to the duties conferred on the Chief 

Executive Officer under any other provision of the national service 

laws, the Chief Executive Officer, in collaboration with the State 

Commissions, shall- (1) prepare and submit to the Board a strategic plan, including a plan for having 50 percent of all approved national 

service positions be full-time positions by 2012, every 3 years, 

and annual updates of the plan, for the Corporation with respect to the major functions and operations of the Corporation; 

(2)(A) prepare and submit to the Board a proposal with respect to such grants and allotments, contracts, other financial 

assistance, and designation of positions as approved national 

service positions, as are necessary or appropriate to carry out 

the national service laws; and 

(B) after receiving and reviewing an approved proposal 

under section 192A(g)(2), make such grants and allotments, 

enter into such contracts, award such other financial assistance, make such payments (in lump sum or installments, and 

in advance or by way of reimbursement, and in the case of financial assistance otherwise authorized under the national 

service laws, with necessary adjustments on account of overpayments and underpayments), and designate such positions 

as approved national service positions, approved summer of 

service positions, and approved silver scholar positions as are 

necessary or appropriate to carry out the national service laws; 

(3)(A) prepare and submit to the Board a proposal regarding, the regulations established under section 195(b)(3)(A), and 

such other standards, policies, procedures, programs, and initiatives as are necessary or appropriate to carry out the national service laws; and 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

127 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 193A 

(B) after receiving and reviewing an approved proposal 

under section 192A(g)(3}- (i) establish such standards, policies, and procedures 

as are necessary or appropriate to carry out the national 

service laws; and 

(ii) establish and administer such programs and initiatives as are necessary or appropriate to carry out the national service laws; 

(4)(A) prepare and submit to the Board a plan for the evaluation of programs established under the national service laws, 

in accordance with section 179; and 

(B) after receiving an approved proposal under section 

192A(g)( 4)-

(i) establish measurable performance goals and objectives for such programs, in accordance with section 179; 

and 

(ii) provide for periodic evaluation of such programs to 

assess the manner and extent to which the programs 

achieve the goals and objectives, in accordance with such 

section; 

(5) consult with appropriate Federal agencies in administering the programs and initiatives; 

(6) suspend or terminate payments and positions described 

in paragraph (2)(B), in accordance with section 176; 

(7) prepare and submit to the authorizing committees and 

the Board an annual report on actions taken to achieve the 

goal of having 50 percent of all approved national service positions be full-time positions by 2012 as described in paragraph 

(1), including an assessment of the progress made toward 

achieving that goal and the actions to be taken in the coming 

year toward achieving that goal; 

(8) prepare and submit to the Board an annual report, and 

such interim reports as may be necessary, describing the major 

actions of the Chief Executive Officer with respect to the personnel of the Corporation, and with respect to such standards, 

policies, procedures, programs, and initiatives; 

(9) inform the Board of, and provide an explanation to the 

Board regarding, any substantial differences regarding the implementation of the national service laws between- (A) the actions of the Chief Executive Officer; and 

(B)(i) the strategic plan approved by the Board under 

section 192A(g)(l); 

(ii) the proposals approved by the Board under paragraph (2) or (3) of section 192A(g); or 

(iii) the evaluation plan approved by the Board under 

section 192A(g)(4); 

(10) prepare and submit to the authorizing committees an 

annual report, and such interim reports as may be necessary, 

describing- (A) the services referred to in paragraph (1), and the 

money and property referred to in paragraph (2), of section 

196(a) that have been accepted by the Corporation; 

(B) the manner in which the Corporation used or disposed of such services, money, and property; and 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 193A NATIONAL AND COMMUNITY SERVICE ACT OF 1990 128 

(C) information on the results achieved by the programs funded under the national service laws during the 

year preceding the year in which the report is prepared; 

(11) provide for studies (including the evaluations de- scribed in subsection (f)) and demonstrations that evaluate, 

and prepare and submit to the Board periodically, a report containing recommendations regarding, issues related to-- (A) the administration and organization of programs 

authorized under the national service laws or under Public 

Law 91-378 (referred to in this subparagraph as "service 

programs"), including- (i) whether the State and national priorities, as 

described in section 122(£)(1), designed to meet unmet 

human, education, environmental, or public safety 

needs are being addressed by this Act; 

(ii) the manner in which- (1) educational and other outcomes of both 

stipended and nonstipended service and servicelearning are defined and measured in such service 

programs; and 

(II) such outcomes should be defined and 

measured in such service programs; 

(iii) whether stipended service programs, and 

service programs providing educational benefits in return for service, should focus on economically disadvantaged individuals or at-risk youth or whether 

such programs should include a mix of individuals, including individuals from middle- and upper-income 

families; 

(iv) the role and importance of stipends and educational benefits in achieving desired outcomes in the 

service programs; 

(v) the potential for cost savings and coordination 

of support and oversight services from combining functions performed by ACTION State offices and State 

Commissions; 

(vi) the implications of the results from such studies and demonstrations for authorized funding levels 

for the service programs; and 

(vii) other issues that the Director determines to 

be relevant to the administration and organization of 

the service programs; and 

(B) the number, potential consolidation, and future organization of national service or domestic volunteer service 

programs that are authorized under Federal law, including 

VISTA, service corps assisted under subtitle C and other 

programs authorized by this Act, programs administered 

by the Public Health Service, the Department of Defense, 

or other Federal agencies, programs regarding teacher 

corps, and programs regarding work-study and higher education loan forgiveness or forbearance programs authorized 

by the Higher Education Act of 1965 (20 U.S.C. 1001 et 

seq.) related to community service; 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

129 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 193A 

(12) for purposes of section 178(d)(6)(B), issue regulations 

to waive the disqualification of members of the Board and 

members of the State Commissions selectively in a random, 

nondiscretionary manner and only to the extent necessary to 

establish the quorum involved, including rules that forbid each 

member of the Board and each voting member of a State Commission to participate in any discussion or decision regarding 

the provision of assistance or approved national service positions, or the continuation, suspension, or termination of such 

assistance or such positions, to any program or entity of which 

such member of the Board or such member of the State Commission is, or in the 1-year period before the submission of the 

application referred to in such section was, an officer, director, 

trustee, full-time volunteer, or employee; 

(13) bolster the public awareness of and recruitment efforts for the wide range of service opportunities for citizens of 

all ages, regardless of socioeconomic status or geographic location, through a variety of methods, including- (A) print media; 

(B) the Internet and related emerging technologies; 

(C) television; 

(D) radio; 

(E) presentations at public or private forums; 

(F) other innovative methods of communication; and 

(G) outreach to offices of economic development, State 

employment security agencies, labor organizations and 

trade associations, local educational agencies, institutions 

of higher education, agencies and organizations serving 

veterans and individuals with disabilities, and other institutions or organizations from which participants for programs receiving assistance from the national service laws 

can be recruited; 

(14) identify and implement methods of recruitment to­

(A) increase the diversity of participants in the programs receiving assistance under the national service 

laws; and 

(B) increase the diversity of service sponsors of programs desiring to receive assistance under the national 

service laws; 

(15) coordinate with organizations of former participants of 

national service programs for service opportunities that may 

include capacity building, outreach, and recruitment for programs receiving assistance under the national service laws; 

(16) collaborate with organizations with demonstrated expertise in supporting and accommodating individuals with disabilities, including institutions of higher education, to identify 

and implement methods of recruitment to increase the number 

of participants who are individuals with disabilities in the programs receiving assistance under the national service laws; 

(17) identify and implement recruitment strategies and 

training programs for bilingual volunteers in the National Senior Service Corps under title II of the Domestic Volunteer Service Act of 1973; 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 193A NATIONAL AND COMMUNITY SERVICE ACT OF 1990 130 

(18) collaborate with organizations that have established 

volunteer recruitment programs to increase the recruitment capacity of the Corporation; 

(19) where practicable, provide application materials in 

languages other than English for individuals with limited 

English proficiency who wish to participate in a national service program; 

(20) collaborate with the training and technical assistance 

programs described in subtitle J with respect to the activities 

described in section 199N(b)); 

(21) coordinate the clearinghouses described in section 

1980; 

(22) coordinate with entities receiving funds under subtitle 

C in establishing the National Service Reserve Corps under 

section 198H, through which alumni of the national service 

programs and veterans can serve in disasters and emergencies 

(as such terms are defined in section 198H(a)); 

(23) identify and implement strategies to increase awareness among Indian tribes of the types and availability of assistance under the national service laws, increase Native American participation in programs under the national service laws, 

collect information on challenges facing Native American communities, and designate a Strategic Advisor for Native American Affairs to be responsible for the execution of those activities under the national service laws; 

(24) conduct outreach to ensure the inclusion of economically disadvantaged individuals in national service programs 

and activities authorized under the national service laws; and 

(25) ensure that outreach, awareness, and recruitment efforts are consistent with the Americans with Disabilities Act of 

1990 (42 U.S.C. 12101 et seq.) and section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794). 

(c) POWERS.-ln addition to the authority conferred on the 

Chief Executive Officer under any other provision of the national 

service laws, the Chief Executive Officer may- ( 1) establish, alter, consolidate, or discontinue such organizational units or components within the Corporation as the 

Chief Executive Officer considers necessary or appropriate, 

consistent with Federal law, and shall, to the maximum extent 

practicable, consolidate such units or components of the divisions of the Corporation described in section 194(a)(3) as may 

be appropriate to enable the two divisions to coordinate common support functions; 

(2) with the approval of the President, arrange with and 

reimburse the heads of other Federal agencies for the performance of any of the provisions of the national service laws; 

(3) with their consent, utilize the services and facilities of 

Federal agencies with or without reimbursement, and, with the 

consent of any State, or political subdivision of a State, accept 

and utilize the services and facilities of the agencies of such 

State or subdivisions without reimbursement; 

( 4) allocate and expend funds made available under the 

national service laws; 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

131 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 193A 

(5) disseminate, without regard to the provisions of section 

3204 of title 39, United States Code, data and information, in 

such form as the Chief Executive Officer shall determine to be 

appropriate to public agencies, private organizations, and the 

general public; 

(6) collect or compromise all obligations to or held by the 

Chief Executive Officer and all legal or equitable rights accruing to the Chief Executive Officer in connection with the payment of obligations in accordance with chapter 37 of title 31, 

United States Code (commonly known as the "Federal Claims 

Collection Act of 1966"); 

(7) file a civil action in any court of record of a State having general jurisdiction or in any district court of the United 

States, with respect to a claim arising under this Act; 

(8) exercise the authorities of the Corporation under section 196; 

(9) consolidate the reports to the authorizing committees 

required under the national service laws, and the report required under section 9106 of title 31, United States Code, into 

a single report, and submit the report to the authorizing committees on an annual basis; 

(10) obtain the opinions of peer reviewers in evaluating applications to the Corporation for assistance under this title; 

and 

(11) generally perform such functions and take such steps 

consistent with the objectives and provisions of the national 

service laws, as the Chief Executive Officer determines to be 

necessary or appropriate to carry out such provisions. 

(d) DELEGATION.- (1) DEFINITION.-As used in this subsection, the term 

"function" means any duty, obligation, power, authority, responsibility, right, privilege, activity, or program. 

(2) IN GENERAL.-Except as otherwise prohibited by law or 

provided in the national service laws, the Chief Executive Officer may delegate any function under this Act, and authorize 

such successive redelegations of such function as may be necessary or appropriate. No delegation of a function by the Chief 

Executive Officer under this subsection or under any other provision of this Act shall relieve such Chief Executive Officer of 

responsibility for the administration of such function. 

(3) FUNCTION OF BOARD.-The Chief Executive Officer may 

not delegate a function of the Board without the permission of 

the Board. 

(e) ACTIONS.-ln an action described in subsection (c)(7)- (1) a district court referred to in such subsection shall have 

jurisdiction of such a civil action without regard to the amount 

in controversy; 

(2) such an action brought by the Chief Executive Officer 

shall survive notwithstanding any change in the person occupying the office of Chief Executive Officer or any vacancy in 

that office; 

(3) no attachment, injunction, garnishment, or other similar process, mesne or final, shall be issued against the Chief 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 193A NATIONAL AND COMMUNITY SERVICE ACT OF 1990 132 

Executive Officer or the Board or property under the control of 

the Chief Executive Officer or the Board; and 

(4) nothing in this section shall be construed to except litigation arising out of activities under this Act from the application of sections 509, 517, 547, and 2679 of title 28, United 

States Code. 

(f) EVALUATIONS.- (1) EVALUATION OF LIVING ALLOWANCE.-The Corporation 

shall arrange for an independent evaluation to determine the 

levels of living allowances paid in all programs under subtitles 

C and I, individually, by State, and by region. Such evaluation 

shall determine the effects that such living allowances have 

had on the ability of individuals to participate in such programs. 

(2) EVALUATION OF SUCCESS OF INVESTMENT IN NATIONAL 

SERVICE.-

(A) EVALUATION REQUIRED.-The Corporation shall arrange for the independent evaluation of the operation of 

subtitle C to determine the levels of participation of economically disadvantaged individuals in national service 

programs carried out or supported using assistance provided under section 121. 

(B) PERIOD COVERED BY EVALUATION.-The evaluation 

required by this paragraph shall cover the period beginning on the date the Corporation first makes a grant 

under section 121, and ending on a date that is as close 

as is practicable to the the first date that a report is submitted under subsection (b)(ll) after the effective date of 

the Serve America Act. 

(C) INCOME LEVELS OF PARTICIPANTS.-The evaluating 

entity shall determine the total income of each participant 

who serves, during the period covered by the evaluation, in 

a national service program carried out or supported using 

assistance provided under section 121 or in an approved 

national service position. The total income of the participant shall be determined as of the date the participant 

was first selected to participate in such a program and 

shall include family total income unless the evaluating entity determines that the participant was independent at 

the time of selection. 

(D) AsSISTANCE FOR DISTRESSED AREAS.-The evaluating entity shall also determine the amount of assistance 

provided under section 121 during the period covered by 

the report that has been expended for projects conducted 

in areas of economic distress described in section 133(c)(6). 

(E) DEFINITIONS.-As used in this paragraph: 

(i) INDEPENDENT.-The term "independent" has 

the meaning given the term in section 480(d) of the 

Higher Education Act of 1965 (20 U.S.C. 1087vv(d)). 

(ii) TOTAL INCOME.-The term "total income" has 

the meaning given the term in section 480(a) of the 

Higher Education Act of 1965 (20 U.S.C. 1087vv(a)). 

(g) RECRUITMENT AND PuBLIC AWARENESS FUNCTIONS.- May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

133 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 194 

(1) EFFORT.-The Chief Executive Officer shall ensure that 

the Corporation, in carrying out the recruiting and public 

awareness functions of the Corporation, shall expend at least 

the level of effort on recruitment and public awareness activities related to the programs carried out under the Domestic 

Volunteer Service Act of 1973 (42 U.S.C. 4950 et seq.) as ACTION expended on recruitment and public awareness activities 

related to programs under the Domestic Volunteer Service Act 

of 1973 during fiscal year 1993. 

(2) PERSONNEL.-The Chief Executive Officer shall assign 

or hire, as necessary, such additional national, regional, and 

State personnel to carry out such recruiting and public awareness functions as may be necessary to ensure that such functions are carried out in a timely and effective manner. The 

Chief Executive Officer shall give priority in the hiring of such 

additional personnel to individuals who have formerly served 

as volunteers in the programs carried out under the Domestic 

Volunteer Service Act of 1973 or similar programs, and to individuals who have specialized experience in the recruitment of 

volunteers. 

(3) FUNDS.-For the first fiscal year after the effective date 

of this subsection, and for each fiscal year thereafter, for the 

purpose of carrying out such recruiting and public awareness 

functions, the Chief Executive Officer shall obligate not less 

than 1.5 percent of the amounts appropriated for the fiscal 

year under section 501(a) of the Domestic Volunteer Service 

Act of 1973. 

(h) AUTHORITY To CONTRACT WITH BUSINESSES.-The Chief 

Executive Officer may, through contracts or cooperative agreements, carry out the marketing duties described in subsection 

(b)(13), with priority given to those entities that have established 

expertise in the recruitment of disadvantaged youth, members of 

Indian tribes, and older adults. 

(i) CAMPAIGN To SOLICIT FUNDS.-The Chief Executive Officer 

may conduct a campaign to solicit funds to conduct outreach and 

recruitment campaigns to recruit a diverse population of service 

sponsors of, and participants in, programs and projects receiving 

assistance under the national service laws. 

SEC. 194. [42 U.S.C. 12651e] OFFICERS. 

(a) MANAGING DIRECTORS.- (1) IN GENERAL.-There shall be in the Corporation 2 Managing Directors, who shall be appointed by the President, by 

and with the advice and consent of the Senate, and who shall 

report to the Chief Executive Officer. 

(2) COMPENSATION.-The Managing Directors shall be compensated at the rate provided for level IV of the Executive 

Schedule under section 5315 of title 5, United States Code. 

(3) DUTIES.-The Corporation shall determine the programs for which the Managing Directors shall have primary 

responsibility and shall establish the divisions of the Corporation to be headed by the Managing Directors. 

(b) INSPECTOR GENERAL.- May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 194 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 134 

(1) OFFICE.-There shall be in the Corporation an Office of 

the Inspector General. 

(2) APPOINTMENT.-The Office shall be headed by an Inspector General, appointed in accordance with the Inspector 

General Act of 1978. 

(c) CHIEF FINANCIAL OFFICER.- (1) IN GENERAL.-There shall be in the Corporation a Chief 

Financial Officer, who shall be appointed by the Chief Executive Officer pursuant to subsections (a) and (b) of section 195. 

(2) DUTIES.-The Chief Financial Officer shall- (A) report directly to the Chief Executive Officer regarding financial management matters; 

(B) oversee all financial management activities relating to the programs and operations of the Corporation; 

(C) develop and maintain an integrated accounting 

and financial management system for the Corporation, including financial reporting and internal controls; 

(D) develop and maintain any joint financial management systems with the Department of Education necessary 

to carry out the programs of the Corporation; and 

(E) direct, manage, and provide policy guidance and 

oversight of the financial management personnel, activities, and operations of the Corporation. 

(d) ASSISTANT DIRECTORS FOR VISTA AND NATIONAL SENIOR 

VOLUNTEER CORPS.- (1) APPOINTMENT.-One of the Managing Directors appointed under subsection (a) shall, in accordance with applicable provisions of title 5, United States Code, appoint 4 Assistant Directors who shall report directly to such Managing Director, of which- (A) 1 Assistant Director shall be responsible for programs carried out under parts A and B of title I of the Domestic Volunteer Service Act of 1973 (the Volunteers in 

Service to America (VISTA) program) and other antipoverty programs under title I of that Act; 

(B) 1 Assistant Director shall be responsible for programs carried out under part A of title II of that Act (relating to the Retired Senior Volunteer Program); 

(C) 1 Assistant Director shall be responsible for programs carried out under part B of title II of that Act (relating to the Foster Grandparent Program); and 

(D) 1 Assistant Director shall be responsible for programs carried out under part C of title II of that Act (relating to the Senior Companion Program). 

(2) EFFECTIVE DATE FOR EXERCISE OF AUTHORITY.-Each 

Assistant Director appointed pursuant to paragraph (1) may 

exercise the authority assigned to each such Director only after 

the effective date of section 203(c)(2) of the National and Community Service Trust Act of 1993. 

SEC. 195. [42 U.S.C. 12651f] EMPLOYEES, CONSULTANTS, AND OTHER 

PERSONNEL. 

(a) EMPLOYEES.-Except as provided in subsection (b), section 

194(d), and section BE of the Inspector General Act of 1978, the 

Chief Executive Officer shall, in accordance with applicable proviMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

135 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 195 

sions of title 5, United States Code, appoint and determine the 

compensation of such employees as the Chief Executive Officer determines to be necessary to carry out the duties of the Corporation. 

(b) ALTERNATIVE PERSONNEL SYSTEM.- (1) AUTHORITY.-The Chief Executive Officer may designate positions in the Corporation as positions to which the 

Chief Executive Officer may make appointments, and for which 

the Chief Executive Officer may determine compensation, without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, and without 

regard to the provisions of chapter 51 and subchapter III of 

chapter 53 of such title relating to classification and General 

Schedule pay rates, to the extent the Chief Executive Officer 

determines that such a designation is appropriate and desirable to further the effective operation of the Corporation. The 

Chief Executive Officer may provide for appointments to such 

positions to be made on a limited term basis. 

(2) APPOINTMENT IN THE COMPETITIVE SERVICE AFTER EMPLOYMENT UNDER ALTERNATIVE PERSONNEL SYSTEM.-The Director of the Office of Personnel Management may grant competitive status for appointment to the competitive service, 

under such conditions as the Director may prescribe, to an employee who is appointed under this subsection and who is separated from the Corporation (other than by removal for cause). 

(3) SELECTION AND COMPENSATION SYSTEM.- (A) ESTABLISHMENT OF SYSTEM.-The Chief Executive 

Officer, after obtaining the approval of the Director of the 

Office of Personnel Management, shall issue regulations 

establishing a selection and compensation system for employees of the Corporation appointed under paragraph (1). 

In issuing such regulations, the Chief Executive Officer 

shall take into consideration the need for flexibility in such 

a system. 

(B) APPLICATION.-The Chief Executive Officer shall 

appoint and determine the compensation of employees in 

accordance with the selection and compensation system established under subparagraph (A). 

(C) SELECTION.-The system established under subparagraph (A) shall provide for the selection of employees- (i) through a competitive process; and 

(ii) on the basis of the qualifications of applicants 

and the requirements of the positions. 

(D) COMPENSATION.-The system established under 

subparagraph (A) shall include a scheme for the classification of positions in the Corporation. The system shall require that the compensation of an employee be determined 

in part on the basis of the job performance of the employee, and in a manner consistent with the principles described in section 5301 of title 5, United States Code. The 

rate of compensation for each employee compensated 

under the system shall not exceed the annual rate of basic 

pay payable for level IV of the Executive Schedule under 

section 5315 of title 5, United States Code. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 195 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 136 

(c) CORPORATION REPRESENTATIVE IN EACH STATE.- (1) DESIGNATION OF REPRESENTATIVE.-The Corporation 

shall designate 1 employee of the Corporation for each State or 

group of States to serve as the representative of the Corporation in the State or States and to assist the Corporation in carrying out the activities described in the national service laws 

in the State or States. 

(2) DUTIES.-The representative designated under this 

subsection for a State or group of States shall serve as the liaison between- (A) the Corporation and the State Commission that is 

established in the State or States; 

(B) the Corporation and any subdivision of a State, 

territory, Indian tribe, public or private nonprofit organization, or institution of higher education, in the State or 

States, that is awarded a grant under section 121 directly 

from the Corporation; and 

(C) after the effective date of section 203(c)(2) of the 

National and Community Service Trust Act of 1993, the 

State Commission and the Corporation employee responsible for programs under the Domestic Volunteer Service 

Act of 1973 in the State, if the employee is not the representative described in paragraph (1) for the State. 

(3) NONVOTING MEMBER OF STATE COMMISSION.-The representative designated under this subsection for a State or 

group of States shall also serve as a nonvoting member of the 

State Commission established in the State or States, as described in section l 78(c)(3). 

(4) COMPENSATION.-If the employee designated under 

paragraph (1) is an employee whose appointment was made 

pursuant to section 195(b), the rate of compensation for such 

employee may not exceed the maximum rate of basic pay payable for GS-13 of the General Schedule under section 5332 of 

title 5, United States Code. 

(d) CONSULTANTS.-The Chief Executive Officer may procure 

the temporary and intermittent services of experts and consultants 

and compensate the experts and consultants in accordance with 

section 3109(b) of title 5, United States Code. 

(e) DETAILS OF PERSONNEL.-The head of any Federal department or agency may detail on a reimbursable basis, or on a nonreimbursable basis for not to exceed 180 calendar days during any 

fiscal year, as agreed upon by the Chief Executive Officer and the 

head of the Federal agency, any of the personnel of that department or agency to the Corporation to assist the Corporation in carrying out the duties of the Corporation under the national service 

laws. Any detail shall not interrupt or otherwise affect the civil 

service status or privileges of the Federal employee. 

(f) ADVISORY COMMITTEES.- (!) ESTABLISHMENT.-The Chief Executive Officer, acting 

upon the recommendation of the Board, may establish advisory 

committees in the Corporation to advise the Board with respect 

to national service issues, such as the type of programs to be 

established or assisted under the national service laws, priorMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

137 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 196 

ities and criteria for such programs, and methods of conducting 

outreach for, and evaluation of, such programs. 

(2) C0MP0SITION.-Such an advisory committee shall be 

composed of members appointed by the Chief Executive Officer, 

with such qualifications as the Chief Executive Officer may 

specify. 

(3) EXPENSES.-Members of such an advisory committee 

may be allowed travel expenses as described in section 

192A(d). 

(4) STAFF.-

(A) IN GENERAL.-Except as provided in subparagraph 

(B), the Chief Executive Officer is authorized to appoint 

and fix the compensation of such staff as the Chief Executive Officer determines to be necessary to carry out the 

functions of the advisory committee, without regard to-- (i) the provisions of title 5, United States Code, 

governing appointments in the competitive service; 

and 

(ii) the provisions of chapter 51 and subchapter III 

of chapter 53 of such title relating to classification and 

General Schedule pay rates. 

(B) C0MPENSATION.-If a member of the staff appointed under subparagraph (A) was appointed without regard to the provisions described in clauses (i) and (ii) of 

subparagraph (A), the rate of compensation for such member may not exceed the maximum rate of basic pay payable for GS-13 of the General Schedule under section 5332 

of title 5, United States Code. 

(g) PERSONAL SERVICES C0NTRACTS.-The Corporation may 

enter into personal services contracts to carry out research, evaluation, and public awareness related to the national service laws. 

SEC.196. [42 U.S.C.12651g] ADMINISTRATION. 

(a) D0NATIONS.­

(1) SERVICES.- (A) ORGANIZATIONS AND INDIVIDUALS.-Notwithstanding section 1342 of title 31, United States Code, the 

Corporation may solicit and accept the services of organizations and individuals (other than participants) to assist 

the Corporation in carrying out the duties of the Corporation under the national service laws, and may provide to 

such individuals the travel expenses described in section 

192A(d). 

(B) LIMITATION.-A person who provides assistance, either individually or as a member of an organization, in accordance with subparagraph (A) shall not be considered to 

be a Federal employee and shall not be subject to the provisions of law relating to Federal employment, including 

those relating to hours of work, rates of compensation, 

leave, unemployment compensation, and Federal employee 

benefits, except that- (i) for the purposes of the tort claims provisions of 

chapter 171 of title 28, United States Code, such a 

person shall be considered to be a Federal employee; 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 196 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 138 

(ii) for the purposes of subchapter I of chapter 81 

of title 5, United States Code, relating to compensation to Federal employees for work injuries, such persons shall be considered to be employees, as defined in 

section 8101(1)(B) of title 5, United States Code, and 

the provisions of such subchapter shall apply; and 

(iii) for purposes of the provisions of chapter 11 of 

part I of title 18, United States Code, such a person 

(to whom such provisions would not otherwise apply 

except for this subsection) shall be a special Government employee. 

(C) INHERENTLY GOVERNMENTAL FUNCTION.- (i) IN GENERAL.-Such a person shall not carry out 

an inherently governmental function. 

(ii) REGULATIONS.-The Chief Executive Officer 

shall promulgate regulations to carry out this subparagraph. 

(iii) INHERENTLY GOVERNMENTAL FUNCTION.-As 

used in this subparagraph, the term "inherently governmental function" means any activity that is so intimately related to the public interest as to mandate 

performance by an officer or employee of the Federal 

Government, including an activity that requires either 

the exercise of discretion in applying the authority of 

the Government or the use of value judgment in making a decision for the Government. 

(2) PROPERTY.- (A) IN GENERAL.-The Corporation may solicit, accept, 

hold, administer, use, and dispose of, in furtherance of the 

purposes of the national service laws, donations of any 

money or property, real, personal, or mixed, tangible or intangible, received by gift, devise, bequest, or otherwise. 

Donations accepted under this subparagraph shall be used 

as nearly as possible in accordance with the terms, if any, 

of such donation. 

(B) STATUS OF CONTRIBUTION.-Any donation accepted 

under subparagraph (A) shall be considered to be a gift, 

devise, or bequest to, or for the use of, the United States. 

(C) RULES.-The Chief Executive Officer shall establish written rules to ensure that the solicitation, acceptance, holding, administration, and use of property described in subparagraph (A}- (i) will not reflect unfavorably upon the ability of 

the Corporation, or of any officer or employee of the 

Corporation, to carry out the responsibilities or official 

duties of the Corporation in a fair and objective manner; and 

(ii) will not compromise the integrity of the programs of the Corporation or any official or employee of 

the Corporation involved in such programs. 

(D) DISPOSITION.-Upon completion of the use by the 

Corporation of any property accepted pursuant to subparagraph (A) (other than money or monetary proceeds from 

sales of property so accepted), such completion shall be reMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

139 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 1968 

ported to the General Services Administration and such 

property shall be disposed of in accordance with title II of 

the Federal Property and Administrative Services Act of 

1949 (40 U.S.C. 481 et seq.). 

(b) CONTRACTS.-Subject to the Federal Property and Administrative Services Act of 1949, the Corporation may enter into contracts, and cooperative and interagency agreements, with Federal 

and State agencies, private firms, institutions, and individuals to 

conduct activities necessary to assist the Corporation in carrying 

out the duties of the Corporation under the national service laws. 

(c) OFFICE OF MANAGEMENT AND BUDGET.-Appropriate circulars of the Office of Management and Budget shall apply to the 

Corporation. 

SEC. 196A. [42 U.S.C. 12651h] CORPORATION STATE OFFICES. 

(a) IN GENERAL.-The Chief Executive Officer shall establish 

and maintain a decentralized field structure that provides for an 

office of the Corporation for each State. The office for a State shall 

be located in, or in reasonable proximity to, such State. Only one 

such office may carry out the duties described in subsection (b) 

with respect to a State at any particular time. Such State office 

may be directed by the representative designated under section 

195(c). 

(b) DUTIES.-Each State office established pursuant to subsection (a) shall- (1) provide to the State Commissions established under 

section 178 technical and other assistance for the development 

and implementation of national service plans under section 

178(e)(l); 

(2) provide to community-based agencies and other entities 

within the State technical assistance for the preparation of applications for assistance under the national service laws, utilizing, as appropriate, information and materials provided by 

the clearinghouses established pursuant to section 198A; 

(3) provide to the State Commission and other entities 

within the State support and technical assistance necessary to 

assure the existence of an effective system of recruitment, 

placement, and training of volunteers within the State; 

(4) monitor and evaluate the performance of all programs 

and projects within the State that receive assistance under the 

national service laws; and 

(5) perform such other duties and functions as may be assigned or delegated by the Chief Executive Officer. 

SEC.196B. [42 U.S.C.12651j] ASSIGNMENT TO STATE COMMISSIONS. 

(a) AsSIGNMENT.-ln accordance with section 193A(c)(l), the 

Chief Executive Officer may assign to State Commissions specific 

programmatic functions upon a determination that such an assignment will increase efficiency in the operation or oversight of a program under the national service laws. In carrying out this section, 

and before executing any assignment of authority, the Corporation 

shall seek input from and consult Corporation employees, State 

Commissions, State educational agencies, and other interested 

stakeholders. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 196C NATIONAL AND COMMUNITY SERVICE ACT OF 1990 140 

(b) REPORT.-Not later than 2 years after the effective date of 

the Serve America Act, the Corporation shall submit a report to the 

authorizing committees describing the consultation process described in subsection (a), including the stakeholders consulted, the 

recommendation of stakeholders, and any actions taken by the Corporation under this section. 

SEC. 196C. [42 U.S.C. 12651k] STUDY OF INVOLVEMENT OF VETERANS. 

(a) STUDY AND REPORT.-The Corporation shall conduct a 

study and submit a report to the authorizing committees, not later 

than 3 years after the effective date of the Serve America Act, on­

(1) the number of veterans serving in national service pro- grams historically by year; 

(2) strategies being undertaken to identify the specific 

areas of need of veterans, including any goals set by the Corporation for veterans participating in the service programs; 

(3) the impact of the strategies described in paragraph (2) 

and the Veterans Corps on enabling greater participation by 

veterans in the national service programs carried out under 

the national service laws; 

( 4) how existing programs and activities carried out under 

the national service laws could be improved to serve veterans, 

veterans service organizations, families of active-duty military, 

including gaps in services to veterans; 

(5) the extent to which existing programs and activities 

carried out under the national service laws are coordinated and 

recommendations to improve such coordination including the 

methods for ensuring the efficient financial organization of 

services directed towards veterans; and 

(6) how to improve utilization of veterans as resources and 

volunteers. 

(b) CONSULTATION.-ln conducting the studies and preparing 

the reports required under this subsection, the Corporation shall 

consult with veterans' service organizations, the Secretary of Veterans Affairs, State veterans agencies, the Secretary of Defense, as 

appropriate, and other individuals and entities the Corporation 

considers appropriate. 

Subtitle H-Investment for Quality and 

Innovation 

PART I-ADDITIONAL CORPORATION 

ACTIVITIES TO SUPPORT NATIONAL SERVICE 

SEC. 198. [42 U.S.C. 12653] ADDITIONAL CORPORATION ACTIVITIES TO 

SUPPORT NATIONAL SERVICE. 

(a) METHODS OF CONDUCTING ACTMTIES.-The Corporation 

may carry out this section directly (except as provided in subsection (g)) or through grants, contracts, and cooperative agreements with other entities. 

(b) INNOVATION AND QUALITY IMPROVEMENT.-The Corporation 

may undertake activities to address emergent needs through sumMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

141 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 198 

mer programs and other activities, and to support service-learning 

programs and national service programs, including- (1) programs, including programs for rural youth, under 

subtitle B or C; 

(2) employer-based retiree programs; 

(3) intergenerational programs; 

( 4) programs involving individuals with disabilities as participants providing service; and 

(5) programs sponsored by Governors. 

(c) CONFERENCES AND MATERIALS.-The Corporation may organize and hold conferences, and prepare and publish materials, to 

disseminate information and promote the sharing of information 

among programs for the purpose of improving the quality of programs and projects. 

(d) RESEARCH.-The Corporation may support research on national service, including service-learning. 

(e) YOUTH LEADERSHIP.-The Corporation may support activities to enhance the ability of youth and young adults to play leadership roles in national service. 

(f) NATIONAL PROGRAM IDENTITY.-The Corporation may support the development and dissemination of materials, including 

training materials, and arrange for uniforms and insignia, designed 

to promote unity and shared features among programs that receive 

assistance under the national service laws. 

(g) GLOBAL YOUTH SERVICE DAY.- (1) DESIGNATION.-April 24, 2009, and April 23, 2010, are 

each designated as "Global Youth Service Days". The President 

is authorized and directed to issue a proclamation calling on 

the people of the United States to observe the day with appropriate youth-led community improvement and service-learning 

activities. 

(2) FEDERAL ACTMTIES.-ln order to observe Global Youth 

Service Day at the Federal level, the Corporation and other 

Federal departments and agencies may organize and carry out 

appropriate youth-led community improvement and servicelearning activities. 

(3) ACTMTIES.-The Corporation and other Federal departments and agencies may make grants to public or private 

nonprofit organizations with demonstrated ability to carry out 

appropriate activities, in order to support such activities on 

Global Youth Service Day. 

(h) AsSISTANCE FOR HEAD START.-The Corporation may make 

grants to, and enter into contracts and cooperative agreements 

with, public or nonprofit private agencies and organizations that 

receive grants or contracts under the Foster Grandparent Program 

(part B of title II of the Domestic Volunteer Service Act of 1973 (29 

U.S.C. 5011 et seq.)), for projects of the type described in section 

211(a) of such Act (29 U.S.C. 5011) operating under memoranda of 

agreement with the Corporation, for the purpose of increasing the 

number of low-income individuals who provide services under such 

program to children who participate in Head Start programs under 

the Head Start Act (42 U.S.C 9831 et seq). 

(i) MARTIN LUTHER KING, JR., SERVICE DAY.- May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 198 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 142 

(1) AssISTANCE.-The Corporation may make grants to eligible entities described in paragraph (2) to pay for the Federal 

share of the cost of planning and carrying out service opportunities in conjunction with the Federal legal holiday honoring 

the birthday of Martin Luther King, Jr. Such service opportunities shall consist of activities reflecting the life and teachings 

of Martin Luther King, Jr., such as cooperation and understanding among racial and ethnic groups, nonviolent conflict 

resolution, equal economic and educational opportunities, and 

social justice. 

(2) ELIGIBLE ENTITIES.-Any entity otherwise eligible for 

assistance under the national services laws shall be eligible to 

receive a grant under this subsection. 

(3) [repealed] 

( 4) FEDERAL SHARE.-Grants provided under this subsection to an eligible entity to support the planning and carrying out of a service opportunity in conjunction with the Federal legal holiday honoring the birthday of Martin Luther 

King, Jr., together with all other Federal funds used to plan 

or carry out the service opportunity, may not exceed 30 percent 

of the cost of planning and carrying out the service opportunity. 

(5) CALCULATION OF ENTITY CONTRIBUTIONS.-ln determining the non-Federal share of the costs of planning and carrying out a service opportunity supported by a grant under this 

subsection, the Corporation shall consider in-kind contributions 

(including facilities, equipment, and services) made to plan or 

carry out the service opportunity. G) CALL TO SERVICE CAMPAIGN.-Not later than 180 days after 

the date of enactment of the Serve America Act, the Corporation 

shall conduct a nationwide "Call To Service" campaign, to encourage all people of the United States, regardless of age, race, ethnicity, religion, or economic status, to engage in full- or part-time 

national service, long- or short-term public service in the nonprofit 

sector or government, or volunteering. In conducting the campaign, 

the Corporation may collaborate with other Federal agencies and 

entities, State Commissions, Governors, nonprofit and faith-based 

organizations, businesses, institutions of higher education, elementary schools, and secondary schools. 

(k) SEPTEMBER 11TH DAY OF SERVICE.- (1) FEDERAL ACTIVITIES.-The Corporation may organize 

and carry out appropriate ceremonies and activities, which 

may include activities that are part of the broader Call to Service Campaign under subsection G), in order to observe the September 11th National Day of Service and Remembrance at the 

Federal level. 

(2) ACTIVITIES.-The Corporation may make grants and 

provide other support to community-based organizations to assist in planning and carrying out appropriate service, charity, 

and remembrance opportunities in conjunction with the September 11th National Day of Service and Remembrance. 

(3) CONSULTATION.-The Corporation may consult with 

and make grants or provide other forms of support to nonprofit 

organizations with expertise in representing families of victims 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

143 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 1988 

of the September 11, 2001 terrorist attacks and other impacted 

constituencies, and in promoting the establishment of September 11 as an annually recognized National Day of Service 

and Remembrance. 

SEC. 198A. [42 U.S.C. 12653a] PRESIDENTIAL AWARDS FOR SERVICE. 

(a) PRESIDENTIAL AWARDS.- (1) IN GENERAL.-The President, acting through the Corporation, may make Presidential awards for service to individuals providing significant service, and to outstanding service 

programs. 

(2) INDIVIDUALS AND PROGRAMS.-N otwithstanding section 

101- (A) an individual receiving an award under this subsection need not be a participant in a program authorized 

under this Act; and 

(B) a program receiving an award under this subsection need not be a program authorized under this Act. 

(3) NATURE OF AWARD.-ln making an award under this 

section to an individual or program, the President, acting 

through the Corporation- (A) is authorized to incur necessary expenses for the 

honorary recognition of the individual or program; and 

(B) is not authorized to make a cash award to such individual or program. 

(b) INFORMATION.-The President, acting through the Corporation, shall ensure that information concerning individuals and programs receiving awards under this section is widely disseminated. 

SEC. 198B. [42 U.S.C. 12653b] SERVEAMERICA FELLOWSHIPS. 

(a) DEFINITIONS.-ln this section: 

(1) AREA OF NATIONAL NEED.-The term "area of national 

need" means an area involved in efforts to--- (A) improve education in schools for economically disadvantaged students; 

(B) expand and improve access to health care; 

(C) improve energy efficiency and conserve natural resources; 

(D) improve economic opportunities for economically 

disadvantaged individuals; or 

(E) improve disaster preparedness and response. 

(2) ELIGIBLE FELLOWSHIP RECIPIENT.-The term "eligible 

fellowship recipient" means an individual who is selected by a 

State Commission under subsection (c) and, as a result of such 

selection, is eligible for a ServeAmerica Fellowship. 

(3) FELLOW.-The term "fellow'' means an eligible fellowship recipient who is awarded a ServeAmerica Fellowship and 

is designated a fellow under subsection (e)(2). 

(4) SMALL SERVICE SPONSOR ORGANIZATION.-The term 

"small service sponsor organization" means a service sponsor 

organization described in subsection (d)(l) that has not more 

than 10 full-time employees and 10 part-time employees. 

(b) GRANTS.-

(1) IN GENERAL.-From the amounts appropriated under 

section 501(a)(4)(B) and allotted under paragraph (2)(A), the 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 1988 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 144 

Corporation shall make grants (including financial assistance 

and a corresponding allotment of approved national service positions), to the State Commission of each of the several States, 

the District of Columbia, and the Commonwealth of Puerto 

Rico with an application approved under this section, to enable 

such State Commissions to award Serve.America Fellowships 

under subsection (e). 

(2) ALLOTMENT; ADMINISTRATIVE COSTS.- (A) ALLOTMENT.-The amount allotted to a State Commission for a fiscal year shall be equal to an amount that 

bears the same ratio to the amount appropriated under 

section 501(a)(4)(B), as the population of the State bears to 

the total population of the several States, the District of 

Columbia, and the Commonwealth of Puerto Rico. 

(B) REALLOTMENT.-If a State Commission does not 

apply for an allotment under this subsection for any fiscal 

year, or if the State Commission's application is not approved, the Corporation shall reallot the amount of the 

State Commission's allotment to the remaining State Commissions in accordance with subparagraph (A). 

(C) ADMINISTRATIVE COSTS.-Of the amount allotted to 

a State Commission under subparagraph (A), not more 

than 1.5 percent of such amount may be used for administrative costs. 

(3) NUMBER OF POSITIONS.-The Corporation shall- (A) establish or increase the number of approved national service positions under this subsection during each 

of fiscal years 2010 through 2014; 

(B) establish the number of approved positions at 500 

for fiscal year 2010; and 

(C) increase the number of the approved positions to­

(i) 750 for fiscal year 2011; 

(ii) 1,000 for fiscal year 2012; 

(iii) 1,250 for fiscal year 2013; and 

(iv) 1,500 for fiscal year 2014. 

(4) USES OF GRANT FUNDS.- (A) REQUIRED USES.-A grant awarded under this subsection shall be used to enable fellows to carry out service 

projects in areas of national need. 

(B) PERMITTED USES.-A grant awarded under this 

subsection may be used for- (i) oversight activities and mechanisms for the 

service sites of the fellows, as determined necessary by 

the State Commission or the Corporation, which may 

include site visits; 

(ii) activities to augment the experience of fellows, 

including activities to engage the fellows in networking opportunities with other national service participants; and 

(iii) recruitment or training activities for fellows. 

(5) APPLICATIONS.-To be eligible to receive a grant under 

this subsection, a State Commission shall submit an application to the Corporation at such time, in such manner, and containing such information as the Corporation may require, inMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

145 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 1988 

eluding information on the criteria and procedures that the 

State Commission will use for overseeing ServeAmerica Fellowship placements for service projects, under subsection (e). 

(c) ELIGIBLE FELLOWSHIP RECIPIENTS.- (1) APPLICATION.- (A) IN GENERAL.-An applicant desiring to become an 

eligible fellowship recipient shall submit an application to 

a State Commission that has elected to participate in the 

program authorized under this section, at such time and in 

such manner as the Commission may require, and containing the information described in subparagraph (B) and 

such additional information as the Commission may require. An applicant may submit such application to only 1 

State Commission for a fiscal year. 

(B) C0NTENTS.-The Corporation shall specify information to be provided in an application submitted under 

this subsection, which- (i) shall include- (!) a description of the area of national need 

that the applicant intends to address in the service project; 

(II) a description of the skills and experience 

the applicant has to address the area of national 

need; 

(Ill) a description of the type of service the 

applicant plans to provide as a fellow; and 

(IV) information identifying the local area 

within the State served by the Commission in 

which the applicant plans to serve for the service 

project; and 

(ii) may include, if the applicant chooses, the size 

of the registered service sponsor organization with 

which the applicant hopes to serve. 

(2) SELECTION.-Each State Commission shall- (A) select, from the applications received by the State 

Commission for a fiscal year, the number of eligible fellowship recipients that may be supported for that fiscal year 

based on the amount of the grant received by the State 

Commission under subsection (b); and 

(B) make an effort to award one-third of the fellowships available to the State Commission for a fiscal year, 

based on the amount of the grant received under subsection (b), to applicants who propose to serve the fellowship with small service sponsor organizations registered 

under subsection (d). 

(d) SERVICE SPONSOR ORGANIZATIONS.- (1) IN GENERAL.-Each service sponsor organization 

shall-

(A) be a nonprofit organization; 

(B) satisfy qualification criteria established by the 

Corporation or the State Commission, including standards 

relating to organizational capacity, financial management, 

and programmatic oversight; 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 1988 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 146 

(C) not be a recipient of other assistance, approved national service positions, or approved summer of service positions under the national service laws; and 

(D) at the time of registration with a State Commission, enter into an agreement providing that the service 

sponsor organization shall- (i) abide by all program requirements; 

(ii) provide an amount described in subsection 

(e)(3)(b) for each fellow serving with the organization 

through the ServeAmerica Fellowship; 

(iii) be responsible for certifying whether each fellow serving with the organization successfully completed the ServeAmerica Fellowship, and record and 

certify in a manner specified by the Corporation the 

number of hours served by a fellow for purposes of determining the fellow's eligibility for benefits; and 

(iv) provide timely access to records relating to the 

ServeAmerica Fellowship to the State Commission, the 

Corporation, and the Inspector General of the Corporation. 

(2) REGISTRATION.- (A) REQUIREMENT.-No service sponsor organization 

may receive a fellow under this section until the organization registers with the State Commission. 

(B) CLEARINGHOUSE.-The State Commission shall 

maintain a list of registered service sponsor organizations 

on a public website. 

(C) REVOCATION.-If a State Commission determines 

that a service sponsor organization is in violation of any of 

the applicable provisions of this section- (i) the State Commission shall revoke the registration of the organization; 

(ii) the organization shall not be eligible to receive 

assistance, approved national service positions, or approved summer of service positions under this title for 

not less than 5 years; and 

(iii) the State Commission shall have the right to 

remove a fellow from the organization and relocate the 

fellow to another site. 

(e) FELLOWS.- (1) IN GENERAL.-To be eligible to participate in a service 

project as a fellow and receive a ServeAmerica Fellowship, an 

eligible fellowship recipient shall- (A) within 3 months after being selected as an eligible 

fellowship recipient by a State Commission, select a registered service sponsor organization described in subsection ( d}- (i) with which the recipient is interested in serving under this section; and 

(ii) that is located in the State served by the State 

Commission; 

(B) enter into an agreement with the organization- (i) that specifies the service the recipient will provide if the placement is approved; and 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

147 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 1988 

(ii) in which the recipient agrees to serve for 1 

year on a full-time or part-time basis (as determined 

by the Corporation); and 

(C) submit such agreement to the State Commission. 

(2) AWARD.-Upon receiving the eligible fellowship recipient's agreement under paragraph (1), the State Commission 

shall award a ServeAmerica Fellowship to the recipient and 

designate the recipient as a fellow. 

(3) FELLOWSHIP AMOUNT.- (A) IN GENERAL.-From amounts received under subsection (b), each State Commission shall award each of the 

State's fellows a ServeAmerica Fellowship amount that is 

equal to 50 percent of the amount of the average annual 

VISTA subsistence allowance. 

(B) AMOUNT FROM SERVICE SPONSOR ORGANIZATION.- (i) IN GENERAL.-Except as provided in clause (ii) 

and subparagraph (E), the service sponsor organization shall award to the fellow serving such organization an amount that will ensure that the total award 

received by the fellow for service in the service project 

(consisting of such amount and the ServeAmerica Fellowship amount the fellow receives under subparagraph (A)) is equal to or greater than 70 percent of the 

average annual VISTA subsistence allowance. 

(ii) SMALL SERVICE SPONSOR ORGANIZATIONS.-ln 

the case of a small service sponsor organization, the 

small service sponsor organization may decrease the 

amount of the service sponsor organization award required under clause (i) to not less than an amount 

that will ensure that the total award received by the 

fellow for service in the service project (as calculated 

in clause (i)) is equal to or greater than 60 percent of 

the average annual VISTA subsistence allowance. 

(C) MAxlMUM LIVING ALLOWANCE.-The total amount 

that may be provided to a fellow under this subparagraph 

shall not exceed 100 percent of the average annual VISTA 

subsistence allowance. 

(D) PRORATION OF AMOUNT.-ln the case of a fellow 

who is authorized to serve a part-time term of service 

under the agreement described in paragraph (l)(B)(ii), the 

amount provided to a fellow under this paragraph shall be 

prorated accordingly. 

(E) WAIVER.-The Corporation may allow a State 

Commission to waive the amount required under subparagraph (B) from the service sponsor organization for a fellow serving the organization if- (i) such requirement is inconsistent with the objectives of the ServeAmerica Fellowship program; and 

(ii) the amount provided to the fellow under subparagraph (A) is sufficient to meet the necessary costs 

of living (including food, housing, and transportation) 

in the area in which the ServeAmerica Fellowship program is located. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 198C NATIONAL AND COMMUNITY SERVICE ACT OF 1990 148 

(F) DEFINITION.-ln this paragraph, the term "average 

annual VISTA subsistence allowance" means the total average annual subsistence allowance provided to VISTA volunteers under section 105 of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4955). 

(f) COMPLIANCE WITH INELIGIBLE SERVICE CATEGORIES.-Service under a ServeAmerica Fellowship shall comply with section 

132(a). For purposes of applying that section to this subsection, a 

reference to assistance shall be considered to be a reference to assistance provided under this section. 

(g) REPORTS.-Each service sponsor organization that receives 

a fellow under this section shall, on a biweekly basis, report to the 

Corporation on the number of hours served and the services provided by that fellow. The Corporation shall establish a web portal 

for the organizations to use in reporting the information. 

(h) EDUCATIONAL AWARDS.-A fellow who serves in a service 

project under this section shall be considered to have served in an 

approved national service position and, upon meeting the requirements of section 147 for full-time or part-time national service, 

shall be eligible for a national service educational award described 

in such section. The Corporation shall transfer an appropriate 

amount of funds to the National Service Trust to provide for the 

national service educational award for such fellow. 

SEC. 198C. [42 U.S.C. 12653c] SILVER SCHOLARSHIPS AND ENCORE FELLOWSHIPS. 

(a) SILVER SCHOLARSHIP GRANT PROGRAM.- (1) ESTABLISHMENT.-The Corporation may award fixedamount grants (in accordance with section 129(1)) to community-based entities to carry out a Silver Scholarship Grant Program for individuals age 55 or older, in which such individuals 

complete not less than 350 hours of service in a year carrying 

out projects of national need and receive a Silver Scholarship 

in the form of a $1,000 national service educational award. 

Under such a program, the Corporation shall establish criteria 

for the types of the service required to be performed to receive 

such award. 

(2) TERM.-Each program funded under this subsection 

shall be carried out over a period of 3 years (which may include 1 planning year), with a 1-year extension possible, if the 

program meets performance levels developed in accordance 

with section 179(k) and any other criteria determined by the 

Corporation. 

(3) APPLICATIONS.-To be eligible for a grant under this 

subsection, a community-based entity shall- (A) submit to the Corporation an application at such 

time and in such manner as the Chief Executive Officer 

may reasonably require; and 

(B) be a listed organization as described in subsection 

(b)(4). 

(4) COLLABORATION ENCOURAGED.-A community-based entity awarded a grant under this subsection is encouraged to 

collaborate with programs funded under title II of the Domestic Volunteer Service Act of 1973 in carrying out this program. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

149 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 198C 

(5) ELIGIBILITY FOR FELLOWSHIP.-An individual is eligible 

to receive a Silver Scholarship if the community-based entity 

certifies to the Corporation that the individual has completed 

not less than 350 hours of service under this section in a 1- year period. 

(6) TRANSFER TO TRUST.-The Corporation shall transfer 

an appropriate amount of funds to the National Service Trust 

to provide for the national service educational award for each 

silver scholar under this subsection. 

(7) SUPPORT SERVICES.-A community-based entity receiving a fixed-amount grant under this subsection may use a portion of the grant to provide transportation services to an eligible individual to allow such individual to participate in a service project. 

(b) ENCORE FELLOWSHIPS.- (!) ESTABLISHMENT.-The Corporation may award 1-year 

Encore Fellowships to enable individuals age 55 or older to­

(A) carry out service projects in areas of national need; 

and 

(B) receive training and development in order to transition to full- or part-time public service in the nonprofit 

sector or government. 

(2) PROGRAM.-ln carrying out the program, the Corporation shall-

(A) maintain a list of eligible organizations for which 

Encore Fellows may be placed to carry out service projects 

through the program and shall provide the list to all Fellowship recipients; and 

(B) at the request of a Fellowship recipient- (i) determine whether the requesting recipient is 

able to meet the service needs of a listed organization, 

or another organization that the recipient requests in 

accordance with paragraph (5)(B), for a service project; 

and 

(ii) upon making a favorable determination under 

clause (i), award the recipient with an Encore Fellowship, and place the recipient with the organization as 

an Encore Fellow under paragraph (5)(C). 

(3) ELIGIBLE RECIPIENTS.- (A) IN GENERAL.-An individual desiring to be selected 

as a Fellowship recipient shall- (i) be an individual who-- (1) is age 55 or older as of the time the individual applies for the program; and 

(11) is not engaged in, but who wishes to engage in, full- or part-time public service in the 

nonprofit sector or government; and 

(ii) submit an application to the Corporation, at 

such time, in such manner, and containing such information as the Corporation may require, including- (!) a description of the area of national need 

that the applicant hopes to address through the 

service project; 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 198C NATIONAL AND COMMUNITY SERVICE ACT OF 1990 150 

(II) a description of the skills and experience 

the applicant has to address an area of national 

need;and 

(III) information identifying the region of the 

United States in which the applicant wishes to 

serve. 

(B) SELECTION BASIS.-ln determining which individuals to select as Fellowship recipients, the Corporation 

shall-

(i) select not more than 10 individuals from each 

State; and 

(ii) give priority to individuals with skills and experience for which there is an ongoing high demand in 

the nonprofit sector and government. 

(4) LISTED ORGANIZATIONS.-To be listed under paragraph 

(2)(A), an organization shall- (A) be a nonprofit organization; and 

(B) submit an application to the Corporation at such 

time, in such manner, and containing such information as 

the Corporation may require, including- (i) a description of- (1) the services and activities the organization 

carries out generally; 

(II) the area of national need that the organization seeks to address through a service project; 

and 

(III) the services and activities the organization seeks to carry out through the proposed service project; 

(ii) a description of the skills and experience that 

an eligible Encore Fellowship recipient needs to be 

placed with the organization as an Encore Fellow for 

the service project; 

(iii) a description of the training and leadership 

development the organization shall provide an Encore 

Fellow placed with the organization to assist the Encore Fellow in obtaining a public service job in the 

nonprofit sector or government after the period of the 

Encore Fellowship; and 

(iv) evidence of the organization's financial stability. 

(5) PLACEMENT.- (A) REQUEST FOR PLACEMENT WITH LISTED ORGANIZATIONS.-To be placed with a listed organization in accordance with paragraph (2)(B) for a service project, an eligible 

Encore Fellowship recipient shall submit an application for 

such placement to the Corporation at such time, in such 

manner, and containing such information as the Corporation may require. 

(B) REQUEST FOR PLACEMENT WITH OTHER ORGANIZATION.-An eligible Encore Fellowship recipient may apply 

to the Corporation to serve the recipient's Encore Fellowship year with a nonprofit organization that is not a listed 

organization. Such application shall be submitted to the 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

151 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 198C 

Corporation at such time, in such manner, and containing 

such information as the Corporation shall require, and 

shall include- (i) an identification and description of­

(1) the organization; 

(II) the area of national need the organization 

seeks to address; and 

(III) the services or activities the organization 

carries out to address such area of national need; 

(ii) a description of the services the eligible Encore 

Fellowship recipient shall provide for the organization 

as an Encore Fellow; and 

(iii) a letter of support from the leader of the organization, including- (!) a description of the organization's need for 

the eligible Encore Fellowship recipient's services; 

(II) evidence that the organization is financially sound; 

(III) an assurance that the organization will 

provide training and leadership development to 

the eligible Encore Fellowship recipient if placed 

with the organization as an Encore Fellow, to assist the Encore Fellow in obtaining a public service job in the nonprofit sector or government after 

the period of the Encore Fellowship; and 

(IV) a description of the training and leadership development to be provided to the Encore 

Fellowship recipient if so placed. 

(C) PLACEMENT AND AWARD OF FELLOWSHIP.-If the 

Corporation determines that the eligible Encore Fellowship 

recipient is able to meet the service needs (including skills 

and experience to address an area of national need) of the 

organization that the eligible fellowship recipient requests 

under subparagraph (A) or (B), the Corporation shall- (i) approve the placement of the eligible Encore 

Fellowship recipient with the organization; 

(ii) award the eligible Encore Fellowship recipient 

an Encore Fellowship for a period of 1 year and designate the eligible Encore Fellowship recipient as an 

Encore Fellow; and 

(iii) in awarding the Encore Fellowship, make a 

payment, in the amount of $11,000, to the organization to enable the organization to provide living expenses to the Encore Fellow for the year in which the 

Encore Fellow agrees to serve. 

(6) MATCHING FUNDS.-An organization that receives an 

Encore Fellow under this subsection shall agree to provide, for 

the living expenses of the Encore Fellow during the year of 

service, non-Federal contributions in an amount equal to not 

less than $1 for every $1 of Federal funds provided to the organization for the Encore Fellow through the Encore Fellowship. 

(7) TRAINING AND ASSISTANCE.-Each organization that receives an Encore Fellow under this subsection shall provide 

training, leadership development, and assistance to the Encore 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 198H NATIONAL AND COMMUNITY SERVICE ACT OF 1990 152 

Fellow, and conduct oversight of the service provided by the 

Encore Fellow. 

(8) LEADERSHIP DEVELOPMENT.-Each year, the Corporation shall convene current and former Encore Fellows to discuss the Encore Fellows' experiences related to service under 

this subsection and discuss strategies for increasing leadership 

and careers in public service in the nonprofit sector or government. 

(c) EVALUATIONS.-The Corporation shall conduct an independent evaluation of the programs authorized under subsections 

(a) and (b) and widely disseminate the results, including recommendations for improvement, to the service community through 

multiple channels, including the Corporation's Resource Center or 

a clearinghouse of effective strategies. 

PART II-NATIONAL SERVICE RESERVE CORPS 

SEC. 198H. [42 U.S.C. 12653h] NATIONAL SERVICE RESERVE CORPS. 

(a) DEFINITIONS.-ln this section- (1) the term "National Service Reserve Corps member" 

means an individual who-- (A) has completed a term of national service or is a 

veteran; 

(B) has successfully completed training described in 

subsection (c) within the previous 2 years; 

(C) completes not less than 10 hours of volunteering 

each year (which may include the training session described in subparagraph (B)); and 

(D) has indicated interest to the Corporation in responding to disasters and emergencies in a timely manner 

through the National Service Reserve Corps; and 

(2) the term "term of national service" means a term or period of service under section 123. 

(b) ESTABLISHMENT OF NATIONAL SERVICE RESERVE CORPS.- (1) IN GENERAL.-ln consultation with the Federal Emergency Management Agency, the Corporation shall establish a 

National Service Reserve Corps to prepare and deploy National 

Service Reserve Corps members to respond to disasters and 

emergencies in support of national service programs and other 

requesting programs and agencies. 

(2) GRANTS OR CONTRACTS.-ln carrying out this section, 

the Corporation may enter into a grant or contract with an organization experienced in responding to disasters or in coordinating individuals who have completed a term of national service or are veterans, or may directly deploy National Service Reserve Corps members, as the Corporation determines necessary. 

(c) ANNuAL TRAINING.-The Corporation shall conduct or coordinate annual training sessions, consistent with the training requirements of the Federal Emergency Management Agency, for individuals who have completed a term of national service or are veterans, and who wish to join the National Service Reserve Corps. 

(d) DESIGNATION OF ORGANIZATIONS.- May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

153 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 198H 

(1) IN GENERAL.-The Corporation shall designate organizations with demonstrated experience in responding to disasters or emergencies, including through using volunteers, for 

participation in the program under this section. 

(2) REQUIREMENTS.-The Corporation shall ensure that 

every designated organization is- (A) prepared to respond to disasters or emergencies; 

(B) prepared and able to utilize National Service Reserve Corps members in responding to disasters or emergencies; and 

(C) willing to respond in a timely manner when notified by the Corporation of a disaster or emergency. 

(e) DATABASES.-The Corporation shall develop or contract 

with an outside organization to develop- ( 1) a database of all National Service Reserve Corps members; and 

(2) a database of all nonprofit organizations that have been 

designated by the Corporation under subsection (d). 

(f) DEPLOYMENT OF NATIONAL SERVICE RESERVE CORPS.- (1) MAJOR DISASTERS OR EMERGENCIES.-If a major disaster or emergency is declared by the President pursuant to 

section 102 of the Robert T. Stafford Disaster Relief and Assistance Act (42 U.S.C. 5122), the Administrator of the Federal 

Emergency Management Agency, in consultation with the Corporation, may task the National Service Reserve Corps to assist in response. 

(2) OTHER DISASTERS OR EMERGENCIES.-For a disaster or 

emergency that is not declared a major disaster or emergency 

under section 102 of the Robert T. Stafford Disaster Relief and 

Assistance Act (42 U.S.C. 5122), the Corporation may directly, 

or through a grant or contract, deploy the National Service Reserve Corps. 

(3) DEPLOYMENT.-Under paragraph (1) or (2), the Corporation may- (A) deploy interested National Service Reserve Corps 

members on assignments of not more than 30 days to assist with local needs related to preparing or recovering 

from the incident in the affected area, either directly or 

through organizations designated under subsection (d); 

(B) make travel arrangements for the deployed National Service Reserve Corps members to the site of the incident; and 

(C) provide funds to those organizations that are responding to the incident with deployed National Service 

Reserve Corps members, to enable the organizations to coordinate and provide housing, living stipends, and insurance for those deployed members. 

(4) ALLOWANCE.-Any amounts that are utilized by the 

Corporation from funds appropriated under section 

501(a)(4)(D) to carry out paragraph (1) for a fiscal year shall 

be kept in a separate fund. Any amounts in such fund that are 

not used during a fiscal year shall remain available to use to 

pay National Service Reserve Corps members an allowance, determined by the Corporation, for out-of-pocket expenses. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 198K NATIONAL AND COMMUNITY SERVICE ACT OF 1990 154 

(5) INFORMATION.- (A) NATIONAL SERVICE PARTICIPANTS.-The Corporation, the State Commissions, and entities receiving financial assistance for programs under subtitle C of this Act, 

or under part A of title I of the Domestic Volunteer Service 

Act of 1973 (42 U.S.C. 4951 et seq.), shall inform participants about the National Service Reserve Corps upon the 

participants' completion of their term of national service. 

(B) VETERANS.-The Secretary of Veterans Affairs, in 

consultation with the Secretary of Defense, shall inform 

veterans who are recently discharged, released, or separated from the Armed Forces about the National Service 

Reserve Corps. 

(6) COORDINATION.-ln deploying National Service Reserve 

Corps members under this subsection, the Corporation shall­

(A) avoid duplication of activities directed by the Federal Emergency Management Agency; and 

(B) consult and, as appropriate, partner with Citizen 

Corps programs and other local disaster agencies, including State and local emergency management agencies, voluntary organizations active in disaster, State Commissions, and similar organizations, in the affected area. 

PART III-SOCIAL INNOVATION FUNDS PILOT 

PROGRAM 

SEC.198K. [42 U.S.C.12653k] FUNDS. 

(a) FINDINGS.-Congress finds the following: 

(1) Social entrepreneurs and other nonprofit community 

organizations are developing innovative and effective solutions 

to national and local challenges. 

(2) Increased public and private investment in replicating 

and expanding proven effective solutions, and supporting new 

solutions, developed by social entrepreneurs and other nonprofit community organizations could allow those entrepreneurs and organizations to replicate and expand proven initiatives, and support new initiatives, in communities. 

(3) A network of Social Innovation Funds could leverage 

Federal investments to increase State, local, business, and 

philanthropic resources to replicate and expand proven solutions and invest in supporting new innovations to tackle specific identified community challenges. 

(b) PuRPOSES.-The purposes of this section are- (1) to recognize and increase the impact of social entrepreneurs and other nonprofit community organizations in tackling national and local challenges; 

(2) to stimulate the development of a network of Social Innovation Funds that will increase private and public investment in nonprofit community organizations that are effectively 

addressing national and local challenges to allow such organizations to replicate and expand proven initiatives or support 

new initiatives; 

(3) to assess the effectiveness of such Funds inMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

155 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 198K 

(A) leveraging Federal investments to increase State, 

local, business, and philanthropic resources to address national and local challenges; 

(B) providing resources to replicate and expand effective initiatives; and 

(C) seeding experimental initiatives focused on improving outcomes in the areas described in subsection 

(f)(3); and 

(4) to strengthen the infrastructure to identify, invest in, 

replicate, and expand initiatives with effective solutions to national and local challenges. 

(c) DEFINITIONS.-ln this section: 

(1) COMMUNITY ORGANIZATION.-The term "community organization" means a nonprofit organization that carries out innovative, effective initiatives to address community challenges. 

(2) COVERED ENTITY.-The term "covered entity'' means­

(A) an existing grantmaking institution (existing as of 

the date on which the institution applies for a grant under 

this section); or 

(B) a partnership between- (i) such an existing grantmaking institution; and 

(ii) an additional grantmaking institution, a State 

Commission, or a chief executive officer of a unit of 

general local government. 

(3) ISSUE AREA.-The term "issue area" means an area described in subsection (f)(3). 

(d) PROGRAM.-From the amounts appropriated to carry out 

this section that are not reserved under subsections (1) and (m), the 

Corporation shall establish a Social Innovation Funds grant program to make grants on a competitive basis to eligible entities for 

Social Innovation Funds. 

(e) PERIODS; AMOUNTS.-The Corporation shall make such 

grants for periods of 5 years, and may renew the grants for additional periods of 5 years, in amounts of not less than $1,000,000 

and not more than $10,000,000 per year. 

(f) ELIGIBILITY.-To be eligible to receive a grant under subsection (d), an entity shall- (1) be a covered entity; 

(2) propose to focus on- (A) serving a specific local geographical area; or 

(B) addressing a specific issue area; 

(3) propose to focus on improving measurable outcomes relating to--

(A) education for economically disadvantaged elementary or secondary school students; 

(B) child and youth development; 

(C) reductions in poverty or increases in economic opportunity for economically disadvantaged individuals; 

(D) health, including access to health services and 

health education; 

(E) resource conservation and local environmental 

quality; 

(F) individual or community energy efficiency; 

(G) civic engagement; or 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 198K NATIONAL AND COMMUNITY SERVICE ACT OF 1990 156 

(H) reductions in crime; 

(4) have an evidence-based decisionmaking strategy, including-

(A) use of evidence produced by prior rigorous evaluations of program effectiveness including, where available, 

well-implemented randomized controlled trials; and 

(B) a well-articulated plan to-- (i)(I) replicate and expand research-proven initiatives that have been shown to produce sizeable, sustained benefits to participants or society; or 

(II) support new initiatives with a substantial 

likelihood of significant impact; or 

(ii) partner with a research organization to carry 

out rigorous evaluations to assess the effectiveness of 

such initiatives; and 

(5) have appropriate policies, as determined by the Corporation, that protect against conflict of interest, self-dealing, 

and other improper practices. 

(g) APPLICATION.-To be eligible to receive a grant under subsection (d) for national leveraging capital, an eligible entity shall 

submit an application to the Corporation at such time, in such 

manner, and containing such information as the Corporation may 

specify, including, at a minimum- (1) an assurance that the eligible entity will- (A) use the funds received through that capital in 

order to make subgrants to community organizations that 

will use the funds to replicate or expand proven initiatives, 

or support new initiatives, in low-income communities; 

(B) in making decisions about subgrants for communities, consult with a diverse cross section of community 

representatives in the decisions, including individuals from 

the public, nonprofit private, and for-profit private sectors; 

and 

(C) make subgrants of a sufficient size and scope to 

enable the community organizations to build their capacity 

to manage initiatives, and sustain replication or expansion 

of the initiatives; 

(2) an assurance that the eligible entity will not make any 

subgrants to the parent organizations of the eligible entity, a 

subsidiary organization of the parent organization, or, if the eligible entity applied for funds under this section as a partnership, any member of the partnership; 

(3) an identification of, as appropriate--- (A) the specific local geographical area referred to in 

subsection (f)(2)(A) that the eligible entity is proposing to 

serve; or 

(B) the issue area referred to in subsection (f)(2)(B) 

that the eligible entity will address, and the geographical 

areas that the eligible entity is likely to serve in addressing such issue area; 

( 4)(A) information identifying the issue areas in which the 

eligible entity will work to improve measurable outcomes; 

(B) statistics on the needs related to those issue areas in, 

as appropriate--- May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

157 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 198K 

(i) the specific local geographical area described in 

paragraph (3)(A); or 

(ii) the geographical areas described in paragraph 

(3)(B), including statistics demonstrating that those geographical areas have high need in the specific issue area 

that the eligible entity is proposing to address; and 

(C) information on the specific measurable outcomes related to the issue areas involved that the eligible entity will 

seek to improve; 

(5) information describing the process by which the eligible 

entity selected, or will select, community organizations to receive the subgrants, to ensure that the community organizations-

(A) are institutions- (i) with proven initiatives and a demonstrated 

track record of achieving specific outcomes related to 

the measurable outcomes for the eligible entity; or 

(ii) that articulate a new solution with a significant likelihood for substantial impact; 

(B) articulate measurable outcomes for the use of the 

subgrant funds that are connected to the measurable outcomes for the eligible entity; 

(C) will use the funds to replicate, expand, or support 

their initiatives; 

(D) provide a well-defined plan for replicating, expanding, or supporting the initiatives funded; 

(E) can sustain the initiatives after the subgrant period concludes through reliable public revenues, earned income, or private sector funding; 

(F) have strong leadership and financial and management systems; 

(G) are committed to the use of data collection and 

evaluation for improvement of the initiatives; 

(H) will implement and evaluate innovative initiatives, 

to be important contributors to knowledge in their fields; 

and 

(I) will meet the requirements for providing matching 

funds specified in subsection (k); 

(6) information about the eligible entity, including its experience managing collaborative initiatives, or assessing applicants for grants and evaluating the performance of grant recipients for outcome-focused initiatives, and any other relevant 

information; 

(7) a commitment to meet the requirements of subsection 

(i) and a plan for meeting the requirements, including information on any funding that the eligible entity has secured to provide the matching funds required under that subsection; 

(8) a description of the eligible entity's plan for providing 

technical assistance and support, other than financial support, 

to the community organizations that will increase the ability of 

the community organizations to achieve their measurable outcomes; 

(9) information on the commitment, institutional capacity, 

and expertise of the eligible entity concerningMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 198K NATIONAL AND COMMUNITY SERVICE ACT OF 1990 158 

(A) collecting and analyzing data required for evaluations, compliance efforts, and other purposes; 

(B) supporting relevant research; and 

(C) submitting regular reports to the Corporation, including information on the initiatives of the community organizations, and the replication or expansion of such initiatives; 

(10) a commitment to use data and evaluations to improve 

the eligible entity's own model and to improve the initiatives 

funded by the eligible entity; and 

(11) a commitment to cooperate with any evaluation activities undertaken by the Corporation. 

(h) SELECTION CRITERIA.-ln selecting eligible entities to receive grants under subsection (d), the Corporation shall- (1) select eligible entities on a competitive basis; 

(2) select eligible entities on the basis of the quality of 

their selection process, as described in subsection (g)(5), the capacity of the eligible entities to manage Social Innovation 

Funds, and the potential of the eligible entities to sustain the 

Funds after the conclusion of the grant period; 

(3) include among the grant recipients eligible entities that 

propose to provide subgrants to serve communities (such as 

rural low-income communities) that the eligible entities can 

demonstrate are significantly philanthropically underserved; 

( 4) select a geographically diverse set of eligible entities; 

and 

(5) take into account broad community perspectives and 

support. 

(i) MATCHING FUNDS FOR GRANTS.- (1) IN GENERAL.-The Corporation may not make a grant 

to an eligible entity under subsection (d) for a Social Innovation Fund unless the entity agrees that, with respect to the 

cost described in subsection (d) for that Fund, the entity will 

make available matching funds in an amount equal to not less 

than $1 for every $1 of funds provided under the grant. 

(2) ADDITIONAL REQUIREMENTS.- (A) TYPE AND SOURCES.-The eligible entity shall provide the matching funds in cash. The eligible entity shall 

provide the matching funds from State, local, or private 

sources, which may include State or local agencies, businesses, private philanthropic organizations, or individuals. 

(B) ELIGIBLE ENTITIES INCLUDING STATE COMMISSIONS 

OR LOCAL GOVERNMENT OFFICES.- (i) IN GENERAL.-ln a case in which a State Commission, a local government office, or both entities are 

a part of the eligible entity, the State involved, the 

local government involved, or both entities, respectively, shall contribute not less than 30 percent and 

not more than 50 percent of the matching funds. 

(ii) LOCAL GOVERNMENT OFFICE.-ln this subparagraph, the term "local government office" means the 

office of the chief executive officer of a unit of general 

local government. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

159 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 198K 

(3) REDUCTION.-The Corporation may reduce by 50 percent the matching funds required by paragraph (1) for an eligible entity serving a community (such as a rural low-income 

community) that the eligible entity can demonstrate is significantly philanthropically underserved. 

G) SUBGRANTS.- (1) SUBGRANTS AUTHORIZED.-An eligible entity receiving a 

grant under subsection (d) is authorized to use the funds made 

available through the grant to award, on a competitive basis, 

subgrants to expand or replicate proven initiatives, or support 

new initiatives with a substantial likelihood of success, to-- (A) community organizations serving low-income communities within the specific local geographical area described in the eligible entity's application in accordance 

with subsection (g)(3)(A); or 

(B) community organizations addressing a specific 

issue area described in the eligible entity's application in 

accordance with subsection (g)(3)(B), in low-income communities in the geographical areas described in the application. 

(2) PERIODS; AMOUNTS.-The eligible entity shall make 

such subgrants for periods of not less than 3 and not more 

than 5 years, and may renew the subgrants for such periods, 

in amounts of not less than $100,000 per year. 

(3) APPLICATIONS.-To be eligible to receive a subgrant 

from an eligible entity under this section, including receiving 

a payment for that subgrant each year, a community organization shall submit an application to an eligible entity that 

serves the specific local geographical area, or geographical 

areas, that the community organization proposes to serve, at 

such time, in such manner, and containing such information as 

the eligible entity may require, including- (A) a description of the initiative the community organization carries out and plans to replicate or expand, or of 

the new initiative the community organization intends to 

support, using funds received from the eligible entity, and 

how the initiative relates to the issue areas in which the 

eligible entity has committed to work in the eligible entity's application, in accordance with subsection (g)(4)(A); 

(B) data on the measurable outcomes the community 

organization has improved, and information on the measurable outcomes the community organization seeks to improve by replicating or expanding a proven initiative or 

supporting a new initiative, which shall be among the 

measurable outcomes that the eligible entity identified in 

the eligible entity's application, in accordance with subsection (g)(4)(C); 

(C) an identification of the community in which the 

community organization proposes to carry out an initiative, which shall be within a local geographical area described in the eligible entity's application in accordance 

with subparagraph (A) or (B) of subsection (g)(3), as applicable; 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 198K NATIONAL AND COMMUNITY SERVICE ACT OF 1990 160 

(D) a description of the evidence-based decisionmaking 

strategies the community organization uses to improve the 

measurable outcomes, including- (i) use of evidence produced by prior rigorous evaluations of program effectiveness including, where 

available, well-implemented randomized controlled 

trials; or 

(ii) a well-articulated plan to conduct, or partner 

with a research organization to conduct, rigorous evaluations to assess the effectiveness of initiatives addressing national or local challenges; 

(E) a description of how the community organization 

uses data to analyze and improve its initiatives; 

(F) specific evidence of how the community organization will meet the requirements for providing matching 

funds specified in subsection (k); 

(G) a description of how the community organization 

will sustain the replicated or expanded initiative after the 

conclusion of the subgrant period; and 

(H) any other information the eligible entity may require, including information necessary for the eligible entity to fulfill the requirements of subsection (g)(5). 

(k) MATCHING FUNDS FOR SUBGRANTS.- (1) IN GENERAL.-An eligible entity may not make a 

subgrant to a community organization under this section for an 

initiative described in subsection (j)(3)(A) unless the organization agrees that, with respect to the cost of carrying out that 

initiative, the organization will make available, on an annual 

basis, matching funds in an amount equal to not less than $1 

for every $1 of funds provided under the subgrant. If the community organization fails to make such matching funds available for a fiscal year, the eligible entity shall not make payments for the remaining fiscal years of the subgrant period, 

notwithstanding any other provision of this part. 

(2) TYPES AND SOURCES.-The community organization 

shall provide the matching funds in cash. The community organization shall provide the matching funds from State, local, or 

private sources, which may include funds from State or local 

agencies or private sector funding. 

(1) DIRECT SUPPORT.- (1) PROGRAM AUTHORIZED.-The Corporation may use not 

more than 10 percent of the funds appropriated for this section 

to award grants to community organizations serving low-income communities or addressing a specific issue area in geographical areas that have the highest need in that issue area, 

to enable such community organizations to replicate or expand 

proven initiatives or support new initiatives. 

(2) TERMS AND CONDITIONS.-A grant awarded under this 

subsection shall be subject to the same terms and conditions 

as a subgrant awarded under subsection (j). 

(3) APPLICATION; MATCHING FUNDS.-Paragraphs (2) and 

(3) of subsection (j) and subsection (k) shall apply to a community organization receiving or applying for a grant under this 

subsection in the same manner as such subsections apply to a 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

161 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 198K 

community organization receiving or applying for a subgrant 

under subsection G), except that references to a subgrant shall 

mean a grant and references to an eligible entity shall mean 

the Corporation. 

(m) RESEARCH AND EVALUATION.- (!) IN GENERAL.-The Corporation may reserve not more 

than 5 percent of the funds appropriated for this section for a 

fiscal year to support, directly or through contract with an 

independent entity, research and evaluation activities to evaluate the eligible entities and community organizations receiving 

grants under subsections (d) and (1) and the initiatives supported by the grants. 

(2) RESEARCH AND EVALUATION ACTMTIES.­

(A) RESEARCH AND REP0RTS.- (i) IN GENERAL.-The entity carrying out this subsection shall collect data and conduct or support research with respect to the eligible entities and community organizations receiving grants under subsections 

(d) and (1), and the initiatives supported by such eligible entities and community organizations, to determine the success of the program carried out under this 

section in replicating, expanding, and supporting initiatives, including- (!) the success of the initiatives in improving 

measurable outcomes; and 

(II) the success of the program in increasing 

philanthropic investments in philanthropically underserved communities. 

(ii) REP0RTS.-The Corporation shall submit periodic reports to the authorizing committees including­

(!) the data collected and the results of the research under this subsection; 

(II) information on lessons learned about best 

practices from the activities carried out under this 

section, to improve those activities; and 

(III) a list of all eligible entities and community organizations receiving funds under this section. 

(iii) PUBLIC INF0RMATION.-The Corporation shall 

annually post the list described in clause (ii)(III) on 

the Corporation's website. 

(B) TECHNICAL ASSISTANCE.-The Corporation shall, 

directly or through contract, provide technical assistance 

to the eligible entities and community organizations that 

receive grants under subsections (d) and (1). 

(C) KNOWLEDGE MANAGEMENT.-The Corporation 

shall, directly or through contract, maintain a clearinghouse for information on best practices resulting from initiatives supported by the eligible entities and community 

organizations. 

(D) RESERVATION.-Of the funds appropriated under 

section 501(a)(4)(E) for a fiscal year, not more than 5 percent may be used to carry out this subsection. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 1980 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 162 

PART IV-NATIONAL SERVICE PROGRAMS 

CLEARINGHOUSES; VOLUNTEER GENERA- TIONFUND 

SEC. 1980. [42 U.S.C. 126530] NATIONAL SERVICE PROGRAMS CLEARINGHOUSES. 

(a) IN GENERAL.-The Corporation shall provide assistance, by 

grant, contract, or cooperative agreement, to entities with expertise 

in the dissemination of information through clearinghouses to establish 1 or more clearinghouses for information regarding the national service laws, which shall include information on servicelearning and on service through other programs receiving assistance under the national service laws. 

(b) FUNCTION OF CLEARINGHOUSE.-Such a clearinghouse 

may- (1) assist entities carrying out State or local service-learning and national service programs with needs assessments and 

planning; 

(2) conduct research and evaluations concerning servicelearning or programs receiving assistance under the national 

service laws, except that such clearinghouse may not conduct 

such research and evaluations if the recipient of the grant, contract, or cooperative agreement establishing the clearinghouse 

under this section is receiving funds for such purpose under 

part III of subtitle B or under this subtitle (not including this 

section); 

(3)(A) provide leadership development and training to 

State and local service-learning program administrators, supervisors, service sponsors, and participants; and 

(B) provide training to persons who can provide the leadership development and training described in subparagraph (A); 

( 4) facilitate communication among- (A) entities carrying out service-learning programs 

and programs offered under the national service laws; and 

(B) participants in such programs; 

(5) provide and disseminate information and curriculum 

materials relating to planning and operating service-learning 

programs and programs offered under the national service 

laws, to States, territories, Indian tribes, and local entities eligible to receive financial assistance under the national service 

laws; 

(6) provide and disseminate information regarding methods to make service-learning programs and programs offered 

under the national service laws accessible to individuals with 

disabilities; 

(7) disseminate applications in languages other than 

English; 

(8)(A) gather and disseminate information on successful 

service-learning programs and programs offered under the national service laws, components of such successful programs, 

innovative curricula related to service-learning, and servicelearning projects; and 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

163 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 198P 

(B) coordinate the activities of the clearinghouse with appropriate entities to avoid duplication of effort; 

(9) make recommendations to State and local entities on 

quality controls to improve the quality of service-learning programs and programs offered under the national service laws; 

(10) assist organizations in recruiting, screening, and placing a diverse population of service-learning coordinators and 

program sponsors; 

(11) disseminate effective strategies for working with disadvantaged youth in national service programs, as determined 

by organizations with an established expertise in working with 

such youth; and 

(12) carry out such other activities as the Chief Executive 

Officer determines to be appropriate. 

SEC. 198P. [42 U.S.C. 12653p] VOLUNTEER GENERATION FUND. 

(a) GRANTS AUTH0RIZED.-Subject to the availability of appropriations for this section, the Corporation may make grants to 

State Commissions and nonprofit organizations for the purpose of 

assisting the State Commissions and nonprofit organizations to- ( 1) develop and carry out volunteer programs described in 

subsection (c); and 

(2) make subgrants to support and create new local community-based entities that recruit, manage, or support volunteers as described in such subsection. 

(b) APPLICATION.- (1) IN GENERAL.-Each State Commission or nonprofit organization desiring a grant under this section shall submit an 

application to the Corporation at such time, in such manner, 

and accompanied by such information as the Corporation may 

reasonably require. 

(2) C0NTENTS.-Each application submitted pursuant to 

paragraph (1) shall contain- (A)(i) a description of the program that the applicant 

will provide; 

(B) an assurance that the applicant will annually collect information on- (i) the number of volunteers recruited for activities carried out under this section, using funds received under this section, and the type and amount of 

activities carried out by such volunteers; and 

(ii) the number of volunteers managed or supported using funds received under this section, and 

the type and amount of activities carried out by such 

volunteers; 

(C) a description of the outcomes the applicant will use 

to annually measure and track performance with regard 

to-- (i) activities carried out by volunteers; and 

(ii) volunteers recruited, managed, or supported; 

and 

(D) such additional assurances as the Corporation determines to be essential to ensure compliance with the requirements of this section. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 198P NATIONAL AND COMMUNITY SERVICE ACT OF 1990 164 

(c) ELIGIBLE VOLUNTEER PROGRAMS.-A State Commission or 

nonprofit organization receiving a grant under this section shall 

use the assistance- ( 1) directly to carry out volunteer programs or to develop 

and support community-based entities that recruit, manage, or 

support volunteers, by carrying out activities consistent with 

the goals of the subgrants described in paragraph (2); or 

(2) through subgrants to community-based entities to carry 

out volunteer programs or develop and support such entities 

that recruit, manage, or support volunteers, through 1 or more 

of the following types of subgrants: 

(A) A subgrant to a community-based entity for activities that are consistent with the priorities set by the 

State's national service plan as described in section 178(e), 

or by the Corporation. 

(B) A subgrant to recruit, manage, or support volunteers to a community-based entity such as a volunteer coordinating agency, a nonprofit resource center, a volunteer 

training clearinghouse, an institution of higher education, 

or a collaborative partnership of faith-based and community-based organizations. 

(C) A subgrant to a community-based entity that provides technical assistance and support to-- (i) strengthen the capacity of local volunteer infrastructure organizations; 

(ii) address areas of national need (as defined in 

section 198B(a)); and 

(iii) expand the number of volunteers nationally. 

(d) ALLOCATION OF FUNDS.- (1) IN GENERAL.-Of the funds allocated by the Corporation for provision of assistance under this section for a fiscal 

year- (A) the Corporation shall use 50 percent of such funds 

to award grants, on a competitive basis, to State Commissions and nonprofit organizations for such fiscal year; and 

(B) the Corporation shall use 50 percent of such funds 

make an allotment to the State Commissions of each of the 

several States, the District of Columbia, and the Commonwealth of Puerto Rico based on the formula described in 

subsections (e) and (0 of section 129, subject to paragraph 

(2). 

(2) MINIMUM GRANT AMOUNT.-ln order to ensure that 

each State Commission is able to improve efforts to recruit, 

manage, or support volunteers, the Corporation may determine 

a minimum grant amount for allotments under paragraph (l)(B). 

(e) LIMITATION ON ADMINISTRATIVE COSTS.-Not more than 5 

percent of the amount of any grant provided under this section for 

a fiscal year may be used to pay for administrative costs incurred 

by either the recipient of the grant or any community-based entity 

receiving assistance or a subgrant under such grant. (0 MATCHING FUND REQUIREMENTS.-The Corporation share of 

the cost of carrying out a program that receives assistance under 

this section, whether the assistance is provided directly or as a 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

165 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 198S 

subgrant from the original recipient of the assistance, may not exceed- (1) 80 percent of such cost for the first year in which the 

recipient receives such assistance; 

(2) 70 percent of such cost for the second year in which the 

recipient receives such assistance; 

(3) 60 percent of such cost for the third year in which the 

recipient receives such assistance; and 

( 4) 50 percent of such cost for the fourth year in which the 

recipient receives such assistance and each year thereafter. 

PART V:-NONPROFIT CAPACITY BUILDING 

PROGRAM 

SEC. 198S. [42 U.S.C. 12653s] NONPROFIT CAPACITY BUILDING. 

(a) DEFINITIONS.-ln this section: 

(1) INTERMEDIARY NONPROFIT GRANTEE.-The term "intermediary nonprofit grantee" means an intermediary nonprofit 

organization that receives a grant under subsection (b). 

(2) INTERMEDIARY NONPROFIT ORGANIZATION.-The term 

"intermediary nonprofit organization" means an experienced 

and capable nonprofit entity with meaningful prior experience 

in providing organizational development assistance, or capacity 

building assistance, focused on small and midsize nonprofit organizations. 

(3) NONPROFIT.-The term "nonprofit", used with respect 

to an entity or organization, means- (A) an entity or organization described in section 

501(c)(3) of the Internal Revenue Code of 1986 and exempt 

from taxation under section 501(a) of such Code; and 

(B) an entity or organization described in paragraph 

(1) or (2) of section 170(c) of such Code. 

( 4) STATE.-The term "State" means each of the several 

States, and the District of Columbia. 

(b) GRANTS.-The Corporation shall establish a Nonprofit Capacity Building Program to make grants to intermediary nonprofit 

organizations to serve as intermediary nonprofit grantees. The Corporation shall make the grants to enable the intermediary nonprofit grantees to pay for the Federal share of the cost of delivering 

organizational development assistance, including training on best 

practices, financial planning, grantwriting, and compliance with 

the applicable tax laws, for small and midsize nonprofit organizations, especially those nonprofit organizations facing resource hardship challenges. Each of the grantees shall match the grant funds 

by providing a non-Federal share as described in subsection (f). 

(c) AMOUNT.-To the extent practicable, the Corporation shall 

make such a grant to an intermediary nonprofit organization in 

each State, and shall make such grant in an amount of not less 

than $200,000. 

(d) APPLICATION.-To be eligible to receive a grant under this 

section, an intermediary nonprofit organization shall submit an application to the Corporation at such time, in such manner, and containing such information as the Corporation may require. The 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 198S NATIONAL AND COMMUNITY SERVICE ACT OF 1990 166 

intermediary nonprofit organization shall submit in the application 

information demonstrating that the organization has secured sufficient resources to meet the requirements of subsection (f). 

(e) PREFERENCE AND CONSIDERATIONS.- (1) PREFERENCE.-ln making such grants, the Corporation 

shall give preference to intermediary nonprofit organizations 

seeking to become intermediary nonprofit grantees in areas 

where nonprofit organizations face significant resource hardship challenges. 

(2) CONSIDERATIONS.-ln determining whether to make a 

grant the Corporation shall consider- (A) the number of small and midsize nonprofit organizations that will be served by the grant; 

(B) the degree to which the activities proposed to be 

provided through the grant will assist a wide number of 

nonprofit organizations within a State, relative to the proposed amount of the grant; and 

(C) the quality of the organizational development assistance to be delivered by the intermediary nonprofit 

grantee, including the qualifications of its administrators 

and representatives, and its record in providing services to 

small and midsize nonprofit organizations. 

(f) FEDERAL SHARE.- (1) IN GENERAL.-The Federal share of the cost as referenced in subsection (b) shall be 50 percent. 

(2) NON-FEDERAL SHARE.- (A) IN GENERAL.-The non-Federal share of the cost as 

referenced in subsection (b) shall be 50 percent and shall 

be provided in cash. 

(B) THIRD PARTY CONTRIBUTIONS.- (i) IN GENERAL.-Except as provided in clause (ii), 

an intermediary nonprofit grantee shall provide the 

non-Federal share of the cost through contributions 

from third parties. The third parties may include charitable grantmaking entities and grantmaking vehicles 

within existing organizations, entities of corporate philanthropy, corporations, individual donors, and regional, State, or local government agencies, or other 

non-Federal sources. 

(ii) EXCEPTION.-If the intermediary nonprofit 

grantee is a private foundation (as defined in section 

509(a) of the Internal Revenue Code of 1986), a donor 

advised fund (as defined in section 4966(d)(2) of such 

Code), an organization which is described in section 

4966(d)(4)(A)(i) of such Code, or an organization which 

is described in section 4966(d)(4)(B) of such Code, the 

grantee shall provide the non-Federal share from 

within that grantee's own funds. 

(iii) MAINTENANCE OF EFFORT, PRIOR YEAR THIRDPARTY FUNDING LEVELS.-For purposes of maintaining 

private sector support levels for the activities specified 

by this program, a non-Federal share that includes donations by third parties shall be composed in a way 

that does not decrease prior levels of funding from the 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

167 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 199D 

same third parties granted to the nonprofit intermediary grantee in the preceding year. 

(g) RESERVATION.-Of the amount authorized to provide financial assistance under this subtitle, there shall be made available to 

carry out this section $5,000,000 for each of fiscal years 2010 

through 2014. 

Subtitle I-American Conservation and 

Youth Service Corps 

SEC.199. [42 U.S.C.12501 nt] SHORT TITLE. 

This subtitle may be cited as the "American Conservation and 

Youth Service Corps Act of 1990". 

SEC. 199A. [42 U.S.C. 12655] GENERAL AUTHORITY. 

The Corporation may make grants to States or local applicants 

and may transfer funds to the Secretary of Agriculture or to the 

Secretary of the Interior for the creation or expansion of full-time, 

part-time, year-round, or summer, youth corps programs. To the 

extent practicable, the Corporation shall apply the provisions of 

subtitle C in making grants under this section. 

SEC. 199B. [42 U.S.C. 12655a] LIMITATION ON PURCHASE OF CAPITAL 

EQUIPMENT. 

Not to exceed 10 percent of the amount of assistance made 

available to a program agency under this subtitle shall be used for 

the purchase of major capital equipment. 

SEC.199C. [42 U.S.C.12655b] STATE APPLICATION. 

(a) SUBMISSION.-To be eligible to receive a grant under this 

subtitle, a State or Indian tribe (or a local applicant if section 199A 

applies) shall prepare and submit to the Corporation, an application at such time, in such manner, and containing such information 

as the Corporation may reasonably require. 

(b) GENERAL CONTENT.-An application submitted under subsection (a) shall describe--- (1) any youth corps program proposed to be conducted directly by such applicant with assistance provided under this 

subtitle; and 

(2) any grant program proposed to be conducted by such 

State with assistance provided under this subtitle for the benefit of entities within such State. 

SEC.199D. [42 U.S.C.12655c] FOCUS OF PROGRAMS. 

(a) IN GENERAL.-Programs that receive assistance under this 

subtitle may carry out activities that- ( 1) in the case of conservation corps programs, focus on­

(A) conservation, rehabilitation, and the improvement 

of wildlife habitat, rangelands, parks, and recreational 

areas; 

(B) urban and rural revitalization, historical and cultural site preservation, and reforestation of both urban 

and rural areas; 

(C) fish culture, wildlife habitat maintenance and improvement, and other fishery assistance; 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 199E NATIONAL AND COMMUNITY SERVICE ACT OF 1990 168 

(D) road and trail maintenance and improvement; 

(E) erosion, flood, drought, and storm damage assistance and controls; 

(F) stream, lake, waterfront harbor, and port improvement; 

(G) wetlands protection and pollution control; 

(H) insect, disease, rodent, and fire prevention and 

control; 

(I) the improvement of abandoned railroad beds and 

rights-of-way; 

(J) energy conservation projects, renewable resource 

enhancement, and recovery of biomass; 

(K) reclamation and improvement of strip-mined land; 

(L) forestry, nursery, and cultural operations; and 

(M) making public facilities accessible to individuals 

with disabilities. 

(2) in the case of youth service corps programs, include 

participant service in- (A) State, local, and regional governmental agencies; 

(B) nursing homes, hospices, senior centers, hospitals, 

local libraries, parks, recreational facilities, child and adult 

day care centers, programs serving individuals with disabilities, and schools; 

(C) law enforcement agencies, and penal and probation 

systems; 

(D) private nonprofit organizations that primarily 

focus on social service such as community action agencies; 

(E) activities that focus on the rehabilitation or improvement of public facilities, neighborhood improvements, 

literacy training that benefits educationally disadvantaged 

individuals, weatherization of and basic repairs to low-income housing including housing occupied by older adults, 

energy conservation (including solar energy techniques), 

removal of architectural barriers to access by individuals 

with disabilities to public facilities, activities that focus on 

drug and alcohol abuse education, prevention and treatment, and conservation, maintenance, or restoration of 

natural resources on publicly held lands; and 

(F) any other nonpartisan civic activities and services 

that the Corporation determines to be of a substantial social benefit in meeting unmet human, educational, or environmental needs (particularly needs related to poverty) or 

in the community where volunteer service is to be performed; or 

(3) encompass the focuses and services described in both 

paragraphs (1) and (2). 

(b) LIMITATION ON SERVICE.-No participant shall perform any 

specific activity for more than a 6-month period. No participant 

shall remain enrolled in programs assisted under this subtitle for 

more than 24 months. 

SEC. 199E. [42 U.S.C. 12655d] RELATED PROGRAMS. 

An activity administered under the authority of the Secretary 

of Health and Human Services, that is operated for the same purMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

169 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 1996 

pose as a program eligible to be carried out under this subtitle, is 

encouraged to use services available under this subtitle. 

SEC. 199F. [42 U.S.C. 12655e] PUBLIC LANDS OR INDIAN LANDS. 

(a) LIMITATION.-To be eligible to receive assistance through a 

grant provided under this subtitle, a program shall carry out activities on public lands or Indian lands, or result in a public benefit. 

(b) REVIEW OF APPLICATIONS.-ln reviewing applications submitted under section 199C that propose programs or projects to be 

carried out on public lands or Indian lands, the Corporation shall 

consult with the Secretary of the Interior. 

(c) CONSISTENCY.-A program carried out with assistance provided under this subtitle for conservation, rehabilitation, or improvement of any public lands or Indian lands shall be consistent 

with- (1) the provisions of law and policies relating to the management and administration of such lands, and all other applicable provisions of law; and 

(2) all management, operational, and other plans and documents that govern the administration of such lands. 

(d) PARTICIPATION BY OTHER CONSERVATION PROGRAMS.-Any 

land or water conservation program (or any related program) administered in any State under the authority of any Federal program is encouraged to use services available under this part to 

carry out its program. 

SEC. 199G. [42 U.S.C. 12655f] TRAINING AND EDUCATION SERVICES. 

(a) ASSESSMENT OF SKILLS.-Each program agency shall assess 

the educational level of participants at the time of their entrance 

into the program, using any available records or simplified assessment means or methodology and shall, where appropriate, refer 

such participants for testing for specific learning disabilities. 

(b) ENHANCEMENT OF SKILLS.-Each program agency shall, 

through the programs and activities administered under this subtitle, enhance the educational skills of participants. 

(c) PROVISION OF PRE-SERVICE AND IN-SERVICE TRAINING AND 

EDUCATION.- (1) REQUIREMENT.-Each program agency shall use not 

less than 10 percent of the assistance made available to such 

agency under this subtitle in each fiscal year to provide preservice and in-service training and educational materials and 

services for participants in such a program. Program participants shall be provided with information concerning the benefits to the community that result from the activities undertaken by such participants. 

(2) AGREEMENTS FOR ACADEMIC STUDY.-A program agency 

may enter into arrangements with academic institutions or 

education providers, including- (A) local education agencies; 

(B) community colleges; 

(C) 4-year colleges; 

(D) area vocational-technical schools; and 

(E) community based organizations; 

to evaluate the basic skills of participants and to make academic study available to participants to enable such particiMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 199H NATIONAL AND COMMUNITY SERVICE ACT OF 1990 170 

pants to upgrade literacy skills, to obtain high school diplomas 

or the equivalent of such diplomas, to obtain college degrees, 

or to enhance employable skills. 

(3) COUNSELING.-Career and educational guidance and 

counseling shall be provided to a participant during a period 

of in-service training as described in this subsection. Each 

graduating participant shall be provided with counseling with 

respect to additional study, job skills training or employment 

and shall be provided job placement assistance where appropriate. 

(4) PRIORITY FOR PARTICIPANTS WITHOUT HIGH SCHOOL DIPLOMAS.-A program agency shall give priority to participants 

who have not obtained a high school diploma or the equivalent 

of such diploma, in providing services under this subsection. 

(d) STANDARDS AND PROCEDURES.- (1) CONSISTENCY WITH STATE AND LOCAL REQUIREMENTS.­

Appropriate State and local officials shall certify that standards and procedures with respect to the awarding of academic 

credit and the certification of educational attainment in programs conducted under subsection (c) are consistent with the 

requirements of applicable State and local law and regulations. 

(2) ACADEMIC STANDARDS.-The standards and procedures 

described in paragraph (1) shall provide that an individual 

serving in a program that receives assistance under this subtitle--- (A) who is not a high school graduate, participate in 

an educational curriculum so that such individual can earn 

a high school diploma or the equivalent of such diploma; 

and 

(B) may arrange to receive academic credit in recognition of the education and skills obtained from service satisfactorily completed. 

SEC. 199H. [42 U.S.C. 12655h] PREFERENCE FOR CERTAIN PROJECTS. 

(a) IN GENERAL.-ln the consideration of applications submitted under section 199C, the Corporation shall give preference to 

programs that- (1) will provide long-term benefits to the public; 

(2) will instill a work ethic and a sense of public service 

in the participants; 

(3) will be labor intensive, and involve youth operating in 

crews; 

(4) can be planned and initiated promptly; and 

(5) will enhance skills development and educational level 

and opportunities for the participants. 

(b) SPECIAL RULE.-ln the consideration of applications under 

this subtitle the Corporation shall ensure the equitable treatment 

of both urban and rural areas. 

SEC. 1991. [42 U.S.C. 12655i] AGE AND CITIZENSHIP CRITERIA FOR ENROLLMENT. 

(a) AGE AND CITIZENSHIP.-Enrollment in programs that receive assistance under this subtitle shall be limited to individuals 

who, at the time of enrollment, areMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

171 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 199K 

(1) not less than 16 years nor more than 25 years of age, 

except that summer programs may include individuals not less 

than 14 years nor more than 21 years of age at the time of the 

enrollment of such individuals; and 

(2) citizens or nationals of the United States or lawful permanent resident aliens of the United States. 

(b) PARTICIPATION OF DISADVANTAGED YOUTH.-Programs that 

receive assistance under this subtitle shall ensure that educationally and economically disadvantaged youth, including youth in foster care who are becoming too old for foster care, youth with disabilities, youth with limited English proficiency, youth with limited 

basic skills or learning disabilities and homeless youth, are offered 

opportunities to enroll. 

(c) SPECIAL CORPS MEMBERS.-Notwithstanding subsection 

(a)(l), program agencies may enroll a limited number of special 

corps members over age 25 so that the corps may draw on their 

special skills to fulfill the purposes of this Act. Programs are encouraged to consider senior citizens as special corps members. 

(d) JOINT PROJECTS WITH SENIOR CITIZENS ORGANIZATIONS.­

Program agencies shall use not more than 2 percent of amounts received under this subtitle to conduct joint projects with senior citizens organizations to enable senior citizens to serve as mentors for 

youth participants. 

(e) CONSTRUCTION.-Nothing in subsection (a) shall be construed to prohibit any program agency from limiting enrollment to 

any age subgroup within the range specified in subsection (a)(l). 

SEC. 199J. [42 U.S.C. 12655j] USE OF VOLUNTEERS. 

Program agencies may use volunteer services for purposes of 

assisting projects carried out under this subtitle and may expend 

funds made available for those purposes to the agency, including 

funds made available under this subtitle, to provide for services or 

costs incidental to the utilization of such volunteers, including 

transportation, supplies, lodging, recruiting, training, and supervision. The use of volunteer services under this section shall be 

subject to the condition that such use does not result in the displacement of any participant. 

SEC. 199K. [42 U.S.C. 126551] LIVING ALLOWANCE. 

(a) FULL-TIME SERVICE.- ( 1) LIVING ALLOWANCE REQUIRED.-Subject to paragraph 

(3), each participant in a full-time youth corps program that receives assistance under this subtitle shall receive a living allowance in an amount equal to or greater than the average annual subsistence allowance provided to VISTA volunteers 

under section 105 of the Domestic Volunteer Service Act of 

1973 (42 u.s.c. 4955). 

(2) LIMITATION ON FEDERAL SHARE.-The amount of the 

annual living allowance provided under paragraph (1) that 

may be paid using assistance provided under this subtitle, section 121, and any other Federal funds shall not exceed 85 percent of the total average annual subsistence allowance provided to VISTA volunteers under section 105 of the Domestic 

Volunteer Service Act of 1973 (42 U.S.C. 4955). 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 199K NATIONAL AND COMMUNITY SERVICE ACT OF 1990 172 

(3) MAxIMUM LIVING ALLOWANCE.-The total amount of an 

annual living allowance that may be provided to a participant 

in a full-time youth corps program that receives assistance 

under this subtitle shall not exceed 200 percent of the average 

annual subsistence allowance provided to VISTA volunteers 

under section 105 of the Domestic Volunteer Service Act of 

1973 (42 u.s.c. 4955). 

(4) WAIVER OR REDUCTION OF LIVING ALLOWANCE.-The 

Corporation may waive or reduce the requirement of paragraph (1) with respect to such national service program if such 

program demonstrates that- (A) such requirement is inconsistent with the objectives of the program; and 

(B) the amount of the living allowance that will be 

provided to each full-time participant is sufficient to meet 

the necessary costs of living (including food, housing, and 

transportation) in the area in which the program is located. 

(5) EXEMPTION.-The requirement of paragraph (1) shall 

not apply to any program that was in existence on the date of 

the enactment of the National and Community Service Trust 

Act of 1993. 

(b) REDUCTION IN EXISTING PROGRAM BENEFITS.- (1) IN GENERAL.-Nothing in this section shall be construed to require a program in existence on the date of enactment of this Act to decrease any stipends, salaries, or living allowances provided to participants under such program so long 

as the amount of any such stipends, salaries, or living allowances that is in excess of the levels provided for in this section 

are paid from non-Federal sources. 

(2) FAIR LABOR STANDARDS ACT OF 1938.-For purposes of 

the Fair Labor Standards Act of 1938, residential youth corps 

programs under this subtitle will be considered an organized 

camp. 

(c) HEALTH INSURANCE.-ln addition to the living allowance 

provided under subsection (a), program agencies are encouraged to 

provide health insurance to each participant in a full-time youth 

corps program who does not otherwise have access to health insurance. 

(d) FACILITIES, SERVICES, AND SUPPLIES.- (1) IN GENERAL.-The program agency may deduct, from 

amounts provided under subsection (a) to a participant, a reasonable portion of the costs of the rates for any room and board 

that is provided for such participant at a residential facility. 

Such deducted funds shall be deposited into rollover accounts 

that shall be used solely to defray the costs of room and board 

for participants. 

(2) EVALUATION.-The program agency shall establish the 

amount of the deductions and rates under paragraph (1) after 

evaluating the costs of providing such room and board to the 

participant. 

(3) DUTIES OF PROGRAM AGENCY.-A program agency may 

provide facilities, quarters, and board and shall provide limited 

and emergency medical care, transportation from administraMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

173 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 199M 

tive facilities to work sites, accommodations for individuals 

with disabilities, and other appropriate services, supplies, and 

equipment to each participant. 

( 4) OTHER FEDERAL AGENCIES.- (A) IN GENERAL.-The Corporation may provide services, facilities, supplies, and equipment, including any surplus food and equipment available from other Federal programs, to any program agency carrying out projects under 

this subtitle. 

(B) SECRETARY OF DEFENSE.-Whenever possible, the 

Corporation shall make arrangements with the Secretary 

of Defense to have logistical support provided by a military 

installation near the work site, including the provision of 

temporary tent centers where needed, and other supplies 

and equipment. 

(5) HEALTH AND SAFETY STANDARDS.-The Corporation and 

program agencies shall establish standards and enforcement 

procedures concerning the health and safety of participants for 

all projects, consistent with Federal, State, and local health 

and safety standards. 

SEC.199L. [42 U.S.C.12655m] JOINT PROGRAMS. 

(a) DEVELOPMENT.-The Corporation may develop, in cooperation with the heads of other Federal agencies, regulations designed 

to permit, where appropriate, joint programs in which activities 

supported with assistance made available under this subtitle are 

coordinated with activities supported with assistance made available under programs administered by the heads of such agencies 

(including the Job Training Partnership Act and title I of the 

Workforce Investment Act of 1998). 1 

(b) STANDARDS.-Regulations promulgated under subsection (a) 

shall establish standards for the approval of joint programs that 

meet both the purposes of this title and the purposes of such statutes under which assistance is made available to support such 

projects. 

(c) OPERATION OF MANAGEMENT AGREEMENTS.-Program agencies may enter into contracts and other appropriate arrangements 

with local government agencies and nonprofit organizations for the 

operation or management of any projects or facilities under the program. 

(d) CooRDINATION.-The Corporation and program agencies 

carrying out programs under this subtitle shall coordinate the programs with related Federal, State, local, and private activities. 

SEC. 199M. [42 U.S.C. 12655n] FEDERAL AND STATE EMPLOYEE STATUS. 

(a) IN GENERAL.-Participants and crew leaders shall be responsible to, or be the responsibility of, the program agency administering the program on which such participants, crew leaders, and 

volunteers work. 

(b) NON-FEDERAL EMPL0YEES.- (1) IN GENERAL.-Except as otherwise provided in this subsection, a participant or crew leader in a program that receives 

1 Effective July 1, 2000, subsection (a) is amended by striking "the Job Training Partnership 

Act and". 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 199N NATIONAL AND COMMUNITY SERVICE ACT OF 1990 174 

assistance under this subtitle shall not be considered a Federal 

employee and shall not be subject to the provisions of law relating to Federal employment. 

(2) WORK-RELATED INJURY.-For purposes of subchapter I 

of chapter 81 of title 5, United States Code, relating to the 

compensation of Federal employees for work injuries, a participant or crew leader serving in a program that receives assistance under this subtitle shall be considered an employee of the 

United States within the meaning of the term "employee" as 

defined in section 8101 of title 5, United States Code, and the 

provision of that subchapter shall apply, except- (A) the term "performance of duty", as used in such 

subchapter, shall not include an act of a participant or 

crew leader while absent from the assigned post of duty of 

such participant or crew leader, except while participating 

in an activity authorized by or under the direction and supervision of a program agency (including an activity while 

on pass or during travel to or from such post of duty); and 

(B) compensation for disability shall not begin to accrue until the day following the date that the employment 

of the injured participant or crew leader is terminated. 

(3) TORT CLAIMS PROCEDURE.-For purposes of chapter 171 

of title 28, United States Code, relating to tort claims procedure, a participant or crew leaders assigned to a youth corps 

program for which a grant has been made to the Secretary of 

Agriculture, Secretary of the Interior, or the Director of ACTION, shall be considered an employee of the United States 

within the meaning of the term "employee of the government" 

as defined in section 2671 of such title. 

(4) ALLOWANCE FOR QUARTERS.-For purposes of section 

5911 of title 5, United States Code, relating to allowances for 

quarters, a participant or crew leader shall be considered an 

employee of the United States within the meaning of the term 

"employee" as defined in paragraph (3) of subsection (a) of such 

section. 

(c) AVAILABILITY OF APPROPRIATION.-Contract authority under 

this subtitle shall be subject to the availability of appropriations. 

Assistance made available under this subtitle shall only be used for 

activities that are in addition to those which would otherwise be 

carried out in the area in the absence of such funds. 

Subtitle J-Training and Technical 

Assistance 

SEC. 199N. [42 U.S.C. 12657] TRAINING AND TECHNICAL ASSISTANCE. 

(a) IN GENERAL.-The Corporation shall, directly or through 

grants, contracts, or cooperative agreements (including through 

State Commissions), conduct appropriate training for and provide 

technical assistance to- ( 1) programs receiving assistance under the national service laws; and 

(2) entities (particularly entities in rural areas and underserved communities) that desire toMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

175 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 199N 

(A) carry out or establish national service programs; or 

(B) apply for assistance (including subgrants) under 

the national service laws. 

(b) ACTIVITIES INCLUDED.-Such training and technical assistance activities may include- ( 1) providing technical assistance to entities applying to 

carry out national service programs or entities carrying out national service programs; 

(2) promoting leadership development in national service 

programs; 

(3) improving the instructional and programmatic quality 

of national service programs; 

( 4) developing the management and budgetary skills of individuals operating or overseeing national service programs, 

including developing skills to increase the cost effectiveness of 

the programs under the national service laws; 

(5) providing for or improving the training provided to the 

participants in programs under the national service laws; 

(6) facilitating the education of individuals participating in 

national service programs in risk management procedures, including the training of participants in appropriate risk management practices; 

(7) training individuals operating or overseeing national 

service programs- (A) in volunteer recruitment, management, and retention to improve the abilities of such individuals to use participants and other volunteers in an effective manner, 

which training results in high-quality service and the desire of participants and volunteers to continue to serve in 

other capacities after the program is completed; 

(B) in program evaluation and performance measures 

to inform practices to augment the capacity and sustainability of the national service programs; or 

(C) to effectively accommodate individuals with disabilities to increase the participation of individuals with 

disabilities in national service programs, which training 

may utilize funding from the reservation of funds under 

section 129(k) to increase the participation of individuals 

with disabilities; 

(8) establishing networks and collaboration among employers, educators, and other key stakeholders in the community to 

further leverage resources to increase local participation in national service programs, and to coordinate community-wide 

planning and service with respect to national service programs; 

(9) providing training and technical assistance for the National Senior Service Corps, including providing such training 

and technical assistance to programs receiving assistance 

under section 201 of the Domestic Volunteer Service Act of 

1973 (42 U.S.C. 5001); and 

(10) carrying out such other activities as the Chief Executive Officer determines to be appropriate. 

(c) PRIORITY.-ln carrying out this section, the Corporation 

shall give priority to programs under the national service laws and 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 401 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 176 

entities eligible to establish such programs that seek training or 

technical assistance and that- ( 1) seek to carry out high-quality programs where the services are needed most; 

(2) seek to carry out high-quality programs where national 

service programs do not exist or where the programs are too 

limited to meet community needs; 

(3) seek to carry out high-quality programs that focus on 

and provide service opportunities for underserved rural and 

urban areas and populations; and 

( 4) seek to assist programs in developing a service component that combines students, out-of-school youths, and older 

adults as participants to provide needed community services. 

TITLE II-MODIFICATIONS OF EXISTING 

PROGRAMS 

Subtitle B-Publication 

SEC. 201. INFORMATION FOR STUDENTS. [Omitted] 

SEC. 202. EXIT COUNSELING FOR BORROWERS. [Omitted] 

SEC. 203. DEPARTMENT INFORMATION ON DEFERMENTS AND CANCELLATIONS. [Omitted] 

SEC. 204. DATA ON DEFERMENTS AND CANCELLATIONS. [Omitted] 

Subtitle B-:Youthbuild Projects 

SEC. 211. YOUTHBUILD PROJECTS. 

[See title VII of the Domestic Volunteer Service Act of 1973 (42 

U.S.C. 5091 et seq.)] 

[Title III was repealed by section 1831(a) of Public Law 111-13] 

TITLE IV-PROJECTS HONORING 

VICTIMS OF TERRORIST ATTACKS 

SEC. 401. (42 U.S.C. 12671] PROJECTS. 

(a) DEFINITION.-ln this section, the term "administrative organization" means a nonprofit private organization that enters into 

an agreement with the Corporation to carry out this section. 

(b) IDENTIFICATION OF PROJECTS.- (!) ESTIMATED NUMBER.-Not later than March 1, 2002, 

the administrative organization, after obtaining the guidance 

of the heads of appropriate Federal agencies, such as the Director of the Office of Homeland Security and the Attorney 

General, shall- (A) make an estimate of the number of victims killed 

as a result of the terrorist attacks on September 11, 2001 

(referred to in this section as the "estimated number"); and 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

177 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 501 

(B) compile a list that specifies, for each individual 

that the administrative organization determines to be such 

a victim, the name of the victim and the State in which 

the victim resided. 

(2) IDENTIFIED PR0JECTS.-The administrative organization may identify approximately the estimated number of community-based national and community service projects that 

meet the requirements of subsection (d). The administrative organization may name projects in honor of victims described in 

subsection (b)(l)(A), after obtaining the permission of an appropriate member of the victim's family and the entity carrying 

out the project. 

(c) ELIGIBLE ENTITIES.-To be eligible to have a project named 

under this section, the entity carrying out the project shall be a political subdivision of a State, a business, a nonprofit organization 

(which may be a religious organization), an Indian tribe, or an institution of higher education. 

(d) PR0JECTS.-The administrative organization shall name, 

under this section, projects- ( 1) that advance the goals of unity, and improving the 

quality of life in communities; and 

(2) that will be planned, or for which implementation will 

begin, within a reasonable period after the date of enactment 

of the Unity in the Spirit of America Act, as determined by the 

administrative organization. 

(e) WEBSITE AND DATABASE.-The administrative organization 

shall create and maintain websites and databases, to describe 

projects named under this section and serve as appropriate vehicles 

for recognizing the projects. 

TITLE V-AUTHORIZATION OF 

APPROPRIATIONS 

SEC. 501. [42 U.S.C.12681] AUTHORIZATION OF APPROPRIATIONS. 

(a) TITLE 1.- ( 1) SUBTITLE B.- (A) IN GENERAL.-There are authorized to be appropriated to provide financial assistance under subtitle B of 

title 1-

(i) $97,000,000 for fiscal year 2010; and 

(ii) such sums as may be necessary for each of fiscal years 2011 through 2014. 

(B) PART IV RESERVATION.-Of the amount appropriated under subparagraph (A) for a fiscal year, the Corporation may reserve such sums as may be necessary to 

carry out part N of subtitle B of title I. 

(C) SECTION llBA.-Of the amount appropriated under 

subparagraph (A) and not reserved under subparagraph 

(B) for a fiscal year, not more than $7,000,000 shall be 

made available for awards to Campuses of Service under 

section 118A. 

(D) SECTION 119(C)(8).-Of the amount appropriated 

under subparagraph (A) and not reserved under subparaMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 501 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 178 

graph (B) for a fiscal year, not more than $10,000,000 shall 

be made available for summer of service program grants 

under section 119(c)(8), and not more than $10,000,000 

shall be deposited in the National Service Trust to support 

summer of service educational awards, consistent with section 119(c)(8). 

(E) SECTION 119(C)(9).-Of the amount appropriated 

under subparagraph (A) and not reserved under subparagraph (B) for a fiscal year, not more than $20,000,000 shall 

be made available for youth engagement zone programs 

under section 119(c)(9). 

(F) GENERAL PR0GRAMS.-Of the amount remaining 

after the application of subparagraphs (A) through (E) for 

a fiscal year- (i) not more than 60 percent shall be available to 

provide financial assistance under part I of subtitle B 

of title I; 

(ii) not more than 25 percent shall be available to 

provide financial assistance under part II of such subtitle; and 

(iii) not less than 15 percent shall be available to 

provide financial assistance under part III of such subtitle. 

(2) SUBTITLES c AND D.-There are authorized to be appropriated, for each of fiscal years 2010 through 2014, such sums 

as may be necessary to provide financial assistance under subtitle C of title I and to provide national service educational 

awards under subtitle D of title I for the number of participants described in section 121(£)(1) for each such fiscal year. 

(3) SUBTITLE E.- (A) IN GENERAL.-There are authorized to be appropriated to operate the National Civilian Community Corps 

and provide financial assistance under subtitle E of title I, 

such sums as may be necessary for each of fiscal years 

2010 through 2014. 

(B) PRI0RITY.-Notwithstanding any other provision of 

this Act, in obligating the amounts made available pursuant to the authorization of appropriations in this paragraph, priority shall be given to programs carrying out activities in areas for which the President has declared the 

existence of a major disaster, in accordance with section 

401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170), including a major 

disaster as a consequence of Hurricane Katrina or Rita. 

( 4) SUBTITLE H.-

(A) AUTH0RIZATION.-There are authorized to be appropriated such sums as may be necessary for each of fiscal years 2010 through 2014 to provide financial assistance 

under subtitle H of title I. 

(B) SECTION 198B.-Of the amount authorized under 

subparagraph (A) for a fiscal year, such sums as may be 

necessary shall be made available to provide financial assistance under section 198B and to provide national service educational awards under subtitle D of title I to the 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

179 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 501 

number of participants in national service positions established or increased as provided in section 198B(b)(3) for 

such year. 

(C) SECTION 198C.-Of the amount authorized under 

subparagraph (A) for a fiscal year, $12,000,000 shall be 

made available to provide financial assistance under section 198C. 

(D) SECTION 198H.-Of the amount authorized under 

subparagraph (A) for a fiscal year, such sums as may be 

necessary shall be made available to provide financial assistance under section 198H. 

(E) SECTION 198K.-Of the amount authorized under 

subparagraph (A), there shall be made available to carry 

out section 198K- (i) $50,000,000 for fiscal year 2010; 

(ii) $60,000,000 for fiscal year 2011; 

(iii) $70,000,000 for fiscal year 2012; 

(iv) $80,000,000 for fiscal year 2013; and 

(v) $100,000,000 for fiscal year 2014. 

(F) SECTION 198P.-Of the amount authorized under 

subparagraph (A), there shall be made available to carry 

out section 198P- (i) $50,000,000 for fiscal year 2010; 

(ii) $60,000,000 for fiscal year 2011; 

(iii) $70,000,000 for fiscal year 2012; 

(iv) $80,000,000 for fiscal year 2013; and 

(v) $100,000,000 for fiscal year 2014. 

(5) ADMINISTRATION.-

(A) IN GENERAL.-There are authorized to be appropriated for the administration of this Act, including financial assistance under section 126(a), such sums as may be 

necessary for each of fiscal years 2010 through 2014. 

(B) CORPORATION.-Of the amounts appropriated 

under subparagraph (A) for a fiscal year, a portion shall be 

made available to provide financial assistance under section 126(a). 

(6) EVALUATION, TRAINING, AND TECHNICAL ASSISTANCE.­

Notwithstanding paragraphs (1), (2), and (4) and any other 

provision of law, of the amounts appropriated for a fiscal year 

under subtitles B, C, and H of title I of this Act and under titles I and II of the Domestic Volunteer Service Act of 1973, the 

Corporation shall reserve not more than 2.5 percent to carry 

out sections 112(e) and 179A and subtitle J, of which 

$1,000,000 shall be used by the Corporation to carry out section 179A. Notwithstanding subsection (b), amounts so reserved shall be available only for the fiscal year for which the 

amounts are reserved. 

(b) AVAILABILITY OF APPROPRIATIONS.-Funds appropriated 

under this section shall remain available until expended. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Sec. 601 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 180 

TITLE VI-MISCELLANEOUS 

PROVISIONS 

SEC. 601. AMTRAK WASTE DISPOSAL. 

(a) * * * 

* * * * * * * 

(b) PLAN.-Not later than 1 year after the date of enactment 

of this Act, the National Railroad Passenger Corporation shall prepare and submit to the appropriate committees of Congress a plan 

that sets forth a schedule and projected cost for the completion of 

the retrofit program referred to in the amendment made by subsection (a) within the time limit set forth under such amendment. 

(c) EFFECTIVE DATE.-The amendments made by subsection (a) 

shall take effect as if enacted on February 5, 1976. 

(d) ENVIRONMENTALLY SENSITIVE AREAS.-Not later than 1 

year after the date of enactment of this Act, the Secretary of Transportation, after appropriate notice and comment, and in consultation with the National Railroad Passenger Corporation, the Administrator of the Environmental Protection Agency, the Surgeon General, and State and local officials, shall promulgate such regulations as may be necessary to mitigate the impact of the discharge 

of human waste from railroad passenger cars on areas that may be 

considered environmentally sensitive. 

(e) AVAILABILITY OF INFORMATION CONCERNING DISPOSAL OF 

WASTE.-Not later than 1 year after the date of enactment of this 

Act, the Secretary of Transportation shall promulgate regulations 

directing the National Railroad Passenger Corporation to, where 

appropriate, publish printed information, and make public address 

announcements, explaining its existing disposal technology and the 

retrofit and new equipment program, and encouraging passengers 

using existing equipment not to dispose of wastes in stations, railroad yards, or while the train is moving through environmentally 

sensitive areas. 

SEC. 602. EXCHANGE PROGRAM WITH COUNTRIES IN TRANSITION 

FROM TOTALITARIANISM TO DEMOCRACY. 

(a) AUTHORIZATION OF ACTIVITIES; GRANTS OR CONTRACTS 

FOR EXCHANGES WITH FOREIGN COUNTRIES.-Pursuant to the 

MutualEducational and Cultural Exchange Act of 1961 and using 

the authorities contained therein, the President is authorized, 

when the President considers that it would strengthen international cooperative relations, to provide, by grant, contract, or otherwise, for exchanges with countries that are in transition from totalitarianism to democracy, which include, but are not limited to 

Poland, Hungary, Czechoslovakia, Bulgaria, and Romania- (1) by financing studies, research, instruction, and related 

activities-

(A) of or for American citizens and nationals in foreign 

countries; and 

(B) of or for citizens and nationals of foreign countries 

in American private businesses, trade associations, unions, 

chambers of commerce, and local, State, and Federal GovMay 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

181 NATIONAL AND COMMUNITY SERVICE ACT OF 1990 Sec. 602 

ernment agencies, located in or outside the United States; 

and 

(2) by financing visits and interchanges between the 

United States and countries in transition from totalitarianism 

to democracy. 

The program under this section shall be coordinated by the Department of State. 

(b) TRANSFER OF FUNDS.-The President is authorized to transfer to the appropriate appropriations account of the Department of 

State such sums as the President shall determine to be necessary 

out of the travel accounts of the departments and agencies of the 

United States, except for the Department of State, as the President 

shall designate. Such transfers shall be subject to the approval of 

the Committee on Appropriations of the House of Representatives 

and the Committee on Appropriations of the Senate. In addition, 

the President is authorized to accept such gifts or cost-sharing arrangements as may be proffered to sustain the program under this 

section. 

May 19, 2009 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

James Madison Memorial Fellowship Foundation §§2490.171-2490.999 

The decision that compliance would re­ sult in such alteration or burdens must 

be made by the agency head or his or her designee after considering all agency resources available for use in the 

funding and operation of the conducted 

program or activity and must be ac­ companied by a written statement of 

the reasons for reaching that conclusion. If an action required to comply 

with this section would result in such an alteration or such burdens, the 

agency shall take any other action 

that would not result in such an alteration or such burdens but would never­ theless ensure that, to the maximum 

extent possible, individuals with handicaps receive the benefits and services 

of the program or activity. 

§§ 2490.161-2490.169 [Reserved] 

§ 2490.170 Compliance procedures. 

(a) Except as provided in paragraph 

(b) of this section, this section applies 

to all allegations of discrimination on the basis of handicap in programs and 

activities conducted by the agency. 

(b) The agency shall process complaints alleging violations of section 

504 with respect to employment according to the procedures established by 

the Equal Employment Opportunity 

Commission in 29 CFR part 1614 pursuant to section 501 of the Rehabilitation 

Act of 1973 (29 U.S.C. 791). 

(c) The Director of Administration 

and Finance shall be responsible for coordinating implementation of this sec­ tion. Complaints may be sent to James 

Madison Memorial Fellowship Foundation, 2000 K Street, NW., suite 303, 

Washington, DC 20006. 

(d) The agency shall accept and investigate all complete complaints for 

which it has jurisdiction. All complete 

complaints must be filed within 180 

days of the alleged act of discrimination. The agency may extend this time 

period for good cause. (e) If the agency receives a complaint 

over which it does not have jurisdiction, it shall promptly notify the complainant and shall make reasonable efforts to refer the complaint to the appropriate Government entity. 

(f) The agency shall notify the Architectural and Transportation Barriers 

Compliance Board upon receipt of any 

complaint alleging that a building or 

facility that is subject to the Architectural Barriers Act of 1968, as amended 

(42 U.S.C. 4151--4157), is not readily accessible to and usable by individuals 

with handicaps. 

(g) Within 180 days of the receipt of a complete complaint for which it has jurisdiction, the agency shall notify the 

complainant of the results of the investigation in a letter containing-

(1) Findings of fact and conclusions 

of law; 

(2) A description of a remedy for each 

violation found; and 

(3) A notice of the right to appeal. 

(h) Appeals of the findings of fact and 

conclusions of law or remedies must be 

filed by the complainant within 90 days 

of receipt from the agency of the letter 

required by §2490.170(g). The agency 

may extend this time for good cause. 

(i) Timely appeals shall be accepted 

and processed by the head of the agency. 

(j) The head of the agency shall notify the complainant of the results of 

the appeal within 60 days of the receipt 

of the request. If the head of the agency determines that additional information is needed from the complainant, 

he or she shall have 60 days from the 

date of receipt of the additional information to make his or her determination on the appeal. 

(k) The time limits cited in paragraphs (g) and (j) of this section may be 

extended with the permission of the 

Assistant Attorney General. 

(1) The agency may delegate its authority for conducting complaint investigations to other Federal agencies, 

except that the authority for making 

the final determination may not be 

delegated to another agency. 

[58 FR 57699, Oct. 26, 1993] 

§§ 2490.171-2490.999 [Reserved] 

583 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

CHAPTER XXV-CORPORATION FOR 

NATIONAL AND COMMUNITY SERVICE 

Part Page 

2500-2504 [Reserved] 

2505 Rules implementing the Government in the Sunshine Act ............................................................. . 587 

2506 Collection of debts ................................................. . 590 

2507 Procedures for disclosure of records under the 

Freedom of Information Act ............................... . 605 

2508 Implementation of the Privacy Act of 1974 ............ . 615 

2510 Overall purposes and definitions ............................ . 625 

2513 [Reserved] 

2515 Service-learning program purposes ........................ . 630 

2516 School-based service-learning programs ................ . 630 

2517 Community-based service-learning programs ........ . 638 

2518 Service-learning clearinghouse .............................. . 642 

2519 Higher education innovative programs for commu- nity service ......................................................... . 643 

2520 General provisions: Americorps Subtitle C pro- grams .................................................................. . 647 

2521 Eligible Americorps Subtitle C program applicants 

and types of grants available for award .............. . 650 

2522 Americorps participants, programs, and applicants 656 

2523 Agreements with other Federal agencies for the 

provision of Americorps program assistance ...... . 681 

2524 Americorps technical assistance and other special 

grants .................................................................. . 682 

2525 National Service Trust: Purpose and definitions ... . 684 

2526 Eligibility for an education award ......................... . 686 

2527 Determining the amount of an education award .... . 690 

2528 Using an education award ...................................... . 691 

2529 Payment of accrued interest .................................. . 694 

2530 Transfer of education awards ................................. . 695 

2531 Purposes and availability of grants for investment 

for quality and innovation activities .................. . 697 

2532 Innovative and special demonstration programs ... . 698 

2533 Technical assistance, training, and other service 

infrastructure-building activities ....................... . 700 

2534 Special activities ................................................... . 702 

585 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

45 CFR Ch. XXV (10-1-12 Edition) 

Part Page 

2540 General administrative provisions .......................... 702 

2541 Uniform administrative requirements for grants 

and cooperative agreements to State and local 

governments ......................................................... 712 

2543 Grants and agreements with institutions of higher 

education, hospitals, and other non-profit orga- nizations ............................................................... 740 

2544 Solicitation and acceptance of donations ............... 768 

2550 Requirements and general provisions for State 

commissions and alternative administrative en- tities..................................................................... 770 

2551 Senior Companion Program .. .. . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 778 

2552 Foster Grandparent Program .. .. ...... .. ...... .. ...... .. ...... 793 

2553 The Retired and Senior Volunteer Program ........... 809 

2554 Program Fraud Civil Remedies Act regulations ..... 822 

2555 Nondiscrimination on the basis of sex in education 

programs or activities receiving Federal finan- cial assistance .. .. . . . . .. .. . . . . .. .. . . . . .. .. . . . . .. .. . . . . .. .. . . . . .. .. . . 837 

586 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

PARTS 2500-2504 [RESERVED] 

PART 2505-RULES IMPLEMENTING 

THE GOVERNMENT IN THE SUNSHINE ACT 

Sec. 

2505.1 Applicability. 

2505.2 Definitions. 

2505.3 To what extent are meetings of the 

Board open to the public? 

2505.4 On what grounds may the Board close a meeting or withhold information? 

2505.5 What are the procedures for closing a meeting, withholding information, and 

responding to requests by affected per­ sons to close a meeting? 

2505.6 What are the procedures for making a 

public announcement of a meeting? 

2505.7 What are the procedures for changing 

the time or place of a meeting following 

the public announcement? 

AUTHORITY: 5 U.S.C. 552b; 42 U.S.C. 

12651c(c). 

SOURCE: 64 FR 66403, Nov. 26, 1999, unless 

otherwise noted. 

§ 2505.1 Applicability. 

(a) This part implements the provisions of section 3(a) of the Government 

in the Sunshine Act (5 U.S.C. 552b). 

These procedures apply to meetings of 

the Corporation's Board of Directors, or to any subdivision of the Board that 

is authorized to act on its behalf. The 

Board of Directors may waive the provisions of this part to the extent au­ thorized by law. 

(b) Nothing in this part expands or limits the present rights of any person 

under the Freedom of Information Act 

(5 U.S.C. 552), except that the exemptions set forth in § 2505.4 shall govern in 

the case of any request made pursuant 

to the Freedom of Information Act to 

copy or inspect the transcript, recording, or minutes described in §2505.5. 

(c) Nothing is this part authorizes 

the Corporation to withhold from any 

individual any record, including transcripts, recordings, or minutes required 

by this part, which is otherwise accessible to such individual under the Privacy Act (5 U.S.C. 552a). 

§ 2505.2 Definitions. 

As used in this part: 

(a) Board means the Board of Directors established pursuant to 42 U.S.C. 

12651a, or any subdivision of the Board 

that is authorized to act on its behalf. 

(b) Chairperson means the Member 

elected by the Board to serve as Chairperson. 

(c) General Counsel means the Corporation's principal legal officer or 

other attorney acting at the designation of the Corporation's principal 

legal officer. 

(d) Corporation means the Corporation for National and Community Service established pursuant to 42 U.S.C. 

12651. 

(e) Meeting means the deliberations 

of at least a quorum of the Corporation's Board of Directors where such 

deliberations determine or result in the 

joint conduct or disposition of official 

Corporation business. A meeting may 

be conducted under this part through 

telephone or similar communications 

equipment by means of which all participants may communicate with each 

other. The term meeting includes a 

portion thereof. The term meeting does 

not include: 

(1) Notation voting or similar consideration of business, whether by circulation of material to the Members individually in writing or by a polling of 

the members individually by telephone. 

(2) Action by a quorum of the Board 

to-

(i) Open or to close a meeting or to 

release or to withhold information pursuant to § 2505.5; 

(ii) Set an agenda for a proposed 

meeting; 

(iii) Call a meeting on less than seven 

days' notice as permitted by §2505.6(b); 

or 

(iv) Change the subject-matter or the 

determinations to open or to close a 

publicly announced meeting under 

§ 2505. 7(b). 

(3) A gathering for the purpose of receiving briefings from the Corporation's staff or expert consultants, provided that Members of the Board do 

not engage in deliberations at such sessions that determine or result in the 

joint conduct or disposition of official 

Corporation business on such matters. 

(4) A gathering for the purpose of engaging in preliminary discussions or 

587 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2505.3 

exchanges of views that do not effectively predetermine official Corporation action on a particular matter. 

(f) Member means a current member 

of the Corporation's Board of Directors. 

(g) Presiding Officer means the Chairperson or, in the absence of the Chairperson, the Vice Chairperson of the 

Board of Directors or other member au­ thorized to act in this capacity by the 

Board. 

(h) Quorum means the number of 

Members authorized to conduct Corporation business pursuant to the 

Board's bylaws. 

§ 2505.3 To what extent are meetings 

of the Board open to the public? 

The Board shall conduct meetings, as defined in § 2505.2, in accordance with 

this part. Except as provided in § 2505.4, 

the Board's meetings shall be open to 

the public. The public is invited to attend all meetings of the Board that are open to the public but may not participate in the Board's deliberations at 

such meetings or record any meeting 

by means of electronic, photographic, 

or other device. 

§ 2505.4 On what grounds may the 

Board close a meeting or withhold 

information? 

The Board may close a meeting or withhold information that otherwise 

would be required to be disclosed under 

§§2505.5, 2505.6 and 2505.7 if it properly 

determines that an open meeting or disclosure is likely to-

(a) Disclose matters that are-

(1) Specifically authorized under criteria established by an Executive order 

to be kept secret in the interests of na­ tional defense or foreign policy; and 

(2) In fact properly classified pursuant to such Executive order; 

(b) Relate solely to the internal personnel rules and practices of the Corporation; 

(c) Disclose matters specifically ex­ empted from disclosure by statute 

(other than 5 U.S.C. 552), provided that 

such statute-

(!) Requires that the matters be 

withheld from the public in such a manner as to leave no discretion on the 

issue; or 

45 CFR Ch. XXV (10-1-12 Edition) 

(2) Establishes particular criteria for 

withholding or refers to particular 

types of matters to be withheld; 

(d) Disclose trade secrets and com­ mercial or financial information obtained from a person and privileged or confidential; 

(e) Involve accusing any person of a crime, or formally censuring any person; 

(f) Disclose information of a personal 

nature where disclosure would con­ stitute a clearly unwarranted invasion 

of personal privacy; 

(g) Disclose investigatory records 

compiled for law enforcement purposes, or information which, if written, would 

be contained in such records, but only 

to the extent that the production of 

such records or information would- (1) Interfere with enforcement proceedings; 

(2) Deprive a person of a right to a fair trial or an impartial adjudication; 

(3) Constitute an unwarranted invasion of personal privacy; 

(4) Disclose the identity of a con­ fidential source and, in the case of a record compiled by a criminal law en­ forcement authority in the course of a criminal investigation, or by an agency 

conducting a lawful national security 

intelligence investigation, confidential 

information furnished only by the con­ fidential source; 

(5) Disclose investigative techniques 

and procedures; or (6) Endanger the life or physical safety of law enforcement personnel; 

(h) Disclose information contained in or related to examination, operating or condition reports prepared by, on behalf of, or for the use of an agency re­ sponsible for the regulation or supervision of financial institution; 

(i) Disclose information the premature disclosure of which would be 

likely to significantly frustrate implementation of a proposed action of the 

Corporation, except that this provision 

shall not apply in any instance where 

the Corporation has already disclosed 

to the public the content or nature of 

its proposed action, or where the Corporation is required by law to make 

such disclosure on its own initiative 

prior to taking final action; or (j) Specifically concerning the Corporation's issuance of a subpoena or 

588 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2505.5 

the Corporation's participation in a civil action or proceeding, an action in a foreign court or international tribunal, or an arbitration, or the initiation, conduct, or disposition by the 

Corporation of a particular case of formal adjudication pursuant to the procedures in 5 U.S.C. 554 or otherwise involving a determination on the record 

after opportunity for a hearing. 

§ 2505.5 What are the procedures for 

closing a meeting, withholding information, and responding to re­ quests by affected persons to close a meeting? 

(a) The Board may vote to close a meeting or withhold information pertaining to a meeting. Such action may 

be taken only when a majority of the 

entire membership of the Board votes 

to take such action. A separate vote 

shall be taken with respect to each ac­ tion under § 2505.4. The Board may act 

by taking a single vote with respect to a series of meetings which are proposed 

to be closed to the public, or with re­ spect to any information concerning a series of meetings, so long as each 

meeting in the series involves the same particular matters and is scheduled to 

be held no more than thirty days after 

the initial meeting in the series. Each 

Member's vote under this paragraph 

shall be recorded and no proxies shall 

be allowed. 

(b) If your interests may be directly 

affected if a meeting is open you may 

request that the Board close the meeting on one of the grounds referred to in 

§2505.4(e), (f), or (g). You should submit 

your request to the Office of the General Counsel, Corporation for National 

and Community Service, 1201 New York 

Avenue NW, Washington, D.C. 20525. 

The Board shall, upon the request of 

any one of its members, determine by 

recorded vote whether to grant your 

request. 

(c) Within one working day of any 

vote taken pursuant to this section, 

the Board shall make publicly available a written copy of such vote re­ flecting the vote of each Member on the question. If a meeting is to be 

closed to the public, the Board shall, 

within one working day, make available a full written explanation of its 

action closing the meeting and a list of 

all persons expected to attend the 

meeting and their affiliation. 

(d) For each closed meeting, the General Counsel shall publicly certify that, 

in his or her opinion, the meeting may 

be closed to the public and shall state 

each relevant exemption relied upon. A 

copy of the certification shall be available for public inspection. 

(e) For each closed meeting, the 

Board shall issue a statement setting 

forth the time, place, and persons 

present. A copy of such statement shall 

be available for public inspection. 

(f)(l) For each closed meeting, with 

the exception of a meeting closed pursuant to § 2505.4(h) or (j), the Board 

shall maintain a complete transcript or 

electronic recording adequate to record 

fully the proceedings of each meeting. 

(2) For meetings that are closed pursuant to § 2505.4(h) or (j), the Board 

may maintain a set of minutes in lieu 

of a transcript or recording. Such minutes shall fully and clearly describe all 

matters discussed and shall provide a 

full and accurate summary of any actions taken, and the reasons therefor, 

including a description of each of the 

views expressed on any item and the 

record of any vote. All documents considered in connection with any action 

shall be identified in such minutes. 

(3) The Corporation shall make 

promptly available to the public, in a 

place easily accessible to the public, 

the transcript, electronic recording, or 

minutes of the discussion of any item 

on the agenda, or of any item of the 

testimony of any witness received at 

the meeting, except for such item or 

items of such discussion or testimony 

as the Corporation determines to contain information which may be properly withheld. Copies of such transcript, or minutes, or a transcription of 

such recording disclosing the identity 

of each speaker, shall be furnished to 

any person at the actual cost of duplication or transcription. The Corporation shall maintain the transcript, recording, or minutes for each closed 

meeting for at least two years or at 

least one year after the conclusion of 

any Corporation business acted upon at 

the meeting, whichever occurs later. 

589 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2505.6 

§ 2505.6 What are the procedures for 

making a public announcement of a meeting? 

(a) For each meeting, the Board shall 

make a public announcement, at least one week before the meeting, of-

(1) The meeting's time and place; 

(2) The matters to be considered; 

(3) Whether the meeting is to be open or closed; and 

(4) The name and business telephone 

number of the official designated by 

the Board to respond to requests for information about the meeting. 

(b) The one week advance notice re­ quired by paragraph (a) of this section 

may be reduced only if-

(1) The Board determines by recorded 

vote that Board business requires that 

the meeting be scheduled in less than seven days; and 

(2) The public announcement re­ quired by paragraph (a) of this section 

is made at the earliest practicable time 

and posted on the Corporation's home 

page. 

(c) Immediately following a public 

announcement required by paragraph 

(a) of this section, the Corporation will 

submit for publication in the FEDERAL 

REGISTER a notice of the time, place, 

and subject matter of the meeting, 

whether the meeting is open or closed, 

any change in one of the preceding, and 

the name and phone number of the official designated by the agency to re­ spond to requests for information 

about the meeting. 

§ 2505. 7 What are the procedures for 

changing the time or place of a meeting following the public an­ nouncement? 

(a) After there has been a public an­ nouncement of a meeting, the time or place of the meeting may be changed 

only if the Board publicly announces the change at the earliest practicable 

time. Such a change need not be determined by recorded vote. 

(b) After there has been a public an­ nouncement of a meeting, the subjectmatter of the meeting, or the determination of the Board to open or to 

close a meeting may be changed only 

when-

(1) The Board determines, by re­ corded vote, that Board business so re45 CFR Ch. XXV (10-1-12 Edition) 

quires and that no earlier announce­ ment of the change was possible; and 

(2) The Board publicly announces the 

change and the vote of each Member at 

the earliest practicable time. 

(c) The deletion of any subject-matter previously announced for a meeting 

is not a change requiring the approval 

of the Board under paragraph (b) of 

this section. 

PART 2506-COLLECTION OF DEBTS 

Subpart A-Introduction 

Sec. 

2506.1 Why is the Corporation issuing these 

regulations? 

2506.2 Under what authority does the Corporation issue these regulations? 

2506.3 What definitions apply to the regulations in this part? 

2506.4 What types of debts are excluded 

from these regulations? 

2506.5 If a debt is not excluded from these 

regulations, may it be compromised, sus­ pended, terminated, or waived? 

2506.6 What is a claim or debt? 

2506.7 Why does the Corporation have to 

collect debts? 

2506.8 What action might the Corporation 

take to collect debts? 

2506.9 What rights do I have as a debtor? 

Subpart B--General Provisions 

2506.10 Will the Corporation use its cross­ servicing agreement with Treasury to 

collect its debts? 

2506.11 Will the Corporation refer debts to 

the Department of Justice? 

2506.12 Will the Corporation provide information to credit reporting agencies? 

2506.13 How will the Corporation contract 

for private collection services? 

2506.14 What should I expect to receive from 

the Corporation if I owe a debt to the 

Corporation? 

2506.15 What will the notice tell me regarding collection actions that might be 

taken if the debt is not paid within 60 

days of the notice, or arrangements to 

pay the debt are not made within 60 days 

of the notice? 

2506.16 What will the notice tell me about 

my opportunity for review of my debt? 

2506.17 What must I do to obtain a review of 

my debt, and how will the review process 

work? 

2506.18 What interest, penalty charges, and 

administrative costs will I have to pay on a debt owed to the Corporation? 

2506.19 How can I resolve my debt through 

voluntary repayment? 

590 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2506.2 

2506.20 What is the extent of the Chief Executive Officer's authority to compromise 

debts owed to the Corporation, or to suspend or terminate collection action on 

such debts? 

2506.21 May the Corporation's failure to 

comply with these regulations be used as a defense to a debt? 

Subpart C-Salary Offset 

2506.30 What debts are included or excluded 

from coverage of these regulations on salary offset? 

2506.31 May I ask the Corporation to waive 

an overpayment that otherwise would be 

collected by offsetting my salary as a Federal employee? 

2506.32 What are the Corporation's procedures for salary offset? 

2506.33 How will the Corporation coordinate 

salary offsets with other agencies? 

2506.34 Under what conditions will the Corporation make a refund of amounts collected by salary offset? 

2506.35 Will the collection of a debt by salary offset act as a waiver of my rights to 

dispute the claimed debt? 

Subpart D-Tax Refund Offset 

2506.40 Which debts can the Corporation 

refer to Treasury for collection by offsetting tax refunds? 

2506.41 What are the Corporation's procedures for collecting debts by tax refund 

offset? 

Subpart E-Administrative Offset 

2506.50 Under what circumstances will the 

Corporation collect amounts that I owe 

to the Corporation (or some other Federal agency) by offsetting the debt 

against payments that the Corporation 

(or some other Federal agency) owes me? 

2506.51 How will the Corporation request 

that my debt to the Corporation be collected by offset against some payment 

that another Federal agency owes me? 

2506.52 What procedures will the Corporation use to collect amounts I owe to a Federal agency by offsetting a payment 

that the Corporation would otherwise 

make to me? 

2506.53 When may the Corporation make an offset in an expedited manner? 

2506.54 Can a judgment I have obtained 

against the United States be used to satisfy a debt that I owe to the Corporation? 

Subpart F-Administrative Wage 

Garnishment 

2506.55 How will the Corporation collect 

debts through Administrative Wage Garnishment? 

AUTHORITY: 5 U.S.C. 5514; 31 U.S.C. 3701- 3720A, 3720D; 44 U.S.C. 2104(a). 

SOURCE: 68 FR 16438, Apr. 4, 2003, unless 

otherwise noted. 

Subpart A-Introduction 

§ 2506.1 Why is the Corporation 

issuing these regulations? 

(a) The Corporation is issuing these 

regulations to inform the public of procedures that may be used by the Corporation for the collection of debt. 

(b) These regulations provide that 

the Corporation will attempt to collect 

debts owed to it or other Government 

agencies either directly, or by other means including salary offsets, administrative offsets, tax refund offsets, or administrative wage garnishment. 

(c) These regulations also provide 

that the Corporation has entered into a cross-servicing agreement with the 

U.S. Department of the Treasury 

(Treasury) under which the Treasury 

will take authorized action to collect 

amounts owed to the Corporation. 

§ 2506.2 Under what authority does the 

Corporation issue these regulations? 

(a) The Corporation is issuing the 

regulations in this part under the au­ thority of 31 U.S.C. chapter 37, 3701- 3720A and 3720D. These sections implement the requirements of the Federal 

Claims Collection Act of 1966, as amended by the Debt Collection Act of 

1982 and the Debt Collection Improvement Act of 1996. 

(b) The Corporation is also issuing 

the regulations in this part to conform 

to the Federal Claims Collection 

Standards (FCCS), which prescribe 

standards for handling the Federal 

Government's claims for money or property. The FCCS are issued by the 

Department of Justice (DOJ) and the 

Treasury at 31 CFR chapter IX, parts 

900--904. The Corporation adopts those 

standards without change. The regulations in this part supplement the FCCS 

by prescribing procedures necessary 

and appropriate for the Corporation's 

operations. 

(c) The Corporation is also issuing 

the regulations in this part to conform 

to the standards for handling Administrative Wage Garnishment processing 

591 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2506.3 

by the Federal Government. The standards are issued by the Treasury at 31 

CFR 285.11. The Corporation adopts 

those standards without change. The 

regulations in this part supplement the 

standards by prescribing procedures 

necessary and appropriate for the Corporation's operations. 

(d) The Corporation is further issuing 

the regulations in this part under the 

authority of 5 U.S.C. 5514, and the salary offset regulations published by the 

Office of Personnel and Management at 

5 CFR part 550, subpart K. 

(e) All of these debt collection regulations are issued under the Corporation's authority under 42 U.S.C. 

1265lc(c). 

§ 2506.3 What definitions apply to the 

regulations in this part? 

As used in this part: 

Administrative offset means withholding funds payable by the United 

States (including funds payable by the 

United States on behalf of a State government) to, or held by the United 

States for, a person to satisfy a debt. 

Administrative wage garnishment means a process whereby a Federal 

agency may, without first obtaining a court order, order an employer to withhold up to 15 percent of your disposable 

pay for payment to the Federal agency 

to satisfy a delinquent non-tax debt. 

Agency means a department, agency, 

court, court administrative office, or instrumentality in the executive, judicial, or legislative branch of government, including a government corporation. 

Certification means a written statement received by a paying agency or disbursing official from a creditor 

agency that requests the paying agency or disbursing official to offset the 

salary of an employee and specifies 

that required procedural protections 

have been afforded the employee. 

Chief Executive Officer means the 

Chief Executive Officer of the Corporation, or his or her designee. 

Claim (see definition of Debt in this 

section). 

Compromise means the settlement of a debt for less than the full amount 

owed. 

Corporation means the Corporation 

for National and Community Service. 

45 CFR Ch. XXV (10-1-12 Edition) 

Credi tor agency means the agency to 

which the debt is owed, including a debt collection center when acting on behalf of the creditor agency. 

Cross-servicing agreement is a letter 

of agreement entered into between the 

Corporation and the Financial Management Service (FMS) of the Treasury in 

which the Corporation has authorized 

FMS to take all appropriate actions to 

enforce collection of debts or groups of 

debts referred to FMS by the Corporation. These debt collection services are provided by FMS on behalf of the Corporation in accordance with all statutory and regulatory requirements. 

Day means calendar day. To count 

days, include the last day of the period 

unless it is a Saturday, a Sunday, or a Federal legal holiday. 

Debt and claim are deemed synony­ mous and interchangeable. These terms mean an amount of money, funds, or property that has been determined by an agency official to be due the United 

States from any person, organization, or entity except another Federal agency. For the purpose of administrative 

offset under 31 U.S.C. 3716 and subpart 

E of these regulations, the terms, 

"debt" and "claim" also include 

money, funds or property owed by a person to a State (including past-due 

support being enforced by a State); the 

District of Columbia; American Samoa; 

Guam; the United States Virgin Islands; the Commonwealth of the North­ ern Mariana Islands; or the Commonweal th of Puerto Rico. 

Debt collection center means the 

Treasury or any other agency or division designated by the Secretary of the 

Treasury with authority to collect 

debts on behalf of creditor agencies. 

Debtor means a person, organization, or entity, except another Federal agency, who owes a debt. Use of the terms 

"I," "you," "me," and similar ref­ erences to the reader of the regulations 

in this part are meant to apply to debt­ ors as defined in this paragraph. 

Delinquent debt means a debt that 

has not been paid by the date specified 

in the Corporation's initial written demand for payment or applicable agreement or instrument (including a postdelinquency payment agreement), un­ less other satisfactory payment ar­ rangements have been made. 

592 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2506.5 

Disposable pay means the part of an employee's pay that remains after deductions that are required to be withheld by law have been made. 

Employee means a current employee 

of an agency, including a current mem­ ber of the Armed Forces or Reserve of 

the Armed Forces of the United States. 

Federal Claims Collection Standards 

(FCCS) means the standards currently 

published by DOJ and the Treasury at 

31 CFR parts 900--904. 

Paying agency means any agency 

that is making payments of any kind 

to a debtor. In some cases, the Corporation may be both the creditor agency 

and the paying agency. 

Payroll office means the office that 

is primarily responsible for payroll 

records and the coordination of pay 

matters with the appropriate personnel 

office. 

Person includes a natural person or persons, profit or non-profit corporation, partnership, association, trust, 

estate, consortium, state or local government, or other entity that is capable of owing a debt to the United 

States; however, agencies of the United 

States are excluded. 

Private collection contractor means a private debt collector under contract 

with an agency to collect a non-tax 

debt owed to the United States. 

Salary offset means a payroll procedure to collect a debt under 5 U.S.C. 

5514 and 31 U.S.C. 3716 by deduction(s) 

at one or more officially established 

pay intervals from the current pay ac­ count of an employee, without his or her consent. 

Tax refund offset means the reduction of a tax refund by the amount of a past-due legally enforceable debt owed 

to the Corporation or any other Federal agency. 

Waiver means the cancellation, re­ mission, forgiveness, or non-recovery 

of a debt. 

Withholding order means any order 

for withholding or garnishment of pay 

issued by an agency, or judicial or administrative body. 

§ 2506.4 What types of debts are ex­ cluded from these regulations? 

The following types of debts are ex­ cluded: 

(a) Debts or claims arising under the 

Internal Revenue Code (26 U.S.C. 1 et 

seq.) or the tariff laws of the United 

States, or the Social Security Act (42 

U.S.C. 301 et seq.); except as provided 

under sections 204(f) and 1631 (42 U.S.C. 

404(f) and 1383(b)(4)(A)). 

(b) Any case to which the Contract 

Disputes Act (41 U.S.C. 601 et seq.) applies; 

(c) Any case where collection of a debt is explicitly provided for or provided by another statute, e.g., travel 

advances under 5 U.S.C. 5705 and em­ ployee training expenses under 5 U.S.C. 

4108, or, as provided for by title 11 of 

the United States Code, when the 

claims involve bankruptcy; 

(d) Any debt based in whole or in part on conduct in violation of the antitrust 

laws or involving fraud, the presentation of a false claim, or misrepresentation on the part of the debtor or any 

party having an interest in the claim, as described in the FCCS, unless DOJ 

authorizes the Corporation to handle 

the collection; 

(e) Claims between Federal agencies; 

(f) Unless otherwise provided by law, 

administrative offset of payments 

under the authority of 31 U.S.C. 3716 to 

collect a debt may not be initiated more than 10 years after the Government's right to collect the debt first 

accrued. (Exception: The 10-year limit 

does not apply if facts material to the 

Federal Government's right to collect 

the debt were not known and could not 

reasonably have been known by the official or officials of the Government 

who were charged with the responsibility to discover and collect such 

debts.) The 10-year limitation also does 

not apply to debts reduced to a judgment; and 

(g) Unless otherwise stated, debts 

which have been transferred to the 

Treasury or referred to the DOJ will be 

collected in accordance with the procedures of those agencies. 

§ 2506.5 If a debt is not excluded from 

these regulations, may it be com­ promised, suspended, terminated, or waived? 

Nothing in this part precludes: 

(a) The compromise, suspension, or termination of collection actions, 

where appropriate under the FCCS, or 

593 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2506.6 

the use of alternative dispute resolution methods if they are consistent 

with applicable law and regulations. 

(b) An employee from requesting 

waiver of an erroneous payment under 

5 U.S.C. 5584, 10 U.S.C. 2774, or 32 U.S.C. 

716; or any debtor from questioning the 

amount or validity of a debt, in the manner set forth in this part. 

§ 2506.6 What is a claim or debt? 

A claim or debt is an amount of 

money, funds, or property that has 

been determined by an agency official 

to be due the United States from any 

person, organization, or entity except 

another Federal agency (see § 2506.3). 

§2506.7 Why does the Corporation 

have to collect debts? 

Federal agencies are required to try 

to collect claims or debts of the Federal Government for money, funds, or property arising out of the agency's ac­ tivities. 

§ 2506.8 What action might the Corporation take to collect debts? 

(a) There are a number of actions 

that the Corporation is permitted to 

take when attempting to collect debts. 

These actions include: 

(1) Salary, tax refund or administrative offset, or administrative wage garnishment (see subparts C, D, E, and F 

of this part respectively); or 

(2) Using the services of private collection contractors. 

(b) In certain instances, usually after 

collection efforts have proven unsuc­ cessful, the Corporation transfers debts 

to the Treasury for collection or refers 

them to the DOJ for litigation (see 

§§2506.10 and 2506.11). 

§ 2506.9 What rights do I have as a debtor? 

As a debtor you have several basic 

rights. You have a right to: 

(a) Notice as set forth in these regulations (see §2506.14); 

(b) Inspect the records that the Corporation has used to determine that 

you owe a debt (see §2506.14); 

(c) Request review of the debt and 

possible payment options (see §2506.17); 

(d) Propose a voluntary repayment 

agreement (see §2506.19); and/or 

45 CFR Ch. XXV (10-1-12 Edition) 

(e) Question if the debt is excluded 

from these regulations (see § 2506.5(b)). 

Subpart B-General Provisions 

§ 2506.10 Will the Corporation use its 

cross-servicing agreement with 

Treasury to collect its debts? 

(a) The Corporation entered into a cross-servicing agreement on March 26, 

1999, with Treasury Financial Management Services (FMS) that authorizes 

the Treasury to take the collection ac­ tions described in this part on behalf of 

the Corporation (see § 2506.3). The Corporation will refer debts or groups of 

debts to FMS for collection action. The 

debt collection procedures that the 

Treasury FMS uses are based on 31 

U.S.C. chapter 37 and this part. 

(b) The Corporation must transfer to 

the Treasury any debt that has been 

delinquent for a period of 180 days or more, so that the Secretary of the 

Treasury may take appropriate action 

to collect the debt or terminate collection action. This is pursuant to §901.3 

of the FCCS. 

(c) Paragraph (b) of this section will 

not apply to any debt or claim that: 

(1) Is in litigation or foreclosure; 

(2) Will be disposed of under an approved asset sales program; 

(3) Has been referred to a private collection contractor for collection for a period of time acceptable to the Secretary of the Treasury; 

(4) Is at a debt collection center for a period of time acceptable to the Secretary of the Treasury; 

(5) Will be collected under internal 

offset procedures within 3 years a~er the date the debt or claim is first delinquent; or 

(6) Is exempt from this requirement 

based on a determination by the Secretary of the Treasury. 

§ 2506.11 Will the Corporation refer 

debts to the Department of Justice? 

The Corporation will refer to DOJ for 

litigation debts on which aggressive 

collection actions have been taken, but 

which could not be collected, com­ promised, suspended, or terminated. 

Referrals will be made as early as possible, consistent with aggressive Corporation collection action, and within 

594 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2506.14 

the period for bringing a timely suit 

against the debtor. 

§ 2506.12 Will the Corporation provide 

information to credit reporting 

agencies? 

(a) The Corporation will report cer­ tain delinquent debts to appropriate consumer credit reporting agencies by 

providing the following information: 

(1) A statement that the debt is valid 

and overdue; 

(2) The name, address, taxpayer identification number, and any other information necessary to establish the identity of the debtor; 

(3) The amount, status, and history 

of the debt; and 

(4) The program or pertinent activity 

under which the debt arose. 

(b) Before disclosing debt information to a credit reporting agency, the 

Corporation: 

(1) Takes reasonable action to locate 

the debtor if a current address is not 

available; 

(2) Provides the notice required under 

§2506.14(a) if a current address is available; and 

(3) Obtains satisfactory assurances from the credit reporting agency that 

it complies with the Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) and 

other Federal laws governing the provision of credit information. 

(c) At the time debt information is 

submitted to a credit reporting agency, 

the Corporation provides a written 

statement to the reporting agency that 

all required actions have been taken. 

In addition, the Corporation thereafter ensures that the credit reporting agency is promptly informed of any substantive change in the conditions or amount of the debt, and promptly 

verifies or corrects information relevant to the debt. 

(d) If a debtor disputes the validity of 

the debt, the credit reporting agency 

refers the matter to the appropriate 

Corporation official. The credit reporting agency excludes the debt from its 

reports until the Corporation certifies 

in writing that the debt is valid. 

(e) The Corporation may disclose to a commercial credit bureau information 

concerning a commercial debt, including the following: 

(1) Information necessary to establish the name, address, and employer 

identification number of the commer­ cial debtor; 

(2) The amount, status, and history 

of the debt; and 

(3) The program or pertinent activity 

under which the debt arose. 

§ 2506.13 How will the Coryoration 

contract for private collection serv­ ices? 

The Corporation uses the services of a private collection contractor when it 

determines that such use is in the Corporation's best interest. When the Corporation determines that there is a need to contract for private collection 

services, the Corporation: 

(a) Retains sole authority to: 

(1) Resolve any dispute with the debt­ or regarding the validity of the debt; 

(2) Compromise the debt; 

(3) Suspend or terminate collection 

action; 

(4) Refer the debt to the DOJ for litigation; and 

(5) Take any other action under this 

part; 

(b) Requires the contractor to com­ ply with the: 

(1) Privacy Act of 1974, as amended, 

to the extent specified in 5 U.S.C. 

552a(m); 

(2) Fair Debt Collection Practices 

Act (15 U.S.C. 1692--16920); and 

(3) Other applicable Federal and 

State laws pertaining to debt collection practices and applicable regulations of the Corporation in this part; 

(c) Requires the contractor to ac­ count accurately and fully for all 

amounts collected; and 

(d) Requires the contractor to provide to the Corporation, upon request, 

all data and reports contained in its 

files related to its collection actions on a debt. 

§ 2506.14 What should I expect to re­ ceive from the Corporation if I owe a debt to the Corporation? 

(a) The Corporation will send you a written notice when we determine that 

you owe a debt to the Corporation. The 

notice will be hand-delivered or sent to 

you at the most current address known 

to the Corporation. The notice will inform you of the following: 

595 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2506.15 

(1) The amount, nature, and basis of 

the debt; 

(2) That a designated Corporation official has reviewed the debt and determined that it is valid; 

(3) That payment of the debt is due as of the date of the notice, and that 

the debt will be considered delinquent 

if you do not pay it within 30 days of 

the date of the notice; 

(4) The Corporation's policy con­ cerning interest, penalty charges, and 

administrative costs (see § 2506.18), including a statement that such assess­ ments must be made against you un­ less excused in accordance with the 

FOOS and this part; 

(5) That you have the right to inspect 

and copy disclosable Corporation 

records pertaining to your debt, or to 

receive copies of those records if personal inspection is impractical; 

(6) That you have the opportunity to 

enter into an agreement, in writing 

and signed by both you and the designated Corporation official, for voluntary repayment of the debt (see 

§2506.19); 

(7) The address, telephone number, 

and name of the Corporation official 

available to discuss the debt; 

(8) Possible collection actions that 

might be taken if the debt is not paid 

within 60 days of the notice, or ar­ rangements to pay the debt are not 

made within 60 days of the notice (see 

§2506.15 for a fuller description of possible actions); 

(9) That the Corporation may sus­ pend or revoke any licenses, permits, or other privileges for failure to pay a debt;and 

(10) Information on your opportunity 

to obtain a review concerning the ex­ istence or amount of the debt, or the 

proposed schedule for offset of Federal 

employee salary payments (see 

§2506.16). 

(b) The Corporation will respond 

promptly to communications from you. 

(c) Exception to entitlement to no­ tice, hearing, written responses, and 

final decisions. With respect to the regulations covering internal salary offset 

collections (see § 2506.32), the Corporation excepts from the provisions of 

paragraph (a) of this section- (!) Any adjustment to pay arising out 

of an employee's election of coverage 

45 CFR Ch. XXV (10-1-12 Edition) 

or a change in coverage under a Federal benefits program requiring periodic deductions from pay, if the 

amount to be recovered was accumu­ lated over 4 pay periods or less; 

(2) A routine intra-agency adjustment of pay that is made to correct an overpayment of pay attributable to 

clerical or administrative errors or delays in processing pay documents, if 

the overpayment occurred within the 4 

pay periods preceding the adjustment 

and, at the time of such adjustment, or as soon thereafter as practical, the individual is provided written notice of 

the nature and the amount of the adjustment and point of contact for con­ testing such adjustment; or (3) Any adjustment to collect a debt 

amounting to $50 or less, if, at the time 

of such adjustment, or as soon thereafter as practical, the individual is provided written notice of the nature and 

the amount of the adjustment and a point of contact for contesting such adjustment. 

§ 2506.15 What will the notice tell me regarding collection actions that 

miJht be taken if the debt is not 

paid within 60 days of the notice, or arrangements to pay the debt are not made within 60 days of the no­ tice? 

The notice provided under § 2506.14 

will advise you that, within 60 days of 

the date of the notice, your debt (including any interest, penalty charges, 

and administrative costs) must be paid or you must enter into a voluntary re­ payment agreement. If you do not pay 

the debt or enter into the agreement 

within that deadline, the Corporation 

may enforce collection of the debt by 

any or all of the following methods: 

(a) By transferring the debt to the 

Treasury for collection, including 

under a cross-servicing agreement with 

the Treasury (see §2506.10); 

(b) By referral to a credit reporting 

agency (see §2506.12), private collection 

contractor (see §2506.13), or the DOJ 

(see § 2506.11); 

(c) If you are a Corporation em­ ployee, by deducting money from your 

disposable pay account until the debt 

(and all accumulated interest, penalty 

charges, and administrative costs) is 

paid in full (see subpart C of this part). 

The Corporation will specify the 

596 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2506.17 

amount, frequency, approximate beginning date, and duration of the deduction. 5 U.S.C. 5514 and 31 U.S.C. 3716 

govern such proceedings; 

(d) If you are an employee of a Federal agency other than the Corporation, by initiating certification procedures to implement a salary offset by 

that Federal agency (see subpart C of 

this part). 5 U.S.C. 5514 governs such 

proceedings; 

(e) By referring the debt to the 

Treasury for offset against any refund 

of overpayment of tax (see subpart D of 

this part); 

(f) By administrative offset (see subpart E of this part); 

(g) By administrative wage garnishment (see subpart F of this part); or 

(h) By liquidation of security or collateral. The Corporation has the right 

to hold security or collateral, liquidate 

it, and apply the proceeds to your debt 

through the exercise of a power of sale 

in the security instrument or a foreclosure. The Corporation will not follow the procedures in this paragraph 

(h) if the cost of disposing of the collateral will be disproportionate to its 

value. 

§ 2506.16 What will the notice tell me about my opportunity for review of 

my debt? 

The notice provided by the Corporation under §§ 2506.14 and 2506.15 will also 

advise you of the opportunity to obtain a review within the Corporation concerning the existence or amount of the 

debt or the proposed schedule for offset 

of Federal employee salary payments. 

The notice will also advise you of the 

following: 

(a) The name, address, and telephone 

number of a Corporation official whom 

you may contact concerning procedures for requesting a review; 

(b) The method and time period for 

requesting a review; 

(c) That the filing of a request for a review on or before the 60th day following the date of the notice will stay 

the commencement of collection proceedings; 

(d) The name and address of the Corporation official to whom you should 

send the request for a review; 

(e) That a final decision on the re­ view (if one is requested) will be issued 

in writing at the earliest practical 

date, but not later than 60 days a~er 

the receipt of the request for a review, 

unless you request, and the review official grants, a delay in the proceedings; 

(f) That any knowingly false or frivolous statements, representations, or 

evidence may subject you to: 

(1) Disciplinary procedures appropriate under 5 U.S.C. chapter 75, 5 CFR 

part 752, or any other applicable statute or regulations; 

(2) Penalties under the False Claims 

Act (31 U.S.C. 3729-3733) or any other 

applicable statutory authority; and 

(3) Criminal penalties under 18 U.S.C. 

286, 287, 1001, and 1002, or any other applicable statutory authority; 

(g) Any other rights available to you 

to dispute the validity of the debt or to 

have recovery of the debt waived, or remedies available to you under statutes or regulations governing the program for which the collection is being 

made; and 

(h) That unless there are applicable 

contractual or statutory provisions to 

the contrary, amounts paid on or deducted for the debt that are later 

waived or found not owed will be 

promptly refunded to you. 

§ 2506.17 What must I do to obtain a review of my debt, and how will the 

review process work? 

(a) Request for review. (1) You have 

the right to request a review by the 

Corporation of the existence or the 

amount of your debt, the proposed 

schedule for offset of Federal employee 

salary payments, or whether the debt 

is past due or legally enforceable. If 

you want a review, you must send a written request to the Corporation official designated in the notice (see 

§ 2506.16(d)). 

(2) You must sign your request for re­ view and fully identify and explain 

with reasonable specificity all the 

facts, evidence, and witnesses that support your position. Your request for re­ view should be accompanied by available evidence to support your contentions. 

(3) Your request for review must be 

received by the designated officer or employee of the Corporation on or before the 60th calendar day following 

the date of the notice. Timely filing 

597 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2506.17 

will stay the commencement of collection procedures. The Corporation may 

consider requests filed after the 60-day 

period provided for in this section if 

you: 

(i) Can show that the delay was the 

result of circumstances beyond your 

control; or (ii) Did not receive notice of the filing deadline (unless you had actual no­ tice of the filing deadline). 

(b) Inspection of the Corporation 

records related to the debt. (1) If you 

want to inspect or copy the Corporation records related to the debt (see 

§2506.14(a)(5)), you must send a letter 

to the Corporation official designated 

in the notice. Your letter must be re­ ceived within 30 days of the date of the 

notice. 

(2) In response to the timely request 

described in paragraph (b)(l) of this 

section, the designated Corporation official will notify you of the location 

and time when you may inspect and 

copy records related to the debt. 

(3) If personal inspection of the Corporation records related to the debt is 

impractical, reasonable arrangements 

will be made to send you copies of 

those records. 

(c) Review official. (1) When required 

by Federal law or regulation, such as in a salary offset situation, the Corporation will request an administrative 

law judge, or hearing official from an­ other agency who is not under the su­ pervision or control of the Chief Executive Officer, to conduct the review. In 

these cases, the hearing official will, 

following the review, submit the review 

decision to the Chief Executive Officer 

for the issuance of the Corporation's 

final decision (see paragraph (f) of this 

section for content of the review decision). 

(2) When Federal law or regulation 

does not require the Corporation to 

have the review conducted by an administrative law judge, or by a hearing 

official from another agency who is not 

under the supervision or control of the 

Chief Executive Officer, the Corporation has the right to appoint a hearing 

official to conduct the review. In these 

cases, the hearing official will, following the review, submit the review 

decision to the Chief Executive Officer 

for the issuance of the Corporation's 

45 CFR Ch. XXV (10-1-12 Edition) 

final decision (see paragraph (f) of this 

section for the content of the review 

decision). 

(d) Review procedure. If you request a review, the review official will notify 

you of the form of the review to be provided. The review official will determine whether an oral hearing is re­ quired, or if a review of the written 

record is sufficient, in accordance with 

the FCCS. Although you may request an oral hearing, such a hearing is re­ quired only when a review of the documentary evidence cannot determine 

the question of indebtedness, such as when the validity of the debt turns on an issue of credibility or truthfulness. 

In either case, the review official will 

conduct the review in accordance with 

the FCCS. If the review will include an oral hearing, the notice sent to you by 

the review official will set forth the 

date, time, and location of the hearing. 

(e) Date of decision. (1) The review official will issue a written decision, 

based upon either the written record or documentary evidence and information 

developed at an oral hearing. This decision will be issued as soon as practical, 

but not later than 60 days after the 

date on which the Corporation received 

your request for a review, unless you 

request, and the review official grants, a delay in the proceedings. 

(2) If the Corporation is unable to 

issue a decision within 60 days after 

the receipt of the request for a hearing: 

(i) The Corporation may not issue a withholding order or take other action 

until the review (in whatever form) is 

held and a decision is rendered; and 

(ii) If the Corporation previously 

issued a withholding order to the debtor's employer, the Corporation must 

suspend the withholding order beginning on the 61st day after the receipt of 

the review request and continuing 

until a review (in whatever form) is 

held and a decision is rendered. 

(f) Content of review decision. The re­ view official will prepare a written decision that includes: 

(1) A statement of the facts presented 

to support the origin, nature, and 

amount of the debt; 

(2) The review official's findings, 

analysis, and conclusions; and 

(3) The terms of any repayment 

schedule, if applicable. 

598 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2506.19 

(g) Interest, penalty charge, and administrative cost accrual during review period. Interest, penalty charges, and administrative costs authorized by law 

will continue to accrue during the review period. 

§ 2506.18 What interest, penalty 

charges, and administrative costs 

will I have to pay on a debt owed to 

the Corporation? 

(a) Interest. (1) The Corporation will 

assess interest on all delinquent debts 

unless prohibited by statute, regulation, or contract. 

(2) Interest begins to accrue on all 

debts from the date that the debt be­ comes delinquent. The Corporation will 

not recover interest if you pay the debt 

within 30 days of the date on which interest begins to accrue. The Corporation will assess interest at the rate es­ tablished annually by the Secretary of 

the Treasury under 31 U.S.C. 3717, un­ less a different rate is either necessary 

to protect the interests of the Corporation or established by a contract, re­ payment agreement, or statute. The 

Corporation will notify you of the basis 

for its finding when a different rate is 

necessary to protect the interests of 

the Corporation. 

(3) The Chief Executive Officer may 

extend the 30-day period for payment 

without interest when he or she determines that such action is in the best 

interest of the Corporation. A decision 

to extend or not to extend the payment 

period is final and is not subject to further review. 

(b) Penalty. The Corporation will as­ sess a penalty charge of 6 percent a year on any portion of a debt that is 

delinquent for more than 90 days. 

(c) Administrative costs. The Corporation will assess charges to cover administrative costs incurred as a result 

of your failure to pay a debt before it 

becomes delinquent. Administrative 

costs include the additional costs incurred in processing and handling the 

debt because it became delinquent, 

such as costs incurred in obtaining a credit report or in using a private collection contractor, or service fees 

charged by a Federal agency for collection activities undertaken on behalf of 

the Corporation. 

(d) Allocation of payments. A partial or installment payment by a debtor 

will be applied first to outstanding penalty assessments, second to administrative costs, third to accrued interest, 

and fourth to the outstanding debt 

principal. 

(e) Additional authority. The Corporation may assess interest, penalty 

charges, and administrative costs on debts that are not subject to 31 U.S.C. 

3717 to the extent authorized under common law or other applicable statutory authority. 

(f) Waiver. (1) The Chief Executive Officer may (without regard to the 

amount of the debt) waive collection of 

all or part of accrued interest, penalty 

charges, or administrative costs, if he or she determines that collection of 

these charges would be against equity 

and good conscience or not in the best 

interest of the Corporation. 

(2) A decision to waive interest, penalty charges, or administrative costs 

may be made at any time before a debt 

is paid. However, and unless otherwise 

stated in these regulations, where 

these charges have been collected before the waiver decision, they will not 

be refunded. The Chief Executive Officer's decision to waive or not waive 

collection of these charges is final and 

is not subject to further review. 

§ 2506.19 How can I resolve my debt 

through voluntary repayment? 

(a) In response to a notice of debt, 

you may propose to the Corporation 

that you be allowed to repay the debt 

through a voluntary repayment agreement in lieu of the Corporation taking 

other collection actions under this 

part. 

(b) Your request to enter into a voluntary repayment agreement must: 

(1) Be in writing; 

(2) Admit the existence of the debt; 

and 

(3) Either propose payment of the 

debt (together with interest, penalty 

charges, and administrative costs) in a lump sum, or set forth a proposed re­ payment schedule. 

(c) The Corporation will collect debts 

in one lump sum whenever feasible. 

However, if you are unable to pay your 

debt in one lump sum, the Corporation 

599 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2506.20 

may accept payment in regular installments that bear a reasonable relationship to the size of the debt and your 

ability to pay. If possible, the installment payments should be sufficient in 

size and frequency to liquidate the debt 

in three years or less. 

(d) The Corporation will consider a 

request to enter into a voluntary repayment agreement in accordance with 

the FCCS. The Chief Executive Officer 

may request additional information 

from you, including financial statements if you request to make payments in installments, in order to determine whether to accept a voluntary 

repayment agreement. It is within the 

Chief Executive Officer's discretion to 

accept a repayment agreement instead 

of proceeding with other collection actions under this part, and to set the 

necessary terms of any voluntary repayment agreement. No repayment 

agreement will be binding on the Corporation unless it is in writing and 

signed by both you and the Chief Executive Officer. At the Corporation's option, you may be required to provide 

security as part of the agreement to 

make payments in installments. Notwithstanding the provisions of this section, 31 U.S.C. 3711 will govern any reduction or compromise of a debt. 

§ 2506.20 What is the extent of the 

Chief Executive Officer's authority 

to compromise debts owed to the 

Corporation, or to suspend or terminate collection action on such 

debts? 

(a) The Chief Executive Officer may 

compromise, suspend, or terminate collection action on those debts owed to 

the Corporation that do not exceed 

$100,000 excluding interest, in conformity with the Federal Claims Collection Act of 1966, as amended. The 

Corporation will follow the policies in 

§ 902.2 of the FCCS. 

(b) The uncollected portion of a debt 

owed to the Corporation that is not recovered as the result of a compromise 

will be reported to the Internal Rev­ enue Service (IRS) as income to the 

debtor in accordance with IRS procedures if this uncollected amount is at 

least $600.00. 

45 CFR Ch. XXV (10-1-12 Edition) 

§ 2506.21 May the Corporation's failure 

to comply with these regulations be 

used as a defense to a debt? 

No, the failure of the Corporation to 

comply with any standard in the FCCS or these regulations will not be available to any debtor as a defense. 

Subpart C-Salary Offset 

§ 2506.30 What debts are included or excluded from coverage of these 

regulations on salary offset? 

(a) The regulations in this subpart 

provide the Corporation procedures for 

the collection by salary offset of a Federal employee's pay to satisfy certain 

debts owed to the Corporation or to 

other Federal agencies. 

(b) The regulations in this subpart do 

not apply to any case where collection 

of a debt by salary offset is explicitly 

provided for or prohibited by another 

statute. 

(c) Nothing in the regulations in this 

subpart precludes the compromise, sus­ pension, or termination of collection 

actions under the Federal Claims Collection Act of 1966, as amended, or the 

FCCS. 

(d) A levy imposed under the Internal 

Revenue Code takes precedence over a salary offset under this subpart, as provided in 5 U.S.C. 5514(d). 

§ 2506.31 May I ask the Corporation to 

waive an overpayment that otherwise would be collected by offsetting my salary as a Federal em­ ployee? 

Yes, the regulations in this subpart 

do not preclude you from requesting 

waiver of an overpayment under 5 

U.S.C. 5584 or 8346(b), 10 U.S.C. 2774, 32 

U.S.C. 716, or other statutory provisions pertaining to the particular debts 

being collected. 

§ 2506.32 What are the Corporation's 

procedures for salary offset? 

(a) The Corporation will coordinate 

salary deductions under this subpart as appropriate. 

(b) If you are a Corporation employee 

who owes a debt to the Corporation, 

the Corporation's payroll office in 

Human Resources will determine the 

amount of your disposable pay and will 

implement the salary offset. 

600 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2506.33 

(c) Deductions will begin within 

three official pay periods following receipt by the Corporation's payroll office of certification of debt from the 

creditor agency. 

(d) The Notice provisions of these 

regulations do not apply to certain 

debts arising under this section (see 

§ 2506.14( C)). 

(e) Types of collection. (1) Lump-sum 

offset. If the amount of the debt is 

equal to or less than 15 percent of disposable pay, the debt generally will be 

collected through one lump-sum offset. 

(2) Installment deductions. Installment 

deductions will be made over a period 

not greater than the anticipated period 

of employment. The size and frequency 

of installment deductions will bear a 

reasonable relation to the size of the 

debt and your ability to pay. However, 

the amount deducted from any period 

will not exceed 15 percent of the disposable pay from which the deduction is 

made unless you have agreed in writing 

to the deduction of a greater amount. 

If possible, installment payments will 

be sufficient in size and frequency to 

liquidate the debt in three years or 

less. 

(3) Deductions from final check. A deduction exceeding the 15 percent of disposable pay limitation may be made 

from any final salary payment under 31 

U.S.C. 3716 and the FCCS in order to 

liquidate the debt, whether the employee is being separated voluntarily 

or involuntarily. 

(4) Deductions from other sources. If an 

employee subject to salary offset is 

separated from the Corporation and the 

balance of the debt cannot be liquidated by offset of the final salary 

check, the Corporation may offset later 

payments of any kind against the balance of the debt, as allowed by 31 

U.S.C. 3716 and the FCCS. 

(f) Multiple debts. In instances where 

two or more creditor agencies are seeking salary offsets, or where two or 

more debts are owed to a single creditor agency, the Corporation's payroll 

office may, at its discretion, determine 

whether one or more debts should be 

offset simultaneously within the 15 

percent limitation. 

§ 2506.33 How will the Corporation co­ ordinate salary offsets with other 

agencies? 

(a) Responsibilities of the Corporation 

as the creditor agency (i.e. when the debtor owes a debt to the Corporation and is 

an employee of another agency). Upon 

completion of the procedures established in this subpart and pursuant to 5 

U.S.C. 5514 and 31 U.S.C. 3716, the Corporation must submit a claim to a paying agency or disbursing official. 

(1) In its claim, the Corporation must 

certify, in writing, the following: 

(i) That the employee owes the debt; 

(ii) The amount and basis of the debt; 

(iii) The date the Corporation's right 

to collect the debt first accrued; 

(iv) That the Corporation's regulations in this subpart have been approved by OPM under 5 CFR part 550, 

subpart K; and 

(v) That the Corporation has met the 

certification requirements of the paying agency. 

(2) If the collection must be made in 

installments, the Corporation's claim 

will also advise the paying agency of 

the amount or percentage of disposable 

pay to be collected in each installment. 

The Corporation may also advise the 

paying agency of the number of installments to be collected and the date of 

the first installment, if that date is 

other than the next officially established pay period. 

(3) The Corporation will also include 

in its claim: 

(i) The employee's written consent to 

the salary offset; 

(ii) The employee's signed statement 

acknowledging receipt of the procedures required by 5 U.S.C. 5514; or (iii) Information regarding the completion of procedures required by 5 

U.S.C. 5514, including the actions taken 

and the dates of those actions. 

(4) If the employee is in the process 

of separating and has not received a 

final salary check or other final payment(s) from the paying agency, the 

Corporation must submit its claim to 

the paying agency or disbursing official for collection under 31 U.S.C. 3716. 

The paying agency will (under its regulations adopted under 5 U.S.C. 5514 and 

5 CFR part 550, subpart K), certify the 

total amount of its collection on the 

debt and notify the employee and the 

601 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2506.34 

Corporation. If the paying agency's collection does not fully satisfy the debt, 

and the paying agency is aware that 

the debtor is entitled to payments from 

the Civil Service Retirement and Disability Fund or other similar payments 

that may be due the debtor employee 

from other Federal government 

sources, then (under its regulations 

adopted under 5 U.S.C. 5514 and 5 CFR 

part 550, subpart K), the paying agency 

will provide written notice of the outstanding debt to the agency responsible 

for making the other payments to the 

debtor employee. The written notice 

will state that the employee owes a debt, the amount of the debt, and that 

the provisions of this section have been 

fully complied with. However, the Corporation must submit a properly cer­ tified claim under this paragraph (a)(4) 

to the agency responsible for making 

the other payments before the collection can be made. 

(5) If the employee is already separated and all payments due from his or her former paying agency have been 

paid, the Corporation may request, un­ less otherwise prohibited, that money 

due and payable to the employee from 

the Civil Service Retirement and Disability Fund or other similar funds be 

administratively offset to collect the 

debt. 

(6) Employee transfer. When an em­ ployee transfers from one paying agency to another paying agency, the Corporation will not repeat the due proc­ ess procedures described in 5 U.S.C. 

5514 and this subpart to resume the collection. The Corporation will submit a properly certified claim to the new paying agency and will subsequently 

review the debt to ensure that the collection is resumed by the new paying 

agency. 

(b) Responsibilities of the Corporation 

as the paying agency (i.e., when the debtor owes a debt to another agency and is 

an employee of the Corporation). (1) Complete claim. When the Corporation receives a certified claim from a creditor 

agency (under the creditor agency's 

regulations adopted under 5 U.S.C. 5514 

and 5 CFR part 550, subpart K), deductions should be scheduled to begin 

within three officially established pay 

intervals. Before deductions can begin, 

45 CFR Ch. XXV (10-1-12 Edition) 

the Corporation sends the employee a written notice containing: 

(i) A statement that the Corporation 

has received a certified claim from the 

creditor agency; 

(ii) The amount of the debt; 

(iii) The date salary offset deductions 

will begin; and 

(iv) The amount of such deductions. 

(2) Incomplete claim. When the Corporation receives an incomplete certification of debt from a creditor agency, 

the Corporation will return the claim 

with a notice that the creditor agency 

must: 

(i) Comply with the procedures re­ quired under 5 U.S.C. 5514 and 5 CFR 

part 550, subpart K, and 

(ii) Properly certify a claim to the 

Corporation before the Corporation 

will take action to collect from the 

employee's current pay account. 

(3) The Corporation is not authorized 

to review the merits of the creditor 

agency's determination with respect to 

the amount or validity of the debt cer­ tified by the creditor agency. 

(4) Employees who transfer from the 

Corporation to another paying agency. 

If, after the creditor agency has submitted the claim to the Corporation, 

the employee transfers from the Corporation to a different paying agency 

before the debt is collected in full, the 

Corporation will certify the total 

amount collected on the debt and no­ tify the employee and the creditor 

agency in writing. The notification to 

the creditor agency will include information on the employee's transfer. 

§ 2506.34 Under what conditions will 

the Corporation make a refund of 

amounts collected by salary offset? 

(a) If the Corporation is the creditor 

agency, it will promptly refund any 

amount deducted under the authority 

of 5 U.S.C. 5514, when: 

(1) The debt is waived or all or part of 

the funds deducted are otherwise found 

not to be owed (unless expressly prohibited by statute or regulation); or 

(2) An administrative or judicial 

order directs the Corporation to make a refund. 

(b) Unless required or permitted by 

law or contract, refunds under this sec­ tion will not bear interest. 

602 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2506.41 

§ 2506.35 Will the collection of a debt 

by salary offset act as a waiver of 

my rights to dispute the claimed 

debt? 

No, your involuntary payment of all or any portion of a debt under this subpart will not be construed as a waiver 

of any rights that you may have under 

5 U.S.C. 5514 or other provisions of a law or written contract, unless there are statutory or contractual provisions 

to the contrary. 

Subpart D-Tax Refund Offset 

§ 2506.40 Which debts can the Corporation refer to Treasury for collection 

by offsetting tax refunds? 

(a) The regulations in this subpart 

implement 31 U.S.C. 3720A, which au­ thorizes the Treasury to reduce a tax 

refund by the amount of a past-due, legally enforceable debt owed to a Federal agency. 

(b) For purposes of this section, a past-due, legally enforceable debt referable to the Treasury for tax refund 

offset is a debt that is owed to the Corporation and: 

(1) Is at least $25.00; 

(2) Except in the case of a judgment 

debt, has been delinquent for at least 

three months and will not have been 

delinquent more than 10 years at the 

time the offset is made; 

(3) With respect to which the Corporation has: 

(i) Given the debtor at least 60 days 

to present evidence that all or part of 

the debt is not past due or legally en­ forceable; 

(ii) Considered evidence presented by 

the debtor; and 

(iii) Determined that an amount of 

the debt is past due and legally en­ forceable; 

(4) With respect to which the Corporation has notified or has made a reasonable attempt to notify the debt­ or that: 

(i) The debt is past due, and 

(ii) Unless repaid within 60 days of 

the date of the notice, the debt may be 

referred to the Treasury for offset 

against any refund of overpayment of 

tax; and 

(5) All other requirements of 31 

U.S.C. 3720A and the Treasury regulations relating to the eligibility of a 

debt for tax return offset (31 CFR 285.2) 

have been satisfied. 

§ 2506.41 What are the Corporation's 

procedures for collecting debts by 

tax refund offset? 

(a) The Corporation's Accounting and 

Financial Management Services Division will be the point of contact with 

the Treasury for administrative matters regarding the offset program. 

(b) The Corporation will ensure that 

the procedures prescribed by the Treasury are followed in developing information about past-due debts and submitting the debts to the Treasury. 

(c) The Corporation will submit to 

the Treasury a notification of a taxpayer's liability for past-due legally 

enforceable debt. This notification will 

contain the following: 

(1) The name and taxpayer identification number of the debtor; 

(2) The amount of the past-due and 

legally enforceable debt; 

(3) The date on which the original 

debt became past due; 

(4) A statement certifying that, with 

respect to each debt reported, all of the 

requirements of §2506.40(b) have been 

satisfied; and 

(5) Any other information as prescribed by Treasury. 

(d) For purposes of this section, no­ tice that collection of the debt is 

stayed by a bankruptcy proceeding involving the debtor will bar referral of 

the debt to the Treasury. 

(e) The Corporation will promptly no­ tify the Treasury to correct data when 

the Corporation: 

(1) Determines that an error has been 

made with respect to a debt that has 

been referred; 

(2) Receives or credits a payment on the debt; or 

(3) Receives notice that the person 

owing the debt has filed for bankruptcy 

under title 11 of the United States Code 

and the automatic stay is in effect or has been adjudicated bankrupt and the 

debt has been discharged. 

(f) When advising debtors of the Corporation's intent to refer a debt to the 

Treasury for offset, the Corporation 

will also advise debtors of remedial ac­ tions (see §§2506.9 and 2506.14 through 

2506.16 of this part) available to defer 

603 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2506.50 

the offset or prevent it from taking 

place. 

Subpart E-Administrative Offset 

§ 2506.50 Under what circumstances 

will the Corporation collect 

amounts that I owe to the Corpora­ tion (or some other Federal agency) 

by offsetting the debt against payments that the Corporation (or some other Federal agency) owes me? 

(a) The regulations in this subpart 

apply to the collection of any debts 

you owe to the Corporation, or to any 

request from another Federal agency 

that the Corporation collect a debt you owe by offsetting your debt against a payment the Corporation owes you. 

Administrative offset is authorized 

under section 5 of the Federal Claims 

Collection Act of 1966, as amended (31 

U.S.C. 3716). The Corporation will carry 

out administrative offset in accordance 

with the provisions of the Federal 

Claims Collection Standards. The regulations in this subpart are intended 

only to supplement the provisions of 

the FCCS. 

(b) The Chief Executive Officer, after 

attempting to collect a debt you owe to 

the Corporation under section 3(a) of 

the Federal Claims Collection Act of 

1966, as amended (31 U.S.C. 3711(a)), 

may collect the debt by administrative 

offset only after giving you: 

(1) Written notice of the type and 

amount of the debt, the intention of 

the Chief Executive Officer to collect 

the debt by administrative offset, and an explanation of the rights of the 

debtor; 

(2) An opportunity to inspect and 

copy the records of the Corporation re­ lated to the debt; 

(3) An opportunity for a review within the Corporation of the decision of 

the Corporation related to the debt; 

and 

(4) An opportunity to make a written 

agreement with the Chief Executive Officer to repay the amount of the debt. 

(c) No collection by administrative 

offset will be made on any debt that 

has been outstanding for more than 10 

years, unless facts material to the Corporation's or the requesting Federal 

agency's right to collect the debt were not known, and reasonably could not 

45 CFR Ch. XXV (10-1-12 Edition) 

have been known, by the official or officials responsible for discovering and 

collecting the debt. 

(d) The regulations in this subpart do 

not apply to: 

(1) A case in which administrative 

offset of the type of debt involved is ex­ plicitly prohibited by statute; or (2) Debts owed to the Corporation by 

Federal agencies. 

§ 2506.51 How will the Corporation re­ quest that my debt to the Corporation be collected by offset against some payment that another Federal 

agency owes me? 

The Chief Executive Officer may re­ quest that funds due and payable to 

you by another Federal agency instead 

be paid to the Corporation to satisfy a debt you owe to the Corporation. The 

Corporation will refer debts to the 

Treasury for centralized administrative offset in accordance with the 

FCCS and the procedures established 

by the Treasury. Where centralized offset is not available or appropriate, the 

Corporation may request offset directly from the Federal agency that is 

holding funds for you. In requesting administrative offset, the Corporation 

will certify in writing to the Federal 

agency that is holding funds for you: 

(a) That you owe the debt; 

(b) The amount and basis of the debt; 

and 

(c) That the Corporation has com­ plied with the requirements of 31 

U.S.C. 3716, its own administrative offset regulations in this subpart, the applicable administrative offset regulations of the agency holding the funds, 

and the applicable provisions of the 

FCCS with respect to providing you 

with due process. 

§ 2506.52 What procedures will the 

Corporation use to collect amounts 

I owe to a Federal agency by offsetting a payment that the Corporation would otherwise make to me? 

(a) Any Federal agency may request 

that the Corporation administratively 

offset funds due and payable to you in 

order to collect a debt you owe to that 

agency. The Corporation will initiate 

the requested offset only upon: 

(1) Receipt of written certification 

from the creditor agency stating: 

(i) That you owe the debt; 

604 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service Pt. 2507 

(ii) The amount and basis of the debt; 

(iii) That the agency has prescribed 

regulations for the exercise of administrative offset; and 

(iv) That the agency has complied 

with its own administrative offset regulations and with the applicable provisions of the FCCS, including providing 

you with any required hearing or re­ view; and 

(2) A determination by the Chief Executive Officer that offsetting funds 

payable to you by the Corporation in 

order to collect a debt owed by you 

would be in the best interest of the 

United States as determined by the 

facts and circumstances of the particular case, and that such an offset 

would not otherwise be contrary to 

law. 

(b) Multiple debts. In instances where 

two or more creditor agencies are seeking administrative offsets, or where 

two or more debts are owed to a single 

creditor agency, the Corporation may, 

in its discretion, allocate the amount 

it owes to you to the creditor agencies 

in accordance with the best interest of 

the United States as determined by the 

facts and circumstances of the particular case, paying special attention 

to applicable statutes of limitations. 

§ 2506.53 When may the Corporation 

make an offset in an expedited manner? 

The Corporation may effect an administrative offset against a payment 

to be made to you before completion of 

the procedures required by §§ 2506.51 

and 2506.52 if failure to take the offset 

would substantially jeopardize the Corporation's ability to collect the debt 

and the time before the payment is to 

be made does not reasonably permit 

the completion of those procedures. An 

expedited offset will be followed 

promptly by the completion of those 

procedures. Amounts recovered by offset, but later found not to be owed to 

the United States, will be promptly re­ funded. 

§ 2506.54 Can a judgment I have obtained against the United States be 

used to satisfy a debt that I owe to 

the Corporation? 

Yes. Collection by offset against a judgment obtained by a debtor against 

the United States will be accomplished 

in accordance with 31 U.S.C. 3728 and 31 

u.s.c. 3716. 

Subpart F-Administrative Wage 

Garnishment 

§ 2506.55 Bow will the Corporation collect debts through Administrative 

Wage Garnishment? 

The Corporation will collect debts 

through Administrative Wage Garnishment in accordance with the Administrative Wage Garnishment regulations 

issued by the Treasury. The Corporation adopts, for purposes of this subpart, the Treasury's Administrative 

Wage Garnishment regulations in 31 

CFR 285.11. This procedure allows the 

Corporation to garnish the disposable 

pay of a debtor without first obtaining 

a court order. 

PART 2507-PROCEDURES FOR DISCLOSURE OF RECORDS UNDER 

THE FREEDOM OF INFORMATION 

ACT 

Sec. 

2507.1 Definitions. 

2507.2 What is the purpose of this part? 

2507.3 What types of records are available 

for disclosure to the public? 

2507.4 How are requests for records made? 

2507.5 How does the Corporation process requests for records? 

2507.6 Under what circumstances may the 

Corporation extend the time limits for 

an initial response? 

2507.7 How does one appeal the Corporation's denial of access to records? 

2507.8 How are fees determined? 

2507.9 What records will be denied disclosure under this part? 

2507.10 What records are specifically exempt 

from disclosure? 

2507.11 What are the procedures for the release of commercial business information? 

2507.12 Authority. 

APPENDIX A TO PART 2507-FREEDOM OF INFORMATION ACT REQUEST LETTER (SAMPLE) 

APPENDIX B TO PART 2507-FREEDOM OF INFORMATION ACT APPEAL FOR RELEASE OF 

INFORMATION (SAMPLE) 

AUTHORITY: 42 u.s.c. 12501 et seq. 

SOURCE: 63 FR 26489, May 13, 1998, unless 

otherwise noted. 

605 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2507.1 

§2507.1 Definitions. 

As used in this part, the following 

definitions shall apply: 

(a) Act means section 552 of Title 5, 

United States Code, sometimes re­ ferred to as the "Freedom of Information Act", and Pub. L. 104-231, 110 Stat. 

3048, sometimes referred to as the 

"Electronic Freedom of Information 

Act Amendments of 1996." 

(b) Agency means any executive department, military department, government corporation, or other establishment in the executive branch of the 

Federal Government, or any independent regulatory agency. Thus, the 

Corporation is a Federal agency. 

(c) Commercial use request means a re­ quest from, or on behalf of, a person 

who seeks information for a use or purpose that furthers the commercial, 

trade, or profit interests of the re­ quester or the person on whose behalf 

the request is made. The use to which 

the requester will put the records 

sought will be considered in determining whether the request is a com­ mercial use request. 

(d) Corporation means the Corporation for National and Community Service. 

(e) Educational institution means a pre-school, elementary or secondary 

school, institution of undergraduate or graduate higher education, or institution of professional or vocational education, which operates a program of 

scholarly research. 

(f) Electronic data means records and 

information (including e-mail) which are created, stored, and retrievable by 

electronic means. 

(g) Freedom of Information Act Officer 

(FOIA Officer) means the Corporation 

official who has been delegated the au­ thority to make the initial determination on whether to release or withhold 

records, and to assess, waive, or reduce 

fees in response to FOIA requests. 

(h) Non-commercial scientific institution 

means an institution that is not operated substantially for purposes of furthering its own or someone else's busi­ ness trade, or profit interests, and that 

is operated for purposes of conducting 

scientific research whose results are not intended to promote any particular 

product or industry. 

45 CFR Ch. XXV (10-1-12 Edition) 

(i) Public interest means the interest 

in obtaining official information that 

sheds light on an agency's performance 

of its statutory duties because the information falls within the statutory 

purpose of the FOIA to inform citizens 

about what their government is doing. 

(j) Record includes books, brochures, 

electronic mail messages, punch cards, 

magnetic tapes, cards, discs, paper 

tapes, audio or video recordings, maps, 

pamphlets, photographs, slides, microfilm, and motion pictures, or other documentary materials, regardless of 

physical form or characteristics, made or received by the Corporation pursuant to Federal law or in connection 

with the transaction of public business 

and preserved by the Corporation as evidence of the organization, functions, 

policies, decisions, procedures, operations, programs, or other activities. 

Record does not include objects or articles such as tangible exhibits, models, 

equipment, or processing materials; or formulas, designs, drawings, or other 

items of valuable property. Record does 

not include books, magazines, pamphlets or other materials acquired solely for reference purposes. Record does 

not include personal records of an individual not subject to agency creation or retention requirements, created and 

maintained primarily for the conven­ ience of an agency employee, and not 

distributed to other agency employees 

for their official use. Record does not 

include information stored within a computer for which there is no existing 

computer program for retrieval of the 

requested information. A record must 

exist and be in the possession and con­ trol of the Corporation at the time of 

the request to be considered subject to 

this part and the FOIA. There is no obligation to create, compile, or obtain a record to satisfy a FOIA request. See 

§2507.5(d) with respect to creating a record in the electronic environment. 

(k) Representative of the news media 

means a person who is actively gathering information for an entity organized to publish, broadcast or otherwise disseminate news to the public. 

News media entities include television 

and radio broadcasters, publishers of 

periodicals who distribute their products to the general public or who make 

their products available for purchase or 

606 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2507.3 

subscription by the general public, and 

entities that may disseminate news through other media (e.g., electronic 

dissemination of text). Freelance journalists will be treated as representatives of a new media entity if they can show a likelihood of publication 

through such an entity. A publication 

contract would be the clearest proof, 

but the Corporation may also look to 

the past publication record of a re­ quester in making this determination. 

(1) FOIA request means a written re­ quest for Corporation records, made by 

any person, including a member of the 

public (U.S. or foreign citizen), an or­ ganization, or a business, but not including a Federal agency, an order 

from a court, or a fugitive from the 

law, that either explicitly or implicitly 

involves the FOIA, or this part. Written requests may be received by postal 

service or by facsimile. 

(m) Review means the process of ex­ amining records located in response to a request to determine whether any 

record or portion of a record is permitted to be withheld. It also includes 

processing records for disclosure (i.e., 

excising portions not subject to disclo­ sure under the Act and otherwise preparing them for release). Review does 

not include time spent resolving legal or policy issues regarding the application of exemptions under the Act. 

(n) Search means looking for records or portions of records responsive to a request. It includes reading and interpreting a request, and also page-bypage and line-by-line examination to 

identify responsive portions of a document. However, it does not include 

line-by-line examination where merely 

duplicating the entire page would be a less expensive and quicker way to com­ ply with the request. 

§2507.2 What is the purpose of this 

part? 

The purpose of this part is to prescribe rules for the inspection and re­ lease of records of the Corporation for 

National and Community Service pursuant to the Freedom of Information 

Act ("FOIA"), 5 U.S.C. 552, as amended. 

Information customarily furnished to 

the public in the regular course of the 

Corporation's official business, whether 

hard copy or electronic records which 

are available to the public through an established distribution system, or through the FEDERAL REGISTER, the 

National Technical Information Service, or the Internet, may continue to be 

furnished without processing under the 

provisions of the FOIA or complying 

with this part. 

§2507.3 What types of records are available for disclosure to the public? 

(a) (1) The Corporation will make 

available to any member of the public 

who requests them, the following Corporation records: 

(i) All publications and other documents provided by the Corporation to 

the public in the normal course of 

agency business will continue to be 

made available upon request to the 

Corporation; 

(ii) Final opinions, including concurring and dissenting opinions, as well as orders, made in the adjudication of administrative cases; 

(iii) Statements of policy and interpretation adopted by the agency and 

not published in the FEDERAL REGISTER; 

(iv) Administrative staff manuals and 

instructions to the staff that affect a member of the public; and 

(v) Copies of all records, regardless of 

form or format, which, because of the 

nature of their subject matter, the 

agency determines have become or are likely to become the subject of subsequent requests for substantially the same records. 

(2) Copies of a current index of the 

materials in paragraphs (a)(l)(i) 

through (v) of this section that are maintained by the Corporation, or any 

portion thereof, will be furnished or made available for inspection upon re­ quest. 

(b) To the extent necessary to prevent a clearly unwarranted invasion of 

personal privacy, the Corporation may 

delete identifying details from materials furnished under this part. 

(c) Brochures, leaflets, and other 

similar published materials shall be 

furnished to the public on request to 

the extent they are available. Copies of 

any such materials which are out of 

print shall be furnished to the public at 

607 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2507.4 

the cost of duplication, provided, however, that, in the event no copy exists, 

the Corporation shall not be responsible for reprinting the document. 

(d) All records of the Corporation 

which are requested by a member of 

the public in accordance with the procedures established in this part shall be 

duplicated for the requester, except to 

the extent that the Corporation determines that such records are exempt 

from disclosure under the Act. 

(e) The Corporation will not be re­ quired to create new records, compile 

lists of selected items from its files, or provide a requester with statistical or 

other data (unless such data has been 

compiled previously and is available in 

the form of a record.) 

(f) These records will be made available for public inspection and copying 

in the Corporation's reading room located at the Corporation for National 

and Community Service, 1201 New York 

Avenue, NW., Room 8200, Washington, 

D.C. 20525, during the hours of 9:30 a.m. 

to 4:00 p.m., Monday through Friday, 

except on official holidays. 

(g) Corporation records will be made 

available to the public unless it is determined that such records should be 

withheld from disclosure under subsection 552(b) of the Act and or in ac­ cordance with this part. 

§2507.4 How are requests for records 

made? 

(a) How made and addressed. (1) Requests for Corporation records under 

the Act must be made in writing, and 

can be mailed, hand-delivered, or re­ ceived by facsimile, to the FOIA Officer, Corporation for National and Community Service, Office of the General 

Counsel, 1201 New York Avenue, N.W., 

Room 8200, Washington, D.C. 20525. (See 

Appendix A for an example of a FOIA 

request.) All such requests, and the en­ velopes in which they are sent, must be 

plainly marked "FOIA Request". Handdelivered requests will be received between 9 a.m. and 4 p.m., Monday 

through Friday, except on official holidays. Although the Corporation maintains offices throughout the continental United States, all FOIA re­ quests must be submitted to the Corporation's Headquarters office in Washington, DC. 

45 CFR Ch. XXV (10-1-12 Edition) 

(2) Corporation records that are 

available in the Corporation's reading 

room will also be made available for 

public access through the Corporation's "electronic reading room" internet site under "Resource Links". The 

following address is the Corporation's 

Internet Web site: http:// 

www.nationalservice.org. 

(b) Request must adequately describe 

the records sought. A request must describe the records sought in sufficient 

detail to enable Corporation personnel 

to locate the records with reasonable 

effort, and without unreasonable burden to or disruption of Corporation operations. Among the kinds of identifying information which a requester 

may provide are the following: 

(1) The name of the specific program 

within the Corporation which may 

have produced or may have custody of 

the record (e.g., AmeriCorps*State/National Direct, AmeriCorps*NCCC (National Civilian Community Corps), 

AmeriCorps*VISTA (Volunteers In 

Service To America), Learn and Serve 

America, National Senior Service 

Corps (NSSC), Retired and Senior Volunteer Program (RSVP), Foster Grandparent Program (FGP), Senior Companion Program (SCP), and HUD Hope 

VI); 

(2) The specific event or action, if 

any, to which the record pertains; 

(3) The date of the record, or an approximate time period to which it refers or relates; 

(4) The type of record (e.g. contract, 

grant or report); 

(5) The name(s) of Corporation personnel who may have prepared or been 

referenced in the record; and 

(6) Citation to newspapers or other 

publications which refer to the record. 

(c) Agreement to pay fees. The filing of 

a request under this section shall be 

deemed to constitute an agreement by 

the requester to pay all applicable fees, 

up to $25.00, unless a waiver of fees is 

sought in the request letter. When filing a request, a requester may agree to 

pay a greater amount, if applicable. 

(See §2507.8 for further information on 

fees.) 

608 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2507.5 

§2507.5 How does the Corporation 

process requests for records? 

(a) Initial processing. Upon receipt of a request for agency records, the FOIA 

Officer will make an initial determination as to whether the requester has 

reasonably described the records being 

sought with sufficient specificity to determine which Corporation office may 

have possession of the requested 

records. The office head or his or her 

designees shall determine whether the 

description of the record(s) requested is 

sufficient to permit a determination as to existence, identification, and location. It is the responsibility of the 

FOIA Officer to provide guidance and 

assistance to the Corporation staff re­ garding all FOIA policies and procedures. All requests for records under 

the control and jurisdiction of the Office of the Inspector General will be 

forwarded to the Inspector General, 

through the FOIA Officer, for the Corporation's initial determination and 

reply to the requester. 

(b) Insufficiently identified records. On 

making a determination that the description contained in the request does 

not reasonably describe the records 

being sought, the FOIA Officer shall 

promptly advise the requester in writing or by telephone if possible. The 

FOIA Officer shall provide the re­ quester with appropriate assistance to 

help the requester provide any additional information which would better 

identify the record. The requester may 

submit an amended request providing 

the necessary additional identifying information. Receipt of an amended request shall start a new 20 day period in 

which the Corporation will respond to 

the request. 

(c) Furnishing records. The Corporation is required to furnish only copies 

of what it has or can retrieve. It is not 

compelled to create new records or do 

statistical computations. For example, 

the Corporation is not required to 

write a new program so that a com­ puter will print information in a special format. However, if the requested 

information is maintained in computerized form, and it is possible, without 

inconvenience or unreasonable burden, 

to produce the information on paper, 

the Corporation will do this if this is 

the only feasible way to respond to a 

request. The Corporation is not required to perform any research for the 

requester. The Corporation reserves the right to make a decision to conserve government resources and at the same time supply the records requested 

by consolidating information from var­ ious records rather than duplicating all 

of them. For example, if it requires less 

time and expense to provide a com­ puter record as a paper printout rather 

than in an electronic medium, the Corporation will provide the printout. The 

Corporation is only required to furnish one copy of a record. 

(d) Format of the disclosure of a record. 

The requester, not the Corporation, 

will be entitled to choose the form of 

disclosure when multiple forms of a record already exist. Any further request for a record to be disclosed in a new form or format will have to be considered by the Corporation, on a case­ by-case basis, to determine whether 

the records are "readily reproducible" 

in that form or format with "reasonable efforts" on the part of the Corporation. The Corporation shall make 

reasonable efforts to maintain its 

records in forms or formats that are re­ producible for purposes of replying to a 

FOIA request. 

(e) Release of record. Upon receipt of a request specifically identifying existing Corporation records, the Corporation shall, within 20 days (excepting 

Saturdays, Sundays, and legal public 

holidays), either grant or deny the re­ quest in whole or in part, as provided 

in this section. Any notice of denial in 

whole or in part shall require the FOIA 

Officer to inform the requester of his/ 

her right to appeal the denial, in accordance with the procedures set forth 

in §2507.7. If the FOIA Officer determines that a request describes a requested record sufficiently to permit 

its identification, he/she shall make it 

available unless he/she determines, as appropriate, to withhold the record as 

being exempt from mandatory disclosure under the Act. 

(f) Form and content of notice granting 

a request. The Corporation shall provide 

written notice of a determination to 

grant access within 20 days (excepting 

Saturdays, Sundays, and legal public 

holidays) of receipt of the request. This 

will be done either by providing a copy 

609 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2507.6 

of the record to the requester or by 

making the record available for inspection at a reasonable time and place. If 

the record cannot be provided at the 

time of the initial response, the Corporation shall make such records available promptly. Records disclosed in 

part shall be marked or annotated to 

show both the amount and the location 

of the information deleted wherever 

practicable. 

(g) Form and content of notice denying 

request. The Corporation shall notify 

the requester in writing of the denial of access within 20 days (excepting Saturdays, Sundays, and legal public holidays) of receipt of the request. Such 

notice shall include: 

(1) The name and title or position of 

the person responsible for the denial; 

(2) A brief statement of the reason(s) 

for denial, including the specific ex­ emption(s) under the Act on which the 

Corporation has relied in denying each 

document that was requested; 

(3) A statement that the denial may 

be appealed under §2507.7, and a description of the requirements of that 

§2507.7; 

(4) An estimate of the volume of 

records or information withheld, in 

number of pages or in some other rea­ sonable form of estimation. This estimate does not need to be provided if 

the volume is otherwise indicated 

through deletions on records disclosed 

in part, or if providing an estimate 

would harm an interest protected by an applicable exemption. 

§2507.6 Under what circumstances 

may the Corporation extend the 

time limits for an initial response? 

The time limits specified for the Corporation's initial response in §2507.5, 

and for its determination on an appeal 

in § 2507. 7, may be extended by the Corporation upon written notice to the re­ quester which sets forth the reasons for 

such extension and the date upon 

which the Corporation will respond to 

the request. Such extension may be applied at either the initial response 

stage or the appeal stage, or both, provided the aggregate of such extensions 

shall not exceed ten working days. Circumstances justifying an extension 

under this section may include the following: 

45 CFR Ch. XXV (10-1-12 Edition) 

(a) Time necessary to search for and 

collect requested records from field offices of the Corporation; 

(b) Time necessary to locate, collect 

and review voluminous records; or (c) Time necessary for consultation 

with another agency having an interest 

in the request; or among two or more offices of the Corporation which have an interest in the request; or with a submitter of business information having an interest in the request. 

§2507.7 How does one appeal the Corporation's denial of access to 

records? 

(a) Right of appeal. A requester has 

the right to appeal a partial or full denial of an FOIA request. The appeal 

must be put in writing and sent to the 

reviewing official identified in the denial letter. The requester must send 

the appeal within 60 days of the letter 

denying the appeal. 

(b) Contents of appeal. The written appeal may include as much or as little 

information as the requester wishes for 

the basis of the appeal. 

(c) Review process. The Chief Operating Officer (COO) is the designated 

official to act on all FOIA appeals. The 

COO's determination of an appeal con­ stitutes the Corporation's final action. 

If the appeal is granted, in whole or in 

part, the records will be made available 

for inspection or sent to the requester, 

promptly, unless a reasonable delay is 

justified. If the appeal is denied, in 

whole or in part, the COO will state the reasons for the decision in writing, providing notice of the right to judicial re­ view. A decision will be made on the 

appeal within 20 days (excepting Saturdays, Sundays, and legal public holidays), from the date the appeal was re­ ceived by the COO. 

(d) When appeal is required. If a re­ quester wishes to seek review by a court of an unfavorable determination, an appeal must first be submitted 

under this section. 

§2507.8 How are fees determined? 

(a) Policy. It is the policy of the Corporation to provide the widest possible access to releasable Corporation 

records at the least possible cost. The 

purpose of the request is relevant to 

the fees charged. 

610 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2507.8 

(b) Types of request. Fees will be determined by category of requests as follows: 

(1) Commercial use requests. When a re­ quest for records is made for commer­ cial use, charges will be assessed to cover the costs of searching for, re­ viewing for release, and reproducing 

the records sought. 

(2) Requests for educational and non­ commercial scientific institutions. When a request for records is made by an educational or non-commercial scientific 

institution in furtherance of scholarly or scientific research, respectively, 

charges may be assessed to cover the 

cost of reproduction alone, excluding 

charges for reproduction of the first 100 

pages. Whenever the total fee calculated is $18.00 or less, no fee shall be 

charged. 

(3) Requests from representatives of the news media. When a request for records 

is made by a representative of the news media for the purpose of news dissemination, charges may be assessed to cover the cost of reproduction alone, 

excluding the charges for reproduction 

of the first 100 pages. Whenever the 

total fee calculated is $18.00 or less, no fee shall be charged. 

(4) Other requests. When other re­ quests for records are made which do 

not fit the three preceding categories, 

charges will be assessed to cover the 

costs of searching for and reproducing 

the records sought, excluding charges 

for the first two hours of search time 

and for reproduction of the first 100 

pages. (However, requests from individuals for records about themselves con­ tained in the Agency's systems of 

records will be treated under the fee 

provisions of the Privacy Act of 1974 (5 

U.S.C. 552a) which permit the assess­ ment of fees for reproduction costs 

only, regardless of the requester's characterization of the request.) Whenever 

the total fee calculated is $18.00 or less, no fee shall be charged to the re­ quester. 

(c) Direct costs. Fees assessed shall 

provide only for recovery of the Corporation's direct costs of search, re­ view, and reproduction. Review costs 

shall include only the direct costs incurred during the initial examination 

of a record for the purposes of determining whether a record must be disclosed under this part and whether any 

portion of a record is exempt from disclosure under this part. Review costs 

shall not include any costs incurred in 

resolving legal or policy issues raised 

in the course of processing a request or an appeal under this part. 

(d) Charging of fees. The following 

charges may be assessed for copies of 

records provided to a requester: 

(1) Copies made by photostat shall be 

charged at the rate of $0.10 per page. 

(2) Searches for requested records 

performed by clerical/administrative 

personnel shall be charged at the rate 

of $4.00 per quarter hour. 

(3) Where a search for requested 

records cannot be performed by clerical 

administrative personnel (for example, 

where the tasks of identifying and 

compiling records responsive to a re­ quest must be performed by a skilled 

technician or professional), such search 

shall be charged at the rate of $7.00 per 

quarter hour. 

( 4) Where the time of managerial personnel is required, the fee shall be 

$10.25 for each quarter hour of time 

spent by such managerial personnel. 

(5) Computer searches for requested 

records shall be charged at a rate com­ mensurate with the combined cost of 

computer operation and operator's salary attributable to the search. 

(6) Charges for non-release. Charges 

may be assessed for search and review 

time, even if the Corporation fails to 

locate records responsive to a request or if records located are determined to 

be exempt from disclosure. 

(e) Consent to pay fees. In the event 

that a request for records does not 

state that the requester will pay all 

reasonable costs, or costs up to a specified dollar amount, and the FOIA Offi­ cer determines that the anticipated as­ sessable costs for search, review and re­ production of requested records will ex­ ceed $25.00, or will exceed the limit 

specified in the request, the requester 

shall be promptly notified in writing. 

Such notification shall state the an­ ticipated assessable costs of search, re­ view and reproduction of records re­ quested. The requester shall be afforded an opportunity to amend the re­ quest to narrow the scope of the re­ quest, or, alternatively, may agree to 

611 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2507.8 

be responsible for paying the anticipated costs. Such a request shall be 

deemed to have been received by the 

Corporation upon the date of receipt of 

the amended request. 

(f) Advance payment. (1) Advance payment of assessable fees are not required 

from a requester unless: 

(i) The Corporation estimates or determines that assessable charges are likely to exceed $250.00, and the re­ quester has no history of payment of 

FOIA fees. (Where the requester has a history of prompt payment of fees, the 

Corporation shall notify the requester 

of the likely cost and obtain written assurance of full payment.) 

(ii) A requester has previously failed 

to pay a FOIA fee charged in a timely 

fashion (i.e., within 30 days of the date 

of the billing). 

(2) When the Corporation acts under 

paragraphs (f)(l)(i) or (ii) of this section, the administrative time limits 

prescribed in §2507.5(a) and (b) will 

begin to run only after the Corporation 

has received fee payments or assur­ ances. 

(g) Interest on non-payment. Interest 

charges on an unpaid bill may be as­ sessed starting on the 31st day following the day on which the billing was sent. Interest will be assessed at 

the rate prescribed in 31 U.S.C. 3717 and 

will accrue from the date of the billing. 

The Corporation may use the authorization of the Debt Collection Act of 

1982 (Pub. L. 97-365, 96 Stat. 1749), as amended, and its administrative procedures, including disclosure to consumer reporting agencies and the use of collection agencies, to encourage payment 

of delinquent fees. 

(h) Aggregating requests. Where the 

Corporation reasonably believes that a requester or a group of requesters acting together is attempting to divide a request into a series of requests for the 

purpose of avoiding fees, the Corporation may aggregate those requests and 

charge accordingly. The Corporation 

may presume that multiple requests of 

this type made within a 30-day period 

have been made in order to avoid fees. 

Where requests are separated by a longer period, the Corporation will aggregate them only where there exists a solid basis for determining that aggregation is warranted under the cir45 CFR Ch. XXV (10-1-12 Edition) 

cumstances involved. Multiple requests 

involving unrelated matters will not be 

aggregated. 

(i) Making payment. Payment of fees 

shall be forwarded to the FOIA Officer 

by check or money order payable to 

"Corporation for National and Community Service". A receipt for any fees 

paid will be provided upon written re­ quest. 

(j) Fee processing. No fee shall be 

charged if the administrative costs of 

collection and processing of such fees are equal to or do not exceed the 

amount of the fee. 

(k) Waiver or reduction of fees. A re­ quester may, in the original request, or subsequently, apply for a waiver or re­ duction of document search, review and 

reproduction fees. Such application 

shall be in writing, and shall set forth 

in detail the reason(s) a fee waiver or reduction should be granted. The 

amount of any reduction requested 

shall be specified in the request. Upon 

receipt of such a request, the FOIA Officer will determine whether a fee 

waiver or reduction should be granted. 

(1) A waiver or reduction of fees shall 

be granted only if release of the re­ quested information to the requester is 

in the public interest because it is likely to contribute significantly to public 

understanding of the operations or ac­ tivities of the Corporation, and it is 

not primarily in the commercial interest of the requester. The Corporation 

shall consider the following factors in 

determining whether a waiver or reduction of fees will be granted: 

(i) Does the requested information concern the operations or activities of 

the Corporation? 

(ii) If so, will disclosure of the information be likely to contribute to public understanding of the Corporation's 

operations and activities? 

(iii) If so, would such a contribution 

be significant? 

(iv) Does the requester have a com­ mercial interest that would be 

furthered by disclosure of the information? 

(v) If so, is the magnitude of the identified commercial interest of the re­ quester sufficiently large, in compari­ son with the public interest in disclosure, that disclosure is primarily in the 

commercial interest of the requester? 

612 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2507.10 

(2) In applying the criteria in paragraph (k)(l) of this section, the Corporation will weigh the requester's 

commercial interest against any public 

interest in disclosure. Where there is a public interest in disclosure, and that 

interest can fairly be regarded as being 

of greater magnitude than the requester's commercial interest, a fee waiver or reduction may be granted. 

(3) When a fee waiver application has 

been included in a request for records, 

the request shall not be considered officially received until a determination is 

made regarding the fee waiver application. Such determination shall be made 

within five working days from the date 

any such request is received in writing 

by the Corporation. 

§2507.9 What records will be denied 

disclosure under this part? 

Since the policy of the Corporation is 

to make the maximum amount of information available to the public con­ sistent with its other responsibilities, 

written requests for a Corporation 

record made under the provisions of 

the FOIA may be denied when: 

(a) The record is subject to one or more of the exemptions of the FOIA. 

(b) The record has not been described 

clearly enough to enable the Corporation staff to locate it within a reason­ able amount of effort by an employee 

familiar with the files. 

(c) The requestor has failed to com­ ply with the procedural requirements, 

including the agreement to pay any re­ quired fee. 

(d) For other reasons as required by 

law, rule, regulation or policy. 

§2507.10 What records are specifically 

exempt from disclosure? 

Any reasonably segregable portion of a record shall be provided to any per­ son requesting such record after deletion of portions which are exempt 

under this section. The following categories are examples of records maintained by the Corporation which, under 

the provision of 5 U.S.C. 552(b), are ex­ empted from disclosure: 

(a) Records required to be withheld 

under criteria established by an Executive 

Order in the interest of national defense 

and policy and which are in fact properly 

classified pursuant to any such Executive 

Order. Included in this category are records required by Executive Order 

No. 12958 (3 CFR, 1995 Comp., p. 333), as amended, to be classified in the interest of national defense or foreign policy. 

(b) Records related solely to internal 

personnel rules and practices. Included in 

this category are internal rules and 

regulations relating to personnel man­ agement operations which cannot be 

disclosed to the public without substantial prejudice to the effective performance of significant functions of 

the Corporation. 

(c) Records specifically exempted 

from disclosure by statute. 

(d) Information of a commercial or financial nature including trade secrets 

given in confidence. Included in this category are records containing commer­ cial or financial information obtained 

from any person and customarily re­ garded as privileged and confidential 

by the person from whom they were obtained. 

( e) lnteragency or intra-agency memoranda or letters which would not be available by law to a party other than a party 

in litigation with the Corporation. Included in this category are memo­ randa, letters, inter-agency and intraagency communications and internal 

drafts, opinions and interpretations 

prepared by staff or consultants and 

records meant to be used as part of deliberations by staff, or ordinarily used 

in arriving at policy determinations 

and decisions. 

(f) Personnel, medical and similar files. 

Included in this category are personnel 

and medical information files of staff, 

individual national service applicants 

and participants, lists of names and 

home addresses, and other files or ma­ terial containing private or personal 

information, the public disclosure of 

which would amount to a clearly un­ warranted invasion of the privacy of 

any person to whom the information 

pertains. 

(g) Investigatory files. Included in this 

category are files compiled for the en­ forcement of all laws, or prepared in 

connection with government litigation 

and adjudicative proceedings, provided 

however, that such records shall be 

made available to the extent that their 

production will not: 

613 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2507.11 

(1) Interfere with enforcement proceedings; 

(2) Deprive a person of a right to a 

fair trial or an impartial adjudication; 

(3) Constitute an unwarranted invasion of personal privacy; 

(4) Disclose the identity of a confidential source, and in the case of a record compiled by a criminal law enforcement authority in the course of a criminal investigation, or by an agency 

conducting a lawful security intelligence investigation, confidential information furnished by confidential 

source; 

(5) Disclose investigative techniques 

and procedures; or (6) Endanger the life or physical safety of law enforcement personnel. 

§2507.11 What are the procedures for 

the release of commercial business 

information? 

(a) Notification of business submitter. 

The Corporation shall promptly notify 

a business submitter of any request for 

Corporation records containing busi­ ness information. The notice shall either specifically describe the nature of 

the business information requested or 

provide copies of the records, or portions thereof containing the business 

information. 

(b) Business submitter reply. The Corporation shall afford a business submitter 10 working days to object to disclosure, and to provide the Corporation 

with a written statement specifying 

the grounds and arguments why the information should be withheld under 

Exemption (b)(4) of the Act. 

(c) Considering and balancing respective interests. (1) The Corporation shall 

carefully consider and balance the 

business submitter's objections and 

specific grounds for nondisclosure 

against such factors as: 

(i) The general custom or usage in 

the occupation or business to which 

the information relates that it be held 

confidential; and 

(ii) The number and situation of the 

individuals who have access to such information; and 

(iii) The type and degree of risk of financial injury to be expected if disclo­ sure occurs; and 

(iv) The length of time such information should be regarded as retaining 

45 CFR Ch. XXV (10-1-12 Edition) 

the characteristics noted in paragraphs 

(c)(l) (i) through (iii) of this section in 

determining whether to release the re­ quested business information. 

(2)(i) Whenever the Corporation decides to disclose business information 

over the objection of a business submitter, the Corporation shall forward 

to the business submitter a written no­ tice of such decision, which shall include: 

(A) The name, and title or position, 

of the person responsible for denying 

the submitter's objection; 

(B) A statement of the reasons why 

the business submitter's objection was 

not sustained; 

(C) A description of the business information to be disclosed; and 

(D) A specific disclosure date. 

(ii) The notice of intent to disclose 

business information shall be mailed 

by the Corporation not less than six 

working days prior to the date upon 

which disclosure will occur, with a copy of such notice to the requester. 

(d) When notice to business submitter is 

not required. The notice to business 

submitter shall not apply if: 

(1) The Corporation determines that 

the information shall not be disclosed; 

(2) The information has previously 

been published or otherwise lawfully 

been made available to the public; or 

(3) Disclosure of the information is 

required by law (other than 5 U.S.C. 

552). 

(e) Notice of suit for release. Whenever a requester brings suit to compel disclosure of business information, the 

Corporation shall promptly notify the 

business submitter. 

§2507.12 Authority. 

The Corporation receives authority 

to change its governing regulations 

from the National and Community 

Service Act of 1990, as amended (42 

U.S.C. 12501 et seq.). 

APPENDIX A TO PART 2507-FREEDOM OF 

INFORMATION ACT REQUEST LETTER 

(SAMPLE) 

Freedom of Information Act Officer 

Name of Agency __________ _ 

Address of Agency 

City, State, Zip Code 

Re: Freedom of Information Act Request. 

614 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service Pt. 2508 

Dear ___ : This is a request under the 

Freedom of Information Act. 

I request that a copy of the following documents [or documents containing the following information] be provided to me: [identify the documents or information as specifically as possible]. 

[Sample requester descriptions] 

-A representative of the news media affiliated with the newspaper (magazine, 

television station, etc.) and this request is 

made as part of news gathering and not for 

commercial use. -Affiliated with an educational or non­ commercial scientific institution, and this 

request is not for commercial use. 

-An individual seeking information for 

personal use and not for commercial use. 

-Affiliated with a private corporation and am seeking information for use in the com­ pany's business. 

[Optional] I am willing to pay fees for this 

request up to a maximum of $ • If you 

estimate that the fees will exceed this limit, 

please inform me first. 

[Optional] I request a waiver of all fees for 

this request. Disclosure of the requested information to me is in the public interest because it is likely to contribute significantly 

to public understanding of the operations or activities of government and is not primarily 

in my commercial interest. [Include a specific explanation.] 

In order to help you determine my status 

to assess fees, you should know that I am 

(insert a suitable description of the requester 

and the purpose of the request). 

Thank you for your consideration of this 

request. 

Sincerely, 

Name 

Address 

City, State, Zip Code 

Telephone Number [Optional] 

APPENDIX B TO PART 2507-FREEDOM OF 

INFORMATION ACT APPEAL FOR RELEASE OF INFORMATION (SAMPLE) 

Appeal Officer 

Name of Agency 

Address of Agency 

City, State, Zip Code 

Re: Freedom of Information Act Appeal. 

Dear : This is an appeal under the 

Freedom of Information Act. 

On (date), I requested documents under the 

Freedom of Information Act. My request was assigned the following identification number 

. On (date), I received a response to 

my request in a letter signed by (name of official). I appeal the denial of my request. 

[Optional] The documents that were with- held must be disclosed under the FOIA because* * *. 

[Optional] Respond for waiver of fees. I appeal the decision to deny my request for a waiver of fees. I believe that I am entitled to a waiver of fees. Disclosure of the documents 

I requested is in the public interest because 

the information is likely to contribute significantly to public understanding of the operation or activities of government and is 

not primarily in my commercial interest. 

(Provide details) 

[Optional] I appeal the decision to require me to pay review costs for this request. I am not seeking the documents for a commercial use. (Provide details) 

(Optional] I appeal the decision to require me to pay search charges for this request. I am a reporter seeking information as part of news gathering and not for commercial use. Thank you for your consideration of this 

appeal. 

Sincerely, 

Name 

Address 

City, State, Zip Code 

Telephone Number [Optional] 

PART 2508-IMPLEMENTATION OF 

THE PRIVACY ACT OF 1974 

Sec. 

2508.1 Definitions. 

2508.2 What is the purpose of this part? 

2508.3 What is the Corporation's Privacy 

Act policy? 

2508.4 When can Corporation records be disclosed? 

2508.5 When does the Corporation publish 

its notice of its system of records? 

2508.6 When will the Corporation publish a 

notice for new routine uses of information in its system of records? 

2508.7 To whom does the Corporation provide reports to regarding changes in its 

system of records? 

2508.8 Who is responsible for establishing 

the Corporation's rules of conduct for 

Privacy Act compliance? 

2508.9 What officials are responsible for the 

security, management and control of 

Corporation record keeping systems? 

2508.10 Who has the responsibility for maintaining adequate technical, physical, and 

security safeguards to prevent unauthorized disclosure or destruction of manual 

and automatic record systems? 

2508.11 How shall offices maintaining a system of records be accountable for those 

records to prevent unauthorized disclosure of information? 

2508.12 What are the contents of the systems of records that are to be maintained by the Corporation? 

2508.13 What are the procedures for acquiring access to Corporation records by an individual about whom a record is maintained? 

615 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2508.1 

2508.14 What are the identification requirements for individuals who request access 

to records? 

2508.15 What are the procedures for requesting inspection of, amendment or correction to, or appeal of an individual's 

records maintained by the Corporation 

other than that individual's official personnel file? 

2508.16 What are the procedures for filing an appeal for refusal to amend or correct 

records? 

2508.17 When shall fees be charged and at 

what rate? 

2508.18 What are the penalties for obtaining a record under false pretenses? 

2508.19 What Privacy Act exemptions or control of systems of records are exempt 

from disclosure? 

2508.20 What are the restrictions regarding 

the release of mailing lists? 

AUTHORITY: 5 u.s.c. 552a; 42 u.s.c. 12501 et 

seq.; 42 U.S.C. 4950 et seq. 

SOURCE: 64 FR 19294, Apr. 20, 1999, unless 

otherwise noted. 

§ 2508.1 Definitions. 

(a) Amend means to make a correc­ tion to, or expunge any portion of, a record about an individual which that 

individual believes is not accurate, relevant, timely, or complete. 

(b) Appeal Officer means the individual delegated the responsibility to 

act on all appeals filed under the Privacy Act. 

(c) Chief Executive Officer means the 

Head of the Corporation. 

(d) Corporation means the Corporation for National and Community Service. 

(e) Individual means any citizen of 

the United States or an alien lawfully 

admitted for permanent residence. 

(f) Maintain means to collect, use, 

store, disseminate or any combination 

of these recordkeeping functions; exer­ cise of control over and therefore, re­ sponsibility and accountability for, 

systems of records. 

(g) Personnel record means any information about an individual that is 

maintained in a system of records by 

the Corporation that is needed for personnel management or processes such as staffing, employment development, 

retirement, grievances, and appeals. 

(h) Privacy Act Officer means the individual delegated the authority to allow access to, the release of, or the withholding of records pursuant to an offi45 CFR Ch. XXV (10-1-12 Edition) 

cial Privacy Act request. The Privacy 

Act Officer is further delegated the au­ thority to make the initial determination on all requests to amend records. 

(i) Record means any document or other information about an individual 

maintained by the agency whether collected or grouped, and including, but 

not limited to, information regarding 

education, financial transactions, medical history, criminal or employment 

history, or any other personal information that contains the name or other 

personal identification number, symbol, etc. assigned to such individual. 

(j) Routine use means, with respect to 

the disclosure of a record, the use of 

such record for a purpose which is com­ patible with the purpose for which it was collected. 

(k) System of records means a group of 

any records under the maintenance and 

control of the Corporation from which 

information is retrieved by use of the name of an individual or by some personal identifier of the individual. 

§ 2508.2 What is the purpose of this 

part? 

The purpose of this part is to set 

forth the basic policies of the Corporation governing the maintenance of its 

system of records which contains personal information concerning its em­ ployees as defined in the Privacy Act (5 

U.S.C. 552a). Records included in this 

part are those described in aforesaid 

act and maintained by the Corporation 

and/or any component thereof. 

§ 2508.3 What is the Corporation's Privacy Act policy? 

It is the policy of the Corporation to 

protect, preserve, and defend the right 

of privacy of any individual about 

whom the Corporation maintains personal information in any system of 

records and to provide appropriate and 

complete access to such records including adequate opportunity to correct 

any errors in said records. Further, it 

is the policy of the Corporation to 

maintain its records in such a manner that the information contained therein 

is, and remains material and relevant 

to the purposes for which it is received 

in order to maintain its records with 

fairness to the individuals who are the 

subjects of such records. 

616 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2508.5 

§ 2508.4 When can Corporation records 

be disclosed? 

(a) (1) The Corporation will not disclose any record that is contained in 

its system of records by any means of 

communication to any person, or to 

another agency, except pursuant to a written request by, or with the prior 

written consent of the individual to 

whom the record pertains, unless disclosure of the record would be: 

(i) To employees of the Corporation 

who maintain the record and who have a need for the record in the perform­ ance of their official duties; 

(ii) When required under the provisions of the Freedom of Information 

Act (5 U.S.C. 552); 

(iii) For routine uses as appropriately 

published in the annual notice of the 

FEDERAL REGISTER; 

(iv) To the Bureau of the Census for 

purposes of planning or carrying out a census or survey or related activity 

pursuant to the provisions of title 13; 

(v) To a recipient who has provided 

the Corporation with advance adequate 

written assurance that the record will 

be used solely as a statistical research or reporting record, and the record is 

to be transferred in a form that is not 

individually identifiable; 

(vi) To the National Archives and 

Records Administration of the United 

States as a record which has sufficient 

historical or other value to warrant its 

continued preservation by the United 

States Government, or for evaluation 

by the Archivist of the United States or the designee of the Archivist to determine whether the record has such 

value; 

(vii) To another agency or to an instrumentality of any governmental jurisdiction within or under the control 

of the United States for civil or criminal law enforcement activity if the ac­ tivity is authorized by law, and if the 

head of the agency or instrumentality 

has made a written request to the Corporation for such records specifying 

the particular portion desired and the 

law enforcement activity for which the 

record is sought. Such a record may 

also be disclosed by the Corporation to 

the law enforcement agency on its own initiative in situations in which criminal conduct is suspected provided that 

such disclosure has been established as 

a routine use or in situations in which 

the misconduct is directly related to 

the purpose for which the record is 

maintained; 

(viii) To a person pursuant to a showing of compelling circumstances affecting the health or safety of any individual if, upon such disclosure, notification is transmitted to the last known 

address of such individual; 

(ix) To either House of Congress, or, 

to the extent of matter within its jurisdiction, any committee or subcommittee thereof, any joint committee of Congress or subcommittee of 

any such joint committee; 

(x) To the Comptroller General or 

any of his or her authorized representatives, in the course of the performance 

of official duties in the General Accounting Office; 

(xi) Pursuant to an order of a court 

of competent jurisdiction served upon 

the Corporation pursuant to 45 CFR 

1201.3, and provided that if any such 

record is disclosed under such compulsory legal process and subsequently 

made public by the court which issued 

it, the Corporation must make a reasonable effort to notify the individual 

to whom the record pertains of such 

disclosure; 

(xii) To a contractor, expert, or consultant of the Corporation (or an office 

within the Corporation) when the purpose of the release to perform a survey, 

audit, or other review of the Corporation's procedures and operations; and 

(xiii) To a consumer reporting agency 

in accordance with section 3711(f) of 

title 31. 

§ 2508.5 When does the Corporation 

publish its notice of its system of 

records? 

The Corporation shall publish annually a notice of its system of records 

maintained by it as defined herein in 

the format prescribed by the General 

Services Administration in the FEDERAL REGISTER; provided, however, 

that such publication shall not be 

made for those systems of records 

maintained by other agencies while in 

the temporary custody of the Corporation. 

617 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2508.6 

§ 2508.6 When will the Corporation 

publish a notice for new routine uses of information in its system of 

records? 

At least 30 days prior to publication 

of information under the preceding sec­ tion, the Corporation shall publish in 

the FEDERAL REGISTER a notice of its 

intention to establish any new routine use of any system of records maintained by it with an opportunity for 

public comments on such use. Such no­ tice shall contain the following: 

(a) The name of the system of records 

for which the routine use is to be es­ tablished. 

(b) The authority for the system. 

(c) The purpose for which the record 

is to be maintained. 

(d) The proposed routine use(s). 

(e) The purpose of the routine use(s). 

(f) The categories of recipients of 

such use. In the event of any request 

for an addition to the routine uses of 

the systems which the Corporation 

maintains, such request may be sent to 

the following office: Corporation for 

National and Community Service, Director, Administration and Management Services, Room 6100, 1201 New 

York Avenue, NW, Washington, DC 

20525. 

§2508.7 To whom does the Corporation provide reports regarding 

changes in its system of records? 

The Corporation shall provide to the 

Committee on Government Operations 

of the House of Representatives, the 

Committee on Governmental Affairs of 

the Senate, and the Office of Management and Budget, advance notice of 

any proposal to establish or alter any 

system of records as defined herein. 

This report will be submitted in ac­ cordance with guidelines provided by 

the Office of Management and Budget. 

§ 2508.8 Who is responsible for estab- lishing the Corporation's rules of 

conduct for Privacy Act compliance? 

(a) The Chief Executive Officer shall ensure that all persons involved in the 

design, development, operation or maintenance of any system of records as defined herein are informed of all re­ quirements necessary to protect the 

privacy of individuals who are the sub45 CFR Ch. XXV (10-1-12 Edition) 

ject of such records. All employees 

shall be informed of all implications of 

the Act in this area including the civil 

remedies provided under 5 U.S.C. 

552a(g)(l) and the fact that the Corporation may be subject to civil rem­ edies for failure to comply with the 

provisions of the Privacy Act and this 

regulation. 

(b) The Chief Executive Officer shall 

also ensure that all personnel having access to records receive adequate 

training in the protection of the secu­ rity of personal records, and that adequate and proper storage is provided 

for all such records with sufficient se­ curity to assure the privacy of such 

records. 

§ 2508.9 What officials are responsible 

for the security, management and 

control of Corporation record keeping systems? 

(a) The Director of Administration 

and Management Services shall have 

overall control and supervision of the 

security of all systems of records and 

shall be responsible for monitoring the 

security standards set forth in this regulation. 

(b) A designated official (System 

Manager) shall be named who shall 

have management responsibility for 

each record system maintained by the 

Corporation and who shall be responsible for providing protection and ac­ countability for such records at all 

times and for insuring that such 

records are secured in appropriate con­ tainers whenever not in use or in the 

direct control of authorized personnel. 

§ 2508.10 Who has the responsibility 

for maintaining adequate technical, 

physical, and security safeguards to 

prevent unauthorized disclosure or destruction of manual and automatic record systems? 

The Chief Executive Officer has the 

responsibility of maintaining adequate 

technical, physical, and security safeguards to prevent unauthorized disclo­ sure or destruction of manual and 

automatic record systems. These secu­ rity safeguards shall apply to all systems in which identifiable personal 

data are processed or maintained, including all reports and outputs from 

such systems that contain identifiable 

personal information. Such safeguards 

618 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2508.11 

must be sufficient to prevent negligent, 

accidental, or unintentional disclosure, 

modification or destruction of any personal records or data, and must furthermore minimize, to the extent practicable, the risk that skilled technicians or knowledgeable persons could 

improperly obtain access to modify or destroy such records or data and shall 

further insure against such casual 

entry by unskilled persons without official reasons for access to such records or data. 

(a) Manual systems. (1) Records contained in a system of records as defined 

herein may be used, held or stored only 

where facilities are adequate to prevent unauthorized access by persons 

within or outside the Corporation. 

(2) All records, when not under the 

personal control of the employees au­ thorized to use the records, must be 

stored in a locked metal filing cabinet. 

Some systems of records are not of 

such confidential nature that their disclosure would constitute a harm to an individual who is the subject of such 

record. However, records in this category shall also be maintained in 

locked metal filing cabinets or maintained in a secured room with a locking door. 

(3) Access to and use of a system of 

records shall be permitted only to per­ sons whose duties require such access within the Corporation, for routine uses as defined in § 2508.4 as to any 

given system, or for such other uses as may be provided herein. 

(4) Other than for access within the 

Corporation to persons needing such 

records in the performance of their official duties or routine uses as defined 

in § 2508.4, or such other uses as provided herein, access to records within a 

system of records shall be permitted 

only to the individual to whom the 

record pertains or upon his or her written request to the Director, Administration and Management Services. 

(5) Access to areas where a system of 

records is stored will be limited to 

those persons whose duties require 

work in such areas. There shall be an accounting of the removal of any 

records from such storage areas utilizing a written log, as directed by the 

Director, Administration and Management Services. The written log shall be 

maintained at all times. 

(6) The Corporation shall ensure that 

all persons whose duties require access to and use of records contained in a system of records are adequately 

trained to protect the security and privacy of such records. 

(7) The disposal and destruction of 

records within a system of records 

shall be in accordance with rules promulgated by the General Services Administration. 

(b) Automated systems. (1) Identifiable 

personal information may be processed, 

stored or maintained by automated 

data systems only where facilities or conditions are adequate to prevent un­ authorized access to such systems in 

any form. Whenever such data, whether 

contained in punch cards, magnetic 

tapes or discs, are not under the personal control of an authorized person, 

such information must be stored in a locked or secured room, or in such 

other facility having greater safeguards than those provided for herein. 

(2) Access to and use of identifiable 

personal data associated with automated data systems shall be limited to 

those persons whose duties require 

such access. Proper control of personal 

data in any form associated with automated data systems shall be maintained at all times, including mainte­ nance of accountability records showing disposition of input and output documents. 

(3) All persons whose duties require access to processing and maintenance 

of identifiable personal data and automated systems shall be adequately 

trained in the security and privacy of 

personal data. 

(4) The disposal and disposition of 

identifiable personal data and automated systems shall be done by shredding, burning or in the case of tapes or discs, degaussing, in accordance with 

any regulations now or hereafter proposed by the General Services Administration or other appropriate authority. 

§ 2508.11 How shall offices maintain- ing a system of records be accountable for those records to prevent 

unauthorized disclosure of information? 

(a) Each office maintaining a system 

of records shall account for all records 

619 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2508.12 

within such system by maintaining a written log in the form prescribed by 

the Director, Administration and Management Services, containing the following information: 

(1) The date, nature, and purpose of 

each disclosure of a record to any per­ son or to another agency. Disclosures 

made to employees of the Corporation 

in the normal course of their duties, or pursuant to the provisions of the Freedom of Information Act, need not be 

accounted for. 

(2) Such accounting shall contain the name and address of the person or agency to whom the disclosure was made. 

(3) The accounting shall be maintained in accordance with a system of 

records approved by the Director, Administration and Management Services, as sufficient for the purpose but in 

any event sufficient to permit the con­ struction of a listing of all disclosures 

at appropriate periodic intervals. 

(4) The accounting shall reference 

any justification or basis upon which 

any release was made including any 

written documentation required when 

records are released for statistical or law enforcement purposes under the 

provisions of subsection (b) of the Privacy Act of 1974 (5 U.S.C. 552a). 

(5) For the purpose of this part, the 

system of accounting for disclosures is 

not a system of records under the definitions hereof, and need not be maintained within a system of records. 

(6) Any subject individual may re­ quest access to an accounting of disclo­ sures of a record. The subject individual shall make a request for access to an accounting in accordance with 

§2508.13. An individual will be granted access to an accounting of the disclo­ sures of a record in accordance with 

the procedures of this subpart which 

govern access to the related record. Ac­ cess to an accounting of a disclosure of a record made under § 2508.13 may be 

granted at the discretion of the Director, Administration and Management 

Services. 

§ 2508.12 What are the contents of the 

systems of record that are to be 

maintained by the Corporation? 

(a) The Corporation shall maintain 

all records that are used in making de45 CFR Ch. XXV (10-1-12 Edition) 

terminations about any individual with 

such accuracy, relevance, timeliness, 

and completeness as is reasonably nec­ essary to assure fairness to the individual in the determination; 

(b) In situations in which the information may result in adverse determinations about such individual's 

rights, benefits and privileges under 

any Federal program, all information 

placed in a system of records shall, to 

the greatest extent practicable, be collected from the individual to whom the 

record pertains. 

(c) Each form or other document that an individual is expected to complete 

in order to provide information for any 

system of records shall have appended 

thereto, or in the body of the document: 

(1) An indication of the authority au­ thorizing the solicitation of the information and whether the provision of 

the information is mandatory or voluntary. 

(2) The purpose or purposes for which 

the information is intended to be used. 

(3) Routine uses which may be made 

of the information and published pursuant to § 2508.6. 

(4) The effect on the individual, if 

any, of not providing all or part of the 

required or requested information. 

(d) Records maintained in any system of records used by the Corporation 

to make any determination about any 

individual shall be maintained with 

such accuracy, relevancy, timeliness, 

and completeness as is reasonably nec­ essary to assure fairness to the individual in the making of any determination about such individual, provided, 

however, that the Corporation shall 

not be required to update or keep cur­ rent retired records. 

(e) Before disseminating any record 

about any individual to any person 

other than an employee in the Corporation, unless the dissemination is made 

pursuant to the provisions of the Freedom of Information Act (5 U.S.C. 552), 

the Corporation shall make reasonable 

efforts to ensure that such records are, or were at the time they were collected, accurate, complete, timely and 

relevant for Corporation purposes. 

(f) Under no circumstances shall the 

Corporation maintain any record about 

620 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2508.14 

any individual with respect to or describing how such individual exercises 

rights guaranteed by the First Amendment of the Constitution of the United 

States, unless expressly authorized by 

statute or by the individual about 

whom the record is maintained, or unless pertinent to and within the scope 

of an authorized law enforcement activity. 

(g) In the event any record is disclosed as a result of the order of a 

court of appropriate jurisdiction, the 

Corporation shall make reasonable efforts to notify the individual whose 

record was so disclosed after the process becomes a matter of public record. 

§ 2508.13 What are the procedures for 

acquiring access to Corporation 

records by an individual about 

whom a record is maintained? 

(a) Any request for access to records 

from any individual about whom a 

record is maintained will be addressed 

to the Corporation for National and 

Community Service, Office of the General Counsel, Attn: Privacy Act Officer, 

Room 8200, 1201 New York Avenue, NW, 

Washington, DC 20525, or delivered in 

person during regular business hours, 

whereupon access to his or her record, 

or to any information contained therein, if determined to be releasable, shall 

be provided. 

(b) If the request is made in person, 

such individual may, upon his or her 

request, be accompanied by a person of 

his or her choosing to review the 

record and shall be provided an opportunity to have a copy made of any 

record about such individual. 

(c) A record may be disclosed to a 

representative chosen by the individual 

as to whom a record is maintained 

upon the proper written consent of 

such individual. 

(d) A request made in person will be 

promptly complied with if the records 

sought are in the immediate custody of 

the Corporation. Mailed requests or 

personal requests for documents in 

storage or otherwise not immediately 

available, will be acknowledged within 

10 working days, and the information 

requested will be promptly provided 

thereafter. 

(e) With regard to any request for 

disclosure of a record, the following 

procedures shall apply: 

(1) Medical or psychological records 

shall be disclosed to an individual unless, in the judgment of the Corporation, access to such records might have 

an adverse effect upon such individual. 

When such determination has been 

made, the Corporation may require 

that the information be disclosed only 

to a physician chosen by the requesting 

individual. Such physician shall have 

full authority to disclose all or any 

portion of such record to the requesting individual in the exercise of his or 

her professional judgment. 

(2) Test material and copies of certificates or other lists of eligibles or any other listing, the disclosure of 

which would violate the privacy of any 

other individual, or be otherwise exempted by the provisions of the Privacy Act, shall be removed from the 

record before disclosure to any individual to whom the record pertains. 

§2508.14 What are the identification 

requirements for individuals who 

request access to records? 

The Corporation shall require reasonable identification of all individuals 

who request access to records to ensure that records are disclosed to the proper 

person. 

(a) In the event an individual requests disclosure in person, such individual shall be required to show an 

identification card such as a drivers license, etc., containing a photo and a 

sample signature of such individual. 

Such individual may also be required 

to sign a statement under oath as to 

his or her identity, acknowledging that 

he or she is aware of the penalties for 

improper disclosure under the provisions of the Privacy Act. 

(b) In the event that disclosure is requested by mail, the Corporation may 

request such information as may be 

necessary to reasonably ensure that 

the individual making such request is 

properly identified. In certain cases, 

the Corporation may require that a 

mail request be notarized with an indication that the notary received an ac­ knowledgment of identity from the individual making such request. 

621 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2508.15 

(c) In the event an individual is un­ able to provide suitable documentation or identification, the Corporation may 

require a signed notarized statement 

asserting the identity of the individual 

and stipulating that the individual un­ derstands that knowingly or willfully 

seeking or obtaining access to records 

about another person under false pretenses is punishable by a fine of up to 

$5,000. 

(d) In the event a requestor wishes to 

be accompanied by another person 

while reviewing his or her records, the 

Corporation may require a written 

statement authorizing discussion of his or her records in the presence of the ac­ companying representative or other 

persons. 

§ 2508.15 What are the procedures for 

requesting inspection of, amendment or correction to, or appeal of an individual's records maintained 

by the Corporation other than that 

individual's official personnel file? 

(a) A request for inspection of any 

record shall be made to the Director, 

Administration and Management Services. Such request may be made by 

mail or in person provided, however, 

that requests made in person may be 

required to be made upon a form provided by the Director of Administration and Management Services who 

shall keep a current list of all systems 

of records maintained by the Corporation and published in accordance with 

the provisions of this regulation. However, the request need not be in writing 

if the individual makes his or her re­ quest in person. The requesting individual may request that the Corporation compile all records pertaining to 

such individual at any named Service 

Center/State Office, AmeriCorps*NCCC 

Campus, or at Corporation Headquarters in Washington, DC, for the individual's inspection and/or copying. In 

the event an individual makes such re­ quest for a compilation of all records 

pertaining to him or her in various locations, appropriate time for such compilation shall be provided as may be 

necessary to promptly comply with 

such requests. 

(b) Any such requests should contain, 

at a minimum, identifying information 

needed to locate any given record and a 

brief description of the item or items 

45 CFR Ch. XXV (10-1-12 Edition) 

of information required in the event 

the individual wishes to see less than 

all records maintained about him or 

her. 

(1) In the event an individual, after 

examination of his or her record, desires to request an amendment or cor­ rection of such records, the request 

must be submitted in writing and addressed to the Corporation for National 

and Community Service, Office of the 

General Counsel, Attn: Privacy Act Officer, Room 8200, 1201 New York Avenue, NW, Washington, DC 20525. In his 

or her written request, the individual 

shall specify: 

(i) The system of records from which 

the record is retrieved; 

(ii) The particular record that he or 

she is seeking to amend or correct; 

(iii) Whether he or she is seeking an 

addition to or a deletion or substitution of the record; and, 

(iv) His or her reasons for requesting 

amendment or correction of the record. 

(2) A request for amendment or correction of a record will be acknowledged within 10 working days of its receipt unless the request can be processed and the individual informed of 

the Privacy Act Officer's decision on 

the request within that 10 day period. 

(3) If the Privacy Act Officer agrees 

that the record is not accurate, timely, 

or complete, based on a preponderance 

of the evidence, the record will be cor­ rected or amended. The record will be 

deleted without regard to its accuracy, 

if the record is not relevant or nec­ essary to accomplish the Corporation's 

function for which the record was provided or is maintained. In either case, 

the individual will be informed in writing of the amendment, correction, or 

deletion and, if accounting was made of 

prior disclosures of the record, all previous recipients of the record will be 

informed of the corrective action 

taken. 

(4) If the Privacy Act Officer does not 

agree that the record should be amended or corrected, the individual will be 

informed in writing of the refusal to 

amend or correct the record. He or she 

will also be informed that he or she 

may appeal the refusal to amend or 

correct his or her record in accordance 

with §2508.17. 

622 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2508.17 

(5) Requests to amend or correct a 

record governed by the regulation of 

another government agency will be forwarded to such government agency for 

processing and the individual will be 

informed in writing of the referral. 

(c) In the event an individual disagrees with the Privacy Act Officer's 

initial determination, he or she may 

appeal such determination to the Appeal Officer in accordance with 

§2508.17. Such request for review must 

be made within 30 days after receipt by 

the requestor of the initial refusal to 

amend. 

§ 2508.16 What are the procedures for 

filing an appeal for refusal to 

amend or correct records? 

(a) In the event an individual desires 

to appeal any refusal to correct or 

amend records, he or she may do so by 

addressing, in writing, such appeal to 

the Corporation for National and Community Service, Office of the Chief Operating Officer, Attn: Appeal Officer, 

1201 New York Avenue NW, Washington, DC 20525. Although there is no 

time limit for such appeals, the Corporation shall be under no obligation 

to maintain copies of original requests 

or responses thereto beyond 180 days 

from the date of the original request. 

(b) An appeal will be completed within 30 working days from its receipt by 

the Appeal Officer; except that, the appeal authority may, for good cause, extend this period for an additional 30 

days. Should the appeal period be extended, the individual appealing the 

original refusal will be informed in 

writing of the extension and the circumstances of the delay. The individual's request for access to or to amend 

or correct the record, the Privacy Act 

Officer's refusal to amend or correct 

the record, and any other pertinent 

material relating to the appeal will be 

reviewed. No hearing will be held. 

(c) If the Appeal Officer determines 

that the record that is the subject of 

the appeal should be amended or corrected, the record will be amended or 

corrected and the individual will be informed in writing of the amendment or 

correction. Where an accounting was 

made of prior disclosures of the record, 

all previous recipients of the record 

will be informed of the corrective action taken. 

(d) If the appeal is denied, the subject 

individual will be informed in writing: 

(1) Of the denial and reasons for the 

denial; 

(2) That he or she has a right to seek 

judicial review of the denial; and 

(3) That he or she may submit to the 

Appeal Officer a concise statement of 

disagreement to be associated with the 

disputed record and disclosed whenever 

the record is disclosed. 

(e) Whenever an individual submits a statement of disagreement to the Appeal Officer in accordance with paragraph (d)(3) of this section, the record 

will be annotated to indicate that it is 

disputed. In any subsequent disclosure, 

a copy of the subject individual's statement of disagreement will be disclosed 

with the record. If the appeal authority 

deems it appropriate, a concise statement of the Appeal Officer's reasons for 

denying the individual's appeal may 

also be disclosed with the record. While 

the individual will have access to this 

statement of reasons, such statement 

will not be subject to correction or 

amendment. Where an accounting was made of prior disclosures of the record, 

all previous recipients of the record 

will be provided a copy of the individual's statement of disagreement, as well as the statement, if any, of the 

Appeal Officer's reasons for denying 

the individual's appeal. 

§ 2508.17 When shall fees be charged 

and at what rate? 

(a) No fees shall be charged for search 

time or for any other time expended by 

the Corporation to review or produce a 

record except where an individual re­ quests that a copy be made of the 

record to which he or she is granted access. Where a copy of the record must 

be made in order to provide access to 

the record (e.g., computer printout 

where no screen reading is available), 

the copy will be made available to the 

individual without cost. 

(b) The applicable fee schedule is as 

follows: 

(1) Each copy of each page, up to 

81⁄2"x14", made by photocopy or similar 

process is $0.10 per page. 

(2) Each copy of each microform 

frame printed on paper is $0.25. 

623 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2508.18 

(3) Each aperture card is $0.25. 

(4) Each 105-mm fiche is $0.25. 

(5) Each 100' foot role of 35-mm 

microfilm is $7.00. 

(6) Each 100' foot role of 16-mm 

microfilm is $6.00. 

(7) Each page of computer printout 

without regard to the number of car­ bon copies concurrently printed is 

$0.20. 

(8) Copying records not susceptible to 

photocopying (e.g., punch cards or 

magnetic tapes), at actual cost to be 

determined on a case-by-case basis. 

(9) Other copying forms (e.g., typing 

or printing) will be charged at direct 

costs, including personnel and equipment costs. 

(c) All copying fees shall be paid by 

the individual before the copying will 

be undertaken. Payments shall be 

made by check or money order payable 

to the "Corporation for National and 

Community Service," and provided to 

the Privacy Act Officer processing the 

request. 

(d) A copying fee shall not be charged 

or collected, or alternatively, it may 

be reduced, when it is determined by 

the Privacy Act Officer, based on apetition, that the petitioning individual 

is indigent and that the Corporation's 

resources permit a waiver of all or part 

of the fee. An individual is deemed to 

be indigent when he or she is without 

income or lacks the resources sufficient to pay the fees. 

(e) Special and additional services 

provided at the request of the individual, such as certification or authentication, postal insurance and special 

mailing arrangement costs, will be 

charged to the individual. 

(f) A copying fee totaling $5.00 or less 

shall be waived, but the copying fees 

for contemporaneous requests by the same individual shall be aggregated to 

determine the total fee. 

§ 2508.18 What are the penalties for obtaining a record under false pretenses? 

The Privacy Act provides, in pertinent part that: 

(a) Any person who knowingly and 

willfully requests to obtain any record 

concerning an individual from the Corporation under false pretenses shall be 

45 CFR Ch. XXV (10-1-12 Edition) 

guilty of a misdemeanor and fined not 

more than $5,000 (5 U.S.C. 552a(I)(3)). 

(b) A person who falsely or fraudulently attempts to obtain records 

under the Privacy Act also may be subject to prosecution under such other 

criminal statutes as 18 U.S.C. 494, 495 

and 1001. 

§ 2508.19 What Privacy Act exemptions or control of systems of records are exempt from disclosure? 

(a) Certain systems of records that 

are maintained by the Corporation are 

exempted from provisions of the Privacy Act in accordance with exemptions (j) and (k) of 5 U.S.C. 552a. 

(1) Exemption of Inspector General 

system of records. Pursuant to, and 

limited by 5 U.S.C. 552a(j)(2), the system of records maintained by the Office of the Inspector General that contains the Investigative Files shall be 

exempted from the provisions of 5 

U.S.C. 552a, except subsections (b), (c) 

(1) and (2), (e)(4) (A) through (F), 

(e)(6)(7), (9), (10), and (11), and (I), and 

45 CFR 2508.11, 2508.12, 2508.13, 2508.14, 

2508.15, 2508.16, and 2508.17, insofar as 

the system contains information pertaining to criminal law enforcement 

investigations. 

(2) Pursuant to, and limited by 5 

U.S.C. 552a(k)(2), the system of records 

maintained by the Office of the Inspector General that contains the Investigative Files shall be exempted from 5 

U.S.C. 552a (c)(3), (d), (e)(l), (e)(4) (G), 

(H), and (I), and (f), and 45 CFR 2508.11, 

2508.12, 2508.13, 2508.14, 2508.15, 2508.16, 

and 2508.17, insofar as the system contains investigatory materials compiled 

for law enforcement purposes. 

(b) Exemptions to the General Counsel system of records. Pursuant to, and 

limited by 5 U.S.C. 552a(d)(5), the system of records maintained by the Office of the General Counsel that contains the Legal Office Litigation/Correspondence Files shall be exempted 

from the prov1s1ons of 5 U.S.C. 

552a(d)(5), and 45 CFR 2508.4, insofar as 

the system contains information compiled in reasonable anticipation of a 

civil action or proceeding. 

624 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2510.20 

§ 2508.20 What are the restrictions re­ garding the release of mailing lists? 

An individual's name and address 

may not be sold or rented by the Corporation unless such action is specifically authorized by law. This section 

does not require the withholding of names and addresses otherwise permitted to be made public. 

PART 2510-0VERALL PURPOSES 

AND DEFINITIONS 

Sec. 

2510.10 What are the purposes of the programs and activities of the Corporation 

for National and Community Service? 

2510.20 Definitions. 

AUTHORITY: 42 U.S.C. 12511. 

§ 2510.10 What are the purposes of the 

programs and activities of the Corporation for National and Community Service? 

The National and Community Service Trust Act of 1993 established the 

Corporation for National and Community Service (the Corporation). The 

Corporation's mission is to engage 

Americans of all ages and backgrounds 

in community-based service. This serv­ ice will address the Nations educational, public safety, human, and en­ vironmental needs to achieve direct 

and demonstrable results. In doing so, 

the Corporation will foster civic re­ sponsibility, strengthen the ties that 

bind us together as a people, and provide educational opportunity for those 

who make a substantial commitment 

to service. The Corporation will undertake activities and provide assistance 

to States and other eligible entities to 

support national and community serv­ ice programs and to achieve other purposes consistent with its mission. 

[59 FR 13783, Mar. 23, 1994] 

§ 2510.20 Definitions. 

The following definitions apply to 

terms used in 45 CFR parts 2510 

through 2550: 

Act. The term Act means the National 

and Community Service Act of 1990, as amended (42 U.S.C. 12501 et seq.). 

Administrative costs. The term administrative costs means general or centralized expenses of overall administration 

of an organization that receives assist­ ance under the Act and does not include program costs. 

(1) For organizations that have an es­ tablished indirect cost rate for Federal 

awards, administrative costs mean those costs that are included in the or­ ganization's indirect cost rate. Such 

costs are generally identified with the 

organization's overall operation and are further described in Office of Management and Budget Circulars A-21 

(Cost Principles for Educational Institutions), A--87 (Cost Principles for 

State, Local and Indian Tribal Governments), and A-122 (Cost Principles for 

Nonprofit Organizations) that provide 

guidance on indirect cost to Federal 

agencies. Copies of Office of Management and Budget Circulars are available from the Executive Office of the 

President, 725 17th Street, NW., room 2200, New Executive Office Building, 

Washington, D.C. 20503. They may also 

be accessed on-line at: http:// 

WWW. whitehouse.gov/WHIEOPIOMBI 

grants/index.html. 

(2) For organizations that do not 

have an established indirect cost rate 

for Federal awards, administrative 

costs include: 

(i) Costs for financial, accounting, 

auditing, contracting, or general legal 

services except in unusual cases when 

they are specifically approved in writing by the Corporation as program 

costs. 

(ii) Costs for internal evaluation, including overall organizational management improvement costs (except for 

independent evaluations and internal 

evaluations of a program or project). 

(iii) Costs for general liability insur­ ance that protects the organization(s) 

responsible for operating a program or project, other than insurance costs 

solely attributable to a program or project. 

Adult Volunteer. (1) The term adult 

volunteer means an individual, such as an older adult, an individual with disability, a parent, or an employee of a business of public or private nonprofit 

organization, who-

(i) Works without financial remu­ neration in an educational institution 

to assist students of out-of-school 

youth; and 

625 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2510.20 

(2) Is beyond the age of compulsory 

school attendance in the State in 

which the educational institution is located. 

AmeriCorps. The term AmeriCorps 

means the combination of all 

AmeriCorps programs and participants. 

AmeriCorps educational award. The 

term AmeriCorps educational award 

means a national service educational 

award described in section 147 of the 

Act. 

AmeriCorps participant. The term 

AmeriCorps participant means any individual who is serving in-

(1) An AmeriCorps program; 

(2) An approved AmeriCorps position; or 

(3) Both. 

AmeriCorps program. The term 

AmeriCorps program means-

(!) Any program that receives approved AmeriCorps positions; 

(2) Any program that receives Corporation funds under section 121 of the 

Act; or 

(3) Both. 

Approved AmeriCorps position. The 

term approved AmeriCorps position 

means an AmeriCorps position for 

which the Corporation has approved 

the provision of an AmeriCorps educational award as one of the benefits to 

be provided for successful service in 

the position. 

Approved Silver Scholar position. The 

term approved Silver Scholar position 

means a Silver Scholar position for 

which the Corporation has approved a Silver Scholar education award. 

Approved Summer of Service position. 

The term approved Summer of Service position means a Summer of Service position for which the Corporation has approved a Summer of Service education 

award. 

Carry out. The term carry out, when 

used in connection with an AmeriCorps 

program described in section 122 of the 

Act, means the planning, establishment, operation, expansion, or replication of the program. 

Chief Executive Officer. The term Chief 

Executive Officer, except when used to 

refer to the chief executive officer of a State, means the Chief Executive Offi­ cer of the Corporation appointed under 

section 193 of the Act. 

45 CFR Ch. XXV (10-1-12 Edition) 

Children. The term children means individuals 17 years of age and younger. 

Community-based agency. The term 

community-based agency means a private nonprofit organization (including a church or other religious entity) 

that- (!) Is representative of a community or a significant segment of a commu­ nity; and 

(2) Is engaged in meeting educational, public safety, human, or environmental community needs. 

Community-based entity. The term 

community-based entity means a public or private nonprofit organization 

that- (!) Has experience with meeting 

unmet human, educational, environmental, or public safety needs; and 

(2) Meets other such criteria as the 

Chief Executive Officer may establish. 

Corporation. The term Corporation 

means the Corporation for National 

and Community Service established 

under section 191 of the Act. 

Economically disadvantaged. The term 

economically disadvantaged, with re­ spect to an individual, has the same meaning as such term as defined in the 

Job Training Partnership Act (29 

u.s.c. 1503(8)). 

Elementary school. The term elementary school has the same meaning given 

the term in section 1471(8) of the Elementary and Secondary Education Act 

of 1965 (20 U.S.C. 2891(8)). 

Empowerment zone. The term empowerment zone means an area designated as an empowerment zone by 

the Secretary of the Department of 

Housing and Urban Development or the 

Secretary of the Department of Agriculture. 

Grantmaking entity. (1) For schoolbased programs, the term grantmaking 

entity means a public or private non­ profit organization experienced in serv­ ice-learning that- (i) Submits an application to make 

grants for school-based service-learning programs in two or more States; 

and 

(ii) Was in existence at least one year 

before the date on which the organization submitted the application. 

(2) For community-based programs, 

the term grantmaking entity means a qualified organization that626 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2510.20 

(i) Submits an application to make 

grants to qualified organizations to implement, operate, expand, or replicate 

community-based service programs 

that provide for educational, public 

safety, human, or environmental service by school-age youth in two or more 

States; and 

(ii) Was in existence at least one year 

before the date on which the organization submitted the application. 

Higher Education partnerships. The 

term higher education partnership 

means one or more public or private 

nonprofit organizations, or public 

agencies, including States, and one or 

more institutions of higher education 

that have entered into a written agreement specifying the responsibilities of 

each partner. 

Indian. The term Indian means a person who is a member of an Indian tribe, or is a "Native", as defined in section 

3(b) of the Alaska Native Claims Settlement Act (43 U.S.C. 1602(b)). 

Indian lands. The term Indian lands 

means any real property owned by an 

Indian tribe, any real property held in 

trust by the United States for an Indian or Indian tribe, and any real property held by an Indian or Indian tribe 

that is subject to restrictions on alienation imposed by the United States. 

Indian tribe. The term Indian tribe 

means--

(!) An Indian tribe, band, nation, or other organized group or community 

that is recognized as eligible for the 

special programs and services provided 

by the United States under Federal law 

to Indians because of their status as Indians, including-

(i) Any Native village, as defined in 

section 3(c) of the Alaska Native 

Claims Settlement Act (43 U.S.C. 

1602(c)), whether organized traditionally or pursuant to the Act of June 18, 

1934 (commonly known as the "Indian 

Reorganization Act", 25 U.S.C. 461 et 

seq.); and 

(ii) Any Regional Corporation or Village Corporation, as defined in subsection (g) or (j), respectively, of section 3 of the Alaska Native Claims Settlement Act (43 U.S.C. 1602 (g) or (j)); 

and 

(2) Any tribal organization controlled, sanctioned, or chartered by an 

entity described in paragraph (1) of this 

definition. 

Individual with a disability. Except as provided in section l 75(a) of the Act, 

the term individual with a disability has 

the meaning given the term in section 

7(8)(B) of the Rehabilitation Act of 1973 

(29 U.S.C. 706(8)(B)), which includes individuals with cognitive and other 

mental impairments, as well as individuals with physical impairments, 

who meet the criteria in that definition. 

Infrastructure-building activities. The 

term infrastructure-building activities re­ fers to activities that increase the ca­ pacity of organizations, programs and 

individuals to provide high quality 

service to communities. 

Institution of higher education. The 

term institution of higher education has 

the same meaning given the term in 

section 101 of the Higher Education Act 

of 1965 (20 U.S.C. 1001). 

Local educational agency (LEA). The 

term local educational agency has the 

same meaning given the term in sec­ tion 1471(12) of the Elementary and 

Secondary Education Act of 1965 (20 

u.s.c. 2891(12)). 

Local partnership. The term local partnership means a partnership, as defined 

in § 2510.20 of this chapter, that meets 

the eligibility requirements to apply 

for subgrants under §2516.110 or § 2517 .110 of this chapter. 

National nonprofit. The term national 

nonprofit means any nonprofit organization whose mission, membership, ac­ tivities, or constituencies are national 

in scope. 

National service laws. The term national service laws means the Act and 

the Domestic Volunteer Service Act of 

1973 (42 U.S.C. 4950 et seq.). 

Objective. The term objective means a 

desired accomplishment of a program. 

Out-of-school youth. The term out-ofschool youth means an individual who--­

(1) Has not attained the age of 27; 

(2) Has not completed college or its 

equivalent; and 

(3) Is not enrolled in an elementary 

or secondary school or institution of 

higher education. 

Participant. (1) The term participant 

means an individual enrolled in a program that receives assistance under 

the Act. 

627 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2510.20 

(2) A participant may not be considered to be an employee of the program 

in which the participant is enrolled. 

(3) A participant may also be referred 

to by the term member. 

Partnership. The term partnership 

means two or more entities that have 

entered into a written agreement specifying the partnership's goals and ac­ tivities as well as the responsibilities, 

goals, and activities of each partner. 

Partnership program. The term partnership program means a program 

through which an adult volunteer, a public or private nonprofit organization, an institution of higher education, or a business assists a local 

educational agency. 

Program. The term program, unless 

the context otherwise requires, and ex­ cept when used as part of the term aca­ demic program, means a program described in section lll(a) (other than a program referred to in paragraph (3)(B) 

of that section), 117A(a), 119(b)(l), or 122(a) of the Act, or in paragraph (1) or (2) of section 152(b) of the Act, or an ac­ tivity that could be funded under sec­ tions 198, 198C, or 198D of the Act. 

Program costs. The term program costs 

means expenses directly related to a program or project, including their operations and objectives. Program costs 

include, but are not limited to: 

(1) Costs attributable to participants, 

including: living allowances, insurance 

payments, and expenses for training 

and travel. 

(2) Costs (including salary, benefits, 

training, travel) attributable to staff 

who recruit, train, place, support, co­ ordinate, or supervise participants, or who develop materials used in such ac­ tivities. 

(3) Costs for independent evaluations 

and internal evaluations to the extent 

that the evaluations cover only the 

funded program or project. 

(4) Costs, excluding those already 

covered in an organization's indirect 

cost rate, attributable to staff that 

work in a direct program or project 

support, operational, or oversight ca­ pacity, including, but not limited to: 

support staff whose functions directly 

support program or project activities; 

staff who coordinate and facilitate single or multi-site program and project 

activities; and staff who review, dis45 CFR Ch. XXV (10-1-12 Edition) 

seminate and implement Corporation 

guidance and policies directly relating 

to a program or project. 

(5) Space, facility, and communications costs for program or project operations and other costs that primarily 

support program or project operations, 

excluding those costs that are already 

covered by an organization's indirect 

cost rate. 

(6) Other allowable costs, excluding 

those costs that are already covered by an organization's indirect cost rate, 

specifically approved by the Corporation as directly attributable to a program or project. 

Program sponsor. The term program 

sponsor means an entity responsible for 

recruiting, selecting, and training participants, providing them benefits and 

support services, engaging them in regular group activities, and placing them 

in projects. 

Project. The term project means an ac­ tivity, or a set of activities, carried out 

through a program that receives assist­ ance under the Act, that results in a specific identifiable service or improvement that otherwise would not be done 

with existing funds, and that does not 

duplicate the routine services or functions of the employer to whom participants are assigned. 

Project sponsor. The term project sponsor means an organization, or other en­ tity, that has been selected to provide a placement for a participant. 

Qualified individual with a disability. 

The term qualified individual with a disability has the meaning given the term 

in section 101(8) of the Americans with 

Disabilities Act of 1990 (42 U.S.C. 

12111(8)). 

Qualified organization. The term 

qualified organization means a public or private nonprofit organization, other 

than a grantmaking entity, that-

(!) Has experience in working with 

school-age youth; and 

(2) Was in existence at least one year 

before the date on which the organization submitted an application for a service-learning program. 

Recognized equivalent of a high-school 

diploma. The term recognized equivalent 

of a high-school diploma means: 

(1) A General Education Development 

Certificate (GED); 

628 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2510.20 

(2) A State certificate received by a student after the student has passed a State-authorized examination that the 

State recognizes as the equivalent of a high-school diploma; 

(3) An academic transcript of a student who has successfully completed at 

least a two-year program that is ac­ ceptable for full credit toward a bachelor's degree; or (4) For a person who is seeking en­ rollment in an educational program 

that leads to at least an associate degree or its equivalent and who has not 

completed high-school but who ex­ celled academically in high-school, 

documentation that the student ex­ celled academically in high-school and 

has met the formalized, written policies of the institution for admitting 

such students. 

Recurring access. The term recurring 

access means the ability on more than one occasion to approach, observe, or communicate with, an individual, 

through physical proximity or other 

means, including but not limited to, 

electronic or telephonic communication. 

School-age youth. The term school-age 

youth means- (!) Individuals between the ages of 5 

and 17, inclusive; and 

(2) Children with disabilities, as defined in section 602(a)(l) of the Individuals with Disabilities Education Act 

(20 U.S.C. 1401(a)(l)), who receive serv­ ices under part B of that Act. 

Secondary school. The term secondary 

school has the same meaning given the 

term in section 1471(21) of the Elementary and Secondary Education Act of 

1965 (20 u.s.c. 2891(21)). 

Service-learning. The term servicelearning means a method under which 

students or participants learn and develop through active participation in 

thoughtfully organized service that--- (1) Is conducted in and meets the 

needs of a community; 

(2) Is coordinated with an elementary 

school, secondary school, institution of 

higher education, or community serv­ ice program, and with the community; 

(3) Helps foster civic responsibility; 

(4) Is integrated into and enhances 

the academic curriculum of the students or the educational components of 

the community service program in 

which the participants are enrolled; 

and 

(5) Includes structured time for the 

students and participants to reflect on the service experience. 

Service-learning coordinator. The term 

service-learning coordinator means an individual trained in service-learning 

who identifies community partners for 

LEAs; assists in designing and implementing local partnerships servicelearning programs; provides technical 

assistance and information to, and facilitates the training of, teachers; and 

provides other services for an LEA. 

State. The term State means each of 

the several States, the District of Columbia, the Commonwealth of Puerto 

Rico, the United States Virgin Islands, 

Guam, American Samoa, and the Commonweal th of the Northern Mariana Islands. The term also includes Palau, 

until the Compact of Free Association 

is ratified. 

State Commission. The term State Commission means a State Commission on National and Community Service 

maintained by a State pursuant to sec­ tion 178 of the Act. Except when used 

in section 178, the term includes an alternative administrative entity for a State approved by the Corporation 

under that section to act in lieu of a State Commission. 

State educational agency (SEA). The 

term State educational agency has the same meaning given that term in sec­ tion 1471(23) of the Elementary and 

Secondary Education Act of 1965 (20 

u.s.c. 2891(23)). 

Student. The term student means an individual who is enrolled in an elementary or secondary school or institution of higher education on a fulltime or part-time basis. 

Subdivision of a State. The term subdivision of a State means an governmental unit within a State other than a unit with Statewide responsibilities. 

Subtitle C program. The term subtitle C 

program means an AmeriCorps program 

authorized and funded under subtitle C 

of the National and Community Service Act of 1990, as amended. (NCSA) (42 

U.S.C. 12501 et seq.) It does not include 

demonstration programs, or other 

AmeriCorps programs, funded under 

subtitle H of the NCSA. 

629 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Pt. 2515 

Target community. The term target 

community means the geographic community in which an AmeriCorps grant 

applicant intends to provide service to 

address an identified unmet human, 

educational, environmental, or public 

safety (including disaster-preparedness 

and response) need. 

U.S. Territory. The term U.S. Territory 

means the Virgin Islands, Guam, American Samoa, the Commonwealth of the 

Northern Mariana Islands, and Palau, 

until the Compact of Free Association 

with Palau is ratified. 

[59 FR 13783, Mar. 23, 1994, as amended at 63 

FR 18137, Apr. 14, 1998; 67 FR 45359, July 9, 

2002; 70 FR 39596, July 8, 2005; 72 FR 48581, 

Aug. 24, 2007; 73 FR 53759, Sept. 17, 2008; 74 FR 

46502, Sept. 10, 2009; 75 FR 51409, Aug. 20, 2010] 

PART 2513 [RESERVED] 

PART 2515-SERVICE-LEARNING 

PROGRAM PURPOSES 

AUTHORITY: 42 u.s.c. 12501 et seq. 

§ 2515.10 What are the service-learning 

programs of the Corporation for 

National and Community Service? 

(a) There are three service-learning 

programs: (1) School-based programs, 

described in part 2516 of this chapter. 

(2) Community-based programs, described in part 2517 of this chapter. 

(3) Higher education programs, described in part 2519 of this chapter. 

(b) Each program gives participants 

the opportunity to learn and develop 

their own capabilities through servicelearning, while addressing needs in the 

community. 

[59 FR 13786, Mar. 23, 1994] 

PART 2516-SCHOOL-BASED 

SERVICE-LEARNING PROGRAMS 

Subpart A-Eligibility To Apply 

Sec. 

2516.100 What is the purpose of school-based 

service-learning programs? 

2516.110 Who may apply for a direct grant 

from the Corporation? 

2516.120 Who may apply for funding a 

subgrant? 

45 CFR Ch. XXV (10-1-12 Edition) 

Subpart &-Use of Grant Funds 

2516.200 How may grant funds be used? 

Subpart C-Eligibilily To Participate 

2516.300 Who may participate in a schoolbased service-learning program? 

2516.310 May private school students participate? 

2516.320 Is a participant eligible to receive an AmeriCorps educational award? 

Subpart D-Application Contents 

2516.400 What must a State or Indian tribe 

include in an application for a grant? 

2516.410 What must a community-based en­ tity include in an application for a grant? 

2516.420 What must an LEA, local partnership, qualified organization or other eligible entity include in an application for 

a subgrant? 

Subpart E-Application Review 

2516.500 How does the Corporation review 

the merits of an application? 

2516.510 What happens if the Corporation rejects a State's application for an allotment grant? 

2516.520 How does a State, Indian tribe, or 

community-based entity review the mer­ its of an application? 

Subpart F-Distribution of Funds 

2516.600 How are funds for school-based 

service-learning programs distributed? 

Subpart G-Funding Requirements 

2516.700 What matching funds are required? 

2516.710 What are the limits on the use of 

funds? 

2516.720 What is the length of each type of 

grant? 

2516.730 May an applicant submit more than one application to the Corporation for 

the same project at the same time? 

Subpart H-Evaluation Requirements 

2516.800 What are the purposes of an evaluation? 

2516.810 What types of evaluations are grantees and subgrantees required to perform? 

2516.820 What types of internal evaluation 

activities are required of programs? 

2516.830 What types of activities are required of Corporation grantees to evaluate the effectiveness of their subgrantees? 

2516.840 By what standards will the Corporation evaluate individual Learn and Serve 

America programs? 

630 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2516.120 

2516.850 What will the Corporation do to 

evaluate the overall success of the service-learning program? 

2516.860 Will information on individual participants be kept confidential? 

AUTHORITY: 42 U.S.C. 12521-12529; 42 U.S.C. 

12645g. 

SOURCE: 59 FR 13786, Mar. 23, 1994, unless 

otherwise noted. 

Subpart A-Eligibility To Apply 

SOURCE: 74 FR 46502, Sept. 10, 2009, unless 

otherwise noted. 

§ 2516.100 What is the purpose of 

school-based service-learning programs? 

The purpose of school-based servicelearning programs is to promote serv­ ice-learning as a strategy to support 

high-quality service-learning projects 

that engage students in meeting community needs with demonstrable results, while enhancing students' aca­ demic and civic learning; and support 

efforts to build institutional capacity, 

including the training of educators, 

and to strengthen the service infrastructure to expand service opportunities. 

§2516.110 Who may apply for a direct 

grant from the Corporation? 

(a) The following entities may apply 

for a direct grant from the Corporation: 

(1) A State, through a State educational agency (SEA). For purposes of 

this part "State" means one of the 50 

States, the District of Columbia, the 

Commonwealth of Puerto Rico, and, 

except for the purpose of § 2516.600(b), 

U.S. Territories; "SEA" means a "State educational agency" as defined 

in § 2510.20 of this chapter or an SEAdesignated statewide entity (which 

may be a community-based entity) 

with demonstrated experience in supporting or implementing service-learning programs. 

(2) An Indian Tribe. 

(3) For activities in a nonparticipating State or Indian Tribe, a commu­ nity-based entity as defined in §2510.20. 

(b) The types of grants for which 

each entity is eligible are described in 

§2516.200. 

§ 2516.120 Who may apply for funding a subgrant? 

Entities that may apply for a 

subgrant from a State, Indian Tribe, or 

community-based entity are: 

(a) A qualified organization, Indian 

Tribe, Territory, local educational 

agency, for-profit business, private elementary school or secondary school, or institution of higher education for a 

grant from a State for planning and 

building the capacity of school-based 

service-learning programs. 

(b) A local partnership, for a grant 

from a State to implement, operate, or 

expand a school-based service learning 

program. 

(1) The local partnership must include an LEA and one or more commu­ nity partners. The local partnership 

may include a private for-profit business, or private elementary or sec­ ondary school, or an Indian Tribe (except that an Indian Tribe distributing 

funds to a project under this paragraph 

is not eligible to be part of the partnership operating that project). 

(2) The community partners must include a public or private nonprofit or­ ganization that has demonstrated expertise in the provision of services to 

meet educational, public safety, 

human, or environmental needs; will 

make projects available for participants, who must be students; and was in existence at least one year before 

the date on which the organization 

submitted an application under this 

part. 

(c) An LEA or Indian Tribe for planning school-based service-learning programs involving paying, recruiting, 

and supporting service-learning coordinators. 

(d) An LEA, local partnership, or 

public or private nonprofit organization for a grant from a State to implement, operate, or expand an adult volunteer program. The local partnership 

must include an LEA and one or more public or private nonprofit organizations, other educational agencies, or an 

Indian Tribe (except that an Indian 

Tribe distributing funds under this 

paragraph is not eligible to be a recipient of those funds) that coordinate and 

operate projects for participants who 

must be students. 

631 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2516.200 

(e) An eligible entity for a grant from 

a State or Indian Tribe to carry out 

civic engagement activities. 

Subpart B-Use of Grant Funds 

§ 2516.200 How may grant funds be 

used? 

Funds under a school-based service 

learning grant may be used for the purposes described in this section. 

(a) Planning and capacity-building. (1) 

A State, Indian Tribe, or communitybased entity may use funds to pay for 

planning and building its capacity to 

implement school-based service-learning programs. These entities may use funds either directly or through subgrants or contracts with qualified organizations. 

(2) Authorized activities include the 

following: 

(i) Providing training for teachers, 

supervisors, personnel from commu­ nity-based agencies (particularly with 

regard to the utilization of participants) and trainers, conducted by 

qualified individuals or organizations 

experienced in service-learning. 

(ii) Developing service-learning curricula, consistent with State or local 

academic content standards, to be integrated into academic programs, including the age-appropriate learning com­ ponents for students to analyze and 

apply their service experiences. 

(iii) Forming local partnerships described in §2516.120 to develop schoolbased service-learning programs in ac­ cordance with this part. 

(iv) Devising appropriate methods for 

research and evaluation of the educational value of service-learning and 

the effect of service-learning activities on communities. 

(v) Establishing effective outreach 

and dissemination of information to ensure the broadest possible involvement of community-based agencies 

with demonstrated effectiveness in 

working with school-age youth in their 

communities. 

(vi) Establishing effective outreach 

and dissemination of information to ensure the broadest possible participation of schools throughout the State, 

Territory or serving the Indian Tribe 

involved, with particular attention to 

schools not making adequate yearly 

45 CFR Ch. XXV (10-1-12 Edition) 

progress for two or more consecutive 

years under section 1111 of the Elementary and Secondary Education Act of 

1965 (20 U.S.C. 6301 et seq.). 

(b) Implementing, operating, and expanding school-based programs. (1) A 

State, Indian Tribe or communitybased entity may use funds to make 

subgrants to local partnerships described in §2516.120(b) to implement, 

operate, or expand school-based serv­ ice-learning programs. 

(2) If a State does not submit an application that meets the requirements 

for an allotment grant under §2516.400, 

the Corporation may use the allotment 

to fund applications from communitybased entities for programs in that 

State. 

(3) Authorized activities include paying the costs of the recruitment, training, supervision, placement, salaries 

and benefits of service-learning coordinators. 

(c) Planning programs. (1) A State 

may use funds to make subgrants to 

LEAs for planning school-based serv­ ice-learning programs. 

(2) If a State does not submit an application that meets the requirements 

for an allotment grant under §2516.400, 

the Corporation may use the allotment 

to fund applications from communitybased entities for planning programs in 

that State. 

(3) Authorized activities include paying the costs of- (i) The salaries and benefits of serv­ ice-learning coordinators as defined in 

§ 2510.20 of this chapter; and 

(ii) The recruitment, training, supervision, and placement of service-learning coordinators who may be, but are not required to be, participants in an AmeriCorps program described in parts 

2520 through 2524 of this chapter, or who receive AmeriCorps education 

awards, or who may be participants in a project under section 201 of the Domestic Volunteer Service Act of 1973 

(42 U.S.C. 5001), or who may participate 

in a Youthbuild program under section 

173A of the Workforce Investment Act 

of 1998 (29 U.S.C. 2918a). 

(d) Adult volunteer programs. (1) A 

State, Indian Tribe, or communitybased entity may use funds to make 

subgrants to local partnerships described in §2516.120(c) to implement, 

632 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2516.400 

operate, or expand school-based programs involving adult volunteers to 

utilize service-learning to improve the 

education of students. 

(2) If a State does not submit an application that meets the requirements 

for an allotment grant under §2516.400, 

the Corporation may use the allotment 

to fund applications from those local 

partnerships for adult volunteer programs in that State. 

(e) Planning by Indian Tribes and U.S. 

Territories. If the Corporation makes a grant to an Indian Tribe or a U.S. Territory to plan school-based servicelearning programs, the grantee may use the funds for that purpose. 

(f) Civic engagement programs. A 

State, Indian Tribe, Territory or qualified organization may use funds to support service-learning civic engagement 

programs that promote a better understanding of: 

(1) The principles of the Constitution, 

the heroes of United States history (including military history), and the 

meaning of the Pledge of Allegiance; 

(2) How the Nation's government 

functions; and 

(3) The importance of service in the 

Nation's character. 

[74 FR 46503, Sept. 10, 2009] 

Subpart C-Eligibility To 

Participate 

§ 2516.300 Who may participate in a school-based service-learning program? 

Students who are enrolled in elementary or secondary schools on a fulltime or part-time basis may participate in school-based programs. 

§ 2516.310 May private school students 

participate? 

(a) Yes. To the extent consistent 

with the number of students in the 

State or Indian tribe or in the school 

district of the LEA involved who are enrolled in private nonprofit elementary or secondary schools, the State, 

Indian tribe, or LEA must (after con­ sultation with appropriate private 

school representatives) make provision- (1) For the inclusion of services and 

arrangements for the benefit of those 

students so as to allow for the equitable participation of the students in 

the programs under this part; and 

(2) For the training of the teachers of 

those students so as to allow for the 

equitable participation of those teach­ ers in the programs under this part. 

(b) If a State, Indian tribe, or LEA is 

prohibited by law from providing for 

the participation of students or teach­ ers from private nonprofit schools as required by paragraph (a) of this sec­ tion, or if the Corporation determines 

that a State, Indian tribe, or LEA substantially fails or is unwilling to provide for their participation on an equitable basis, the Corporation will waive 

those requirements and arrange for the 

provision of services to the students 

and teachers. 

[59 FR 13786, Mar. 23, 1994, as amended at 74 

FR 46504, Sept. 10, 2009] 

§ 2516.320 Is a participant eligible to 

receive an AmeriCorps educational 

award? 

No. However, service-learning coordinators who are approved AmeriCorps 

positions are eligible for AmeriCorps 

educational awards. 

Subpart D-Application Contents 

§ 2516.400 What must a State or Indian 

tribe include in an application for a grant? 

In order to apply for a grant from the 

Corporation under this part, a State 

(SEA) or Indian tribe must submit the 

following: (a) A three-year strategic 

plan for promoting service-learning 

through programs under this part, or a revision of a previously approved threeyear strategic plan. The application of a SEA must include a description of 

how the SEA will coordinate its serv­ ice-learning plan with the State Plan 

under § 2550.B0(a) of this chapter and 

with other federally-assisted activities. 

(b) A proposal containing the specific 

program, budget, and other information specified by the Corporation in the 

grant application package. 

(c) Assurances that the applicant 

will- (1) Keep such records and provide 

such information to the Corporation 

with respect to the programs as may be 

required for fiscal audits and program 

evaluation; and 

633 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2516.410 

(2) Comply with the criminal history 

check requirements for all grant-funded staff employed after October 1, 2009, 

in accordance with 45 CFR 2540.200--207, as well as the nonduplication, non­ displacement, and grievance procedure 

requirements of Part 2540. 

[59 FR 13786, Mar. 23, 1994, as amended at 73 

FR 53759, Sept. 17, 2008; 74 FR 46504, Sept. 10, 

2009] 

§ 2516.410 What must a communitybased entity include in an application for a grant? 

In order to apply to the Corporation 

for a grant, a community-based entity 

must submit the following: 

(a) A detailed description of the proposed program goals and activities. 

The application of a community-based 

entity must include- (!) A description of how the applicant 

will coordinate its activities with the 

State Plan under §2513 of this chapter, 

including a description of plans to 

meet and consult with the State Commission, if possible, and to provide a copy of the program application to the 

State Commission and with other Federally-assisted activities. 

(b) The specific program, budget, and 

other information specified by the Corporation in the grant application package. 

(c) Assurances that the applicant 

will- (1) Keep such records and provide 

such information to the Corporation 

with respect to the program as may be 

required for fiscal audits and program 

evaluations; 

(2) Prior to the placement of a participant, consult with the appropriate 

local labor organization, if any, representing employees in the area who 

are engaged in the same or similar 

work as that proposed to be carried out 

by the program, to prevent the displacement and protect the rights of 

those employees; 

(3) Develop an age-appropriate learning component for participants in the 

program that includes a chance for participants to analyze and apply their 

service experiences; and 

(4) Comply with the criminal history 

check requirements for all grant-funded staff employed after October 1, 2009, 

in accordance with 45 CFR 2540.200--207, 

45 CFR Ch. XXV (10-1-12 Edition) 

as well as the nonduplication, non­ displacement, and grievance procedure 

requirements of Part 2540. 

[74 FR 46504, Sept. 10, 2009] 

§ 2516.420 What must an LEA, local 

partnership, qualified organization or other eligible entity include in an application for a subgrant? 

In order to apply for a subgrant from a State, Indian Tribe, or communitybased entity under this part, an applicant must include the information required by the Corporation grantee. 

[74 FR 46504, Sept. 10, 2009] 

Subpart E-Application Review 

§ 2516.500 How does the Corporation 

review the merits of an application? 

(a) In reviewing the merits of an application submitted to the Corporation 

under this part, the Corporation evaluates the quality, innovation, 

replicability, and sustainability of the 

proposal on the basis of the following 

criteria: (1) Quality, as indicated by 

the extent to which-

(i) The program will provide productive meaningful, educational experiences that incorporate service-learning 

methods; 

(ii) The program will meet community needs and involve individuals from 

diverse backgrounds (including economically disadvantaged youth) who 

will serve together to explore the root 

causes of community problems; 

(iii) The principal leaders of the program will be well qualified for their re­ sponsibilities; 

(iv) The program has sound plans and 

processes for training, technical assistance, superv1s10n, quality control, 

evaluation, administration, and other 

key activities; and 

(v) The program will advance knowledge about how to do effective and innovative community service and service-learning and enhance the broader 

elementary and secondary education 

field. 

(2) Replicability, as indicated by the 

extent to which the program will assist 

others in learning from experience and 

replicating the approach of the program. 

634 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2516.600 

(3) Sustainability, as indicated by the 

extent to which-

(i) An SEA, Indian tribe or commu­ nity-based entity applicant demonstrates the ability and willingness to 

coordinate its activities with the State 

Plan under § 2550.B0(a) of this chapter 

and with other federally assisted ac­ tivities; 

(ii) The program will foster collaborative efforts among local educational 

agencies, local government agencies, 

community based agencies, businesses, 

and State agencies; 

(iii) The program will enjoy strong, 

broad-based community support; and 

(iv) There is evidence that financial 

resources will be available to continue 

the program after the expiration of the 

grant. 

(b) The Corporation also gives priority to proposals that-

(!) Involve participants in the design 

and operation of the program; 

(2) Reflect the greatest need for as­ sistance, such as programs targeting 

low-income areas or serving economically disadvantaged youth: 

(3) Involve students from public and 

private schools serving together; 

(4) Involve students of different ages, 

races, genders, ethnicities, abilities 

and disabilities, or economic backgrounds, serving together; 

(5) Are integrated into the academic 

program of the participants; 

(6) Best represent the potential of 

service-learning as a vehicle for education reform and school-to-work transition; 

(7) Develop civic responsibility and 

leadership skills and qualities in participants; 

(8) Demonstrate the ability to 

achieve the goals of this part on the 

basis of the proposal's quality, innovation, replicability, and sustainability; 

or 

(9) Address any other priority established by the Corporation for a particular period. 

(c) In reviewing applications submitted by Indian tribes and U.S. Territories, the Corporation-

(!) May decide to approve only planning of school-based service-learning 

programs; and 

(2) Will set the amounts of grants in 

accordance with the respective needs of 

applicants. 

[59 FR 13786, Mar. 23, 1994, as amended at 73 

FR 53759, Sept. 17, 2008; 74 FR 46504, Sept. 10, 

2009] 

§ 2516.510 What happens if the Corporation rejects a State's application for an allotment grant? 

If the Corporation rejects a State's 

application for an allotment grant 

under §2516.600(b)(2), the Corporation 

will- (a) Promptly notify the State of the reasons for the rejection; 

(b) Provide the State with a reason­ able opportunity to revise and resubmit the application; 

(c) Provide technical assistance, if 

necessary; and 

(d) Promptly reconsider the resubmitted application and make a decision. 

§ 2516.520 How does a State, Indian 

tribe, or community-based entity re­ view the merits of an application? 

In reviewing the merits of an application for a subgrant under this part, a Corporation grantee must use the criteria and priori ties in § 2516.500. 

[59 FR 13786, Mar. 23, 1994, as amended at 74 

FR 46504, Sept. 10, 2009] 

Subpart F-Distribution of Funds 

§ 2516.600 How are funds for schoolbased service-learning programs 

distributed? 

(a) Of the amounts appropriated to 

carry out this part for any fiscal year, 

the Corporation will reserve not less 

than two percent and not more than 

three percent for grants to Indian 

Tribes and U.S. Territories to be allotted in accordance with their respective 

needs. 

(b) The Corporation will use the re­ mainder of the funds appropriated as follows: 

(1) Allotments to States. 

(i) From 50 percent of the remainder, 

the Corporation will allot to each 

State an amount that bears the same ratio to 50 percent of the remainder as the number of school-age youth in the 

State bears to the total number of 

school-age youth of all States. 

635 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2516.700 

(ii) From 50 percent of the remainder, 

the Corporation will allot to each 

State an amount that bears the same ratio to 50 percent of the remainder as the allocation to the State for the previous fiscal year under Chapter 1 of 

Title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 

6301 et seq.) bears to the allocations to 

all States. 

(iii) Notwithstanding other provisions of paragraph (b)(l) of this section, 

for any fiscal year for which amounts 

appropriated for Part I of Subtitle B of 

Title I of the National and Community 

Service Act of 1990 (42 U.S.C. 12521 et 

seq.) exceed $50,000,000, the minimum 

allotment to each State under this 

paragraph (b)(l) will be $75,000. 

(2) For the purpose of paragraph (b) 

of this section, "State" means one of 

the 50 States, the District of Columbia, 

and the Commonwealth of Puerto Rico. 

(c) If a State or Indian Tribe does not 

submit an application that meets the 

requirements for approval under this 

part, the Corporation (after making 

any grants to community-based entities for activities in nonparticipating 

States) may use its allotment for 

States and Indian Tribes with approved 

applications, as the Corporation determines appropriate. 

[74 FR 46504, Sept. 10, 2009] 

Subpart G-Funding Requirements 

§2516.700 What matching funds are re- quired? 

(a) The Corporation share of the cost 

of carrying out a program funded under 

this part may not exceed- (1) Eighty percent of the total cost 

for the first year for which the program receives assistance; 

(2) Sixty-five percent of the total 

cost for the second year; and 

(3) Fifty percent of the total cost for 

the third year and any subsequent 

year. 

(b) In providing for the remaining 

share of the cost of carrying out a program, each recipient of assistance must 

provide for that share through a payment in cash or in-kind, fairly evaluated, including facilities, equipment, or services, and may provide for that 

share through State sources, local 

sources, or Federal sources (other than 

45 CFR Ch. XXV (10-1-12 Edition) 

funds made available under the na­ tional service laws or title I of the Elementary and Secondary Act of 1965 (20 

U.S.C. 6311 et seq.)). 

(c) The Corporation may waive the 

requirements of paragraph (b) of this 

section in whole or in part with respect 

to any program in any fiscal year if the 

Corporation determines that the waiv­ er would be equitable due to a lack of 

available financial resources at the 

local level. 

[74 FR 46504, Sept. 10, 2009] 

§2516.710 What are the limits on the use of funds? 

The following limits apply to funds 

available under this part: 

(a) (1) Not more than six percent of 

the grant funds provided under this 

part for any fiscal year may be used to 

pay for administrative costs, as defined 

in §2510.20 of this chapter. 

(2) The distribution of administrative 

costs between the grant and any 

subgrant is subject to the approval of 

the Corporation. 

(3) In applying the limitation on administrative costs, the Corporation 

may approve one of the following 

methods in the award document: 

(i) Limit the amount or rate of indirect costs that may be paid with Corporation funds under a grant or subgrant to six percent of total Corporation funds expended, provided 

that- (A) Organizations that have an established indirect cost rate for Federal 

awards will be limited to this method; 

and 

(B) Unreimbursed indirect costs may 

be applied to meeting operational 

matching requirements under the Corporation's award; 

(ii) Specify that a fixed rate of six 

percent or less (not subject to supporting cost documentation) of total 

Corporation funds expended may be 

used to pay for administrative costs, 

provided that the fixed rate is in conjunction with an overall 15 percent administrative cost factor to be used for 

organizations that do not have established indirect cost rates; or (iii) Use such other method that the 

Corporation determines in writing is 

consistent with 0MB guidance and 

other applicable requirements, helps 

636 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2516.830 

minimize the burden on grantees or subgrantees, and is beneficial to grant­ ees or subgrantees and the Federal 

Government. 

(b) Funds made available under this 

part may not be used to pay any stipend, allowance, or other financial support to any participant in a servicelearning program under this part ex­ cept reimbursement for transportation, 

meals, and other reasonable out-ofpocket expenses directly related to 

participation in a program assisted 

under this part. 

[74 FR 46505, Sept. 10, 2009] 

§2516.720 What is the length of each 

type of grant? 

(a) One year is the maximum length 

of-

(1) A planning grant under §2516.200 

(a), (c) or (e); and 

(2) A grant to a local partnership for 

activities in a nonparticipating State 

under §2516.200 (b)(2) and (d)(2). 

(b) All other grants are for a period 

of up to three years, subject to satisfactory performance and annual appropriations. 

§2516.730 May an applicant submit more than one application to the 

Corporation for the same project at 

the same time? 

No. The Corporation will reject an application for a project if an application for funding or educational awards 

for the same project is already pending 

before the Corporation. 

Subpart H-Evaluation 

Requirements 

§ 2516.800 What are the purposes of an evaluation? 

Every evaluation effort should serve to improve program quality, examine 

benefits of service, or fulfill legislative 

requirements. 

§ 2516.810 What types of evaluations are grantees and subgrantees re­ quired to perform? 

All grantees and subgrantees are re­ quired to perform internal evaluations 

which are ongoing efforts to assess performance and improve quality. Grant­ ees and subgrantees may, but are not 

required to, arrange for independent 

evaluations which are assessments of 

program effectiveness by individuals 

who are not directly involved in the administration of the program. The cost 

of independent evaluations is allowable. 

§ 2516.820 What types of internal evaluation activities are required of 

programs? 

Programs are required to: (a) Continuously assess management effectiveness, the quality of services provided, and the satisfaction of both participants and service recipients. Internal evaluations should seek frequent 

feedback and provide for quick correc­ tion of weakness. The Corporation en­ courages programs to use internal evaluation methods, such as community 

advisory councils, participant advisory 

councils, peer reviews, quality control 

inspections, and service recipient and 

participant surveys. 

(b) Track progress toward pre-established objectives. Objectives must be 

established by programs and approved 

by the Corporation. Programs must 

submit to the Corporation (or the Corporation grantee as applicable) periodic performance reports. 

(c) Collect and submit to the Corporation (through the Corporation 

grantee as applicable) the following 

data: (1) The total number of participants in each program and basic demographic characteristics of the participants including sex, age, economic 

background, education level, ethnic 

group, disability classification, and geographic region. 

(2) Other information as required by 

the Corporation. 

(d) Cooperate fully with all Corporation evaluation activities. 

§ 2516.830 What types of activities are required of Corporation grantees to 

evaluate the effectiveness of their 

subgrantees? 

A Corporation grantee that makes 

subgrants must do the following: (a) 

Ensure that subgrantees comply with 

the requirements of §2516.840. 

(b) Track program performance in 

terms of progress toward pre-established objectives; ensure that correc­ tive action is taken when necessary; 

and submit to the Corporation periodic 

performance reports. 

637 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2516.840 

(c) Collect from programs and submit 

to the Corporation the descriptive information required in §2516.820(c)(l). 

(d) Cooperate fully with all Corporation evaluation activities. 

§ 2516.840 Bf what standards will the 

Corporation evaluate individual 

Learn and Serve America programs? 

The Corporation will evaluate programs based on the following: (a) The 

extent to which the program meets the 

objectives established and agreed to by 

the grantee and the Corporation before 

the grant award. 

(b) The extent to which the program 

is cost-effective. 

(c) Other criteria as determined and 

published by the Corporation. 

§ 2516.850 What will the Corporation 

do to evaluate the overall success of 

the service-learning program? 

(a) The Corporation will conduct 

independent evaluations. These evaluations will consider the opinions of participants and members of the communities where services are delivered. If 

appropriate, these evaluations will 

compare participants with individuals 

who have not participated in servicelearning programs. These evaluations 

will- (1) Study the extent to which servicelearning programs as a whole affect the 

involved communities; 

(2) Determine the extent to which 

service-learning programs as a whole 

increase academic learning of participants, enhance civic education, and 

foster continued community involvement; and 

(3) Determine the effectiveness of different program models. 

(b) The Corporation will also determine by June 30, 1995, whether outcomes of service-learning programs are defined and measured appropriately, 

and the implications of the results 

from such a study for authorized funding levels. 

§ 2516.860 Will information on individual participants be kept con­ fidential? 

(a) Yes. The Corporation will maintain the confidentiality of information 

regarding individual participants that 

is acquired for the purpose of the eval45 CFR Ch. XXV (10-1-12 Edition) 

uations described in §2516.840. The Corporation will disclose individual participant information only with the prior 

written consent of the participant. 

However, the Corporation may disclose 

aggregate participant information. 

(b) Grantees and subgrantees under 

this part must comply with the provisions of paragraph (a) of this section. 

PART 2517-COMMUNITY-BASED 

SERVICE-LEARNING PROGRAMS 

Subpart A-Eligibility To Apply 

Sec. 

2517.100 Who may apply for a direct grant 

from the Corporation? 

2517.110 Who may apply for a subgrant from a Corporation grantee? 

Subpart B-Use of Grant Funds 

2517.200 How may grant funds be used? 

Subpart C-Eligibility To Participate 

2517.300 Who may participate in a commu­ nity-based service-learning program? 

Subpart D-Application Contents 

2517.400 What must a State Commission or grantmaking entity include in an application for a grant? 

2517.410 What must a qualified organization 

include in an application for a grant or a subgrant? 

Subpart E-Application Review 

2517.500 How is an application reviewed? 

Subpart F-Distribution of Funds 

2517.600 How are funds for community-based 

service-learning programs distributed? 

Subpart G-Funding Requirements 

2517.700 Are matching funds required? 

2517.710 Are there limits on the use of 

funds? 

2517.720 What is the length of a grant? 

2517.730 May an applicant submit more than one application to the Corporation for 

the same project at the same time? 

Subpart H-Evaluation Requirements 

2517.800 What are the evaluation requirements for community-based programs? 

AUTHORITY: 42 U.S.C. 12541-12547. 

SOURCE: 59 FR 13790, Mar. 23, 1994, unless 

otherwise noted. 

638 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2517.400 

Subpart A-Eligibility To Apply 

§2517.100 Who may apply for a direct 

grant from the Corporation? 

(a) The following entities may apply 

for a direct grant from the Corporation: (1) A State Commission established under part 2550 of this chapter. 

(2) A grantmaking entity as defined 

in § 2510.20 of this chapter. 

(3) A qualified organization as defined in § 2515.20 of this chapter. 

(b) The types of grants for which 

each entity is eligible are described in 

§2517.200. 

§2517.110 Who may apply for a subgrant from a Corporation grantee? 

Entities that may apply for a 

subgrant from a State Commission or grantmaking entity are qualified organizations that have entered into a local 

partnership with one or more---

(a) Local educational agencies 

(LEAs); 

(b) Other qualified organizations; or 

(c) Both. 

Subpart B-Use of Grant Funds 

§2517.200 How may grant funds be 

used? 

Funds under a community-based 

Learn and Serve grant may be used for 

the purposes described in this section. 

(a) A State Commission or 

grantmaking entity may use funds-

(!) To make subgrants to qualified 

organizations described in § 2517.110 to 

implement, operate, expand, or replicate a community-based service program that provides direct and demonstrable educational, public safety, 

human, or environmental service by 

participants, who must be school-age 

youth; and 

(2) To provide training and technical 

assistance to qualified organizations. 

(b) (1) A qualified organization may 

use funds under a direct grant or a subgrant to implement, operate, expand, or replicate a community-based 

service program. 

(2) If a qualified organization receives a direct grant, its program must 

be carried out at multiple sites or be 

particularly innovative. 

Subpart C-Eligibility To 

Participate 

§2517.300 Who may participate in a community-based service-learning 

program? 

School-age youth as defined in 

§2510.20 of this chapter may participate 

in a community-based program. 

Subpart D-Application Contents 

§2517.400 What must a State Commission or grantmaking entity include 

in an application for a grant? 

(a) In order to apply for a grant from 

the Corporation under this part, a 

State Commission or a grantmaking 

entity must submit the following: (1) A 

three-year plan for promoting servicelearning through programs under this 

part. The plan must describe the types 

of community-based program models 

proposed to be carried out during the 

first year. 

(2) A proposal containing the specific 

program, budget, and other information specified by the Corporation in the 

grant application package. 

(3) A description of how the applicant 

will coordinate its activities with the 

State Plan under § 2550.B0(a) of this 

chapter and with other federally-assisted activities, including a description of plans to meet and consult with 

the State Commission, if possible, and 

to provide a copy of the program application to the State Commission. 

(4) Assurances that the applicant 

will-

(i) Keep such records and provide 

such information to the Corporation 

with respect to the programs as may be 

required for fiscal audits and program 

evaluation; 

(ii) Comply with the nonduplication, 

nondisplacement, and grievance procedure requirements of part 2540 of this 

chapter; and 

(iii) Ensure that, prior to placing a 

participant in a program, the entity 

carrying out the program will consult 

with the appropriate local labor organization, if any, representing employees in the area in which the program 

will be carried out that are engaged in 

the same or similar work as the work 

639 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2517.410 

proposed to be carried out by the program, to prevent the displacement of 

those employees. 

(b) In addition, a grantmaking entity 

must submit information demonstrating that the entity will make 

grants for a program-

(1) To carry out activities in two or more States, under circumstances in 

which those activities can be carried 

out more efficiently through one program than through two or more programs; and 

(2) To carry out the same activities, 

such as training activities or activities 

related to exchanging information on service experiences, through each of 

the projects assisted through the program. 

[59 FR 13790, Mar. 23, 1994, as amended at 73 

FR 53759, Sept. 17, 2008] 

§2517.410 What must a qualified organization include in an application 

for a grant or a subgrant? 

(a) In order to apply to the Corporation for a direct grant, a qualified organization must submit the following: (1) 

A plan describing the goals and activities of the proposed program; 

(2) A proposal containing the specific 

program, budget, and other information specified by the Corporation in the 

grant application package; and 

(3) Assurances that the applicant 

will- (i) Keep such records and provide 

such information to the Corporation 

with respect to the program as may be 

required for fiscal audits and program 

evaluation; 

(ii) Comply with the nonduplication, 

nondisplacement, and grievance procedure requirements of part 2540 of this 

chapter; and 

(iii) Prior to placing a participant in 

the program, consult with the appropriate local labor organization, if any, 

representing employees in the area in 

which the program will be carried out 

who are engaged in the same or similar 

work as the work proposed to be car­ ried out by the program, to prevent the 

displacement of those employees. 

(b) In order to apply to a State Commission or a grantmaking entity for a 

subgrant, a qualified organization must 

submit the following: (1) A plan de45 CFR Ch. XXV (10-1-12 Edition) 

scribing the goals and activities of the 

proposed program; and 

(2) Such specific program, budget, 

and other information as the Commission or entity reasonably requires. 

Subpart E-Application Review 

§2517.500 How is an application reviewed? 

In reviewing an application for a 

grant or a subgrant, the Corporation, a 

State Commission, or a grantmaking 

entity will apply the following criteria: 

(a) The quality of the program proposed. 

(b) The innovation of, and feasibility 

of replicating, the program. 

(c) The sustainability of the program, 

based on-

(1) Strong and broad-based community support; 

(2) Multiple funding sources or private funding; and 

(3) Coordination with the State Plan 

under § 2550.BO(a) of this chapter and 

other federally-assisted activities. 

(d) The quality of the leadership of 

the program, past performance of the 

program, and the extent to which the 

program builds on existing programs. 

(e) The applicant's efforts--

(!) To recruit participants from 

among residents of the communities in 

which projects would be conducted; 

(2) To ensure that the projects are 

open to participants of different ages, 

races, genders, ethnicities, abilities 

and disabilities, and economic backgrounds; and 

(3) To involve participants and community residents in the design, leadership, and operation of the program. 

(f) The extent to which projects 

would be located in areas that are-

(1) Empowerment zones, redevelopment areas, or other areas with high 

concentrations of low-income people; 

or 

(2) Environmentally distressed. 

[59 FR 13790, Mar. 23, 1994, as amended at 73 

FR 53759, Sept. 17, 2008] 

640 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2517.710 

Subpart F-Distribution of Funds 

§2517.600 How are funds for commu­ nity-based service-learning programs distributed? 

All funds are distributed by the Corporation through competitive grants. 

Subpart G-Funding Requirements 

§2517.700 Are matching funds re­ quired? 

(a) Yes. The Corporation share of the 

cost of carrying out a program funded 

under this part may not exceed-

(!) Ninety percent of the total cost 

for the first year for which the program receives assistance; 

(2) Eighty percent of the total cost 

for the second year; 

(3) Seventy percent of the total cost 

for the third year; and 

(4) Fifty percent of the total cost for 

the fourth year and any subsequent 

year. 

(b) In providing for the remaining 

share of the cost of carrying out a program, each recipient of assistance must 

provide for that share through a payment in cash or in kind, fairly evaluated, including facilities, equipment, or services, and may provide for that 

share through State sources, local 

sources, or Federal sources (other than 

funds made available under the na­ tional service laws). 

(c) However, the Corporation may 

waive the requirements of paragraph 

(b) of this section in whole or in part 

with respect to any program in any fiscal year if the Corporation determines 

that the waiver would be equitable due 

to lack of available financial resources at the local level. 

§2517.710 Are there limits on the use of funds? 

Yes. The following limits apply to 

funds available under this part: 

(a) (1) Not more than five percent of 

the grant funds provided under this 

part for any fiscal year may be used to 

pay for administrative costs, as defined 

in § 2510.20 of this chapter. 

(2) The distribution of administrative 

costs between the grant and any 

subgrant will be subject to the approval of the Corporation. 

(3) In applying the limitation on administrative costs the Corporation will 

approve one of the following methods 

in the award document: 

(i) Limit the amount or rate of indirect costs that may be paid with Corporation funds under a grant or subgrant to five percent of total Corporation funds expended, provided 

that-

(A) Organizations that have an established indirect cost rate for Federal 

awards will be limited to this method; 

and 

(B) Unreimbursed indirect costs may 

be applied to meeting operational 

matching requirements under the Corporation's award; 

(ii) Specify that a fixed rate of five 

percent or less (not subject to supporting cost documentation) of total 

Corporation funds expended may be 

used to pay for administrative costs, 

provided that the fixed rate is in conjunction with an overall 15 percent administrative cost factor to be used for 

organizations that do not have established indirect cost rates; or 

(iii) Utilize such other method that 

the Corporation determines in writing 

is consistent with 0MB guidance and 

other applicable requirements, helps 

minimize the burden on grantees or subgrantees, and is beneficial to grantees or subgrantees and the Federal 

Government. 

(b) (1) An SEA or Indian tribe must 

spend between ten and 15 percent of the 

grant to build capacity through training, technical assistance, curriculum 

development, and coordination activities. 

(2) The Corporation may waive this 

requirement in order to permit an SEA 

or a tribe to use between ten percent 

and 20 percent of the grant funds to 

build capacity. To be eligible to receive 

the waiver, the SEA or tribe must submit an application to the Corporation. 

(c) Funds made available under this 

part may not be used to pay any stipend, allowance, or other financial support to any participant in a servicelearning program under this part ex­ cept reimbursement for transportation, 

meals, and other reasonable out-ofpocket expenses directly related to 

641 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2517.720 

participation in a program assisted 

under this part. 

[63 FR 18137, Apr. 14, 1998] 

§2517.720 What is the length of a grant? 

A grant under this part is for a period 

of up to three years, subject to satisfactory performance and annual appropriations. 

§2517.730 May an applicant submit more than one application to the 

Corporation for the same project at 

the same time? 

No. The Corporation will reject an application for a project if an application for funding or educational awards 

for the same project is already pending 

before the Corporation. 

Subpart H-Evaluation 

Requirements 

§2517.800 What are the evaluation re­ quirements for community-based 

programs? 

The evaluation requirements for re­ cipients of grants and subgrants under 

part 2516 of this chapter, relating to 

school-based service-learning programs, apply to recipients under this 

part. 

PART 2518-SERVICE-LEARNING 

CLEARINGHOUSE 

Sec. 

2518.100 What is the purpose of a ServiceLearning Clearinghouse? 

2518.110 What are the functions of a ServiceLearning Clearinghouse? 

AUTHORITY: 42 U.S.C. 126530. 

§ 2518.100 What is the purpose of a Service-Learning Clearinghouse? 

The Corporation will provide financial assistance, from funds appropriated to carry out the activities listed under parts 2531 through 2534 of this 

chapter, to public or private nonprofit 

organizations that have extensive experience with service-learning, including use of adult volunteers to foster serv­ ice-learning, to establish a clearinghouse, which will carry out activities, 

either directly or by arrangement with 

another such organization, with re45 CFR Ch. XXV (10-1-12 Edition) 

spect to information about servicelearning. 

[59 FR 13792, Mar. 23, 1994, as amended at 75 

FR 51409, Aug. 20, 2010] 

§2518.110 What are the functions of a Service-Learning Clearinghouse? 

An organization that receives assistance from funds appropriated to carry 

out the activities listed under parts 

2531 through 2534 of this chapter may-

(a) Assist entities carrying out State 

or local service-learning programs with 

needs assessments and planning; 

(b) Conduct research and evaluations 

concerning service-learning; 

(c)(l) Provide leadership development 

and training to State and local servicelearning program administrators, supervisors, project sponsors, and participants; and 

(2) Provide training to persons who 

can provide the leadership development 

and training described in paragraph 

(c)(l) of this section; 

(d) Facilitate communication among 

entities carrying out service-learning 

programs and participants in such programs; 

(e) Provide information, curriculum 

materials, and technical assistance relating to planning and operation of 

service-learning programs, to States 

and local entities eligible to receive financial assistance under this title; 

(f) Provide information regarding 

methods to make service-learning programs accessible to individuals with 

disabilities; 

(g)(l) Gather and disseminate information on successful service-learning 

programs, components of such successful programs, innovative youth skills 

curricula related to service-learning, 

and service-learning projects; and 

(2) Coordinate the activities of the 

Clearinghouse with appropriate entities to avoid duplication of effort; 

(h) Make recommendations to State 

and local entities on quality controls 

to improve the quality of service-learning programs; 

(i) Assist organizations in recruiting, 

screening, and placing service-learning 

coordinators;and 

642 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2519.200 

(j) Carry out such other activities as 

the Chief Executive Officer determines 

to be appropriate. 

[59 FR 13792, Mar. 23, 1994. as amended at 75 

FR 51409, Aug. 20, 2010] 

PART 2519-HIGHER EDUCATION 

INNOVATIVE PROGRAMS FOR 

COMMUNITY SERVICE 

Subpart A-Purpose and Eligibility To Apply 

Sec. 

2519.100 What is the purpose of the Higher 

Education programs? 

2519.110 Who may apply for a grant? 

2519.120 What is the Federal Work-Study requirement? 

Subpart &-Use of Grant Funds 

2519.200 How may grant funds be used? 

Subpart C-Participant Eligibility and 

Benefits 

2519.300 Who may participate in a Higher 

Education program? 

2519.310 Is a participant eligible to receive 

an AmeriCorps educational award? 

2519.320 May a program provide a stipend to 

a participant? 

Subpart D--Application Contents 

2519.400 What must an applicant include in 

an application for a grant? 

Subpart E-Application Review 

2519.500 How does the Corporation review an 

application? 

Subpart F-Distribution of Funds 

2519.600 How are funds for Higher Education 

programs distributed? 

Subpart G-Funding Requirements 

2519.700 Are matching funds required? 

2519.710 Are there limits on the use of 

funds? 

2519.720 What is the length of a grant? 

2519.730 May an applicant submit more than 

one application to the Corporation for 

the same project at the same time? 

Subpart H-Evaluation Requirements 

2519.800 What are the evaluation requirements for Higher Education programs? 

AUTHORITY: 42 U.S.C. 12561; 42 U.S.C. 12645g. 

SOURCE: 59 FR 13792, Mar. 23, 1994, unless 

otherwise noted. 

Subpart A-Purpose and Eligibility 

To Apply 

§ 2519.100 What is the purpose of the 

Higher Education programs? 

The purpose of the higher education 

innovative programs for community 

service is to expand participation in 

community service by supporting highquality, sustainable community service programs carried out through institutions of higher education, acting as 

civic institutions helping to meet the 

educational, public safety, human, and 

environmental needs of the commu­ nities in which the programs operate. 

§2519.110 Who may apply for a grant? 

The following entities may apply for 

a grant from the Corporation: (a) An 

institution of higher education. 

(b) A consortium of institutions of 

higher education. 

(c) A higher education partnership, 

as defined in § 2510.20 of this chapter. 

§2519.120 What is the Federal WorkStudy requirement? 

To be eligible for assistance under 

this part, an institution of higher education must demonstrate that it meets 

the minimum requirements under sec­ tion 443(b)(2)(A) of the Higher Education Act of 1965 (42 U.S.C. 

2753(b)(2)(A)) relating to the participation of students employed under part C 

of title IV of the Higher Education Act 

of 1965 (42 U.S.C. 2751 et seq.) (relating 

to Federal Work-Study programs) in 

community service activities, or has 

received a waiver of those requirements from the Secretary of Education. 

[74 FR 46505, Sept. 10, 2009] 

Subpart B-Use of Grant Funds 

§ 2519.200 How may grant funds be 

used? 

Funds under a higher education program grant may be used for the following activities: (a) Enabling an institution of higher education, a higher 

education partnership or a consortium 

to create or expand an organized com­ munity service program that---

(1) Engenders a sense of social re­ sponsibility and commitment to the 

643 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2519.300 

community in which the institution is 

located; and 

(2) Provides projects for the participants described in §2519.300. 

(b) Supporting student-initiated and 

student-designed community service 

projects. 

(c) Strengthening the leadership and 

instructional capacity of teachers at 

the elementary, secondary, and postsecondary levels with respect to serv­ ice-learning by-

(1) Including service-learning as a key component of the preservice teacher education of the institution; and 

(2) Encouraging the faculty of the institution to use service-learning methods throughout the curriculum. 

(d) Facilitating the integration of 

community service carried out under 

the grant into academic curricula, including integration of clinical programs into the curriculum for students 

in professional schools, so that students may obtain credit for their com­ munity service projects. 

(e) Supplementing the funds available to carry out work-study programs 

under part C of title IV of the Higher 

Education Act of 1965 (42 U.S.C. 2751 et 

seq.) to support service-learning and 

community service. 

(f) Strengthening the service infrastructure within institutions of higher 

education in the United States that 

supports service-learning and commu­ nity service. 

(g) Providing for the training of 

teachers, prospective teachers, related 

education personnel, and community 

leaders in the skills necessary to develop, supervise, and organize servicelearning. 

Subpart C-Participant Eligibility 

and Benefits 

§ 2519.300 Who may participate in a Higher Education program? 

Students, faculty, administration 

and staff of an institution, as well as residents of the community may participate. For the purpose of this part, 

the term "student" means an individual who is enrolled in an institution 

of higher education on a full-time or part-time basis. 

45 CFR Ch. XXV (10-1-12 Edition) 

§ 2519.310 Is a participant eligible to 

receive an AmeriCorps educational 

award? 

In general, no. However, certain positions in programs funded under this 

part may qualify as approved 

AmeriCorps positions. The Corporation 

will establish eligibility requirements 

for these positions as a part of the application package. 

§ 2519.320 May a program provide a stipend to a participant? 

(a) A program may provide a stipend 

for service activities for a participant 

who is a student if the provision of stipends in reasonable in the context of a program's design and objectives. 

(1) A program may not provide a stipend to a student who is receiving aca­ demic credit for service activities un­ less the service activities require a substantial time commitment beyond 

that expected for the credit earned. 

(2) A participant who is earning 

money for service activities under the 

work-study program described in 

§2519.200(e) may not receive an additional stipend from funds under this 

part. 

(b) Consistent with the AmeriCorps 

program requirements in §2522.100 of 

this chapter, a program with participants serving in approved full-time 

AmeriCorps positions must ensure the 

provision of a living allowance and, if 

necessary, health care and child care to 

those participants. A program may, 

but is not required to, provide a prorated living allowance to individuals 

participating in approved AmeriCorps 

positions on a part-time basis, con­ sistent with the AmeriCorps program 

requirements in § 2522.240 of this chapter. 

Subpart D-Application Contents 

§ 2519.400 What must an applicant include in an application for a grant? 

In order to apply to the Corporation 

for a grant, an applicant must submit 

the following: (a) A plan describing the 

goals and activities of the proposed 

program. 

(b) The specific program, budget, and 

other information and assurances specified by the Corporation in the grant 

application package. 

644 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2519.600 

(c) Assurances that the applicant 

will- (1) Keep such records and provide 

such information to the Corporation 

with respect to the program as may be 

required for fiscal audits and program 

evaluation; 

(2) Comply with the criminal history 

check requirements for all grant-funded staff employed after October 1, 2009, 

in accordance with 45 CFR 2540.200--207, as well as the nonduplication, non­ displacement, and grievance procedure 

requirements of Part 2540. 

(3) Prior to the placement of a participant in the program, consult with the 

appropriate local labor organization, if 

any, representing employees in the area who are engaged in the same or similar work as the work proposed to 

be carried out by the program, to prevent the displacement and protect the 

rights of those employees; and 

(4) Comply with any other assurances that the Corporation deems necessary. 

[59 FR 13792, Mar. 23, 1994, as amended at 74 

FR 46505, Sept. 10, 2009] 

Subpart E-Application Review 

§ 2519.500 How does the Corporation 

review an application? 

(a) The Corporation will review an application submitted under this part on the basis of the quality, innovation, 

replicability, and sustainability of the 

proposed program and such other criteria as the Corporation establishes in an application package. 

(b) In addition, in reviewing applications submitted under this part, the 

Corporation will take into consideration whether proposed programs- (!) Demonstrate the commitment of 

the institution of higher education, 

other than by demonstrating the com­ mitment of its students, to supporting 

the community service projects carried 

out under the program; 

(2) Specify how the institution will 

promote faculty, administration, and 

staff participation in the community 

service projects; 

(3) Specify the manner in which the 

institution will provide service to the 

community through organized programs, including, where appropriate, 

clinical programs for students in professional schools and colleges; 

(4) Describe any higher education 

partnership that will participate in the 

community service projects, such as a 

higher education partnership comprised of the institution, a student organization, a community-based agency, 

a local government agency, or a nonprofit entity that serves or involves 

school-age youth, older adults, low-income communities, a department of 

the institution, or a group of faculty 

comprised of different departments, 

schools, or colleges at the institution; 

(5) Demonstrate community involvement in the development of the proposal and the extent to which the proposal will contribute to the goals of the 

involved community members; 

(6) Demonstrate a commitment to 

perform community service projects in 

underserved urban and rural communities; 

(7) Describe research on effective 

strategies and methods to improve 

service utilized in the design of the 

projects; 

(8) Specify that the institution will 

use funds under this part to strengthen 

the infrastructure in institutions of 

higher education; 

(9) With respect to projects involving 

delivery of service, specify projects 

that involve leadership development of 

school-age youth; or 

(10) Describe the needs that the proposed projects are designed to address, 

such as housing, economic development, infrastructure, health care, job 

training, education, crime prevention, 

urban planning, transportation, information technology, or child welfare. 

(c) In addition, the Corporation may 

designate additional review criteria in 

an application notice that will be used 

in selecting programs. 

[74 FR 46505, Sept. 10, 2009] 

Subpart F-Distribution of Funds 

§ 2519.600 How are funds for Higher 

Education programs distributed? 

All funds under this part are distributed by the Corporation through grants 

or by contract. 

645 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2519.700 

Subpart G-Funding Requirements 

§2519.700 Are matching funds re- quired? 

(a) Yes. The Corporation share of the 

cost of carrying out a program funded 

under this part may not exceed 50 percent. 

(b) In providing for the remaining 

share of the cost of carrying out a program, each recipient of assistance must 

provide for that share through a payment in cash or in-kind, fairly evaluated, including facilities, equipment, or services, and may provide for that 

share through State sources, local sources (including private funds or donated services) or Federal sources (other than funds made available under 

the national service laws). 

(c) However, the Corporation may 

waive the requirements of paragraph 

(b) of this section in whole or in part 

with respect to any program in any fiscal year if the Corporation determines 

that the waiver would be equitable due 

to lack of available financial resources at the local level. 

[59 FR 13792, Mar. 23, 1994, as amended at 74 

FR 46506, Sept. 10, 2009] 

§2519.710 Are there limits on the use of funds? 

Yes. The following limits apply to 

funds available under this part: 

(a) (1) Not more than six percent of 

the grant funds provided under this 

part for any fiscal year may be used to 

pay for administrative costs, as defined 

in § 2510.20 of this chapter. 

(2) The distribution of administrative 

costs between the grant and any 

subgrant will be subject to the approval of the Corporation. 

(3) In applying the limitation on administrative costs the Corporation will 

approve one of the following methods 

in the award document: 

(i) Limit the amount or rate of indirect costs that may be paid with Corporation funds under a grant or subgrant to six percent of total Corporation funds expended, provided 

that--- (A) Organizations that have an established indirect cost rate for Federal 

awards will be limited to this method; 

and 

45 CFR Ch. XXV (10-1-12 Edition) 

(B) Unreimbursed indirect costs may 

be applied to meeting operational 

matching requirements under the Corporation's award; 

(ii) Specify that a fixed rate of six 

percent or less (not subject to supporting cost documentation) of total 

Corporation funds expended may be 

used to pay for administrative costs, 

provided that the fixed rate is in conjunction with an overall 15 percent administrative cost factor to be used for 

organizations that do not have established indirect cost rates; or 

(iii) Utilize such other method that 

the Corporation determines in writing 

is consistent with 0MB guidance and 

other applicable requirements, helps 

minimize the burden on grantees or 

subgrantees, and is beneficial to grantees or subgrantees and the Federal 

Government. 

[63 FR 18138, Apr. 14, 1998, as amended at 74 

FR 46506, Sept. 10, 2009] 

§2519.720 What is the length of a 

grant? 

A grant under this part is for a period 

of up to three years, subject to satisfactory performance and annual appropriations. 

§2519.730 May an applicant submit more than one application to the 

Corporation for the same project at 

the same time? 

No. The Corporation will reject an 

application for a project if an application for funding or educational awards 

for the same project is already pending 

before the Corporation. 

Subpart H-Evaluation 

Requirements 

§ 2519.800 What are the evaluation re­ quirements for Higher Education 

programs? 

The monitoring and evaluation requirements for recipients of grants and 

subgrants under part 2516 of this chapter, relating to school-based servicelearning programs, apply to recipients 

under this part. 

646 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2520.25 

PART 2520-GENERAL PROVISIONS: 

AMERICORPS SUBTITLE C PROGRAMS 

Sec. 

2520.5 What definitions apply to this part? 

2520.10 What is the purpose of the 

AmeriCorps subtitle C program described 

in parts 2520 through 2524 of this chapter? 

2520.20 What service activities may I support with my grant? 

2520.25 What direct service activities may 

AmeriCorps members perform? 

2520.30 What capacity-building activities 

may AmeriCorps member perform? 

2520.35 Must my program recruit or support 

volunteers? 

2520.40 Under what circumstances may 

AmeriCorps members in my program 

raise resources? 

2520.45 How much time may an AmeriCorps 

member spend fundraising? 

2520.50 How much time may AmeriCorps 

members in my program spend in education and training activities? 

2520.55 When may my organization collect 

fees for services provided by AmeriCorps 

members? 

2520.60 What government-wide requirements 

apply to staff fundraising under my 

AmeriCorps grant? 

2520.65 What activities are prohibited in 

AmeriCorps subtitle C programs? 

AUTHORITY: 42 U.S.C. 12571-12595. 

SOURCE: 59 FR 13794, Mar. 23, 1994, unless 

otherwise noted. 

§ 2520.5 What definitions apply to this 

part? 

You. For this part, you refers to the 

grantee or an organization operating an AmeriCorps program. 

[70 FR 39596, July 8, 2005] 

§ 2520.10 What is the purpose of the 

Am.eriCorps subtitle C program described in parts 2520 through 2524 

of this chapter? 

The purpose of the AmeriCorps subtitle C program is to provide financial 

assistance under subtitle C of the National and Community Service Act to 

support AmeriCorps programs that address educational, public safety, 

human, or environmental needs 

through national and community serv­ ice, and to provide AmeriCorps education awards to participants in such 

programs. 

[67 FR 45359, July 9, 2002] 

§ 2520.20 What service activities may I 

support with my grant? 

(a) Your grant must initiate, improve, or expand the ability of an organization and community to provide 

services to address local unmet environmental, educational, public safety 

(including disaster preparedness and 

response), or other human needs. 

(b) You may use your grant to support AmeriCorps members: 

(1) Performing direct service activities that meet local needs. 

(2) Performing capacity-building ac­ tivities that improve the organizational and financial capability of non­ profit organizations and communities 

to meet local needs by achieving great­ er organizational efficiency and effectiveness, greater impact and quality of 

impact, stronger likelihood of success­ ful replicability, or expanded scale. 

[70 FR 39596, July 8, 2005] 

§ 2520.25 What direct service activities 

may AmeriCorps members perform? 

(a) The AmeriCorps members you 

support under your grant may perform 

direct service activities that will ad­ vance the goals of your program, that 

will result in a specific identifiable 

service or improvement that otherwise 

would not be provided, and that are included in, or consistent with, your Corporation-approved grant application. 

(b) Your members' direct service ac­ tivities must address local environmental, educational, public safety (including disaster preparedness and re­ sponse), or other human needs. 

(c) Direct service activities generally 

refer to activities that provide a direct, 

measurable benefit to an individual, a group, or a community. 

(d) Examples of the types of direct 

service activities AmeriCorps members 

may perform include, but are not limited to, the following: 

(1) Tutoring children in reading; 

(2) Helping to run an after-school 

program; 

(3) Engaging in community clean-up 

projects; 

(4) Providing health information to a vulnerable population; 

(5) Teaching as part of a professional 

corps; 

(6) Providing relief services to a com­ munity affected by a disaster; and 

647 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2520.30 

(7) Conducting a neighborhood watch 

program as part of a public safety effort. 

[70 FR 39597, July 8, 2005] 

§ 2520.30 What capacity-building ac­ tivities may AmeriCorps members 

perform? 

Capacity-building activities that 

AmeriCorps members perform should 

enhance the mission, strategy, skills, 

and culture, as well as systems, infrastructure, and human resources of an organization that is meeting unmet 

community needs. Capacity-building 

activities help an organization gain 

greater independence and sustainability. 

(a) The AmeriCorps members you 

support under your grant may perform 

capacity-building activities that ad­ vance your program's goals and that are included in, or consistent with, 

your Corporation-approved grant application. 

(b) Examples of capacity-building ac­ tivities your members may perform include, but are not limited to, the following: 

(1) Strengthening volunteer management and recruitment, including: 

(i) Enlisting, training, or coordinating volunteers; 

(ii) Helping an organization develop an effective volunteer management 

system; 

(iii) Organizing service days and 

other events in the community to in­ crease citizen engagement; 

(iv) Promoting retention of volunteers by planning recognition events or providing ongoing support and followup to ensure that volunteers have a high-quality experience; and 

(v) Assisting an organization in 

reaching out to individuals and com­ munities of different backgrounds 

when encouraging volunteering to en­ sure that a breadth of experiences and 

expertise is represented in service ac­ tivities. 

(2) Conducting outreach and securing resources in support of service activities that meet specific needs in the 

community; 

(3) Helping build the infrastructure of 

the sponsoring organization, including: 

(i) Conducting research, mapping 

community assets, or gathering other 

45 CFR Ch. XXV (10-1-12 Edition) 

information that will strengthen the 

sponsoring organization's ability to 

meet community needs; 

(ii) Developing new programs or serv­ ices in a sponsoring organization seeking to expand; 

(iii) Developing organizational systems to improve efficiency and effectiveness; 

(iv) Automating organizational operations to improve efficiency and effectiveness; 

(v) Initiating or expanding revenue­ generating operations directly in support of service activities; and 

(vi) Supporting staff and board education. 

(4) Developing collaborative relationships with other organizations working 

to achieve similar goals in the commu­ nity, such as: 

(i) Community organizations, includ- ing faith-based organizations; 

(ii) Foundations; 

(iii) Local government agencies; 

(iv) Institutions of higher education; 

and 

(v) Local education agencies or organizations. 

[70 FR 39597, July 8, 2005] 

§ 2520.35 Must my program recruit or support volunteers? 

(a) Unless the Corporation or the 

State commission, as appropriate, approves otherwise, some component of 

your program that is supported 

through the grant awarded by the Corporation must involve recruiting or supporting volunteers. 

(b) If you demonstrate that requiring 

your program to recruit or support volunteers would constitute a fundamental alteration to your program 

structure, the Corporation (or the 

State commission for formula programs) may waive the requirement in 

response to your written request for 

such a waiver in the grant application. 

[70 FR 39597, July 8, 2005] 

§ 2520.40 Under what circumstances 

may AmeriCorps members in my 

program raise resources? 

(a) AmeriCorps members may raise resources directly in support of your 

program's service activities. 

648 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2520.65 

(b) Examples of fundraising activities 

AmeriCorps members may perform include, but are not limited to, the following: 

(1) Seeking donations of books from 

companies and individuals for a program in which volunteers teach children to read; 

(2) Writing a grant proposal to a 

foundation to secure resources to support the training of volunteers; 

(3) Securing supplies and equipment 

from the community to enable volunteers to help build houses for low-in­ come individuals; 

( 4) Securing financial resources from 

the community to assist in launching or expanding a program that provides 

social services to the members of the 

community and is delivered, in whole or in part, through the members of a community-based organization; 

(5) Seeking donations from alumni of 

the program for specific service 

projects being performed by current 

members. 

(c) AmeriCorps members may not: 

(1) Raise funds for living allowances or for an organization's general (as opposed to project) operating expenses or 

endowment; 

(2) Write a grant application to the 

Corporation or to any other Federal 

agency. 

[70 FR 39597, July 8, 2005] 

§ 2520.45 How much time may an AmeriCorps member spend fundraising? 

An AmeriCorps member may spend no more than ten percent of his or her 

originally agreed-upon term of service, 

as reflected in the member enrollment 

in the National Service Trust, performing fundraising activities, as described in § 2520.40. 

[70 FR 39597, July 8, 2005] 

§ 2520.50 How much time may 

AmeriCorps members in my program spend in education and training activities? 

(a) No more than 20 percent of the aggregate of all AmeriCorps member 

service hours in your program, as reflected in the member enrollments in 

the National Service Trust, may be 

spent in education and training activities. 

(b) Capacity-building activities and 

direct service activities do not count 

towards the 20 percent cap on education and training activities. 

[70 FR 39597, July 8, 2005] 

§ 2520.55 When may my organization 

collect fees for services provided by 

AmeriCorps members? 

You may, where appropriate, collect 

fees for direct services provided by 

AmeriCorps members if: 

(a) The service activities conducted 

by the members are allowable, as defined in this part, and do not violate 

the non-displacement prov1s10ns in 

§2540.100 of these regulations; and 

(b) You use any fees collected to fi­ nance your non-Corporation share, or 

as otherwise authorized by the Corporation. 

[70 FR 39597, July 8, 2005] 

§ 2520.60 What government-wide re­ quirements apply to staff fundraising under my AmeriCorps 

grant? 

You must follow all applicable 0MB 

circulars on allowable costs (0MB Circular A--87 for State, Local, and Indian 

Tribal Governments, 0MB Circular A- 122 for Nonprofit Organizations, and 

0MB Circular A-21 for Educational Institutions). In general, the 0MB circulars do not allow the following as direct costs under the grant: Costs of or­ ganized fundraising, including financial campaigns, endowment drives, so­ licitation of gifts and bequests, and 

similar expenses incurred solely to 

raise capital or obtain contributions. 

[70 FR 39597, July 8, 2005] 

§ 2520.65 What activities are prohibited in AmeriCorps subtitle C programs? 

(a) While charging time to the 

AmeriCorps program, accumulating 

service or training hours, or otherwise 

performing activities supported by the 

AmeriCorps program or the Corporation, staff and members may not engage in the following activities: 

(1) Attempting to influence legislation; 

(2) Organizing or engaging in protests, petitions, boycotts, or strikes; 

649 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Pt. 2521 

(3) Assisting, promoting, or deterring 

union organizing; 

(4) Impairing existing contracts for 

services or collective bargaining agreements; 

(5) Engaging in partisan political activities, or other activities designed to 

influence the outcome of an election to 

any public office; 

(6) Participating in, or endorsing, 

events or activities that are likely to 

include advocacy for or against political parties, political platforms, political candidates, proposed legislation, 

or elected officials; 

(7) Engaging in religious instruction, 

conducting worship services, providing 

instruction as part of a program that 

includes mandatory religious instruction or worship, constructing or operating facilities devoted to religious instruction or worship, maintaining facilities primarily or inherently devoted 

to religious instruction or worship, or 

engaging in any form of religious proselytization; 

(8) Providing a direct benefit to--­

(i) A business organized for profit; 

(ii) A labor union; 

(iii) A partisan political organization; 

(iv) A nonprofit organization that 

fails to comply with the restrictions 

contained in section 50l(c)(3) of the Internal Revenue Code of 1986 except that 

nothing in this section shall be construed to prevent participants from engaging in advocacy activities undertaken at their own initiative; 

(v) An organization engaged in the 

religious activities described in paragraph (g) of this section, unless Corporation assistance is not used to support those religious activities; and 

(9) Conducting a voter registration 

drive or using Corporation funds to 

conduct a voter registration drive; 

(10) Providing abortion services or referrals for receipt of such services; and 

(11) Such other activities as the Corporation may prohibit. 

(b) Individuals may exercise their 

rights as private citizens and may participate in the activities listed above 

on their initiative, on non-AmeriCorps 

time, and using non-Corporation funds. 

45 CFR Ch. XXV (10-1-12 Edition) 

Individuals should not wear the 

AmeriCorps logo while doing so. 

[67 FR 45359, July 9, 2002. Redesignated at 70 

FR 39597, July 8, 2005; 73 FR 53759, Sept. 17, 

2008; 74 FR 46506, Sept. 10, 2009] 

PART 2521-ELIGIBLE AMERICORPS 

SUBTITLE C PROGRAM APPLICANTS AND TYPES OF GRANTS 

AVAILABLE FOR AWARD 

Sec. 

2521.5 What definitions apply to this part? 

2521.10 Who may apply to receive an AmeriCorps subtitle C grant? 

2521.20 What types of AmeriCorps subtitle C 

program grants are available for award? 

2521.30 How will AmeriCorps subtitle C program grants be awarded? 

PROGRAM MATCHING REQUIREMENTS 

2521.35 Who must comply with matching re­ quirements? 

2521.40 What are the matching requirements? 

2521.45 What are the limitations on the Federal government's share of program 

costs? 

2521.50 If I am an Indian Tribe, to what ex­ tent may I use tribal funds toward my 

share of costs? 

2521.60 To what extent must my share of 

program costs increase over time? 

2521.70 To what extent may the Corporation 

waive the matching requirements in 

§§ 2521.45 and 2521.60 of this part? 

2521.80 What matching level applies if my 

program was funded in the past but has 

not recently received an AmeriCorps 

grant? 

2521.90 If I am a new or replacement legal 

applicant for an existing program, what 

will my matching requirements be? 

2521.95 To what extent may I use grant 

funds for administrative costs? 

AUTHORITY: 42 U.S.C. 12571-12595. 

SOURCE: 59 FR 13794, Mar. 23, 1994, unless 

otherwise noted. 

§ 2521.5 What definitions apply to this 

part? 

You. For this part, you refers to the 

grantee, unless otherwise noted. 

[70 FR 39598, July 8, 2005] 

§ 2521.10 Who may apply to receive an AmeriCorps subtitle C grant? 

(a) States (including Territories), 

subdivisions of States, Indian tribes, 

public or private nonprofit organizations (including religious organizations 

650 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2521.20 

and labor organizations), and institutions of higher education are eligible 

to apply for AmeriCorps subtitle C 

grants. However, the fifty States, the 

District of Columbia and Puerto Rico 

must first receive Corporation authorization for the use of a State Commission or alternative administrative or transitional entity pursuant to part 

2550 of this chapter in order to be eligible. 

(b) The Corporation may also enter 

into contracts or cooperative agreements for AmeriCorps assistance with 

Federal agencies that are Executive 

Branch agencies or departments. Bureaus, divisions, and local and regional 

offices of such departments and agencies may only receive assistance pursuant to a contract or agreement with 

the central department or agency. The 

requirements relating to Federal agencies are described in part 2523 of this 

chapter. 

[59 FR 13794, Mar. 23, 1994, as amended at 67 

FR 45360, July 9, 2002] 

§ 2521.20 What types of AmeriCorps 

subtitle C program grants are available for award? 

The Corporation may make the following types of grants to eligible applicants. The requirements of this section 

will also apply to any State or other 

applicant receiving assistance under 

this part that proposes to conduct a grant program using the assistance to 

support other national or community 

service programs. 

(a) Planning grants-(l) Purpose. The 

purpose of a planning grant is to assist an applicant in completing the planning necessary to implement a sound 

concept that has already been developed. 

(2) Eligibility. (i) States may apply directly to the Corporation for planning 

grants. 

(ii) Subdivisions of States, Indian 

Tribes, public or private nonprofit or­ ganizations (including religious organizations and labor organizations), and 

institutions of higher education may 

apply either to a State or directly to 

the Corporation for planning grants. 

(3) Duration. A planning grant will be 

negotiated for a term not to exceed one year. 

(b) Operational grants-(l) Purpose. 

The purpose of an operational grant is 

to fund an organization that is ready to 

establish, operate, or expand an AmeriCorps program. An operational 

grant may include AmeriCorps educational awards. An operational grant 

may also include a short planning period of up to six months, if necessary, 

to implement a program. 

(2) Eligibility. (i) States may apply directly to the Corporation for operational grants. 

(ii) Subdivisions of States, Indian 

Tribes, public or private nonprofit or­ ganizations (including religious organizations and labor organizations), and 

institutions of higher education may 

apply either to a State or directly to 

the Corporation for operational grants. 

The Corporation may limit the categories of applicants eligible to apply 

directly to the Corporation for assist­ ance under this section consistent with 

its National priorities. 

(3) Duration. An operational grant 

will be negotiated for a term not to ex­ ceed three years. Within a three-year 

term, renewal funding will be contingent upon periodic assessment of program quality, progress to date, and 

availability of Congressional appropriations. 

(c) Replication Grants. The Corporation may provide assistance for the 

replication of an existing national 

service program to another geographical location. 

(d) Training, technical assistance and 

other special grants-(l) Purpose. The 

purpose of these grants is to ensure broad access to AmeriCorps programs 

for all Americans, including those with 

disabilities; support disaster relief efforts; assist efforts to secure private 

support for programs through challenge grants; and ensure program quality by supporting technical assistance 

and training programs. 

(2) Eligibility. Eligibility varies and is 

detailed under 45 CFR part 2524, 

"Technical Assistance and Other Special Grants." 

(3) Duration. Grants will be negotiated for a renewable term of up to 

three years. 

[59 FR 13794, Mar. 23, 1994, as amended at 67 

FR 45360, July 9, 2002] 

651 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2521.30 

§ 2521.30 How will AmeriCorps subtitle 

C program grants be awarded? 

In any fiscal year, the Corporation 

will award AmeriCorps subtitle C program grants as follows: 

(a) Grants to State Applicants. (1) For 

the purposes of this section, the term 

"State" means the fifty States, Puerto 

Rico, and the District of Columbia. 

(2) One-third of the funds available 

under this part and a corresponding allotment of AmeriCorps educational 

awards, as specified by the Corporation, will be distributed according to a population-based formula to the 50 

States, Puerto Rico and the District of 

Columbia if they have applications approved by the Corporation. 

(3) At least one-third of funds available under this part and an appropriate 

number of AmeriCorps awards, as determined by the Corporation, will be 

awarded to States on a competitive 

basis. In order to receive these funds, a State must receive funds under paragraphs (a)(2) or (b)(l) of this section in 

the same fiscal year. 

(4) In making subgrants with funds 

awarded by formula or competition 

under paragraphs (a)(2) or (3) of this 

section, a State must ensure tha~ a minimum of 50 percent of funds gomg 

to States will be used for programs 

that operate in the areas of need or on 

Federal or other public lands, and that 

place a priority on recruiting participants who are residents in high need 

areas, or on Federal or other public 

lands. The Corporation may waive this 

requirement for an individual State if 

at least 50 percent of the total amount 

of assistance to all States will be used 

for such programs. 

(b) Grants to Applicants other than 

States. (1) One percent of available 

funds will be distributed to the U.S. 

Territories 1 that have applications approved by the Corporation according to a population-based formula. 2 

lThe United States Virgin Islands, Guam, 

American Samoa, and the Commonwealth of 

the Northern Mariana Islands. 

2The amount allotted as a grant to each 

such territory or possession is equal to the 

ratio of each such Territory's population to 

the population of all such territories multiplied by the amount of the one percent setaside. 

45 CFR Ch. XXV (10-1-12 Edition) 

(2) One percent of available funds will 

be reserved for distribution to Indian 

tribes on a competitive basis. 

(3) The Corporation will use any 

funds available under this part remaining after the award of the grants described in paragraphs (a) and (b) (1) and 

(2) of this section to make direct com­ petitive grants to subdivisions of 

States Indian tribes, public or private 

nonpr~fit organizations (including religious organizations and labor organizations), institutions of higher education, 

and Federal agencies. No more than 

one-third of the these remaining funds 

may be awarded to Federal agencies. 

(c) Allocation of AmeriCorps educational awards only. The Corporation 

will determine on an annual basis the 

appropriate number of educational 

awards to make available for eligible 

applicants who have not applied for 

program assistance. 

(d) Effect of States' or Territories' failure to apply. If a State or U.S. Territory does not apply for or fails to give 

adequate notice of its intent to apply 

for a formula-based grant as announced 

by the Corporation and published in applications and the Notice of Funds 

Availability, the Corporation will use 

the amount of that State's allotment 

to make grants to eligible entities to 

carry out AmeriCorps programs in that 

State or Territory. Any funds remaining from that State's allotment after 

making such grants will be reallocated 

to the States, Territories, and Indian 

tribes with approved AmeriCorps applications at the Corporation's discretion. 

(e) Effect of rejection of State application. If a State's application for a formula-based grant is ultimately re­ jected by the Corporation pursuant to 

§2522.320 of this chapter, the State's allotment will be available for redistribution by the Corporation to the 

States, Territories, and Indian Tribes 

with approved AmeriCorps applications 

as the Corporation deems appropriate. 

(f) The Corporation will make grants 

for training, technical assistance and 

other special programs described in 

part 2524 of this chapter at the Corporation's discretion. 

[59 FR 13794, Mar. 23, 1994, as amended at 63 

FR 18138, Apr. 14, 1998; 67 FR 45360, July 9, 

2002; 70 FR 39598, July 8, 2005; 73 FR 53759, 

Sept. 17, 2008] 

652 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2521.50 

PROGRAM MATClllNG REQUIREMENTS 

§ 2521.35 Who must comply with 

matching requirements? 

(a) The matching requirements described in §§2521.40 through 2521.95 

apply to you if you are a subgrantee of a State commission or a direct program grantee of the Corporation. These 

requirements do not apply to Education Award Programs. 

(b) If you are a State commission, 

you must ensure that your grantees 

meet the match requirements established in this part, and you are also re­ sponsible for meeting an aggregate 

overall match based on your grantees' 

individual match requirements. 

[70 FR 39598, July 8, 2005; 70 FR 48882, Aug. 22, 

2005] 

§ 2521.40 What are the matching re­ quirements? 

If you are subject to matching re­ quirements under §2521.35, you must 

adhere to the following: 

(a) Basic match: At a minimum, you 

must meet the basic match requirements as articulated in §2521.45. 

(b) Regulatory match: In addition to 

the basic requirements under paragraph (a) of this section, you must provide an overall level of matching funds 

according to the schedule in § 2521.60(a), or §2521.60(b) if applicable. 

(c) Budgeted match: To the extent 

that the match in your approved budget exceeds your required match levels 

under paragraph (a) or (b) of this sec­ tion, any failure to provide the amount 

above your regulatory match but below 

your budgeted match will be considered as a measure of past performance in 

subsequent grant competitions. 

[70 FR 39598, July 8, 2005] 

§ 2521.45 What are the limitations on the Federal government's share of 

program costs? 

The limitations on the Federal government's share are different-in type 

and amount-for member support costs 

and program operating costs. 

(a) Member support: The Federal 

share, including Corporation and other 

Federal funds, of member support 

costs, which include the living allow­ ance required under § 2522.240(b)(l), 

FICA, unemployment insurance (if required under State law), worker's com­ pensation (if required under State law), 

is limited as follows: 

(1) The Federal share of the living allowance may not exceed 85 percent of 

the minimum living allowance required 

under §2522.240(b)(l), and 85 percent of 

other member support costs. 

(2) If you are a professional corps described in §2522.240(b)(2)(i), you may 

not use Corporation funds for the living allowance. 

(3) Your share of member support 

costs must be non-Federal cash. 

(4) The Corporation's share of health care costs may not exceed 85 percent. 

(b) Program operating costs: The Corporation share of program operating 

costs may not exceed 67 percent. These 

costs include expenditures (other than 

member support costs described in 

paragraph (a) of this section) such as 

staff, operating expenses, internal evaluation, and administration costs. 

(1) You may provide your share of 

program operating costs with cash, including other Federal funds (as long as the other Federal agency permits its 

funds to be used as match), or third 

party in-kind contributions. 

(2) Contributions, including third 

party in-kind must: 

(i) Be verifiable from your records; 

(ii) Not be included as contributions 

for any other Federally assisted program; 

(iii) Be necessary and reasonable for 

the proper and efficient accomplishment of your program's objectives; and 

(iv) Be allowable under applicable 

0MB cost principles. 

(3) You may not include the value of 

direct community service performed by 

volunteers, but you may include the 

value of services contributed by volunteers to your organizations for organizational functions such as accounting, 

audit, and training of staff and 

AmeriCorps programs. 

[70 FR 39598, July 8, 2005] 

§ 2521.50 If I am an Indian Tribe, to 

what extent may I use tribal funds 

towards my share of costs? 

If you are an Indian Tribe that re­ ceives tribal funds through Public Law 

93-638 (the Indian Self-Determination 

and Education Assistance Act), those 

funds are considered non-Federal and 

653 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2521.60 

you may use them towards your share 

of costs, including member support 

costs. 

[70 FR 39598, July 8, 2005] 

§ 2521.60 To what extent must my 

share of program costs increase over time? 

Except as provided in paragraph (b) 

of this section, if your program continues to receive funding after an initial three-year grant period, you must 

continue to meet the minimum re­ quirements in § 2541.45 of this part. In 

addition, your required share of program costs, including member support 

45 CFR Ch. XXV (10-1-12 Edition) 

and operating costs, will incrementally 

increase to a 50 percent overall share 

by the tenth year and any year thereafter that you receive a grant, without a break in funding of five years or more. A 50 percent overall match means that you will be required to 

match $1 for every $1 you receive from 

the Corporation. 

(a) Minimum Organization Share: (1) 

Subject to the requirements of §2521.45 

of this part, and except as provided in 

paragraph (b) of this section, your 

overall share of program costs will in­ crease as of the fourth consecutive 

year that you receive a grant, according to the following timetable: 

Year 1 (percent) Year 2 (percent) Year3 

(percent) 

Year4 

(percent) 

Year 5 (percent) Year 6 (percent) 

Year7 

(percent) 

Years 

(percent) 

Years 

(percent) 

Year 

10 

(percent) 

Minimum member support .... 15 15 15 15 15 15 15 15 15 15 

Minimum operating costs ...... 33 33 33 33 33 33 33 33 33 33 

Minimum overall share ......... NIA N/A N/A 26 30 34 38 42 46 50 

(2) A grantee must have contributed 

matching resources by the end of a 

grant period in an amount equal to the 

combined total of the minimum overall 

annual match for each year of the 

grant period, according to the table in 

paragraph (a)(l) of this section. 

(3) A State commission may meet its 

match based on the aggregate of its 

grantees' individual match requirements. 

(b) Alternative match requirements: If 

your program is unable to meet the 

match requirements as required in 

paragraph (a) of this section, and is located in a rural or a severely economically distressed community, you may 

apply to the Corporation for a waiver 

that would require you to increase the 

overall amount of your share of program costs beginning in the seventh 

consecutive year that you receive a grant, according to the following table: 

Year 1 

(percent) 

Year 2 

(percent) 

Year3 

(percent) 

Year4 

(percent) 

Year 5 

(percent) 

Year 6 

(percent) 

Year7 

(percent) 

Years 

(percent) 

Years 

(percent) 

Year 

10 

(percent) 

Minimum member support .... 15 15 15 15 15 15 15 15 15 15 

Minimum operating costs ...... 33 33 33 33 33 33 33 33 33 33 

Minimum overall share ......... NIA N/A N/A NIA N/A N/A 29 31 33 35 

(c) Determining Program Location. (1) 

The Corporation will determine wheth­ er your program is located in a rural 

county by considering the U.S. Department of Agriculture's Beale Codes. 

(2) The Corporation will determine 

whether your program is located in a severely economically distressed coun­ ty by considering unemployment rates, 

per capita income, and poverty rates. 

(3) Unless the Corporation approves 

otherwise, as provided in paragraph 

(c)(4) of this section, the Corporation 

will determine the location of your 

program based on the legal applicant's 

address. 

(4) If you believe that the legal applicant's address is not the appropriate 

way to consider the location of your 

program, you may request the waiver 

described in paragraph (b) of this sec­ tion and provide the relevant facts 

about your program location to support your request. 

654 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2521.95 

(d) Schedule for current program 

grants: If you have completed at least one three-year grant cycle on the date 

this regulation takes effect, you will be 

required to provide your share of costs 

beginning at the year three level, ac­ cording to the table in paragraph (a) of 

this section, in the first program year 

in your grant following the regulation's effective date, and increasing 

each year thereafter as reflected in the 

table. 

(e) Flexibility in how you provide your 

share: As long as you meet the basic 

match requirements in § 2521.45, you 

may use cash or in-kind contributions 

to reach the overall share level. For ex­ ample, if your organization finds it 

easier to raise member support match, 

you may choose to meet the required 

overall match by raising only more member support match, and leave operational match at the basic level, as long as you provide the required over­ all match. 

(f) Reporting excess resources. (1) The 

Corporation encourages you to obtain 

support over-and-above the matching 

fund requirements. Reporting these re­ sources may make your application more likely to be selected for funding, 

based on the selection criteria in 

§§ 2522.430 and 2522.435 of these regulations. 

(2) You must comply with §2543.23 of 

this title and applicable 0MB circulars 

in documenting cash and in-kind con­ tributions and excess resources. 

[70 FR 39598, July 8, 2005] 

§2521.70 To what extent may the Corporation waive the matching re­ quirements in §§ 2521.45 and 2521.60 

of this part? 

(a) The Corporation may waive, in 

whole or in part, the requirements of 

§§2521.45 and 2521.60 of this part if the 

Corporation determines that a waiver 

would be equitable because of a lack of 

available financial resources at the 

local level. 

(b) If you are requesting a waiver, 

you must demonstrate: 

(1) The lack of resources at the local 

level; 

(2) That the lack of resources in your 

local community is unique or unusual; 

(3) The efforts you have made to raise 

matching resources; and 

(4) The amount of matching re­ sources you have raised or reasonably 

expect to raise. 

(c) You must provide with your waiv­ er request: 

(1) A request for the specific amount 

of match you are requesting that the 

Corporation waive; and 

(2) A budget and budget narrative 

that reflects the requested level in 

matching resources. 

[70 FR 39598, July 8, 2005] 

§ 2521.80 What matching level applies 

if my program was funded in the 

past but has not recently received an AmeriCorps grant? 

(a) If you have not been a direct re­ cipient of an AmeriCorps operational 

grant from the Corporation or a State 

commission for five years or more, as determined by the end date of your 

most recent grant period, you may 

begin matching at the year one level, as reflected in the timetable in 

§2521.60(a) of this part, upon receiving 

your new grant award. 

(b) If you have not been a direct re­ cipient of an AmeriCorps operational 

grant from the Corporation or a State 

commission for fewer than five years, 

you must begin matching at the same level you were matching at the end of 

your most recent grant period. 

[70 FR 39598, July 8, 2005] 

§ 2521.90 If I am a new or replacement 

legal applicant for an existing program, what will my matching re­ quirements be? 

If your organization is a new or re­ placement legal applicant for an existing program, you must provide matching resources at the level the previous 

legal applicant had reached at the time 

you took over the program. 

[70 FR 39598, July 8, 2005] 

§ 2521.95 To what extent may I use grant funds for administrative 

costs? 

(a) Not more than five percent of the 

grant funds provided under this part 

for any fiscal year may be used to pay 

for administrative costs, as defined in 

§2510.20 of this chapter. 

(b) The distribution of administrative 

costs between the grant and any 

655 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Pt. 2522 

subgrant will be subject to the approval of the Corporation. 

(c) In applying the limitation on administrative costs the Corporation will 

approve one of the following methods 

in the award document: 

(1) Limit the amount or rate of indirect costs that may be paid with Corporation funds under a grant or subgrant to five percent of total Corporation funds expended, provided 

that--- (i) Organizations that have an established indirect cost rate for Federal 

awards will be limited to this method; 

and 

(ii) Unreimbursed indirect costs may 

be applied to meeting operational 

matching requirements under the Corporation's award; 

(2) Specify that a fixed rate of five 

percent or less (not subject to supporting cost documentation) of total 

Corporation funds expended may be 

used to pay for administrative costs, 

provided that the fixed rate is in con­ junction with an overall 15 percent administrative cost factor to be used for 

organizations that do not have established indirect cost rates; or (3) Utilize such other method that 

the Corporation determines in writing 

is consistent with 0MB guidance and 

other applicable requirements, helps 

minimize the burden on grantees or subgrantees, and is beneficial to grant­ ees or subgrantees and the Federal 

Government. 

[70 FR 39598, July 8, 2005] 

PART 2522-AMERICORPS PARTICIPANTS, PROGRAMS, AND APPLICANTS 

Subpart A-Minimum Requirements and 

Program Types 

Sec. 

2522.10 What definitions apply to this part? 

2522.100 What are the minimum requirements that AmeriCorps subtitle C grant­ ees must meet? 

2522.110 What types of programs are eligible 

to compete for AmeriCorps grants? 

Subpart B-Participant Eligibility, 

Requirements, and Benefits 

2522.200 What are the eligibility requirements for an AmeriCorps participant? 

45 CFR Ch. XXV (10-1-12 Edition) 

2522.205 To whom must I apply suitability 

criteria relating to criminal history? 

2522.206 What suitability criteria must I 

apply to a covered position? 

2522.207 What are the procedures I must follow to determine an individual's suitability to serve in a covered position? 

2522.210 How are AmeriCorps participants 

recruited and selected? 

2522.220 What are the required terms of 

service for AmeriCorps participants? 

2522.230 Under what circumstances may an 

AmeriCorps participant be released from 

completing a term of service, and what are the consequences? 

2522.235 Is there a limit on the number of 

terms an individual may serve in an AmeriCorps State and National program? 

2522.240 What financial benefits do 

AmeriCorps participants serving in approved AmeriCorps positions receive? 

2522.245 How are living allowances disbursed? 

2522.250 What other benefits do AmeriCorps 

participants serving in approved 

AmeriCorps positions receive? 

Subpart C-Application Requirements 

2522.300 What are the application requirements for AmeriCorps program grants? 

2522.310 What are the application requirements for AmeriCorps educational 

awards only? 

2522.320 [Reserved] 

2522.330 [Reserved] 

2522.340 How will I know if two projects are the same? 

Subpart 0-Selection of AmeriCorps 

Programs 

2522.400 What process does the Corporation use to select new grantees? 

2522.410 What is the role of the Corporation's Board of Directors in the selection 

process? 

2522.415 How does the grant selection process work? 

2522.420 What basic criteria does the Corporation use in making funding decisions? 

2522.425 [Reserved] 

2522.430 [Reserved] 

2522.435 [Reserved] 

2522.440 What weight does the Corporation 

give to each category of the basic criteria? 

2522.445 [Reserved] 

2522.448 [Reserved] 

2522.450 What types of programs or program 

models may receive special consideration 

in the selection process? 

2522.455 How do I find out about additional 

priorities governing the selection process? 

656 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2522.100 

2522.460 To what extent may the Corporation or a State commission consider priorities other than those stated in these 

regulations or the Notice of Funding 

Availability? 

2522.465 What information must a State 

commission submit on the relative 

strengths of applicants for State competitive funding? 

2522.470 What other factors or information 

may the Corporation consider in making 

final funding decisions? 

2522.475 To what extent must I use the Corporation's selection criteria and priorities when selecting formula programs or 

operating sites? 

2522.480 Can a State's application for formula funds be rejected? 

2522.485 How do I calculate my program's 

budgeted Corporation cost per member 

service year (MSY)? 

Subpart E-Evaluation Requirements 

2522.500 What is the purpose of this subpart? 

2522.510 To whom does this subpart apply? 

2522.520 What special terms are used in this 

subpart? 

2522.530 May I use the Corporation's program grant funds for performance measurement and evaluation? 

2522.540 Do the costs of performance measurement or evaluation count towards the 

statutory cap on administrative costs? 

PERFORMANCE MEASURES: REQUIREMENTS AND 

PROCEDURES 

2522.550 What basic requirements must I follow in measuring performance under my 

grant? 

2522.560 What are performance measures 

and performance measurement? 

2522.570 What information on performance 

measures must my grant application include? 

2522.580 What performance measures am I 

required to submit to the Corporation? 

2522.590 Who develops my performance 

measures? 

2522.600 Who approves my performance 

measures? 

2522.610 What is the difference in performance measurements requirements for 

competitive and formula programs? 

2522.620 How do I report my performance 

measures to the Corporation? 

2522.630 What must I do if I am not able to 

meet my performance measures? 

2522.640 Under what circumstances may I 

change my performance measures? 

2522.650 What happens if I fail to meet the 

performance measures included in my 

grant? 

EVALUATING PROGRAMS: REQUIREMENTS AND 

PROCEDURES 

2522.700 How does evaluation differ from 

performance measurement? 

2522.710 What are my evaluation requirements? 

2522.720 How many years must my evaluation cover? 

2522.730 How and when do I submit my evaluation to the Corporation? 

2522.740 How will the Corporation use my 

evaluation? 

2522.800 How will the Corporation evaluate 

individual AmeriCorps programs? 

2522.810 What will the Corporation do to 

evaluate the overall success of the 

AmeriCorps programs? 

2522.820 Will information on individual participants be kept confidential? 

Subpart F-Program Management 

Requirements for Grantees 

2522.900 What definitions apply to this subpart? 

2522.910 What basic qualifications must an AmeriCorps member have to serve as a 

tutor? 

2522.920 Are there any exceptions to the 

qualifications requirements? 

2522.930 [Reserved] 

2522.940 What are the requirements for a program in which AmeriCorps members 

serve as tutors? 

2522.950 What requirements and qualifications apply if my program focuses on supplemental academic support activities other than tutoring? 

AUTHORITY: 42 U.S.C. 12571-12595; 1265lb1265ld; E.O. 13331, 69 FR 9911, Sec. 1612, Pub. 

L. 111-13. 

SOURCE: 59 FR 13796, Mar. 23, 1994, unless 

otherwise noted. 

Subpart A-Minimum 

Requirements and Program Types 

§ 2522.10 What definitions apply to this 

part? 

You. For this part, you refers to the 

grantee, unless otherwise noted. 

[70 FR 39600, July 8, 2005] 

§ 2522.100 What are the minimum re­ quirements that every AmeriCorps 

program, regardless of type, must 

meet? 

Although a wide range of programs 

may be eligible to apply for and receive 

support from the Corporation, all 

AmeriCorps subtitle C programs must 

657 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2522.100 

meet certain m1mmum program re­ quirements. These requirements apply 

regardless of whether a program is supported directly by the Corporation or through a subgrant. All AmeriCorps 

programs must: 

(a) Address educational, public safety, human, or environmental needs, 

and provide a direct and demonstrable 

benefit that is valued by the commu­ nity in which the service is performed; 

(b) Perform projects that are designed, implemented, and evaluated 

with extensive and broad-based local 

input, including consultation with representatives from the community 

served, participants (or potential participants) in the program, communitybased agencies with a demonstrated 

record of experience in providing serv­ ices, and local labor organizations representing employees of project spon­ sors (if such entities exist in the area to be served by the program); 

(c) Obtain, in the case of a program 

that also proposes to serve as the 

project sponsor, the written concur­ rence of any local labor organization 

representing employees of the project 

sponsor who are engaged in the same or substantially similar work as that proposed to be carried out by the 

AmeriCorps participant; 

(d) Establish and provide outcome objectives, including a strategy for 

achieving these objectives, upon which 

self-assessment and Corporation-assessment of progress can rest. Such as­ sessment will be used to help determine the extent to which the program 

has had a positive impact: (1) On com­ munities and persons served by the 

projects performed by the program; 

(2) On participants who take part in 

the projects; and 

(3) In such other areas as the program or Corporation may specify; 

(e) Strengthen communities and en­ courage mutual respect and cooperation among citizens of different races, 

ethnicities, socioeconomic backgrounds, educational levels, both men and women and individuals with disabilities; 

(f) Agree to seek actively to include 

participants and staff from the commu­ nities in which projects are conducted, 

and agree to seek program staff and 

participants of different races and 

45 CFR Ch. XXV (10-1-12 Edition) 

ethnicities, socioeconomic backgrounds, educational levels, and genders as well as individuals with disabilities unless a program design requires 

emphasizing the recruitment of staff 

and participants who share a specific 

characteristic or background. In no case may a program violate the nondiscrimination, nonduplication and 

nondisplacement rules governing participant selection described in part 2540 

of this chapter. In addition, programs are encouraged to establish, if con­ sistent with the purposes of the program, an intergenerational component 

that combines students, out-of-school 

youths, and older adults as participants; 

(g)(l) Determine the projects in 

which participants will serve and es­ tablish minimum qualifications that 

individuals must meet to be eligible to 

participate in the program; these qualifications may vary based on the specific tasks to be performed by participants. Regardless of the educational 

level or background of participants 

sought, programs are encouraged to se­ lect individuals who posses leadership 

potential and a commitment to the 

goals of the AmeriCorps program. In 

any case, programs must select participants in a non-partisan, non-political, 

non-discriminatory manner, ensuring 

fair access to participation. In addition, programs are required to ensure that they do not displace any existing 

paid employees as provided in part 2540 

of this chapter; 

(2) In addition, all programs are re­ quired to comply with any pre-service 

orientation or training period requirements established by the Corporation 

to assist in the selection of motivated 

participants. Finally, all programs 

must agree to select a percentage (to 

be determined by the Corporation) of 

the participants for the program from 

among prospective participants re­ cruited by the Corporation or State 

Commissions under part 2533 of this 

chapter. The Corporation may also 

specify a minimum percentage of participants to be selected from the na­ tional leadership pool established 

under §2522.210(c). The Corporation 

may vary either percentage for different types of AmeriCorps programs; 

658 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2522.110 

(h) Provide reasonable accommodation, including auxiliary aids and serv­ ices (as defined in section 3(1) of the 

Americans with Disabilities Act of 1990 

(42 U.S.C. 12102(1)) based on the individualized need of a participant who is a qualified individual with a disability 

(as defined in section 101(8) of such Act 

(42 U.S.C. 12111(8)). For the purpose of 

complying with this prov1s10n, 

AmeriCorps programs may apply for 

additional financial assistance from 

the Corporation pursuant to § 2524.40 of 

this chapter; 

(i) Use service experiences to help 

participants achieve the skills and education needed for productive, active 

citizenship, including the provision, if 

appropriate, of structured opportunities for participants to reflect on their 

service experiences. In addition, all 

programs must encourage every participant who is eligible to vote to register 

prior to completing a term of service; 

(j) Provide participants in the program with the training, skills, and 

knowledge necessary to perform the 

tasks required in their respective 

projects, including, if appropriate, specific training in a particular field and 

background information on the com­ munity, including why the service 

projects are needed; 

(k) Provide support services- (!) To participants who are com­ pleting a term of service and making 

the transition to other educational and career opportunities; and 

(2) To those participants who are school dropouts in order to assist them 

in earning the equivalent of a high 

school diploma; 

(1) Ensure that participants serving 

in approved AmeriCorps positions re­ ceive the living allowance and other 

benefits described in §§2522.240 through 

2522.250 of this chapter; 

(m) Describe the manner in which the 

AmeriCorps educational awards will be 

apportioned among individuals serving 

in the program. If a program proposes 

to provide such benefits to less than 100 

percent of the participants in the program, the program must provide a compelling rationale for determining 

which participants will receive the 

benefits and which participants will 

not. AmeriCorps programs are strongly 

encouraged to offer alternative postservice benefits to participants who 

will not receive AmeriCorps educational awards, however AmeriCorps 

grant funds may not be used to provide 

such benefits; 

(n) Agree to identify the program, 

through the use of logos, common application materials, and other means (to be specified by the Corporation), as part of a larger national effort and to 

participate in other activities such as common opening ceremonies (including 

the administration of a national oath or affirmation), service days, and con­ ferences designed to promote a na­ tional identity for all AmeriCorps programs and participants, including 

those participants not rece1vmg 

AmeriCorps educational awards. This 

prov1s10n does not preclude an AmeriCorps program from continuing 

to use its own name as the primary 

identification, or from using its name, 

logo, or other identifying materials on uniforms or other i terns; 

(o) Agree to begin terms of service at 

such times as the Corporation may rea­ sonably require and to comply with 

any restrictions the Corporation may 

establish as to when the program may 

take to fill an approved AmeriCorps position left vacant due to attrition; 

(p) Comply with all evaluation procedures specified by the Corporation, as explained in §§ 2522.500 through 2522.560; 

(q) In the case of a program receiving 

funding directly from the Corporation, 

meet and consult with the State Commission for the State in which the program operates, if possible, and submit a copy of the program application to 

the State Commission; and 

(r) Address any other requirements as specified by the Corporation. 

[59 FR 13796, Mar. 23, 1994, as amended at 67 

FR 45360, July 9, 2002; 75 FR 51410, Aug. 20, 

2010] 

§2522.110 What types of programs are eligible to compete for AmeriCorps 

grants? 

Types of programs eligible to com­ pete for AmeriCorps grants include the 

following: (a) Specialized skills programs. 

(1) A service program that is targeted 

to address specific educational, public 

safety, human, or environmental needs 

and that659 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2522.110 

(i) Recruits individuals with special 

skills or provides specialized pre-service training to enable participants to 

be placed individually or in teams in 

positions in which the participants can meet such needs; and 

(ii) If consistent with the purposes of 

the program, brings participants together for additional training and 

other activities designed to foster civic 

responsibility, increase the skills of 

participants, and improve the quality 

of the service provided. 

(2) A preprofessional training program in which students enrolled in an 

institution of higher education-

(i) Receive training in specified 

fields, which may include classes containing service-learning; 

(ii) Perform service related to such 

training outside the classroom during 

the school term and during summer or other vacation periods; and 

(iii) Agree to provide service upon 

graduation to meet educational, public 

safety, human, or environmental needs 

related to such training. 

(3) A professional corps program that 

recruits and places qualified participants in positions-

(i) As teachers, nurses and other 

health care providers, police officers, 

early childhood development staff, engineers, or other professionals providing service to meet educational, 

public safety, human, or environmental 

needs in communities with an inadequate number of such professionals; 

(ii) That may include a salary in excess of the maximum living allowance 

authorized in §2522.240(b)(2); and 

(iii) That are sponsored by public or 

private nonprofit employers who agree 

to pay 100 percent of the salaries and 

benefits (other than any AmeriCorps 

educational award from the National 

Service Trust) of the participants. 

(b) Specialized service programs. (1) A 

community service program designed 

to meet the needs of rural communities, using teams or individual placements to address the development 

needs of rural communities and to 

combat rural poverty, including health 

care, education, and job training. 

(2) A program that seeks to eliminate 

hunger in communities and rural areas through service in projects45 CFR Ch. XXV (10-1-12 Edition) 

(i) Involving food banks, food pantries, and nonprofit organizations that 

provide food during emergencies; 

(ii) Involving the gleaning of prepared and unprepared food that would 

otherwise be discarded as unusable so that the usable portion of such food 

may be donated to food banks, food 

pantries, and other nonprofit organizations; 

(iii) Seeking to address the long-term 

causes of hunger through education 

and the delivery of appropriate serv­ ices; or 

(iv) Providing training in basic 

health, nutrition, and life skills necessary to alleviate hunger in communities and rural areas. 

(3) A program in which economically 

disadvantaged individuals who are between the ages of 16 and 24 years of age, 

inclusive, are provided with opportunities to perform service that, while enabling such individuals to obtain the 

education and employment skills necessary to achieve economic self-sufficiency, will help their communities 

meet-

(i) The housing needs of low-income 

families and the homeless; and 

(ii) The need for community facilities 

in low-income areas. 

(c) Community-development programs. 

(1) A community corps program that 

meets educational, public safety, 

human, or environmental needs and 

promotes greater community unity 

through the use of organized teams of 

participants of varied social and economic backgrounds, skill levels, physical and developmental capabilities, 

ages, ethnic backgrounds, or genders. 

(2) A program that is administered by 

a combination of nonprofit organizations located in a low-income area, 

provides a broad range of services to 

residents of such an area, is governed 

by a board composed in significant part 

of low-income individuals, and is intended to provide opportunities for individuals or teams of individuals to engage in community projects in such an area that meet unaddressed community and individual needs, including 

projects that would-

(i) Meet the needs of low-income children and youth aged 18 and younger, 

such as providing after-school 'safe660 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2522.200 

places', including schools, with opportunities for learning and recreation; or 

(ii) Be directed to other important 

unaddressed needs in such an area. 

(d) Programs that expand service program capacity. (1) A program that provides specialized training to individuals in service-learning and places the 

individuals after such training in positions, including positions as servicelearning coordinators, to facilitate 

service-learning in programs eligible 

for funding under Serve-America. 

(2) An AmeriCorps entrepreneur program that identifies, recruits, and 

trains gifted young adults of all backgrounds and assists them in designing 

solutions to community problems. 

(e) Campus-based programs. A campusbased program that is designed to provide substantial service in a community during the school term and during summer or other vacation periods 

through the use of-

(1) Students who are attending an institution of higher education, including 

students participating in a work-study 

program assisted under part C of title 

IV of the Higher Education Act of 1965 

(42 U.S.C. 2751 et seq.); 

(2) Teams composed of such students; 

or 

(3) Teams composed of a combination 

of such students and community residents. 

(f) Intergenerational programs. An intergenerational program that combines 

students, out-of-school youths, and 

older adults as participants to provide 

needed community services, including 

an intergenerational component for 

other AmeriCorps programs described 

in this subsection. 

(g) Youth development programs. A 

full-time, year-round youth corps program or full-time summer youth corps 

program, such as a conservation corps or youth service corps (including youth 

corps programs under subtitle I, the 

Public Lands Corps established under 

the Public Lands Corps Act of 1993, the 

Urban Youth Corps established under 

section 106 of the National and Community Service Trust Act of 1993, and 

other conservation corps or youth serv­ ice corps that perform service on Federal or other public lands or on Indian 

lands or Hawaiian home lands), that: 

(1) Undertakes meaningful service 

projects with visible public benefits, 

including natural resource, urban ren­ ovation, or human services projects; 

(2) Includes as participants youths 

and young adults between the ages of 

16 and 25, inclusive, including out-ofschool youths and other disadvantaged 

youths (such as youths with limited 

basic skills, youths in foster care who 

are becoming too old for foster care, 

youths of limited English proficiency, 

homeless youths, and youths who are individuals with disabilities) who are 

between those ages; and 

(3) Provides those participants who 

are youths and young adults with- (i) Crew-based, highly structured, and 

adult-supervised work experience, life 

skills, education, career guidance and 

counseling, employment training, and 

support services; and 

(ii) The opportunity to develop citizenship values and skills through serv­ ice to their community and the United 

States. 

(h) Individualized placement programs. 

An individualized placement program 

that includes regular group activities, 

such as leadership training and special 

service projects. 

(i) Other programs. Such other 

AmeriCorps programs addressing educational, public safety, human, or environmental needs as the Corporation 

may designate in the application. 

Subpart B-Participant Eligibility, 

Requirements, and Benefits 

§ 2522.200 What are the eligibility re- 9.uirements for an AmeriCorps participant? 

(a) Eligibility. An AmeriCorps participant must--- (l)(i) Be at least 17 years of age at the 

commencement of service; or (ii) Be an out-of-school youth 16 

years of age at the commencement of 

service participating in a program described in§ 2522.110(b)(3) or (g); 

(2)(i) Have a high school diploma or 

its equivalent; or (ii) Not have dropped out of elementary or secondary school to enroll as 

an AmeriCorps participant and must 

agree to obtain a high school diploma 

or its equivalent prior to using the education award; or 

661 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2522.205 

(iii) Obtain a waiver from the Corporation of the requirements in paragraphs (a)(2)(i) and (a)(2)(ii) of this section based on an independent evaluation secured by the program demonstrating that the individual is not 

capable of obtaining a high school diploma or its equivalent; or 

(iv) Be enrolled in an institution of 

higher education on an ability to benefit basis and be considered eligible for 

funds under section 484 of the Higher 

Education Act of 1965 (20 U.S.C. 1091); 

(3) Be a citizen, national, or lawful 

permanent resident alien of the United 

States. 

(b) Written declaration regarding high 

school diploma sufficient for enrollment. 

For purposes of enrollment, if an individual provides a written declaration 

under penalty of law that he or she 

meets the requirements in paragraph 

(a) of this section relating to high 

school education, a program need not 

obtain additional documentation of 

that fact. 

(c) Primary documentation of status as 

a U.S. citizen or national. The following 

are acceptable forms of certifying status as a U.S. citizen or national: 

(1) A birth certificate showing that 

the individual was born in one of the 50 

states, the District of Columbia, Puerto Rico, Guam, the U.S. Virgin Islands, 

American Samoa, or the Northern Mariana Islands; 

(2) A United States passport; 

(3) A report of birth abroad of a U.S. 

Citizen (FS-240) issued by the State Department; 

(4) A certificate of birth-foreign serv­ ice (FS 545) issued by the State Department; 

(5) A certification of report of birth 

(DS--1350) issued by the State Department; 

(6) A certificate of naturalization 

(Form N-550 or N-570) issued by the Immigration and Naturalization Service; or 

(7) A certificate of citizenship (Form 

N-560 or N-561) issued by the Immigration and Naturalization Service. 

(d) Primary documentation of status as 

a lawful permanent resident alien of the 

United States. The following are acceptable forms of certifying status as a 

lawful permanent resident alien of the 

United States: 

45 CFR Ch. XXV (10-1-12 Edition) 

(1) Permanent Resident Card, INS 

Form I-551; 

(2) Alien Registration Receipt Card, 

INS Form I-551; 

(3) A passport indicating that the 

INS has approved it as temporary evidence of lawful admission for permanent residence; or 

(4) A Departure Record (INS Form I94) indicating that the INS has approved it as temporary evidence of lawful admission for permanent residence. 

(e) Secondary documentation of citizenship or immigration status. If primary 

documentation is not available, the 

program must obtain written approval 

from the Corporation that other documentation is sufficient to demonstrate 

the individual's status as a U.S. citizen, U.S. national, or lawful permanent resident alien. 

[64 FR 37413, July 12, 1999, as amended at 67 

FR 45360, July 9, 2002] 

§ 2522.205 To whom must I apply suitability criteria relating to criminal 

history? 

You must apply suitability criteria 

relating to criminal history to a participant or staff position for which an 

individual receives a Corporation 

grant-funded living allowance, stipend, 

education award, salary, or other remuneration. 

[72 FR 48582, Aug. 24, 2007, as amended at 74 

FR 46506, Sept. 10, 2009] 

§ 2522.206 What suitability criteria 

must I apply to a covered position? 

An individual is ineligible to serve in 

a covered position if the individual: 

(a) Is registered, or required to be 

registered, on a State sex offender registry or the National Sex Offender Registry; or 

(b) Has been convicted of murder, as 

defined in section 1111 of title 18, 

United States Code. 

[74 FR 46506, Sept. 10, 2009] 

§ 2522.207 What are the procedures I 

must follow to determine an individual's suitability to serve in a cov­ ered position? 

In determining an individual's suitability to serve in a covered position, 

662 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2522.220 

you must follow the procedures in part 

2540 of this title. 

[72 FR 48582, Aug. 24, 2007] 

§ 2522.210 How are AmeriCorps participants recruited and selected? 

(a) Local recruitment and selection. In 

general, AmeriCorps participants will 

be selected locally by an approved 

AmeriCorps program, and the selection 

criteria will vary widely among the different programs. Nevertheless, 

AmeriCorps programs must select their 

participants in a fair and non-discriminatory manner which complies with 

part 2540 of this chapter. In selecting 

participants, programs must also com­ ply with the recruitment and selection 

requirements specified in this section. 

(b)(l) National and State recruitment 

and selection. The Corporation and each 

State Commission will establish a system to recruit individuals who desire 

to perform national service and to as­ sist the placement of these individuals 

in approved AmeriCorps positions, 

which may include positions available 

under titles I and II of the Domestic 

Volunteer Service Act of 1973 (42 U.S.C. 

4951 et seq.). The national and state re­ cruitment and placement system will 

be designed and operated according to 

Corporation guidelines. 

(2) Dissemination of information. The 

Corporation and State Commissions 

will disseminate information regarding 

available approved AmeriCorps positions through cooperation with sec­ ondary schools, institutions of higher 

education, employment service offices, 

community-based organizations, State 

vocational rehabilitation agencies 

within the meaning of the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) 

and other State agencies that primarily serve qualified individuals with 

disabilities, and other appropriate entities, particularly those organizations 

that provide outreach to disadvantaged 

youths and youths who are qualified 

individuals with disabilities. 

(c) National leadership pool-(1) Selection and training. From among individuals recruited under paragraph (b) of 

this section or nominated by service 

programs, the Corporation may select 

individuals with significant leadership 

potential, as determined by the Corporation, to receive special training to 

enhance their leadership ability. The 

leadership training will be provided by 

the Corporation directly or through a 

grant, contract, or cooperative agreement as the Corporation determines. 

(2) Emphasis on certain individuals. In 

selecting individuals to receive leadership training under this provision, the 

Corporation will make special efforts 

to select individuals who have served- (i) In the Peace Corps; 

(ii) As VISTA volunteers; 

(iii) As participants in AmeriCorps 

programs receiving assistance under 

parts 2520 through 2524 of this chapter; 

(iv) As participants in National Service Demonstration programs that received assistance from the Commission 

on National and Community Service; or 

(v) As members of the Armed Forces 

of the United States and who were honorably discharged from such service. 

(3) Assignment. At the request of a program that receives assistance, the 

Corporation may assign an individual 

who receives leadership training under 

paragraph (c)(l) of this section to work 

with the program in a leadership position and carry out assignments not 

otherwise performed by regular participants. An individual assigned to a program will be considered to be a participant of the program. 

§ 2522.220 What are the required terms 

of service for AmeriCorps participants? 

(a) Term of Service. A term of service 

may be defined as: 

(1) Full-time service. 1,700 hours of 

service during a period of not more than one year. 

(2) Part-time service. 900 hours of serv­ ice during a period of not more than 

two years. 

(3) Reduced part-time term of service. 

The Corporation may reduce the number of hours required to be served in 

order to receive an educational award 

for certain part-time participants serv­ ing in approved AmeriCorps positions. 

In such cases, the educational award 

will be reduced in direct proportion to 

the reduction in required hours of serv­ ice. These reductions may be made for 

summer programs, for categories of 

participants in certain approved 

AmeriCorps programs and on a case-by663 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2522.230 

case, individual basis as determined by 

the Corporation. 

(4) Summer programs. A summer program, in which less than 1700 hours of 

service are performed, are part-time 

programs. 

(b) Eligibility for subsequent term. A 

participant will only be eligible to serve a subsequent term of service if 

that individual has received a satisfactory performance review for any previous term of service in an approved 

AmeriCorps position, in accordance 

with the requirements of paragraph (d) 

of this section and §2526.15. Mere eligibility for a second or further term of 

service in no way guarantees a participant selection or placement. 

(c) Participant evaluation. For the 

purposes of determining a participant's 

eligibility for an educational award as described in § 2522.240(a) and eligibility 

to serve a second or additional term of 

service as described in paragraph (c) of 

this section, each AmeriCorps grantee 

is responsible for conducting a midterm and end-of-term evaluation. A 

mid-term evaluation is not required for a participant who is released early 

from a term of service or in other circumstances as approved by the Corporation. The end-of-term evaluation 

should consist of: 

(1) A determination of whether the 

participant: 

(i) Successfully completed the re­ quired term of service described in 

paragraph (a) of this section, making 

the participant eligible for an educational award as described in 

§ 2522.240(a); 

(ii) Was released from service for 

compelling personal circumstances, 

making the participant eligible for a pro-rated educational award as described in § 2522.230(a)(2); or (iii) Was released from service for 

cause, making the participant ineligible to receive an educational award 

for that term of service as described in 

§ 2522.230(b )(3); and 

(2) A participant performance and 

conduct review to determine whether 

the participant's service was satisfactory, which will assess whether the 

participant: 

(i) Has satisfactorily completed as­ signments, tasks, or projects, or, for 

those participants released from serv45 CFR Ch. XXV (10-1-12 Edition) 

ice early, whether the participant 

made a satisfactory effort to complete 

those assignments, tasks, or projects 

that the participant could reasonably 

have addressed in the time the participant served; and 

(ii) Has met any other criteria which 

had been clearly communicated both 

orally and in writing at the beginning 

of the term of service. 

(d) Limitation. The Corporation may 

set a minimum or maximum percentage of hours of a full-time, part-time, or reduced term of service described in 

paragraphs (a)(l),(a)(2), and (a)(3) of 

this section that a participant may en­ gage in training, education, or other 

similar approved activities 

(e) Grievance procedure. Any 

AmeriCorps participant wishing to con­ test a program's ruling of unsatisfactory performance may file a grievance 

according to the procedures set forth in 

part 2540 of this chapter. If that griev­ ance procedure or subsequent binding 

arbitration procedure finds that the 

participant did in fact satisfactorily 

complete a term of service, then that 

individual will be eligible to receive an 

educational award and/or be eligible to serve a second term of service. 

(f) Extension of term for disaster purposes. If approved by the Corporation, a program may permit an AmeriCorps 

participant performing service directly 

related to disaster relief efforts to con­ tinue in a term of service for a period 

of up to 90 days beyond the period otherwise specified. A period of service 

performed by an AmeriCorps participant in an originally agreed-upon term 

of service and service performed under 

this paragraph shall constitute a single 

term of service for the purposes of 

§2526.50(a) of this chapter. 

[59 FR 13796, Mar. 23, 1994, as amended at 73 

FR 53759, Sept. 17, 2008; 74 FR 46506, Sept. 10, 

2009; 75 FR 51410, Aug. 20, 2010] 

§ 2522.230 Under what circumstances 

may an AmeriCorps participant be 

released from completing a term of 

service, and what are the con­ sequences? 

An AmeriCorps program may release a participant from completing a term 

of service for compelling personal circumstances, as determined by the program, or for cause. 

664 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2522.230 

(a) Release for compelling personal circumstances. 

(1) An AmeriCorps program may re­ lease a participant upon a determination by the program, consistent with 

the criteria listed in paragraphs (a)(6) 

and (a)(7) of this section, that the participant is unable to complete the term 

of service because of compelling personal circumstances, if the participant 

has otherwise performed satisfactorily 

and has completed at least fi~een percent of the agreed term of service. 

(2) A participant who is released for 

compelling personal circumstances and 

who completes at least 15 percent of 

the required term of service is eligible 

for a pro-rated education award. 

(3) The program must document the 

basis for any determination that com­ pelling personal circumstances prevent a participant from completing a term 

of service. 

(4) Compelling personal circumstances include: 

(i) Those that are beyond the participant's control, such as, but not limited 

to: 

(A) A participant's disability or seri­ ous illness; 

(B) Disability, serious illness, or death of a participant's family member 

if this makes completing a term unrea­ sonably difficult or impossible; or 

(C) Conditions attributable to the 

program or otherwise unforeseeable 

and beyond the participant's control, 

such as a natural disaster, a strike, re­ location of a spouse, or the nonrenewal or premature closing of a project or program, that make completing a term 

unreasonably difficult or impossible; 

(ii) Those that the Corporation, has 

for public policy reasons, determined as such, including: 

(A) Military service obligations; 

(B) Acceptance by a participant of an opportunity to make the transition 

from welfare to work; or 

(C) Acceptance of an employment opportunity by a participant serving in a program that includes in its approved 

objectives the promotion of employment among its participants. 

(5) Compelling personal cir- cumstances do not include leaving a program: 

(i) To enroll in school; 

(ii) To obtain employment, other 

than in moving from welfare to work or in leaving a program that includes 

in its approved objectives the promotion of employment among its participants; or 

(iii) Because of dissatisfaction with 

the program. 

(6) As an alternative to releasing a participant, an AmeriCorps*State/National program may, after determining 

that compelling personal circumstances exist, suspend the participant's term of service for up to two 

years (or longer if approved by the Corporation based on extenuating circumstances) to allow the participant to 

complete service with the same or similar AmeriCorps program at a later 

time. 

(b) Release for cause. (1) A release for cause encompasses any circumstances 

other than compelling personal circumstances that warrant an individual's release from completing a term of 

service. 

(2) AmeriCorps programs must release for cause any participant who is 

convicted of a felony or the sale or distribution of a controlled substance during a term of service. 

(3) A participant who is released for cause may not receive any portion of 

the AmeriCorps education award or any other payment from the National 

Service Trust. 

(4) An individual who is released for cause must disclose that fact in any 

subsequent applications to participate 

in an AmeriCorps program. Failure to 

do so disqualifies the individual for an education award, regardless of whether 

the individual completes a term of 

service. 

(5) An AmeriCorps*State/National 

participant released for cause may con­ test the program's decision by filing a grievance. Pending the resolution of a grievance procedure filed by an individual to contest a determination by a program to release the individual for 

cause, the individual's service is con­ sidered to be suspended. For this type 

of grievance, a program may not-­

while the grievance is pending or as part of its resolution-provide a participant with federally-funded benefits 

(including payments from the National 

665 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2522.235 

Service Trust) beyond those attributable to service actually performed, 

without the program receiving written 

approval from the Corporation. 

(6) An individual's eligibility for a subsequent term of service in 

AmeriCorps will not be affected by release for cause from a prior term of 

service so long as the individual re­ ceived a satisfactory end-of-term performance review as described in 

§2522.220(c)(2) for the period served in 

the prior term. 

(7) Except as provided in paragraph 

(e) of this section, a term of service 

from which an individual is released 

for cause counts as one of the terms of 

service described in § 2522.235 for which 

an individual may receive the benefits 

described in §§2522.240 through 2522.250. 

(c) Suspended service. (1) A program 

must suspend the service of an individual who faces an official charge of a violent felony (e.g., rape, homicide) or 

sale or distribution of a controlled substance. 

(2) A program must suspend the service of an individual who is convicted of 

possession of a controlled substance. 

(3) An individual may not receive a 

living allowance or other benefits, and 

may not accrue service hours, during a 

period of suspension under this provision. 

(d) Reinstatement. (1) A program may 

reinstate an individual whose service was suspended under paragraph (c)(l) of 

this section if the individual is found 

not guilty or if the charge is dismissed. 

(2) A program may reinstate an individual whose service was suspended 

under paragraph (c)(2) of this section 

only if the individual demonstrates the 

following: 

(i) For an individual who has been 

convicted of a first offense of the possession of a controlled substance, the 

individual must have enrolled in a drug 

rehabilitation program; 

(ii) For an individual who has been 

convicted for more than one offense of 

the possession of a controlled substance, the individual must have suc­ cessfully completed a drug rehabilitation program. 

(e) Release prior to serving 15 percent of a term of service. If a participant is released for reasons other than misconduct prior to completing 15 percent 

45 CFR Ch. XXV (10-1-12 Edition) 

of a term of service, the term will not 

be considered one of the terms of serv­ ice described in §2522.220(b) for which 

an individual may receive the benefits 

described in §§2522.240 through 2522.250. 

[64 FR 37413, July 12, 1999, as amended at 73 

FR 53759, Sept. 17, 2008; 74 FR 46506, Sept. 10, 

2009; 75 FR 51410, Aug. 20, 2010] 

§ 2522.235 Is there a limit on the num­ ber of terms an individual may serve in an AmeriCorps State and 

National program? 

(a) General limitation. An individual 

may receive the benefits described in 

§ 2522.240 through § 2522.250 for no more 

than four terms of service in an AmeriCorps State and National program, regardless of whether those 

terms were served on a full-, part-, or 

reduced part-time basis, consistent 

with the limitations in §2526.50. 

(b) Early release. Except as provided 

in paragraph (c) of this section, a term 

of service from which an individual is 

released for compelling personal circumstances or for cause counts as one of the terms of service for which an individual may receive the benefits described in § 2522.240 through § 2522.250. 

(c) Release prior to serving fifteen percent of a term. If a person is released for 

reasons other than misconduct prior to 

completing fifteen percent of a term of 

service, the term will not be considered 

one of the terms of service for which an individual may receive the benefits described in §§2522.240 through 2522.250. 

[75 FR 51410, Aug. 20, 2010] 

§ 2522.240 What financial benefits do 

AmeriCorps participants serving in 

approved Am.eriCorps positions re­ ceive? 

(a) AmeriCorps education awards. An 

individual serving in an approved 

AmeriCorps State and National position may receive an education award 

from the National Service Trust upon 

successful completion of each of no more than four terms of service as defined in §2522.220, consistent with the 

limitations in §2526.50. 

(b) Living allowances-(l)Amount. Subject to the provisions of this part, any 

individual who participates on a fulltime basis in an AmeriCorps program 

carried out using assistance provided 

666 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2522.240 

pursuant to § 2521.30 of this chapter, including an AmeriCorps program that 

receives educational awards only pursuant to § 2521.30(c) of this chapter, will 

receive a living allowance in an amount equal to or greater than the 

average annual subsistence allowance 

provided to VISTA volunteers under 

§105 of the Domestic Volunteer Service 

Act of 1973 (42 U.S.C. 4955). This re­ quirement will not apply to any program that was in existence prior to 

September 21, 1993 (the date of the enactment of the National and Community Service Trust Act of 1993). 

(2) Maximum living allowance. With 

the exception of a professional corps 

described in § 2522.110(a)(3), the 

AmeriCorps living allowances may not 

exceed 200 percent of the average annual subsistence allowance provided to 

VISTA volunteers under section 105 of 

the Domestic Volunteer Service Act of 

1973 (42 U.S.C. 4955). A professional 

corps AmeriCorps program may provide a stipend in excess of the maximum, subject to the following conditions: (i) Corporation assistance may 

not be used to pay for any portion of 

the allowance; and 

(ii) The program must be operated directly by the applicant, selected on a 

competitive basis by submitting an application to the Corporation, and may 

not be included in a State's application 

for AmeriCorps program funds distributed by formula under §2521.30(a)(2) of 

this chapter. 

(3) Living allowances for part-time participants. Programs may, but are not 

required to, provide living allowances 

to individuals participating on a parttime basis (or a reduced term of parttime service authorized under 

§ 2522.220(a)(3). Such living allowances 

should be prorated to the living allowance authorized in paragraph (b)(l) of 

this section and will comply with such 

restrictions therein. 

(4) Waiver or reduction of living allowance for programs. The Corporation 

may, at its discretion, waive or reduce 

the living allowance requirements if a 

program can demonstrate to the satisfaction of the Corporation that such re­ quirements are inconsistent with the 

objectives of the program, and that 

participants will be able to meet the 

necessary and reasonable costs of living (including food, housing, and transportation) in the area in which the program is located. 

(5) Waiver or reduction of living allowance by participants. A participant may 

waive all or part of the receipt of a living allowance. The participant may revoke this waiver at any time during 

the participant's term of service. If the 

participant revokes the living allowance waiver, the participant may begin 

receiving his or her living allowance 

prospective from the date of the revocation; a participant may not receive 

any portion of the living allowance 

that may have accrued during the 

waiver period. 

(6) Limitation on Federal share. The 

Federal share, including Corporation 

and other Federal funds, of the total 

amount provided to an AmeriCorps 

participant for a living allowance is 

limited as follows: 

(i) In no case may the Federal share 

exceed 85% of the minimum required 

living allowance enumerated in paragraph (b)(l) of this section. 

(ii) For professional corps described 

in paragraph (b)(2)(i) of this section, 

Corporation and other Federal funds 

may be used to pay for no portion of 

the living allowance. 

(iii) If the minimum living allowance 

requirements has been waived or reduced pursuant to paragraph (b)(4) of 

this section and the amount of the living allowance provided to a participant 

has been reduced correspondingly-

(A) In general, the Federal share may 

not exceed 85% of the reduced living allowance; however, 

(B) If a participant is serving in a 

program that provides room or board, 

the Corporation will consider on a 

case-by-case basis allowing the portion 

of that living allowance that may be 

paid using Corporation and other Federal funds to be between 85% and 100%. 

(c) Financial benefits for participants 

during an extended term of service for disaster purposes. An AmeriCorps participant performing extended service under 

§2522.220(f) may continue to receive a 

living allowance under paragraph (b) 

and other benefits under §2522.250, but 

may not receive an additional 

667 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2522.245 

AmeriCorps educational award under 

paragraph (a). 

[59 FR 13796, Mar. 23, 1994, as amended at 71 

FR 10611, Mar. 2, 2006; 73 FR 53760, Sept. 17, 

2008; 74 FR 46506, Sept. 10, 2009; 75 FR 51410, 

Aug. 20, 2010] 

§ 2522.245 How are living allowances 

disbursed? 

A living allowance is not a wage and 

programs may not pay living allowances on an hourly basis. Programs 

must distribute the living allowance at 

regular intervals and in regular increments, and may increase living allowance payments only on the basis of increased living expenses such as food, 

housing, or transportation. Living allowance payments may only be made 

to a participant during the participant's term of service and must cease 

when the participant concludes the 

term of service. Programs may not provide a lump sum payment to a participant who completes the originally 

agreed-upon term of service in a shorter period of time. 

[73 FR 53760, Sept. 17, 2008] 

§ 2522.250 What other benefits do 

AmeriCorps participants serving in 

approved AmeriCorps positions re­ ceive? 

(a) Child Care. Grantees must provide 

child care through an eligible provider 

or a child care allowance in an amount 

determined by the Corporation to those 

full-time participants who need child 

care in order to participate. 

(1) Need. A participant is considered 

to need child care in order to participate in the program if he or she: 

(i) Is the parent or legal guardian of, 

or is acting in loco parentis for, a child 

under 13 who resides with the participant; 

(ii) Has a family income that does 

not exceed 75 percent of the State's median income for a family of the same 

size; 

(iii) At the time of acceptance into 

the program, is not currently receiving 

child care assistance from another 

source, including a parent or guardian, 

which would continue to be provided 

while the participant serves in the program; and 

45 CFR Ch. XXV (10-1-12 Edition) 

(iv) Certifies that he or she needs 

child care in order to participate in the 

program. 

(2) Provider eligibility. Eligible child 

care providers are those who are eligible child care providers as defined in 

the Child Care and Development Block 

Grant Act of 1990 (42 U.S.C. 9858n(5)). 

(3) Child care allowance. The amount 

of the child-care allowance may not ex­ ceed the applicable payment rate to an 

eligible provider established by the 

State for child care funded under the 

Child Care and Development Block 

Grant Act of 1990 (42 U.S.C. 9858c(4)(A)). 

(4) Corporation share. The Corporation 

will pay 100 percent of the child care 

allowance, or, if the program provides 

child care through an eligible provider, 

the actual cost of the care or the 

amount of the allowance, whichever is 

less. 

(b) Health care. (1) Grantees must provide to all eligible participants who 

meet the requirements of paragraph 

(b)(2) of this section health care cov­ erage that-

(i) Provides the minimum benefits 

determined by the Corporation; 

(ii) Provides the alternative minimum benefits determined by the Corporation; or 

(iii) Does not provide all of either the 

minimum or the alternative minimum 

benefits but that has a fair market 

value equal to or greater than the fair 

market value of a policy that provides 

the minimum benefits. 

(2) Participant eligibility. A full-time 

participant is eligible for health care 

benefits if he or she is not otherwise 

covered by a health benefits package 

providing minimum benefits established by the Corporation at the time 

he or she is accepted into a program. If, 

as a result of participation, or if, during the term of service, a participant 

demonstrates loss of coverage through 

no deliberate act of his or her own, 

such as parental or spousal job loss or 

disqualification from Medicaid, the 

participant will be eligible for health 

care benefits. 

(3) Corporation share. (i) Except as provided in paragraph (b)(3)(ii) of this 

section, the Corporation's share of the 

cost of heal th coverage may not exceed 

85 percent. 

668 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2522.415 

(ii) The Corporation will pay no share 

of the cost of a policy that does not 

provide the minimum or alternative 

minimum benefits described in paragraphs (b)(l)(i) and (b)(l)(ii) of this section. 

[59 FR 13796, Mar. 23, 1994, as amended at 70 

FR 39600, July 8, 2005] 

Subpart C-Application 

Requirements 

§ 2522.300 What are the application re­ quirements for AmeriCorps program grants? 

All eligible applicants seeking 

AmeriCorps program grants must---

(a) Provide a description of the specific program(s) being proposed, including the type of program and of how it 

meets the minimum program requirements described in § 2522.100; and 

(b) Comply with any additional requirements as specified by the Corporation in the application package. 

§ 2522.310 What are the application re­ quirements for AmeriCorps educational awards only? 

(a) Eligible applicants may apply for 

AmeriCorps educational awards only 

for one of the following eligible service 

positions: (1) A position for a participant in an AmeriCorps program that: 

(i) Is carried out by an entity eligible 

to receive support under part 2521 of 

this chapter; 

(ii) Would be eligible to receive assistance under this part, based on criteria established by the Corporation, 

but has not applied for such assistance; 

(2) A position facilitating servicelearning in a program described in 

parts 2515 through 2519 of this chapter; 

(3) A position involving service as a 

crew leader in a youth corps program or a similar position supporting an AmeriCorps program; and 

(4) Such other AmeriCorps positions as the Corporation considers to be appropriate. 

(b) Because programs applying only 

for AmeriCorps educational awards 

must, by definition, meet the same basic requirements as other approved 

AmeriCorps programs, applicants must 

comply with the same application re­ quirements specified in § 2522.300. 

§ 2522.320 [Reserved] 

§ 2522.330 [Reserved] 

§ 2522.340 How will I know if two 

projects are the same? 

The Corporation will consider two 

projects to be the same if the Corporation cannot identify a meaningful difference between the two projects based on a comparison of the following characteristics, among others: 

(a) The objectives and priorities of 

the projects; 

(b) The nature of the services provided; 

(c) The program staff, participants, 

and volunteers involved; 

(d) The geographic locations in which 

the services are provided; 

(e) The populations served; and 

(f) The proposed community partnerships. 

[73 FR 53760, Sept. 17, 2008] 

Subpart D-Selection of 

AmeriCorps Programs 

§ 2522.400 What process does the Corporation use to select new grantees? 

The Corporation uses a multi-stage 

process, which may include review by 

panels of experts, Corporation staff re­ view, and approval by the Chief Executive Officer or the Board of Directors, or their designee. 

[70 FR 39600, July 8, 2005] 

§ 2522.410 What is the role of the Corporation's Board of Directors in the 

selection process? 

The Board of Directors has general 

authority to determine the selection 

process, including priorities and selection criteria, and has authority to 

make grant decisions. The Board may 

delegate these functions to the Chief 

Executive Officer. 

[70 FR 39600, July 8, 2005] 

§ 2522.415 How does the grant selection process work? 

The selection process includes: 

(a) Determining whether your proposal complies with the application requirements, such as deadlines and eligibility requirements; 

669 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2522.420 

(b) Applying the basic selection criteria to assess the quality of your proposal; 

(c) Applying any applicable priorities 

or preferences, as stated in these regulations and in the applicable Notice of 

Funding Availability; and 

(d) Ensuring innovation and geographic, demographic, and programmatic diversity across the Corporation's national AmeriCorps portfolio. 

[70 FR 39600, July 8, 2005] 

§ 2522.420 What basic criteria does the 

Corporation use in making funding 

decisions? 

In evaluating your application for 

funding, the Corporation will assess: 

(a) Your program design; 

(b) Your organizational capability; 

and 

(c) Your program's cost-effectiveness 

and budget adequacy. 

[70 FR 39600, July 8, 2005] 

§ 2522.425 [Reserved] 

§ 2522.430 [Reserved] 

§ 2522.435 [Reserved] 

§ 2522.440 What weight does the Corporation give to each category of 

the basic criteria? 

In evaluating applications, the Corporation assigns the following weights 

for each category: 

Category Percentage 

Program design ................................................. 50 

Organizational capability ................................... 25 

Cost-effectiveness and budget adequacy ......... 25 

[70 FR 39600, July 8, 2005] 

§ 2522.445 [Reserved] 

§ 2522.448 [Reserved] 

§ 2522.450 What types of programs or program models may receive special consideration in the selection 

process? 

Following the scoring of proposals 

under § 2522.440 of this part, the Corporation will seek to ensure that its 

portfolio of approved programs includes a meaningful representation of 

45 CFR Ch. XXV (10-1-12 Edition) 

proposals that address one or more of 

the following priorities: 

(a) Program models: (1) Programs operated by community organizations, including faith-based organizations, or programs that support the efforts of 

community organizations, including 

faith-based organizations, to solve 

local problems; 

(2) Lower-cost professional corps programs, as defined in paragraph (a)(3) of 

§2522.110 of this chapter. 

(b) Program activities: (1) Programs 

that serve or involve children and 

youth, including mentoring of disadvantaged youth and children of prisoners; 

(2) Programs that address educational needs, including those that 

carry out literacy and tutoring activities generally, and those that focus on reading for children in the third grade or younger; 

(3) Programs that focus on homeland 

security activities that support and 

promote public safety, public health, 

and preparedness for any emergency, 

natural or man-made (this includes 

programs that help to plan, equip, 

train, and practice the response capabilities of many different response 

units ready to mobilize without warn­ ing for any emergency); 

(4) Programs that address issues relating to the environment; 

(5) Programs that support independent living for seniors or individuals with disabilities; 

(6) Programs that increase service 

and service-learning on higher education campuses in partnership with 

their surrounding communities; 

(7) Programs that foster opportunities for Americans born in the postWorld War II baby boom to serve and 

volunteer in their communities; and 

(8) Programs that involve commu­ nity-development by finding and using 

local resources, and the capacities, 

skills, and assets of lower-income people and their community, to rejuvenate 

their local economy, strengthen public 

and private investments in the community, and help rebuild civil society. 

(c) Programs supporting distressed com­ munities: Programs or projects that will 

be conducted in: 

(1) A community designated as an empowerment zone or redevelopment 

670 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2522.470 

area, targeted for special economic incentives, or otherwise identifiable as having high concentrations of low-in­ come people; 

(2) An area that is environmentally 

distressed, as demonstrated by Federal 

and State data; 

(3) An area adversely affected by Federal actions related to managing Federal lands that result in significant re­ gional job losses and economic dislocation; 

(4) An area adversely affected by re­ ductions in defense spending or the clo­ sure or realignment of military installation; 

(5) An area that has an unemployment rate greater than the national 

average unemployment for the most re­ cent 12 months for which State or Federal data are available; 

(6) A rural community, as demonstrated by Federal and State data; or 

(7) A severely economically distressed community, as demonstrated 

by Federal and State data. 

(d) Other programs: Programs that 

meet any additional priorities as the 

Corporation determines and disseminates in advance of the selection process. 

[70 FR 39600, July 8, 2005] 

§ 2522.455 How do I find out about additional priorities governing the se­ lection process? 

The Corporation posts discretionary 

funding opportunities addressing the 

Corporation's selection preferences and 

additional requirements on our website 

at www.nationalservice.gov and at 

www.grants.gov in advance of grant 

competitions 

[70 FR 39600, July 8, 2005] 

§ 2522.460 To what extent may the Corporation or a State commission con­ sider priorities other than those 

stated in these regulations or the 

Notice of Funding Availability? 

(a) The Corporation may give special 

consideration to a national service program submitted by a State commission 

that does not meet one of the Corporation's priorities if the State commission adequately explains why the State 

is not able to carry out a program that 

meets one of the Corporation's priorities, and why the program meets one of the State's priorities. 

(b) A State may apply priorities different than those of the Corporation in 

selecting its formula programs. 

[70 FR 39600, July 8, 2005] 

§ 2522.465 What information must a State commission submit on the relative strengths of applicants for 

State competitive funding? 

(a) If you are a State commission applying for State competitive funding, 

you must prioritize the proposals you 

submit in rank order based on their 

relative quality and according to the 

following table: 

If you submit this Then you must rank number of state competitive this number of proposals proposals to the corporation 

1 to 12 ..................................... At least top 5. 

13 to 24 ................................... At least top 10. 

25 or more ............................... At least top 15. 

(b) While the rankings you provide 

will not be determinative in the grant 

selection process, and the Corporation 

will not be bound by them, we will con­ sider them in our selection process. 

[70 FR 39600, July 8, 2005] 

§2522.470 What other factors or information may the Corporation con­ sider in making final funding decisions? 

(a) The Corporation will seek to en­ sure that our portfolio of AmeriCorps 

programs is programmatically, demographically, and geographically diverse 

and includes innovative programs, and 

projects in rural, high poverty, and 

economically distressed areas. (b) In applying the selection criteria 

under §§ 2522.420 through 2522.435, the 

Corporation may, with respect to a particular proposal, also consider one or more of the following for purposes of 

clarifying or verifying information in a proposal, including conducting due 

diligence to ensure an applicant's ability to manage Federal funds: 

(1) For an applicant that has previously received a Corporation grant, 

any information or records the applicant submitted to the Corporation, or that the Corporation has in its system 

of records, in connection with its previous grant (e.g. progress reports, site 

671 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2522.475 

visit reports, financial status reports, 

audits, HHS Account Payment Data 

Reports, Federal Cash Transaction Reports, timeliness of past reporting, 

etc.); 

(2) Program evaluations; 

(3) Member-related information from 

the Corporation's systems; 

(4) Other Corporation internal information, including information from 

the Office of Inspector General, administrative standards for State commissions, and reports on program training 

and technical assistance; 

(5) IRS Tax Form 990; 

(6) An applicant organization's an­ nual report; 

(7) Information relating to the applicant's financial management from Corporation records; 

(8) Member satisfaction indicators; 

(9) Publicly available information including: 

(i) Socio-economic and demographic 

data, such as poverty rate, unemployment rate, labor force participation, 

and median household income; 

(ii) Information on where an applicant and its activities fall on the U.S. 

Department of Agriculture's urbanrural continuum (Beale codes); 

(iii) Information on the nonprofit and 

philanthropic community, such as charitable giving per capita; 

(iv) Information from an applicant 

organization's website; and 

(v) U.S. Department of Education 

data on Federal Work Study and Community Service; and 

(10) Other information, following no­ tice in the relevant Notice of Funding 

Availability, of the specific information and the Corporation's intention to 

be able to consider that information in 

the review process. 

(c) Before approving a program grant 

to a State commission, the Corporation 

will consider a State commission's ca­ pacity to manage and monitor grants. 

[70 FR 39600, July 8, 2005] 

§2522.475 To what extent must I use the Corporation's selection criteria 

and priorities when selecting formula programs or operating sites? 

You must ensure that the selection 

criteria you use include the following 

criteria: 

45 CFR Ch. XXV (10-1-12 Edition) 

(a) The quality of the national serv­ ice program proposed to be carried out 

directly by the applicant or supported 

by a grant from the applicant. 

(b) The innovative aspects of the na­ tional service program, and the feasibility of replicating the program. 

(c) The sustainability of the national 

service program. 

(d) The quality of the leadership of 

the national service program, the past 

performance of the program, and the 

extent to which the program builds on existing programs. 

(e) The extent to which participants 

of the national service program are re­ cruited from among residents of the 

communities in which projects are to 

be conducted, and the extent to which 

participants and community residents are involved in the design, leadership, 

and operation of the program. 

(f) The extent to which projects 

would be conducted in one of the areas listed in §2522.450(c)(l) through (5) of 

this subpart. 

(g) In the case of applicants other 

than States, the extent to which the 

application is consistent with the application of the State in which the 

projects would be conducted. 

(h) Such other criteria as the Corporation considers to be appropriate, 

following appropriate notice. 

[70 FR 39600, July 8, 2005] 

§ 2522.480 Can a State's application for 

formula funds be rejected? 

Yes. Formula funds are not an entitlement. 

(a) Notification. If the Corporation re­ jects an application submitted by a State Commission under part 2550 of 

this chapter for funds described in 

§2521.30 of this chapter, the Corporation will promptly notify the State 

Commission of the reasons for the re­ jection of the application. 

(b) Revision. The Corporation will 

provide a State Commission notified 

under paragraph (a) of this section 

with a reasonable opportunity to revise 

and resubmit the application. At the 

request of the State Commission, the 

Corporation will provide technical as­ sistance to the State Commission as part of the resubmission process. The 

Corporation will promptly reconsider 

672 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2522.520 

an application resubmitted under this 

paragraph. 

(c) Redistribution. The amount of any 

State's allotment under §2521.30(a) of 

this chapter for a fiscal year that the 

Corporation determines will not be provided for that fiscal year will be available for redistribution by the Corporation to the States, Territories and Indian Tribes with approved AmeriCorps 

applications as the Corporation deems 

appropriate. 

[59 FR 13796, Mar. 23, 1994. Redesignated at 70 

FR 39600, July 8, 2005] 

§ 2522.485 How do I calculate my program's budgeted Corporation cost 

per member service year (MSY)? 

If you are an AmeriCorps national 

and community service program, you 

calculate your Corporation cost per 

MSY by dividing the Corporation's 

share of budgeted grant costs by the 

number of member service years you are awarded in your grant. You do not 

include child-care or the cost of the 

education award a member may earn through serving with your program. 

[70 FR 39603, July 8, 2005] 

Subpart E-Evaluation 

Requirements 

§ 2522.500 What is the purpose of this 

subpart? 

(a) This subpart sets forth the minimum performance measures and evaluation requirements that you as a Corporation applicant or grantee must follow. 

(b) The performance measures that 

you, as an applicant, propose when you 

apply will be considered in the review 

process and may affect whether the 

Corporation selects you to receive a grant. Your performance related to 

your approved measures will influence 

whether you continue to receive funding. 

(c) Performance measures and evaluations are designed to strengthen 

your AmeriCorps program and foster 

continuous improvement, and help 

identify best practices and models that 

merit replication, as well as programmatic weaknesses that need attention. 

[70 FR 39603, July 8, 2005] 

§ 2522.510 To whom does this subpart 

apply? 

This subpart applies to you if you are a Corporation grantee administering an AmeriCorps grant, including an Education Award Program grant, or if 

you are applying to receive AmeriCorps 

funding from the Corporation. 

[70 FR 39603, July 8, 2005] 

§ 2522.520 What special terms are used 

in this subpart? 

The following definitions apply to 

terms used in this subpart of the regulations: 

(a) Approved application means the 

application approved by the Corporation or, for formula programs, by a State commission. 

(b) Community beneficiaries refers to 

persons who receive services or benefits from a program, but not to 

AmeriCorps members or to staff of the 

organization operating the program. 

(c) Outputs are the amount or units 

of service that members or volunteers 

have completed, or the number of com­ munity beneficiaries the program has 

served. Outputs do not provide information on benefits or other changes in 

communities or in the lives of mem­ bers or community beneficiaries. Examples of outputs could include the 

number of people a program tutors, 

counsels, houses, or feeds. 

(d) Intermediate-outcomes specify a change that has occurred in commu­ nities or in the lives of community 

beneficiaries or members, but is not 

necessarily a lasting benefit for them. 

They are observable and measurable indications of whether or not a program 

is making progress and are logically 

connected to end outcomes. An exam­ ple would be the number and percentage of students who report reading more books as a result of their participation in a tutoring program. 

(e) Internal evaluation means an evaluation that a grantee performs inhouse without the use of an independent external evaluator. 

(f) End-outcomes specify a change that 

has occurred in communities or in the 

lives of community beneficiaries or members that is significant and lasting. These are actual benefits or changes for participants during or after 

673 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2522.530 

a program. For example, in a tutoring 

program, the end outcome could be the 

percent and number of students who 

have improved their reading scores to 

grade-level, or other specific measures of academic achievement. 

(g) Grantee includes subgrantees, programs, and projects. 

(h) National performance measures are performance measures that the Corporation develops. 

(i) You refers to a grantee or applicant organization. 

[70 FR 39603, July 8, 2005; 70 FR 48882, Aug. 22, 

2005] 

§ 2522.530 May I use the Corporation's 

program grant funds for perform­ ance measurement and evaluation? 

If performance measurement and 

evaluation costs were approved as part 

of your grant, you may use your program grant funds to support them, con­ sistent with the level of approved costs 

for such activities in your grant award. 

[70 FR 39603, July 8, 2005] 

§ 2522.540 Do the costs of performance 

measurement or evaluation count 

towards the statutory cap on administrative costs? 

No, the costs of performance meas­ urement and evaluation do not count 

towards the statutory five percent cap on administrative costs in the grant, as provided in §2540.110 of this chapter. 

[70 FR 39603, July 8, 2005] 

PERFORMANCE MEASURES: 

REQUIREMENTS AND PROCEDURES 

§ 2522.550 What basic requirements 

must I follow in measuring performance under my grant? 

All grantees must establish, track, 

and assess performance measures for 

their programs. As a grantee, you must ensure that any program under your 

oversight fulfills performance measure and evaluation requirements. In addition, you must: 

(a) Establish ambitious performance measures in consultation with the Corporation, or the State commission, as appropriate, following §§ 2422.560 

through 2422.660 of this subpart; 

(b) Ensure that any program under 

your oversight collects and organizes 

45 CFR Ch. XXV (10-1-12 Edition) 

performance data on an ongoing basis, 

at least annually; 

(c) Ensure that any program under 

your oversight tracks progress toward 

meeting your performance measures; 

(d) Ensure that any program under 

your oversight corrects performance 

deficiencies promptly; and 

(e) Accurately and fairly present the 

results in reports to the Corporation. 

[70 FR 39603, July 8, 2005] 

§ 2522.560 What are performance measures and performance meas­ urement? 

(a) Performance measures are meas­ urable indicators of a program's performance as it relates to member serv­ ice activities. 

(b) Performance measurement is the 

process of regularly measuring the 

services provided by your program and 

the effect your program has in communities or in the lives of members or community beneficiaries. 

(c) The main purpose of performance 

measurement is to strengthen your 

AmeriCorps program and foster contin­ uous improvement and to identify best 

practices and models that merit replication. Performance measurement 

will also help identify programmatic 

weaknesses that need attention. 

[70 FR 39603, July 8, 2005] 

§ 2522.570 What information on performance measures must my grant 

application include? 

You must submit all of the following as part of your application for each 

program: 

(a) Proposed performance measures, as described in § 2522.580 and § 2522.590 of 

this part. 

(b) Estimated performance data for 

the program years for which you submit your application; and 

(c) Actual performance data, where 

available, as follows: 

(i) For continuation programs, performance data over the course of the 

grant to date; and 

(ii) For recompeting programs, performance data for the preceding threeyear grant cycle. 

[70 FR 39603, July 8, 2005] 

674 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2522.620 

§ 2522.580 What performance measures am I required to submit to the Corporation? 

(a) When applying for funds, you 

must submit, at a minimum, the following performance measures: 

(1) One set of aligned performance 

measures (one output, one intermediate-outcome, and one end-outcome) that capture the results of your 

program's primary activity, or area of 

significant activity for programs whose 

design precludes identifying a primary 

activity; and 

(2) Any national performance measures the Corporation may require, as specified in paragraph (b) of §2522.590. 

(b) For example, a tutoring program 

might use the following aligned performance measures: 

(1) Output: Number of students that 

participated in a tutoring program; 

(2) Intermediate-Outcome: Percent of 

students reading more books; and 

(3) End-Outcome: Number and percent of students who have improved 

their reading score to grade level. 

(c) The Corporation encourages you 

to exceed the minimum requirements 

expressed in this section and expects, 

in second and subsequent grant cycles, 

that you will more fully develop your 

performance measures, including establishing multiple performance indicators, and improving and refining 

those you used in the past. Any performance measures you submit beyond 

what is required in paragraph (a)(l) of 

this section may or may not be aligned 

sets of measures. 

[70 FR 39603, July 8, 2005] 

§ 2522.590 Who develops my perform­ ance measures? 

(a) You are responsible for developing 

your program-specific performance 

measures through your own internal 

process. 

(b) In addition, the Corporation may, 

in consultation with grantees, establish performance measures that will 

apply to all Corporation-sponsored programs, which you will be responsible 

for collecting and meeting. 

[70 FR 39603, July 8, 2005] 

§ 2522.600 Who approves my perform­ ance measures? 

(a) The Corporation will review and 

approve performance measures, as part 

of the grant application review process, 

for all non-formula programs. If the 

Corporation selects your application 

for funding, the Corporation will approve your performance measures as part of your grant award. 

(b) If you are a program submitting an application under the State formula 

category, the applicable State commission is responsible for reviewing and 

approving your performance measures. The Corporation will not separately approve these measures. 

[70 FR 39603, July 8, 2005] 

§ 2522.610 What is the difference in 

performance measurements re­ quirements for competitive and formula programs? 

(a) Except as provided in paragraph 

(b) of this section, State commissions are responsible for making the final determination of performance measures for State formula programs, while the 

Corporation makes the final determination for all other programs. 

(b) The Corporation may, through 

the State commission, require that formula programs meet certain national 

performance measures above and beyond what the State commission has 

individually negotiated with its formula grantees. 

(c) While State commissions must 

hold their sub-grantees responsible for 

their performance measures, a State 

commission, as a grantee, is responsible to the Corporation for its formula 

programs' performance measures. 

[70 FR 39603, July 8, 2005] 

§ 2522.620 How do I report my performance measures to the Corporation? 

The Corporation sets specific reporting requirements, including frequency 

and deadlines, for performance meas­ ures in the grant award. 

(a) In general, you are required to re­ port on the actual results that oc­ curred when implementing the grant 

and to regularly measure your program's performance. 

675 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2522.630 

(b) Your report must include the re­ sults on the performance measures approved as part of your grant award. 

(c) At a minimum you are required to 

report on outputs at the end of year one and outputs and intermediate out­ comes at the end of years two and 

three. We encourage you to exceed 

these minimum requirements. 

[70 FR 39603, July 8, 2005, as amended at 73 

FR 53760, Sept. 17, 2008] 

§ 2522.630 What must I do if I am not 

able to meet my performance meas­ ures? 

If you are not on track to meet your 

performance measures, you must develop and submit to the Corporation, or the State commission for formula 

programs, a corrective action plan, 

consistent with paragraph (a) of this 

section, or submit a request to the Corporation, or the State commission for 

formula programs, consistent with 

paragraph (b) of this section, to amend 

your requirements under the circumstances described in § 2522.640 of 

this subpart. 

(a) Your corrective action plan must 

be in writing and include all of the following: 

(1) The factors impacting your performance goals; 

(2) The strategy you are using and 

corrective action you are taking to get 

back on track toward your established 

performance measures; and 

(3) The timeframe in which you plan 

to achieve getting back on track with 

your performance measures. (b) A request to amend your perform­ ance measures must include all of the 

following: 

(1) Why you are not on track to meet 

your performance requirements; 

(2) How you have been tracking performance measures; 

(3) Evidence of the corrective action 

you have taken; 

( 4) Any new proposed performance measures or targets; and 

(5) Your plan to ensure that you meet 

any new measures. (c) You must submit your plan under 

paragraph (a) of this section, or your 

request under paragraph (b) of this sec­ tion, within 30 days of determining 

that you are not on track to meeting 

your performance measures. 

45 CFR Ch. XXV (10-1-12 Edition) 

(d) If you are a formula program, the 

State commission that approves the 

plan under paragraph (a) of this section or the request to amend your perform­ ance measures under paragraph (b) of 

this section, must forward an information copy to the Corporation's 

AmeriCorps program office within 15 

days of approving the plan or the re­ quest. 

[70 FR 39603, July 8, 2005] 

§ 2522.640 Under what circumstances 

may I change my performance 

measures? 

(a) You may change your perform­ ance measures only if the Corporation 

or, for formula programs, the State 

commission, approves your request to 

do so based on your need to: 

(1) Adjust your performance measure or target based on experience so that 

your program's goals are more realistic 

and manageable; 

(2) Replace a measure related to one issue area with one related to a different issue area that is more aligned 

with your program service activity. 

For example, you may need to replace an objective related to health with one related to the environment; 

(3) Redefine the service that individuals perform under the grant. For ex­ ample, you may need to define your 

service as tutoring adults in English, as opposed to operating an after-school 

program for third-graders; 

(4) Eliminate an activity because you 

have been unable to secure necessary 

matching funding; or (5) Replace one measure with an­ other. For example, you may decide 

that you want to replace one measure of literacy tutoring (increased attend­ ance at school) with another (percentage of students who are promoted to 

the next grade level). 

(b) [Reserved] 

[70 FR 39603, July 8, 2005] 

§ 2522.650 What happens if I fail to 

meet the performance measures included in my grant? 

(a) If you are significantly under-performing based on the performance measures approved in your grant, or fail to collect appropriate data to allow 

performance measurement, the Corporation, or the State commission for 

676 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2522.710 

formula grantees, may specify a period 

of correction, after consulting with 

you. As a grantee, you must report re­ sults at the end of the period of correc­ tion. At that point, if you continue to 

under-perform, or fail to collect appropriate data to allow performance meas­ urement, the Corporation may take one or more of the following actions: 

(1) Reduce the amount of your grant; 

(2) Suspend or terminate your grant; 

(3) Use this information to assess any 

application from your organization for a new AmeriCorps grant or a new grant 

under another program administered 

by the Corporation; 

( 4) Amend the terms of any Corporation grants to your organization; or 

(5) Take other actions that the Corporation deems appropriate. 

(b) If you are a State commission 

whose formula program(s) is significantly under-performing or failing to 

collect appropriate data to allow performance measurement, we encourage 

you to take action as delineated in 

paragraph (a) of this section. 

[70 FR 39603, July 8, 2005] 

EVALUATING PROGRAMS: REQUIREMENTS 

AND PROCEDURES 

§2522.700 How does evaluation differ 

from performance measurement? 

(a) Evaluation is a more in-depth, 

rigorous effort to measure the impact 

of programs. While performance meas­ urement and evaluation both include 

systematic data collection and meas­ urement of progress, evaluation uses scientifically-based research methods 

to assess the effectiveness of programs 

by comparing the observed program 

outcomes with what would have happened in the absence of the program. 

Unlike performance measures, evaluations estimate the impacts of programs 

by comparing the outcomes for individuals receiving a service or participating in a program to the outcomes 

for similar individuals not receiving a service or not participating in a program. For example, an evaluation of a literacy program may compare the 

reading ability of students in a program over time to a similar group of 

students not participating in a program. 

(b) Performance measurement is the 

process of systematically and regularly 

collecting and monitoring data related 

to the direction of observed changes in 

communities, participants (members), 

or end beneficiaries receiving your program's services. It is intended to provide an indication of your program's 

operations and performance. In con­ trast to evaluation, it is not intended 

to establish a causal relationship between your program and a desired ( or undesired) program outcome. For ex­ ample, a performance measure for a literacy program may include the percentage of students receiving services 

from your program who increase their 

reading ability from "below grade 

level" to "at or above grade level". 

This measure indicates something good 

is happening to your program's service 

beneficiaries, but it does not indicate 

that the change can be wholly attributed to your program's services. 

[70 FR 39603, July 8, 2005] 

§2522.710 What are my evaluation re­ quirements? 

(a) If you are a State commission, 

you must establish and enforce evaluation requirements for your State formula subgrantees, as you deem appropriate. 

(b) If you are a State competitive or direct Corporation AmeriCorps grantee 

(other than an Education Award Program grantee), and your average annual Corporation program grant is 

$500,000 or more, you must arrange for 

an independent evaluation of your program, and you must submit the evaluation with any application to the Corporation for competitive funds as re­ quired in § 2522. 730 of this subpart. 

(c) If you are a State competitive or 

direct Corporation AmeriCorps grantee 

whose average annual Corporation program grant is less than $500,000, or an 

Education Award Program grantee, 

you must conduct an internal evaluation of your program, and you must 

submit the evaluation with any application to the Corporation for competitive funds as required in §2522.730 of 

this subpart. 

(d) The Corporation may, in its discretion, supersede these requirements 

677 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2522.720 

with an alternative evaluation approach, including one conducted by the 

Corporation at the national level. 

(e) Grantees must cooperate fully 

with all Corporation evaluation activities. 

[70 FR 39603, July 8, 2005] 

§2522.720 How many years must my 

evaluation cover? 

(a) If you are a State formula grantee, you must conduct an evaluation, as your State commission requires. 

(b) If you are a State competitive or direct Corporation grantee, your evaluation must cover a minimum of one year but may cover longer periods. 

[70 FR 39603, July 8, 2005] 

§2522.730 How and when do I submit 

my evaluation to the Corporation? 

(a) If you are an existing grantee re­ competing for AmeriCorps funds for 

the first time, you must submit a sum­ mary of your evaluation efforts or plan 

to date, and a copy of any evaluation 

that has been completed, as part of 

your application for funding. 

(b) If you again compete for 

AmeriCorps funding after a second 

three-year grant cycle, you must submit the completed evaluation with 

your application for funding. 

[70 FR 39603, July 8, 2005] 

§2522.740 How will the Corporation use my evaluation? 

The Corporation will consider the 

evaluation you submit with your application as follows: 

(a) If you do not include with your 

application for AmeriCorps funding a summary of the evaluation, or the 

evaluation itself, as applicable, under 

§ 2522. 730, the Corporation reserves the 

right to not consider your application. 

(b) If you do submit an evaluation 

with your application, the Corporation 

will consider the results of your evaluation in assessing the quality and 

outcomes of your program. 

[70 FR 39603, July 8, 2005] 

§ 2522.800 How will the Corporation 

evaluate individual AmeriCorps 

programs? 

The Corporation will evaluate programs based on the following: (a) The 

45 CFR Ch. XXV (10-1-12 Edition) 

extent to which the program meets the 

objectives established and agreed to by 

the grantee and the Corporation before 

the grant award; 

(b) The extent to which the program 

is cost-effective; and 

(c) The effectiveness of the program 

in meeting the following legislative objectives: (1) Providing direct and demonstrable services and projects that 

benefit the community by addressing 

educational, public safety, human, or environmental needs; 

(2) Recruiting and enrolling diverse 

participants consistent with the re­ quirements of part 2540 of this chapter, 

based on economic background, race, 

ethnicity, age, gender, marital status, 

education levels, and disability; 

(3) Promoting the educational 

achievement of each participant based on earning a high school diploma or its 

equivalent and future enrollment in 

and completion of increasingly higher 

levels of education; 

(4) Encouraging each participant to 

engage in public and community serv­ ice after completion of the program 

based on career choices and participation in other service programs; 

(5) Promoting an ethic of active and 

productive citizenship among participants; 

(6) Supplying additional volunteer as­ sistance to community agencies without providing more volunteers than can be effectively utilized; 

(7) Providing services and activities 

that could not otherwise be performed 

by employed workers and that will not 

supplant the hiring of, or result in the 

displacement of, employed workers; 

and 

(8) Other criteria determined and 

published by the Corporation. 

[59 FR 13796, Mar. 23, 1994. Redesignated at 70 

FR 39603, July 8, 2005] 

§ 2522.810 What will the Corporation 

do to evaluate the overall success of 

the Am.eriCorps programs? 

(a) The Corporation will conduct 

independent evaluations of programs, 

including in-depth studies of selected 

programs. These evaluations will con­ sider the opinions of participants and 

members of the community where serv­ ices are delivered. Where appropriate 

these studies will compare participants 

678 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2522.820 

with individuals who have not participated in service programs. These evaluations will: (1) Study the extent to 

which the national service impacts involved communities; 

(2) Study the extent to which na­ tional service increases positive attitudes among participants regarding the 

responsibilities of citizens and their 

role in solving community problems; 

(3) Study the extent to which na­ tional service enables participants to 

afford post-secondary education with 

fewer student loans; 

(4) Determine the costs and effective­ ness of different program models in 

meeting program objectives including 

full- and part-time programs, programs 

involving different types of national 

service, programs using different re­ cruitment methods, programs offering 

alternative non-federally funded 

vouchers or post-service benefits, and 

programs utilizing individual placements and teams; 

(5) Determine the impact of programs 

in each State on the ability of VISTA 

and National Senior Volunteer Corps, 

each regular and reserve component of 

the Armed Forces, and the Peace Corps 

to recruit individuals residing in that 

State; and 

(6) Determine the levels of living allowances paid in all AmeriCorps programs and American Conservation and 

Youth Corps, individually, by State, 

and by region and determine the effects 

that such living allowances have had on the ability of individuals to participate in such programs. 

(b) The Corporation will also determine by June 30, 1995: (1) Whether the 

State and national priorities designed 

to meet educational, public safety, 

human, or environmental needs are being addressed; 

(2) Whether the outcomes of both 

stipended and nonstipended service 

programs are defined and measured appropriately; 

(3) Whether stipended service programs, and service programs providing 

educational benefits in return for serv­ ice, should focus on economically disadvantaged individuals or at risk 

youth, or whether such programs 

should include a mix of individuals, including individuals from middle and 

upper income families; 

(4) The role and importance of stipends and educational benefits in 

achieving desired outcomes in the serv­ ice programs; 

(5) The income distribution of 

AmeriCorps participants, to determine 

the level of participation of economically disadvantaged individuals. The 

total income of participants will be determined as of the date the participant was first selected to participate in a program and will include family total 

income unless the evaluating entity determines that the participant was independent at the time of selection. Definitions for "independent" and "total 

income" are those used in section 

480(a) of the Higher Education Act of 

1965; 

(6) The amount of assistance provided 

under the AmeriCorps programs that 

has been expended for projects con­ ducted in areas classified as empowerment zones (or redevelopment areas), 

in areas that are targeted for special 

economic incentives or are otherwise 

identifiable as having high concentrations of low-income people, in areas that are environmentally distressed or adversely affected by Federal actions 

related to the management of Federal 

lands, in areas that are adversely affected by reductions in defense spending, or in areas that have an unemployment rate greater than the national 

average unemployment rate for the 

most recent 12 months for which satisfactory data are available; and 

(7) The implications of the results of 

these studies as appropriate for authorized funding levels. 

[59 FR 13796, Mar. 23, 1994. Redesignated at 70 

FR 39603, July 8, 2005] 

§ 2522.820 Will information on individual participants be kept con­ fidential? 

(a) Yes. The Corporation will maintain the confidentiality of information 

regarding individual participants that 

is acquired for the purpose of the evaluations described in §2522.540. The Corporation will disclose individual participant information only with the prior 

written consent of the participant. 

However, the Corporation may disclose 

aggregate participant information. 

(b) Grantees and subgrantees that re­ ceive assistance under this chapter 

679 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2522.900 

must comply with the prov1s1ons of 

paragraph (a) of this section. 

[59 FR 13796, Mar. 23, 1994. Redesignated at 70 

FR 39603, July 8, 2005] 

Subpart F-Program Management 

Requirements for Grantees 

SOURCE: 70 FR 39606, July 8, 2005, unless 

otherwise noted. 

§ 2522.900 What definitions apply to 

this subpart? 

Tutor is defined as someone whose 

primary goal is to increase academic 

achievement in reading or other core subjects through planned, consistent, 

45 CFR Ch. XXV (10-1-12 Edition) 

one-to-one or small-group sessions and 

activities that build on the academic 

strengths of students in kindergarten 

through 12th grade, and target their 

academic needs. A tutor does not include someone engaged in other aca­ demic support activities, such as men­ toring and after-school program support, whose primary goal is something 

other than increasing academic 

achievement. For example, providing a safe place for children is not tutoring, even if some of the program activities 

focus on homework help. 

§ 2522.910 What basic qualifications 

must an AmeriCorps member have 

to serve as a tutor? 

If the tutor is: Then the tutor must meet the following qualifications: 

(a) Is considered to be an employee of the Local Edu- Paraprofessional qualifications under No Child Left Behind Act. as recation Agency or school, as determined by State quired in 34 CFR 200.58 

law. 

(b) Is not considered to be an employee of the Local (1) High School diploma or its equivalent, or a higher degree; and 

Education Agency or school, as determined by 

State law. 

(2) Successful completion of pre- and in-service specialized training, as 

required in § 2522.940 of this subpart. 

[59 FR 13796, Mar. 23, 1994, as amended at 74 

FR 46506, Sept. 10, 2009] 

§ 2522.920 Are there any exceptions to 

the qualifications requirements? 

The qualifications requirements in 

§ 2522.910 of this subpart do not apply to a member who is a K-12 student tutoring younger children in the school or after school as part of a structured, 

school-managed cross-grade tutoring 

program. 

§ 2522.930 [Reserved] 

§ 2522.940 What are the requirements 

for a program in which AmeriCorps 

members serve as tutors? 

A program in which members engage 

in tutoring for children must: 

(a) Articulate appropriate criteria for 

selecting and qualifying tutors, including the requirements in §2522.910 of 

this subpart, and certify that selected 

tutors meet the requirements in 

§2522.910. 

(b) Identify the strategies or tools it 

will use to assess student progress and measure student outcomes; 

(c) Certify that the tutoring cur­ riculum and pre-service and in-service 

training content are high-quality and 

research-based, consistent with the instructional program of the local educational agency and with State aca­ demic content standards. 

(d) Include appropriate member su­ pervision by individuals with expertise 

in tutoring; and 

(e) Provide specialized high-quality 

and research-based, member pre-service and in-service training consistent 

with the activities the member will 

perform. 

[70 FR 39606, July 8, 2005, as amended at 74 

FR 46506, Sept. 10, 2009] 

§ 2522.950 What requirements and 

qualifications apply if my program 

focuses on supplemental academic 

support activities other than tutoring? 

(a) If your program does not involve 

tutoring as defined in § 2522.900 of this 

subpart, the Corporation will not impose the requirements in § 2522.910 

through § 2522.940 of this subpart on your program. 

(b) At a minimum, you must articulate in your application how you will 

recruit, train, and supervise members 

680 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2523.60 

to ensure that they have the qualifications and skills necessary to provide 

the service activities in which they 

will be engaged. 

PART 2523-AGREEMENTS WITH 

OTHER FEDERAL AGENCIES FOR 

THE PROVISION OF AMERICORPS 

PROGRAM ASSISTANCE 

Sec. 

2523.10 Are Federal agencies eligible to 

apply for AmeriCorps program funds? 

2523.20 Which Federal agencies may apply 

for such funds? 

2523.30 Must Federal agencies meet the requirements imposed on grantees under 

parts 2521 and 2522 of this chapter? 

2523.40 For what purposes should Federal 

agencies use AmeriCorps program funds? 

2523.50 What types of grants are Federal 

agencies eligible to receive? 

2523.60 May Federal agencies enter into 

partnerships or participate in consortia? 

2523.70 Will the Corporation give special 

consideration to Federal agency applications that address certain needs? 

2523.80 Are there restrictions on the use of 

Corporation funds? 

2523.90 Is there a matching requirement for 

Federal agencies? 

2523.100 Are participants in programs operated by Federal agencies Federal em­ ployees? 

2523.110 Can Federal agencies submit multiple applications? 

2523.120 Must Federal agencies consult with 

State Commissions? 

AUTHORITY: 42 U.S.C. 12571-12595. 

SOURCE: 59 FR 13804, Mar. 23, 1994, unless 

otherwise noted. 

§ 2523.10 Are Federal agencies eligible 

to apply for AmeriCorps program 

funds? 

Yes. Federal agencies may apply for 

and receive AmeriCorps funds under 

parts 2521 and 2522 of this chapter, and 

they are eligible to receive up to onethird of the funds available for com­ petitive distribution under 

§2521.30(b)(3) of this chapter. The Corporation may enter into a grant, contract or cooperative agreement with 

another Federal agency to support an 

AmeriCorps program carried out by the 

agency. The Corporation may transfer 

funds available to it to other Federal 

agencies. 

§ 2523.20 Which Federal agencies may 

apply for such funds? 

The Corporation will consider applications only from Executive Branch 

agencies or departments. Bureaus, divisions, and local and regional offices of 

such departments and agencies can only apply through the central department or agency; however, it is possible 

for the department or agency to submit an application proposing more than 

one program. 

§ 2523.30 Must Federal agencies meet 

the requirements imposed on grant­ ees under parts 2521 and 2522 of 

this chapter? 

Yes, except as provided in § 2523.90. 

Federal agency programs must meet 

the same requirements and serve the same purposes as all other applicants 

seeking support under part 2522 of this 

chapter. 

§ 2523.40 For what purposes should 

Federal agencies use AmeriCorps 

program funds? 

AmeriCorps funds should enable Federal agencies to establish programs 

that leverage agencies' existing re­ sources and grant-making powers toward the goal of integrating service more fully into agencies' programs and 

activities. Agencies should plan to ultimately support new service initiatives 

out of their own budgets and appropriations. 

§ 2523.50 What types of funds are Federal agencies eligible to receive? 

Federal agencies may apply for planning and operating funds subject to the 

terms established by the Corporation 

in §2521.20 of this chapter, except that 

operating grants will be awarded with 

the expectation that the Federal agencies will support the proposed programs from their own budgets once the 

Corporation grant(s) expire. 

§ 2523.60 May Federal agencies enter 

into partnerships or participate in 

consortia? 

Yes. Such partnerships or consortia 

may consist of other Federal agencies, 

Indian Tribes, subdivisions of States, 

community based organizations, institutions of higher education, or other 

non-profit organizations. Partnerships 

681 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2523.70 

and consortia must be approved by the 

Corporation. 

§2523.70 Will the Corporation give 

special consideration to Federal 

agency applications that address 

certain needs? 

Yes. The Corporation will give special consideration to those applications 

that address the national priorities es­ tablished by the Corporation. The Corporation may also give special consideration to those applications that demonstrate the agency's intent to leverage its own funds through a Corporation-approved partnership or consor­ tium, by raising other funds from Federal or non-Federal sources, by giving 

grantees incentives to build service opportunities into their programs, by 

committing appropriate in-kind re­ sources, or by other means. 

§ 2523.80 Are there restrictions on the use of Corporation funds? 

Yes. The supplantation and non­ displacement provisions specified in 

part 2540 of this chapter apply to the 

Federal AmeriCorps programs supported with such assistance. 

§ 2523.90 Is there a matching requirement for Federal agencies? 

No. A Federal agency is not required 

to match funds in programs that re­ ceive support under this chapter. However, Federal agency subgrantees are required to match funds in accordance 

with the requirements of §2521.30(g) 

and §2522.240(b)(6) of this chapter. 

[59 FR 13804, Mar. 23, 1994, as amended at 73 

FR 53760, Sept. 17, 2008] 

§ 2523.100 Are participants in programs operated by Federal agencies 

Federal employees? 

No. Participants in these programs 

have the same employee status as participants in other approved AmeriCorps 

programs, and are not considered Federal employees, except for the purposes 

of the Family and Medical Leave Act as specified in § 2540.220(b) of this chapter. 

§2523.110 Can Federal agencies submit multiple applications? 

No. The Corporation will only con­ sider one application from a Federal 

45 CFR Ch. XXV (10-1-12 Edition) 

agency for each AmeriCorps competition. The application may propose more than one program, however, and 

the Corporation may choose to fund 

any or all of those programs. 

§ 2523.120 Must Federal agencies con­ sult with State Commissions? 

Yes. Federal agencies must provide a description of the manner in which the 

proposed AmeriCorps program(s) is co­ ordinated with the application of the 

State in which the projects will be con­ ducted. Agencies must also describe 

proposed efforts to coordinate 

AmeriCorps activities with State Commissions and other funded AmeriCorps 

programs within the State in order to 

build upon existing programs and not 

duplicate efforts. 

PART 2524-AMERICORPS TECHNICAL ASSISTANCE AND OTHER 

SPECIAL GRANTS 

Sec. 

2524.10 For what purposes will technical as­ sistance and training funds be made 

available? 

2524.20 What are the guidelines for program 

development assistance and training 

grants? 

2524.30 What are the guidelines for challenge grants? 

2524.40 What are the guidelines for grants to 

involve persons with disabilities? 

2524.50 What are the guidelines for assistance with disaster relief? 

AUTHORITY: 42 U.S.C. 12571-12595. 

SOURCE: 59 FR 13805, Mar. 23, 1994, unless 

otherwise noted. 

§ 2524.10 For what purposes will technical assistance and training funds 

be made available? 

(a) To the extent appropriate and 

necessary, the Corporation may make 

technical assistance available to 

States, Indian tribes, labor organizations, religious organizations, organizations operated by young adults, organizations serving economically disadvantaged individuals, and other entities eligible to apply for assistance 

under parts 2521 and 2522 of this chapter that desire- (!) To develop AmeriCorps programs; 

or 

(2) To apply for assistance under 

parts 2521 and 2522 of this chapter or 

682 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2524.40 

under a grant program conducted using 

such assistance. 

(b) In addition, the Corporation may 

provide program development assist­ ance and conduct, directly or by grant 

or contract, appropriate training programs regarding AmeriCorps in order 

to-

(1) Improve the ability of AmeriCorps 

programs assisted under parts 2521 and 

2522 of this chapter to meet educational, public safety, human, or environmental needs in communities---

(i) Where services are needed most; 

and 

(ii) Where programs do not exist, or 

are too limited to meet community 

needs, as of the date on which the Corporation makes the grant or enters 

into the contract; 

(2) Promote leadership development 

in such programs; 

(3) Improve the instructional and 

programmatic quality of such programs to build an ethic of civic responsibility; 

(4) Develop the management and 

budgetary skills of program operators; 

(5) Provide for or improve the training provided to the participants in such 

programs; 

(6) Encourage AmeriCorps programs 

to adhere to risk management procedures, including the training of participants in appropriate risk management 

practices; and 

(7) Assist in such other manner as the 

Corporation may specify. 

[59 FR 13805, Mar. 23, 1994, as amended at 67 

FR 45360, July 9, 2002] 

§ 2524.20 What are the guidelines for 

program development assistance 

and training grants? 

(a) Eligibility. States, Federal agencies, Indian tribes, public or private 

nonprofit agencies, institutions of 

higher education, for-profit businesses, 

and individuals may apply for assistance under this section. 

(b) Duration. A grant made under this 

section will be for a term of up to one 

year and is renewable. 

(c) Application requirements. Eligible 

applicants must comply with the requirements specified in the Corporation's application package. 

§ 2524.30 What are the guidelines for 

challenge grants? 

(a) Purpose. The purpose of these 

grants is to challenge high quality 

AmeriCorps programs to diversify their 

funding base by matching private dollars they have raised with Corporation 

support. The Corporation will provide 

not more than $1 for each $1 raised in 

cash by the program from private 

sources in excess of amounts otherwise 

required to be provided by the program 

to satisfy the matching funds requirements specified under §2521.30(g) of this 

chapter. 

(b) Eligibility. Only Corporation 

grantees that meet all of the following 

eligibility criteria may apply for challenge grants: (1) They are funded under 

parts 2520 through 2523 of this chapter. 

(2) They are high quality programs 

with demonstrated experience in establishing and implementing projects that 

provide benefits to participants and 

communities. 

(3) They have operated with Corporation funds for at least six months. 

(4) They have secured the minimum 

matching funds required by 

§§ 2521.30(g), 2522.240(b)(6), 2522.250(a)(4), 

and 2522.250(b)(2) of this chapter. 

(c) Allowable program activities. Challenge grants are intended to provide 

special opportunities for national and 

community service programs to enroll 

additional participants or undertake 

other activities specified by the Corporation. 

(d) Application procedures. Eligible applicants must comply with the requirements specified in the Corporation's 

application materials. 

(e) Limitation on use of the funds. Each 

year the Corporation will establish a maximum award that a program may 

receive as a challenge grant. 

(f) Allocation of funds. The Corporation will determine annually how much 

funding will be allocated to challenge 

grants from funds appropriated for 

AmeriCorps programs. 

[59 FR 13805, Mar. 23, 1994, as amended at 73 

FR 53760, Sept. 17, 2008] 

§ 2524.40 What are the guidelines for 

grants to involve persons with disabilities? 

(a) Purpose. There are two general 

purposes for these grants: (1) To assist 

683 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2524.50 

AmeriCorps grantees in placing applicants who require reasonable accom­ modation (as defined in section 101(9) 

of the Americans With Disabilities Act 

of 1990, 42 U.S.C. 12111(9)) or auxiliary 

aids and services (as defined in section 

3(1) of such Act, 42 U.S.C. 12102(1)) in an 

AmeriCorps program; and 

(2) To conduct outreach activities to 

individuals with disabilities to recruit 

them for participation in AmeriCorps 

programs. 

(b) Eligibility-(!) Placement, accommodation, and auxiliary services. Eligibility 

for assistance under this part is limited 

to AmeriCorps programs that: (i) Receive competitive funding from the 

Corporation under §2521.30(a)(3) or 2521.30(b)(3) of this chapter; and 

(ii) Demonstrate that the program 

has received a substantial number of 

applications for placement from persons who are individuals with a disability and who require a reasonable 

accommodation (as defined in section 

101(9) of the Americans with Disabilities Act of 1990), or auxiliary aids and 

services (as defined in section 3(1) of 

such Act) in order to perform national 

service; and 

(iii) Demonstrate that additional 

funding would assist the program in 

placing a substantial number of such 

individuals with a disability as participants in projects carried out through 

the program. 

(2) Outreach. Corporation grantees 

and any public or private nonprofit or­ ganization may apply for funds to conduct outreach to individuals with disabilities to recruit them for participation in AmeriCorps programs. Outreach 

funds can also be used by any organization to assist AmeriCorps programs in 

adapting their programs to encourage 

greater participation by individuals 

with disabilities. 

(c) Application procedures. Eligible applicants must comply with the requirements specified in the Corporation's 

application materials. 

§ 2524.50 What are the guidelines for 

assistance with disaster relief? 

(a) Purpose. Disaster relief funds are 

intended to provide emergency assistance not otherwise available to enable 

national and community service programs to respond quickly and effec45 CFR Ch. XXV (10-1-12 Edition) 

tively to a Presidentially-declared disaster. 

(b) Eligibility. Any AmeriCorps program (including youth corps, the National Civilian Community Corps, 

VISTA, and other programs authorized 

under the Domestic Volunteer Services 

Act) or grant making entity (such as a 

State or Federal agency) that is supported by the Corporation may apply 

for disaster relief grants. 

(c) Application process. Eligible applicants must comply with the requirements specified in the Corporation's 

application materials. 

(d) Waivers. In appropriate cases, due 

to the limited nature of disaster activities, the Corporation may waive specific program requirements such as 

matching requirements and the provision of AmeriCorps educational awards 

for participants supported with disaster relief funds. 

PART 2525-NATIONAL SERVICE 

TRUST: PURPOSE AND DEFINITIONS 

Sec. 

2525.10 What is the National Service Trust? 

2525.20 Definitions. 

AUTHORITY: 42 U.S.C. 12601-12606. 

SOURCE: 59 FR 30710, June 15, 1994, unless 

otherwise noted. 

§ 2525.10 What is the National Service 

Trust? 

The National Service Trust is an account in the Treasury of the United 

States from which the Corporation 

makes payments of education awards, 

pays interest that accrues on qualified 

student loans for AmeriCorps participants during terms of service in approved national service positions, and 

makes other payments authorized by 

Congress. 

[64 FR 37414, July 12, 1999] 

§ 2525.20 Definitions. 

In addition to the definitions in 

§2510.20 of this chapter, the following 

definitions apply to terms used in parts 

2525 through 2529 of this chapter: 

AmeriCorps education award. For the 

purposes of this section, the term 

AmeriCorps education award means the 

financial assistance available under 

parts 2526 through 2528 of this chapter 

684 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2525.20 

for which an individual in an approved 

AmeriCorps position may be eligible. 

Cost of attendance. The term cost of 

attendance has the same meaning as in 

title IV of the Higher Education Act of 

1965, as amended (20 U.S.C. 1070 et. 

seq.). 

Current educational expenses. The 

term current educational expenses means the cost of attendance, or other costs 

attributable to an educational course offered by an institution of higher education that has in effect a program participation agreement under Title IV of 

the Higher Education Act, for a period 

of enrollment that begins after an individual enrolls in an approved national 

service position. 

Economically disadvantaged youth. For 

the purposes of this section, the phrase 

economically disadvantaged youth means a child who is eligible for a free lunch or breakfast under the Richard B. Russell National School Lunch Act (42 

U.S.C. 1758(b)). 

Education award. For the purposes of 

this section, the term education award 

refers to the financial assistance available under parts 2526 through 2528 of 

this chapter, including AmeriCorps 

education awards, Silver Scholar education awards, and Summer of Service 

education awards. 

Educational expenses at a Title IV institution of higher education. The term 

educational expenses means---- (1) Cost of attendance as determined 

by the institution; or (2) Other costs at a title IV institution of higher education attributable 

to a non-title IV educational course as follows: 

(i) Tuition and fees normally assessed a student for a course or program of 

study by the institution, including 

costs for rental or purchase of any 

books or supplies required of all students in the same course of study; 

(ii) For a student engaged in a course of study by correspondence, only tuition and fees and, if required, books, 

and supplies; 

(iii) For a student with a disability, an allowance (as determined by the institution) for those expenses related to 

the student's disability, including special services, personal assistance, 

transportation, equipment, and supplies that are reasonably incurred and 

not provided for by other assisting 

agencies; and 

(iv) For a student engaged in a work 

experience under a cooperative education program or course, an allowance 

for reasonable costs associated with 

such employment (as determined by 

the institution). 

G.I. Bill approved program. For the 

purposes of this section, a G.J. Bill Approved Program is an educational institution or training establishment approved for educational benefits under 

the Montgomery G.I. Bill (38 U.S.C. 

3670 et seq.) for offering programs of 

education, apprenticeship, or on-job 

training for which educational assist­ ance may be provided by the Secretary 

for Veterans Affairs. 

Holder. The term holder means---­

(1) The original lender; or 

(2) Any other entity to whom a loan 

is subsequently sold, transferred, or as­ signed if such entity acquires a legally 

enforceable right to receive payments 

from the borrower. 

Institution of higher education. For the 

purposes of parts 2525 through 2529 of 

this chapter, the term institution of 

higher education has the same meaning 

given the term in section 481(a) of the 

Higher Education Act of 1965, as amended (20 U.S.C. 1088(a)). 

Period of enrollment. Period of enrollment means the period that the title IV 

institution has established for which 

institutional charges are generally as­ sessed (i.e., length of the student's 

course, program, or academic year.) 

Qualified student loan. The term qualified student loan means any loan made, 

insured, or guaranteed pursuant to 

title IV of the Higher Education Act of 

1965 (20 U.S.C. 1070 et seq.), other than a loan to a parent of a student pursuant 

to section 428B of such Act (20 U.S.C. 

1078-2), any loan made pursuant to title 

VII or VIII of the Public Service Health 

Act (42 U.S.C. 292a et seq.), or any other 

loan designated as such by Congress. 

This includes, but is not necessarily 

limited to, the following: 

(1) Federal Family Education Loans. (i) 

Subsidized and Unsubsidized Stafford 

Loans. 

(ii) Supplemental Loans to Students 

(SLS). 

(iii) Federal Consolidation Loans. 

685 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Pt. 2526 

(iv) Guaranteed Student Loans (predecessor to Stafford Loans). 

(v) Federally Insured Student Loans 

(FISL). 

(2) William D. Ford Federal Direct 

Loans. (i) Direct Subsidized and Unsubsidized Stafford Loans. 

(ii) Direct Subsidized and Unsubsidized Ford Loans. 

(iii) Direct Consolidation Loans. 

(3) Federal Perkins Loans. (i) National 

Direct Student Loans. 

(ii) National Defense Student Loans. 

(4) Public Health Service Act Loans. (i) 

Health Education Assistance Loans 

(HEAL). 

(ii) Health Professions Student Loans 

(HPSL). 

(iii) Loans for Disadvantaged Students (LDS). 

(iv) Nursing Student Loans (NSL). 

(v) Primary Care Loans (PCL). 

Silver Scholar education award. For 

the purposes of this section, the term 

Silver Scholar education award means 

the financial assistance available 

under parts 2526 through 2528 of this 

chapter for which an individual in an 

approved Silver Scholar position may 

be eligible. 

Summer of Service education award. 

For the purposes this section, the term 

Summer of Service education award 

means the financial assistance available under parts 2526 through 2528 of 

this chapter for which an individual in 

an approved Summer of Service position may be eligible. 

Term of service. The term term of service means--

(!) For an individual serving in an approved AmeriCorps position, one of the 

terms of service specified in § 2522.220 of 

this chapter; 

(2) For an individual serving in an approved Silver Scholar position, not less 

than 350 hours during a one-year period; and 

(3) For an individual serving in an approved Summer of Service position, 

not less than 100 hours during the summer months of a single year. 

[59 FR 30711, June 15, 1994 as amended at 64 

FR 37414, July 12, 1999; 65 FR 77821, Dec. 13, 

2000; 67 FR 45360, July 9, 2002; 75 FR 51410, 

Aug. 20, 2010] 

45 CFR Ch. XXV (10-1-12 Edition) 

PART 2526-ELIGIBILITY FOR AN 

EDUCATION AWARD 

Sec. 

2526.10 Who is eligible to receive an education award from the National Service 

Trust? 

2526.15 Upon what basis may an organization responsible for the supervision of a 

national service participant certify that 

the individual successfully completed a 

term of service? 

2526.20 Is an AmeriCorps participant who 

does not complete an originally-approved 

term of service eligible to receive a prorated education award? 

2526.25 Is a participant in an approved Summer of Service position or approved Sil­ ver Scholar position who does not com­ plete an approved term of service eligible 

to receive a pro-rated education award? 

2526.30 How do convictions for the possession or sale of controlled substances affect an education award recipient's ability to use that award? 

2526.40 What is the time period during 

which an individual may use an education award? 

2526.50 Is there a limit on the total amount 

of education awards an individual may 

receive? 

2526.55 What is the impact of the aggregate 

value of education awards received on an individual's ability to serve in subsequent terms of service? 

2526.60 May an individual receive an education award and related interest benefits from the National Service Trust as 

well as other loan cancellation benefits 

for the same service? 

2526.70 What are the effects of an erroneous certification of successful completion of 

a term of service? 

AUTHORITY: 42 U.S.C. 12601-12604, 12606. 

SOURCE: 59 FR 30711, June 15, 1994, unless 

otherwise noted. 

§ 2526.10 Who is eligible to receive an education award from the National 

Service Trust? 

(a) General. An individual is eligible 

to receive an education award from the 

National Service Trust if the organization responsible for the individual's supervision in a national service program 

certifies that the individual-

(!) Met the applicable eligibility requirements for the approved 

AmeriCorps position, approved Silver 

Scholar position, or approved Summer 

of Service position, as appropriate, in 

which the individual served; 

686 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2526.20 

(2) (i) For an AmeriCorps education 

award, successfully completed the required term of service in the approved 

national service position; 

(ii) For a partial AmeriCorps education award, completed at least 15 

percent of the originally-approved 

term of service, and performed satisfactorily prior to being granted a re­ lease for compelling personal circumstances consistent with 

§ 2522.230(a); 

(iii) For a Summer of Service education award, successfully completed 

the required term of service in a Sum­ mer of Service position; or 

(iv) For a Silver Scholar education 

award, successfully completed the required term of service in a Silver 

Scholar position; and 

(3) Is a citizen, national, or lawful 

permanent resident alien of the United 

States. 

(b) High school diploma or equivalent. 

To use an education award, an individual must--- (1) Have received a high school diploma or its equivalent; or 

(2) Be enrolled at an institution of 

higher education on the basis of meeting the standard described in paragraph (1) or (2) of subsection (a) of section 484 of the Higher Education Act of 

1965 (20 U.S.C. 1091) and meet the requirements of subsection of section 484; 

or 

(3) Have received a waiver described 

in §2522.200(b) of this chapter. 

(c) Written declaration regarding high 

school diploma sufficient for disbursement. For purposes of disbursing an 

education award, if an individual provides a written declaration under penalty of law that he or she meets the re­ quirements in paragraph (b) of this section relating to high school education, 

no additional documentation is needed. 

(d) Prohibition on duplicate benefits. 

An individual who receives a post-service benefit in lieu of an education 

award may not receive an education 

award for the same term of service. 

(e) Penalties for false information. Any 

individual who makes a materially 

false statement or representation in 

connection with the approval or disbursement of an education award or other payment from the National Service Trust may be liable for the recovery of funds and subject to civil and 

criminal sanctions. 

[64 FR 37414, July 12, 1999, as amended at 67 

FR 45361, July 9, 2002; 75 FR 51411, Aug. 20, 

2010] 

§ 2526.15 Upon what basis may an or­ ganization responsible for the su­ pervision of a national service participant certify that the individual 

successfully completed a term of 

service? 

(a) An organization responsible for 

the supervision of an individual serving 

in an AmeriCorps State and National 

position must determine whether an 

individual successfully completed a 

term of service based upon an end-ofterm evaluation conducted pursuant to 

§ 2522.220(d). 

(b) An organization responsible for 

the supervision of an individual serving 

in a program other than AmeriCorps 

State and National must determine 

whether an individual successfully 

completed a term of service based upon 

an end-of-term evaluation that examines whether the individual satisfies all 

of the following conditions: 

(1) Completed the required number of 

service hours for the term of service; 

(2) Satisfactorily performed on assignments, tasks, or projects; and 

(3) Met any performance criteria as 

determined by the program and communicated to the member. 

(c) A certification by the organization responsible for the supervision of 

an individual that the individual did or 

did not successfully complete a term of 

service will be deemed to incorporate 

an end-of-term evaluation. 

[75 FR 51411, Aug. 20, 2010] 

§ 2526.20 Is an AmeriCorps participant 

who does not complete an originally-approved term of service eligible to receive a pro-rated education 

award? 

(a) Compelling personal circumstances. 

A participant in an approved 

AmeriCorps position who is released 

prior to completing an approved term 

of service for compelling personal circumstances in accordance with 

§2522.230(a) is eligible for a pro-rated 

education award if the participant---

687 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2526.25 

(1) Performed satisfactorily prior to 

being granted a release for compelling 

personal circumstances; and 

(2) Completed at least 15 percent of 

the originally-approved term of serv­ ice. 

(b) Release for cause. A participant 

who is released prior to completing an originally-approved term of service for cause is not eligible for any portion of an education award. 

[64 FR 37415, July 12, 1999, as amended at 75 

FR 51411, Aug. 20, 2010] 

§ 2526.25 Is a participant in an approved Summer of Service position or approved Silver Scholar position 

who does not complete an approved 

term of service eligible to receive a pro-rated education award? 

No. An individual released for any reason prior to completing an approved 

term of service in a Silver Scholar or Summer of Service position is not eligible to receive a pro-rated award. 

[75 FR 51411, Aug. 20, 2010] 

§ 2526.30 How do convictions for the 

possession or sale of controlled substances affect an education award 

recipient's ability to use that 

award? 

(a) Except as provided in paragraph 

(b) of this section, a recipient of an education award who is convicted 

under pertinent Federal or State law of 

the possession or sale of a controlled 

substance is not eligible to use his or her education award from the date of 

the conviction until the end of a specified time period, which is determined 

based on the type of conviction as follows: 

(1) For conviction of the possession of a controlled substance, the ineligibility periods are-

(i) One year for a first conviction; 

(ii) Two years for a second conviction; and 

(iii) For a third or subsequent conviction, indefinitely, as determined by the 

Corporation according to the following 

factors-

(A) Type of controlled substance; 

(B) Amount of controlled substance; 

(C) Whether firearms or other dan- gerous weapons were involved in the offense; 

45 CFR Ch. XXV (10-1-12 Edition) 

(D) Nature and extent of any other 

criminal record; 

(E) Nature and extent of any involvement in trafficking of controlled substances; 

(F) Length of time between offenses; 

(G) Employment history; 

(H) Service to the community; 

(I) Recommendations from commu­ nity members and local officials, including experts in substance abuse and 

treatment; and 

(J) Any other relevant aggravating or ameliorating circumstances. 

(2) For conviction of the sale of a controlled substance, the ineligibility 

periods are-

(i) Two years for a first conviction; 

and 

(ii) Two years plus such additional 

time as the Corporation determines as appropriate for second and subsequent 

convictions, based on the factors set 

forth in paragraphs (a)(l)(iii) (A) 

through (J) of this section. 

(b) (1) If the Corporation determines 

that an individual who has had his or her eligibility to use the education 

award suspended pursuant to paragraph (a) of this section has success­ fully completed a legitimate drug rehabilitation program, or in the case of a first conviction that the individual has 

enrolled in a legitimate drug rehabilitation program, the individual's eligibility to use the education award will 

be restored. 

(2) In order for the Corporation to determine that the requirements of paragraph (b)(l) of this section have been 

met--- (i) The drug rehabilitation program 

must be recognized as legitimate by appropriate Federal, State or local au­ thorities; and 

(ii) The individual's enrollment in or successful completion of the legitimate 

drug rehabilitation program must be 

certified by an appropriate official of 

that program. 

[59 FR 30711, June 15, 1994. Redesignated at 64 

FR 37415, July 12, 1999] 

§ 2526.40 What is the time period during which an individual may use an education award? 

(a) General requirement. Unless the 

Corporation approves an extension in 

688 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2526.50 

accordance with the requirements of 

paragraph (b) of this section- (!) An individual may use an AmeriCorps education award or a Sil­ ver Scholar education award within seven years of the date on which the 

individual successfully completed a term of service in an approved 

AmeriCorps or Silver Scholar position; 

(2) An individual may use a Summer 

of Service education award within ten 

years of the date on which the individual successfully completed a term of 

service in an approved Summer of 

Service position; 

(3) A designated individual who re­ ceives a transferred education award in 

accordance with §2530.10 may use the 

transferred education award within ten 

years of the date on which the individual who transferred the award suc­ cessfully completed the term of service 

in an approved AmeriCorps or Silver 

Scholar position that is the basis of the 

award. 

(b) Extensions. In order to receive an extension of the period of availability 

specified in paragraph (a) of this sec­ tion for using an education award, an individual must apply to the Corporation for an extension prior to the end 

of that time period. The Corporation 

may grant an application for an extension under the following circumstances: 

(1) If the Corporation determines 

that an individual was performing an­ other term of service in an approved 

AmeriCorps, Summer of Service, or Silver Scholar position during the 

original period of availability, the Corporation may grant an extension for a time period that is equivalent to the 

time period during which the individual was performing the other term 

of service. 

(2) If the Corporation determines 

that an individual was unavoidably 

prevented from using the education 

award during the original period of 

availability, the Corporation may 

grant an extension for a period of time 

that the Corporation deems appropriate. An individual who is ineligible 

to use an education award as a result 

of the individual's conviction of the 

possession or sale of a controlled substance is not considered to be unavoidably prevented from using the education award for the purposes of this 

paragraph. In the case of a transferred 

award, an individual who is unable to 

use an education award as a result of 

being too young to enroll in an institution of higher education or other training establishment is not considered to 

be unavoidably prevented from using 

the education award. 

[75 FR 51411, Aug. 20, 2010] 

§ 2526.50 Is there a limit on the total 

amount of education awards an individual may receive? 

(a) General Limitation. No individual 

may receive more than an amount 

equal to the aggregate value of two 

full-time education awards. 

(b) Calculation of the value of an education award. For the purposes of this 

section, the value of an education 

award is equal to the actual amount of 

the education award received divided 

by the amount of a full-time education 

award in the year the AmeriCorps or 

Silver Scholar position to which the 

award is attributed was approved. Each 

award received will be considered to 

have a value between O and 1. Although 

the amount of a full-time award as defined in §2527.lO(a) may change, the 

value of a full-time award will always 

be equal to 1. 

(c) Calculation of aggregate value of 

awards received. The aggregate value of 

awards received is equal to the sum of: 

(1) The value of each education award 

received as a result of successful completion of an approved AmeriCorps position; 

(2) The value of each partial education award received as a result of release from an approved AmeriCorps position for compelling personal circumstances; 

(3) The value of each education award 

received as a result of successful com­ pletion of a term of service in an approved Silver Scholar position; and 

(4) The value of any amount received 

as a transferred education award, ex­ cept as provided in §2530.60(c). 

(d) Determination of Receipt of Award. 

For purposes of determining the aggregate value of education awards, an 

award is considered to be received at 

689 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2526.55 

the time it becomes available for an individual's use. 

[75 FR 51411, Aug. 20, 2010] 

§ 2526.55 What is the impact of the aggregate value of education awards 

received on an individual's ability 

to serve in subsequent terms of 

service? 

The aggregate value of education 

awards an individual has received will 

not impact an individual's ability to serve in a subsequent term of service, 

but will impact the amount of the education award the individual may re­ ceive upon successful completion of 

that term of service. If the award 

amount offered for the term of service 

has a value that, when added to the aggregate value of awards previously re­ ceived, would exceed 2, upon successful 

completion of the term of service, the 

individual will only receive that portion of the award having a value for 

which the individual is eligible pursuant to §2527.lO(g). 

[75 FR 51412, Aug. 20, 2010] 

§ 2526.60 May an individual receive an education award and related interest benefits from the National Service Trust as well as other loan can­ cellation benefits for the same serv­ ice? 

An individual may not receive an 

education award and related interest 

benefits from the National Service 

Trust for a term of service and have 

that same service credited toward re­ payment, discharge, or cancellation of 

other student loans, except an individual may credit the service toward 

the Public Service Loan Forgiveness 

Program, as provided under 34 CFR 

§685.219. 

[75 FR 51412, Aug. 20, 2010] 

§2526.70 What are the effects of an er­ roneous certification of successful 

completion of a term of service? 

(a) If the Corporation determines 

that the certification made by a na­ tional service program under 

§ 2526.10(a)(2)(i), (2)(iii), or (2)(iv) is erroneous, the Corporation shall assess 

against the national service program a charge for the amount of any associated payment or potential payment 

from the National Service Trust, tak45 CFR Ch. XXV (10-1-12 Edition) 

ing into consideration the full facts 

and circumstances surrounding the erroneous or incorrect certification. 

(b) Nothing in this section shall prohibit the Corporation from taking any 

action authorized by law based upon 

any certification that is knowingly 

made in a false, materially misleading, 

or fraudulent manner. 

[75 FR 51412, Aug. 20, 2010] 

PART 2527-DETERMINING THE 

AMOUNT OF AN EDUCATION 

AWARD 

AUTHORITY: 42 U.S.C. 12601-12606. 

SOURCE: 64 FR 37415, July 12, 1999, unless 

otherwise noted. 

§2527.10 What is the amount of an education award? 

(a) Full-time term of service. Except as provided in paragraph (g) of this section, the education award for a fulltime term of service in an approved 

AmeriCorps position of at least 1,700 

hours will be equal to the maximum 

amount of a Federal Pell Grant under 

Section 401 of the Higher Education 

Act of 1965 (20 U.S.C. 1070a) that a student eligible for such grant may re­ ceive in the aggregate for the award 

year in which the term of service is approved by the Corporation. 

(b) Part-time term of service. Except as provided in paragraph (g), the education award for a part-time term of 

service in an approved AmeriCorps position of at least 900 hours is equal to one half of the amount of an education 

award amount for a full-time term of 

service described in paragraph (a) of 

this section. 

(c) Reduced part-time term of service. 

Except as provided in paragraph (g), 

the education award for a reduced parttime term of service in an approved 

AmeriCorps position of fewer than 900 

hours is: 

(1) An amount equal to the product 

of: 

(i) The number of hours of service re­ quired to complete the reduced parttime term of service divided by 900; and 

(ii) The amount of the education 

award for a part-time term of service 

described in paragraph (b) of this sec­ tion; or 

690 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2528.20 

(2) An amount as determined otherwise by the Corporation. 

(d) Release for compelling personal circumstances. The education award for an 

individual who is released from completing an originally-approved term of 

service for compelling personal circumstances is equal to the product of-

(1) The number of hours completed 

divided by the number of hours in the 

originally-approved term of service; 

and 

(2) The amount of the education 

award for the originally-approved term 

of service. 

(e) Summer of Service Education 

Award. (1) In general. The education 

award for a term of service in an approved Summer of Service position for 

at least 100 hours is $500. 

(2) Exception. The Corporation may 

authorize a Summer of Service education award of $750 if the participant 

is economically disadvantaged, as 

verified by the organization or school 

operating the Summer of Service program. 

(f) Silver Scholar Education Award. Except as provided in paragraph (g) of 

this section, the education award for a 

term of service in an approved Silver 

Scholar position for at least 350 hours 

is $1,000. 

(g) Calculating discounted education 

award amount. To ensure that an individual receives no more than the aggregate value of two awards, as determined pursuant to § 2526.50, the discounted amount an individual is eligible to receive is determined by the following formula: 

(2-aggregate value of awards the individual has received) x (amount of a 

full-time education award in the 

year the position is approved) 

[64 FR 37415, July 12, 1999, as amended at 75 

FR 51412, Aug. 20, 2010] 

PART 2528-USING AN EDUCATION 

AWARD 

Sec. 

2528.10 For what purposes may an education 

award be used? 

2528.20 What steps are necessary to use an education award to repay a qualified student loan? 

2528.30 What steps are necessary to use an education award to pay all or part of the 

current educational expenses at an institution of higher education? 

2528.40 Is there a limit on the amount of an individual's education award that the 

Corporation will disburse to an institution of higher education for a given period of enrollment? 

2528.50 What happens if an individual withdraws or fails to complete the period of 

enrollment in an institution of higher 

education for which the Corporation has 

disbursed all or part of that individual's 

education award? 

2528.60 Who may use the education award to 

pay expenses incurred in enrolling in a G.I. Bill approved program? 

2528.70 What steps are necessary to use an education award to pay expenses incurred in enrolling in a G.I. Bill approved 

program? 

2528.80 What happens if an individual for 

whom the Corporation has disbursed education award funds withdraws or fails to 

complete the period of enrollment in a G.I. Bill approved program? 

AUTHORITY: 42 U.S.C. 12601-12606. 

SOURCE: 64 FR 37415, July 12, 1999, unless 

otherwise noted. 

§ 2528.10 For what purposes may an education award be used? 

(a) Authorized uses. An education 

award may be used-

(1) To repay qualified student loans 

in accordance with §2528.20; 

(2) To pay all or part of the current 

educational expenses at an institution 

of higher education in accordance with 

§§ 2528.30 through 2528.50; 

(3) To pay expenses incurred in enrolling in a G.I. Bill approved program, 

in accordance with §§2528.60-80. 

(b) Multiple uses. An education award 

is divisible and may be applied to any 

combination of loans, costs, or expenses described in paragraph (a) of 

this section. 

[64 FR 37415, July 12, 1999, as amended at 67 

FR 45361, July 9, 2002; 75 FR 51412, Aug. 20, 

2010] 

§ 2528.20 What steps are necessary to use an education award to repay a qualified student loan? 

(a) Required information. Before disbursing an amount from an education 

award to repay a qualified student 

loan, the Corporation must receive---

(1) An individual's written authorization and request for a specific payment 

amount; 

691 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2528.30 

(2) Identifying and other information 

from the holder of the loan as re­ quested by the Corporation and nec­ essary to ensure compliance with this 

part. 

(b) Payment. When the Corporation 

receives the information required 

under paragraph (a) of this section, the 

Corporation will pay the holder of the 

loan and notify the individual of the 

payment. 

(c) Aggregate payments. The Corporation may establish procedures to aggregate payments to holders of loans for more than a single individual. 

§ 2528.30 What steps are necessary to use an education award to pay all or part of the current educational 

expenses at an institution of higher 

education? 

(a) Required information. Before disbursing an amount from an education 

award to pay all or part of the current 

educational expenses at an institution 

of higher education, the Corporation 

must receive-- (!) An individual's written authorization and request for a specific payment 

amount; 

(2) Information from the institution 

of higher education as requested by the 

Corporation, including verification 

that--- (i) It has in effect a program participation agreement under section 487 of 

the Higher Education Act of 1965 (20 

u.s.c. 1094); 

(ii) Its eligibility to participate in 

any of the programs under title IV of 

the Higher Education Act of 1965 has 

not been limited, suspended, or terminated; 

(iii) If an individual who has used an 

education award withdraws or otherwise fails to complete the period of en­ rollment for which the education 

award was provided, the institution of 

higher education will ensure an appropriate refund to the Corporation of the 

unused portion of the education award 

under its own published refund policy, or if it does not have one, provide a pro-rata refund to the Corporation of 

the unused portion of the education 

award; 

(iv) Individuals using education 

awards to pay for the current educational expenses at that institution 

do not comprise more than 15 percent 

45 CFR Ch. XXV (10-1-12 Edition) 

of the institution's total student population; 

(v) The amount requested will be 

used to pay all or part of the individual's cost of attendance or other educational expenses attributable to a course offered by the institution; 

(vi) The amount requested does not 

exceed the difference between: 

(A) The individual's cost of attend­ ance and other educational expenses; 

and 

(B) The individual's estimated student financial assistance for that period under part A of title IV of the 

Higher Education Act (20 U.S.C. 1070 et 

seq.). 

(b) Payment. When the Corporation 

receives the information required 

under paragraph (a) of this section, the 

Corporation will pay the institution 

and notify the individual of the payment. 

(c) Installment payments. The Corporation will disburse the education award 

to the institution of higher education 

in at least two separate installments, none of which exceeds 50 percent of the 

total amount. The interval between installments may not be less than one­ half of the period of enrollment, except as necessary to permit the second installment to be paid at the beginning 

of the second semester, quarter, or other division of a period of enrollment. 

[64 FR 37415, July 12, 1999, as amended at 67 

FR 45361, July 9, 2002; 75 FR 51413, Aug. 20, 

2010] 

§ 2528.40 Is there a limit on the 

amount of an individual's education 

award that the Corporation will 

disburse to an institution of higher 

education for a given period of en­ rollment? 

Yes. The Corporation's disbursement 

from an individual's education award 

for any period of enrollment may not 

exceed the difference between-

(a) The individual's cost of attend­ ance and other educational expenses, 

determined by the institution of higher 

education in accordance with section 

472 of the Higher Education Act of 1965 

(20 U.S.C. 198711); and 

(b) The individual's estimated financial assistance for that period under 

692 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2528.80 

part A of title IV of the Higher Education Act. 

[64 FR 37415, July 12, 1999, as amended at 75 

FR 51413, Aug. 20, 2010] 

§ 2528.50 What happens if an individual withdraws or fails to com­ plete the period of enrollment in an institution of higher education for 

which the Corporation has disbursed all or part of that individual's education award? 

(a)(l) If an individual for whom the 

Corporation has disbursed education 

award funds withdraws or otherwise 

fails to complete a period of enrollment, an institution of higher education that receives a disbursement of 

education award funds from the Corporation must provide a refund to the 

Corporation in an amount determined 

under that institution's published re­ fund requirements. 

(2) If an institution for higher education does not have a published refund 

policy, the institution must provide a pro-rata refund to the Corporation of 

the unused portion of the education 

award. 

(b) The Corporation will credit any 

refund received for an individual under 

paragraph (a) of this section to the individual's education award allocation 

in the National Service Trust. 

[64 FR 37415, July 12, 1999, as amended at 67 

FR 45361, July 9, 2002] 

§ 2528.60 Who may use the education 

award to pay expenses incurred in 

enrolling in a G.I. Bill approved 

program? 

To use the education award to pay 

expenses for this purpose, you must 

have received an education award for 

successfully completing a term in an approved AmeriCorps position, approved Summer of Service position, or approved Silver Scholar position, in 

which you enrolled on or after October 

1, 2009. 

[75 FR 51413, Aug. 20, 2010] 

§2528.70 What steps are necessary to use an education award to pay ex­ penses incurred in enrolling in a G.I. Bill approved program? 

(a) Required Information. Before disbursing an amount from an education 

award for this purpose, the Corporation 

must receive-- (!) An individual's written authorization and request for a specific payment 

amount; 

(2) Verification from the individual 

that the individual meets the criteria 

in § 2528.60; and 

(3) Information from the educational 

institution or training establishment as requested by the Corporation, including verification that--- (i) The amount requested will be used 

to pay all or part of the individual's ex­ penses attributable to a course, program of education, apprenticeship, or job training offered by the institution or establishment; 

(ii) The course(s) or program(s) for 

which the individual is requesting to use the education award has been and 

is currently approved by the State approving agency for the State where the 

institution or establishment is located, or by the Secretary of Veterans Affairs; and 

(iii) If an individual who has used an education award withdraws or otherwise fails to complete the period of en­ rollment for which the education 

award was provided, the institution or establishment will ensure a pro-rata 

refund to the Corporation of the un­ used portion of the education award. 

(b) Payment. When the Corporation 

receives the information required 

under paragraph (a) of this section, the 

Corporation will pay the institution or establishment and notify the individual of the payment. 

[75 FR 51413, Aug. 20, 2010] 

§ 2528.80 What happens if an individual for whom the Corporation 

has disbursed education award 

funds withdraws or fails to com­ plete the period of enrollment in a G.I. Bill approved program? 

(a) If an individual for whom the Corporation has disbursed education award 

funds withdraws or otherwise fails to 

complete a period of enrollment, the 

approved educational institution or training establishment that receives a disbursement of education award funds 

from the Corporation must provide a pro-rata refund to the Corporation of 

the unused portion of the education 

award. 

693 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Pt. 2529 

(b) The Corporation will credit any 

refund received for an individual under 

paragraph (a) of this section to the individual's education award allocation 

in the National Service Trust. 

[75 FR 51413, Aug. 20, 2010] 

PART 2529-PA YMENT OF 

ACCRUED INTEREST 

Sec. 

2529.10 Under what circumstances will the 

Corporation pay interest that accrues on 

qualified student loans during an individual's term of service in an approved 

AmeriCorps position or approved Silver 

Scholar position? 

2529.20 What steps are necessary to obtain 

forbearance in the repayment of a qualified student loan during an individual's 

term of service in an approved 

AmeriCorps position? 

2529.30 What steps are necessary for using 

funds in the National Service Trust to 

pay interest that has accrued on a qualified student loan during a term of service 

for which the individual has obtained forbearance? 

AUTHORITY: 42 U.S.C. 12601-12606. 

SOURCE: 64 FR 37417, July 12, 1999, unless 

otherwise noted. 

§ 2529.10 Under what circumstances 

will the Corporation pay interest 

that accrues on qualified student 

loans during an individual's term of 

service in an approved AmeriCorps 

position or approved Silver Scholar 

position? 

(a) Eligibility. The Corporation will 

pay interest that accrues on an individual's qualified student loan, subject to 

the limitation on amount in paragraph 

(b) of this section, if- (1) The individual successfully completes a term of service in an approved 

AmeriCorps position or approved Silver 

Scholar position; and 

(2) The holder of the loan approves 

the individual's request for forbearance 

during the term of service. 

(b) Amount. The percentage of accrued interest that the Corporation 

will pay is the lesser of- (1) The product of-

(i) The number of hours of service 

completed divided by the number of 

days for which forbearance was granted; and 

(ii) 365 divided by 17; and (2) 100. 

45 CFR Ch. XXV (10-1-12 Edition) 

(c) Supplemental to education award. A 

payment of accrued interest under this 

part is supplemental to an education 

award received by an individual under 

parts 2526 through 2528 of this chapter. 

(d) Limitation. The Corporation is not 

responsible for the repayment of any 

accrued interest in excess of the 

amount determined in accordance with 

paragraph (b) of this section. 

(e) Suspended service. The Corporation 

will not pay any interest expenses that 

accrue on an individual's qualified student loan during a period of suspended 

service. 

[64 FR 37417, July 12, 1999, as amended at 75 

FR 51413, Aug. 20, 2010] 

§ 2529.20 What steps are necessary to 

obtain forbearance in the repayment of a qualified student loan 

during an individual's term of serv­ ice in an approved AmeriCorps position? 

(a) An individual seeking forbearance 

must submit a request to the holder of 

the loan. 

(b) If, before approving a request for 

forbearance, the holder of the loan requires verification that the individual 

is serving in an approved AmeriCorps 

position, the Corporation will provide 

verification upon a request from the individual or the holder of the loan. 

§ 2529.30 What steps are necessary for 

using funds in the National Service 

Trust to pay interest that has ac­ crued on a qualified student loan 

during a term of service for which an individual has obtained forbearance? 

(a) The Corporation will make payments from the National Service Trust 

for interest that has accrued on a 

qualified student loan during a term of 

service which the individual has successfully completed and for which an 

individual has obtained forbearance, 

after the following: 

(1) The program verifies that the individual has successfully completed the 

term of service and the dates upon 

which the term of service began and 

ended; 

(2) The holder of the loan verifies the 

amount of interest that has accrued 

during the term of service. 

694 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2530.30 

(b) When the Corporation receives all 

necessary information from the program and the holder of the loan, the 

Corporation will pay the holder of the 

loan and notify the individual of the 

payment. 

PART 2530-TRANSFER OF 

EDUCATION AWARDS 

Sec. 

2530.10 Under what circumstances may an 

individual transfer an education award? 

2530.20 For what purposes may a transferred 

award be used? 

2530.30 What steps are necessary to transfer 

an education award? 

2530.40 Is there a limit on the number of individuals one may designate to receive a transferred award? 

2530.50 Is there a limit on the amount of 

transferred awards a designated individual may receive? 

2530.60 What is the impact of transferring or 

receiving a transferred education award on an individual's eligibility to receive 

additional education awards? 

2530.70 Is a designated individual required 

to accept a transferred education award? 

2530.80 Under what circumstances is a transfer revocable? 

2530.85 What steps are necessary to revoke a 

transfer? 

2530.90 Is a designated individual eligible 

for the payment of accrued interest 

under Part 2529? 

AUTHORITY: 42 U.S.C. 12601-12606. 

SOURCE: 75 FR 51413, Aug. 20, 2010, unless 

otherwise noted. 

§ 2530.10 Under what circumstances 

may an individual transfer an education award? 

An individual may transfer an education award if-

(a) The individual enrolled in an approved AmeriCorps State and National 

position or approved Silver Scholar position on or after October 1, 2009; 

(b) The individual was age 55 or older on the day the individual commenced 

the term of service in an approved 

AmeriCorps State and National position or in approved Silver Scholar position; 

(c) The individual successfully completed a term of service in an approved 

AmeriCorps State and National position or an approved Silver Scholar position; 

(d) The award the individual is re­ questing to transfer has not expired, 

consistent with the period of availability set forth in §2526.40(a); 

(e) The individual designated to receive the transferred award is the 

transferring individual's child, grandchild, or foster child; and 

(f) The individual designated to receive the transferred award is a citizen, 

national, or lawful permanent resident 

alien of the United States. 

§ 2530.20 For what purposes may a transferred award be used? 

A transferred award may be used by a 

designated individual to repay qualified student loans or to pay current 

educational expenses at an institution 

of higher education, as described in 

§2528.10. 

§ 2530.30 What steps are necessary to 

transfer an education award? 

(a) Request for Transfer. Before transferring an award to a designated individual, the Corporation must receive a request from the transferring individual, including-

(!) The individual's written authorization to transfer the award, the year 

in which the award was earned, and the 

specific amount of the award to be 

transferred; 

(2) Identifying information for the individual designated to receive the 

transferred award; 

(3) A certification that the transferring individual meets the requirements 

of paragraphs (a) through (c) of 

§2530.10; and 

(4) A certification that the designated individual is the child, grandchild, or foster child of the transferring 

individual. 

(b) Notification to Designated Individual. Upon receipt of a request including all required information listed 

in paragraph (a) of this section, the 

Corporation will contact the designated individual to notify the individual of the proposed transfer, con­ firm the individual's identity, and give 

the individual the opportunity to ac­ cept or reject the transferred award. 

(c) Acceptance by Designated Individual. To accept an award, a designated individual must certify that 

the designated individual is the child, 

695 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2530.40 

grandchild, or foster child of the transferring individual and that the designated individual is a citizen, na­ tional, or lawful permanent resident 

alien of the United States. Upon re­ ceipt of the designated individual's ac­ ceptance, the Corporation will create or permit the creation of an account in 

the National Service Trust for the designated individual, if an account does 

not already exist, and the accepted 

amount will be deducted from the 

transferring individual's account and 

credited to the designated individual's 

account. 

(d) Timing of transfer. The Corporation must receive the request from the 

transferring individual prior to the 

date the award expires. 

§ 2530.40 Is there a limit on the num­ ber of individuals one may designate to receive a transferred 

award? 

(a) General Limitation. For each award 

an individual earns as a result of suc­ cessfully completing a single term of 

service, an individual may transfer all or part of the award to a single designated individual. An individual may 

not transfer a single award attributable to successful completion of a single term of service to more than one designated individual. 

(b) Re-transfer. If a designated individual rejects a transferred award in 

full, or the Corporation otherwise determines that a transfer was revoked 

for good cause in accordance with 

§2530.B0(c), the transferring individual 

may designate another individual to 

receive the transferred award. 

§ 2530.50 Is there a limit on the 

amount of transferred awards a designated individual may receive? 

Consistent with § 2526.50, no individual may receive more than an amount equal to the value of two fulltime education awards. If the sum of 

the value of the requested transfer plus 

the aggregate value of education 

awards a designated individual has previously received would exceed the aggregate value of two full-time education awards, as determined pursuant 

to §2526.50(b), the designated individual 

will be deemed to have rejected that 

portion of the award that would result 

in the excess. If a designated individual 

45 CFR Ch. XXV (10-1-12 Edition) 

has already received the aggregate 

value of two full-time education 

awards, the individual may not receive a transferred education award, and the 

designated individual will be deemed to 

have rejected the award in full. 

§ 2530.60 What is the impact of transferring or receiving a transferred 

education award on an individual's 

eligibility to receive additional education awards? 

(a) Impact on Transferring Individual. 

Pursuant to §2526.50, an award is con­ sidered to be received at the time it becomes available for an individual's use. Transferring all or part of an award 

does not reduce the aggregate value of 

education awards the transferring individual is considered to have received. 

(b) Impact on Designated Individual. 

For the purposes of determining the 

value of the transferred education 

award under §2526.50, a designated individual will be considered to have re­ ceived a value equal to the amount ac­ cepted divided by the amount of a fulltime award in the year the transferring 

individual's position was approved. 

(c) Result of revocation on award value. 

If the transferring individual revokes, 

in whole or in part, a transfer, the 

value of the education award considered to have been received by the designated individual for purposes of 

§2526.50 will be reduced accordingly. 

§2530.70 Is a designated individual re- quired to accept a transferred education award? 

(a) General Rule. A designated individual is not required to accept a transferred education award, and may 

reject an award in whole or in part. 

(b) Result of rejection in full. If the 

designated individual rejects a transferred award in whole, the amount is 

credited to the transferring individual's account in the National Service 

Trust, and may be transferred to an­ other individual, or may be used by the 

transferring individual for any of the 

purposes listed in § 2528.10, consistent 

with the original time period of availability set forth in §2526.40(a). 

(c) Result of rejection in part. If the 

designated individual rejects a transferred award in part, the rejected portion is credited to the transferring individual's account in the National 

696 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2531.10 

Service Trust, and may be used by the 

transferring individual's for any of the 

purposes listed in § 2528.10, consistent 

with the original time period of availability set forth in § 2526.40(a). An individual may not re-transfer the rejected 

portion of the award to another individual. 

§ 2530.80 Under what circumstances is a transfer revocable? 

(a) Revocation. An individual may revoke a transfer at any time and for any reason prior to the award's use by the 

designated individual. 

(b) Use of Award. Upon revocation, 

the amount revoked will be deducted 

from the designated individual's ac­ count and credited to the transferring 

individual's account. The transferring 

individual may use the revoked transferred education award for any of the 

purposes described in §2528.10, con­ sistent with the original time period of 

availability set forth in §2526.40(a). 

(c) Re-transfer. Generally, an individual may not re-transfer an award to 

another individual after revoking the same award from the original designated individual. The Corporation 

may approve re-transfer of an award 

for good cause, including cases in 

which the original designated individual was unavoidably prevented from 

using the award, as demonstrated by 

the individual transferring the award. 

§ 2530.85 What steps are necessary to 

revoke a transfer? 

(a) Request for revocation. Before revoking a transfer, the transferring individual must submit a request to the 

Corporation that includes - (1) The individual's written authorization to revoke the award; 

(2) The year in which the award was 

earned; 

(3) The specific amount to be revoked; and 

(4) The identity of the designated individual. 

(b) Credit to transferring individual. 

Upon receipt of a request including all 

required information listed in paragraph (a) of this section, the Corporation will deduct the amount specified 

in the transferring individual's request 

from the designated individual's account and credit the amount to the account of the transferring individual, 

except as provided in paragraph (c) of 

this section. The Corporation will no­ tify the transferring individual of the 

amount revoked. 

(c) Used awards. A revocation may 

only apply to that portion of the transferred award that has not been used by 

the designated individual. If the designated individual has used the entire 

transferred amount prior to the date 

the Corporation receives the revoca­ tion request, no amount will be returned to the transferring individual. 

An amount is considered to be used 

when it is disbursed from the National 

Service Trust, not when a request is received to use an award. 

(d) Notification to designated individual. The Corporation will notify the 

designated individual of the amount 

being revoked as of the date of the Corporation's receipt of the revocation request. 

(e) Timing of revocation. The Corporation must receive the request to revoke 

the transfer from the transferring individual prior to the award's expiration 

ten years from the date the award was originally earned. 

§ 2530.90 Is a designated individual eligible for the payment of accrued interest under Part 2529? 

No, an individual must have success­ fully completed a term of service in an 

approved AmeriCorps position or Silver 

Scholar position to be eligible for the 

payment of accrued interest under Part 

2529. 

PART 2531-PURPOSES AND AVAILABILITY OF GRANTS FOR INVESTMENT FOR QUALITY AND INNOVATION ACTIVITIES 

Sec. 

2531.10 What are the purposes of the Investment for Quality and Innovation activities? 

2531.20 Funding priorities. 

AUTHORITY: 42 u.s.c. 12501 et seq. 

§ 2531.10 What are the :purposes of the 

Investment for Quality and hmovation activities? 

Investment for Quality and Innovation activities are designed to develop 

service infrastructure and improve the 

697 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2531.20 

overall quality of national and commu­ nity service efforts. Specifically, the 

Corporation will support innovative 

and model programs that otherwise 

may not be eligible for funding; and 

support other activities, such as training and technical assistance, summer programs, leadership training, re­ search, promotion and recruitment, 

and special fellowships and awards. The 

Corporation may conduct these activities either directly or through grants 

to or contracts with qualified organizations. 

[59 FR 13806, Mar. 23, 1994. Redesignated at 75 

FR 51413, Aug. 20, 2010.] 

§ 2531.20 Funding priorities. 

The Corporation may choose to set 

priorities (and to periodically revise 

such priorities) that limit the types of 

innovative and model programs and 

support activities it will undertake or fund in a given fiscal year. In setting 

these priorities, the Corporation will 

seek to concentrate funds on those ac­ tivities that will be most effective and 

efficient in fulfilling the purposes of 

this part. 

[59 FR 13806, Mar. 23, 1994] 

PART 2532-INNOVATIVE AND SPECIAL DEMONSTRATION PROGRAMS 

Sec. 

2532.10 Military Installation Conversion 

Demonstration programs. 

2532.20 Special Demonstration Project for 

the Yukon-Kuskokwim Delta of Alaska. 

2532.30 Other innovative and model programs. 

AUTHORITY: 42 u.s.c. 12501 et seq. 

SOURCE: 59 FR 13806, Mar. 23, 1994, unless 

otherwise noted. Redesignated at 75 FR 51413, 

Aug. 20, 2010 

§ 2532.10 Military Installation Conversion Demonstration programs. 

(a) Purposes. The purposes of this sec­ tion are to: (1) Provide direct and demonstrable service opportunities for 

economically disadvantaged youth; 

(2) Fully utilize military installations affected by closures or realignments; 

(3) Encourage communities affected 

by such closures or realignments to 

45 CFR Ch. XXV (10-1-12 Edition) 

convert the installations to commu­ nity use; and 

(4) Foster a sense of community pride 

in the youth in the community. 

(b) Definitions. As used in this sec­ tion: (1) Affected military installation. 

The term affected military installation means a military installation described 

in section 325(e)(l) of the Job Training 

Partnership Act (29 U.S.C. 1662d(e)(l)). 

(2) Community. The term community 

includes a county. 

(3) Convert to community use. The 

term convert to community use, used 

with respect to an affected military installation, includes- (i) Conversion of the installation or a part of the installation to­

(A) A park; 

(B) A community center; 

(C) A recreational facility; or (D) A facility for a Head Start program under the Head Start Act (42 

U.S.C. 9831 et seq.); and 

(ii) Carrying out, at the installation, a construction or economic development project that is of substantial benefit, as determined by the Chief Executive Officer, to- (A) The community in which the installation is located; or (B) A community located within 50 

miles of the installation or such further distance as the Chief Executive 

Officer may deem appropriate on a case-by-case basis. 

(4) Demonstration program. The term 

demonstration program means a program 

described in paragraph (c) of this sec­ tion. 

(c) Demonstration programs-(!) 

Grants-The Corporation may make 

grants to communities and commu­ nity-based agencies to pay for the Federal share of establishing and carrying 

out military installation conversion 

demonstration programs, to assist in 

converting to community use affected 

military installations located- (i) Within the community; or (ii) Within 50 miles of the commu­ nity. 

(2) Duration. In carrying out such a demonstration program, the commu­ nity or community-based agency may 

carry out- (i) A program of not less than 6 

months in duration; or (ii) A full-time summer program. 

698 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2532.20 

(d) Use of Funds-(!) Stipend. A com­ munity or community-based agency 

that receives a grant under paragraph 

(c) of this section to establish and 

carry out a project through a demonstration program may use the funds 

made available through such grant to 

pay for a portion of a stipend for the 

participants in the project. 

(2) Limitation on amount of stipend. 

The amount of the stipend provided to a participant under paragraph (d)(l) of 

this section that may be paid using as­ sistance provided under this section 

and using any other Federal funds may 

not exceed the lesser of- (i) 85 percent of the total average an­ nual subsistence allowance provided to 

VISTA volunteers under section 105 of 

the Domestic Volunteer Service Act of 

1973 (42 U.S.C. 4955); and 

(ii) 85 percent of the stipend established by the demonstration program 

involved. 

(e) Participants-(!) Eligibility. A per­ son will be eligible to be selected as a participant in a project carried out 

through a demonstration program if 

the person is--- (i) Economically disadvantaged and 

between the ages of 16 and 24, inclusive; 

(ii) In the case of a full-time summer program, economically disadvantaged 

and between the ages of 14 and 24; or (iii) An eligible youth as described in 

section 423 of the Job Training Partnership Act (29 U.S.C. 1693). 

(2) Participation. Persons desiring to 

participate in such a project must 

enter into an agreement with the spon­ sor of the project to participate--- (i) On a full-time or a part-time 

basis; and 

(ii) For the duration referred to in 

paragraph (f)(2)(iii) of this section. 

(f) Application-(!) In general. To be 

eligible to receive a grant under paragraph (c) of this section, a community or community-based agency must submit an application to the Chief Executive Officer at such time, in such man­ ner, and containing such information as the Chief Executive Officer may re­ quire. 

(2) Contents. At a minimum, such application must contain- (i) A description of the demonstration program proposed to be conducted 

by the applicant; 

(ii) A proposal for carrying out the 

program that describes the manner in 

which the applicant will- (A) Provide preservice and inservice 

training, for supervisors and participants, that will be conducted by qualified individuals or qualified organizations; 

(B) Conduct an appropriate evaluation of the program; and 

(C) Provide for appropriate commu­ nity involvement in the program; 

(iii) Information indicating the duration of the program; and 

(iv) An assurance that the applicant 

will comply with the nonduplication, 

nondisplacement and grievance procedure provisions of part 2540 of this 

chapter. 

(g) Limitation on Grant. In making a grant under paragraph (c) of this sec­ tion with respect to a demonstration 

program to assist in converting an affected military installation, the Corporation will not make a grant for more than 25 percent of the total cost 

of the conversion. 

§ 2532.20 Special Demonstration 

Project for the Yukon-Kuskokwim 

Delta of Alaska. 

(a) Special Demonstration Project for 

the Yukon-Kuskokwim Delta of Alaska. 

The President may award grants to, 

and enter into contracts with, organizations to carry out programs that address significant human needs in the 

Yukon-Kuskokwim delta region of 

Alaska. 

(b) Application-(!) General requirements. To be eligible to receive a grant or enter into a contract under paragraph (a) of this section with respect to a program, an organization must submit an application to the President at 

such time, in such manner, and con­ taining such information as required. 

(2) Contents. The application submitted by the organization must, at a minimum- (i) Include information describing the manner in which the program will utilize VISTA volunteers, individuals who 

have served in the Peace Corps, and 

other qualified persons, in partnership 

with the local nonprofit organizations 

known as the Yukon-Kuskokwim 

Health Corporation and the Alaska Village Council Presidents; 

699 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2532.30 

(ii) Take into consideration- (A) The primarily noncash economy 

of the region; and 

(B) The needs and desires of residents 

of the local communities in the region; 

and 

(iii) Include specific strategies, developed in cooperation with the Yupi'k 

speaking population that resides in 

such communities, for comprehensive 

and intensive community development 

for communities in the YukonKuskokwim delta region. 

§ 2532.30 Other innovative and model 

programs. 

(a) The Corporation may support 

other innovative and model programs 

such as the following: (1) Programs, including programs for rural youth, described in parts 2515 through 2524 of 

this chapter; 

(2) Employer-based retiree programs; 

(3) Intergenerational programs; 

(4) Programs involving individuals 

with disabilities providing service; 

(5) Programs sponsored by Governors; 

and 

(6) Summer programs carried out between May 1 and October 1 (which may 

also contain a year-round component). 

(b) The Corporation will support innovative service-learning programs. 

[59 FR 13806, Mar. 23, 1994, as amended at 69 

FR 6181, Feb. 10, 2004] 

PART 2533-TECHNICAL ASSISTANCE, TRAINING, AND OTHER 

SERVICE INFRASTRUCTURE-BUILDING ACTIVITIES 

AUTHORITY: 42 U.S.C. 12657. 

§ 2533.10 Eligible activities. 

The Corporation may support-either 

directly or through a grant, contract or agreement-any activity designed to 

meet the purposes described in part 

2531 of this chapter. These activities include, but are not limited to, the following: (a) Community-based agencies. 

The Corporation may provide training 

and technical assistance and other as­ sistance to project sponsors and other 

community-based agencies that provide volunteer placements in order to 

improve the ability of such agencies to use participants and other volunteers 

45 CFR Ch. XXV (10-1-12 Edition) 

in a manner that results in high-quality service and a positive service experience for the participants and volunteers. 

(b) Improve ability to apply for assistance. The Corporation will provide 

training and technical assistance, 

where necessary, to individuals, programs, local labor organizations, State 

educational agencies, State Commissions, local educational agencies, local 

governments, community-based agencies, and other entities to enable them 

to apply for funding under one of the 

national service laws, to conduct highquality programs, to evaluate such programs, and for other purposes. 

(c) Conferences and materials. The Corporation may organize and hold conferences, and prepare and publish materials, to disseminate information and 

promote the sharing of information 

among programs for the purpose of improving the quality of programs and 

projects. 

(d) Peace Corps and VISTA training. 

The Corporation may provide training 

assistance to selected individuals who 

volunteer to serve in the Peace Corps 

or a program authorized under title I of 

the Domestic Volunteer Service Act of 

1973 (42 U.S.C. 4951 et seq.). The training 

will be provided as part of the course of 

study of the individual at an institution of higher education, involve service-learning, and cover appropriate 

skills that the individual will use in 

the Peace Corps or VISTA. 

(e) Promotion and recruitment. The 

Corporation may conduct a campaign 

to solicit funds for the National Service Trust and other programs and activities authorized under the national 

service laws and to promote and recruit participants for programs that receive assistance under the national 

service laws. 

(f) Training. The Corporation may 

support national and regional participant and supervisor training, including 

leadership training and training in specific types of service and in building 

the ethic of civic responsibility. 

(g) Research. The Corporation may 

support research on national service, 

including service-learning. 

700 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2533.10 

(h) Intergenerational support. The Corporation may assist programs in developing a service component that com­ bines students, out-of-school youths, 

and older adults as participants to provide needed community services. 

(i) Planning coordination. The Corporation may coordinate communitywide planning among programs and 

projects. 

(j) Youth leadership. The Corporation 

may support activities to enhance the 

ability of youth and young adults to 

play leadership roles in national serv­ ice. 

(k) National program identity. The Corporation may support the development 

and dissemination of materials, including training materials, and arrange for 

uniforms and insignia, designed to promote unity and shared features among 

programs that receive assistance under 

the national service laws. 

(1) Service-learning. The Corporation 

will support innovative programs and 

activities that promote service-learning. 

(m) National youth service day-(1) 

Designation. April 19, 1994, and April 18, 

1995 are each designated as "National 

Youth Service Day". The President is 

authorized and directed to issue a proclamation calling on the people of the 

United States to observe the day with 

appropriate ceremonies and activities. 

(2) Federal activities. In order to ob­ serve National Youth Service Day at 

the Federal level, the Corporation may 

organize and carry out appropriate 

ceremonies and activities. 

(3) Activities. The Corporation may 

make grants to public or private non­ profit organizations with demonstrated 

ability to carry out appropriate activities, in order to support such activities on National Youth Service Day. 

(n) Clearinghouses-(!) Authority. The 

Corporation may establish clearinghouses, either directly or through a grant or contract. Any service-learning 

clearinghouse to be established pursuant to part 2518 of this chapter is eligible to apply for a grant under this sec­ tion. In addition, public or private non­ profit organizations are eligible to 

apply for clearinghouse grants. 

(2) Function. A Clearinghouse may 

perform the following activities: (i) Assist entities carrying out State or local 

community service programs with 

needs assessments and planning; 

(ii) Conduct research and evaluations 

concerning community service; 

(iii) Provide leadership development 

and training to State and local commu­ nity service program administrators, 

supervisors, and participants; and provide training to persons who can provide such leadership development and 

training; 

(iv) Facilitate communication among 

entities carrying out community serv­ ice programs and participants; 

(v) Provide information, curriculum 

materials, and technical assistance re­ lating to planning and operation of 

community service programs, to States 

and local entities eligible to receive 

funds under this chapter; 

(vi) Gather and disseminate information on successful community service 

programs, components of such success­ ful programs, innovative youth skills 

curriculum, and community service 

projects; 

(vii) Coordinate the activities of the 

clearinghouse with appropriate entities 

to avoid duplication of effort; 

(viii) Make recommendations to 

State and local entities on quality con­ trols to improve the delivery of com­ munity service programs and on changes in the programs under this 

chapter; and 

(ix) Carry out such other activities as the Chief Executive Officer determines 

to be appropriate. 

(o) Assistance for Head Start. The Corporation may make grants to, and 

enter into contracts and cooperative 

agreements with, public or nonprofit 

private agencies and organizations that 

receive grants or contracts under the 

Foster Grandparent Program (part B of 

title II of the Domestic Volunteer 

Service Act of 1973 (29 U.S.C. 5011 et 

seq.)), for projects of the type described 

in section 211(a) of such Act (29 U.S.C. 

5011) operating under memoranda of 

agreement with the ACTION Agency, 

for the purpose of increasing the num­ ber of low-income individuals who provide services under such program to 

children who participate in Head Start 

programs under the Head Start Act (42 

U.S.C. 9831 et seq.). 

(p) Other assistance. The Corporation 

may support other activities that are 

701 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Pt. 2534 

consistent with the purposes described 

in part 2531 of this chapter. 

[59 FR 13807, Mar. 23, 1994. Redesignated and 

amended at 75 FR 51413 and 51415, Aug. 20, 

2010] 

PART 2534-SPECIAL ACTIVITIES 

Sec. 

2534.10 National service fellowships. 

2534.20 Presidential awards for service. 

AUTHORITY: 42 u.s.c. 12501 et seq. 

§ 2534.10 National service fellowships. 

The Corporation may award national 

service fellowships on a competitive 

basis. 

[69 FR 6181, Feb. 10, 2004. Redesignated at 75 

FR 54789, Sept. 9, 2010] 

§ 2534.20 Presidential awards for serv­ ice. 

The President, acting through the 

Corporation, may make Presidential 

awards for service to individuals providing significant service, and to outstanding programs. Information about 

recipients of such awards will be widely 

disseminated. The President may provide such awards to any deserving individual or program, regardless of wheth­ er the individual is serving in a program authorized by this chapter or whether the program is itself authorized by this chapter. In no instance, 

however, may the award be a cash 

award. 

[59 FR 13808, Mar. 23, 1994. Redesignated at 75 

FR 54789, Sept. 9, 2010] 

PART 2540-GENERAL 

ADMINISTRATIVE PROVISIONS 

Subpart A-Requirements Concerning the 

Distribution and Use of Corporation Assistance 

Sec. 

2540.100 What restrictions govern the use of 

Corporation assistance? 

2540.110 Limitation on use of Corporation 

funds for administrative costs. 

Subpart B-Requirements Directly Affecting 

the Selection and Treatment of Participants 

2540.200 To whom must I apply suitability 

criteria relating to criminal history? 

45 CFR Ch. XXV (10-1-12 Edition) 

2540.201 What suitability criteria must I 

apply to a covered position? 

2540.202 What two search components of the 

National Service Criminal History Check 

must I satisfy to determine an individual's suitability to serve in a covered position? 

2540.203 When must I conduct a State criminal registry check and a National Sex Offender Public Web site check on an individual in a covered position? 

2540.204 What procedures must I follow in 

conducting a National Service Criminal 

History Check for a covered position? 

2540.205 What documentation must I maintain regarding a National Service Criminal History Check for a covered position? 

2540.206 Under what circumstances may I 

follow alternative procedures in conducting a State criminal registry check 

for a covered position? 

2540.207 Is an individual who refuses to consent to a State criminal registry check, 

or who makes a false statement in connection with a grantee's inquiry concerning the individual's criminal history, 

eligible to serve in a covered position? 

2540.208 Under what circumstances may participants be engaged? 

2540.210 What provisions exist to ensure 

that Corporation-supported programs do 

not discriminate in the selection of participants and staff? 

2540.215 What should a program participant, 

staff members, or beneficiary do if the 

individual believes he or she has been 

subject to illegal discrimination? 

2540.220 Under what circumstances and subject to what conditions are participants 

in Corporation-assisted projects eligible 

for family and medical leave? 

2540.230 What grievance procedures must recipients of Corporation assistance establish? 

Subpart C--Other Requirements for 

Recipients of Corporation Assistance 

2540.300 What must be included in annual 

State reports to the Corporation? 

2540.310 Must programs that receive Corporation assistance establish standards 

of conduct? 

2540.320 How are participant benefits treated? 

2540.330 Parental involvement required 

Subpart 0--Suspension and Termination of 

Corporation Assistance 

2540.400 Under what circumstances will the 

Corporation suspend or terminate a 

grant or contract? 

702 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2540.100 

Subpart E-Restrictions on Use of National 

Service Insignia 

2540.500 What definition applies to this subpart? 

2540.510 What are the restrictions on using 

national service insignia? 

2540.520 What are the consequences for unauthorized use of the Corporation's na­ tional service insignia? 

2540.530 Are there instances where an insignia may be used without getting the approval of the Corporation? 

2540.540 Who has authority to approve use of 

national service insignia? 

2540.550 Is there an expiration date on approvals for use of national service insignia? 

2540.560 How do I renew authority to use a national service insignia? 

Subpart F-False or Misleading Statements 

2540.600 What definitions apply to this subpart? 

2540.610 What are the consequences of making a false or misleading statement? 

2540.620 What are my rights if the Corporation determines that I have made a false or misleading statement? 

2540.630 What information must I provide to 

contest a proposed action? 

2540.640 When will the reviewing official 

make a decision on the proposed action? 

2540.650 How may I contest a reviewing official's decision to uphold the proposed action? 

2540.660 If the final decision determines that 

I received a financial benefit improperly, 

will I be required to repay that benefit? 

2540.670 Will my qualification to participate or eligibility for benefits be suspended 

during the review process? 

AUTHORITY: E.O. 13331, 69 FR 9911; 18 U.S.C. 

506, 701, 1017; 42 u.s.c. 12653, 12631-12637; 42 

u.s.c. 5065. 

SOURCE: 59 FR 13808, Mar. 23, 1994, unless 

otherwise noted. 

Subpart A-Requirements Concerning the Distribution and 

Use of Corporation Assistance 

§ 2540.100 What restrictions govern 

the use of Corporation assistance? 

(a) Supplantation. Corporation assist­ ance may not be used to replace State 

and local public funds that had been 

used to support programs of the type 

eligible to receive Corporation support. 

For any given program, this condition 

will be satisfied if the aggregate nonFederal public expenditure for that 

program in the fiscal year that support 

is to be provided is not less than the 

previous fiscal year. 

(b) Religious use. Corporation assist­ ance may not be used to provide religious instruction, conduct worship 

services, or engage in any form of proselytization. 

(c) Political activity. Corporation as­ sistance may not be used by program 

participants or staff to assist, promote, or deter union organizing; or finance, 

directly or indirectly, any activity designed to influence the outcome of a Federal, State or local election to public office. 

(d) Contracts or collective bargaining 

agreements. Corporation assistance may 

not be used to impair existing con­ tracts for services or collective bargaining agreements. 

(e) Nonduplication. Corporation as­ sistance may not be used to duplicate an activity that is already available in 

the locality of a program. And, unless 

the requirements of paragraph (f) of 

this section are met, Corporation as­ sistance will not be provided to a private nonprofit entity to conduct activities that are the same or substantially 

equivalent to activities provided by a State or local government agency in 

which such entity resides. 

(f) Nondisplacement. (1) An employer 

may not displace an employee or position, including partial displacement 

such as reduction in hours, wages, or employment benefits, as a result of the use by such employer of a participant 

in a program receiving Corporation as­ sistance. 

(2) An organization may not displace a volunteer by using a participant in a program receiving Corporation assist­ ance. 

(3) A service opportunity will not be 

created under this chapter that will infringe in any manner on the promotional opportunity of an employed 

individual. 

(4) A participant in a program receiving Corporation assistance may not 

perform any services or duties or en­ gage in activities that would otherwise 

be performed by an employee as part of 

the assigned duties of such employee. 

(5) A participant in any program re­ ceiving assistance under this chapter 

703 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2540.110 

may not perform any services or duties, or engage in activities, that--- (i) Will supplant the hiring of employed workers; or (ii) Are services, duties, or activities 

with respect to which an individual has 

recall rights pursuant to a collective 

bargaining agreement or applicable 

personnel procedures. 

(6) A participant in any program receiving assistance under this chapter 

may not perform services or duties 

that have been performed by or were 

assigned to any- (i) Presently employed worker; 

(ii) Employee who recently resigned 

or was discharged; 

(iii) Employee who is subject to a reduction in force or who has recall 

rights pursuant to a collective bargaining agreement or applicable personnel procedures; 

(iv) Employee who is on leave (terminal, temporary, vacation, emer­ gency, or sick); or (v) Employee who is on strike or who 

is being locked out. 

[59 FR 13808, Mar. 23, 1994, as amended at 70 

FR 39607, July 8, 2005] 

§2540.110 Limitation on use of Corporation funds for administrative 

costs. 

(a)(l) Not more than five percent of 

the grant funds provided under 45 CFR 

2516, 2517, 2519, and 2521 for any fiscal 

year may be used to pay for administrative costs, as defined in §2510.20 of 

this chapter. 

(2) The distribution of administrative 

costs between the grant and any 

subgrant will be subject to the approval of the Corporation. 

(3) In applying the limitation on administrative costs the Corporation will 

approve one of the following methods 

in the award document: 

(i) Limit the amount or rate of indirect costs that may be paid with Corporation funds under a grant or subgrant to five percent of total Corporation funds expended, provided 

that--- (A) Organizations that have an established indirect cost rate for Federal 

awards will be limited to this method; 

and 

(B) Unreimbursed indirect costs may 

be applied to meeting operational 

45 CFR Ch. XXV (10-1-12 Edition) 

matching requirements under the Corporation's award; 

(ii) Specify that a fixed rate of five 

percent or less (not subject to supporting cost documentation) of total 

Corporation funds expended may be 

used to pay for administrative costs, 

provided that the fixed rate is in conjunction with an overall 15 percent administrative cost factor to be used for 

organizations that do not have established indirect cost rates; or 

(iii) Utilize such other method that 

the Corporation determines in writing 

is consistent with 0MB guidance and 

other applicable requirements, helps 

minimize the burden on grantees or 

subgrantees, and is beneficial to grantees or subgrantees and the Federal 

Government. 

(b) Costs attributable to administrative functions as well as program functions should be prorated between administrative costs and program costs. 

[63 FR 18138, Apr. 14, 1998] 

Subpart B-Requirements Directly 

Affecting the Selection and 

Treatment of Participants 

§ 2540.200 To whom must I apply suitability criteria relating to criminal 

history? 

You must apply suitability criteria 

relating to criminal history to an individual applying for, or serving in, a position for which an individual receives 

a Corporation grant-funded living allowance, stipend, education award, salary, or other remuneration. 

[72 FR 48582, Aug. 24, 2007, as amended at 74 

FR 46507, Sept. 10, 2009] 

§ 2540.201 What suitability criteria 

must I apply to a covered position? 

An individual is ineligible to serve in 

a covered position if the individual: 

(a) Is registered, or required to be 

registered, on a State sex offender registry or the National Sex Offender Registry; or 

(b) Has been convicted of murder, as 

defined in section 1111 of title 18, 

United States Code. 

[74 FR 46507, Sept. 10, 2009] 

704 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2540.205 

§ 2540.202 What two search components of the National Service Criminal History Check must I satisfy to 

determine an individual's suitability to serve in a covered position? 

Unless the Corporation approves an 

alternative screening protocol, in determining an individual's suitability to 

serve in a covered position, you are responsible for conducting and documenting a National Service Criminal 

History Check, which consists of the 

following two search components: 

(a) State criminal registry search. A 

search (by name or fingerprint) of the 

State criminal registry for the State in 

which your program operates and the 

State in which the individual resides at 

the time of application; and 

(b) National Sex Offender Public Registry. A name-based search of the Department of Justice (DOJ) National 

Sex Offender Public Registry (NSOPR). 

[72 FR 48582, Aug. 24, 2007] 

§ 2540.203 When must I conduct a State criminal registry check and a National Sex Offender Public Web 

site check on an individual in a cov­ ered position? 

(a) The State criminal registry check 

must be conducted on Foster Grandparents, Senior Companions, and 

AmeriCorps State and National participants and grant-funded staff with recurring access to children, persons age 

60 or older, or individuals with disabilities, who enroll in, or are hired by, 

your program after November 23, 2007. 

For all other covered individuals, the 

State criminal registry check must be 

conducted on an individual who enrolls 

in, or is hired by, your program on or 

after October 1, 2009. 

(b) The National Sex Offender Public 

Web site check must be conducted on an individual who is serving, or applies 

to serve, as a Foster Grandparent, Senior Companion, or AmeriCorps State 

and National participant or grant-funded staff with recurring access to children, persons age 60 or older, or individuals with disabilities on or after November 23, 2007. For all other covered 

individuals, the National Sex Offender 

Public Web site check must be con­ ducted on an individual who enrolls in, 

or is hired by, your program on or after 

October 1, 2009. 

(c) For an individual who serves con­ secutive terms of service in your program with a break in service of no 

more than 30 days, no additional check 

is required after the first term. 

[72 FR 48582, Aug. 24, 2007, as amended at 74 

FR 46507, Sept. 10, 2009] 

§ 2540.204 What procedures must I follow in conducting a National Service Criminal History Check for a covered position? 

You are responsible for following 

these procedures: 

(a) Verify the individual's identity by 

exammmg the individual's government-issued photo identification card, 

such as a driver's license; 

(b) Obtain prior, written authorization for the State criminal registry 

check and the appropriate sharing of 

the results of that check within the 

program from the individual (but not 

for the NSOPR check); 

(c) Document the individual's understanding that selection into the program is contingent upon the organization's review of the individual's criminal history, if any; 

(d) Provide a reasonable opportunity 

for the individual to review and challenge the factual accuracy of a result 

before action is taken to exclude the 

individual from the position; 

(e) Provide safeguards to ensure the 

confidentiality of any information relating to the criminal history check, 

consistent with authorization provided 

by the applicant; and 

(f) Ensure that an individual, for 

whom the results of a required State 

criminal registry check are pending, is 

not permitted to have access to children, persons age 60 and older, or individuals with disabilities without being 

accompanied by an authorized program 

representative who has previously been 

cleared for such access. 

[72 FR 48582, Aug. 24, 2007] 

§ 2540.205 What documentation must I 

maintain regarding a National 

Service Criminal History Check for a covered position? 

You must: 

(a) Document in writing that you 

verified the identity of the individual 

705 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2540.206 

in a covered position by examining the 

individual's government-issued photo 

identification card, and that you con­ ducted the required checks for the cov­ ered position; and 

(b) Maintain the results of the National Service Criminal History check 

(unless precluded by State law) and 

document in writing that you considered the results in selecting the individual. 

[72 FR 48582, Aug. 24, 2007] 

§ 2540.206 Under what circumstances 

may I follow alternative procedures in conducting a State criminal registry check for a covered position? 

(a) FBI fingerprint-based check. If you 

conduct and document a fingerprintbased criminal history check through 

the Federal Bureau of Investigation, 

you will be deemed to have satisfied 

the State criminal registry check re­ quirement and do not need separate approval by the Corporation. 

(b) Name-based search. If you conduct 

and document a name-based criminal 

history check through a source other 

than the FBI that includes a check of 

the criminal records repository in the 

State in which your program is operating, as well as in the State in which 

the applicant lives, you will be deemed 

to have satisfied the State criminal 

registry check requirement and do not 

need separate approval by the Corporation. 

(c) Alternative search approval. If you 

demonstrate that you are prohibited or otherwise precluded under State law 

from complying with a Corporation re­ quirement relating to criminal history 

checks or that you can obtain substantially equivalent or better information 

through an alternative process, the 

Corporation will consider approving an alternative search protocol that you 

submit in writing to the Corporation's 

Office of Grants Management. The Office of Grants Management will review 

the alternative protocol to ensure that 

it: 

(1) Verifies the identity of the individual; and 

(2) Includes a search of an alternative 

criminal database that is sufficient to 

identify the existence, or absence of, 

criminal offenses. 

[72 FR 48582, Aug. 24, 2007] 

45 CFR Ch. XXV (10-1-12 Edition) 

§ 2540.207 Is an individual who refuses 

to consent to a State criminal registry check, or who makes a false 

statement in connection with a grantee's inquiry concerning the individual's criminal history, eligible 

to serve in a covered position? 

An individual who refuses to consent 

to a State criminal registry check, or who makes a false statement in con­ nection with a grantee's inquiry con­ cerning the individual's criminal history, is not eligible to serve in a cov­ ered position. 

[72 FR 48582, Aug. 24, 2007] 

§ 2540.208 Under what circumstances 

may participants be engaged? 

A State may not engage a participant to serve in any program that re­ ceives Corporation assistance unless 

and until amounts have been appropriated under section 501 of the Act (42 

U.S.C. 12681) for the prov1s10n of 

AmeriCorps educational awards and for 

the payment of other necessary ex­ penses and costs associated with such 

participant. 

[59 FR 13808, Mar. 23, 1994. Redesignated at 72 

FR 48582, Aug. 24, 2007] 

§ 2540.210 What provisions exist to en­ sure that Corporation-supported 

programs do not discriminate in the 

selection of participants and staff? 

(a) An individual with responsibility 

for the operation of a project that re­ ceives Corporation assistance must not 

discriminate against a participant in, or member of the staff of, such project on the basis of race, color, national origin, sex, age, or political affiliation of 

such participant or member, or on the 

basis of disability, if the participant or member is a qualified individual with a disability. 

(b) Any Corporation assistance con­ stitutes Federal financial assistance 

for purposes of title VI of the Civil 

Rights Act of 1964 (42 U.S.C. 2000d et 

seq.), title IX of the Education Amendments of 1972 (20 U.S.C. 1681 et seq.), 

section 504 of the Rehabilitation Act of 

1973 (29 U.S.C. 794), and the Age Discrimination Act of 1975 (42 U.S.C. 6101 

et seq.), and constitutes Federal financial assistance to an education program or activity for purposes of the 

706 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2540.220 

Education Amendments of 1972 (20 

U.S.C. 1681 et seq.). 

(c) An individual with responsibility 

for the operation of a project that re­ ceives Corporation assistance may not 

discriminate on the basis of religion 

against a participant in such project or 

a member of the staff of such project 

who is paid with Corporation funds. 

This provision does not apply to the 

employment (with Corporation assistance) of any staff member of a Corporation-supported project who was employed with the organization operating 

the project on the date the Corporation 

grant was awarded. 

(d) Grantees must notify all program 

participants, staff, applicants, and 

beneficiaries of: 

(1) Their rights under applicable federal nondiscrimination laws, including 

relevant provisions of the national 

service legislation and implementing 

regulations; and 

(2) The procedure for filing a discrimination complaint with the Corporation's Office of Civil Rights and Inclusiveness. 

[59 FR 13808, Mar. 23, 1994, as amended at 73 

FR 53760, Sept. 17, 2008] 

§ 2540.215 What should a program participant, staff members, or beneficiary do if the individual believes 

he or she has been subject to illegal 

discrimination? 

A program participant, staff member, 

or beneficiary who believes that he or she has been subject to illegal discrimination should contact the Corporation's Office of Civil Rights and Inclusiveness, which offers an impartial discrimination complaint resolution process. Participation in a discrimination 

complaint resolution process is protected activity; a grantee is prohibited 

from retaliating against an individual 

for making a complaint or participating in any manner in an investigation, proceeding, or hearing. 

[73 FR 53760, Sept. 17, 2008] 

§ 2540.220 Under what circumstances 

and subject to what conditions are participants in Corporation-assisted programs eligible for family 

and medical leave? 

(a) Participants in State, local, or private nonprofits programs. A participant 

in a State, local, or private nonprofit 

program receiving support from the 

Corporation is considered an eligible 

employee of the program's project 

sponsor under the Family and Medical 

Leave Act of 1993 (29 CFR part 825) if-

(1) The participant has served for at 

least 12 months and 1,250 hours during 

the year preceding the start of the 

leave; and 

(2) The program's project sponsors 

engages in commerce or any industry 

or activity affecting commerce, and 

employs at least 50 employees for each 

working day during 20 or more calendar workweeks in the current or preceding calendar year. 

(b) Participants in Federal programs. 

Participants in Federal programs operated by the Corporation or by another 

Federal agency will be considered Federal employees for the purposes of the 

Family and Medical Leave Act if the 

participants have completed 12 months 

of service and the project sponsor is an employing agency as defined in 5 U.S.C 

6381 et seq.; such participants therefore 

will be eligible for the same family and 

medical leave benefits afforded to such 

Federal employees. 

(c) General terms and conditions. Participants that qualify as eligible em­ ployees under paragraphs (a) or (b) of 

this section are entitled to take up to 

12 weeks of unpaid leave during a 12 

month period for any of the following 

reasons (in the cases of both paragraphs (c)(l) and (2) of this section the 

entitlement to leave expires 12 months 

after the birth or placement of such 

child): (1) The birth of a child to a participant; 

(2) The placement of a child with a participant for adoption or foster care; 

(3) The serious illness of a participant's spouse, child or parent; or 

(4) A participant's serious health condition that makes that participant un­ able to perform his or her essential 

service duties (a serious health condition is an illness or condition that re­ quires either inpatient care or con­ tinuing treatment by a health care provider). 

(d) Intermittent leave or reduced service. The program, serving as the project 

sponsor, may allow a participant to 

take intermittent leave or reduce his 

or her service hours due to the birth of 

707 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2540.230 

or placement of a child for adoption or foster care. The participant may also 

take leave to care for a seriously ill 

immediate family member or may take 

leave due to his or her own serious ill­ ness whenever it is medically nec­ essary. 

(e) Alternate placement. If a participant requests intermittent leave or a reduced service hours due to a serious 

illness or a family member's sickness, 

and the need for leave is foreseeable 

based on planned medical treatment, 

the program, or project sponsor may 

temporarily transfer the participant to an alternative service position if the 

participant: (1) Is qualified for the position; and 

(2) Receives the same benefits such as stipend or living allowance and the position better accommodates the participants recurring periods of leave. 

(f) Certification of cause. A program, or project sponsor may require that the 

participant support a leave request 

with a certification from the health care provider of the participant or the 

participant's family member. If a program sponsor requests a certification, 

the participant must provide it in a timely manner. (g) Continuance of coverage. (1) If a State, local or private program provides for health insurance for the fulltime participant, the sponsor must 

continue to provide comparable health 

coverage at the same level and conditions that coverage would have been 

provided for the duration of the participant's leave. 

(2) If the Federal program provides 

health insurance coverage for the fulltime participant, the sponsor must also 

continue to provide the same health care coverage for the duration of the 

participant's leave. 

(h) Failure to return. If the participant fails to return to the program at 

the end of leave for any reason other 

than continuation, recurrence or onset 

of a serious health condition or other 

circumstances beyond his or her con­ trol, the program may recover the premium that he or she paid during any 

period of unpaid leave. 

(i) Applicability to term of service. Any 

absence, due to family and medical 

leave, will not be counted towards the 

participant's term of service. 

45 CFR Ch. XXV (10-1-12 Edition) 

§ 2540.230 What grievance procedures 

must recipients of Corporation as­ sistance establish? 

State and local applicants that re­ ceive assistance from the Corporation 

must establish and maintain a procedure for the filing and adjudication of 

grievances from participants, labor or­ ganizations, and other interested individuals concerning programs that re­ ceive assistance from the Corporation. 

A grievance procedure may include dispute resolution programs such as mediation, facilitation, assisted negotiation 

and neutral evaluation. If the griev­ ance alleges fraud or criminal activity, 

it must immediately be brought to the 

attention of the Corporation's inspector general. 

(a) Alternative dispute resolution. (1) 

The aggrieved party may seek resolution through alternative means of dispute resolution such as mediation or facilitation. Dispute resolution proceedings must be initiated within 45 

calendar days from the date of the alleged occurrence. At the initial session 

of the dispute resolution proceedings, 

the party must be advised in writing of 

his or her right to file a grievance and 

right to arbitration. If the matter is re­ solved, and a written agreement is 

reached, the party will agree to forego 

filing a grievance in the matter under 

consideration. 

(2) If mediation, facilitation, or other 

dispute resolution processes are se­ lected, the process must be aided by a neutral party who, with respect to an issue in controversy, functions specifically to aid the parties in resolving the 

matter through a mutually achieved 

and acceptable written agreement. The 

neutral party may not compel a resolution. Proceedings before the neutral 

party must be informal, and the rules 

of evidence will not apply. With the ex­ ception of a written and agreed upon 

dispute resolution agreement, the proceeding must be confidential. 

(b) Grievance procedure for unresolved 

complaints. If the matter is not resolved 

within 30 calendar days from the date 

the informal dispute resolution process 

began, the neutral party must again inform the aggrieving party of his or her 

right to file a formal grievance. In the 

event an aggrieving party files a grievance, the neutral may not participate 

708 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2540.300 

in the formal complaint process. In addition, no communication or proceedings of the informal dispute resolution process may be referred to or introduced into evidence at the grievance 

and arbitration hearing. Any decision 

by the neutral party is advisory and is 

not binding unless both parties agree. 

(c) Time limitations. Except for a grievance that alleges fraud or criminal activity, a grievance must be made no later than one year after the date of 

the alleged occurrence. If a hearing is 

held on a grievance, it must be con­ ducted no later than 30 calendar days 

after the filing of such grievance. A decision on any such grievance must be 

made no later than 60 calendar days 

after the filing of the grievance. 

(d) Arbitration-(!) Arbitrator-(i) Joint 

selection by parties. If there is an ad­ verse decision against the party who 

filed the grievance, or 60 calendar days 

after the filing of a grievance no decision has been reached, the filing party 

may submit the grievance to binding 

arbitration before a qualified arbitrator who is jointly selected and independent of the interested parties. 

(ii) Appointment by Corporation. If the 

parties cannot agree on an arbitrator 

within 15 calendar days after receiving a request from one of the grievance 

parties, the Corporations Chief Executive Officer will appoint an arbitrator 

from a list of qualified arbitrators. 

(2) Time Limits-(i) Proceedings. An ar­ bitration proceeding must be held no later than 45 calendar days after the 

request for arbitration, or, if the arbitrator is appointed by the Chief Executive Officer, the proceeding must occur no later than 30 calendar days after the 

arbitrator's appointment. 

(ii) Decision. A decision must be made 

by the arbitrator no later than 30 calendar days after the date the arbitration proceeding begins. 

(3) The cost. The cost of the arbitration proceeding must be divided evenly 

between the parties to the arbitration. 

If, however, a participant, labor organization, or other interested individual 

prevails under a binding arbitration 

proceeding, the State or local applicant that is a party to the grievance 

must pay the total cost of the proceeding and the attorney's fees of the 

prevailing party. 

(e) Suspension of placement. If a griev­ ance is filed regarding a proposed 

placement of a participant in a program that receives assistance under 

this chapter, such placement must not 

be made unless the placement is con­ sistent with the resolution of the griev­ ance. 

(f) Remedies. Remedies for a grievance 

filed under a procedure established by a recipient of Corporation assistance 

may include--- (1) Prohibition of a placement of a participant; and 

(2) In grievance cases where there is a violation of nonduplication or non­ displacement requirements and the em­ ployer of the displaced employee is the 

recipient of Corporation assistance--- (i) Reinstatement of the employee to 

the position he or she held prior to the 

displacement; 

(ii) Payment of lost wages and benefits; 

(iii) Re-establishment of other relevant terms, conditions and privileges 

of employment; and 

(iv) Any other equitable relief that is 

necessary to correct any violation of 

the nonduplication or nondisplacement 

requirements or to make the displaced 

employee whole. 

(g) Suspension or termination of assistance. The Corporation may suspend or terminate payments for assistance 

under this chapter. 

(h) Effect of noncompliance with arbitration. A suit to enforce arbitration 

awards may be brought in any Federal 

district court having jurisdiction over the parties without regard to the 

amount in controversy or the parties' 

citizenship. 

Subpart C-Other Requirements 

for Recipients of Corporation 

Assistance 

§ 2540.300 What must be included in 

annual State reports to the Corporation? 

(a) In general. Each State rece1vrng 

assistance under this title must prepare and submit, to the Corporation, an annual report concerning the use of 

assistance provided under this chapter 

and the status of the national and com­ munity service programs in the State 

that receive assistance under this 

709 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2540.310 

chapter. A State's annual report must 

include information that demonstrates 

the State's compliance with the re­ quirements of this chapter. 

(b) Local grantees. Each State may re­ quire local grantees that receive assist­ ance under this chapter to supply such 

information to the State as is nec­ essary to enable the State to complete 

the report required under paragraph (a) 

of this section, including a comparison 

of actual accomplishments with the 

goals established for the program, the 

number of participants in the program, 

the number of service hours generated, 

and the existence of any problems, 

delays or adverse conditions that have 

affected or will affect the attainment 

of program goals. 

(c) Availability of report. Reports submitted under paragraph (a) of this sec­ tion must be made available to the 

public on request. 

§ 2540.310 Must programs that receive 

Corporation assistance establish 

standards of conduct? 

Yes. Programs that receive assist­ ance under this title must establish 

and stringently enforce standards of 

conduct at the program site to promote 

proper moral and disciplinary conditions. 

§ 2540.320 How are participant benefits treated? 

Section 142(b) of the Job Training 

Partnership Act (29 U.S.C. 1552(b)) shall 

apply to the programs conducted under 

this chapter as if such programs were conducted under the Job Training 

Partnership Act (29 U.S.C. 1501 et seq.). 

§ 2540.330 Parental involvement re- quired 

(a) Consultation Requirement. Programs that receive assistance under 

the national service laws shall consult 

with the parents or legal guardians of 

children in developing and operating 

programs that include and serve children. 

(b) Parental Permission. Programs 

that receive assistance under the na­ tional service laws must, before transporting minor children, provide the 

children's parents or legal guardians 

with the reason for the transportation 

and obtain the parent's or legal guard45 CFR Ch. XXV (10-1-12 Edition) 

ian's permission for such transportation, consistent with State law. 

[74 FR 46507, Sept. 10, 2009] 

Subpart D-Suspension and Termination of Corporation Assistance 

§ 2540.400 Under what circumstances 

will the Corporation suspend or terminate a grant or contract? 

(a) Suspension of a grant or contract. 

In emergency situations, the Corporation may suspend a grant or contract 

for not more than calendar 30 days. Examples of such situations may include, 

but are not limited to: (1) Serious risk 

to persons or property; 

(2) Violations of Federal, State or 

local criminal statutes; and 

(3) Material violation(s) of the grant 

or contract that are sufficiently seri­ ous that they outweigh the general policy in favor of advance notice and opportunity to show cause. 

(b) Termination of a grant or contract. 

The Corporation may terminate or revoke assistance for failure to comply 

with applicable terms and conditions of 

this chapter. However, the Corporation 

must provide the recipient reasonable 

notice and opportunity for a full and 

fair hearing, subject to the following 

conditions: (1) The Corporation will no­ tify a recipient of assistance by letter 

or telegram that the Corporation intends to terminate or revoke assistance, either in whole or in part, unless 

the recipient shows good cause why 

such assistance should not be terminated or revoked. In this communication, the grounds and the effective date 

for the proposed termination or revocation will be described. The recipient 

will be given at least 7 calendar days to 

submit written material in opposition 

to the proposed action. 

(2) The recipient may request a hearing on a proposed termination or rev­ ocation. Providing five days notice to 

the recipient, the Corporation may authorize the conduct of a hearing or 

other meetings at a location convenient to the recipient to consider the 

proposed suspension or termination. A 

transcript or recording must be made 

710 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2540.610 

of a hearing conducted under this section and be available for inspection by 

any individual. 

Subpart E-Restrictions on Use of 

National Service Insignia 

SOURCE: 73 FR 53761, Sept. 17, 2008, unless 

otherwise noted. 

§ 2540.500 What definition applies to 

this subpart? 

National Service Insignia. For this subpart, national service insignia means the 

former and current seal, logos, names, 

or symbols of the Corporation's programs, products, or services, including 

those for AmeriCorps, VISTA, Learn 

and Serve America, Senior Corps, Foster Grandparents, the Senior Companion Program, the Retired and Senior Volunteer Program, the National 

Civilian Community Corps, and any 

other program or project that the Corporation administers. 

§ 2540.510 What are the restrictions on 

using national service insignia? 

The national service insignia are 

owned by the Corporation and only 

may be used as authorized. The national service insignia may not be used 

by non-federal entities for fundraising 

purposes or in a manner that suggests 

Corporation endorsement. 

§ 2540.520 What are the consequences 

for unauthorized use of the Corporation's national service insignia? 

Any person who uses the national 

service insignia without authorization 

may be subject to legal action for 

trademark infringement, enjoined from 

continued use, and, for certain types of 

unauthorized uses, other civil or criminal penalties may apply. 

§ 2540.530 Are there instances where 

an insignia may be used without 

getting the approval of the Corporation? 

All uses of the national service insignia require the written approval of the 

Corporation. 

§ 2540.540 Who has authority to approve use of national service insignia? 

Approval for limited uses may be provided through the terms of a written 

grant or other agreement. All other uses must be approved in writing by 

the director of the Corporation's Office 

of Public Affairs, or his or her designee. 

§ 2540.550 Is there an expiration date on approvals for use of national 

service insignia? 

The approval to use a national serv­ ice insignia will expire as determined 

in writing by the director of the Office 

of Public Affairs, or his or her designee. However, the authority to use an insignia may be revoked at any time if 

the Corporation determines that the use involved is injurious to the image 

of the Corporation or if there is a fail­ ure to comply with the terms and con­ ditions of the authorization. 

§ 2540.560 How do I renew authority to use a national service insignia? 

Requests for renewed authority to use an insignia must follow the procedures for initial approval as set out in 

§2540.540. 

Subpart F-False or Misleading 

Statements 

SOURCE: 73 FR 53761, Sept. 17, 2008, unless 

otherwise noted. 

§ 2540.600 What definitions apply to 

this subpart? 

You. For this subpart, you refers to a participant in a national service program. 

§ 2540.610 What are the consequences 

of making a false or misleading 

statement? 

If it is determined that you made a false or misleading statement in con­ nection with your eligibility for a benefit from, or qualification to participate in, a Corporation-funded program, 

it may result in the revocation of the 

qualification or forfeiture of the benefit. Revocation and forfeiture under 

this part are in addition to any other 

remedy available to the Federal Government under the law against persons 

711 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2540.620 

who make false or misleading statements in connection with a Federallyfunded program. 

§ 2540.620 What are my rights if the 

Corporation determines that I have 

made a false or misleading statement? 

If the Corporation determines that 

you have made a false or misleading 

statement in connection with your eligibility for a benefit from, or qualification to participate in, a Corporationfunded program, you will be hand delivered a written notice, or sent a written 

notice to your last known street address or e-mail address or that of your 

identified counsel at least 15 days before any proposed action is taken. The 

notice will include the facts sur­ rounding the determination and the ac­ tion the Corporation proposes to take. 

The notice will also identify the re­ viewing official in your case and provide other pertinent information. You 

will be allowed to show good cause as to why forfeiture, revocation, the denial of a benefit, or other action should 

not be implemented. You will be given 

10 calendar days to submit written ma­ terials in opposition to the proposed 

action. 

§ 2540.630 What information must I 

provide to contest a proposed ac­ tion? 

Your written response must include 

specific facts that contradict the statements made in the notice of proposed 

action. A general statement of denial is 

insufficient to raise a dispute over the 

facts material to the proposed action. 

Your response should also include copies of any documents that support your 

argument. 

§ 2540.640 When will the reviewing official make a decision on the proposed action? 

The reviewing official will issue a decision within 45 days of receipt of your 

response. 

§ 2540.650 How may I contest a reviewing official's decision to uphold the 

proposed action? 

If the Corporation's reviewing official concludes that the proposed ac­ tion, in full or in part, should still be 

implemented, you will have an oppor45 CFR Ch. XXV (10-1-12 Edition) 

tunity to request an additional proceeding. A Corporation program director or designee will conduct a review of 

the complete record, including such additional relevant documents you submit. If deemed appropriate, such as where there are material facts in genuine dispute, the program director or designee may conduct a telephonic or in person meeting. If a meeting is con­ ducted, it will be recorded and you will 

be provided a copy of the recording. 

The program director or designee will 

issue a decision within 30 days of the 

conclusion of the review of the record or meeting. The decision of the program director or designee is final and 

cannot be appealed further within the 

agency. 

§ 2540.660 If the final decision determines that I received a financial 

benefit improperly, will I be re­ quired to repay that benefit? 

If it is determined that you received a financial benefit improperly, you 

may be required to reimburse the program for that benefit. 

§ 2540.670 Will my qualification to participate or eligibility for benefits be 

suspended during the review process? 

If the reviewing official determines 

that, based on the information available, there is a reasonable likelihood 

that you will be determined disqualified or ineligible, your qualification or eligibility may be suspended, pending 

issuance of a final decision, to protect 

the public interest. 

PART 2541-UNIFORM ADMINIS- TRATIVE REQUIREMENTS FOR 

GRANTS AND COOPERATIVE 

AGREEMENTS TO STATE AND 

LOCAL GOVERNMENTS 

Subpart A-General 

Sec. 

2541.10 Purpose and scope of this part. 

2541.20 Scope of subpart. 

2541.30 Definitions. 

2541.40 Applicability. 

2541.50 Effect on other issuances. 

2541.60 Additions and exceptions. 

Subpart B-Pre-Award Requirements 

2541.100 Forms for applying for grants. 

712 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2541.30 

2541.110 State plans. 

2541.120 Special grant or subgrant conditions for "high-risk" grantees. 

Subpart C-Post Award Requirements 

2541.200 Standards for financial management systems. 

2541.210 Payment. 

2541.220 Allowable costs. 

2541.230 Period of availability of funds. 

2541.240 Matching or cost sharing. 

2541.250 Program income. 

2541.260 Non-Federal audit. 

Subpart D--Changes, Property and 

Subawards 

2541.300 Changes. 

2541.310 Real property. 

2541.320 Equipment. 

2541.330 Supplies. 

2541.340 Copyrights. 

2541.350 Subawards to debarred and suspended parties. 

2541.360 Procurement. 

2541.370 Subgrants. 

Subpart E-Reports, Records, Retention 

and Enforcement 

2541.400 Monitoring and reporting program 

performance. 

2541.410 Financial reporting. 

2541.420 Retention and access requirements 

for records. 

2541.430 Enforcement. 

2541.440 Termination for convenience. 

Subpart F-Afler the Grant Requirements 

2541.500 Closeout. 

2541.510 Later disallowances and adjustments. 

2541.520 Collection of amounts due. 

AUTHORITY: 42 u.s.c. 4950 et seq. and 12501 

et seq. 

SOURCE: 59 FR 41598, Aug. 12, 1994, unless 

otherwise noted. 

Subpart A-General 

§ 2541.10 Purpose and scope of this 

part. 

This part establishes uniform administrative rules for Federal grants and 

cooperative agreements and subawards 

to State, local and Indian tribal governments. 

§ 2541.20 Scope of subpart. 

This subpart contains general rules 

pertaining to this part and procedures 

for control of exceptions from this 

part. 

§ 2541.30 Definitions. 

The following definitions apply to 

terms used in this part. 

Accrued expenditures. The term ac­ crued expenditures means the charges 

incurred by the grantee during a given 

period requiring the provision of funds 

for: 

(1) Goods and other tangible property 

received; 

(2) Services performed by employees, 

contractors, subgrantees, subcontractors, and other payees; and 

(3) Other amounts becoming owed 

under programs for which no current 

services or performance is required, 

such as annuities, insurance claims, 

and other benefit payments. 

Accrued income. The term accrued in­ come means the sum of: 

(1) Earnings during a given period 

from services performed by the grantee 

and goods and other tangible property 

delivered to purchasers; and 

(2) Amounts becoming owed to the 

grantee for which no current services or performance is required by the 

grantee. 

Acquisition cost. The term acquisition 

cost of an item of purchased equipment means the net invoice unit price of the 

property including the cost of modifications, attachments, accessories, or auxiliary apparatus necessary to make 

the property usable for the purpose for 

which it was acquired. Other charges 

such as the cost of installation, transportation, taxes, duty or protective intransit insurance, shall be included or excluded from the unit acquisition cost 

in accordance with the grantee's regular accounting practices. 

Administrative requirements. The term 

administrative requirements means those 

matters common to grants in general, 

such as financial management, kinds 

and frequency of reports, and retention 

of records. These are distinguished 

from "programmatic" requirements, 

which concern matters that can be 

treated only on a program-by-program or grant-by-grant basis, such as kinds 

of activities that can be supported by 

grants under a particular program. 

Awarding agency. The term awarding 

agency means: 

713 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2541.30 

(1) With respect to a grant, the Federal agency; and 

(2) With respect to a subgrant, the 

party that awarded the subgrant. 

Cash contributions. The term cash contributions means the grantee's cash outlay, including the outlay of money con­ tributed to the grantee or subgrantee 

by other public agencies and institutions, and private organizations and individuals. When authorized by Federal 

legislation, Federal funds received 

from other assistance agreements may 

be considered as grantee or subgrantee 

cash contributions. 

Contract. The term contract means (except as used in the definitions for 

"grant" and "subgrant" in this section 

and except where qualified by "Federal") a procurement contract under a grant or subgrant, and means a procurement subcontract under a con­ tract. 

Cost sharing (or matching). The term 

cost sharing (or matching) means the 

value of the third party in-kind con­ tributions and the portion of the costs 

of a federally assisted project or program not borne by the Federal Government. 

Cost-type contract. The term cost-type 

contract means a contract or subcontract under a grant in which the 

contractor or subcontractor is paid on the basis of the costs it incurs, with or without a fee. 

Equipment. The term equipment means tangible, nonexpendable, personal 

property having a useful life of more than one year and an acquisition cost 

of $5,000 or more per unit. A grantee 

may use its own definition of equipment provided that such definition 

would at least include all equipment 

mentioned in this definition. 

Expenditure report. The term expenditure report means: (1) For nonconstruction grants, the 

SF-269 "Financial Status Report" (or 

other equivalent report); 

(2) for construction grants, the SF- 271 "Outlay Report and Request for Reimbursement" (or other equivalent re­ port). 

Federally recognized Indian tribal government. The term federally recognized 

Indian tribal government means the governing body or a governmental agency 

of any Indian tribe, band, nation, or 

45 CFR Ch. XXV (10-1-12 Edition) 

other organized group or community 

(including any Native village as defined in section 3 of the Alaska Native 

Claims Settlement Act, 85 Stat. 688) 

certified by the Secretary of the Interior as eligible for the special programs 

and services provided by him through 

the Bureau of Indian Affairs. 

Government. The term government 

means a State or local government or a 

federally recognized Indian tribal government. 

Grant. The term grant means an 

award of financial assistance, including 

cooperative agreements, in the form of 

money, or property in lieu of money, 

by the Federal Government to an eligible grantee. The term does not include 

technical assistance which provides 

services instead of money, or other assistance in the form of revenue sharing, loans, loan guarantees, interest 

subsidies, insurance, or direct appropriations. Also, the term does not include assistance, such as a fellowship or other lump sum award, which the 

grantee is not required to account for. 

Grantee. The term grantee means the 

government to which a grant is awarded and which is accountable for the use of the funds provided. The grantee is 

the entire legal entity even if only a 

particular component of the entity is 

designated in the grant award document. 

Local government. The term local government means a county, municipality, 

city, town, township, local public authority (including any public and Indian housing agency under the United 

States Housing Act of 1937 (42 U.S.C. 

1401 et seq.) school district, special district, intrastate district, council of 

governments (whether or not incorporated as a nonprofit corporation 

under state law), any other regional or interstate government entity, or any 

agency or instrumentality of a local 

government. 

Obligations. The term obligations 

means the amounts of orders placed, 

contracts and subgrants awarded, 

goods and services received, and similar transactions during a given period 

that will require payment by the 

grantee during the same or a future period. 

714 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2541.30 

0MB. The term 0MB means the 

United States Office of Management 

and Budget. 

Outlays (expenditures). The term outlays (expenditures) means charges 

made to the project or program. They 

may be reported on a cash or accrual 

basis. For reports prepared on a cash 

basis, outlays are the sum of actual 

cash disbursement for direct charges 

for goods and services, the amount of 

indirect expense incurred, the value of 

in-kind contributions applied, and the 

amount of cash advances and payments 

made to contractors and subgrantees. 

For reports prepared on an accrued ex­ penditure basis, outlays are the sum of 

actual cash disbursements, the amount 

of indirect expense incurred, the value 

of in-kind contributions applied, and 

the new increase ( or decrease) in the 

amounts owed by the grantee for goods 

and other property received, for serv­ ices performed by employees, contractors, subgrantees, subcontractors, and 

other payees, and other amounts becoming owed under programs for which no current services or performance are required, such as annuities, insurance 

claims, and other benefit payments. 

Percentage of completion method. The 

term percentage of completion method re­ fers to a system under which payments are made for construction work according to the percentage of completion of 

the work, rather than to the grantee's 

cost incurred. 

Prior approval. The term prior approval means documentation evidencing consent prior to incurring specific 

cost. 

Real property. The term real property 

means land, including land improvements, structures and appurtenances 

thereto, excluding movable machinery 

and equipment. 

Share. The term share, when referring 

to the awarding agency's portion of 

real property, equipment or supplies, means the same percentage as the 

awarding agency's portion of the ac­ quiring party's total costs under the 

grant to which the acquisition costs 

under the grant to which the acquisition cost of the property was charged. 

Only costs are to be counted-not the 

value of third-party in-kind contributions. 

State. The term State means any of 

the several States of the United States, 

the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, or any 

agency or instrumentality of a State 

exclusive of local governments. The 

term does not include any public and 

Indian housing agency under the 

United States Housing Act of 1937. 

Subgrant. The term subgrant means an award of financial assistance in the 

form of money, or property in lieu of 

money, made under a grant by a grant­ ee to an eligible subgrantee. The term 

includes financial assistance when provided by contractual legal agreement, 

but does not include procurement purchases, nor does it include any form of 

assistance which is excluded from the 

definition of "grant" in this part. 

Subgrantee. The term subgrantee 

means the government or other legal 

entity to which a subgrant is awarded 

and which is accountable to the grant­ ee for the use of the funds provided. 

Supplies. The term supplies means all 

tangible personal property other than 

"equipment" as defined in this part. 

Suspension. The term suspension 

means, depending on the context, either- (1) Temporary withdrawal of the au­ thority to obligate grant funds pending 

corrective action by the grantee or subgrantee or a decision to terminate 

the grant; or (2) An action taken by a suspending 

official in accordance with agency regulations implementing E.O. 12549 (3 

CFR, 1986 Comp., p. 189) to immediately 

exclude a person from participating in 

grant transactions for a period, pending completion of an investigation and 

such legal or debarment proceedings as may ensue. Termination. The term termination 

means permanent withdrawal of the 

authority to obligate previouslyawarded grant funds before that au­ thority would otherwise expire. It also means the voluntary relinquishment of 

that authority by the grantee or subgrantee. Termination does not include--- (1) Withdrawal of funds awarded on the basis of the grantee's underestimate of the unobligated balance in a prior period; 

715 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2541.40 

(2) Withdrawal of the unobligated 

balance as of the expiration of a grant; 

(3) Refusal to extend a grant or award additional funds, to make a com­ peting or noncompeting continuation, 

renewal, extension, or supplemental 

award; or (4) Voiding of a grant upon determination that the award was obtained 

fraudulently, or was otherwise illegal or invalid from inception. 

Terms of a grant or subgrant mean all 

requirements of the grant or subgrant, 

whether in statute, regulations, or the 

award document. 

Third party in-kind contributions. The 

term third party in-kind contributions 

means property or services which benefit a federally assisted project or program and which are contributed by 

non-Federal third parties without 

charge to the grantee, or a cost-type 

contractor under the grant agreement. 

Unliquidated obligations for reports prepared on a cash basis. The term unliquidated obligations for reports prepared on 

a cash basis means the amount of obligations incurred by the grantee that 

has not been paid. For reports prepared on an accrued expenditure basis, they 

represent the amount of obligations incurred by the grantee for which an outlay has not been recorded. 

Unobligated balance. The term unobligated balance means the portion of the 

funds authorized by the Federal agency 

that has not been obligated by the 

grantee and is determined by deducting 

the cumulative obligations from the 

cumulative funds authorized. 

[59 FR 41598, Aug. 12, 1994, as amended at 72 

FR 28826, May 23, 2007] 

§ 2541.40 Applicability. 

(a) General. Subparts A through D of 

this part apply to all grants and subgrants to governments, except where 

inconsistent with Federal statutes or with regulations authorized in accordance with the exception provision of 

§ 2541.60, or: (1) Grants and subgrants to State and 

local institutions of higher education 

or State and local hospitals. 

(2) The block grants authorized by 

the Omnibus Budget Reconciliation 

Act of 1981 (Pub. L. 97-35, 95 Stat. 357) 

(Community Services; Preventive 

Health and Health Services; Alcohol, 

45 CFR Ch. XXV (10-1-12 Edition) 

Drug Abuse, and Mental Health Services; Maternal and Child Health Services; Social Services; Low-Income 

Home Energy Assistance; States' Program of Community Development 

Block Grants for Small Cities; and Elementary and Secondary Education 

other than programs administered by 

the Secretary of Education under title 

V, subtitle D, chapter 2, section 583-­

the Secretary's discretionary grant 

program) and titles I-III of the Job 

Training Partnership Act of 1982 (29 

U.S.C. 1501 et seq.) and under the Public Health Services Act (42 U.S.C. 201 et 

seq.), Alcohol and Drug Abuse Treatment and Rehabilitation Block Grant 

and part C of title V, Mental Health 

Service for the Homeless Block Grant). 

(3) Entitlement grants to carry out 

the following programs of the Social 

Security Act (42 U.S.C. 301 et seq.): 

(i) Aid to Needy Families with Dependent Children (title IV-A of the Act, 

not including the Work Incentive Program (WIN) authorized by section 

402(a)19(G); HHS grants for WIN are 

subject to this part); 

(ii) Child Support Enforcement and 

Establishment of Paternity (title IV-D 

of the Act); 

(iii) Foster Care and Adoption Assistance (title IV-E of the Act); 

(iv) Aid to the Aged, Blind, and Disabled (titles I, X, XIV, and XVI-AABD 

of the Act); and 

(v) Medical Assistance (Medicaid) 

(title XIX of the Act) not including the 

State Medicaid Fraud Control program 

authorized by section 1903(a)(6)(B). 

(4) Entitlement grants under the following programs of The National 

School Lunch Act (42 U.S.C. 1751 et 

seq.): 

(i) School Lunch (section 4 of the 

Act); 

(ii) Commodity Assistance (section 6 

of the Act); 

(iii) Special Meal Assistance (section 

11 of the Act); 

(iv) Summer Food Service for Children (section 13 of the Act); and 

(v) Child Care Food Program (section 

17 of the Act). 

(5) Entitlement grants under the following programs of The Child Nutrition Act of 1966: 

(i) Special Milk (section 3 of the Act); 

and 

716 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2541.100 

(ii) School Breakfast (section 4 of the 

Act). 

(6) Entitlement grants for State Administrative expenses under The Food 

Stamp Act of 1977 (7 U.S.C. 2011 et seq.). 

(7) A grant for an experimental, pilot, 

or demonstration project that is also 

supported by a grant listed in paragraph (a)(3) of this section. 

(8) Grant funds awarded under subsection 412(e) of the Immigration and 

Nationality Act (8 U.S.C. 1522(e)) and 

subsection 50l(a) of the Refugee Education Assistance Act of 1980 (Pub. L. 

96-422, 94 Stat. 1809), for cash assistance, medical assistance, and supplemental security income benefits to refugees and entrants and the administrative costs of providing the assistance 

and benefits. 

(9) Grants to local education agencies 

under 20 U.S.C. 236 through 241-l(a), 

and 242 through 244 (portions of the Impact Aid program), except for 20 U.S.C. 

238(d)(2)(c) and 240(f) (Entitlement Increase for Handicapped Children). 

(10) Payments under the Veterans 

Administration's State Home Per Diem 

Program (38 U.S.C. 641(a)). 

(b) Entitlement programs. Entitlement 

programs enumerated in §2541.40(a) (3) 

through (8) are subject to subpart E of 

this part. 

§ 2541.50 Effect on other issuances. 

All other grants administration provisions of codified program regulations, program manuals, handbooks 

and other nonregulatory materials 

which are inconsistent with this part are superseded, except to the extent 

they are required by statute, or au­ thorized in accordance with the exception provision in §2541.60. 

§ 2541.60 Additions and exceptions. 

(a) For classes of grants and grantees 

subject to this part, Federal agencies 

may not impose additional administrative requirements except in codified 

regulations published in the FEDERAL 

REGISTER. 

(b) Exceptions for classes of grants or grantees may be authorized only by 

0MB. 

(c) Exceptions on a case-by-case basis 

and for subgrantees may be authorized 

by the affected Federal agencies. 

Subpart B-Pre-Award 

Requirements 

§ 2541.100 Forms for applying for 

grants. 

(a) Scope. (1) This section prescribes 

forms and instructions to be used by 

governmental organizations (except 

hospitals and institutions of higher 

education operated by a government) 

in applying for grants. This section is 

not applicable, however, to formula 

grant programs which do not require 

applicants to apply for funds on a 

project basis. 

(2) This section applies only to applications to Federal agencies for grants, 

and is not required to be applied by 

grantees in dealing with applicants for 

subgrants. However, grantees are en­ couraged to avoid more detailed or burdensome application requirements for 

subgrants. 

(b) Authorized forms and instructions 

for governmental organizations. (1) In applying for grants, applicants shall only 

use standard application forms or those 

prescribed by the granting agency with 

the approval of 0MB under the Paperwork Reduction Act of 1980 (44 U.S.C. 

3501 et seq.). 

(2) Applicants are not required to 

submit more than the original and two 

copies of preapplications or applications. 

(3) Applicants must follow all applicable instructions that bear 0MB 

clearance numbers. Federal agencies 

may specify and describe the programs, 

functions, or activities that will be 

used to plan, budget, and evaluate the 

work under a grant. Other supplementary instructions may be issued 

only with the approval of 0MB to the 

extent required under the Paperwork 

Reduction Act of 1980. For any standard form, except the SF--424 facesheet, 

Federal agencies may shade out or instruct the applicant to disregard any 

line item that is not needed. 

(4) When a grantee applies for additional funding (such as a continuation 

or supplemental award) or amends a previously submitted application, only 

the affected pages need be submitted. 

Previously submitted pages with information that is still current need not be 

resubmitted. 

717 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2541.110 

§2541.110 State plans. 

(a) Scope. The statutes for some programs require States to submit plans 

before receiving grants. Under regulations implementing Executive Order 

12372 (3 CFR, 1982 Comp., p. 197), 

"Intergovernmental Review of Federal 

Programs," States are allowed to simplify, consolidate and substitute plans. 

This section contains additional provisions for plans that are subject to regulations implementing the Executive 

order. 

(b) Requirements. A State need meet 

only Federal administrative or programmatic requirements for a plan 

that are in statutes or codified regulations. 

(c) Assurances. In each plan the State 

will include an assurance that the 

State shall comply with all applicable 

Federal statutes and regulations in effect with respect to the periods for 

which it receives grant funding. For 

this assurance and other assurances re­ quired in the plan, the State may: 

(1) Cite by number the statutory or regulatory provisions requiring the as­ surances and affirm that it gives the assurances required by those provisions; 

(2) Repeat the assurance language in 

the statutes or regulations; or 

(3) Develop its own language to the 

extent permitted by law. 

(d) Amendments. A State will amend a plan whenever necessary to reflect: 

New or revised Federal statutes or regulations; or a material change in any 

State law, organization, policy, or State agency operation. The State will 

obtain approval for the amendment and 

its effective date but need submit for 

approval only the amended portions of 

the plan. 

§ 2541.120 Special grant or subgrant 

conditions for "high-risk" grantees. 

(a) A grantee or subgrantee may be 

considered "high risk" if an awarding 

agency determines that a grantee or subgrantee: 

(1) Has a history of unsatisfactory 

performance; or 

(2) Is not financially stable; or 

(3) Has a management system which 

does not meet the management standards set forth in this part; or 

45 CFR Ch. XXV (10-1-12 Edition) 

(4) Has not conformed to terms and 

conditions of previous awards; or (5) Is otherwise not responsible; and 

if the awarding agency determines that an award will be made, special conditions and/or restrictions shall cor­ respond to the high risk condition and 

shall be included in the award. 

(b) Special conditions or restrictions 

may include: 

(1) Payment on a reimbursement 

basis; 

(2) Withholding authority to proceed 

to the next phase until receipt of evidence of acceptable performance within a given funding period; 

(3) Requiring additional, more detailed financial reports; 

(4) Additional project monitoring; 

(5) Requiring the grantee or subgrantee to obtain technical or management assistance; or (6) Establishing additional prior approvals. 

(c) If an awarding agency decides to 

impose such conditions, the awarding 

official will notify the grantee or subgrantee as early as possible, in writing, 

of: 

(1) The nature of the special conditions/restrictions; 

(2) The reason(s) for imposing them; 

(3) The corrective actions which must 

be taken before they will be removed 

and the time allowed for completing 

the corrective actions; and 

(4) The method of requesting recon­ sideration of the conditions/restrictions imposed. 

Subpart C-Post-Award 

Requirements 

§ 2541.200 Standards for financial 

management systems. 

(a) A State must expand and account 

for grant funds in accordance with 

State laws and procedures for expending and accounting for its own funds. 

Fiscal control and accounting procedures of the State, as well as its subgrantees and cost-type contractors, 

must be sufficient to--- (1) Permit preparation of reports re­ quired by this part and the statutes au­ thorizing the grant; and 

(2) Fermi t the tracing of funds to a level of expenditures adequate to es­ tablish that such funds have not been 

718 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2541.210 

used in violation of the restrictions 

and prohibitions of applicable statutes. 

(b) The financial management systems of other grantees and subgrantees 

must meet the following standards: 

(1) Financial reporting. Accurate, cur­ rent, and complete disclosure of the financial results of financially assisted 

activities must be made in accordance 

with the financial reporting requirements of the grant or subgrant. 

(2) Accounting records. Grantees and 

subgrantees must maintain records 

which adequately identify the source and application of funds provided for financially-assisted activities. These 

records must contain information pertaining to grant or subgrant awards 

and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures, and income. 

(3) Internal control. Effective control 

and accountability must be maintained 

for all grant and subgrant cash, real 

and personal property, and other as­ sets. Grantees and subgrantees must 

adequately safeguard all such property 

and must assure that it is used solely 

for authorized purposes. 

(4) Budget control. Actual expenditures or outlays must be compared 

with budgeted amounts for each grant or subgrant. Financial information 

must be related to performance or productivity data, including the development of unit cost information when­ ever appropriate or specifically re­ quired in the grant or subgrant agreement. If unit cost data are required, es­ timates based on available documentation will be accepted whenever possible. 

(5) Allowable cost. Applicable 0MB 

cost principles, agency program regulations, and the terms of grant and 

subgrant agreements will be followed 

in determining the reasonableness, allowability, and allocability of costs. 

(6) Source documentation. Accounting 

records must be supported by such source documentation as canceled 

checks, paid bills, payrolls, time and 

attendance records, contract and 

subgrant award documents, etc. 

(7) Cash management. Procedures for 

minimizing the time elapsing between 

the transfer of funds from the U.S. 

Treasury and disbursement by grantees 

and subgrantees must be followed 

whenever advance payment procedures are used. Grantees must establish rea­ sonable procedures to ensure the re­ ceipt of reports on subgrantees' cash 

balances and cash disbursements in 

sufficient time to enable them to prepare complete and accurate cash transactions reports to the awarding agency. When advances are made by letterof-credit or electronic transfer of funds 

methods, the grantee must make 

drawdowns as close as possible to the 

time of making disbursements. Grant­ ees must monitor cash drawdowns by 

their subgrantees to assure that they 

conform substantially to the same standards of timing and amount as apply to advances to the grantees. 

(c) An awarding agency may review 

the adequacy of the financial management system of any applicant for financial assistance as part of a preaward review or at any time subsequent to award. 

§ 2541.210 Payment. 

(a) Scope. This section prescribes the 

basic standard and the methods under 

which a Federal agency will make payments to grantees, and grantees will 

make payments to subgrantees and 

contractors. 

(b) Basic standard. Methods and procedures for payment shall minimize 

the time elapsing between the transfer 

of funds and disbursement by the 

grantee or subgrantee, in accordance 

with Treasury regulations at 31 CFR 

part 205. 

(c) Advances. Grantees and subgrantees shall be paid in advance, provided they maintain or demonstrate 

the willingness and ability to maintain 

procedures to minimize the time elapsing between the transfer of the funds 

and their disbursement by the grantee or subgrantee. 

(d) Reimbursement. Reimbursement 

shall be the preferred method when the 

requirements in paragraph (c) of this 

section are not met. Grantees and subgrantees may also be paid by reimbursement for any construction grant. 

Except as otherwise specified in regulation, Federal agencies shall not use the 

percentage of completion method to 

pay construction grants. The grantee or subgrantee may use that method to 

pay its construction contractor, and if 

719 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2541.220 

it does, the awarding agency's payments to the grantee or subgrantee 

will be based on the grantee's or subgrantee's actual rate of disbursement. 

(e) Working capital advances. If a 

grantee cannot meet the criteria for 

advance payments described in paragraph (c) of this section, and the Federal agency has determined that reimbursement is not feasible because the 

grantee lacks sufficient working capital, the awarding agency may provide 

cash on a working capital advance 

basis. Under this procedure the awarding agency shall advance cash to the 

grantee to cover its estimated disbursement needs for an initial period 

generally geared to the grantee's disbursing cycle. Thereafter, the awarding 

agency shall reimburse the grantee for 

its actual cash disbursements. The 

working capital advance method of 

payment shall not be used by grantees or subgrantees if the reason for using 

such method is the unwillingness or inability of the grantee to provide timely 

advances to the subgrantee to meet the 

subgrantee's actual cash disbursements. 

(f) Effect of program income, refunds, 

and audit recoveries on payment. (1) 

Grantees and subgrantees shall disburse repayments to and interest 

earned on a revolving fund before re­ questing additional cash payments for 

the same activity. 

(2) Except as provided in paragraph 

(f)(l) of this section, grantees and subgrantees shall disburse program income, rebates, refunds, contract settlements, audit recoveries and interest 

earned on such funds before requesting 

additional cash payments. 

(g) Withholding payments. (1) Unless 

otherwise required by Federal statute, 

awarding agencies shall not withhold 

payments for proper charges incurred 

by grantees or subgrantees unless--

(i) The grantee or subgrantee has 

failed to comply with grant award con­ ditions; or 

(ii) The grantee or subgrantee is indebted to the United States. 

(2) Cash withheld for failure to com­ ply with grant award condition, but 

without suspension of the grant, shall 

be released to the grantee upon subsequent compliance. When a grant is sus45 CFR Ch. XXV (10-1-12 Edition) 

pended, payment adjustments will be 

made in accordance with §2541.410(0). 

(3) A Federal agency shall not make 

payment to grantees for amounts that are withheld by grantees or subgrantees from payment to contractors 

to assure satisfactory completion of 

work. Payments shall be made by the 

Federal agency when the grantees or subgrantees actually disburse the withheld funds to the contractors or to es­ crow accounts established to assure satisfactory completion of work. 

(h) Cash depositories. (1) Consistent 

with the national goal of expanding the 

opportunities for minority business en­ terprises, grantees and subgrantees are encouraged to use minority banks (a 

bank which is owned at least 50 percent 

by minority group members). A list of 

minority owned banks can be obtained 

from the Minority Business Development Agency, Department of Commerce, Washington, DC 20230. 

(2) A grantee or subgrantee shall 

maintain a separate bank account only 

when required by Federal-State agreement. 

(i) Interest earned on advances. Except 

for interest earned on advances of 

funds exempt under the Intergovernmental Cooperation Act (31 U.S.C. 6501 

et seq.) and the Indian Self-Determination Act (23 U.S.C. 450), grantees and 

subgrantees shall promptly, but at 

least quarterly, remit interest earned on advances to the Federal agency. The 

grantee or subgrantee may keep interest amounts up to $100 per year for administrative expenses. 

§ 2541.220 Allowable costs. 

(a) Limitation on use of funds. Grant 

funds may be used only for- (1) The allowable costs of the grantees, subgrantees and cost-type contractors, including allowable costs in the 

form of payments to fixed-price con­ tractors; and 

(2) Reasonable fees or profit to costtype contractors but not any fee or profit (or other increment above allowable costs) to the grantee or subgrantee. 

(b) Applicable cost principles. For each 

kind of organization, there is a set of 

Federal principles for determining allowable costs. Allowable costs will be 

determined in accordance with the cost 

720 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2541.240 

principles applicable to the organization incurring the costs. The following 

chart lists the kinds of organizations 

and the applicable cost principles: 

For the costs of a Use the principles inState, local or Indian tribal 0MB Circular Ar87. 

government 

Private nonprofit organization 0MB Circular Ar122. 

other than an (1) institution 

of higher education, (2) 

hospital, or (3) organization 

named in 0MB Circular Ar 

122 as not subject to that 

circular 

Educational institutions 0MB Circular Ar21. 

For-profit organization other 48 CFR Part 31. Contract 

than a hospital and an or­ Cost Principles and Proceganization named in 0MB dures, or uniform cost aoCircular Ar122 as not sub­ counting standards that 

ject to that circular comply with cost principles 

acceptable to the Federal 

agency. 

§ 2541.230 Period of availability of 

funds. 

(a) General. Where a funding period is 

specified, a grantee may charge to the 

award only costs resulting from obligations of the funding period unless car­ ryover of unobligated balances is permitted, in which case the carryover 

balances may be charged for costs re­ sulting from obligations of the subsequent funding period. 

(b) Liquidation of obligations. A grant­ ee must liquidate all obligations incurred under the award not later than 

90 days after the end of the funding period (or as specified in a program regulation) to coincide with the submission 

of the annual Financial Status Report 

(SF-269). The Federal agency may ex­ tend this deadline at the request of the 

grantee. 

§ 2541.240 Matching or cost sharing. 

(a) Basic rule; costs and contributions 

acceptable. With the qualifications and 

exceptions listed in paragraph (b) of 

this section, a matching or cost sharing requirement may be satisfied by either or both of the following: 

(1) Allowable costs incurred by the 

grantee, subgrantee or a cost-type con­ tractor under the assistance agreement. This includes allowable costs 

borne by non-Federal grants or by 

other cash donations from non-Federal 

third parties. 

(2) The value of third party in-kind 

contributions applicable to the period 

to which the cost sharing or matching 

requirements applies. 

(b) Qualifications and exceptions-(!) 

Costs borne by other Federal grant agreements. Except as provided by Federal 

statute, a cost sharing or matching re­ quirement may not be met by costs 

borne by another Federal grant. This 

prohibition does not apply to income 

earned by a grantee or subgrantee from a contract awarded under another Federal grant. 

(2) General revenue sharing. For the 

purpose of this section, general revenue sharing funds distributed under 31 

U.S.C. 6702 are not considered Federal 

grant funds. 

(3) Cost or contributions counted towards other Federal costs-sharing requirements. Neither costs nor the values of 

third party in-kind contributions may 

count towards satisfying a cost sharing or matching requirement of a grant 

agreement if they have been or will be 

counted towards satisfying a cost sharing or matching requirement of an­ other Federal grant agreement, a Federal procurement contract, or any 

other award of Federal funds. 

(4) Costs financed by program income. 

Costs financed by program income, as defined in § 2541.250, shall not count towards satisfying a cost sharing or matching requirement unless they are expressly permitted in the terms of the 

assistance agreement. (This use of general program income is described in 

§ 2541. 250(g).) 

(5) Services or property financed by income earned by contractors. Contractors 

under a grant may earn income from 

the activities carried out under the 

contract in addition to the amounts 

earned from the party awarding the 

contract. No costs of services or property supported by this income may 

count toward satisfying a cost sharing or matching requirement unless other 

provisions of the grant agreement ex­ pressly permit this kind of income to 

be used to meet the requirement. 

(6) Records. Costs and third party inkind contributions counting towards 

satisfying a cost sharing or matching 

requirement must be verifiable from 

the records of grantees and subgrantee or cost-type contractors. These records 

must show how the value placed on third party in-kind contributions was 

721 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2541.240 

derived. To the extent feasible, volunteer services will be supported by the same methods that the organization uses to support the allocability of regular personnel costs. 

(7) Special standards for third party inkind contributions. (i) Third party inkind contributions count towards satisfying a cost sharing or matching re­ quirement only where, if the party re­ ceiving the contributions were to pay 

for them, the payments would be allowable costs. 

(ii) Some third party in-kind con­ tributions are goods and services that, 

if the grantee, subgrantee, or con­ tractor receiving the contribution had 

to pay for them, the payments would 

have been an indirect costs. Costs sharing or matching credit for such con­ tributions shall be given only if the 

grantee, subgrantee, or contractor has 

established, along with its regular indirect cost rate, a special rate for allocating to individual projects or programs the value of the contributions. 

(iii) A third party in-kind contribution to a fixed-price contract may 

count towards satisfying a cost sharing or matching requirement only if it re­ sults in: 

(A) An increase in the services or property provided under the contract 

(without additional cost to the grantee or subgrantee); or 

(B) A cost savings to the grantee or subgrantee. 

(iv) The values placed on third party 

in-kind contributions for cost sharing or matching purposes will conform to 

the rules in the succeeding sections of 

this part. If a third party in-kind con­ tribution is a type not treated in those 

sections, the value placed upon it shall 

be fair and reasonable. 

(c) Valuation of donated services-(!) 

Volunteer services. Unpaid services provided to a grantee or subgrantee by individuals will be valued at rates con­ sistent with those ordinarily paid for 

similar work in the grantee's or subgrantee's organization. If the grantee or subgrantee does not have employees 

performing similar work, the rates will 

be consistent with those ordinarily 

paid by other employers for similar 

work in the same labor market. In either case, a reasonable amount for 

45 CFR Ch. XXV (10-1-12 Edition) 

fringe benefits may be included in the 

valuation. 

(2) Employees of other organizations. 

When an employer other than a grantee, subgrantee, or cost-type contractor 

furnishes free of charge the services of an employee in the employee's normal 

line of work, the services will be valued 

at the employee's regular rate of pay 

exclusive of the employee's fringe benefits and overhead costs. If the services are in a different line of work, paragraph (c)(l) of this section applies. 

(d) Valuation of third party donated 

supplies and loaned equipment or space. 

(1) If a third party donates supplies, 

the contribution will be valued at the 

market value of the supplies at the 

time of donation. 

(2) If a third party donates the use of 

equipment or space in a building but 

retains title, the contribution will be 

valued at the fair rental rate of the 

equipment or space. 

(e) Valuation of third party donated 

equipment, buildings, and land. If a third 

party donates equipment, buildings, or land, and title passes to a grantee or subgrantee, the treatment of the donated property will depend upon the 

purpose of the grant or subgrant, as follows: 

(1) Awards for capital expenditures. If 

the purpose of the grant or subgrant is 

to assist the grantee or subgrantee in 

the acquisition of property, the market 

value of that property at the time of 

donation may be counted as cost sharing or matching. 

(2) Other awards. If assisting in the 

acquisition of property is not the purpose of the grant or subgrant, paragraphs (e)(2) (i) and (ii) of this section 

apply: 

(i) If approval is obtained from the 

awarding agency, the market value at 

the time of donation of the donated 

equipment or buildings and the fair 

rental rate of the donated land may be 

counted as cost sharing or matching. 

In the case of a subgrant, the terms of 

the grant agreement may require that 

the approval be obtained from the Federal agency as well as the grantee. In 

all cases, the approval may be given 

only if a purchase of the equipment or rental of the land would be approved as an allowable direct cost. If any part of 

the donated property was acquired 

722 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2541.250 

with Federal funds, only the non-federal share of the property may be 

counted as cost-sharing or matching. 

(ii) If approval is not obtained under 

paragraph (e)(2)(i) of this section, no amount may be counted for donated 

land, and only depreciation or use allowances may be counted for donated 

equipment and buildings. The depreciation or use allowances for this property are not treated as third party in-kind 

contributions. Instead, they are treated as costs incurred by the grantee or subgrantee. They are computed and allocated (usually as indirect costs) in 

accordance with the cost principles 

specified in § 2541.220, in the same way as depreciation or use allowances for 

purchased equipment and buildings. 

The amount of depreciation or use allowances for donated equipment and 

buildings is based on the property's 

market value at the time it was donated. 

(f) Valuation of grantee or subgrantee 

donated real property for construction/acquisition. If a grantee or subgrantee donates real property for a construction or facilities acquisition project, the 

current market value of that property 

may be counted as cost sharing or matching. If any part of the donated 

property was acquired with Federal 

funds, only the non-federal share of the 

property may be counted as cost sharing or matching. 

(g) Appraisal of real property. In some cases under paragraphs (d), (e) and (f) 

of this section, it will be necessary to 

establish the market value of land or a building or the fair rental rate of land or of space in a building. In these cases, 

the Federal agency may require the 

market value or fair rental value be set 

by an independent appraiser, and that 

the value or rate be certified by the 

grantee. This requirement will also be 

imposed by the grantee on subgrantees. 

§ 2541.250 Program income. 

(a) General. Grantees are encouraged 

to earn income to defray program 

costs. Program income includes income 

from fees for services performed, from 

the use or rental of real or personal 

property acquired with grant funds, 

from the sale of commodities or items 

fabricated under a grant agreement, 

and from payments of principal and interest on loans made with grant funds. 

Except as otherwise provided in regulations of the Federal agency, program 

income does not include interest on grant funds, rebates, credits, discounts, 

refunds, etc. and interest earned on any of them. 

(b) Definition of program income. Program income means gross income re­ ceived by the grantee or subgrantee directly generated by a grant supported 

activity, or earned only as a result of 

the grant agreement during the grant 

period. "During the grant period" is 

the time between the effective date of 

the award and the ending date of the 

award reflected in the final financial 

report. 

(c) Cost of generating program income. 

If authorized by Federal regulations or the grant agreement, costs incident to 

the generation of program income may 

be deducted from gross income to determine program income. 

(d) Governmental revenues. Taxes, special assessments, levies, fines, and 

other such revenues raised by a grantee or subgrantee are not program income 

unless the revenues are specifically 

identified in the grant agreement or Federal agency regulations as program 

income. 

(e) Royalties. Income from royalties 

and license fees for copyrighted material, patents, and inventions developed 

by a grantee or subgrantee is program 

income only if the revenues are specifically identified in the grant agreement or Federal agency regulations as program income. (See § 2541.340) 

(f) Property. Proceeds from the sale of 

real property or equipment will be handled in accordance with the requirements of§§ 2541.310 and 2541.320. 

(g) Use of program income. Program 

income shall be deducted from outlays 

which may be both Federal and non­ Federal as described in paragraphs 

(g)(l) and (2) of this section, unless the 

Federal agency regulations or the 

grant agreement specify another alternative (or a combination of the alternatives). In specifying alternatives, the 

Federal agency may distinguish between income earned by the grantee 

and income earned by subgrantees and 

between the sources, kinds, or amounts 

of income. When Federal agencies au­ thorize the alternatives in paragraphs 

723 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2541.260 

(g) (2) and (3) of this section, program 

income in excess of any limits stipulated shall also be deducted from outlays. 

(1) Deduction. Ordinarily program income shall be deducted from total allowable costs to determine the net allowable costs. Program income shall be 

used for current costs unless the Federal agency authorizes otherwise. Program income which the grantee did not 

anticipate at the time of the award 

shall be used to reduce the Federal 

agency and grantee contributions rath­ er than to increase the funds com­ mitted to the project. 

(2) Addition. When authorized, program income may be added to the 

funds committed to the grant agreement by the Federal agency and the 

grantee. The program income shall be 

used for the purposes and under the 

conditions of the grant agreement. 

(3) Cost sharing or matching. When au­ thorized, program income may be used 

to meet the cost sharing or matching 

requirement of the grant agreement. 

The amount of the Federal grant award 

remains the same. 

(h) Income after the award period. 

There are no Federal requirements governing the disposition of program in­ come earned after the end of the award 

period (i.e., until the ending date of the 

final financial report, see paragraph (a) 

of this section), unless the terms of the 

agreement or the Federal agency regulations provide otherwise. 

§ 2541.260 Non-Federal audit. 

(a) Basic rule. Grantees and subgrantees are responsible for obtaining 

audits in accordance with the Single 

Audit Act Amendments of 1996 (31 

U.S.C. 7501-7507) and revised 0MB Circular A-133, "Audits of States, Local 

Governments, and Non-Profit Organizations." The audits shall be made by an independent auditor in accordance 

with generally accepted government 

auditing standards covering financial 

audits. 

(b) Subgrantees. State or local governments, as those terms are defined for 

purposes of the Single Audit Act 

Amendments of 1996, that provide Federal awards to a subgrantee, which ex­ pends $300,000 or more (or other 

45 CFR Ch. XXV (10-1-12 Edition) 

amount as specified by 0MB) in Federal awards in a fiscal year, shall: 

(1) Determine whether State or local 

subgrantees have met the audit re­ quirements of the Act and whether subgrantees covered by 0MB Circular A- 110, "Uniform Administrative Requirements for Grants and Agreements with 

Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations," have met the audit requirements of the Act. Commercial contractors (private for-profit and private and 

governmental organizations) providing 

goods and services to State and local 

governments are not required to have a single audit performed. State and local 

governments should use their own procedures to ensure that the contractor 

has complied with laws and regulations 

affecting the expenditure of Federal 

funds; 

(2) Determine whether the subgrantee spent Federal assistance funds 

provided in accordance with applicable 

laws and regulations. This may be ac­ complished by reviewing an audit of 

the subgrantee made in accordance 

with the Act, Circular A-110, or through other means (e.g., program re­ views) if the subgrantee has not had 

such an audit; 

(3) Ensure that appropriate correc­ tive action is taken within six months 

after receipt of the audit report in instance of noncompliance with Federal 

laws and regulations; 

(4) Consider whether subgrantee au­ dits necessitate adjustment of the 

grantee's own records; and 

(5) Require each subgrantee to permit 

independent auditors to have access to 

the records and financial statements. 

(c) Auditor selection. In arranging for 

audit services, §2541.360 shall be followed. 

[59 FR 41598, Aug. 12, 1994, as amended at 62 

FR 45939, 45947, Aug. 29, 1997] 

Subpart D-Changes, Property 

and Subawards 

§ 2541.300 Changes. 

(a) General. Grantees and subgrantees are permitted to re budget within the 

approved direct cost budget to meet 

unanticipated requirements and may 

make limited program changes to the 

724 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2541.310 

approved project. However, unless 

waived by the awarding agency, certain 

types of post-award changes in budgets 

and projects shall require the prior 

written approval of the awarding agency. 

(b) Relation to cost principles. The applicable cost principles (see § 2541.220) 

contain requirements for prior approval of certain types of costs. Except 

where waived, those requirements 

apply to all grants and subgrants even if paragraphs (c) through (f) of this section do not. 

(c) Budget changes-(!) Nonconstruction projects. Except as stated in other 

regulations or an award document, 

grantees or subgrantees shall obtain 

the prior approval of the awarding 

agency whenever any of the following 

changes is anticipated under a non­ construction award: 

(i) Any revision which would result 

in the need for additional funding. 

(ii) Unless waived by the awarding 

agency, cumulative transfers among direct cost categories, or, if applicable, 

among separately budgeted programs, 

projects, functions, or activities which 

exceed or are expected to exceed ten 

percent of the current total approved 

budget, whenever the awarding agency's share exceeds $100,000. 

(iii) Transfer of funds allotted for 

training allowances (i.e., from direct 

payments to trainees to other expense 

categories). 

(2) Construction projects. Grantees and 

subgrantees shall obtain prior written 

approval for any budget revision which 

would result in the need for additional 

funds. 

(3) Combined construction and nonconstruction projects. When a grant or subgrant provides funding for both con­ struction and nonconstruction activities, the grantee or subgrantee must 

obtain prior written approval from the 

awarding agency before making any 

fund or budget transfer from non­ construction to construction or vice versa. 

(d) Programmatic changes. Grantees or subgrantees must obtain the prior approval of the awarding agency when­ ever any of the following actions is an­ ticipated: 

(1) Any revision of the scope or objectives of the project (regardless of 

whether there is an associated budget 

revision requiring prior approval). 

(2) Need to extend the period of availability offunds. 

(3) Changes in key persons in cases where specified in an application or a grant award. In research projects, a change in the project director or principal investigator shall always require 

approval unless waived by the awarding agency. 

(4) Under nonconstruction projects, 

contracting out, subgranting (if au­ thorized by law) or otherwise obtaining 

the services of a third party to perform 

activities which are central to the purposes of the award. This approval re­ quirement is in addition to the approval requirements of §2541.360 but 

does not apply to the procurement of 

equipment, supplies, and general support services. 

( e) Additional prior approval requirements. The awarding agency may not 

require prior approval for any budget 

revision which is not described in paragraph (c) of this section. 

(f) Requesting prior approval. (1) A re­ quest for prior approval of any budget 

revision will be in the same budget formal the grantee used in its application 

and shall be accompanied by a nar­ rative justification for the proposed re­ vision. 

(2) A request for a prior approval 

under the applicable Federal cost principles (see § 2541.220) may be made by 

letter. 

(3) A request by a subgrantee for 

prior approval will be addressed in 

writing to the grantee. The grantee 

will promptly review such request and 

shall approve or disapprove the request 

in writing. A grantee will not approve 

any budget or project revision which is 

inconsistent with the purpose or terms 

and conditions of the Federal grant to 

the grantee. If the revision, requested 

by the subgrantee would result in a change to the grantee's approved 

project which requires Federal prior 

approval, the grantee will obtain the 

Federal agency's approval before approving the subgrantee's request. 

§2541.310 Real property. 

(a) Title. Subject to the obligations 

and conditions set forth in this section, 

title to real property acquired under a 

725 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2541.320 

grant or subgrant will vest upon acquisition in the grantee or subgrantee re­ spectively. 

(b) Use. Except as otherwise provided 

by Federal statutes, real property will 

be used for the originally authorized 

purposes as long as needed for that purposes, and the grantee or subgrantee 

shall not dispose of or encumber its 

title or other interests. 

( c) Disposition. When real property is no longer needed for the originally au­ thorized purpose, the grantee or subgrantee will request disposition instructions from the awarding agency. 

The instructions will provide for one of 

the following alternatives: 

(1) Retention of title. Retain title after 

compensating the awarding agency. 

The amount paid to the awarding agency will be computed by applying the 

awarding agency's percentage of participation in the cost of the original 

purchase to the fair market value of 

the property. However, in those situations where a grantee or subgrantee is 

disposing of real property acquired 

with grant funds and acquiring replacement real property under the same program, the net proceeds from the disposition may be used as an offset to the 

cost of the replacement property. 

(2) Sale of property. Sell the property 

and compensate the awarding agency. 

The amount due to the awarding agency will be calculated by applying the 

awarding agency's percentage of participation in the cost of the original 

purchase to the proceeds of the sale 

after deduction of any actual and rea­ sonable selling and fixing-up expenses. 

If the grant is still active, the net proceeds from sale may be offset against 

the original cost of the property. When a grantee or subgrantee is directed to 

sell property, sales procedures shall be 

followed that provide for competition 

to the extent practicable and result in 

the highest possible return. 

(3) Transfer of title. Transfer title to 

the awarding agency or to a thirdparty designated/approved by the 

awarding agency. The grantee or subgrantee shall be paid an amount calculated by applying the grantee or subgrantee's percentage of participation 

in the purchase of the real property to 

the current fair market value of the 

property. 

45 CFR Ch. XXV (10-1-12 Edition) 

§ 2541.320 Equipment. 

(a) Title. Subject to the obligations 

and conditions set forth in this section, 

title to equipment acquired under a grant or subgrant will vest upon acquisition in the grantee or subgrantee re­ spectively. 

(b) States. A State will use, manage, 

and dispose of equipment acquired 

under a grant by the State in accord­ ance with State laws and procedures. 

Other grantees and subgrantees will 

follow paragraphs (c) through (e) of 

this section. 

(c) Use. (1) Equipment shall be used 

by the grantee or subgrantee in the 

program or project for which it was ac­ quired as long as needed, whether or not the project or program continues 

to be supported by Federal funds. When no longer needed for the original program or project, the equipment may be 

used in other activities currently or previously supported by a Federal 

agency. 

(2) The grantee or subgrantee shall 

also make equipment available for use on other projects or programs cur­ rently or previously supported by the 

Federal Government, providing such use will not interfere with the work on the projects or program for which it was originally acquired. First pref­ erence for other use shall be given to 

other programs or projects supported 

by the awarding agency. User fees 

should be considered if appropriate. 

(3) Notwithstanding the encouragement in §2541.250(a) to earn program 

income, the grantee or subgrantee 

must not use equipment acquired with 

grant funds to provide services for a fee 

to compete unfairly with private com­ panies that provide equivalent services, 

unless specifically permitted or contemplated by Federal statute. 

(4) When acqu1rmg replacement 

equipment, the grantee or subgrantee 

may use the equipment to be replaced as a trade-in or sell the property and use the proceeds to offset the cost of 

the replacement property, subject to 

the approval of the awarding agency. 

(d) Management requirements. Procedures for managing equipment (including replacement equipment), whether 

acquired in whole or in part with grant 

funds, until disposition takes place 

726 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2541.330 

will, as a minimum, meet the following 

requirements: 

(1) Property records must be maintained that include a description of the 

property, a serial number or other 

identification number, the source of 

property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the 

cost of the property, the location, use 

and condition of the property, and any 

ultimate disposition data including the 

date of disposal and sale price of the 

property. 

(2) A physical inventory of the property must be taken and the results rec­ onciled with the property records at 

least once every two years. 

(3) A control system must be developed to ensure adequate safeguards to 

prevent loss, damage, or theft of the 

property. Any loss, damage, or theft 

shall be investigated. 

(4) Adequate maintenance procedures 

must be developed to keep the property 

in good condition. 

(5) If the grantee or subgrantee is au­ thorized or required to sell the property, proper sales procedures must be 

established to ensure the highest possible return. 

(e) Disposition. When original or replacement equipment acquired under a grant or subgrant is no longer needed 

for the original project or program or 

for other activities currently or previously supported by a Federal agency, 

disposition of the equipment will be 

made as follows: 

(1) Items of equipment with a current 

per-unit fair market value of less than 

$5,000 may be retained, sold or otherwise disposed of with no further obligation to the awarding agency. 

(2) Items of equipment with a current 

per unit fair market value in excess of 

$5,000 may be retained or sold and the 

awarding agency shall have a right to an amount calculated by multiplying 

the current market value or proceeds 

from sale by the awarding agency's 

share of the equipment. 

(3) In cases where a grantee or subgrantee fails to take appropriate disposition actions, the awarding agency 

may direct the grantee or subgrantee 

to take excess and disposition actions. 

(f) Federal equipment. In the event a 

grantee or subgrantee is provided federally-owned equipment: 

(1) Title will remain vested in the 

Federal Government. 

(2) Grantees or subgrantees will manage the equipment in accordance with 

Federal agency rules and procedures, 

and submit an annual inventory listing. 

(3) When the equipment is no longer 

needed, the grantee or subgrantee will 

request disposition instructions from 

the Federal agency. 

(g) Right to transfer title. The Federal 

awarding agency may reserve the right 

to transfer title to the Federal Government or a third part named by the 

awarding agency when such a third 

party is otherwise eligible under existing statutes. Such transfers shall be 

subject to the following standards: 

(1) The property shall be identified in 

the grant or otherwise made known to 

the grantee in writing. 

(2) The Federal awarding agency 

shall issue disposition instruction 

within 120 calendar days after the end 

of the Federal support of the project 

for which it was acquired. If the Federal awarding agency fails to issue disposition instructions within the 120 

calendar-day period the grantee shall 

follow paragraph (e) of this section. 

(3) When title to equipment is transferred, the grantee shall be paid an amount calculated by applying the percentage of participation in the purchase to the current fair market value 

of the property. 

§ 2541.330 Supplies. 

(a) Title. Title to supplies acquired 

under a grant or subgrant will vest, 

upon acquisition, in the grantee or subgrantee respectively. 

(b) Disposition. If there is a residual 

inventory of unused supplies exceeding 

$5,000 in total aggregate fair market 

value upon termination or completion 

of the award, and if the supplies are 

not needed for any other federally 

sponsored programs or projects, the 

grantee or subgrantee shall compensate the awarding agency for its 

share. 

727 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2541.340 

§ 2541.340 Copyrights. 

The Federal awarding agency re­ serves a royalty-free, non-exclusive, 

and irrevocable license to reproduce, 

publish or otherwise use, and to au­ thorize others to use, for Federal Government purposes: 

(a) The copyright in any work developed under a grant, subgrant, or con­ tract under a grant or subgrant; and 

(b) Any rights of copyright to which a grantee, subgrantee or a contractor 

purchases ownership with grant support. 

§ 2541.350 Subawards to debarred and 

suspended parties. 

Grantees and subgrantees must not 

make any award or permit any award 

(subgrant or contract) at any tier to 

any party which is debarred or sus­ pended or is otherwise excluded from or ineligible for participation in Federal 

assistance programs under Executive 

Order 12549, "Debarment and Suspension." 

§ 2541.360 Procurement. 

(a) States. When procuring property 

and services under a grant, a State will 

follow the same policies and procedures 

it uses for procurements from its non­ Federal funds. The State will ensure that every purchase order or other con­ tract includes any clauses required by 

Federal statutes and executive orders 

and their implementing regulations. 

Other grantees and subgrantees will 

follow paragraphs (b) through (i) of this 

section. 

(b) Procurement standards. (1) Grant­ ees and subgrantees will use their own procurement procedures which reflect 

applicable State and local laws and 

regulations, provided that the procurements conform to applicable Federal 

law and the standards identified in this 

section. 

(2) Grantees and subgrantees will 

maintain a contract administration 

system which ensures that contractors 

perform in accordance with the terms, 

conditions, and specifications of their 

contracts or purchase orders. 

(3) Grantees and subgrantees will 

maintain a written code of standards of 

conduct governing the performance of 

their employees engaged in the award 

and administration of contracts. No 

45 CFR Ch. XXV (10-1-12 Edition) 

employee, officer or agent of the grant­ ee or subgrantee shall participate in se­ lection, or in the award or administration of a contract supported by Federal 

funds if a conflict of interest, real or apparent, would be involved. Such a conflict would arise when-

(i) The employee, officer or agent; 

(ii) Any member of his immediate 

family; 

(iii) His or her partner; or 

(iv) An organization which employs, or is about to employ, any of the 

above, has a financial or other interest 

in the firm selected for award. The 

grantee's or subgrantee's officers, em­ ployees or agents will neither solicit nor accept gratuities, favors or anything of monetary value from contractors, potential contractors, or parties 

to subagreements. Grantee and subgrantees may set minimum rules where 

the financial interest is not substantial or the gift is an unsolicited item of 

nominal intrinsic value. To the extent 

permitted by State or local law or regulations, such standards or conduct 

will provide for penalties, sanctions, or other disciplinary actions for violations of such standards by the grantee's and subgrantee's officers, employees, or agents, or by contractors or their agents. The awarding agency may 

in regulation provide additional prohibitions relative to real, apparent, or potential conflicts of interest. 

(4) Grantee and subgrantee procedures will provide for a review of proposed procurements to avoid purchase 

of unnecessary or duplicative items. 

Consideration should be given to con­ solidating or breaking out procurements to obtain a more economical 

purchase. Where appropriate, an analysis will be made of lease versus purchase alternatives, and any other appropriate analysis to determine the 

most economical approach. 

(5) To foster greater economy and efficiency, grantees and subgrantees are encouraged to enter into State and 

local intergovernmental agreements 

for procurement or use of common goods and services. 

(6) Grantees and subgrantees are en­ couraged to use Federal excess and sur­ plus property in lieu of purchasing new equipment and property whenever such 

728 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2541.360 

use is feasible and reduces project 

costs. 

(7) Grantees and subgrantees are en­ couraged to use value engineering 

clauses in contracts for construction 

projects of sufficient size to offer rea­ sonable opportunities for cost reductions. Value engineering is a systematic and creative analysis of each con­ tract item or task to ensure that its es­ sential function is provided at the 

overall lower cost. 

(8) Grantees and subgrantees will 

make awards only to responsible con­ tractors possessing the ability to perform successfully under the terms and 

conditions of a proposed procurement. 

Consideration will be given to such 

matters as contractor integrity, com­ pliance with public policy, record of 

past performance, and financial and 

technical resources. (9) Grantees and subgrantees will 

maintain records sufficient to detail 

the significant history of a procurement. These records will include, but are not necessarily limited to the following: Rationale for the method of 

procurement, selection of contract 

type, contractor selection or rejection, 

and the basis for the contract price. 

(10) Grantees and subgrantees will use time and material type contracts 

only- (i) After a determination that no other contract is suitable; and 

(ii) If the contract includes a ceiling 

price that the contractor exceeds at its own risk. 

(11) Grantees and subgrantees alone 

will be responsible, in accordance with 

good administrative practice and sound 

business judgment, for the settlement 

of all contractual and administrative 

issues arising out of procurements. 

These issues include, but are not limited to source evaluation, protests, disputes, and claims. These standards do 

not relieve the grantee or subgrantee 

of any contractual responsibilities 

under its contracts. Federal agencies 

will not substitute their judgment for 

that of the grantee or subgrantee un­ less the matter is primarily a Federal concern. Violations of law will be re­ ferred to the local, State, or Federal 

authority having proper jurisdiction. 

(12) Grantees and subgrantees will 

have protest procedures to handle and 

resolve disputes relating to their procurements and shall in all instances 

disclose information regarding the protest to the awarding agency. A protester must exhaust all administrative 

remedies with the grantee and subgrantee before pursuing a protest with 

the Federal agency. Reviews of protests by the Federal agency will be limited to: 

(i) Violations of Federal law or regulations and the standards of this sec­ tion (violations of State or local law 

will be under the jurisdiction of State or local authorities); and 

(ii) Violations of the grantee's or subgrantee's protest procedures for failure 

to review a complaint or protest. Protests received by the Federal agency 

other than those specified in this paragraph (b)(12)(ii) will be referred to the 

grantee or subgrantee. 

(c) Competition. (1) All procurement 

transactions will be conducted in a manner providing full and open com­ petition consistent with the standards 

of this section. Some of the situations 

considered to be restrictive of competition include but are not limited to: 

(i) Placing unreasonable requirements on firms in order for them to 

qualify to do business; 

(ii) Requiring unnecessary experience 

and excessive bonding; 

(iii) Noncompetitive pricing practices 

between firms or between affiliated 

companies; 

(iv) Noncompetitive awards to con­ sultants that are on retainer contracts; 

(v) Organizational conflicts of interest; 

(vi) Specifying only a "brand name" 

product instead of allowing "an equal" 

product to be offered and describing 

the performance of other relevant re­ quirements of the procurement; and 

(vii) Any arbitrary action in the procurement process. 

(2) Grantees and subgrantees will 

conduct procurements in a manner that prohibits the use of statutory or administratively imposed in-State or local geographical preferences in the 

evaluation of bids or proposals, except 

in those cases where applicable Federal 

statutes expressly mandate or encour­ age geographic preference. Nothing in 

this section preempts State licensing 

729 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2541.360 

laws. When contracting for architectural and engineering (A/E) services, 

geographic location may be a selection 

criteria provided its application leaves an appropriate number of qualified 

firms, given the nature and size of the 

project, to compete for the contract. 

(3) Grantees will have written selection procedures for procurement transactions. These procedures will ensure that all solicitations: 

(i) Incorporate a clear and accurate 

description of the technical requirements for the material, product, or service to be procured. Such description shall not, in competitive procurements, contain features which unduly 

restrict competition. The description 

may include a statement of the qualitative nature of the material, product or service to be procured, and when 

necessary, shall set forth those minimum essential characteristics and 

standards to which it must conform if 

it is to satisfy its intended use. Detailed product specifications should be 

avoided if at all possible. When it is 

impractical or uneconomical to make a clear and accurate description of the 

technical requirements, a "brand name or equal" description may be used as a means to define the performance or other salient requirements of a procurement. The specific features of the 

named brand which must be met by 

offerors shall be clearly stated; and 

(ii) Identify all requirements which 

the offerors must fulfill and all other 

factors to be used in evaluating bids or proposals. 

(4) Grantees and subgrantees will en­ sure that all prequalified lists of persons, firms, or products which are used 

in acquiring goods and services are cur­ rent and include enough qualified sources to ensure maximum open and 

free competition. Also, grantees and 

subgrantees will not preclude potential 

bidders from qualifying during the so­ licitation period. 

(d) Methods of procurement to be followed-(!) Procurement by small purchase 

procedures. Small purchase procedures are those relatively simple and informal procurement methods for securing 

services, supplies, or other property 

that do not cost more than the sim45 CFR Ch. XXV (10-1-12 Edition) 

If small purchase procedures are used, 

price or rate quotations shall be obtained from an adequate number of 

qualified sources. 

(2) Procurement by sealed bids (formal advertising). Bids are publicly so­ licited and a firm-fixed-price contract 

(lump sum or unit price) is awarded to 

the responsible bidder whose bid, con­ forming with all the material terms 

and conditions of the invitation for 

bids, is the lowest in price. The sealed 

bid method is the preferred method for 

procuring construction, if the conditions in§ 2541.36(d)(2)(i) apply. 

(i) In order for sealed bidding to be 

feasible, the following conditions 

should be present: 

(A) A complete, adequate, and realistic specification or purchase description is available; 

(B) Two or more responsible bidders are willing and able to compete effectively and for the business; and 

(C) The procurement lends itself to a firm fixed price contract and the selection of the successful bidder can be 

made principally on the basis of price. 

(ii) If sealed bids are used, the following requirements apply: 

(A) The invitation for bids will be 

publicly advertised and bids shall be 

solicited from an adequate number of 

known suppliers, providing them sufficient time prior to the date set for 

opening the bids; 

(B) The invitation for bids, which 

will include any specifications and pertinent attachments, shall define the 

items or services in order for the bidder 

to properly respond; 

(C) All bids will be publicly opened at 

the time and place prescribed in the invitation for bids; 

(D) A firm fixed-price contract award 

will be made in writing to the lowest 

responsive and responsible bidder. 

Where specified in bidding documents, 

factors such as discounts, transportation cost, and life cycle costs shall be 

considered in determining which bid is 

lowest. Payment discounts will only be 

used to determine the low bid when 

prior experience indicates that such 

discounts are usually taken advantage 

of; and 

plified acquisition threshold fixed at 41 (E) Any or all bids may be rejected if 

U.S.C. 403(11) (currently set at $100,000). there is a sound documented reason. 

730 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2541.360 

(3) Procurement by competitive proposals. The technique of competitive 

proposals is normally conducted with more than one source submitting an offer, and either a fixed-price or costreimbursement type contract is awarded. It is generally used when conditions are not appropriate for the use of 

sealed bids. If this method is used, the 

following requirements apply: 

(i) Requests for proposals will be publicized and identify all evaluation factors and their relative importance. Any 

response to publicized requests for proposals shall be honored to the max­ imum extent practical; 

(ii) Proposals will be solicited from an adequate number of qualified 

sources; 

(iii) Grantees and subgrantees will 

have a method for conducting technical evaluations of the proposals re­ ceived and for selecting awardees; 

(iv) Awards will be made to the re­ sponsible firm whose proposal is most 

advantageous to the program, with 

price and other factors considered; and 

(v) Grantees and subgrantees may use competitive proposal procedures 

for qualifications-based procurement of 

architectural/engineering (AJE) professional services whereby competitors' 

qualifications are evaluated and the 

most qualified competitor is selected, 

subject to negotiation of fair and rea­ sonable compensation. The method, 

where price is not used as a selection 

factor, can only be used in procurement of AJE professional services. It 

cannot be used to purchase other types 

of services though AJE firms are a potential source to perform the proposed 

effort. 

(4) Procurement by noncompetitive 

proposals is procurement through solicitation of a proposal from only one 

source, or after solicitation of a num­ ber of sources, competition is determined inadequate. 

(i) Procurement by noncompetitive 

proposals may be used only when the 

award of a contract is infeasible under 

small purchase procedures, sealed bids or competitive proposals and one of the 

following circumstances applies: 

(A) The item is available only from a single source; 

(B) The public exigency or emergency 

for the requirement will not permit a 

delay resulting from competitive solicitation; 

(C) The awarding agency authorizes 

noncompetitive proposals; or 

(D) After solicitation of a number of 

sources, competition is determined inadequate. 

(ii) Cost analysis, i.e., verifying the 

proposed cost data, the projections of 

the data, and the evaluation of the specific elements of costs and profits, is 

required. 

(iii) Grantees and subgrantees may 

be required to submit the proposed procurement to the awarding agency for 

pre-award review in accordance with 

paragraph (g) of this section. 

(e) Contracting with small and minority 

firms, women's business enterprise and 

labor surplus area firms. (1) The grantee 

and subgrantee will take all necessary 

affirmative steps to assure that minority firms, women's business enterprises, and labor surplus area firms are used when possible. 

(2) Affirmative steps shall include: 

(i) Placing qualified small and minority businesses and women's business 

enterprises on solicitation lists; 

(ii) Assuring that small and minority 

businesses, and women's business en­ terprises are solicited whenever they 

are potential sources; 

(iii) Dividing total requirements, 

when economically feasible, into small­ er tasks or quantities to permit max­ imum participation by small and minority business, and women's business 

enterprises; 

(iv) Establishing delivery schedules, 

where the requirement permits, which 

encourage participation by small and 

minority business, and women's busi­ ness enterprises; 

(v) Using the services and assistance 

of the Small Business Administration, 

and the Minority Business Development Agency of the Department of 

Commerce; and 

(vi) Requiring the prime contractor, 

if subcontracts are to be let, to take 

the affirmative steps listed in paragraphs (e)(2) (i) through (v) of this section. 

(f) Contract cost and price. (1) Grant­ ees and subgrantees must perform a cost or price analysis in connection 

731 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2541.360 

with every procurement action including contract modifications. The method and degree of analysis is dependent on the facts surrounding the particular 

procurement situation, but as a starting point, grantees must make independent estimates before receiving bids or proposals. A cost analysis must be 

performed when the offeror is required 

to submit the elements of his estimated cost, e.g., under professional, 

consulting, and architectural engineering services contracts. A cost analysis 

will be necessary when adequate price 

competition is lacking, and for sole source procurements, including con­ tract modifications or change orders, 

unless price reasonableness can be es­ tablished on the basis of a catalog or market price of a commercial product 

sold in substantial quantities to the 

general public or based on prices set by 

law or regulation. A price analysis will 

be used in all other instances to determine the reasonableness of the proposed contract price. 

(2) Grantees and subgrantees will ne­ gotiate profit as a separate element of 

the price for each contract in which 

there is no price competition and in all cases where cost analysis is performed. 

To establish a fair and reasonable profit, consideration will be given to the 

complexity of the work to be performed, the risk borne by the con­ tractor, the contractor's investment, 

the amount of subcontracting, the 

quality of its record of past performance, and industry profit rates in the 

surrounding geographical area for 

similar work. 

(3) Costs or prices based on estimated 

costs for contracts under grants will be 

allowable only to the extent that costs 

incurred or cost estimates included in 

negotiated prices are consistent with 

Federal cost principles (see § 2541.220). 

Grantees may reference their own cost 

principles that comply with the applicable Federal cost principles. 

(4) The cost plus a percentage of cost 

and percentage of construction cost 

methods of contracting shall not be 

used. 

(g) Awarding agency review. (1) Grant­ ees and subgrantees must make available, upon request of the awarding 

agency, technical specifications on proposed procurements where the award45 CFR Ch. XXV (10-1-12 Edition) 

ing agency believes such review is 

needed to ensure that the item and/or 

service specified is the one being proposed for purchase. This review generally will take place prior to the time 

the specification is incorporated into a solicitation document. However, if the 

grantee or subgrantee desires to have 

the review accomplished after a solicitation has been developed, the awarding agency may still review the specifications, with such review usually limited to the technical aspects of the proposed purchase. 

(2) Grantees and subgrantees must on request make available for awarding 

agency pre-award review procurement 

documents, such as requests for proposals or invitations for bids, independent cost estimates, etc. when: 

(i) A grantee's or subgrantee's procurement procedures or operation fails 

to comply with the procurement standards in this section; or 

(ii) The procurement is expected to 

exceed the simplified acquisition 

threshold and is to be awarded without 

competition or only one bid or offer is 

received in response to a solicitation; or 

(iii) The procurement, which is ex­ pected to exceed the simplified acquisition threshold, specifies a "brand 

name" product; or 

(iv) The proposed award is more than 

the simplified acquisition threshold 

and is to be awarded to other than the 

apparent low bidder under a sealed bid 

procurement; or 

(v) A proposed contract modification 

changes the scope of a contract or in­ creases the contract amount by more than the simplified acquisition threshold. 

(3) A grantee or subgrantee will be 

exempt from the pre-award review in 

paragraph (g)(2) of this section if the 

awarding agency determines that its 

procurement systems comply with the 

standards of this section. 

(i) A grantee or subgrantee may re­ quest that its procurement system be 

reviewed by the awarding agency to determine whether its system meets 

these standards in order for its system 

to be certified. Generally, these re­ views shall occur where there is a con­ tinuous high-dollar funding, and third732 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2541.360 

party contracts are awarded on a regular basis. 

(ii) A grantee or subgrantee may selfcertify its procurement system. Such 

self-certification shall not limit the 

awarding agency's right to survey the 

system. Under a self-certification procedure, awarding agencies may wish to 

rely on written assurances from the 

grantee or subgrantee that it is com­ plying with these standards. A grantee or subgrantee will cite specific procedures, regulations, standards, etc., as being in compliance with these requirements and have its system available 

for review. 

(h) Bonding requirements. For con­ struction or facility improvement con­ tracts or subcontracts exceeding the 

simplified acquisition threshold, the 

awarding agency may accept the bonding policy and requirements of the 

grantee or subgrantee provided the 

awarding agency has made a determination that the awarding agency's 

interest is adequately protected. If 

such a determination has not been 

made, the minimum requirements shall 

be as follows: 

(1) A bid guarantee from each bidder 

equivalent to five percent of the bid price. 

The "bid guarantee" shall consist of a firm commitment such as a bid bond, 

certified check, or other negotiable instrument accompanying a bid as assur­ ance that the bidder will, upon accept­ ance of his bid, execute such contractual documents as may be required 

within the time specified. 

(2) A performance bond on the part of 

the contractor for 100 percent of the contract price. A "performance bond" is one executed in connection with a con­ tract to secure fulfillment of all the 

contractor's obligations under such 

contract. 

(3) A payment bond on the part of the 

contractor for 100 percent of the contract 

price. A "payment bond" is one exe­ cuted in connection with a contract to assure payment as required by law of 

all persons supplying labor and material in the execution of the work provided for in the contract. 

(i) Contract provisions. A grantee's 

and subgrantee's contracts must con­ tain provisions in paragraph (i) of this 

section. Federal agencies are permitted 

to require changes, remedies, changed 

conditions, access and records retention, suspension of work, and other 

clauses approved by the Office of Federal Procurement Policy. 

(1) Administrative, contractual, or legal remedies in instances where contractors violate or breach contract 

terms, and provide for such sanctions 

and penalties as may be appropriate. 

(Contracts more than the simplified ac­ quisition threshold) 

(2) Termination for cause and for 

convenience by the grantee or subgrantee including the manner by which 

it will be effected and the basis for settlement. (All contracts in excess of 

$10,000) 

(3) Compliance with Executive Order 

11246 of September 24, 1965, entitled 

"Equal Employment Opportunity," as 

amended by Executive Order 11375 of 

October 13, 1967, and as supplemented 

in Department of Labor regulations (41 

CFR chapter 60). (All construction con­ tracts awarded in excess of $10,000 by 

grantees and their contractors or subgrantees) 

(4) Compliance with the Copeland 

"Anti-Kickback" Act (18 U.S.C. 874) as supplemented in Department of Labor 

regulations (29 CFR Part 3). (All con­ tracts and subgrants for construction or repair) 

(5) Compliance with the Davis-Bacon 

Act (40 U.S.C. 276a to 276a-7) as supplemented by Department of Labor regulations (29 CFR Part 5). (Construction 

contracts in excess of $2000 awarded by 

grantees and subgrantees when re­ quired by Federal grant program legislation) 

(6) Compliance with Sections 103 and 

107 of the Contract Work Hours and 

Safety Standards Act (40 U.S.C. 327-330) as supplemented by Department of 

Labor regulations (29 CFR Part 5). 

(Construction contracts awarded by 

grantees and subgrantees in excess of 

$2000, and in excess of $2500 for other 

contracts which involve the employment of mechanics or laborers) 

(7) Notice of awarding agency re­ quirements and regulations pertaining 

to reporting. 

(8) Notice of awarding agency re­ quirements and regulations pertaining 

to patent rights with respect to any 

discovery or invention which arises or 

733 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2541.370 

is developed in the course of or under 

such contract. 

(9) Awarding agency requirements 

and regulations pertaining to copyrights and rights in data. 

(10) Access by the grantee, the subgrantee, the Federal grantor agency, 

the Comptroller General of the United 

States, or any of their duly authorized 

representatives to any books, documents, papers, and records of the con­ tractor which are directly pertinent to 

that specific contract for the purpose 

of making audit, examination, ex­ cerpts, and transcriptions. 

(11) Retention of all required records 

for three years after grantees or subgrantees make final payments and all 

other pending matters are closed. 

(12) Compliance with all applicable 

standards, orders, or requirements 

issued under section 306 of the Clean 

Air Act (42 U.S.C. 1857(h)), section 508 

of the Clean Water Act (33 U.S.C. 1368), 

Executive Order 11738, and Environmental Protection Agency regulations 

(40 CFR part 15). (Contracts, subcontracts, and subgrants of amounts in excess of $100,000) 

(13) Mandatory standards and policies 

relating to energy efficiency which are contained in the state energy conserva­ tion plan issued in compliance with the 

Energy Policy and Conservation Act 

(Pub. L. 94-163, 89 Stat. 871). 

[59 FR 41598, Aug. 12, 1994, as amended at 60 

FR 19639, 19646, Apr. 19, 1995] 

§ 2541.370 Subgrants. 

(a) States. States shall follow State 

law and procedures when awarding and 

administering subgrants (whether on a cost reimbursement or fixed amount 

basis) of financial assistance to local 

and Indian tribal governments. States 

shall: 

(1) Ensure that every subgrant includes any clauses required by Federal 

statute and executive orders and their 

implementing regulations; 

(2) Ensure that subgrantees are aware of requirements imposed upon 

them by Federal statute and regulation; 

(3) Ensure that a provision for com­ pliance with §2541.400 is placed in every 

cost reimbursement subgrant; and 

(4) Conform any advances of grant 

funds to subgrantees substantially to 

45 CFR Ch. XXV (10-1-12 Edition) 

the same standards of timing and 

amount that apply to cash advances by 

Federal agencies. 

(b) All other grantees. All other grant­ ees shall follow the provisions of this 

part which are applicable to awarding 

agencies when awarding and administering subgrants (whether on a cost 

reimbursement or fixed amount basis) 

of financial assistance to local and Indian tribal governments. Grantees 

shall: 

(1) Ensure that every subgrant includes a provision for compliance with 

this part; 

(2) Ensure that every subgrant includes any clauses required by Federal 

statute and executive orders and their 

implementing regulations; and 

(3) Ensure that subgrantees are aware of requirements imposed upon 

them by Federal statutes and regulations. 

(c) Exceptions. By their own terms, 

certain provisions of this part do not 

apply to the award and administration 

of subgrants: 

(1) § 2541.100; 

(2) § 2541.110; 

(3) The letter-of-credit procedures 

specified in Treasury Regulations at 31 

CFR part 205, cited in §2541.210; and 

( 4) § 2541.500. 

Subpart E-Reports, Records, 

Retention and Enforcement 

§ 2541.400 Monitoring and reporting 

program performance. 

(a) Monitoring by grantees. Grantees are responsible for managing the dayto-day operations of grant and 

subgrant supported activities. Grantees 

must monitor grant and subgrant supported activities to assure compliance 

with applicable Federal requirements 

and that performance goals are being 

achieved. Grantee monitoring must cover each program, function or activity. 

(b) Nonconstruction performance re­ ports. The Federal agency may, if it decides that performance information 

available from subsequent applications 

contains sufficient information to 

meet its programmatic needs, require 

the grantee to submit a performance 

report only upon expiration or termination of grant support. Unless waived 

734 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2541.410 

by the Federal agency this report will 

be due on the same date as the final Financial Status Report. 

(1) Grantees shall submit annual performance reports unless the awarding 

agency requires quarterly or semi-annual reports. However, performance re­ ports will not be required more frequently than quarterly. Annual reports 

shall be due 90 days after the grant 

year, quarterly or semi-annual reports 

shall be due 30 days after the reporting 

period. The final performance report 

will be due 90 days after the expiration or termination of grant support. If a justified request is submitted by a grantee, the Federal agency may ex­ tend the due date for any performance 

report. Additionally, requirements for 

unnecessary performance reports may 

be waived by the Federal agency. 

(2) Performance reports will contain, 

for each grant, brief information on the 

following: 

(i) A comparison of actual accom­ plishments to the objectives established for the period. Where the output 

of the project can be quantified, a com­ putation of the cost per unit of output 

may be required if that information 

will be useful. 

(ii) The reasons for slippage if established objectives were not met. 

(iii) Additional pertinent information 

including, when appropriate, analysis 

and explanation of cost overruns or high unit costs. 

(3) Grantees will not be required to 

submit more than the original and two 

copies of performance reports. 

(4) Grantees will adhere to the standards in this section in prescribing performance reporting requirements for 

subgrantees. 

(c) Construction performance reports. 

For the most part, on-site technical inspections and certified percentage-ofcompletion data are relied on heavily 

by Federal agencies to monitor 

progress under construction grants and 

subgrants. The Federal agency will re­ quire additional formal performance 

reports only when considered nec­ essary, and never more frequently than 

quarterly. 

(d) Significant developments. Events 

may occur between the scheduled performance reporting dates which have 

significant impact upon the grant or 

subgrant supported activity. In such 

cases, the grantee must inform the 

Federal agency as soon as the following 

types of conditions become known: 

(1) Problems, delays, or adverse con­ ditions which will materially impair 

the ability to meet the objective of the 

award. This disclosure must include a statement of the action taken, or con­ templated, and any assistance needed 

to resolve the situation. 

(2) Favorable developments which en­ able meeting time schedules and objectives sooner or at less cost than anticipated or producing more beneficial re­ sults than originally planned. 

(e) Site visits. Federal agencies may 

make site visits as warranted by program needs. 

(f) Waivers, extensions. (1) Federal 

agencies may waive any performance 

report required by this part if not needed. 

(2) The grantee may waive any performance report from a subgrantee 

when not needed. The grantee may ex­ tend the due date for any performance 

report from a subgrantee if the grantee 

will still be able to meet its perform­ ance reporting obligations to the Federal agency. 

§ 2541.410 Financial reporting. 

(a) General. (1) Except as provided in 

paragraphs (a) (2) and (5) of this sec­ tion, grantees will use only the forms 

specified in paragraphs (a) through (e) 

of this section, and such supplementary or other forms as may from 

time to time be authorized by 0MB, 

for: 

(i) Submitting financial reports to 

Federal agencies; or 

(ii) Requesting advances or reimbursements when letters of credit are 

not used. 

(2) Grantees need not apply the forms 

prescribed in this section in dealing 

with their subgrantees. However, 

grantees shall not impose more burden­ some requirements on subgrantees. 

(3) Grantees shall follow all applicable standard and supplemental Federal 

agency instructions approved by 0MB 

to the extent required under the Paperwork Reduction Act of 1980 for use in 

connection with forms specified in 

735 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2541.410 

paragraphs (b) through (e) of this sec­ tion. Federal agencies may issue substantive supplementary instructions 

only with the approval of 0MB. Federal 

agencies may shade out or instruct the 

grantee to disregard any line item that 

the Federal agency finds unnecessary 

for its decision making purposes. 

(4) Grantees will not be required to 

submit more than the original and two 

copies of forms required under this 

part. 

(5) Federal agencies may provide 

computer outputs to grantees to expedite or contribute to the accuracy of 

reporting. Federal agencies may accept 

the required information from grantees 

in machine usable format or computer 

printouts instead of prescribed forms. 

(6) Federal agencies may waive any 

report required by this section if not 

needed. 

(7) Federal agencies may extend the 

due date of any financial report upon 

receiving a justified request from a grantee. 

(b) Financial Status Report-(!) Form. 

Grantees will use Standard Form 269 or 269A, Financial Status Report, to re­ port the status of funds for all non­ construction grants and for construction grants when required in accord­ ance with paragraph (e)(2)(iii) of this 

section. 

(2) Accounting basis. Each grantee will 

report program outlays and program 

income on a cash or accrual basis as prescribed by the awarding agency. If 

the Federal agency requires accrual information and the grantee's accounting 

records are not normally kept on the 

accrual basis, the grantee shall not be 

required to convert its accounting system but shall develop such accrual information through an analysis of the 

documentation on hand. 

(3) Frequency. The Federal agency 

may prescribe the frequency of the re­ port for each project or program. However, the report will not be required more frequently than quarterly. If the 

Federal agency does not specify the 

frequency of the report, it will be submitted annually. A final report will be 

required upon expiration or termination of grant support. 

(4) Due date. When reports are re­ quired on a quarterly or semiannual 

basis, they will be due 30 days after the 

45 CFR Ch. XXV (10-1-12 Edition) 

reporting period. When required on an annual basis, they will be due 90 days 

after the grant year. Final reports will 

be due 90 days after the expiration or termination of grant support. 

(c) Federal Cash Transactions Report­

(!) Form. (i) For grants paid by letter or credit, Treasury check advances or electronic transfer of funds, the grant­ ee will submit the Standard Form 272, 

Federal Cash Transactions Report, and 

when necessary, its continuation sheet, 

Standard Form 272a, unless the terms 

of the award exempt the grantee from 

this requirement. 

(ii) These reports will be used by the 

Federal agency to monitor cash advanced to grantees and to obtain disbursement or outlay information for 

each grant from grantees. The format 

of the report may be adapted as appropriate when reporting is to be accom­ plished with the assistance of automatic data processing equipment provided that the information to be submitted is not changed in substance. 

(2) Forecasts of Federal cash requirements. Forecasts of Federal cash re­ quirements may be required in the 

"Remarks" section of the report. 

(3) Cash in hands of subgrantees. When 

considered necessary and feasible by 

the Federal agency, grantees may be 

required to report the amount of cash 

advances in excess of three days' needs 

in the hands of their subgrantees or contractors and to provide short nar­ rative explanations of actions taken by 

the grantee to reduce the excess bal­ ances. 

(4) Frequency and due date. Grantees 

must submit the report no later than 15 

working days following the end of each 

quarter. However, where an advance either by letter of credit or electronic 

transfer of funds is authorized at an annualized rate of one million dollars or more, the Federal agency may re­ quire the report to be submitted within 

15 working days following the end of 

each month. 

(d) Request for advance or reimbursement-(!) Advance payments. Requests 

for Treasury check advance payments 

will be submitted on Standard Form 

270, Request for Advance or Reimbursement. (This form will not be used for 

drawdowns under a letter of credit, 

electronic funds transfer or when 

736 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2541.420 

Treasury check advance payments are made to the grantee automatically on a predetermined basis.) 

(2) Reimbursements. Requests for reimbursement under nonconstruction 

grants will also be submitted on Standard Form 270. (For reimbursement re­ quests under construction grants, see paragraph (e)(l) of this section.) 

(3) The frequency for submitting payment requests is treated in paragraph 

(b)(3) of this section. 

(e) Outlay report and request for reimbursement for construction programs-(l) 

Grants that support construction activities paid by reimbursement method. (i) 

Requests for reimbursement under con­ struction grants will be submitted on Standard Form 271, Outlay Report and 

Request for Reimbursement for Construction Programs. Federal agencies 

may, however, prescribe the Request 

for Advance or Reimbursement form, 

specified in paragraph (d) of this sec­ tion, instead of this form. 

(ii) The frequency for submitting re­ imbursement requests is treated in 

paragraph (b)(3) of this section. 

(2) Grants that support construction activities paid by letter of credit, electronic 

funds transfer or Treasury check advance. (i) When a construction grant is 

paid by letter of credit, electronic 

funds transfer or Treasury check advances, the grantee will report its outlays to the Federal agency using 

Standard Form 271, Outlay Report and 

Request for Reimbursement for Construction Programs. The Federal agency will provide any necessary special 

instruction. However, frequency and 

due date shall be governed by paragraphs (b) (3) and (4) of this section. 

(ii) When a construction grant is paid 

by Treasury check advances based on periodic requests from the grantee, the 

advances will be requested on the form 

specified in paragraph (d) of this sec­ tion. 

(iii) The Federal agency may substitute the Financial Status Report 

specified in paragraph (b) of this sec­ tion for the Outlay Report and Request 

for Reimbursement for Construction 

Programs. 

(3) Accounting basis. The accounting 

basis for the Outlay Report and Request for Reimbursement for Construetion Programs shall be governed by 

paragraph (b)(2) of this section. 

§ 2541.420 Retention and access re­ quirements for records. 

(a) Applicability. (1) This section applies to all financial and programmatic 

records, supporting documents, statistical records, and other records of 

grantees or subgrantees which are: 

(i) Required to be maintained by the 

terms of this part, program regulations 

or the grant agreement; or 

(ii) Otherwise reasonably considered 

as pertinent to program regulations or 

the grant agreement. 

(2) This section does not apply to 

records maintained by contractors or 

subcontractors. For a requirement to 

place a provision concerning records in 

certain kinds of contracts, see § 2541.360(i)(10). 

(b) Length of retention period. (1) Except as otherwise provided, records 

must be retained for three years from 

the starting date specified in paragraph 

(c) of this section. 

(2) If any litigation, claim, negotiation, audit or other action involving 

the records has been started before the 

expiration of the 3-year period, the 

records must be retained until completion of the action and resolution of all 

issues which arise from it, or until the 

end of the regular 3-year period, whichever is later. 

(3) To avoid duplicate recordkeeping, 

awarding agencies may make special 

arrangements with grantees and subgrantees to retain any records which 

are continuously needed for joint use. 

The awarding agency will request 

transfer of records to its custody when 

it determines that the records possess 

long-term retention value. When the 

records are transferred to or maintained by the Federal agency, the 3-

year retention requirement is not applicable to the grantee or subgrantee. 

(c) Starting date of retention period-(l) 

General. When grant support is continued or renewed at annual or other intervals, the retention period for the 

records of each funding period starts on 

the day the grantee or subgrantee submi ts to the awarding agency its single 

737 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2541.430 

or last expenditure report for that period. However, if grant support is con­ tinued or renewed quarterly, the retention period for each year's records 

starts on the day the grantee submits 

its expenditure report for the last quarter of the Federal fiscal year. In all 

other cases, the retention period starts on the day the grantee submits its 

final expenditure report. If an expenditure report has been waived, the retention period starts on the day the report 

would have been due. 

(2) Real property and equipment 

records. The retention period for real 

property and equipment records starts 

from the date of the disposition or re­ placement or transfer at the direction 

of the awarding agency. 

(3) Records for income transactions 

after grant or subgrant support. In some cases grantees must report income 

after the period of grant support. 

Where there is such a requirement, the 

retention period for the records pertaining to the earning of the income 

starts from the end of the grantee's fiscal year in which the income is earned. 

(4) Indirect cost rate proposals, cost allocations plans, etc. This paragraph applies to the following types of documents, and their supporting records: 

indirect cost rate computations or proposals, cost allocation plans, and any 

similar accounting computations of 

the rate at which a particular group of 

costs is chargeable (such as computer 

usage charge back rates or composite 

fringe benefit rates). 

(i) If submitted for negotiation. If the 

proposal, plan, or other computation is 

required to be submitted to the Federal 

Government (or to the grantee) to form 

the basis for negotiation of the rate, 

then the 3-year retention period for its 

supporting records starts from the date 

of such submission. 

(ii) If not submitted for negotiation. If 

the proposal, plan, or other computation is not required to be submitted to 

the Federal Government (or to the 

grantee) for negotiation purposes, then 

the 3-year retention period for the proposal plan, or computation and its supporting records starts from end of the 

fiscal year (or other accounting period) 

covered by the proposal, plan, or other 

computation. 

45 CFR Ch. XXV (10-1-12 Edition) 

(d) Substitution of microfilm. Copies 

made by microfilming, photocopying, or similar methods may be substituted 

for the original records. 

(e) Access to records-(!) Records of 

grantees and subgrantees. The awarding 

agency, the Inspector General, and the 

Comptroller General of the United 

States, or any of their authorized representatives, shall have the right of ac­ cess to any pertinent books, documents, papers, or other records of 

grantees and subgrantees which are pertinent to the grant, in order to 

make audits, examinations, excerpts, 

and transcripts. 

(2) Expiration of right of access. The 

rights of access in this section must 

not be limited to the required retention period but shall last as long as the 

records are retained. 

(f) Restrictions on public access. The 

Federal Freedom of Information Act (5 

U.S.C. 552) does not apply to records. 

Unless required by Federal, State, or local law, grantees and subgrantees are not required to permit public access to 

their records. 

[59 FR 41598, Aug. 12, 1994, as amended at 73 

FR 53762, Sept. 17, 2008] 

§ 2541.430 Enforcement. 

(a) Remedies for noncompliance. If a 

grantee or subgrantee materially fails 

to comply with any term of an award, 

whether stated in a Federal statute or regulation, an assurance, in a State 

plan or application, a notice of award, or elsewhere, the awarding agency may 

take one or more of the following ac­ tions, as appropriate in the circumstances: 

(1) Temporarily withhold cash payments pending correction of the deficiency by the grantee or subgrantee or more severe enforcement action by the 

awarding agency; 

(2) Disallow (that is, deny both use of 

funds and matching credit for) all or part of the cost of the activity or ac­ tion not in compliance; 

(3) Wholly or partly suspend or terminate the current award for the 

grantee's or subgrantee's program; 

(4) Withhold further awards for the 

program; or 

(5) Take other remedies that may be 

legally available. 

738 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2541.500 

(b) Hearings, appeals. In taking an en­ forcement action, the awarding agency 

will provide the grantee or subgrantee an opportunity for such hearing, appeal, or other administrative proceeding to which the grantee or subgrantee is entitled under any statute or regulation applicable to the action 

involved. 

(c) Effects of suspension and termination. Costs of grantee or subgrantee 

resulting from obligations incurred by 

the grantee or subgrantee during a sus­ pension or after termination of an award are not allowable unless the 

awarding agency expressly authorizes 

them in the notice of suspension or termination or subsequently. Other grant­ ee or subgrantee costs during suspension or after termination which are necessary and not reasonably avoidable are allowable if: 

(1) The costs result from obligations 

which were properly incurred by the 

grantee or subgrantee before the effective date of suspension or termination, are not in anticipation of it, and, in the case of a termination, are noncancellable; and 

(2) The costs would be allowable if 

the award were not suspended or ex­ pired normally at the end of the funding period in which the termination 

takes effect. 

(d) Relationship to debarment and suspension. The enforcement remedies 

identified in this section, including 

suspension and termination, do not 

preclude grantee or subgrantee from 

being subject to "Debarment and Suspension" under E.O. 12549 (see 

§ 2541.350). 

§ 2541.440 Termination for conven­ ience. 

Except as provided in § 2541.430 

awards may be terminated in whole or in part only as follows: 

(a) By the awarding agency with the 

consent of the grantee or subgrantee in 

which case the two parties shall agree 

upon the termination conditions, including the effective date and in the case of partial termination, the portion 

to be terminated; or (b) By the grantee or subgrantee 

upon written notification to the awarding agency, setting forth the reasons for such termination, the effective 

date, and in the case of partial termination, the portion to be terminated. 

However, if, in the case of a partial termination, the awarding agency determines that the remaining portion of 

the award will not accomplish the purposes for which the award was made, 

the awarding agency may terminate 

the award in its entirety under either 

§ 2541.430 or paragraph (a) of this sec­ tion. 

Subpart F-After the Grant 

Requirement 

§ 2541.500 Closeout. 

(a) General. The Federal agency will 

close out the award when it determines 

that all applicable administrative ac­ tions and all required work of the 

grant has been completed. 

(b) Reports. Within 90 days after the 

expiration or termination of the grant, 

the grantee must submit all financial, 

performance, and other reports re­ quired as a condition of the grant. 

Upon request by the grantee, Federal 

agencies may extend this time frame. 

These may include but are not limited 

to: 

(1) Final performance or progress re­ port; 

(2) Financial Status Report (SF 269) or Outlay Report and Request for Reimbursement for Construction Programs (SF-271) (as applicable); 

(3) Final request for payment (SF- 270) (if applicable); 

(4) Invention disclosure (if applicable); 

(5) Federally-owned property report. 

In accordance with § 2541.320(0, a grant­ ee must submit an inventory of all federally owned property (as distinct from 

property acquired with grant funds) for 

which it is accountable and request disposition instructions from the Federal 

agency of property no longer needed. 

(c) Cost adjustment. The Federal agency will, within 90 days after receipt of 

reports in paragraph (b) of this section, 

make upward or downward adjustments to the allowable costs. 

(d) Cash adjustments. (1) The Federal 

agency will make prompt payment to 

the grantee for allowable reimbursable 

costs. 

(2) The grantee must immediately re­ fund to the Federal agency any balance 

739 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2541.510 

of unobligated (unencumbered) cash 

advanced that is not authorized to be 

retained for use on other grants. 

§ 2541.510 Later disallowances and adjustments. 

The closeout of a grant does not affect: 

(a) The Federal agency's right to disallow costs and recover funds on the 

basis of a later audit or other review; 

(b) The grantee's obligation to return 

any funds due as a result of later re­ funds, corrections, or other transactions; 

(c) Records retention as required in 

§2541.420; 

(d) Property management requirements in §§2541.3120 and 2541.320; and 

(e) Audit requirements in §2541.410. 

§ 2541.520 Collection of amounts due. 

(a) Any funds paid to a grantee in ex­ cess of the amount to which the grant­ ee is finally determined to be entitled 

under the terms of the award con­ stitute a debt to the Federal Government. If not paid within a reasonable 

period after demand, the Federal agency may reduce the debt by: 

(1) Making an administrative offset 

against other requests for reimbursements; 

(2) Withholding advance payments 

otherwise due to the grantee; or (3) Other action permitted by law. 

(b) Except where otherwise provided 

by statutes or regulations, the Federal 

agency will charge interest on an over­ due debt in accordance with the Federal Claims Collection Standards (4 

CFR Ch. II). The date from which interest is computed is not extended by litigation or the filing of any form of appeal. 

PART 2543-GRANTS AND AGREEMENTS WITH INSTITUTIONS OF 

HIGHER EDUCATION, HOSPITALS, 

AND OTHER NON-PROFIT ORGANIZATIONS 

Subpart A-General 

Sec. 

2543.1 Purpose. 

2543.2 Definitions. 

2543.3 Effect on other issuances. 

2543.4 Deviations. 

2543.5 Subawards. 

45 CFR Ch. XXV (10-1-12 Edition) 

Subpart B-Pre-Award Requirements 

2543.10 Purpose. 

2543.11 Pre-award policies. 

2543.12 Forms for applying for Federal assistance. 

2543.13 Debarment and suspension. 

2543.14 Special award conditions. 

2543.15 Metric system of measurement. 

2543.16 Resource Conservation and Recovery 

Act. 

2543.17 Certifications and representations. 

Subpart C-Post-Award Requirements 

FINANCIAL AND PROGRAM MANAGEMENT 

2543.20 Purpose of financial and program 

management. 

2543.21 Standards for financial management 

systems. 

2543.22 Payment. 

2543.23 Cost sharing or matching. 

2543.24 Program income. 

2543.25 Revision of budget and program 

plans. 

2543.26 Non-Federal audits. 

2543.27 Allowable costs. 

2543.28 Period of availability of funds. 

PROPERTY STANDARDS 

2543.30 Purpose of property standards. 

2543.31 Insurance coverage. 

2543.32 Real property. 

2543.33 Federally-owned and exempt property. 

2543.34 Equipment. 

2543.35 Supplies and other expendable property. 

2543.36 Intangible property. 

2543.37 Property trust relationship. 

PROCUREMENT STANDARDS 

2543.40 Purpose of procurement standards. 

2543.41 Recipient responsibilities. 

2543.42 Codes of conduct. 

2543.43 Competition. 

2543.44 Procurement procedures. 

2543.45 Cost and price analysis. 

2543.46 Procurement records. 

2543.47 Contract administration. 

2543.48 Contract provisions. 

REPORTS AND RECORDS 

2543.50 Purpose of reports and records. 

2543.51 Monitoring and reporting program 

performance. 

2543.52 Financial reporting. 

2543.53 Retention and access requirements 

for records. 

TERMINATION AND ENFORCEMENT 

2543.60 Purpose of termination and enforcement. 

2543.61 Termination. 

2543.62 Enforcement. 

740 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2543.2 

Subpart D--After-the-Award Requirements 

2543. 70 Purpose. 

2543.71 Closeout procedures. 

2543.72 Subsequent adjustments and continuing responsibilities. 

2543.73 Collection of amounts due. 

Subpart E-statutory Compliance 

2543.80 Contract provisions. 

2543.81 Equal employment opportunity. 

2543.82 Copeland "Anti-Kickback" Act. 

2543.83 Davis-Bacon Act. 

2543.84 Contract Work Hours and Safety 

Standards Act. 

2543.85 Rights to inventions made under 

contract or agreement. 

2543.86 Clean Air Act and the Federal Water 

Pollution Control Act. 

2543.87 Byrd anti-lobbying amendment. 

2543.88 Debarment and suspension. 

AUTHORITY: 42 u.s.c. 12501 et seq. 

SOURCE: 60 FR 13055, Mar. 10, 1995, unless 

otherwise noted. 

Subpart A-General 

§ 2543.1 Purpose. 

This Circular establishes uniform administrative requirements for Federal 

grants and agreements awarded to institutions of higher education, hospitals, and other non-profit organizations. Federal awarding agencies shall 

not impose additional or inconsistent 

requirements, except as provided in 

Sections 2543.4, and 2543.14 or unless 

specifically required by Federal statute or executive order. Non-profit organizations that implement Federal programs for the States are also subject to 

State requirements. 

§ 2543.2 Definitions. 

(a) Accrued expenditures means the 

charges incurred by the recipient during a given period requiring the provision of funds for: 

(1) Goods and other tangible property 

received; 

(2) Services performed by employees, 

contractors, subrecipients, and other 

payees; and, 

(3) Other amounts becoming owed 

under programs for which no current 

services or performance is required. 

(b) Accrued income means the sum of: 

(1) Earnings during a given period 

from 

(i) Services performed by the recipient, and 

(ii) Goods and other tangible property delivered to purchasers, and 

(2) Amounts becoming owed to the 

recipient for which no current services or performance is required by the re­ cipient. 

(c) Acquisition cost of equipment means the net invoice price of the equipment, 

including the cost of modifications, attachments, accessories, or auxiliary 

apparatus necessary to make the property usable for the purpose for which it was acquired. Other charges, such as the cost of installation, transportation, 

taxes, duty or protective in-transit insurance, shall be included or excluded 

from the unit acquisition cost in ac­ cordance with the recipient's regular 

accounting practices. 

(d) Advance means a payment made 

by Treasury check or other appropriate 

payment mechanism to a recipient 

upon its request either before outlays are made by the recipient or through 

the use of predetermined payment 

schedules. 

(e) Award means financial assistance 

that provides support or stimulation to 

accomplish a public purpose. Awards 

include grants and other agreements in 

the form of money or property in lieu 

of money, by the Federal Government 

to an eligible recipient. The term does 

not include: technical assistance, 

which provides services instead of 

money; other assistance in the form of 

loans, loan guarantees, interest subsidies, or insurance; direct payments of 

any kind to individuals; and, contracts 

which are required to be entered into 

and administered under procurement 

laws and regulations. 

(f) Cash contributions means the re­ cipient's cash outlay, including the 

outlay of money contributed to the re­ cipient by third parties. 

(g) Closeout means the process by 

which a Federal awarding agency determines that all applicable administrative actions and all required work of 

the award have been completed by the 

recipient and Federal awarding agency. 

(h) Contract means a procurement 

contract under an award or subaward, 

and a procurement subcontract under a recipient's or subrecipient's contract. 

741 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2543.2 

(i) Cost sharing or matching means that portion of project or program 

costs not borne by the Federal Government. 

(j) Date of completion means the date on which all work under an award is 

completed or the date on the award 

document, or any supplement or amendment thereto, on which Federal 

sponsorship ends. 

(k) Disallowed costs means those 

charges to an award that the Federal 

awarding agency determines to be un­ allowable, in accordance with the applicable Federal cost principles or other terms and conditions contained 

in the award. 

(1) Equipment means tangible non­ expendable personal property including 

exempt property charged directly to 

the award having a useful life of more than one year and an acquisition cost 

of $5,000 or more per unit. However, 

consistent with recipient policy, lower 

limits may be established. 

(m) Excess property means property 

under the control of any Federal 

awarding agency that, as determined 

by the head thereof, is no longer re­ quired for its needs or the discharge of 

its responsibilities. 

(n) Exempt property means tangible 

personal property acquired in whole or in part with Federal funds, where the 

Federal awarding agency has statutory 

authority to vest title in the recipient 

without further obligation to the Federal Government. An example of ex­ empt property authority is contained 

in the Federal Grant and Cooperative 

Agreement Act (31 U.S.C. 6306), for 

property acquired under an award to 

conduct basic or applied research by a non-profit institution of higher education or non-profit organization 

whose principal purpose is conducting 

scientific research. 

(o) Federal awarding agency means the Federal agency that provides an award to the recipient. 

(p) Federal funds authorized means the 

total amount of Federal funds obligated by the Federal Government for use by the recipient. This amount may 

include any authorized carryover of un­ obligated funds from prior funding periods when permitted by agency regulations or agency implementing instructions. 

45 CFR Ch. XXV (10-1-12 Edition) 

(q) Federal share of real property, 

equipment, or supplies means that percentage of the property's acquisition 

costs and any improvement expenditures paid with Federal funds. 

(r) Funding period means the period of 

time when Federal funding is available 

for obligation by the recipient. 

(s) Intangible property and debt instruments means, but is not limited to, 

trademarks, copyrights, patents and 

patent applications and such property 

as loans, notes and other debt instruments, lease agreements, stock and 

other instruments of property ownership, whether considered tangible or intangible. 

(t) Obligations means the amounts of 

orders placed, contracts and grants 

awarded, services received and similar 

transactions during a given period that 

require payment by the recipient during the same or a future period. 

(u) Outlays or expenditures means 

charges made to the project or program. They may be reported on a cash 

or accrual basis. For reports prepared 

on a cash basis, outlays are the sum of 

cash disbursements for direct charges 

for goods and services, the amount of 

indirect expense charged, the value of 

third party in-kind contributions applied and the amount of cash advances 

and payments made to subrecipients. 

For reports prepared on an accrual 

basis, outlays are the sum of cash disbursements for direct charges for goods 

and services, the amount of indirect ex­ pense incurred, the value of in-kind 

contributions applied, and the net in­ crease (or decrease) in the amounts 

owed by the recipient for goods and 

other property received, for services 

performed by employees, contractors, 

subrecipients and other payees and 

other amounts becoming owed under 

programs for which no current services or performance are required. 

(v) Personal property means property 

of any kind except real property. It 

may be tangible, having physical existence, or intangible, having no physical 

existence, such as copyrights, patents, 

or securities. 

(w) Prior approval means written approval by an authorized official evidencing prior consent. 

742 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2543.2 

(x) Program income means gross in­ come earned by the recipient that is directly generated by a supported activity or earned as a result of the award 

(see exclusions in paragraphs § 2543.24 

(e) and (h)). Program income includes, 

but is not limited to, income from fees 

for services performed, the use or rental of real or personal property acquired 

under federally-funded projects, the 

sale of commodities or items fabricated 

under an award, license fees and royalties on patents and copyrights, and interest on loans made with award funds. 

Interest earned on advances of Federal 

funds is not program income. Except as otherwise provided in Federal awarding 

agency regulations or the terms and 

conditions of the award, program in­ come does not include the receipt of 

principal on loans, rebates, credits, discounts, etc., or interest earned on any 

of them. 

(y) Project costs means all allowable 

costs, as set forth in the applicable 

Federal cost principles, incurred by a recipient and the value of the contributions made by third parties in accom­ plishing the objectives of the award 

during the project period. 

(z) Project period means the period es­ tablished in the award document during which Federal sponsorship begins 

and ends. 

(aa) Property means, unless otherwise 

stated, real property, equipment, intangible property and debt instruments. 

(bb) Real property means land, including land improvements, structures and 

appurtenances thereto, but excludes 

movable machinery and equipment. 

(cc) Recipient means an organization 

receiving financial assistance directly 

from Federal awarding agencies to 

carry out a project or program. The 

term includes public and private institutions of higher education, public and 

private hospitals, and other quasi-public and private non-profit organizations 

such as, but not limited to, community 

action agencies, research institutes, 

educational associations, and health 

centers. The term may include com­ mercial organizations, foreign or international organizations (such as agencies of the United Nations) which are recipients, subrecipients, or contractors or subcontractors of recipients or 

subrecipients at the discretion of the 

Federal awarding agency. The term 

does not include government-owned 

contractor-operated facilities or re­ search centers providing continued 

support for mission-oriented, largescale programs that are governmentowned or controlled, or are designated as federally-funded research and development centers. 

(dd) Research and development means all research activities, both basic and 

applied, and all development activities 

that are supported at universities, colleges, and other non-profit institutions. "Research" is defined as a systematic study directed toward fuller 

scientific knowledge or understanding 

of the subject studied. "Development" 

is the systematic use of knowledge and 

understanding gained from research directed toward the production of useful 

materials, devices, systems, or methods, including design and development 

of prototypes and processes. The term 

research also includes activities involving the training of individuals in 

research techniques where such activities utilize the same facilities as other 

research and development activities 

and where such activities are not included in the instruction function. 

(ee) Small awards means a grant or cooperative agreement not exceeding 

the small purchase threshold fixed at 

41 U.S.C. 403(11) (currently $25,000). 

(ff) Subaward means an award of financial assistance in the form of 

money, or property in lieu of money, 

made under an award by a recipient to an eligible subrecipient or by a subrecipient to a lower tier subrecipient. 

The term includes financial assistance 

when provided by any legal agreement, even if the agreement is called a con­ tract, but does not include procurement of goods and services nor does it 

include any form of assistance which is 

excluded from the definition of 

"award" in paragraph (e). 

(gg) Subrecipient means the legal entity to which a subaward is made and 

which is accountable to the recipient 

for the use of the funds provided. The 

term may include foreign or international organizations (such as agencies of the United Nations) at the discretion of the Federal awarding agency. 

743 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2543.3 

(hh) Supplies means all personal property excluding equipment, intangible 

property, and debt instruments as defined in this section, and inventions of a contractor conceived or first actually 

reduced to practice in the performance 

of work under a funding agreement 

("subject inventions"), as defined in 37 

CFR part 401, "Rights to Inventions 

Made by Nonprofit Organizations and 

Small Business Firms Under Government Grants, Contracts, and Cooperative Agreements." 

(ii) Suspension means an action by a Federal awarding agency that temporarily withdraws Federal sponsorship 

under an award, pending corrective ac­ tion by the recipient or pending a decision to terminate the award by the 

Federal awarding agency. Suspension 

of an award is a separate action from 

suspension under Federal agency regulations implementing E.O.s 12549 and 

12689, "Debarment and Suspension." 

(jj) Termination means the cancellation of Federal sponsorship, in whole or in part, under an agreement at any 

time prior to the date of completion. 

(kk) Third party in-kind contributions 

means the value of non-cash contributions provided by non-Federal third 

parties. Third party in-kind contributions may be in the form of real property, equipment, supplies and other ex­ pendable property, and the value of 

goods and services directly benefiting 

and specifically identifiable to the 

project or program. 

(11) Unliquidated obligations, for financial reports prepared on a cash basis, means the amount of obligations incurred by the recipient that have not 

been paid. For reports prepared on an accrued expenditure basis, they represent the amount of obligations incurred by the recipient for which an outlay has not been recorded. 

(mm) Unobligated balance means the 

portion of the funds authorized by the 

Federal awarding agency that has not 

been obligated by the recipient and is 

determined by deducting the cumu­ lative obligations from the cumulative 

funds authorized. 

(nn) Unrecovered indirect cost means the difference between the amount 

awarded and the amount which could 

have been awarded under the recipi45 CFR Ch. XXV (10-1-12 Edition) 

ent's approved negotiated indirect cost 

rate. 

(oo) Working capital advance means a procedure where by funds are advanced 

to the recipient to cover its estimated 

disbursement needs for a given initial 

period. 

§ 2543.3 Effect on other issuances. 

For awards subject to this Circular, 

all administrative requirements of 

codified program regulations, program 

manuals, handbooks and other non­ regulatory materials which are inconsistent with the requirements of this 

Circular shall be superseded, except to 

the extent they are required by statute, or authorized in accordance with 

the deviations provision in Section 

§2543.4. 

§ 2543.4 Deviations. 

The Office of Management and Budget (0MB) may grant exceptions for 

classes of grants or recipients subject 

to the requirements of this Circular 

when exceptions are not prohibited by 

statute. However, in the interest of 

maximum uniformity, exceptions from 

the requirements of this Circular shall 

be permitted only in unusual circumstances. Federal awarding agencies 

may apply more restrictive requirements to a class of recipients when approved by 0MB. Federal awarding 

agencies may apply less restrictive re­ quirements when awarding small 

awards, except for those requirements 

which are statutory. Exceptions on a case-by-case basis may also be made by 

Federal awarding agencies. 

§ 2543.5 Subawards. 

Unless sections of this Circular specifically exclude subrecipients from 

coverage, the provisions of this Circular shall be applied to subrecipients 

performing work under awards if such 

subrecipients are institutions of higher 

education, hospitals or other non-profit 

organizations. State and local government subrecipients are subject to the 

provisions of regulations implementing 

the grants management common rule, 

"Uniform Administrative Requirements for Grants and Cooperative 

Agreements to State and Local Governments," published at 53 FR 8034. 

744 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2543.14 

Subpart B-Pre-Award 

Requirements 

§ 2543.10 Purpose. 

Sections § 2543.11 through § 2543.17 

prescribes forms and instructions and 

other pre-award matters to be used in 

applying for Federal awards. 

§2543.11 Pre-award policies. 

(a) Use of Grants and Cooperative 

Agreements, and Contracts. In each instance, the Federal awarding agency 

shall decide on the appropriate award 

instrument (i.e., grant, cooperative 

agreement, or contract). The Federal 

Grant and Cooperative Agreement Act 

(31 U.S.C. 6301-08) governs the use of 

grants, cooperative agreements and 

contracts. A grant or cooperative 

agreement shall be used only when the 

principal purpose of a transaction is to 

accomplish a public purpose of support or stimulation authorized by Federal 

statute. The statutory criterion for 

choosing between grants and cooperati ve agreements is that for the latter, 

"substantial involvement is expected 

between the executive agency and the 

State, local government, or other re­ cipient when carrying out the activity 

contemplated in the agreement." Contracts shall be used when the principal 

purpose is acquisition of property or 

services for the direct benefit or use of 

the Federal Government. 

(b) Public Notice and Priority Setting. Federal awarding agencies shall 

notify the public of its intended funding priorities for discretionary grant 

programs, unless funding priorities are established by Federal statute. 

§ 2543.12 Forms for applying for Federal assistance. 

(a) Federal awarding agencies shall 

comply with the applicable report 

clearance requirements of 5 CFR part 

1320, "Controlling Paperwork Burdens on the Public," with regard to all 

forms used by the Federal awarding 

agency in place of or as a supplement 

to the Standard Form 424 (SF--424) se­ ries. 

(b) Applicants shall use the SF--424 

series or those forms and instructions 

prescribed by the Federal awarding 

agency. 

(c) For Federal programs covered by 

E.O. 12372, "Intergovernmental Review 

of Federal Programs," the applicant 

shall complete the appropriate sections 

of the SF--424 (Application for Federal 

Assistance) indicating whether the application was subject to review by the 

State Single Point of Contact (SPOC). 

The name and address of the SPOC for a particular State can be obtained from 

the Federal awarding agency or the 

Catalog of Federal Domestic Assistance. 

The SPOC shall advise the applicant 

whether the program for which application is made has been selected by that 

State for review. 

(d) Federal awarding agencies that do 

not use the SF--424 form should indicate whether the application is subject 

to review by the State under E.O. 12372. 

§ 2543.13 Debarment and suspension. 

Federal awarding agencies and re­ cipients shall comply with the non­ procurement debarment and suspension common rule implementing E.O.s 12549 

and 12689, "Debarment and Suspension." This common rule restricts subawards and contracts with certain parties that are debarred, suspended or otherwise excluded from or ineligible 

for participation in Federal assistance 

programs or activities. 

§ 2543.14 Special award conditions. 

If an applicant or recipient: 

(a) Has a history of poor performance, 

(b) Is not financially stable, 

(c) Has a management system that 

does not meet the standards prescribed 

in this Circular, 

(d) Has not conformed to the terms 

and conditions of a previous award, or 

(e) is not otherwise responsible, Federal awarding agencies may impose additional requirements as needed, provided that such applicant or recipient 

is notified in writing as to: the nature 

of the additional requirements, the rea­ son why the additional requirements are being imposed, the nature of the 

corrective action needed, the time allowed for completing the corrective ac­ tions, and the method for requesting 

reconsideration of the additional re­ quirements imposed. Any special con­ ditions shall be promptly removed once 

745 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2543.15 

the conditions that prompted them 

have been corrected. 

§ 2543.15 Metric system of measure­ ment. 

The Metric Conversion Act, as amended by the Omnibus Trade and 

Competitiveness Act (15 U.S.C. 205) declares that the metric system is the 

preferred measurement system for U.S. 

trade and commerce. The Act requires 

each Federal agency to establish a date or dates in consultation with the Secretary of Commerce, when the metric 

system of measurement will be used in 

the agency's procurements, grants, and 

other business-related activities. Metric implementation may take longer 

where the use of the system is initially 

impractical or likely to cause significant inefficiencies in the accomplishment of federally-funded activities. 

Federal awarding agencies shall follow 

the provisions of E.O. 12770, "Metric 

Usage in Federal Government Programs.'' 

§ 2543.16 Resource Conservation and 

Recovery Act. 

Under the Act Resource Conservation 

and Recovery Act (42 U.S.C. 6962), any 

State agency or agency of a political 

subdivision of a State which is using 

appropriated Federal funds must com­ ply with Section 6002. Section 6002 re­ quires that preference be given in procurement programs to the purchase of 

specific products containing recycled 

materials identified in guidelines developed by the Environmental Protection Agency (EPA) (40 CFR parts 247-

254). 

Accordingly, State and local institutions of higher education, hospitals, 

and non-profit organizations that re­ ceive direct Federal awards or other 

Federal funds shall give preference in 

their procurement programs funded 

with Federal funds to the purchase of 

recycled products pursuant to the EPA 

guidelines. 

§ 2543.17 Certifications and representations. 

Unless prohibited by statute or codified regulation, each Federal awarding 

agency is authorized and encouraged to 

allow recipients to submit certifications and representations required 

45 CFR Ch. XXV (10-1-12 Edition) 

by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual cer­ tifications and representations shall be 

signed by responsible officials with the 

authority to ensure recipients' compli­ ance with the pertinent requirements. 

Subpart C-Post-Award 

Requirements 

FINANCIAL AND PROGRAM MANAGEMENT 

§ 2543.20 Purpose of f"mancial and program management. 

Sections 2543.21 through 2543.25 prescribe standards for financial management systems, methods for making 

payments and rules for: satisfying cost 

sharing and matching requirements, 

accounting for program income, budget 

revision approvals, making audits, determining allowability of cost, and es­ tablishing fund availability. 

§ 2543.21 Standards for financial man• agement systems. 

(a) Federal awarding agencies shall 

require recipients to relate financial 

data to performance data and develop 

unit cost information whenever practical. 

(b) Recipients' financial management 

systems shall provide for the following: 

(1) Accurate, current and complete 

disclosure of the financial results of 

each federally-sponsored project or program in accordance with the reporting requirements set forth in §2543.51. 

If a Federal awarding agency requires 

reporting on an accrual basis from a re­ cipient that maintains its records on other than an accrual basis, the recipient shall not be required to establish an accrual accounting system. These 

recipients may develop such accrual 

data for its reports on the basis of an analysis of the documentation on hand. 

(2) Records that identify adequately 

the source and application of funds for 

federally-sponsored activities. These 

records shall contain information pertaining to Federal awards, authorizations, obligations, unobligated balances, assets, outlays, income and interest. 

(3) Effective control over and ac­ countability for all funds, property and 

746 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2543.22 

other assets. Recipients shall adequately safeguard all such assets and 

assure they are used solely for authorized purposes. 

(4) Comparison of outlays with budget amounts for each award. Whenever 

appropriate, financial information 

should be related to performance and 

unit cost data. 

(5) Written procedures to minimize 

the time elapsing between the transfer 

of funds to the recipient from the U.S. 

Treasury and the issuance or redemption of checks, warrants or payments 

by other means for program purposes 

by the recipient. To the extent that the 

provisions of the Cash Management Improvement Act (CMIA) (Pub. L. 101--453) 

govern, payment methods of State 

agencies, instrumentalities, and fiscal 

agents shall be consistent with CMIA 

Treasury-State Agreements or the 

CMIA default procedures codified at 31 

CFR part 205, "Withdrawal of Cash 

from the Treasury for Advances under 

Federal Grant and Other Programs." 

(6) Written procedures for determining the reasonableness, allocability 

and allowability of costs in accordance 

with the provisions of the applicable 

Federal cost principles and the terms 

and conditions of the award. 

(7) Accounting records including cost 

accounting records that are supported 

by source documentation. 

(c) Where the Federal Government 

guarantees or insures the repayment of 

money borrowed by the recipient, the 

Federal awarding agency, at its discretion, may require adequate bonding 

and insurance if the bonding and insurance requirements of the recipient are 

not deemed adequate to protect the interest of the Federal Government. 

(d) The Federal awarding agency may 

require adequate fidelity bond coverage 

where the recipient lacks sufficient 

coverage to protect the Federal Government's interest. 

(e) Where bonds are required in the 

situations described above, the bonds 

shall be obtained from companies holding certificates of authority as acceptable sureties, as prescribed in 31 CFR 

part 223, "Surety Companies Doing 

Business With the United States." 

§ 2543.22 Payment. 

(a) Payment methods shall minimize 

the time elapsing between the transfer 

of funds from the United States Treasury and the issuance or redemption of 

checks, warrants, or payment by other means by the recipients. Payment 

methods of State agencies or instrumentalities shall be consistent with 

Treasury-State CMIA agreements or default procedures codified at 31 CFR 

part 205. 

(b) Recipients are to be paid in advance, provided they maintain or demonstrate the willingness to maintain: 

(1) Written procedures that minimize 

the time elapsing between the transfer 

of funds and disbursement by the re­ cipient, and 

(2) Financial management systems 

that meet the standards for fund control and accountability as established 

in §2543.21. Cash advances to a recipient organization shall be limited to the 

m1mmum amounts needed and be 

timed to be in accordance with the ac­ tual, immediate cash requirements of 

the recipient organization in carrying 

out the purpose of the approved program or project. The timing and 

amount of cash advances shall be as close as is administratively feasible to 

the actual disbursements by the recipient organization for direct program or project costs and the proportionate 

share of any allowable indirect costs. 

(c) Whenever possible, advances shall 

be consolidated to cover anticipated 

cash needs for all awards made by the 

Federal awarding agency to the recipient. 

(1) Advance payment mechanisms include, but are not limited to, Treasury 

check and electronic funds transfer. 

(2) Advance payment mechanisms are subject to 31 CFR part 205. 

(3) Recipients shall be authorized to 

submit requests for advances and reimbursements at least monthly when 

electronic fund transfers are not used. 

(d) Requests for Treasury check ad­ vance payment shall be submitted on SF-270, "Request for Advance or Reimbursement," or other forms as may be 

authorized by 0MB. This form is not to 

be used when Treasury check advance 

payments are made to the recipient 

747 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2543.22 

automatically through the use of a predetermined payment schedule or if precluded by special Federal awarding 

agency instructions for electronic 

funds transfer. 

(e) Reimbursement is the preferred 

method when the requirements in paragraph (b) cannot be met. Federal 

awarding agencies may also use this 

method on any construction agreement, or if the major portion of the 

construction project is accomplished 

through private market financing or Federal loans, and the Federal assist­ ance constitutes a minor portion of the 

project. 

(1) When the reimbursement method 

is used, the Federal awarding agency 

shall make payment within 30 days 

after receipt of the billing, unless the 

billing is improper. 

(2) Recipients shall be authorized to 

submit request for reimbursement at 

least monthly when electronic funds 

transfers are not used. 

(f) If a recipient cannot meet the criteria for advance payments and the 

Federal awarding agency has determined that reimbursement is not feasible because the recipient lacks sufficient working capital, the Federal 

awarding agency may provide cash on a working capital advance basis. Under 

this procedure, the Federal awarding 

agency shall advance cash to the re­ cipient to cover its estimated disbursement needs for an initial period generally geared to the awardee's disbursing cycle. Thereafter, the Federal 

awarding agency shall reimburse the 

recipient for its actual cash disbursements. The working capital advance 

method of payment shall not be used 

for recipients unwilling or unable to 

provide timely advances to their subrecipient to meet the subrecipient's ac­ tual cash disbursements. 

(g) To the extent available, recipients shall disburse funds available from 

repayments to and interest earned on a revolving fund, program income, re­ bates, refunds, contract settlements, 

audit recoveries and interest earned on such funds before requesting additional 

cash payments. 

(h) Unless otherwise required by statute, Federal awarding agencies shall 

not withhold payments for proper 

45 CFR Ch. XXV (10-1-12 Edition) 

charges made by recipients at any time 

during the project period unless: 

(1) A recipient has failed to comply 

with the project objectives, the terms 

and conditions of the award, or Federal 

reporting requirements, or (2) The recipient or subrecipient is 

delinquent in a debt to the United 

States as defined in 0MB Circular A- 129, "Managing Federal Credit Programs." Under such conditions, the 

Federal awarding agency may, upon 

reasonable notice, inform the recipient 

that payments shall not be made for 

obligations incurred after a specified 

date until the conditions are corrected or the indebtedness to the Federal Government is liquidated. 

(i) Standards governing the use of 

banks and other institutions as depositories of funds advanced under awards are as follows: 

(1) Except for situations described in 

paragraph (i)(2), Federal awarding 

agencies shall not require separate depository accounts for funds provided to a recipient or establish any eligibility 

requirements for depositories for funds 

provided to a recipient. However, re­ cipients must be able to account for 

the receipt, obligation and expenditure 

of funds. 

(2) Advances of Federal funds shall be 

deposited and maintained in insured 

accounts whenever possible. 

(j) Consistent with the national goal 

of expanding the opportunities for 

women-owned and minority-owned 

business enterprises, recipients shall be 

encouraged to use women-owned and 

minority-owned banks (a bank which is 

owned at least 50 percent by women or minority group members). 

(k) Recipients shall maintain ad­ vances of Federal funds in interest 

bearing accounts, unless: 

(1) The recipient receives less than 

$120,000 in Federal awards per year. 

(2) The best reasonably available interest bearing account would not be ex­ pected to earn interest in excess of $250 

per year on Federal cash balances. 

(3) The depository would require an average or minimum balance so high 

that it would not be feasible within the 

expected Federal and non-Federal cash resources. 

(1) For those entities where CMIA 

and its implementing regulations do 

748 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2543.23 

not apply, interest earned on Federal 

advances deposited in interest bearing 

accounts shall be remitted annually to 

Department of Health and Human 

Services, Payment Management System, Rockville, MD 20852. Interest 

amounts up to $250 per year may be retained by the recipient for administrative expense. State universities and 

hospitals shall comply with CMIA, as it 

pertains to interest. If an entity subject to CMIA uses its own funds to pay 

pre-award costs for discretionary 

awards without prior written approval 

from the Federal awarding agency, it 

waives its right to recover the interest 

under CMIA. 

(m) Except as noted elsewhere in this 

Circular, only the following forms shall 

be authorized for the recipients in re­ questing advances and reimbursements. Federal agencies shall not require more than an original and two 

copies of these forms. 

(1) SF-270, Request for Advance or 

Reimbursement. Each Federal awarding agency shall adopt the SF-270 as a 

standard form for all nonconstruction 

programs when electronic funds transfer or predetermined advance methods are not used. Federal awarding agencies, however, have the option of using 

this form for construction programs in 

lieu of the SF-271, "Outlay Report and 

Request for Reimbursement for Construction Programs.'' 

(2) SF-271, Outlay Report and Request for Reimbursement for Construction Programs. Each Federal awarding 

agency shall adopt the SF-271 as the 

standard form to be used for requesting 

reimbursement for construction programs. However, a Federal awarding 

agency may substitute the SF-270 

when the Federal awarding agency determines that it provides adequate information to meet Federal needs. 

§ 2543.23 Cost sharing or matching. 

(a) All contributions, including cash 

and third party in-kind, shall be accepted as part of the recipient's cost 

sharing or matching when such con­ tributions meet all of the following criteria. 

(1) Are verifiable from the recipient's 

records. 

(2) Are not included as contributions 

for any other federally-assisted project or program. 

(3) Are necessary and reasonable for 

proper and efficient accomplishment of 

project or program objectives. 

(4) Are allowable under the applicable cost principles. 

(5) Are not paid by the Federal Government under another award, except 

where authorized by Federal statute to 

be used for cost sharing or matching. 

(6) Are provided for in the approved 

budget when required by the Federal 

awarding agency. 

(7) Conform to other provisions of 

this Circular, as applicable. 

(b) Unrecovered indirect costs may be 

included as part of cost sharing or matching only with the prior approval 

of the Federal awarding agency. 

(c) Values for recipient contributions 

of services and property shall be established in accordance with the applicable cost principles. If a Federal awarding agency authorizes recipients to donate buildings or land for construction/ 

facilities acquisition projects or longterm use, the value of the donated 

property for cost sharing or matching 

shall be the lesser of: 

(1) The certified value of the remaining life of the property recorded in the 

recipient's accounting records at the 

time of donation, or. (2) The current fair market value. 

However, when there is sufficient justification, the Federal awarding agency may approve the use of the current 

fair market value of the donated property, even if it exceeds the certified 

value at the time of donation to the 

project. 

(d) Volunteer services furnished by 

professional and technical personnel, 

consultants, and other skilled and un­ skilled labor may be counted as cost 

sharing or matching if the service is an integral and necessary part of an approved project or program. Rates for 

volunteer services shall be consistent 

with those paid for similar work in the 

recipient's organization. In those instances in which the required skills are not found in the recipient organization, 

rates shall be consistent with those 

paid for similar work in the labor mar­ ket in which the recipient competes for 

the kind of services involved. In either 

749 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2543.24 

case, paid fringe benefits that are reasonable, allowable, and allocable may 

be included in the valuation. 

(e) When an employer other than the 

recipient furnishes the services of an 

employee, these services shall be valued at the employee's regular rate of 

pay (plus an amount of fringe benefits 

that are reasonable, allowable, and allocable, but exclusive of overhead 

costs), provided these services are in 

the same skill for which the employee 

is normally paid. 

(f) Donated supplies may include 

such items as expendable equipment, 

office supplies, laboratory supplies or 

workshop and classroom supplies. 

Value assessed to donated supplies included in the cost sharing or matching 

share shall be reasonable and shall not 

exceed the fair market value of the 

property at the time of the donation. 

(g) The method used for determining 

cost sharing or matching for donated 

equipment, buildings and land for 

which title passes to the recipient may 

differ according to the purpose of the 

award: 

(1) If the purpose of the award is to 

assist the recipient in the acquisition 

of equipment, buildings or land, the 

total value of the donated property 

may be claimed as cost sharing or 

matching, or. 

(2) If the purpose of the award is to 

support activities that require the use 

of equipment, buildings or land, normally only depreciation or use charges 

for equipment and buildings may be 

made. However, the full value of equipment or other capital assets and fair 

rental charges for land may be allowed, 

provided that the Federal awarding 

agency has approved the charges. 

(h) The value of donated property 

shall be determined in accordance with 

the usual accounting policies of the re­ cipient, with the following qualifications. 

(1) The value of donated land and 

buildings shall not exceed its fair market value at the time of donation to 

the recipient as established by an independent appraiser (e.g., certified real 

property appraiser or General Services 

Administration representative) and 

certified by a responsible official of the 

recipient. 

45 CFR Ch. XXV (10-1-12 Edition) 

(2) The value of donated equipment 

shall not exceed the fair market value 

of equipment of the same age and condition at the time of donation. 

(3) The value of donated space shall 

not exceed the fair rental value of com­ parable space as established by an independent appraisal of comparable space 

and facilities in a privately-owned 

building in the same locality. 

(4) The value of loaned equipment 

shall not exceed its fair rental value. 

(5) The following requirements pertain to the recipient's supporting 

records for in-kind contributions from 

third parties. 

(i) Volunteer services shall be documented and, to the extent feasible, supported by the same methods used by 

the recipient for its own employees. 

(ii) The basis for determining the 

valuation for personal service, material, equipment, buildings and land 

shall be documented. 

§ 2543.24 Program income. 

(a) Federal awarding agencies shall 

apply the standards set forth in this 

section in requiring recipient organizations to account for program income 

related to projects financed in whole or in part with Federal funds. 

(b) Except as provided in paragraph 

(h) below, program income earned during the project period shall be retained 

by the recipient and, in accordance 

with Federal awarding agency regulations or the terms and conditions of 

the award, shall be used in one or more 

of the ways listed in the following: 

(1) Added to funds committed to the 

project by the Federal awarding agency 

and recipient and used to further eligible project or program objectives. 

(2) Used to finance the non-Federal 

share of the project or program. 

(3) Deducted from the total project or 

program allowable cost in determining 

the net allowable costs on which the 

Federal share of costs is based. 

(c) When an agency authorizes the 

disposition of program income as described in paragraph (b)(l) or (b)(2), 

program income in excess of any limits 

stipulated shall be used in accordance 

with paragraph (b)(3). 

(d) In the event that the Federal 

awarding agency does not specify in its 

750 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2543.25 

regulations or the terms and conditions of the award how program income 

is to be used, paragraph (b)(3) shall 

apply automatically to all projects or programs except research. For awards 

that support research, paragraph (b)(l) 

shall apply automatically unless the 

awarding agency indicates in the terms 

and conditions another alternative on the award or the recipient is subject to 

special award conditions, as indicated 

in § 2543.14. 

(e) Unless Federal awarding agency 

regulations or the terms and conditions of the award provide otherwise, 

recipients shall have no obligation to 

the Federal Government regarding program income earned after the end of 

the project period. 

(f) If authorized by Federal awarding 

agency regulations or the terms and 

conditions of the award, costs incident 

to the generation of program income 

may be deducted from gross income to 

determine program income, provided 

these costs have not been charged to 

the award. 

(g) Proceeds from the sale of property 

shall be handled in accordance with the 

requirements of the Property Standards. (See §2543.28 through §2543.36.) 

(h) Unless Federal awarding agency 

regulations or the terms and condition 

of the award provide otherwise, recipients shall have no obligation to the 

Federal Government with respect to 

program income earned from license 

fees and royalties for copyrighted ma­ terial, patents, patent applications, 

trademarks, and inventions produced 

under an award. However, Patent and 

Trademark Amendments (35 U.S.C. 18) 

apply to inventions made under an ex­ perimental, developmental, or research 

award. 

§ 2543.25 Revision of budget and program plans. 

(a) The budget plan is the financial 

expression of the project or program as approved during the award process. It 

may include either the Federal and 

non-Federal share, or only the Federal 

share, depending upon Federal awarding agency requirements. It shall be re­ lated to performance for program evaluation purposes whenever appropriate. 

(b) Recipients are required to report 

deviations from budget and program 

plans, and request prior approvals for 

budget and program plan revisions, in 

accordance with this section. 

(c) For nonconstruction awards, re­ cipients shall request prior approvals 

from Federal awarding agencies for one or more of the following program or budget related reasons: (1) Change in the scope or the objective of the project or program (even if 

there is no associated budget revision 

requiring prior written approval). 

(2) Change in a key person specified 

in the application or award document. 

(3) The absence for more than three 

months, or a 25 percent reduction in 

time devoted to the project, by the approved project director or principal investigator. 

(4) The need for additional Federal 

funding. 

(5) The transfer of amounts budgeted 

for indirect costs to absorb increases in 

direct costs, or vice versa, if approval 

is required by the Federal awarding 

agency. 

(6) The inclusion, unless waived by 

the Federal awarding agency, of costs 

that require prior approval in accord­ ance with 0MB Circular A-21, "Cost 

Principles for Institutions of Higher 

Education," 0MB Circular A-122, "Cost 

Principles for Non-Profit Organizations," or 45 CFR part 74 Appendix E, 

"Principles for Determining Costs Applicable to Research and Development 

Under Grants and Contracts With Hospitals," or 48 CFR part 31, "Contract 

Cost Principles and Procedures," as applicable. 

(7) The transfer of funds allotted for 

training allowances (direct payment to 

trainees) to other categories of ex­ pense. 

(8) Unless described in the application and funded in the approved 

awards, the subaward, transfer or con­ tracting out of any work under an award. This provision does not apply to 

the purchase of supplies, material, 

equipment or general support services. 

(d) No other prior approval requirements for specific items may be imposed unless a deviation has been approved by 0MB. 

(e) Except for requirements listed in 

paragraphs (c)(l) and (c)(4) of this sec­ tion, Federal awarding agencies are au­ thorized, at their option, to waive cost751 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2543.25 

related and administrative prior written approvals required by this Circular 

and 0MB Circulars A-21 and A-122. 

Such waivers may include authorizing 

recipients to do any one or more of the 

following: 

(1) Incur pre-award costs 90 calendar 

days prior to award or more than 90 

calendar days with the prior approval 

of the Federal awarding agency. All 

pre-award costs are incurred at the re­ cipient's risk (i.e., the Federal awarding agency is under no obligation to re­ imburse such costs if for any reason the recipient does not receive an award or if the award is less than anticipated 

and inadequate to cover such costs). 

(2) Initiate a one-time extension of 

the expiration date of the award of up 

to 12 months unless one or more of the 

following conditions apply. For one­ time extensions, the recipient must no­ tify the Federal awarding agency in 

writing with the supporting reasons and revised expiration date at least 10 

days before the expiration date specified in the award. This one-time extension may not be exercised merely for 

the purpose of using unobligated bal­ ances. 

(i) The terms and conditions of award 

prohibit the extension. 

(ii) The extension requires additional 

Federal funds. 

(iii) The extension involves any 

change in the approved objectives or scope of the project. 

(3) Carry forward unobligated bal­ ances to subsequent funding periods. 

(4) For awards that support research, 

unless the Federal awarding agency 

provides otherwise in the award or in 

the agency's regulations, the prior approval requirements described in paragraph (e) are automatically waived 

(i.e., recipients need not obtain such 

prior approvals) unless one of the con­ ditions included in paragraph (e)(2) applies. 

(f) The Federal awarding agency 

may, at its option, restrict the transfer 

of funds among direct cost categories or programs, functions and activities 

for awards in which the Federal share 

of the project exceeds $100,000 and the 

cumulative amount of such transfers 

exceeds or is expected to exceed 10 percent of the total budget as last approved by the Federal awarding agen45 CFR Ch. XXV (10-1-12 Edition) 

cy. No Federal awarding agency shall 

permit a transfer that would cause any 

Federal appropriation or part thereof 

to be used for purposes other than 

those consistent with the original intent of the appropriation. 

(g) All other changes to nonconstruction budgets, except for the changes described in paragraph (j), do not require 

prior approval. 

(h) For construction awards, recipients shall request prior written approval promptly from Federal awarding 

agencies for budget revisions whenever 

(1), (2) or (3) apply. 

(1) The revision results from changes 

in the scope or the objective of the 

project or program. 

(2) The need arises for additional 

Federal funds to complete the project. 

(3) A revision is desired which involves specific costs for which prior 

written approval requirements may be 

imposed consistent with applicable 

0MB cost principles listed in Section 

§2543.27. 

(i) No other prior approval requirements for specific items may be imposed unless a deviation has been approved by 0MB. 

(j) When a Federal awarding agency 

makes an award that provides support 

for both construction and nonconstruction work, the Federal awarding agency may require the recipient to request 

prior approval from the Federal awarding agency before making any fund or budget transfers between the two types 

of work supported. 

(k) For both construction and nonconstruction awards, Federal awarding 

agencies shall require recipients to no­ tify the Federal awarding agency in 

writing promptly whenever the amount 

of Federal authorized funds is expected 

to exceed the needs of the recipient for 

the project period by more than $5,000 

or five percent of the Federal award, 

whichever is greater. This notification 

shall not be required if an application 

for additional funding is submitted for a continuation award. 

(1) When requesting approval for 

budget revisions, recipients shall use the budget forms that were used in the 

application unless the Federal awarding agency indicates a letter of request 

suffices. 

752 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2543.31 

(m) Within 30 calendar days from the 

date of receipt of the request for budget revisions, Federal awarding agencies 

shall review the request and notify the 

recipient whether the budget revisions 

have been approved. If the revision is 

still under consideration at the end of 

30 calendar days, the Federal awarding 

agency shall inform the recipient in 

writing of the date when the recipient 

may expect the decision. 

§ 2543.26 Non-Federal audits. 

(a) Recipients and subrecipients that are institutions of higher education or other non-profit organizations (including hospitals) shall be subject to the 

audit requirements contained in the 

Single Audit Act Amendments of 1996 

(31 U.S.C. 7501-7507) and revised 0MB 

Circular A-133, "Audits of States, 

Local Governments, and Non-Profit Organizations." 

(b) State and local governments shall 

be subject to the audit requirements 

contained in the Single Audit Act 

Amendments of 1996 (31 U.S.C. 7501- 7507) and revised 0MB Circular A-133, 

"Audits of States, Local Governments, 

and Non-Profit Organizations." 

(c) For-profit hospitals not covered 

by the audit provisions of revised 0MB 

Circular A-133 shall be subject to the 

audit requirements of the Federal 

awarding agencies. 

(d) Commercial organizations shall 

be subject to the audit requirements of 

the Federal awarding agency or the 

prime recipient as incorporated into 

the award document. 

[60 FR 13055, Mar. 10, 1995, as amended at 62 

FR 45939, 45947, Aug. 29, 1997] 

§ 2543.27 Allowable costs. 

For each kind of recipient, there is a set of Federal principles for determining allowable costs. Allowability of 

costs shall be determined in accord­ ance with the cost principles applicable 

to the entity incurring the costs. Thus, 

allowability of costs incurred by State, 

local or federally-recognized Indian 

tribal governments is determined in 

accordance with the provisions of 0MB 

Circular A-87, "Cost Principles for 

State and Local Governments." The allowability of costs incurred by nonprofit organizations is determined in 

accordance with the provisions of 0MB 

Circular A-122, "Cost Principles for 

Non-Profit Organizations." The allowability of costs incurred by institutions 

of higher education is determined in 

accordance with the provisions of 0MB 

Circular A-21, "Cost Principles for 

Educational Institutions." The allowability of costs incurred by hospitals is 

determined in accordance with the provisions of Appendix E of 45 CFR part 74, 

"Principles for Determining Costs Applicable to Research and Development 

Under Grants and Contracts with Hospitals." The allowability of costs incurred by commercial organizations 

and those non-profit organizations listed in Attachment C to Circular A-122 is 

determined in accordance with the provisions of the Federal Acquisition Regulation (FAR) at 48 CFR part 31. 

§ 2543.28 Period of availability of 

funds. 

Where a funding period is specified, a recipient may charge to the grant only 

allowable costs resulting from obligations incurred during the funding period and any pre-award costs authorized by the Federal awarding agency. 

PROPERTY STANDARDS 

§ 2543.30 Purpose of property standards. 

Sections 2543.31 through 2543.37 set 

forth uniform standards governing 

management and disposition of property furnished by the Federal Government whose cost was charged to a project supported by a Federal award. 

Federal awarding agencies shall re­ quire recipients to observe these standards under awards and shall not impose 

additional requirements, unless specifically required by Federal statute. The 

recipient may use its own property 

management standards and procedures 

provided it observes the provisions of 

§ 2543.31 through § 2543.37. 

§ 2543.31 Insurance coverage. 

Recipients shall, at a minimum, provide the equivalent insurance coverage 

for real property and equipment acquired with Federal funds as provided 

to property owned by the recipient. 

Federally-owned property need not be 

insured unless required by the terms 

and conditions of the award. 

753 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2543.32 

§ 2543.32 Real property. 

Each Federal awarding agency shall 

prescribe requirements for recipients 

concerning the use and disposition of 

real property acquired in whole or in 

part under awards. Unless otherwise 

provided by statute, such requirements, at a minimum, shall contain 

the following: 

(a) Title to real property shall vest in 

the recipient subject to the condition 

that the recipient shall use the real 

property for the authorized purpose of 

the project as long as it is needed and 

shall not encumber the property without approval of the Federal awarding 

agency. 

(b) The recipient shall obtain written 

approval by the Federal awarding agency for the use of real property in other 

federally-sponsored projects when the 

recipient determines that the property 

is no longer needed for the purpose of 

the original project. Use in other 

projects shall be limited to those under 

federally-sponsored projects (i.e., 

awards) or programs that have purposes consistent with those authorized 

for support by the Federal awarding 

agency. 

( c) When the real property is no 

longer needed as provided in paragraphs (a) and (b), the recipient shall 

request disposition instructions from 

the Federal awarding agency or its successor Federal awarding agency. The 

Federal awarding agency shall observe 

one or more of the following disposition instructions. 

(1) The recipient may be permitted to 

retain title without further obligation 

to the Federal Government after it 

compensates the Federal Government 

for that percentage of the current fair 

market value of the property attributable to the Federal participation in 

the project. 

(2) The recipient may be directed to 

sell the property under guidelines provided by the Federal awarding agency 

and pay the Federal Government for 

that percentage of the current fair 

market value of the property attributable to the Federal participation in 

the project (after deducting actual and 

reasonable selling and fix-up expenses, 

if any, from the sales proceeds). When 

the recipient is authorized or required 

to sell the property, proper sales proce45 CFR Ch. XXV (10-1-12 Edition) 

dures shall be established that provide 

for competition to the extent practicable and result in the highest possible return. 

(3) The recipient may be directed to 

transfer title to the property to the 

Federal Government or to an eligible 

third party provided that, in such 

cases, the recipient shall be entitled to 

compensation for its attributable percentage of the current fair market 

value of the property. 

§ 2543.33 Federally-owned and exempt 

property. 

(a) Federally-owned property. 

(1) Title to federally-owned property 

remains vested in the Federal Government. Recipients shall submit annually 

an inventory listing of federally-owned 

property in their custody to the Federal awarding agency. Upon completion 

of the award or when the property is no 

longer needed, the recipient shall re­ port the property to the Federal awarding agency for further Federal agency 

utilization. 

(2) If the Federal awarding agency 

has no further need for the property, it 

shall be declared excess and reported to 

the General Services Administration, 

unless the Federal awarding agency 

has statutory authority to dispose of 

the property by alternative methods 

(e.g., the authority provided by the 

Federal Technology Transfer Act (15 

U.S.C. 3710(!)) to donate research equipment to educational and non-profit organizations in accordance with E.O. 

12821, "Improving Mathematics and 

Science Education in Support of the 

National Education Goals"). Appropriate instructions shall be issued to 

the recipient by the Federal awarding 

agency. 

(b) Exempt property. When statutory 

authority exists, the Federal awarding 

agency has the option to vest title to 

property acquired with Federal funds 

in the recipient without further obligation to the Federal Government and 

under conditions the Federal awarding 

agency considers appropriate. Such 

property is "exempt property." Should 

a Federal awarding agency not establish conditions, title to exempt property upon acquisition shall vest in the 

recipient without further obligation to 

the Federal Government. 

754 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2543.34 

§ 2543.34 Equipment. 

(a) Title to equipment acquired by a recipient with Federal funds shall vest 

in the recipient, subject to conditions 

of this section. 

(b) The recipient shall not use equipment acquired with Federal funds to 

provide services to non-Federal outside 

organizations for a fee that is less than 

private companies charge for equivalent services, unless specifically authorized by Federal statute, for as long as the Federal Government retains an interest in the equipment. 

(c) The recipient shall use the equipment in the project or program for 

which it was acquired as long as needed, whether or not the project or program continues to be supported by Federal funds and shall not encumber the 

property without approval of the Federal awarding agency. When no longer 

needed for the original project or program, the recipient shall use the equipment in connection with its other federally-sponsored activities, in the following order of priority: 

(1) Activities sponsored by the Federal awarding agency which funded the 

original project; then 

(2) activities sponsored by other Federal awarding agencies. 

(d) During the time that equipment 

is used on the project or program for 

which it was acquired, the recipient 

shall make it available for use on other 

projects or programs if such other use 

will not interfere with the work on the 

project or program for which the equipment was originally acquired. First 

preference for such other use shall be 

given to other projects or programs 

sponsored by the Federal awarding 

agency that financed the equipment; 

second preference shall be given to 

projects or programs sponsored by 

other Federal awarding agencies. If the 

equipment is owned by the Federal 

Government, use on other activities 

not sponsored by the Federal Government shall be permissible if authorized 

by the Federal awarding agency. User 

charges shall be treated as program income. 

(e) When acqu1rmg replacement 

equipment, the recipient may use the 

equipment to be replaced as trade-in or sell the equipment and use the proceeds to offset the costs of the replacement equipment subject to the approval of the Federal awarding agency. 

(f) The recipient's property management standards for equipment acquired 

with Federal funds and federally-owned 

equipment shall include all of the following: 

(1) Equipment records shall be maintained accurately and shall include the 

following information. 

(i) A description of the equipment. 

(ii) Manufacturer's serial number, 

model number, Federal stock number, 

national stock number, or other identification number. 

(iii) Source of the equipment, including the award number. 

(iv) Whether title vests in the recipient or the Federal Government. 

(v) Acquisition date (or date re­ ceived, if the equipment was furnished 

by the Federal Government) and cost. 

(vi) Information from which one can 

calculate the percentage of Federal 

participation in the cost of the equipment (not applicable to equipment furnished by the Federal Government). 

(vii) Location and condition of the 

equipment and the date the information was reported. 

(viii) Unit acquisition cost. 

(ix) Ultimate disposition data, including date of disposal and sales price 

or the method used to determine current fair market value where a recipient compensates the Federal awarding 

agency for its share. 

(2) Equipment owned by the Federal 

Government shall be identified to indicate Federal ownership. 

(3) A physical inventory of equipment 

shall be taken and the results rec­ onciled with the equipment records at 

least once every two years. Any differences between quantities determined by the physical inspection and 

those shown in the accounting records 

shall be investigated to determine the causes of the difference. The recipient 

shall, in connection with the inventory, verify the existence, current utilization, and continued need for the 

equipment. 

(4) A control system shall be in effect 

to insure adequate safeguards to prevent loss, damage, or theft of the 

equipment. Any loss, damage, or theft 

of equipment shall be investigated and 

fully documented; if the equipment was 

755 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2543.35 

owned by the Federal Government, the 

recipient shall promptly notify the 

Federal awarding agency. 

(5) Adequate maintenance procedures 

shall be implemented to keep the 

equipment in good condition. 

(6) Where the recipient is authorized or required to sell the equipment, prop­ er sales procedures shall be established 

which provide for competition to the 

extent practicable and result in the 

highest possible return. 

(g) When the recipient no longer 

needs the equipment, the equipment 

may be used for other activities in ac­ cordance with the following standards. 

For equipment with a current per unit 

fair market value of $5,000 or more, the 

recipient may retain the equipment for 

other uses provided that compensation 

is made to the original Federal awarding agency or its successor. The 

amount of compensation shall be com­ puted by applying the percentage of 

Federal participation in the cost of the 

original project or program to the cur­ rent fair market value of the equipment. If the recipient has no need for 

the equipment, the recipient shall re­ quest disposition instructions from the 

Federal awarding agency. The Federal 

awarding agency shall determine 

whether the equipment can be used to 

meet the agency's requirements. If no requirement exists within that agency, 

the availability of the equipment shall 

be reported to the General Services Administration by the Federal awarding 

agency to determine whether a requirement for the equipment exists in other 

Federal agencies. The Federal awarding agency shall issue instructions to 

the recipient no later than 120 calendar 

days after the recipient's request and 

the following procedures shall govern. 

(1) If so instructed or if disposition 

instructions are not issued within 120 

calendar days after the recipient's re­ quest, the recipient shall sell the 

equipment and reimburse the Federal 

awarding agency an amount computed 

by applying to the sales proceeds the 

percentage of Federal participation in 

the cost of the original project or program. However, the recipient shall be 

permitted to deduct and retain from 

the Federal share $500 or ten percent of 

the proceeds, whichever is less, for the 

45 CFR Ch. XXV (10-1-12 Edition) 

recipient's selling and handling ex­ penses. 

(2) If the recipient is instructed to 

ship the equipment elsewhere, the re­ cipient shall be reimbursed by the Federal Government by an amount which 

is computed by applying the percentage of the recipient's participation in 

the cost of the original project or program to the current fair market value 

of the equipment, plus any reasonable 

shipping or interim storage costs incurred. 

(3) If the recipient is instructed to 

otherwise dispose of the equipment, the 

recipient shall be reimbursed by the 

Federal awarding agency for such costs 

incurred in its disposition. 

(4) The Federal awarding agency may reserve the right to transfer the title 

to the Federal Government or to a third party named by the Federal Government when such third party is otherwise eligible under existing statutes. 

Such transfer shall be subject to the 

following standards. 

(i) The equipment shall be appropriately identified in the award or otherwise made known to the recipient in 

writing. 

(ii) The Federal awarding agency 

shall issue disposition instructions 

within 120 calendar days after receipt 

of a final inventory. The final inventory shall list all equipment acquired 

with grant funds and federally-owned 

equipment. If the Federal awarding 

agency fails to issue disposition instructions within the 120 calendar day 

period, the recipient shall apply the 

standards of this section, as appropriate. 

(iii) When the Federal awarding 

agency exercises its right to take title, 

the equipment shall be subject to the 

provisions for federally-owned equipment. 

§ 2543.35 Supplies and other expendable property. 

(a) Title to supplies and other ex­ pendable property shall vest in the re­ cipient upon acquisition. If there is a residual inventory of unused supplies 

exceeding $5,000 in total aggregate 

value upon termination or completion 

of the project or program and the supplies are not needed for any other federally-sponsored project or program, 

756 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2543.36 

the recipient shall retain the supplies 

for use on non-Federal sponsored ac­ tivities or sell them, but shall, in either case, compensate the Federal Government for its share. The amount of 

compensation shall be computed in the same manner as for equipment. 

(b) The recipient shall not use supplies acquired with Federal funds to 

provide services to non-Federal outside 

organizations for a fee that is less than 

private companies charge for equivalent services, unless specifically au­ thorized by Federal statute as long as the Federal Government retains an interest in the supplies. 

§ 2543.36 Intangible property. 

(a) The recipient may copyright any 

work that is subject to copyright and was developed, or for which ownership was purchased, under an award. The 

Federal awarding agency(ies) reserve a royalty-free, nonexclusive and irrevocable right to reproduce, publish, or otherwise use the work for Federal purposes, and to authorize others to do so. (b) Recipients are subject to applicable regulations governing patents and 

inventions, including government-wide 

regulations issued by the Department 

of Commerce at 37 CFR part 401, 

"Rights to Inventions Made by Nonprofit Organizations and Small Busi­ ness Firms Under Government Grants, 

Contracts and Cooperative Agreements." 

(c) The Federal Government has the 

right to: 

(1) Obtain, reproduce, publish or otherwise use the data first produced 

under an award; and 

(2) Authorize others to receive, reproduce, publish, or otherwise use such 

data for Federal purposes. 

(d)(l) In addition, in response to a Freedom of Information Act (FOIA) re­ quest for research data relating to published research findings produced under an award that were used by the Federal 

Government in developing an agency 

action that has the force and effect of 

law, the Federal awarding agency shall 

request, and the recipient shall provide, within a reasonable time, the re­ search data so that they can be made 

available to the public through the procedures established under the FOIA. If 

the Federal awarding agency obtains 

the research data solely in response to a FOIA request, the agency may charge 

the requester a reasonable fee equaling 

the full incremental cost of obtaining 

the research data. This fee should re­ flect costs incurred by the agency, the 

recipient, and applicable subrecipients. 

This fee is in addition to any fees the 

agency may assess under the FOIA (5 

U.S.C. 552(a)(4)(A)). 

(2) The following definitions apply 

for purposes of this paragraph (d): 

(i) Research data is defined as the re­ corded factual material commonly ac­ cepted in the scientific community as necessary to validate research findings, 

but not any of the following: preliminary analyses, drafts of scientific papers, plans for future research, peer re­ views, or communications with colleagues. This "recorded" material ex­ cludes physical objects (e.g., laboratory 

samples). Research data also do not include: 

(A) Trade secrets, commercial information, materials necessary to be held 

confidential by a researcher until they are published, or similar information 

which is protected under law; and 

(B) Personnel and medical information and similar information the disclosure of which would constitute a clearly unwarranted invasion of personal privacy, such as information that 

could be used to identify a particular 

person in a research study. 

(ii) Published is defined as either 

when: 

(A) Research findings are published 

in a peer-reviewed scientific or technical journal; or (B) A Federal agency publicly and officially cites the research findings in 

support of an agency action that has 

the force and effect oflaw. 

(iii) Used by the Federal Government in 

developing an agency action that has the 

force and effect of law is defined as when an agency publicly and officially cites 

the research findings in support of an agency action that has the force and 

effect oflaw. 

(3) The requirements set forth in 

paragraph (d)(l) of this section do not 

apply to commercial organizations. 

(e) Title to intangible property and 

debt instruments acquired under an award or subaward vests upon acquisition in the recipient. The recipient 

757 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2543.37 

shall use that property for the originally-authorized purpose, and the re­ cipient shall not encumber the property without approval of the Federal 

awarding agency. When no longer needed for the originally authorized purpose, disposition of the intangible property shall occur in accordance with the 

provisions of paragraph §2543.34 (g). 

[60 FR 13055, Mar. 10, 1995, as amended at 65 

FR 53609, Sept. 5, 2000] 

§ 2543.37 Property trust relationship. 

Real property, equipment, intangible 

property and debt instruments that are acquired or improved with Federal 

funds shall be held in trust by the re­ cipient as trustee for the beneficiaries 

of the project or program under which 

the property was acquired or improved. 

Agencies may require recipients to 

record liens or other appropriate no­ tices of record to indicate that personal or real property has been ac­ quired or improved with Federal funds 

and that use and disposition conditions 

apply to the property. 

PROCUREMENT STANDARDS 

§ 2543.40 Purpose of procurement 

standards. 

Sections § 2543.41 through § 2543.48 set 

forth standards for use by recipients in 

establishing procedures for the procurement of supplies and other expendable property, equipment, real property 

and other services with Federal funds. 

These standards are furnished to en­ sure that such materials and services are obtained in an effective manner and in compliance with the provisions 

of applicable Federal statutes and ex­ ecutive orders. No additional procurement standards or requirements shall 

be imposed by the Federal awarding 

agencies upon recipients, unless specifically required by Federal statute or executive order or approved by 0MB. 

§ 2543.41 Recipient responsibilities. 

The standards contained in this sec­ tion do not relieve the recipient of the 

contractual responsibilities ar1smg 

under its contract(s). The recipient is 

the responsible authority, without re­ course to the Federal awarding agency, 

regarding the settlement and satisfaction of all contractual and administra45 CFR Ch. XXV (10-1-12 Edition) 

tive issues arising out of procurements 

entered into in support of an award or other agreement. This includes disputes, claims, protests of award, source evaluation or other matters of a con­ tractual nature. Matters concerning 

violation of statute are to be referred 

to such Federal, State or local authority as may have proper jurisdiction. 

§ 2543.42 Codes of conduct. 

The recipient shall maintain written 

standards of conduct governing the 

performance of its employees engaged 

in the award and administration of 

contracts. No employee, officer, or agent shall participate in the selection, 

award, or administration of a contract 

supported by Federal funds if a real or apparent conflict of interest would be 

involved. Such a conflict would arise 

when the employee, officer, or agent, 

any member of his or her immediate 

family, his or her partner, or an organization which employs or is about to 

employ any of the parties indicated 

herein, has a financial or other interest 

in the firm selected for an award. The 

officers, employees, and agents of the 

recipient shall neither solicit nor ac­ cept gratuities, favors, or anything of 

monetary value from contractors, or parties to subagreements. However, re­ cipients may set standards for situations in which the financial interest is 

not substantial or the gift is an unso­ licited item of nominal value. The 

standards of conduct shall provide for 

disciplinary actions to be applied for 

violations of such standards by officers, employees, or agents of the re­ cipient. 

§ 2543.43 Competition. 

All procurement transactions shall 

be conducted in a manner to provide, 

to the maximum extent practical, open 

and free competition. The recipient 

shall be alert to organizational con­ flicts of interest as well as noncompetitive practices among contractors that 

may restrict or eliminate competition or otherwise restrain trade. In order to ensure objective contractor perform­ ance and eliminate unfair competitive 

advantage, contractors that develop or draft specifications, requirements, 

statements of work, invitations for 

bids and/or requests for proposals shall 

758 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2543.44 

be excluded from competing for such 

procurements. Awards shall be made to 

the bidder or offeror whose bid or offer 

is responsive to the solicitation and is 

most advantageous to the recipient, 

price, quality and other factors considered. Solicitations shall clearly set 

forth all requirements that the bidder or offeror shall fulfill in order for the 

bid or offer to be evaluated by the re­ cipient. Any and all bids or offers may 

be rejected when it is in the recipient's 

interest to do so. 

§ 2543.44 Procurement procedures. 

(a) All recipients shall establish written procurement procedures. These 

procedures shall provide for, at a minimum, that: 

(1) Recipients avoid purchasing un­ necessary i terns, 

(2) Where appropriate, an analysis is 

made of lease and purchase alternatives to determine which would be 

the most economical and practical procurement for the Federal Government, 

and 

(3) Solicitations for goods and serv­ ices provide for all of the following: 

(i) A clear and accurate description 

of the technical requirements for the 

material, product or service to be procured. In competitive procurements, 

such a description shall not contain 

features which unduly restrict com­ petition. 

(ii) Requirements which the bidder/ 

offeror must fulfill and all other factors to be used in evaluating bids or proposals. 

(iii) A description, whenever practicable, of technical requirements in 

terms of functions to be performed or performance required, including the 

range of acceptable characteristics or minimum acceptable standards. 

(iv) The specific features of "brand name or equal" descriptions that bidders are required to meet when such 

items are included in the solicitation. 

(v) The acceptance, to the extent 

practicable and economically feasible, 

of products and services dimensioned in 

the metric system of measurement. 

(vi) Preference, to the extent practicable and economically feasible, for 

products and services that conserve natural resources and protect the environment and are energy efficient. 

(b) Positive efforts shall be made by 

recipients to utilize small businesses, 

minority-owned firms, and women's 

business enterprises, whenever possible. Recipients of Federal awards 

shall take all of the following steps to 

further this goal. 

(1) Ensure that small businesses, minority-owned firms, and women's busi­ ness enterprises are used to the fullest 

extent practicable. 

(2) Make information on forthcoming 

opportunities available and arrange 

time frames for purchases and con­ tracts to encourage and facilitate participation by small businesses, minority-owned firms, and women's business 

enterprises. 

(3) Consider in the contract process 

whether firms competing for larger 

contracts intend to subcontract with 

small businesses, minority-owned 

firms, and women's business enterprises. 

(4) Encourage contracting with con­ sortiums of small businesses, minorityowned firms and women's business en­ terprises when a contract is too large 

for one of these firms to handle individually. 

(5) Use the services and assistance, as appropriate, of such organizations as the Small Business Administration and 

the Department of Commerce's Minority Business Development Agency in 

the solicitation and utilization of 

small businesses, minority-owned firms 

and women's business enterprises. 

(c) The type of procuring instruments 

used (e.g., fixed price contracts, cost 

reimbursable contracts, purchase or­ ders, and incentive contracts) shall be 

determined by the recipient but shall 

be appropriate for the particular procurement and for promoting the best 

interest of the program or project involved. The "cost-plus-a-percentage-ofcost" or "percentage of construction 

cost" methods of contracting shall not 

be used. 

(d) Contracts shall be made only with 

responsible contractors who possess 

the potential ability to perform suc­ cessfully under the terms and conditions of the proposed procurement. 

Consideration shall be given to such 

matters as contractor integrity, record 

of past performance, financial and 

technical resources or accessibility to 

759 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2543.45 

other necessary resources. In certain 

circumstances, contracts with certain 

parties are restricted by agencies' implementation of E.O.s 12549 and 12689, 

"Debarment and Suspension." 

(e) Recipients shall, on request, make 

available for the Federal awarding 

agency, pre-award review and procurement documents, such as request for 

proposals or invitations for bids, independent cost estimates, etc., when any 

of the following conditions apply. 

(1) A recipient's procurement procedures or operation fails to comply with 

the procurement standards in the Federal awarding agency's implementation 

of this Circular. 

(2) The procurement is expected to 

exceed the small purchase threshold 

fixed at 41 U.S.C. 403 (11) (currently 

$25,000) and is to be awarded without 

competition or only one bid or offer is 

received in response to a solicitation. 

(3) The procurement, which is ex­ pected to exceed the small purchase 

threshold, specifies a "brand name" 

product. 

(4) The proposed award over the 

small purchase threshold is to be 

awarded to other than the apparent 

low bidder under a sealed bid procurement. 

(5) A proposed contract modification 

changes the scope of a contract or in­ creases the contract amount by more than the amount of the small purchase 

threshold. 

§ 2543.45 Cost and price analysis. 

Some form of cost or price analysis 

shall be made and documented in the 

procurement files in connection with 

every procurement action. Price analysis may be accomplished in various 

ways, including the comparison of 

price quotations submitted, market 

prices and similar indicia, together 

with discounts. Cost analysis is the re­ view and evaluation of each element of 

cost to determine reasonableness, 

allocability and allowability. 

§ 2543.46 Procurement records. 

Procurement records and files for 

purchases in excess of the small purchase threshold shall include the following at a minimum: 

(a) Basis for contractor selection; 

45 CFR Ch. XXV (10-1-12 Edition) 

(b) Justification for lack of competition when competitive bids or offers are not obtained; and 

(c) Basis for award cost or price. 

§2543.47 Contract administration. 

A system for contract administration 

shall be maintained to ensure con­ tractor conformance with the terms, 

conditions and specifications of the 

contract and to ensure adequate and 

timely follow up of all purchases. Recipients shall evaluate contractor performance and document, as appropriate, whether contractors have met 

the terms, conditions and specifications of the contract. 

§ 2543.48 Contract provisions. 

The recipient shall include, in addition to provisions to define a sound and 

complete agreement, the following provisions in all contracts. The following 

provisions shall also be applied to subcontracts. 

(a) Contracts in excess of the small 

purchase threshold shall contain con­ tractual provisions or conditions that 

allow for administrative, contractual, or legal remedies in instances in which a contractor violates or breaches the 

contract terms, and provide for such 

remedial actions as may be appropriate. 

(b) All contracts in excess of the 

small purchase threshold shall contain 

suitable provisions for termination by 

the recipient, including the manner by 

which termination shall be effected 

and the basis for settlement. In addition, such contracts shall describe con­ ditions under which the contract may 

be terminated for default as well as conditions where the contract may be 

terminated because of circumstances 

beyond the control of the contractor. 

(c) Except as otherwise required by 

statute, an award that requires the 

contracting (or subcontracting) for 

construction or facility improvements 

shall provide for the recipient to follow 

its own requirements relating to bid 

guarantees, performance bonds, and 

payment bonds unless the construction 

contract or subcontract exceeds 

$100,000. For those contracts or subcontracts exceeding $100,000, the Federal awarding agency may accept the 

bonding policy and requirements of the 

760 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2543.51 

recipient, provided the Federal awarding agency has made a determination 

that the Federal Government's interest 

is adequately protected. If such a determination has not been made, the 

minimum requirements shall be as follows. 

(1) A bid guarantee from each bidder 

equivalent to five percent of the bid 

price. The "bid guarantee" shall con­ sist of a firm commitment such as a bid bond, certified check, or other ne­ gotiable instrument accompanying a bid as assurance that the bidder shall, 

upon acceptance of his bid, execute 

such contractual documents as may be 

required within the time specified. 

(2) A performance bond on the part of 

the contractor for 100 percent of the 

contract price. A "performance bond" 

is one executed in connection with a contract to secure fulfillment of all the 

contractor's obligations under such 

contract. 

(3) A payment bond on the part of the 

contractor for 100 percent of the con­ tract price. A "payment bond" is one executed in connection with a contract 

to assure payment as required by statute of all persons supplying labor and 

material in the execution of the work 

provided for in the contract. 

(4) Where bonds are required in the 

situations described herein, the bonds 

shall be obtained from companies holding certificates of authority as acceptable sureties pursuant to 31 CFR part 

223, "Surety Companies Doing Business 

with the United States." 

(d) All negotiated contracts (except 

those for less than the small purchase 

threshold) awarded by recipients shall 

include a provision to the effect that 

the recipient, the Federal awarding 

agency, the Comptroller General of the 

United States, or any of their duly au­ thorized representatives, shall have ac­ cess to any books, documents, papers 

and records of the contractor which are directly pertinent to a specific program for the purpose of making audits, 

examinations, excerpts and transcriptions. 

(e) All contracts, including small 

purchases, awarded by recipients and 

their contractors shall contain the procurement provisions of Appendix A to 

this Circular, as applicable. 

REPORTS AND RECORDS 

§ 2543.50 Purpose of reports and 

records. 

Sections § 2543.51 through § 2543.53 set 

forth the procedures for monitoring 

and reporting on the recipient's financial and program performance and the 

necessary standard reporting forms. 

They also set forth record retention re­ quirements. 

§ 2543.51 Monitoring and reporting 

program performance. 

(a) Recipients are responsible for 

managing and monitoring each project, 

program, subaward, function or activity supported by the award. Recipients 

shall monitor subawards to ensure subrecipients have met the audit requirements as delineated in Section §2543.26. 

(b) The Federal awarding agency 

shall prescribe the frequency with 

which the performance reports shall be 

submitted. Except as provided in paragraph § 2543.51(0, performance reports 

shall not be required more frequently 

than quarterly or, less frequently than 

annually. Annual reports shall be due 

90 calendar days after the grant year; 

quarterly or semi-annual reports shall 

be due 30 days after the reporting period. The Federal awarding agency may 

require annual reports before the anniversary dates of multiple year awards 

in lieu of these requirements. The final 

performance reports are due 90 calendar days after the expiration or termination of the award. 

(c) If inappropriate, a final technical or performance report shall not be re­ quired a~er completion of the project. 

(d) When required, performance re­ ports shall generally contain, for each 

award, brief information on each of the 

following. 

(1) A comparison of actual accom­ plishments with the goals and objectives established for the period, the 

findings of the investigator, or both. 

Whenever appropriate and the output 

of programs or projects can be readily 

quantified, such quantitative data 

should be related to cost data for com­ putation of unit costs. 

(2) Reasons why established goals were not met, if appropriate. 

(3) Other pertinent information including, when appropriate, analysis 

761 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2543.52 

and explanation of cost overruns or high unit costs. 

(e) Recipients shall not be required to 

submit more than the original and two 

copies of performance reports. 

(f) Recipients shall immediately no­ tify the Federal awarding agency of developments that have a significant impact on the award-supported activities. 

Also, notification shall be given in the case of problems, delays, or adverse 

conditions which materially impair the 

ability to meet the objectives of the 

award. This notification shall include a statement of the action taken or con­ templated, and any assistance needed 

to resolve the situation. 

(g) Federal awarding agencies may 

make site visits, as needed. 

(h) Federal awarding agencies shall 

comply with clearance requirements of 

5 CFR part 1320 when requesting performance data from recipients. 

§ 2543.52 Financial reporting. 

(a) The following forms or such other 

forms as may be approved by 0MB are authorized for obtaining financial information from recipients. 

(1) SF-269 or SF-269A, Financial Status Report. 

(i) Each Federal awarding agency 

shall require recipients to use the SF- 269 or SF-269A to report the status of 

funds for all nonconstruction projects or programs. A Federal awarding agency may, however, have the option of 

not requiring the SF-269 or SF-269A 

when the SF-270, Request for Advance or Reimbursement, or SF-272, Report 

of Federal Cash Transactions, is determined to provide adequate information 

to meet its needs, except that a final 

SF-269 or SF-269A shall be required at 

the completion of the project when the 

SF-270 is used only for advances. 

(ii) The Federal awarding agency 

shall prescribe whether the report shall 

be on a cash or accrual basis. If the 

Federal awarding agency requires ac­ crual information and the recipient's 

accounting records are not normally 

kept on the accrual basis, the recipient 

shall not be required to convert its ac­ counting system, but shall develop 

such accrual information through best 

estimates based on an analysis of the 

documentation on hand. 

45 CFR Ch. XXV (10-1-12 Edition) 

(iii) The Federal awarding agency 

shall determine the frequency of the 

Financial Status Report for each 

project or program, considering the 

size and complexity of the particular 

project or program. However, the re­ port shall not be required more frequently than quarterly or less frequently than annually. A final report 

shall be required at the completion of 

the agreement. 

(iv) The Federal awarding agency 

shall require recipients to submit the 

SF-269 or SF-269A (an original and no more than two copies) no later than 30 

days after the end of each specified re­ porting period for quarterly and semiannual reports, and 90 calendar days 

for annual and final reports. Extensions of reporting due dates may be approved by the Federal awarding agency 

upon request of the recipient. 

(2) SF-272, Report of Federal Cash 

Transactions. 

(i) When funds are advanced to re­ cipients the Federal awarding agency 

shall require each recipient to submit 

the SF-272 and, when necessary, its 

continuation sheet, SF-272a. The Federal awarding agency shall use this re­ port to monitor cash advanced to re­ cipients and to obtain disbursement information for each agreement with the 

recipients. 

(ii) Federal awarding agencies may 

require forecasts of Federal cash re­ quirements in the "Remarks" section 

of the report. 

(iii) When practical and deemed nec­ essary, Federal awarding agencies may 

require recipients to report in the 

"Remarks" section the amount of cash 

advances received in excess of three 

days. Recipients shall provide short 

narrative explanations of actions taken 

to reduce the excess balances. 

(iv) Recipients shall be required to 

submit not more than the original and 

two copies of the SF-272 15 calendar 

days following the end of each quarter. 

The Federal awarding agencies may re­ quire a monthly report from those re­ cipients receiving advances totaling $1 

million or more per year. 

(v) Federal awarding agencies may 

waive the requirement for submission 

of the SF-272 for any one of the following reasons: 

762 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2543.53 

(A) When monthly advances do not 

exceed $25,000 per recipient, provided 

that such advances are monitored 

through other forms contained in this 

section; 

(B) If, in the Federal awarding agency's opinion, the recipient's accounting 

controls are adequate to minimize ex­ cessive Federal advances; or, 

(C) When the electronic payment 

mechanisms provide adequate data. 

(b) When the Federal awarding agency needs additional information or more frequent reports, the following 

shall be observed. 

(1) When additional information is 

needed to comply with legislative re­ quirements, Federal awarding agencies 

shall issue instructions to require re­ cipients to submit such information 

under the "Remarks" section of the re­ ports. 

(2) When a Federal awarding agency 

determines that a recipient's accounting system does not meet the standards 

in Section § 2543.21, additional pertinent information to further monitor 

awards may be obtained upon written 

notice to the recipient until such time as the system is brought up to standard. The Federal awarding agency, in 

obtaining this information, shall com­ ply with report clearance requirements 

of 5 CFR part 1320. 

(3) Federal awarding agencies are en­ couraged to shade out any line item on any report if not necessary. 

(4) Federal awarding agencies may 

accept the identical information from 

the recipients in machine readable format or computer printouts or electronic outputs in lieu of prescribed formats. 

(5) Federal awarding agencies may 

provide computer or electronic outputs 

to recipients when such expedites or contributes to the accuracy of reporting. 

§ 2543.53 Retention and access re­ quirements for records. 

(a) This section sets forth requirements for record retention and access to records for awards to recipients. 

Federal awarding agencies shall not 

impose any other record retention or access requirements upon recipients. 

(b) Financial records, supporting documents, statistical records, and all 

other records pertinent to an award 

shall be retained for a period of three 

years from the date of submission of 

the final expenditure report or, for 

awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, as authorized by the Federal awarding agency. The only exceptions are the following: 

(1) If any litigation, claim, or audit is 

started before the expiration of the 3- year period, the records shall be re­ tained until all litigation, claims or audit findings involving the records 

have been resolved and final action 

taken. 

(2) Records for real property and 

equipment acquired with Federal funds 

shall be retained for 3 years after final 

disposition. 

(3) When records are transferred to or maintained by the Federal awarding 

agency, the 3-year retention requirement is not applicable to the recipient. 

(4) Indirect cost rate proposals, cost 

allocations plans, etc. as specified in 

paragraph (g) of this section. 

(c) Copies of original records may be 

substituted for the original records if 

authorized by the Federal awarding 

agency. 

(d) The Federal awarding agency 

shall request transfer of certain 

records to its custody from recipients 

when it determines that the records 

possess long term retention value. 

However, in order to avoid duplicate 

record keeping, a Federal awarding 

agency may make arrangements for re­ cipients to retain any records that are continuously needed for joint use. (e) The Federal awarding agency, the 

Inspector General, Comptroller General of the United States, or any of 

their duly authorized representatives, 

have the right of timely and unre­ stricted access to any books, documents, papers, or other records of re­ cipients that are pertinent to the 

awards, in order to make audits, ex­ aminations, excerpts, transcripts and 

copies of such documents. This right 

also includes timely and reasonable ac­ cess to a recipient's personnel for the 

purpose of interview and discussion re­ lated to such documents. The rights of access in this paragraph are not limited to the required retention period, 

763 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2543.60 

but shall last as long as records are retained. 

(f) Unless required by statute, no 

Federal awarding agency shall place 

restrictions on recipients that limit 

public access to the records of recipients that are pertinent to an award, except when the Federal awarding agency 

can demonstrate that such records 

shall be kept confidential and would 

have been exempted from disclosure 

pursuant to the Freedom of Information Act (5 U.S.C. 552) if the records 

had belonged to the Federal awarding 

agency. 

(g) Indirect cost rate proposals, cost 

allocations plans, etc. Paragraphs (g)(l) 

and (g)(2) apply to the following types 

of documents, and their supporting 

records: indirect cost rate computations or proposals, cost allocation 

plans, and any similar accounting computations of the rate at which a particular group of costs is chargeable 

(such as computer usage chargeback 

rates or composite fringe benefit 

rates). 

(1) If submitted for negotiation. If 

the recipient submits to the Federal 

awarding agency or the subrecipient 

submits to the recipient the proposal, 

plan, or other computation to form the 

basis for negotiation of the rate, then 

the 3-year retention period for its supporting records starts on the date of 

such submission. 

(2) If not submitted for negotiation. 

If the recipient is not required to submit to the Federal awarding agency or 

the subrecipient is not required to submit to the recipient the proposal, plan, 

or other computation for negotiation 

purposes, then the 3-year retention period for the proposal, plan, or other 

computation and its supporting records 

starts at the end of the fiscal year (or 

other accounting period) covered by 

the proposal, plan, or other computation. 

TERMINATION AND EVALUATION 

§ 2543.60 Purpose of termination and 

enforcement. 

Sections § 2543.61 and § 2543.62 set 

forth uniform suspension, termination 

and enforcement procedures. 

45 CFR Ch. XXV (10-1-12 Edition) 

§ 2543.61 Termination. 

(a) Awards may be terminated in 

whole or in part only if: 

(1) By the Federal awarding agency, 

if a recipient materially fails to com­ ply with the terms and conditions of an award, 

(2) By the Federal awarding agency 

with the consent of the recipient, in 

which case the two parties shall agree 

upon the termination conditions, including the effective date and, in the case of partial termination, the portion 

to be terminated, or 

(3) By the recipient upon sending to 

the Federal awarding agency written 

notification setting forth the reasons for such termination, the effective 

date, and, in the case of partial termination, the portion to be terminated. 

However, if the Federal awarding agency determines in the case of partial 

termination that the reduced or modified portion of the grant will not ac­ complish the purposes for which the 

grant was made, it may terminate the 

grant in its entirety under either paragraphs (a) (1) or (2) of this section. 

(b) If costs are allowed under an award, the responsibilities of the re­ cipient referred to in paragraph 

§2543.71(a), including those for property 

management as applicable, shall be 

considered in the termination of the 

award, and provision shall be made for 

continuing responsibilities of the re­ cipient after termination, as appropriate. 

§ 2543.62 Enforcement. 

(a) Remedies for noncompliance. If a recipient materially fails to comply 

with the terms and conditions of an award, whether stated in a Federal 

statute, regulation, assurance, application, or notice of award, the Federal 

awarding agency may, in addition to 

imposing any of the special conditions 

outlined in Section §2543.14, take one or more of the following actions, as appropriate in the circumstances. 

(1) Temporarily withhold cash payments pending correction of the deficiency by the recipient or more severe enforcement action by the Federal 

awarding agency. 

(2) Disallow (that is, deny both use of 

funds and any applicable matching 

764 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2543.72 

credit for) all or part of the cost of the 

activity or action not in compliance. 

(3) Wholly or partly suspend or terminate the current award. 

(4) Withhold further awards for the 

project or program. 

(5) Take other remedies that may be 

legally available. 

(b) Hearings and appeals. In taking 

an enforcement action, the awarding 

agency shall provide the recipient an opportunity for hearing, appeal, or 

other administrative proceeding to 

which the recipient is entitled under 

any statute or regulation applicable to 

the action involved. 

(c) Effects of suspension and termination. Costs of a recipient resulting 

from obligations incurred by the re­ cipient during a suspension or after 

termination of an award are not allowable unless the awarding agency ex­ pressly authorizes them in the notice 

of suspension or termination or subsequently. Other recipient costs during 

suspension or after termination which are necessary and not reasonably 

avoidable are allowable if: 

(1) The costs result from obligations 

which were properly incurred by the re­ cipient before the effective date of sus­ pension or termination, are not in an­ ticipation of it, and in the case of a termination, are noncancellable, and 

(2) The costs would be allowable if 

the award were not suspended or ex­ pired normally at the end of the funding period in which the termination 

takes effect. 

(d) Relationship to debarment and 

suspension. The enforcement remedies 

identified in this section, including 

suspension and termination, do not 

preclude a recipient from being subject 

to debarment and suspension under 

E.O.s 12549 and 12689 and the Federal 

awarding agency implementing regulations (see Section §2543.13). 

Subpart D-After-the-Award 

Requirements 

§2543.70 Purpose. 

Sections § 2543. 71 through § 2543. 73 

contain closeout procedures and other 

procedures for subsequent disallow­ ances and adjustments. 

§2543.71 Closeout procedures. 

(a) Recipients shall submit, within 90 

calendar days after the date of completion of the award, all financial, performance, and other reports as required 

by the terms and conditions of the 

award. The Federal awarding agency 

may approve extensions when re­ quested by the recipient. 

(b) Unless the Federal awarding agency authorizes an extension, a recipient 

shall liquidate all obligations incurred 

under the award not later than 90 calendar days after the funding period or the date of completion as specified in 

the terms and conditions of the award or in agency implementing instructions. 

(c) The Federal awarding agency 

shall make prompt payments to a re­ cipient for allowable reimbursable 

costs under the award being closed out. 

(d) The recipient shall promptly re­ fund any balances of unobligated cash 

that the Federal awarding agency has 

advanced or paid and that is not au­ thorized to be retained by the recipient 

for use in other projects. 0MB Circular 

A-129 governs unreturned amounts that 

become delinquent debts. 

(e) When authorized by the terms and 

conditions of the award, the Federal 

awarding agency shall make a settlement for any upward or downward adjustments to the Federal share of costs 

after closeout reports are received. 

(f) The recipient shall account for 

any real and personal property ac­ quired with Federal funds or received 

from the Federal Government in ac­ cordance with Sections §2543.31 

through §2543.37. 

(g) In the event a final audit has not 

been performed prior to the closeout of an award, the Federal awarding agency 

shall retain the right to recover an aPpropriate amount after fully considering the recommendations on disallowed costs resulting from the final 

audit. 

§2543.72 Subsequent adjustments and 

continuing responsibilities. 

(a) The closeout of an award does not 

affect any of the following: 

(1) The right of the Federal awarding 

agency to disallow costs and recover funds on the basis of a later audit or other review. 

765 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2543.73 

(2) The obligation of the recipient to 

return any funds due as a result of 

later refunds, corrections, or other 

transactions. 

(3) Audit requirements in Section 

§2543.26. 

(4) Property management requirements in Sections §2543.31 through 

§2543.37. 

(5) Records retention as required in 

Section § 2543.53. 

(b) After closeout of an award, a relationship created under an award may 

be modified or ended in whole or in 

part with the consent of the Federal 

awarding agency and the recipient, 

provided the responsibilities of the recipient referred to in paragraph 

§2543.73(a), including those for property 

management as applicable, are considered and provisions made for continuing responsibilities of the recipient, as appropriate. 

§ 2543.73 Collection of amounts due. 

(a) Any funds paid to a recipient in 

excess of the amount to which the recipient is finally determined to be entitled under the terms and conditions of 

the award constitute a debt to the Federal Government. If not paid within a 

reasonable period after the demand for 

payment, the Federal awarding agency 

may reduce the debt by: 

(1) Making an administrative offset 

against other requests for reimbursements, 

(2) Withholding advance payments 

otherwise due to the recipient, 

(3) Taking other action permitted by 

statute, or 

(b) Except as otherwise provided by 

law, the Federal awarding agency shall 

charge interest on an overdue debt in 

accordance with 4 CFR Chapter II, 

"Federal Claims Collection Standards." 

Subpart E-Statutory Compliance 

§ 2543.80 Contract provisions. 

All contracts, awarded by a recipient 

including small purchases, shall contain the following provisions as applicable: 

45 CFR Ch. XXV (10-1-12 Edition) 

§ 2543.81 Equal employment opportunity. 

All contracts shall contain a provision requiring compliance with E.O. 

11246, "Equal Employment Opportunity," as amended by E.O. 11375, 

"Amending Executive Order 11246 Relating to Equal Employment Opportunity," and as supplemented by regulations at 41 CFR part 60, "Office of 

Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor." 

§ 2543.82 Copeland "Anti-Kickback" 

Act. 

All contracts and subgrants in excess of $2000 for construction or repair 

awarded by recipients and subrecipients shall include a provision for com­ pliance with the Copeland "Anti-Kickback" Act (18 U.S.C. 874), as supplemented by Department of Labor regulations (29 CFR part 3, "Contractors 

and Subcontractors on Public Building 

or Public Work Financed in Whole or in Part by Loans or Grants from the 

United States"). The Act provides that 

each contractor or subrecipient shall 

be prohibited from inducing, by any 

means, any person employed in the 

construction, completion, or repair of 

public work, to give up any part of the 

compensation to which he is otherwise 

entitled. The recipient shall report all 

suspected or reported violations to the 

Federal awarding agency. 

§ 2543.83 Davis-Bacon Act. 

When required by Federal program 

legislation, all construction contracts 

awarded by the recipients and subrecipients of more than $2000 shall include a provision for compliance with 

the Davis-Bacon Act (40 U.S.C. 276a to 

a-7) and as supplemented by Department of Labor regulations (29 CFR part 

5, "Labor Standards Provisions Applicable to Contracts Governing Federally 

Financed and Assisted Construction"). 

Under this Act, contractors shall be re­ quired to pay wages to laborers and 

mechanics at a rate not less than the 

minimum wages specified in a wage determination made by the Secretary of 

Labor. In addition, contractors shall be 

required to pay wages not less than once a week. The recipient shall place 

a copy of the current prevailing wage 

766 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2543.88 

determination issued by the Department of Labor in each solicitation and 

the award of a contract shall be conditioned upon the acceptance of the wage 

determination. The recipient shall report all suspected or reported violations to the Federal awarding agency. 

§2543.84 Contract Work Hours and 

Safety Standards Act. 

Where applicable, all contracts 

awarded by recipients in excess of $2000 

for construction contracts and in excess of $2500 for other contracts that 

involve the employment of mechanics or laborers shall include a provision for 

compliance with Sections 102 and 107 of 

the Contract Work Hours and Safety 

Standards Act (40 U.S.C. 327-333), as supplemented by Department of Labor 

regulations (29 CFR part 5). Under Section 102 of the Act, each contractor 

shall be required to compute the wages 

of every mechanic and laborer on the 

basis of a standard work week of 40 

hours. Work in excess of the standard 

work week is permissible provided that 

the worker is compensated at a rate of 

not less than 11⁄2 times the basic rate of 

pay for all hours worked in excess of 40 

hours in the work week. Section 107 of 

the Act is applicable to construction 

work and provides that no laborer or mechanic shall be required to work in 

surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do 

not apply to the purchases of supplies or materials or articles ordinarily 

available on the open market, or con­ tracts for transportation or transmission of intelligence. 

§ 2543.85 Rights to inventions made 

under a contract or agreement. 

Contracts or agreements for the performance of experimental, developmental, or research work shall provide 

for the rights of the Federal Government and the recipient in any resulting 

invention in accordance with 37 CFR 

part 401, "Rights to Inventions Made 

by Nonprofit Organizations and Small 

Business Firms Under Government 

Grants, Contracts and Cooperative 

Agreements," and any implementing 

regulations issued by the awarding 

agency. 

§ 2543.86 Clean Air Act and the Federal Water Pollution Control Act. 

Contracts and subgrants of amounts 

in excess of $100,000 shall contain a provision that requires the recipient to 

agree to comply with all applicable 

standards, orders or regulations issued 

pursuant to the Clean Air Act (42 

U.S.C. 7401 et seq.) and the Federal 

Water Pollution Control Act as amended (33 U.S.C. 1251 et seq.). Violations 

shall be reported to the Federal awarding agency and the Regional Office of 

the Environmental Protection Agency 

(EPA). 

§ 2543.87 Byrd anti-lobbying amendment. 

Contractors who apply or bid for an 

award of $100,000 or more shall file the 

required certification. Each tier certifies to the tier above that it will not 

and has not used Federal appropriated 

funds to pay any person or organization for influencing or attempting to 

influence an officer or employee of any 

agency, a member of Congress, officer 

or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal 

contract, grant or any other award 

covered by 31 U.S.C. 1352. Each tier 

shall also disclose any lobbying with 

non-Federal funds that takes place in 

connection with obtaining any Federal 

award. Such disclosures are forwarded 

from tier to tier up to the recipient. 

§ 2543.88 Debarment and suspension. 

No contract shall be made to parties 

listed on the General Services Administration's List of Parties Excluded 

from Federal Procurement or Nonprocurement Programs in accordance 

with E.O.s 12549 and 12689, "Debarment 

and Suspension." This list contains the 

names of parties debarred, suspended, 

or otherwise excluded by agencies, and 

contractors declared ineligible under 

statutory or regulatory authority 

other than E.O. 12549. Contractors with 

awards that exceed the small purchase 

threshold shall provide the required 

certification regarding its exclusion 

status and that of its principal employees. 

767 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Pt. 2544 

PART 2544-SOLICITATION AND 

ACCEPTANCE OF DONATIONS 

Sec. 

2544.100 What is the purpose of this part? 

2544.105 What is the legal authority for so- liciting and accepting donations to the 

Corporation? 

2544.110 What definitions apply to terms 

used in this part? 

2544.115 Who may offer a donation? 

2544.120 What personal services from a volunteer may be solicited and accepted? 

2544.125 Who has the authority to solicit 

and accept or reject a donation? 

2544.130 How will the Corporation determine 

whether to solicit or accept a donation? 

2544.135 How should an offer of a donation 

be made? 

2544.140 How will the Corporation accept or reject an offer? 

2544.145 What will be done with property 

that is not accepted? 

2544.150 How will accepted donations be re­ corded and used? 

AUTHORITY: 42 u.s.c. 12501 et seq. 

SOURCE: 60 FR 28355, May 31, 1995, unless 

otherwise noted. 

§ 2544.100 What is the purpose of this 

part? 

This part establishes rules to ensure that the solicitation, acceptance, holding, administration, and use of property and services donated to the Corporation: 

(a) Will not reflect unfavorably upon 

the ability of the Corporation or its officers and employees, to carry out their 

official duties and responsibilities in a fair and objective manner; and 

(b) Will not compromise the integrity 

of the Corporation's programs or its officers and employees involved in such 

programs. 

§ 2544.105 What is the legal authority 

for soliciting and accepting donations to the Corporation? 

Section 196(a) of the National and 

Community Service Act of 1990, as amended (42 U.S.C. 1265lg(a)). 

§2544.110 What definitions apply to 

terms used in this part? 

(a) Donation means a transfer of 

money, property, or services to or for 

the use of the Corporation by gift, devise, bequest, or other means. (b) Solicitation means a request for a donation. 

45 CFR Ch. XXV (10-1-12 Edition) 

(c) Volunteer means an individual who 

donates his/her personal service to the 

Corporation to assist the Corporation 

in carrying out its duties under the national service laws, but who is not a 

participant in a program funded or sponsored by the Corporation under the 

National and Community Service Act 

of 1990, as amended. Such individual is 

not subject to provisions of law related 

to Federal employment, including 

those relating to hours of work, rates 

of compensation, leave, unemployment 

compensation and Federal employee 

benefits, except that-

(!) Volunteers will be considered Federal employees for the purpose of the 

tort claims provisions of 28 U.S.C. 

chapter 171; 

(2) Volunteers will be considered Federal employees for the purposes of 5 

U.S.C. chapter 81, subchapter I, relating to compensation to Federal employees for work injuries; and 

(3) Volunteers will be considered special Government employees for the 

purpose of ethics and public integrity 

under the provisions of 18 U.S.C. chapter 11, part I, and 5 CFR chapter XVI, 

subchapter B. 

(d) Inherently governmental function 

means any activity that is so intimately related to the public interest as to mandate performance by an officer 

or employee of the Federal Government, including an activity that re­ quires either the exercise of discretion 

in applying the authority of the Government or the use of value judgment 

in making a decision for the Government. 

§ 2544.115 Who may offer a donation? 

Anyone, including an individual, 

group of individuals, organization, cor­ poration, or association may offer a donation to the Corporation. 

§ 2544.120 What personal services from a volunteer may be solicited and ac­ cepted? 

A donation in the form of personal 

services from a volunteer may be solicited and accepted to assist the Corporation in carrying out its duties. However, volunteers may not perform an 

inherently governmental function. 

768 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2544.140 

§ 2544.125 Who has the authority to so­ licit and accept or reject a donation? 

The Chief Executive Officer (CEO) of 

the Corporation has the authority to 

solicit, accept, or reject a donation offered to the Corporation and to make 

the determinations described in 

§2544.130 (c) and (d). The CEO may delegate this authority in writing to other 

officials of the Corporation. 

§ 2544.130 How will the Corporation 

determine whether to solicit or ac­ cept a donation? 

(a) The Corporation will solicit and 

accept a donation only for the purpose 

of furthering the mission and goals of 

the Corporation. 

(b) In order to be accepted, the donation must be economically advantageous to the Corporation, considering foreseeable expenditures for matters such as storage, transportation, 

maintenance, and distribution. 

(c) An official or employee of the 

Corporation will not solicit or accept a donation if the solicitation or accept­ ance would present a real or apparent 

conflict of interest. An apparent con­ flict of interest is presented if the so­ licitation or acceptance would raise a question in the mind of a reasonable 

person, with knowledge of the relevant 

facts, about the integrity of the Corporation's programs or operations. 

(d) The Corporation will determine 

whether a conflict of interest exists by 

considering any business relationship, 

financial interest, litigation, or other 

factors that may indicate such a con­ flict. Donations of property or voluntary services may not be solicited or accepted from a source which: 

(1) Is a party to a grant or contract 

with the Corporation or is seeking to 

do business with the Corporation; 

(2) Has pecuniary interests that may 

be substantially affected by perform­ ance or nonperformance of the Corporation; or 

(3) Is an organization a majority of 

whose members are described in paragraphs (d)(l) and (2) of this section. 

(e) Any solicitation or offer of a donation that raises a question or con­ cern of a potential, real, or apparent 

conflict of interest will be forwarded to 

the Corporation's Designated Ethics 

Official for an opinion. 

§ 2544.135 How should an offer of a donation be made? 

(a) In general, an offer of donation 

should be made by providing a letter of 

tender that offers a donation. The letter should be directed to an official authorized to accept donations, describe 

the property or service offered, and 

specify any purpose for, or condition 

on, the use of the donation. 

(b) If an offer is made orally, the Corporation will send a letter of acknowledgment to the offeror. If the donor is 

anonymous, the Corporation will prepare a memorandum to the file acknowledging receipt of a tendered donation and describing the donation including any special terms or conditions. 

(c) Only those employees or officials 

with expressed notice of authority may 

accept donations on behalf of the Corporation. If an offer is directed to an 

unauthorized employee or official of 

the Corporation, that person must immediately forward the offer to an appropriate official for disposition. 

§ 2544.140 How will the Corporation 

accept or reject an offer? 

(a) In general, the Corporation will 

respond to an offer of a donation in 

writing and include in the response: 

(1) An acknowledgment of receipt of 

the offer; 

(2) A brief description of the offer and 

any purpose or condition that the offeror specified for the use of the donation; 

(3) A statement either accepting or 

rejecting the donation; and 

(4) A statement informing the donor 

that any acceptance of services or 

property can not be used in any manner, directly or indirectly, that endorses the donor's products or services 

or appears to benefit the financial interests or business goals of the donor. 

(b) If a purpose or condition for the 

use of the donation specified by the offeror can not be accommodated, the 

Corporation may request the offeror to 

modify the terms of the donation. 

769 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2544.145 

§ 2544.145 What will be done with 

property that is not accepted? 

In general, property offered to the 

Corporation but not accepted will be 

returned to the offeror. If the offeror is 

unknown or the donation would spoil if 

returned, the property will either be 

disposed of in accordance with Federal 

Property Management regulations (41 

CFR chapter 101) or given to local charities determined by the Corporation. 

§ 2544.150 How will accepted donations be recorded and used? 

(a) All accepted donations of money 

and other property will be reported to 

the Chief Financial Officer (CFO) of the 

Corporation for recording and appropriate disposition. 

(b) All donations of personal services 

of a volunteer will be reported to the 

CFO and to the Personnel Division of 

the Corporation for processing and documentation. 

(c) Donations not designated for a particular purpose will be used for an authorized purpose described in 

§2544.125. 

(d) Property will be used as nearly as possible in accordance with the terms 

of the donation. If no terms are specified, or the property can no longer be 

used for its original purpose, the property will be converted to another au­ thorized use or sold in accordance with 

Federal regulations. The proceeds of 

the sale will be used for an authorized 

purpose described in § 2544.125. 

PART 2550-REQUIREMENTS AND 

GENERAL PROVISIONS FOR STATE 

COMMISSIONS AND ALTERNATIVE ADMINISTRATIVE ENTITIES 

Sec. 

2550.10 What is the purpose of this part? 

2550.20 Definitions. 

2550.30 How does a State decide whether to 

establish a State commission or an alternative administrative entity? 

2550.40 How does a State get Corporation 

authorization and approval for the entity 

it has chosen? 

2550.50 What are the composition requirements and other requirements, restrictions or guidelines for State Commissions? 

45 CFR Ch. XXV (10-1-12 Edition) 

2550.60 From which of the State Commission requirements is an Alternative Administrative Entity exempt? 

2550. 70 [Reserved] 

2550.80 What are the duties of the State en­ tities? 

2550.85 How will the State Plan be assessed? 

2550.90 Are there any restrictions on the ac­ tivities of the members of State Commissions or Alternative Administrative Entities? 

2550.100 Do State entities or their members 

incur any risk of liability? 

2550.110 What grants will be available from 

the CorPoration to assist in establishing 

and operating a State Commission, Alternative Administrative Entity, or Transitional Entity? 

AUTHORITY: 42 U.S.C. 12638. 

SOURCE: 58 FR 60981, Nov. 18, 1993, unless 

otherwise noted. 

§ 2550.10 What is the purpose of this 

part? 

(a) The Corporation for National and 

Community Service (the Corporation) 

seeks to meet the Nation's pressing 

human, educational, environmental 

and public safety needs through service 

and to reinvigorate the ethic of civic 

responsibility across the Nation. If the 

Corporation is to meet these goals, it is 

critical for each of the States to be ac­ tively involved. 

(b) To be eligible to apply for program funding, or approved national 

service positions, each State must es­ tablish a State commission on national 

and community service to administer 

the State program grant making proc­ ess and to develop a State plan. The 

Corporation may, in some instances, 

approve an alternative administrative 

entity (AAE). 

(c) The Corporation will distribute 

grants of between $125,000 and $750,000 

to States to cover the Federal share of 

operating the State commissions or 

AAEs. 

(d) The purpose of this part is to provide States with the basic information 

essential to participate in the subtitle 

C programs. Of equal importance, this 

part gives an explanation of the preliminary steps States must take in 

order to receive money from the Corporation. This part also offers guidance on which of the two State entities 

States should seek to establish, and it 

explains the composition requirements, 

duties, responsibilities, restrictions, 

770 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2550.20 

and other relevant information for 

State commissions and AAEs. 

[58 FR 60981, Nov. 18, 1993, as amended at 67 

FR 45362, July 9, 2002; 70 FR 39607, July 8, 

2005] 

§ 2550.20 Definitions. 

(a) AAE. Alternative Administrative 

Entity. 

(b) Administrative costs. As used in 

this part, those costs incurred by a State in the establishing and operating a State entity; the specific administrative costs for which a Corporation administrative grant may be used as defined in the Uniform Administrative 

Requirements for Grants and Agreements to State and Local Governments. 

(c) Alternative Administrative Entity 

(AAE). A State entity approved by the 

Corporation to perform the duties of a State Commission, including developing a three-year comprehensive na­ tional service plan, preparing applications to the Corporation for funding 

and approved national service positions, and administering service program grants; in general, an AAE must 

meet the same composition and other 

requirements as a State Commission, 

but may receive waivers from the Corporation to accommodate State laws 

that prohibit inquiring as to the political affiliation of members, to have more than 25 voting members (the 

maximum for a State Commission), 

and/or to select members in a manner other than selection by the chief execu­ tive officer of the State. 

(d) Approved National Service Position. 

A national service program position for 

which the Corporation has approved 

the provision of a national service educational award as one of the benefits to 

be provided for successful completion 

of a term of service. 

(e) Corporation. As used in this part, 

the Corporation for National and Community Service established pursuant to 

the National and Community Service 

Trust Act of 1993 (42 U.S.C. 12651). 

(f) Corporation representative. Each of 

the individuals employed by the Corporation for National and Community 

Service to assist the States in carrying 

out national and community service 

activities; the Corporation representative must be included as a member of 

the State Commission or AAE. 

(g) Indian tribe. (1) An Indian tribe, 

band, nation, or other organized group or community, including-

(i) Any Native village, as defined in 

section 3(c) of the Alaska Native 

Claims Settlement Act (43 U.S.C. 

1602(c)), whether organized traditionally or pursuant to the Act of June 18, 

1934 (commonly known as the "Indian 

Reorganization Act"; 48 Stat. 984, 

chapter 576; 25 U.S.C. 461 et seq.); and 

(ii) Any Regional Corporation or Village Corporation as defined in the Alaska Native Claims Settlement Act (43 

U.S.C. 1602 (g) or (j)), that is recognized as eligible for the special programs and 

services provided by the United States 

under Federal law to Indians because of 

their status as Indians; and 

(2) Any tribal organization con­ trolled, sanctioned, or chartered by an entity described in paragraph (g)(l) of 

this section. 

(h) Older adult. An individual 55 years 

of age or older. 

(i) Service-learning. A method under 

which students or participants learn 

and develop through active participation in thoughtfully organized service 

that is conducted in and meets the 

needs of a community and that is co­ ordinated with an elementary school, 

secondary school, institution of higher 

education, or community service program, and with the community; serv­ ice-learning is integrated into and en­ hances the academic curriculum of the 

students, or the educational components of the community service program in which the participants are en­ rolled, and it provides time for the students or participants to reflect on the 

service experience. 

(j) Service learning programs. The totality of the service learning programs 

receiving assistance from the Corporation under subtitle B of the Act, either 

directly or through a grant-making en­ tity; this includes school-based, com­ munity-based, and higher educationbased service-learning programs. 

(k) State. As used in this part, the 

term State refers to each of the 50 

States, the District of Columbia, the 

Commonwealth of Puerto Rico, the 

United States Virgin Islands, Guam, 

771 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2550.30 

American Samoa, and the Commonweal th of the Northern Mariana Islands. 

(1) State Commission. A bipartisan or nonpartisan State entity, approved by 

the Corporation, consisting of 15--25 

members (appointed by the chief execu­ tive officer of the State), that is re­ sponsible for developing a comprehensive national service plan, assembling 

applications for funding and approved 

national service positions, and administering national and community serv­ ice programs in the State. 

(m) State Educational Agency. The same meaning given to such term in 

section 1471(23) of the Elementary and 

Secondary Education Act of 1965 (20 

u.s.c. 2891(23)). 

(n) State entity. A State Commission, 

AAE, or Transitional Entity that has 

been authorized by the Corporation to 

perform the duties of a State Commission. 

[58 FR 60981, Nov. 18, 1993, as amended at 67 

FR 45362, July 9, 2002; 70 FR 39607, July 8, 

2005] 

§ 2550.30 How does a State decide 

whether to establish a State com­ mission or an alternative administrative entity? 

(a) Although each State's chief exec­ utive officer has the authority to select an administrative option, the Corporation strongly encourages States to es­ tablish State Commissions which meet 

the requirements in this part as quickly as possible. The requirements for 

State Commissions were established to 

try to create informed and effective en­ tities. 

(b) The Corporation recognizes that some States, for legal or other legitimate reasons, may not be able to meet 

all of the requirements of the State 

Commissions. The AAE is essentially 

the same as a State Commission; however, it may be exempt from some of 

the State Commission requirements. A 

State that cannot meet one of the 

waivable requirements of the State 

Commission (as explained in §2550.60), 

and which can demonstrate this to the 

Corporation, should seek to establish 

anAAE. 

(c) Regardless of which entity a State 

employs, each State is required to so­ licit broad-based, local input in an 

45 CFR Ch. XXV (10-1-12 Edition) 

open, inclusive, non-political planning 

process. 

[58 FR 60981, Nov. 18, 1993, as amended at 70 

FR 39607, July 8, 2005] 

§ 2550.40 How does a State obtain Corporation authorization and approval for the entity it has chosen? 

(a) To receive approval of a State 

Commission or AAE, a State must formally establish an entity that meets 

the corresponding composition, membership, authority, and duty requirements of this part. (For the AAE, a 

State must demonstrate why it is impossible or unreasonable to estalbish a 

State Commission; an approved AAE, 

however, has the same rights and responsibilities as a State Commission.) 

Once the entity is established, the 

State must provide written notice-in 

a format to be prescribed by the Corporation-to the chief executive officer 

of the Corporation of the composition, 

membership, and authorities of the 

State Commission or AAE and explain 

how the entity will perform its duties 

and functions. Further, the State must 

agree to, first, request approval from 

the Corporation for any subsequent 

changes in the composition or duties of 

a State Commission or AAE the State 

may wish to make, and, second, to 

comply with any future changes in Corporation requirements with regard to 

the composition or duties of a State 

Commission or AAE. If a State meets 

the applicable requirements, the Corporation will approve the State Commission or AAE. 

(b) If the Corporation rejects a State 

application for approval of a State 

Commission or AAE because that application does not meet one or more of 

the requirements of §§2250.50 or 2550.60, 

it will notify the State of the reasons 

for rejection and offer assistance to 

make any necessary changes. The Corporation will reconsider revised applications within 14 working days of resubmission. 

[58 FR 60981, Nov. 18, 1993, as amended at 70 

FR 39607, July 8, 2005] 

772 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2550.50 

§ 2550.50 What are the composition re­ quirements and other requirements, restrictions or guidelines for 

State Commissions? 

The following provisions apply to 

both State Commissions and AAEs, ex­ cept that AAEs may obtain waivers 

from certain provisions as explained in 

§2550.60. 

(a) Size of the State Commission and 

terms of State Commission members. The 

chief executive officer of a State must 

appoint 15--25 voting members to the 

State Commission (in addition to any 

non-voting members he or she may appoint). Voting members of a State 

Commission must be appointed to re­ newable three-year terms, except that 

initially a chief executive officer must 

appoint a third of the members to one­ year terms and another third of the 

members to two-year terms. 

(b) Required voting members on a State 

Commission. A member may represent 

none, one, or more than one category, 

but each of the following categories 

must be represented: 

(1) A representative of a communitybased agency or organization in the 

State; 

(2) The head of the State education 

agency or his or her designee; 

(3) A representative of local government in the State; 

(4) A representative of local labor or­ ganizations in the State; 

(5) A representative of business; 

(6) An individual between the ages of 

16 and 25, inclusive, who is a participant or supervisor of a service program 

for school-age youth, or of a campusbased or national service program; 

(7) A representative of a national 

service program; 

(8) An individual with expertise in 

the educational, training, and development needs of youth, particularly disadvantaged youth; 

(9) An individual with experience in 

promoting the involvement of older 

adults (age 55 and older) in service and 

volunteerism; and 

(10) A representative of the volunteer 

sector. 

(c) Appointment of other voting mem­ bers of a State Commission. Any remaining voting members of a State Commission are appointed at the discretion 

of the chief executive officer of the 

State; however, although this list 

should not be construed as exhaustive, 

the Corporation suggests the following 

types of individuals: 

(1) Educators, including representatives from institutions of higher education and local education agencies; 

(2) Experts in the delivery of human, 

educational, environmental, or public 

safety services to communities and 

persons; 

(3) Representatives of Indian tribes; 

(4) Out-of-school or at-risk youth; 

and 

(5) Representatives of programs that are administered or receive assistance 

under the Domestic Volunteer Service 

Act of 1973, as amended (DVSA) (42 

U.S.C. 4950 et seq.). 

(d) Appointment of ex officio, non-voting members of a State Commission. The 

chief executive officer of a State may 

appoint as ex officio, non-voting members of the State Commission officers or employees of State agencies operating community service, youth serv­ ice, education, social service, senior 

service, or job training programs. 

(e) Other composition requirements. To 

the extent practicable, the chief execu­ tive officer of a State shall ensure that 

the membership for the State commission is diverse with respect to race, 

ethnicity, age, gender, and disability 

characteristics. Not more than 50 percent plus one of the voting members of a State commission may be from the same political party. In addition, the 

number of voting members of a State 

commission who are officers or em­ ployees of the State may not exceed 

25% of the total membership of that 

State commission. 

(f) Selection of Chairperson. The chairperson is elected by the voting mem­ bers of a State Commission. To be eligible to serve as chairperson, an individual must be an appointed, voting 

member of a State Commission. 

(g) Vacancies. If a vacancy occurs on a State Commission, a new member 

must be appointed by the chief execu­ tive officer of the State to serve for the 

remainder of the term for which the 

predecessor of such member was appointed. The vacancy will not affect 

the power of the remaining members to 

execute the duties of the Commission. 

773 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2550.60 

(h) Compensation of State Commission 

members. A member of a State Commission may not receive compensation for 

his or her services, but may be reimbursed (at the discretion of the State) 

for travel and daily expenses in the same manner as employees intermittently serving the State. 

(i) The role of the Corporation representative. The Corporation will designate one of its employees to serve as a representative to each State or group 

of States. This individual must be included as an ex officio non-voting 

member on the State Commission. In 

general, the Corporation representative 

will be responsible for assisting States 

in carrying out national service activities. 

[58 FR 60981, Nov. 18, 1993, as amended at 73 

FR 53762, Sept. 17, 2008; 74 FR 46507, Sept. 10, 

2009; 74 FR 48866, Sept. 25, 2009] 

§ 2550.60 From which of the State 

Commission requirements is an Alternative Administrative Entity ex­ empt? 

(a) An AAE is not automatically ex­ empt from any of the requirements 

that govern State Commissions. However, there are three specific State 

Commission requirements which the 

Corporation may waive if a State can demonstrate that one or more of them 

is impossible or unreasonable to meet. 

If the Corporation waives a State Commission requirement for a State entity, 

that State entity is, de facto, an AAE. 

The three criteria which may be 

waived for an AAE are as follows: 

(1) The requirement that a State's chief 

executive officer appoint the members of a State Commission. If a State can offer a compelling reason why some or all of 

the State Commission members should 

be appointed by the State legislature or by some other appropriate means, 

the Corporation may grant a waiver. 

(2) The requirement that a State Commission have 15-25 members. If a State 

compellingly demonstrates why its 

commission should have a larger num­ ber of members, the Corporation may 

grant a waiver. 

(3) The requirement that not more than 

50% plus one of the State Commission's 

voting members be from the same political 

party. This requirement was established to prevent State Commissions 

45 CFR Ch. XXV (10-1-12 Edition) 

from being politically motivated or controlled; however, in some States it 

is illegal to require prospective mem­ bers to provide information about political party affiliation. For this or an­ other compelling reason, the Corporation may grant a waiver. 

(b) Again, any time the Corporation 

grants one or more of these waivers for a State entity, that entity becomes an AAE; in all other respects an AAE is 

the same as a State Commission, having the same requirements, rights, duties and responsibilities. 

§2550.70 [Reserved] 

§ 2550.80 What are the duties of the 

State entities? 

Both State commissions and AAEs 

have the same duties. This section lists 

the duties that apply to both State 

commissions and AAEs-collectively 

referred to as State entities. Functions 

described in paragraphs (e) through (j) 

of this section are non-policymaking 

and may be delegated to another State 

agency or nonprofit organization. The 

duties are as follows: 

(a) Development of a three-year, com­ prehensive national and community serv­ ice plan and establishment of State priorities. The State entity must develop 

and annually update a Statewide plan 

for national service covering a threeyear period, the beginning of which 

may be set by the State, that is con­ sistent with the Corporation's broad 

goals of meeting human, educational, 

environmental, and public safety needs 

and meets the following minimum re­ quirements: 

(1) The plan must be developed 

through an open and public process 

(such as through regional forums or hearings) that provides for the max­ imum participation and input from a broad cross-section of individuals and 

organizations, including national serv­ ice programs within the State, commu­ nity-based agencies, organizations with a demonstrated record of providing 

educational, public safety, human, or environmental services, residents of 

the State, including youth and other 

prospective participants, State Educational Agencies, traditional service 

organizations, labor unions, and other 

interested members of the public. 

774 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2550.80 

(2) The plan must ensure outreach to 

diverse, broad-based community organizations that serve underrepresented 

populations by creating State networks and registries or by utilizing ex­ isting ones. (3) The plan must set forth the 

State's goals, priorities, and strategies 

for promoting national and community 

service and strengthening its service 

infrastructure, including how Corporation-funded programs fit into the plan. 

(4) The plan may contain such other 

information as the State commission 

considers appropriate and must contain 

such other information as the Corporation may require. 

(5) The plan must ensure outreach to, 

and coordination with, municipalities 

and county governments regarding the 

national service laws. 

(6) The plan must provide for effective coordination of funding applications submitted by the State and other 

organizations within the State under 

the national service laws. 

(7) The plan must include measurable 

goals and outcomes for national service 

programs funded through the State 

consistent with the performance levels 

for national service programs. 

(8) The plan is subject to approval by 

the chief executive officer of the State. 

(9) The plan must be submitted, in its 

entirety, in summary, or in part, to the 

Corporation upon request. 

(b) Selection of subtitle C programs and 

preparation of application to the Corporation. Each State must: 

(1) Prepare an application to the Corporation to receive funding or education awards for national service programs operating in and selected by the 

State. 

(2) Administer a competitive process 

to select national service programs for 

funding. The State is not required to 

select programs for funding prior to 

submission of the application described 

in paragraph (b)(l) of this section. 

(c) Preparation of Service Learning applications. (1) The State entity is re­ quired to assist the State education 

agency in preparing the application for 

subtitle B school-based service learning programs. 

(2) The State entity may apply to the 

Corporation to receive funding for 

community-based subtitle programs 

after coordination with the State Educational Agency. 

(d) Administration of the grants program. After subtitle C and communitybased subtitle B funds are awarded, 

States entities will be responsible for 

administering the grants and over­ seeing and monitoring the performance 

and progress of funded programs. 

(e) Evaluation and monitoring. State 

entities, in concert with the Corporation, shall be responsible for implementing comprehensive, non-duplicative evaluation and monitoring systems. 

(f) Technical assistance. The State en­ tity will be responsible for providing 

technical assistance to local nonprofit 

organizations and other entities in 

planning programs, applying for funds, 

and in implementing and operating 

high quality programs. States should 

encourage proposals from underserved 

communities. 

(g) Program development assistance and 

training. The State entity must assist 

in the development of subtitle C programs; such development might include staff training, curriculum materials, and other relevant materials and 

activities. A description of such proposed assistance must be included in 

the State comprehensive plan referred 

to in paragraph (a) of this section. A 

State may apply for additional subtitle 

C programs training and technical as­ sistance funds to perform these functions. The Corporation will issue no­ tices of availability of funds with re­ spect to training and technical assist­ ance. 

(h) Recruitment and placement. The 

State entity, as well as the Corporation, will develop mechanisms for re­ cruitment and placement of people interested in participating in national 

service programs. 

(i) Benefits. The State entity shall as­ sist in the provision of health and child care benefits to subtitle C program participants, as will be specified in the 

regulations implementing the subtitle 

C programs. 

(j) Activity ineligible for assistance. A 

State commission or AAE may not directly carry out any national service 

program that receives financial assist­ ance under section 121 of the NCSA or title II of the DVSA. 

775 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2550.85 

(k) Make recommendations to the Corporation with respect to priorities within the State for programs receiving as­ sistance under DVSA. 

(1) Coordination-(!) Coordination with 

other State agencies. A State entity 

must coordinate its activities with the 

activities of other State agencies that 

administer Federal financial assistance 

programs under the Community Services Block Grant Act (42 U.S.C. 9901 et 

seq.) or other appropriate Federal financial assistance programs. 

(2) Coordination with volunteer service 

programs. In general, the State entity 

shall coordinate its functions (including recruitment, public awareness, and 

training activities) with such functions 

of any division of ACTION, or the Corporation, that carries out volunteer 

service programs in the State. Specifically, the State entity may enter into an agreement with a division of ACTION or the Corporation to carry out 

its functions jointly, to perform its 

functions itself, or to assign responsibility for its functions to ACTION or the Corporation. 

(3) In carrying out the activities 

under paragraphs (1) (1) and (2) of this 

section, the parties involved must ex­ change information about the programs carried out in the State by the 

State entity, a division of ACTION or the Corporation, as well as information 

about opportunities to coordinate ac­ tivities. 

(m) Supplemental State Service Plan for 

Adults Age 55 or Older. To be eligible to 

receive a grant or allotment under subtitles B or C of title I of the National 

and Community Service Act (42 U.S.C. 

12501 et seq.), or to receive a distribution of approved national service positions under subtitle C of title I of that 

Act, a State must work with appropriate State agencies and private entities to develop a comprehensive State 

service plan for service by adults age 55 or older. This plan must: 

(1) Include the following elements: 

(i) Recommendations for policies to 

increase service for adults age 55 or older, including how to best use such 

adults as sources of social capital, and 

how to utilize their skills and experi­ ence to address community needs; 

(ii) Recommendations to the State 

agency on aging (as defined in section 

45 CFR Ch. XXV (10-1-12 Edition) 

102 of the Older Americans Act of 1965, 

42 U.S.C. 3002) on a marketing outreach 

plan to businesses and outreach to non­ profit organizations, the State educational agency, institutions of higher 

education, and other State agencies; 

(iii) Recommendations for civic en­ gagement and multigenerational ac­ tivities, including early childhood education and care, family literacy, and 

other after school programs, respite 

services for adults age 55 or older and 

caregivers, and transitions for older 

adults age 55 or older to purposeful 

work in their post-career lives; 

(2) Incorporate the current knowledge base regarding- (i) The economic impact of the roles 

of workers age 55 or older in the econ­ omy; 

(ii) The social impact of the roles of 

such workers in the community; 

(iii) The health and social benefits of 

active engagement for adults age 55 or older; and 

(3) Be made available to the public 

and transmitted to the Corporation. 

[58 FR 60981, Nov. 18, 1993, as amended at 70 

FR 39607, July 8, 2005; 73 FR 53762, Sept. 17, 

2008; 74 FR 46507, Sept. 10, 2009; 74 FR 48866, 

Sept. 25, 2009; 75 FR 51415, Aug. 20, 2010] 

§ 2550.85 How will the State Plan be 

assessed? 

The Corporation will assess the quality of your State Plan as evidenced by: 

(a) The development and quality of 

realistic goals and objectives for mov­ ing service ahead in the State; 

(b) The extent to which proposed 

strategies can reasonably be expected 

to accomplish stated goals; and 

(c) The extent of input in the development of the State plan from a broad 

cross-section of individuals and organizations as required by § 2550.B0(a)(l). 

[73 FR 53762, Sept. 17, 2008] 

§ 2550.90 Are there any restrictions on the activities of the members of 

State Commissions or Alternative 

Administrative Entities? 

To avoid a conflict of interest (or the 

appearance of a conflict of interest) re­ garding the provision of assistance or approved national service positions, 

members of a State Commission or AAE must adhere to the following provisions: 

776 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2550.110 

(a) General restriction. Members of 

State Commissions and AAEs are re­ stricted in several ways from the grant 

approval and administration process 

for any grant application submitted by an organization for which they are cur­ rently, or were within one year of the 

submission of the application, officers, 

directors, trustees, full-time volunteers or employees. The restrictions for 

such individuals are as follows: 

(1) They cannot assist the applying 

organization in preparing the grant application; 

(2) They must recuse themselves 

from the discussions or decisions re­ garding the grant application and any 

other grant applications submitted to 

the Commission or AAE under the same program (e.g., subtitle B programs or subtitle C programs); and 

(3) They cannot participate in the 

oversight, evaluation, continuation, 

suspension or termination of the grant 

award. 

(b) Exception to achieve a quorum. If 

this general restriction creates a situation in which a Commission or AAE 

does not have enough eligible voting 

members to achieve a quorum, the 

Commission or AAE may involve some normally-excluded members subject to 

the following conditions: 

(1) A Commission or AAE may ran­ domly and in a non-discretionary man­ ner select the number of refused mem­ bers necessary to achieve a quorum; 

(2) Notwithstanding paragraph (b)(l) 

of this section, no Commission or AAE 

member may, under any circumstances, participate in any discussions or decisions regarding a grant application submitted by an organization 

with which he or she is or was affiliated according to the definitions in 

paragraph (a) of this section; and 

(3) If recused members are included so as to achieve quorum, the State 

Commission or AAE must document 

the event and report to the Corporation within 30 days of the vote. 

(c) Rule of construction. Paragraph (a) 

of this section shall not be construed 

to limit the authority of any voting 

member of the State Commission or AAE to participate in- (1) Discussion of, and hearings and fo­ rums on, the general duties, policies 

and operations of the Commission or 

AAE, or general program administration; or 

(2) Similar general matters relating 

to the Commission or AAE. 

§ 2550.100 Do State entities or their 

members incur any risk of liability? 

(a) State liability. Except as provided 

in paragraph (b) of this section, a State 

must agree to assume liability with re­ spect to any claim arising out of or re­ sulting from any act or omission by a member of the State Commission or AAE, within the scope of the service of 

that member. 

(b) Individual liability. A member of 

the State Commission or AAE shall 

have no personal liability with respect 

to any claim arising out of or resulting 

from any act or omission by that mem­ ber, within the scope of the service of 

that member. This does not, however, 

limit personal liability for criminal 

acts or omissions, willful or malicious 

misconduct, acts or omissions for private gain, or any other act or omission 

outside the scope of the service of that 

member. Similarly, this part does not 

limit or alter in any way any other immunities that are available under applicable law for State officials and em­ ployees not described in this section; nor does this part affect any other 

right or remedy against the State or any person other than a member of a State Commission or AAE. 

§ 2550.110 What grants will be available from the Corporation to assist 

in establishing and operating a State Commission, Alternative Administrative Entity, or Transitional 

Entity? 

(a) Administrative Grants. The Corporation may make administrative 

grants to States in an amount no less 

than $250,000 and up to $1 million for 

the purpose of establishing or operating a State Commission or AAE; 

these grants will be available to States 

which have Corporation-approved 

Transitional Entities only if those 

States commit to establishing a Corporation-approved State Commission or AAE prior to the expiration of the 

transitional period. 

(b) Limitation on Federal share. Except as provided in paragraph (c) of this sec­ tion, the amount of a grant that may 

777 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Pt. 2551 

be provided to a State under this subsection, together with other Federal 

funds available to establish or operate 

the State Commission or AAE, may 

not exceed 50 percent of the total cost 

to establish or operate the State Commission or AAE. 

45 CFR Ch. XXV (10-1-12 Edition) 

(c) Alternative Match Schedule. The 

Corporation may permit a State that 

demonstrates hardship or a new State 

Commission to meet alternative 

matching requirements for such a 

grant as follows: 

Grant amount Match requirement 

(1) First $100,000 .......................................................... No match requirement. 

(2) Amounts above $100,000 but less than $250,000 $1 of non-Federal funds for every $2 provided by the Corporation in excess of $100,000. 

(3) Amounts greater than $250,000 .............................. $1 of non-Federal funds for every $1 provided by the Corporation in excess of $250,000. 

[74 FR 46508, Sept. 10, 2009] 

PART 2551-SENIOR COMPANION 

PROGRAM 

Subpart A-General 

Sec. 

2551.11 What is the Senior Companion Program? 

2551.12 Definitions. 

Subpart B-Eligibility and Responsibilities of 

a Sponsor 

2551.21 Who is eligible to serve as a sponsor? 

2551.22 What are the responsibilities of a 

sponsor? 

2551.23 What are a sponsor's program responsibilities? 

2551.24 What are a sponsor's responsibilities 

for securing community participation? 

2551.25 What are a sponsor's administrative 

responsibilities? 

2551.26 To whom does this part apply? 

2551.27 What two search components of the 

National Service Criminal History Check 

must I satisfy to determine an individual's suitability to serve in a covered position? 

2551.28 When must I conduct a State criminal registry check and a NSOPR check on an individual in a covered position? 

2551.29 What procedures must I follow in 

conducting a National Service Criminal 

History Check? 

2551.30 What documentation must I maintain regarding a National Service Criminal History Check? 

2551.31 Under what circumstances may I follow alternative procedures in conducting a State criminal registry check? 

2551.32 Is an individual who refuses to con­ sent to a State criminal registry check, 

or who makes a false statement in con­ nection with a grantee's inquiry con­ cerning the individual's criminal history, 

eligible to serve in a covered position? 

2551.33 May a sponsor administer more than 

one program grant from the Corporation? 

Subpart C-Suspension and Termination of 

Corporation Assistance 

2551.34 What are the rules on suspension, 

termination, and denial of refunding of 

grants? 

Subpart D-Senior Companion Eligibility, 

Status, and Cost Reimbursements 

2551.41 Who is eligible to be a Senior Companion? 

2551.42 What types of criminal convictions 

or other adjudications disqualify an individual from serving as a Senior Companion or as a Senior Companion grantfunded employee? 

2551.43 What income guidelines govern eligibility to serve as a stipended Senior 

Companion? 

2551.44 What is considered income for determining volunteer eligibility? 

2551.45 Is a Senior Companion a federal employee, an employee of the sponsor or of 

the volunteer station? 

2551.46 What cost reimbursements are provided to Senior Companions? 

2551.47 May the cost reimbursements of a 

Senior Companion be subject to any tax 

or charge, be treated as wages or compensation, or affect eligibility to receive 

assistance from other programs? 

Subpart E-Senior Companion Terms of 

Service 

2551.51 What are the terms of service of a 

Senior Companion? 

2551.52 What factors are considered in determining a Senior Companion's service 

schedule? 

2551.53 Under what circumstances may a 

Senior Companion's service be terminated? 

778 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2551.12 

Subpart F-Responsibilities of a Volunteer 

Station 

2551.61 When may a sponsor serve as a volunteer station? 

2551.62 What are the responsibilities of a 

volunteer station? 

Subpart G-Senior Companion Placements 

and Assignments 

2551.71 What requirements govern the as­ signment of Senior Companions? 

2551.72 Is a written volunteer assignment 

plan required for each volunteer? 

Subpart H--Clients Served 

2551.81 What type of clients are eligible to 

be served? 

Subpart I-Application and Fiscal 

Requirements 

2551.91 What is the process for application 

and award of a grant? 

2551.92 What are project funding requirements? 

2551.93 What are grants management re­ quirements? 

Subpart J-Non-Stipended Senior 

Companions 

2551.101 What rule governs the recruitment 

and enrollment of persons who do not 

meet the income eligibility guidelines to 

serve as Senior Companions without stipends? 

2551.102 What are the conditions of service 

of non-stipended Senior Companions? 

2551.103 Must a sponsor be required to enroll 

non-stipended Senior Companions? 

2551.104 May Corporation funds be used for 

non-stipended Senior Companions? 

Subpart K-Non-Corporation Funded SCP 

Projects 

2551.111 Under what conditions can an agency or organization sponsor a Senior Companion project without Corporation funding? 

2551.112 What benefits are a non-Corporation funded project entitled to? 

2551.113 What financial obligation does the 

Corporation incur for non-Corporation 

funded projects? 

2551.114 What happens if a non-Corporation 

funded sponsor does not comply with the 

Memorandum of Agreement? 

Subpart L-Restrictions and Legal 

Representation 

2551.121 What legal limitations apply to the 

operation of the Senior Companion Program and to the expenditure of grant 

funds? 

2551.122 What legal coverage does the Corporation make available to Senior Companions? 

AUTHORITY: 42 u.s.c. 4950 et seq.; 42 u.s.c. 

12651b-12651d; E.O. 13331, 69 FR 9911. 

SOURCE: 64 FR 14115, Mar. 24, 1999, unless 

otherwise noted. 

Subpart A-General 

§ 2551.11 What is the Senior Companion Program? 

The Senior Companion Program provides grants to qualified agencies and 

organizations for the dual purpose of 

engaging persons 55 and older, particularly those with limited incomes, in 

volunteer service to meet critical com­ munity needs; and to provide a high 

quality experience that will enrich the 

lives of the volunteers. Program funds are used to support Senior Companions 

in providing supportive, individualized 

services to help older adults with special needs maintain their dignity and 

independence. 

[74 FR 46508, Sept. 10, 2009] 

§ 2551.12 Definitions. 

(a) Act. The Domestic Volunteer 

Service Act of 1973, as amended, Pub. 

L. 93--113, Oct. 1, 1973, 87 Stat. 396, 42 

U.S.C. 4950 et seq. 

(b) Adult with special needs. Any individual over 21 years of age who has one or more physical, emotional, or mental 

health limitations and is in need of assistance to achieve and maintain their 

highest level of independent living. 

(c) Adequate staffing level. The num­ ber of project staff or full-time equivalent needed by a sponsor to manage 

NSSC project operations considering 

such factors as: number of budgeted 

Volunteer Service Years (VSY), num­ ber of volunteer stations, and the size 

of the service area. (d) Annual income. Total cash and inkind receipts from all sources over the 

preceding 12 months including: the applicant or enrollee's income and, the 

applicant or enrollee's spouse's income, 

if the spouse lives in the same residence. The value of shelter, food, and 

clothing, shall be counted if provided 

at no cost by persons related to the applicant/enrollee, or spouse. 

779 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2551.12 

(e) Chief Executive Officer. The Chief 

Executive Officer of the Corporation 

appointed under the National and Community Service Act of 1990, as amended, (NCSA), 42 U.S.C. 12501 et seq. 

(f) Corporation. The Corporation for 

National and Community Service established under the Trust Act. The 

Corporation is also sometimes referred 

to as CNCS. 

(g) Cost reimbursements. Reimbursements provided to volunteers such as 

stipends to cover incidental costs, 

meals, and transportation, to enable 

them to serve without cost to themselves. Also included are the costs of 

annual physical examinations, volunteer insurance and recognition which 

are budgeted as Volunteer Expenses. 

(h) In-home. The non-institutional assignment of a Senior Companion in a 

private residence. 

(i) Letter of Agreement. A written 

agreement between a volunteer station, the sponsor and the adult served 

or the persons legally responsible for 

that adult. It authorizes the assignment of a Senior Companion in the clients home, defines the Senior Companion's activities and delineates specific 

arrangements for supervision. 

(j) Memorandum of Understanding. A 

written statement prepared and signed 

by the Senior Companion project sponsor and the volunteer station that 

identifies project requirements, working relationships and mutual responsibilities. 

(k) National Senior Service Corps 

(NSSC). The collective name for the 

Foster Grandparent Program (FGP), 

the Retired and Senior Volunteer Program (RSVP), the Senior Companion 

Program (SCP), and Demonstration 

Programs established under Title II 

Parts A, B, C, and E, of the Act. NSSC 

is also referred to as the "Senior 

Corps". 

(1) Non-Corporation support (required). 

The percentage share of non-Federal 

cash and in-kind contributions, required to be raised by the sponsor in 

support of the grant. 

(m) Non-Corporation support (excess). 

The amount of non-Federal cash and 

in-kind contributions generated by a sponsor in excess of the required percentage. 

45 CFR Ch. XXV (10-1-12 Edition) 

(n) Project. The locally planned and 

implemented Senior Companion Program activity or set of activities as 

agreed upon between a sponsor and the 

Corporation. 

( o) Qualified individual with a disability. An individual with a disability 

(as defined in the Rehabilitation Act, 

29 U.S.C. 705 (20)) who, with or without 

reasonable accommodation, can perform the essential functions of a volunteer position that such individual holds or desires. If a sponsor has prepared a 

written description before advertising or interviewing applicants for the position, the written description may be 

considered evidence of the essential 

functions of the volunteer position. 

(p) Service area. The geographically 

defined area in which Senior Companions are recruited, enrolled, and placed 

on assignments. 

(q) Service schedule. A written delineation of the days and times a Senior 

Companion serves each week. 

(r) Sponsor. A public agency or private non-profit organization, either 

secular or faith-based, that is responsible for the operation of a Senior Companion project. 

(s) Stipend. A payment to Senior 

Companions to enable them to serve 

without cost to themselves. The 

amount of the stipend is determined by 

the Corporation and is payable in regular installments. The mm1mum 

amount of the stipend is set by law and 

shall be adjusted by the CEO from time 

to time. 

(t) Trust Act. The National and Community Service Trust Act of 1993, Pub. 

L. 103--82, Sept. 21, 1993, 107 Stat. 785. 

(u) United States and States. Each of 

the several States, the District of Columbia, the U.S. Virgin Islands, the 

Commonwealth of Puerto Rico, Guam 

and American Samoa, and Trust Territories of the Pacific Islands. 

(v) Volunteer assignment plan. A written description of a Senior Companion's assignment with a client. The 

plan identifies specific outcomes for 

the client served and the activities of 

the Senior Companion. 

(w) Volunteer station. A public agency, secular or faith-based private non­ profit organization, or proprietary 

health care organization that accepts 

the responsibility for assignment and 

780 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2551.23 

supervision of Senior Companions in 

health, education, social service or re­ lated settings such as multi-purpose 

centers, home health care agencies, or similar establishments. Each volunteer 

station must be licensed or otherwise 

certified, when required, by the appropriate state or local government. Private homes are not volunteer stations. 

[64 FR 14115, Mar. 24, 1999, as amended at 69 

FR 60094, Oct. 7, 2004] 

Subpart B-Eligibility and 

Responsibilities of a Sponsor 

§ 2551.21 Who is eligible to serve as a sponsor? 

The Corporation awards grants to 

public agencies, including Indian tribes 

and non-profit private organizations, 

both secular and faith-based, in the 

United States that have the authority 

to accept and the capability to administer a Senior Companion project. 

[69 FR 60095, Oct. 7, 2004] 

§ 2551.22 What are the responsibilities 

of a sponsor? 

A sponsor is responsible for fulfilling 

all project management requirements 

necessary to accomplish the purposes 

of the Senior Companion Program as specified in the Act. A sponsor shall 

not delegate or contract these responsibilities to another entity. The spon­ sor shall comply with all program regulations and policies, and grant provisions prescribed by the Corporation. 

§ 2551.23 What are a sponsor's program responsibilities? 

A sponsor shall: 

(a) Focus Senior Companion re­ sources on critical problems affecting 

the frail elderly and other adults with 

special needs within the project's serv­ ice area. 

(b) Assess in collaboration with other 

community organizations or utilize ex­ isting assessment of the needs of the 

client population in the community 

and develop strategies to respond to 

those needs using the resources of Senior Companions. 

(c) Develop and manage a system of 

volunteer stations by: 

(1) Ensuring that a volunteer station 

is a public or non-profit private organization, whether secular or faith-based, 

or an eligible proprietary health care agency, capable of serving as a volunteer station for the placement of Senior Companions; 

(2) Ensuring that the placement of 

Senior Companions is governed by a 

Memorandum of Understanding: 

(i) That is negotiated prior to placement; 

(ii) That specifies the mutual responsibilities of the station and sponsor; 

(iii) That is renegotiated at least 

every three years; and 

(iv) That states the station assures it 

will not discriminate against volunteers or in the operation of its program on the basis of race; color; national origin, including individuals with limited 

English proficiency; sex; age; political 

affiliation; religion; or on the basis of 

disability, if the participant or member 

is a qualified individual with a disability; and 

(3) Reviewing volunteer placements 

regularly to ensure that clients are eligible to be served. 

(d) Develop service opportunities 

that consider the skills and experiences 

of the Senior Companion. 

(e) Consider the demographic makeup of the project service area in the en­ rollment of Senior Companions, taking 

special efforts to recruit eligible individuals from minority groups, persons 

with disabilities, and under-represented groups. 

(f) Provide Senior Companions with 

assignments that show direct and demonstrable benefits to the adults and 

the community served, the Senior 

Companions, and the volunteer station; 

with required cost reimbursements 

specified in §2551.46; with not less than 

40 hours of orientation of which 20 

hours must be pre-service, and an aver­ age of 4 hours of monthly in-service 

training. 

(g) Encourage the most efficient and 

effective use of Senior Companions by 

coordinating project services and ac­ tivities with related national, state 

and local programs, including other 

Corporation programs. 

(h) Conduct an annual appraisal of 

volunteers' performance and annual re­ view of their income eligibility. 

781 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2551.24 

(i) Develop, and annually update, a 

plan for promoting senior service within the project's service area. (j) Annually assess the accomplishments and impact of the project on the 

identified needs and problems of the 

client population in the community. 

(k) Establish written service policies 

for Senior Companions that include but 

are not limited to annual and sick 

leave, holidays, service schedules, termination, appeal procedures, meal and 

transportation reimbursements. 

[64 FR 14115, Mar. 24, 1999, as amended at 67 

FR 60998, Sept. 27, 2002; 69 FR 60095, Oct. 7, 

2004; 74 FR 46508, Sept. 10, 2009] 

§ 2551.24 What are a sponsor's responsibilities for securing community 

participation? 

(a) A sponsor shall secure community 

participation in local project operation 

by establishing an Advisory Council or 

a similar organizational structure with a membership that includes people: 

(1) Knowledgeable of human and social needs of the community; 

(2) Competent in the field of commu­ nity service and volunteerism; 

(3) Capable of helping the sponsor 

meet its administrative and program 

responsibilities including fund-raising, 

publicity and impact programming; 

(4) With interest in and knowledge of 

the capability of older adults; and 

(5) Of a diverse composition that reflects the demographics of the service 

area. 

(b) The sponsor determines how such 

participation shall be secured, consistent with the provisions of paragraphs (a)(l) through (a)(5) of this section. 

§ 2551.25 What are a sponsor's administrative responsibilities? 

A sponsor shall: 

(a) Assume full responsibility for se­ curing maximum and continuing com45 CFR Ch. XXV (10-1-12 Edition) 

ties delegated to project staff for NSSC 

program(s) within its control. A fulltime project director shall not serve 

concurrently in another capacity, paid 

or unpaid, during established working 

hours. The project director may participate in activities to coordinate program resources with those of related 

local agencies, boards or organizations. 

A sponsor may negotiate the employment of a part-time project director 

with the Corporation when it can be 

demonstrated that such an arrangement will not adversely affect the size, 

scope, and quality of project operations. 

(d) Consider all project staff as sponsor employees subject to its personnel 

policies and procedures. 

(e) Compensate project staff at a 

level that is comparable with other 

similar staff positions in the sponsor 

organization and/or project service 

area. 

(f) Establish risk management policies and procedures covering project 

and Senior Companion activities. This 

includes provision of appropriate insurance coverage for Senior Companions, 

vehicles and other properties used in 

the project. 

(g) Establish record keeping/reporting systems in compliance with Corporation requirements that ensure quality of program and fiscal operations, facilitate timely and accurate 

submission of required reports and co­ operate with Corporation evaluation 

and data collection efforts. 

(h) Comply with and ensure that all 

volunteer stations comply with all applicable civil rights laws and regulations, including providing reasonable 

accommodation to qualified individuals with disabilities. 

§2551.26 To whom does this part 

apply? 

munity financial and in-kind support 

to operate the project successfully. 

(b) Provide levels of staffing and re­ sources appropriate to accomplish the 

purposes of the project and carry out 

its project management responsibilities. 

(c) Employ a full-time project director to accomplish program objectives 

and manage the functions and activiThis part applies to Senior Companion Sponsors when determining the 

suitability of Senior Companions, as 

well as to Senior Companion grantfunded employees who, on a recurring 

basis, have access to children, persons 

age 60 and older, or individuals with 

disabilities. 

[72 FR 48583, Aug. 24, 2007] 

782 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2551.31 

§ 2551.27 What two search components 

of the National Service Criminal 

History Check must I satisfy to determine an individual's suitability 

to serve in a covered position? 

Unless the Corporation approves an 

alternative screening protocol, in determining the suitability of an individual to serve as a Senior Companion or as a covered grant-funded employee, 

you are responsible for ensuring, unless 

prohibited by State law, that you conduct and document a National Service 

Criminal History Check, which consists 

of the following two search components: 

(a) State criminal registry search. A 

search (by name or fingerprint) of the 

State criminal registry for the State in 

which the program operates and the 

State in which the individual resides at 

the time of application; and 

(b) National Sex Offender Public Registry. A name-based search of the Department of Justice (DOJ) National 

Sex Offender Public Registry (NSOPR). 

[72 FR 48583, Aug. 24, 2007] 

§ 2551.28 When must I conduct a State 

criminal registry check and a NSOPR check on an individual in a covered position? 

(a) The State criminal registry check 

must be conducted on an individual 

who enrolls in, or is hired by, your program after November 23, 2007. 

(b) The NSOPR check must be con­ ducted on an individual who is serving, 

or applies to serve, in a covered position on or after November 23, 2007. 

[72 FR 48583, Aug. 24, 2007; 72 FR 51009, Sept. 

5, 2007] 

§ 2551.29 What procedures must I follow in conducting a National Service Criminal History Check? 

You are responsible for ensuring that 

the following procedures are satisfied: 

(a) Verify the individual's identity by 

exammmg the individual's government-issued photo identification card, 

such as a driver's license; 

(b) Obtain prior, written authorization for the State criminal registry 

check and the appropriate sharing of 

the results of that check within the 

program from the individual (but not 

for the NSOPR check); 

(c) Document the individual's understanding that selection into the program is contingent upon the organization's review of the individual's criminal history, if any; 

(d) Provide a reasonable opportunity 

for the individual to review and challenge the factual accuracy of a result 

before action is taken to exclude the 

individual from the position; 

(e) Provide safeguards to ensure the 

confidentiality of any information re­ lating to the criminal history check, 

consistent with authorization provided 

by the individual; and 

(f) Ensure that an individual, for 

whom the results of a required State 

criminal registry check are pending, is 

not permitted to have access to children, persons age 60 and older, or individuals with disabilities without being 

accompanied by an authorized program 

representative who has previously been 

cleared for such access. 

[72 FR 48583, Aug. 24, 2007] 

§ 2551.30 What documentation must I 

maintain regarding a National 

Service Criminal History Check? 

You must: 

(a) Document in writing that you 

verified the identity of the individual 

in a covered position by examining the 

individual's government-issued photo 

identification card, and that you conducted the required checks for the cov­ ered position; and 

(b) Maintain the results of the National Service Criminal History check 

(unless precluded by State law) and 

document in writing that you considered the results in selecting the individual. 

[72 FR 48583, Aug. 24, 2007] 

§ 2551.31 Under what circumstances 

may I follow alternative procedures 

in conducting a State criminal registry check? 

(a) FBI fingerprint-based check. If you 

or your designee conduct and document a fingerprint-based criminal history 

check through the Federal Bureau of 

Investigation, you will be deemed to 

have satisfied the State criminal registry check requirement and do not 

need separate approval by the Corporation. 

783 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2551.32 

(b) Name-based search. If you conduct 

and document a name-based criminal 

history check through a source other 

than the FBI that, includes a check of 

the criminal records repository, in the 

State in which your program is operating, as well as in the State in which 

the individual lives, you will be deemed 

to have satisfied the State criminal 

registry check requirement and do not 

need separate approval by the Corporation. 

(c) Alternative search approval. If you 

demonstrate that you are prohibited or 

otherwise precluded under State law 

from complying with a Corporation requirement relating to criminal history 

checks or that you can obtain substantially equivalent or better information 

through an alternative process, the 

Corporation will consider approving an 

alternative search protocol that you 

submit in writing to the Office of 

Grants Management. The Office of 

Grants Management will review the alternative protocol to ensure that it: 

(1) Verifies the identity of the individual; and 

(2) Includes a search of an alternative 

criminal database that is sufficient to 

identify the existence, or absence of, 

criminal offenses. 

[72 FR 48583, Aug. 24, 2007] 

§ 2551.32 Is an individual who refuses 

to consent to a State criminal registry check, or who makes a false 

statement in connection with a grantee's inquiry concerning the individual's criminal history, eligible 

to serve in a covered position? 

An individual who refuses to consent 

to a State criminal registry check, or 

who makes a false statement in con­ nection with a grantee's inquiry concerning the individual's criminal history, is not eligible to serve in a covered position. 

[72 FR 48583, Aug. 24, 2007] 

§ 2551.33 May a sponsor administer more than one program grant from 

the Corporation? 

A sponsor may administer more than 

one Corporation program. 

[64 FR 14115, Mar. 24, 1999. Redesignated at 72 

FR 48583, Aug. 24, 2007] 

45 CFR Ch. XXV (10-1-12 Edition) 

Subpart C-Suspension and Termination of Corporation Assistance 

§ 2551.34 What are the rules on suspension, termination, and denial of re­ funding of grants? 

(a) The Chief Executive Officer or 

designee is authorized to suspend further payments or to terminate payments under any grant providing assistance under the Act whenever he/she 

determines there is a material failure 

to comply with applicable terms and 

conditions of the grant. The Chief Executive Officer shall prescribe procedures to insure that: 

(1) Assistance under the Act shall not 

be suspended for failure to comply with 

applicable terms and conditions, except 

in emergency situations for thirty 

days; 

(2) An application for refunding 

under the Act may not be denied unless 

the recipient has been given: 

(i) Notice at least 75 days before the 

denial of such application of the possibility of such denial and the grounds 

for any such denial; and 

(ii) Opportunity to show cause why 

such action should not be taken; 

(3) In any case where an application 

for refunding is denied for failure to 

comply with the terms and conditions 

of the grant, the recipient shall be afforded and opportunity for an informal 

hearing before an impartial hearing officer, who has been agreed to by the re­ cipient and the Corporation; and 

(4) Assistance under the Act shall not 

be terminated for failure to comply 

with applicable terms and conditions 

unless the recipient has been afforded 

reasonable notice and opportunity for a 

full and fair hearing. 

(b) In order to assure equal access to 

all recipients, such hearings or other 

meetings as may be necessary to fulfill 

the requirements of this section shall 

be held in locations convenient to the 

recipient agency. 

(c) The procedures for suspension, 

termination, and denial of refunding, 

that apply to the Senior Companion 

Program are specified in 45 CFR Part 

1206. 

[64 FR 14115, Mar. 24, 1999. Redesignated at 72 

FR 48583, Aug. 24, 2007] 

784 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2551.44 

Subpart D-Senior Companion Eligibility, Status, and Cost Reimbursements 

§ 2551.41 Who is eligible to be a Senior 

Companion? 

(a) To be a Senior Companion, an individual must: 

(1) Be 55 years of age or older; 

(2) Be determined by a physical ex­ amination to be capable, with or without reasonable accommodation, of 

serving adults with special needs without detriment to either himself/herself or the adults served; 

(3) Agree to abide by all requirements as set forth in this part; and 

(4) In order to receive a stipend, have an income that is within the income 

eligibility guidelines specified in this 

subpart D. 

(b) Eligibility to be a Senior Companion shall not be restricted on the 

basis of formal education, experience, 

race, religion, color, national origin, 

sex, age, handicap, or political affiliation. 

[64 FR 14115, Mar. 24, 1999, as amended at 74 

FR 46508, Sept. 10, 2009] 

§ 2551.42 What types of criminal con­ victions or other adjudications disqualify an individual from serving as a Senior Companion or as a Senior Companion grant-funded em­ ployee? 

Any individual who is registered, or who is required to be registered, on a State sex offender registry, or who has 

been convicted of murder, as defined 

under Federal law in section 1111 of 

title 18, United States Code, is deemed 

unsuitable for, and may not serve in, a position as a Senior Companion or as a Senior Companion grant-funded em­ ployee. 

[74 FR 46508, Sept. 10, 2009] 

§ 2551.43 What income guidelines gov­ ern eligibility to serve as a stipended Senior Companion? 

(a) To receive a stipend, a Senior 

Companion may not have an annual in­ come from all sources, after deducting 

allowable medical expenses, which ex­ ceeds the program's income eligibility 

guideline for the State in which he or she resides. The income eligibility 

guideline for each State is 200 percent 

of the poverty line, as set forth in 42 

u.s.c. 9902 (2). 

(b) For applicants to become 

stipended Senior Companions, annual 

income is projected for the following 12 

months, based on income at the time of 

application. For serving stipended Senior Companions, annual income is 

counted for the past 12 months. Annual 

income includes the applicant or en­ rollee's income and that of his/her 

spouse, if the spouse lives in the same residence. Sponsors shall count the 

value of shelter, food, and clothing, if 

provided at no cost by persons related 

to the applicant, enrollee, or spouse. 

(c) Allowable medical expenses are annual out-of-pocket medical expenses 

for health insurance premiums, health care services, and medications provided 

to the applicant, enrollee, or spouse 

which were not and will not be paid by 

Medicare, Medicaid, other insurance, or other third party payor, and which 

do not exceed 50 percent of the applicable income guideline. 

(d) Applicants whose income is not more than 100 percent of the poverty 

line shall be given special consideration for enrollment. 

(e) Once enrolled, a Senior Companion shall remain eligible to serve and to receive a stipend so long as his or her income, does not exceed the applicable income eligibility guideline by 

20 percent. 

[64 FR 14115, Mar. 24, 1999, as amended at 67 

FR 60998, Sept. 27, 2002; 69 FR 20830, Apr. 19, 

2004; Redesignated at 72 FR 48584, Aug. 24, 

2007; 74 FR 46508, Sept. 10, 2009] 

§ 2551.44 What is considered income 

for determining volunteer eligibility? 

(a) For determining eligibility, "income" refers to total cash or in-kind 

receipts before taxes from all sources including: 

(1) Money, wages, and salaries before 

any deduction, but not including food or rent in lieu of wages; 

(2) Receipts from self-employment or from a farm or business after deductions for business or farm expenses; 

(3) Regular payments for public as­ sistance, Social Security, Unemployment or Workers Compensation, strike 

benefits, training stipends, alimony, 

785 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2551.45 

child support, and military family allotments, or other regular support 

from an absent family member or someone not living in the household; 

(4) Government employee pensions, 

private pensions, and regular insurance or annuity payments; and 

(5) Income from dividends, interest, 

net rents, royalties, or income from es­ tates and trusts. 

(b) For eligibility purposes, income 

does not refer to the following money 

receipts: 

(1) Any assets drawn down as withdrawals from a bank, sale of property, 

house or car, tax refunds, gifts, one­ time insurance payments or compensation from injury; 

(2) Non-cash income, such as the 

bonus value of food and fuel produced 

and consumed on farms and the imputed value of rent from owner-occu­ pied farm or non-farm housing. 

[64 FR 14115, Mar. 24, 1999. Redesignated at 72 

FR 48584, Aug. 24, 2007] 

§ 2551.45 Is a Senior Companion a federal employee, an employee of the 

sponsor or of the volunteer station? 

Senior Companions are volunteers, 

and are not employees of the sponsor, 

the volunteer station, the Corporation, or the Federal Government. 

[64 FR 14115, Mar. 24, 1999. Redesignated at 72 

FR 48584, Aug. 24, 2007] 

§ 2551.46 What cost reimbursements are provided to Senior Companions? 

Cost reimbursements include: 

(a) Stipend. Senior Companions who are income eligible will receive a stipend in an amount determined by the 

Corporation and payable in regular installments, to enable them to serve without cost to themselves. The stipend is paid for the time Senior Companions spend with their assigned clients, for earned leave, and for attend­ ance at official project events. 

(b) Insurance. A Senior Companion is 

provided with the Corporation-specified minimum levels of insurance as follows: 

(1) Accident insurance. Accident insur­ ance covers Senior Companions for personal injury during travel between 

their homes and places of assignment, 

during their volunteer service, during 

45 CFR Ch. XXV (10-1-12 Edition) 

meal periods while serving as a volunteer, and while attending project-sponsored activities. Protection shall be 

provided against claims in excess of 

any benefits or services for medical care or treatment available to the volunteer from other sources. 

(2) Personal liability insurance. Protection is provided against claims in ex­ cess of protection provided by other in­ surance. It does not include professional liability coverage. 

(3) Excess automobile liability insurance. (i) For Senior Companions who 

drive in connection with their service, 

protection is provided against claims 

in excess of the greater of either: 

(A) Liability insurance volunteers 

carry on their own automobiles; or 

(B) The limits of applicable state financial responsibility law, or in its absence, levels of protection to be determined by the Corporation for each person, each accident, and for property 

damage. 

(ii) Senior Companions who drive 

their personal vehicles to or on assignments or project-related activities 

must maintain personal automobile liability insurance equal to or exceeding 

the levels established by the Corporation. 

(c) Transportation. Senior Companions shall receive assistance with the 

cost of transportation to and from volunteer assignments and official project 

activities, including orientation, training, and recognition events. 

(d) Physical examination. Senior Companions are provided a physical exam­ ination prior to assignment and annu­ ally thereafter to ensure that they will 

be able to provide supportive service 

without injury to themselves or the 

clients served. 

(e) Meals and recognition. Senior Companions shall be provided the following 

within limits of the project's available resources: 

(1) Assistance with the cost of meals 

taken while on assignment; and 

(2) Recognition for their service. 

(f) Leadership incentive. Senior Companions who serve as volunteer leaders, 

assisting new Senior Companions or co­ ordinating other Senior Companions in 

accordance with the Act, may be paid a monetary incentive. 

786 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2551.62 

(g) Other volunteer expenses. Senior 

Companions may be reimbursed for ex­ penses incurred while performing their 

volunteer assignments provided these 

expenses are described in the Memorandum of Understanding negotiated 

with the volunteer station to which the 

volunteer is assigned, and there are sufficient funds available to cover these expenses and meet all other re­ quirements identified in the notice of 

grant award. 

[64 FR 14115, Mar. 24, 1999, as amended at 67 

FR 60998, Sept. 27, 2002; 69 FR 20830, Apr. 19, 

2004. Redesignated at 72 FR 48584, Aug. 24, 

2007] 

§2551.47 May the cost reimbursements 

of a Senior Companion be subject to 

any tax or charge, be treated as wages or compensation, or affect 

eligibility to receive assistance from 

other programs? 

No. Senior Companion's cost reimbursements are not subject to any tax or charge or treated as wages or com­ pensation for the purposes of unem­ ployment insurance, worker's com­ pensation, temporary disability, retirement, public assistance, or similar benefit payments or minimum wage laws. 

Cost reimbursements are not subject to 

garnishment and do not reduce or eliminate the level of, or eligibility for, 

assistance or services a Senior Companion may be receiving under any 

governmental program. 

[64 FR 14115, Mar. 24, 1999. Redesignated at 72 

FR 48584, Aug. 24, 2007] 

Subpart E-Senior Companion 

Terms of Service 

§ 2551.51 What are the terms of service 

of a Senior Companion? 

A Senior Companion shall serve a minimum of 15 hours per week and a maximum of 40 hours per week. A Senior Companion shall not serve more than 2088 hours per year. Within these 

limitations, a sponsor may set service 

policies consistent with local needs. 

[67 FR 60998, Sept. 27, 2002] 

§ 2551.52 What factors are considered 

in determining a Senior Companion's service schedule? 

ment is not part of the service schedule 

and is not stipended. 

(b) Travel time between individual 

assignments is a part of the service 

schedule and is stipended. 

(c) Meal time may be part of the 

service schedule and is stipended only 

if it is specified in the goal statement as part of the service activity. 

§ 2551.53 Under what circumstances 

may a Senior Companion's service 

be terminated? 

(a) A sponsor may remove a Senior 

Companion from service for cause. Grounds for removal include but are not limited to: extensive and unauthorized absences; misconduct; inability to 

perform assignments; and failure to ac­ cept supervision. A Senior Companion 

may also be removed from service for 

having income in excess of the eligibility level. 

(b) The sponsor shall establish appropriate policies on service termination as well as procedures for appeal from 

such adverse action. 

Subpart F-Responsibilities of a 

Volunteer Station 

§ 2551.61 May a sponsor serve as a volunteer station? 

Yes, a sponsor may serve as a volunteer station, provided this is part of 

the application workplan approved by 

the Corporation. 

[67 FR 60999, Sept. 27, 2002] 

§ 2551.62 What are the responsibilities 

of a volunteer station? 

A volunteer station shall undertake 

the following responsibilities in support of Senior Companion volunteers: 

(a) Develop volunteer assignments 

that meet the requirements specified 

in §§ 2551. 71 through 2551. 72, and regularly assess those assignments for con­ tinued appropriateness. 

(b) Select eligible clients for assigned 

volunteers. 

(c) Develop a written volunteer as­ signment plan for each client that 

identifies the role and activities of the 

Senior Companion and expected out­ comes for the client served. 

(a) Travel time between the Senior (d) Obtain a Letter of Agreement for 

Companion's home and place of assign- Senior Companions assigned in-home. 

787 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2551.71 

This letter must comply with all Federal, State and local regulations. 

(e) Provide Senior Companions serv­ ing the station with: 

(1) Orientation to the station and any 

in-service training necessary to en­ hance performance of assignments; 

(2) Resources required for perform­ ance of assignments including reason­ able accommodation; and 

(3) Appropriate recognition. 

(f) Designate a staff member to over­ see fulfillment of station responsibilities and supervision of Senior Companions while on assignment. 

(g) Keep records and prepare reports 

required by the sponsor. 

(h) Provide for the safety of Senior 

Companions assigned to it. 

(i) Comply with all applicable civil 

rights laws and regulations including 

reasonable accommodation for Senior 

Companions with disabilities. 

(j) Undertake such other responsibilities as may be necessary to the suc­ cessful performance of Senior Companions in their assignments or as agreed 

to in the Memorandum of Understanding. 

Subpart G-Senior Companion 

Placements and Assignments 

§2551.71 What requirements govern 

the assignment of Senior Companions? 

(a) Senior Companion assignments 

shall provide for Senior Companions to 

give direct services to one or more eligible adults that: 

(1) Result in person-to-person supportive relationships with each client 

served. 

(2) Support the achievement and 

maintenance of the highest level of 

independent living for their clients. 

(3) Are meaningful to the Senior 

Companion. 

(4) Are supported by appropriate orientation, training, and supervision. 

(b) Senior Companions may serve as volunteer leaders, and in this capacity 

may provide indirect services. Senior 

Companions with special skills or demonstrated leadership ability may assist newer Senior Companion volunteers in 

performing their assignments and in 

coordinating activities of such volunteers. 

45 CFR Ch. XXV (10-1-12 Edition) 

(c) Senior Companions shall not provide services such as those performed 

by medical personnel, services to large 

numbers of clients, custodial services, 

administrative support services, or 

other services that would detract from 

their assignment. 

[67 FR 60999, Sept. 27, 2002] 

§2551.72 Is a written volunteer assignment plan required for each volunteer? 

(a) All Senior Companions performing direct services to individual 

clients in home settings and individual 

clients in community-based settings, 

shall receive a written volunteer assignment plan developed by the volunteer station that: 

(1) Is approved by the sponsor and accepted by the Senior Companion; 

(2) Identifies the client(s) to be 

served; 

(3) Identifies the role and activities 

of the Senior Companion and expected 

outcomes for the client(s); 

(4) Addresses the period of time each 

client is expected to receive such services; and 

(5) Is used to review the status of the 

Senior Companion's services in working with the assigned client(s), as well 

as the impact of the assignment on the 

client(s). 

(b) If there is an existing plan that 

incorporates paragraphs (a)(2), (3), and 

(4) of this section, that plan shall meet 

the requirement. 

(c) All Senior Companions serving as 

volunteer leaders shall receive a written volunteer assignment plan developed by the volunteer station that: 

(1) Is approved by the sponsor and accepted by the Senior Companion; 

(2) Identifies the role and activities 

of the Senior Companion and expected 

outcomes; 

(3) Addresses the period of time of 

service; and 

(4) Is used to review the status of the 

Senior Companion's services identified 

in the assignment plan, as well as the 

impact of those services. 

[67 FR 60999, Sept. 27, 2002] 

788 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2551.92 

Subpart H-Clients Served 

§ 2551.81 What type of clients are eligible to be served? 

Senior Companions serve only adults, 

primarily older adults, who have one or more physical, emotional, or mental 

health limitations and are in need of 

assistance to achieve and maintain 

their highest level of independent living. 

Subpart I-Application and Fiscal 

Requirements 

§ 2551.91 What is the process for application and award of a grant? 

(a) How and when may an eligible organization apply for a grant? (1) An eligible organization may file an application for a grant at any time. 

(2) Before submitting an application an applicant shall determine the availability of funds from the Corporation. 

(3) The Corporation may also solicit 

grant applicants. Applicants solicited 

under this provision are not assured of 

selection or approval and may have to 

compete with other solicited or unso­ licited applications. 

(b) What must an eligible organization 

include in a grant application? (1) An applicant shall complete standard forms 

prescribed by the Corporation. 

(2) The applicant shall comply with 

the provisions of Executive Order 12372, 

"Intergovernmental Review of Federal 

Programs," (3 CFR, 1982 Comp., p. 197) 

in 45 CFR part 1233 and any other applicable requirements. 

(c) Who reviews the merits of an application and how is a grant awarded? (1) 

The Corporation reviews and determines the merit of an application by 

its responsiveness to published guidelines and to the overall purpose and objectives of the program. When funds are available, the Corporation awards a grant in writing to each applicant 

whose grant proposal provides the best 

potential for serving the purpose of the 

program. The award will be documented by Notice of Grant Award 

(NGA). 

(2) The Corporation and the sponsoring organization are the parties to 

the NGA. The NGA will document the 

sponsor's commitment to fulfill specific programmatic objectives and financial obligations. It will document 

the extent of the Corporation's obligation to provide financial support to the 

sponsor. 

(d) What happens if the Corporation rejects an application? The Corporation 

will return to the applicant an application that is not approved for funding, 

with an explanation of the Corporation's decision. 

(e) For what period of time does the 

Corporation award a Senior Companion 

grant? The Corporation awards a Senior 

Companion grant for a specified period 

that is usually 12 months in duration. 

§ 2551.92 What are project funding re­ quirements? 

(a) Is non-Corporation support required? A Corporation grant may be 

awarded to fund up to 90 percent of the 

cost of development and operation of a Senior Companion project. The sponsor 

is required to contribute at least 10 

percent of the total project cost from 

non-Federal sources or authorized Federal sources. (b) Under what circumstances does the 

Corporation allow less than the 10 percent 

non-Corporation support? The Corporation may allow exceptions to the 10 

percent local support requirement in 

cases of demonstrated need such as: (1) Initial difficulties in the development of local funding sources during 

the first three years of operations; or (2) An economic downturn, the occur­ rence of a natural disaster, or similar 

events in the service area that severely 

restrict or reduce sources of local funding support; or (3) The unexpected discontinuation of 

local support from one or more sources that a project has relied on for a period 

of years. 

(c) May the Corporation restrict how a 

sponsor uses locally generated contributions in excess of the 10 percent non-Corporation support required? Whenever locally generated contributions to Senior 

Companion projects are in excess of the 

minimum 10 percent non-Corporation 

support required, the Corporation may 

not restrict the manner in which such 

contributions are expended provided 

such expenditures are consistent with 

the provisions of the Act. 

(d) Are program expenditures subject to 

audit? All expenditures by the grantee 

789 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2551.93 

of Federal and non-Federal funds, including expenditures from excess locally generated contributions in support of the grant are subject to audit 

by the Corporation, its Inspector General, or their authorized agents. 

(e) How are Senior Companion cost reimbursements budgeted? (1) Except as provided in (e)(2) of this section, the 

total of cost reimbursements for Senior 

Companions, including stipends, insurance, transportation, meals, physical 

examinations, and recognition, shall be a sum equal to at least 80 percent of 

the amount of the Federal share of the 

grant award. Federal, required non­ Federal, and excess non-Federal re­ sources can be used to make up the 

amount allotted for cost reimbursements. 

(2) The Corporation may allow exceptions to the 80 percent cost reimbursement requirement in cases of demonstrated need such as: 

(i) Initial difficulties in the development of local funding sources during 

the first three years of operations; 

(ii) An economic downturn, the oc­ currence of a natural disaster, or similar events in the service area that se­ verely restrict or reduce sources of 

local funding support; or 

(iii) The unexpected discontinuation 

of local support from one or more sources that a project has relied on for a period of years. 

(f) May a sponsor pay stipends at a rate 

different than the rate established by the 

Corporation? A sponsor shall pay stipends at the same rate as that established by the Corporation. 

[64 FR 14115, Mar. 24, 1999, as amended at 75 

FR 51415, Aug. 20, 2010] 

§ 2551.93 What are grants management 

requirements? 

What rules govern a sponsor's man­ agement of grants? 

(a) A sponsor shall manage a grant in 

accordance with: 

(1) The Act; 

(2) Regulations in this part; 

(3) 45 CFR Part 2541, "Uniform Administrative Requirements for Grants 

and Cooperative Agreements to State 

and Local Governments", or 45 CFR 

Part 2543, "Grants and Agreements 

with Institutions of Higher Education, 

45 CFR Ch. XXV (10-1-12 Edition) 

Hospitals, and Other Non-Profit Organizations'; 

(4) The following 0MB Circulars, as appropriate A-21, "Cost Principles for 

Educational Institution", A-87, "Cost 

Principles for State, Local and Indian 

Tribal Governments", A-122, "Cost 

Principles for Non-Profit Organizations", and A-133, "Audits of States, 

Local Governments, and Other NonProfit Organizations" (0MB circulars are available electronically at the 0MB 

homepage www.whitehouse.gov/WHIEOPI 

omb); and 

(5) Other applicable Corporation re­ quirements. 

(b) Project support provided under a Corporation grant shall be furnished at 

the lowest possible cost consistent 

with the effective operation of the 

project. 

(c) Project costs for which Corporation funds are budgeted must be justified as being necessary and essential to 

project operation. 

(d) Volunteer expense items, including transportation, meals, recognition 

activities and items purchased at the 

volunteers' own expense and which are not reimbursed, are not allowable as contributions to the non-Federal share 

of the budget. 

(e) Costs of other insurance not re­ quired by program policy, but maintained by a sponsor for the general con­ duct of its activities are allowable with 

the following limitations: 

(1) Types and extent of and cost of 

coverage are according to sound institutional and business practices; 

(2) Costs of insurance or a contribution to any reserve covering the risk of 

loss of or damage to Governmentowned property are unallowable unless 

the government specifically requires 

and approves such costs; and 

(3) The cost of insurance on the lives 

of officers, trustees or staff is unallowable except where such insurance is 

part of an employee plan which is not 

unduly restricted. 

(f) Costs to bring a sponsor into basic 

compliance with accessibility requirements for individuals with disabilities are not allowable costs. 

(g) Payments to settle discrimination 

allegations, either informally through a settlement agreement or formally as 

790 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2551.111 

a result of a decision finding discrimination, are not allowable costs. 

(h) Written Corporation approval/ 

concurrence is required for the following changes in the approved grant: 

(1) Reduction in budgeted volunteer 

service years. 

(2) Change in the service area. 

(3) Transfer of budgeted line i terns 

from Volunteer Expenses to Support 

Expenses. This requirement does not 

apply if the 80 percent volunteer cost 

reimbursement ratio is maintained. 

[64 FR 14115, Mar. 24, 1999, as amended at 69 

FR 20830, Apr. 19, 2004] 

Subpart J-Non-Stipended Senior 

Companions 

§ 2551.101 What rule governs the re­ cruitment and enrollment of per­ sons who do not meet the income 

eligibility guidelines to serve as Senior Companions without stipends? 

Over-income persons, age 55 or over, 

may be enrolled in SCP projects as 

non-stipended volunteers in commu­ nities where there is no RSVP project 

or where agreement is reached with the 

RSVP project that allows for the enrollment of non-stipended volunteers in 

the SCP project. 

[64 FR 14115, Mar. 24, 1999, as amended at 74 

FR 46508, Sept. 10, 2009] 

§ 2551.102 What are the conditions of 

service of non-stipended Senior 

Companions? 

Non-stipended Senior Companions serve under the following conditions: 

(a) They must not displace or prevent 

eligible low-income individuals from 

becoming Senior Companions. 

(b) No special privilege or status is 

granted or created among Senior Companions, stipended or non-stipended, 

and equal treatment is required. 

(c) Training, supervision, and other 

support services and cost reimbursements, other than the stipend, are available equally to all Senior Companions. 

(d) All regulations and requirements 

applicable to the program, with the ex­ ception listed in paragraph (f) of this 

(e) Non-stipended Senior Companions 

may be placed in separate volunteer 

stations where warranted. 

(f) Non-stipended Senior Companions 

will be encouraged but not required to 

serve an average of 20 hours per week 

and nine months per year. Senior Companions will maintain a close personto-person relationship with their assigned special needs clients on a regular basis. 

(g) Non-stipended Senior Companions 

may contribute the costs they incur in 

connection with their participation in 

the program. Such contributions are 

not counted as part of the required 

non-federal share of the grant but may 

be reflected in the budget column for 

excess non-federal resources. 

§ 2551.103 Must a sponsor be required 

to enroll non-stipended Senior Companions? 

Enrollment of non-stipended Senior 

Companions is not a factor in the 

award of new or continuation grants. 

§ 2551.104 May Corporation funds be 

used for non-stipended Senior Companions? 

Federally appropriated funds for SCP 

shall not be used to pay any cost, including any administrative cost, incurred in implementing the regulations 

in this part for non-stipended Senior 

Companions. 

Subpart K-Non-Corporation 

Funded SCP Projects 

§2551.111 Under what conditions can an agency or organization sponsor a Senior Companion project without Corporation funding? 

An eligible agency or organization 

who wishes to sponsor a Senior Companion project without Corporation 

funding, must sign a Memorandum of 

Agreement with the Corporation that: 

(a) Certifies its intent to comply with 

all Corporation requirements for the 

Senior Companion Program; and 

(b) Identifies responsibilities to be 

carried out by each party. 

section, apply to all Senior Companions. 

791 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2551.112 

§ 2551.112 What benefits are a non­ Corporation funded project entitled 

to? 

The Memorandum of Agreement entitles the sponsor of a non-Corporation 

funded project to: 

(a) All technical assistance and ma­ terials provided to Corporation-funded 

Senior Companion projects; and 

(b) The application of the provisions 

of 42 U.S.C. 5044 and 5058. 

§ 2551.113 What f'mancial obligation 

does the Corporation incur for non­ Corporation funded projects? 

Entry into a Memorandum of Agreement with, or issuance of an NGA to a sponsor of a non-Corporation funded 

project, does not create a financial obligation on the part of the Corporation 

for any costs associated with the 

project, including increases in required 

payments to Senior Companion's that 

may result from changes in the Act or in program regulations. 

§ 2551.114 What happens if a non-Corporation funded sponsor does not 

comply with the Memorandum of 

Agreement? 

A non-Corporation funded project 

sponsor's noncompliance with the 

Memorandum of Agreement may result 

in suspension or termination of the 

Corporation's agreement and all benefits specified in § 2551.112. 

Subpart L-Restrictions and Legal 

Representation 

§ 2551.121 What legal limitations apply 

to the operation of the Senior Companion Program and to the expenditure of grant funds? 

(a) Political activities. (1) No part of 

any grant shall be used to finance, directly or indirectly, any activity to influence the outcome of any election to 

public office, or any voter registration 

activity. 

(2) No project shall be conducted in a manner involving the use of funds, the 

provision of services, or the employment or assignment of personnel in a matter supporting or resulting in the 

identification of such project with: 

(i) Any partisan or nonpartisan political activity associated with a can45 CFR Ch. XXV (10-1-12 Edition) 

didate, or contending faction or group, 

in an election; or (ii) Any activity to provide voters or prospective voters with transportation 

to the polls or similar assistance in 

connection with any such election; or (iii) Any voter registration activity, 

except that voter registration applications and nonpartisan voter registration information may be made available to the public at the premises of 

the sponsor. But in making registration applications and nonpartisan 

voter registration information available, employees of the sponsor shall 

not express preferences or seek to influence decisions concerning any can­ didate, political party, election issue, or voting decision. 

(3) The sponsor shall not use grant 

funds in any activity for the purpose of 

influencing the passage or defeat of 

legislation or proposals by initiative 

petition, except: 

(i) In any case in which a legislative 

body, a committee of a legislative 

body, or a member of a legislative body 

requests any volunteer in, or employee 

of such a program to draft, review or testify regarding measures or to make 

representation to such legislative body, 

committee or member; or (ii) In connection with an authorization or appropriations measure directly 

affecting the operation of the Senior 

Companion Program. 

(b) Non-displacement of employed work­ ers. A Senior Companion shall not perform any service or duty or engage in 

any activity which would otherwise be 

performed by an employed worker or which would supplant the hiring of or result in the displacement of employed 

workers, or impair existing contracts 

for service. 

(c) Compensation for service. (1) An 

agency or organization to which NSSC 

volunteers are assigned or which operates or supervises any NSSC program 

shall not request or receive any com­ pensation from NSSC volunteers or from beneficiaries for services of NSSC 

volunteers. 

(2) This section does not prohibit a sponsor from soliciting and accepting 

voluntary contributions from the com­ munity at large to meet its local support obligations under the grant or from entering into agreements with 

792 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service Pt. 2552 

parties other than beneficiaries to support additional volunteers beyond 

those supported by the Corporation 

grant. 

(3) A Senior Companion volunteer 

station may contribute to the financial 

support of the Senior Companion Program. However, this support shall not 

be a required precondition for a potential station to obtain Senior Companion service. 

(4) If a volunteer station agrees to 

provide funds to support additional 

Senior Companions or pay for other 

Senior Companion support costs, the 

agreement shall be stated in a written 

Memorandum of Understanding. The 

sponsor shall withdraw services if the 

station's inability to provide monetary or in-kind support to the project under 

the Memorandum of Understanding diminishes or jeopardizes the project's financial capabilities to fulfill its obligations. 

(5) Under no circumstances shall a Senior Companion receive a fee for 

service from service recipients, their 

legal guardian, members of their family, or friends. 

(d) Labor and anti-labor activity. The 

sponsor shall not use grant funds directly or indirectly to finance labor or anti-labor organization or related ac­ tivity. 

(e) Fair labor standards. A sponsor 

that employs laborers and mechanics 

for construction, alteration, or repair 

of facilities shall pay wages at prevailing rates as determined by the Secretary of Labor in accordance with the 

Davis-Bacon Act, as amended, 40 U.S.C. 

276a. 

(f) Nondiscrimination. A sponsor or sponsor employee shall not discriminate against a Senior Companion on the basis of race, color, national origin, 

sex, age, religion, or political affiliation, or on the basis of disability, if 

the Senior Companion with a disability 

is qualified to serve. (g) Religious activities. (1) A Senior 

Companion or a member of the project 

staff funded by the Corporation shall 

not give religious instruction, conduct 

worship services or engage in any form 

of proselytization as part of his or her 

duties. 

(2) A sponsor or volunteer station 

may retain its independence and may 

continue to carry out its mission, including the definition, development, 

practice, and expression of its religious 

beliefs, provided that it does not use Corporation funds to support any inherently religious activities, such as worship, religious instruction, or proselytization, as part of the programs or services funded. If an organization con­ ducts such activities, the activities 

must be offered separately, in time or location, from the programs or services 

funded under this part. 

(h) Nepotism. Persons selected for 

project staff positions shall not be re­ lated by blood or marriage to other 

project staff, sponsor staff or officers, or members of the sponsor Board of Directors, unless there is written concur­ rence from the community group es­ tablished by the sponsor under Subpart 

B of this part and with notification to 

the Corporation. 

[64 FR 14115, Mar. 24, 1999, as amended at 69 

FR 60095, Oct. 7, 2004] 

§ 2551.122 What legal coverage does 

the Corporation make available to 

Senior Companions? 

It is within the Corporation's discretion to determine if Counsel is em­ ployed and counsel fees, court costs, 

bail and other expenses incidental to 

the defense of a Senior Companion are paid in a criminal, civil or administrative proceeding, when such a proceeding arises directly out of perform­ ance of the Senior Companion's activities. The circumstances under which 

the Corporation shall pay such ex­ penses are specified in 45 CFR part 1220. 

PART 2552-FOSTER GRANDPARENT 

PROGRAM 

Subpart A-General 

Sec. 

2552.11 What is the Foster Grandparent Program? 

2552.12 Definitions. 

Subpart &-Eligibility and Responsibilities of 

a Sponsor 

2552.21 Who is eligible to serve as a sponsor? 

2552.22 What are the responsibilities of a 

sponsor? 

2552.23 What are a sponsor's program responsibilities? 

793 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Pt. 2552 

2552.24 What are a sponsor's responsibilities 

for securing community participation? 

2552.25 What are a sponsor's administrative 

responsibilities? 

2552.26 To whom does this part apply? 

2552.27 What two search components of the 

National Service Criminal History Check 

must I satisfy to determine an individual's suitability to serve in a covered position? 

2552.28 When must I conduct a State criminal registry check and a NSOPR check 

on an individual in a covered position? 

2552.29 What procedures must I follow in 

conducting a National Service Criminal 

History Check? 

2552.30 What documentation must I maintain regarding a National Service Criminal History Check? 

2552.31 Under what circumstances may I follow alternative procedures in conducting 

a State criminal registry check? 

2552.32 Is an individual who refuses to consent to a State criminal registry check, 

or who makes a false statement in connection with a grantee's inquiry concerning the individual's criminal history, 

eligible to serve in a covered position? 

2552.33 May a sponsor administer more than 

one program grant from the Corporation? 

Subpart C-Suspension and Termination of 

Corporation Assistance 

2552.34 What are the rules on suspension, 

termination, and denial of refunding of 

grants? (eff. until 11-22-07) 

Subpart D--Foster Grandparent Eligibility, 

status and Cost Reimbursements 

2552.41 Who is eligible to be a Foster Grandparent? 

2552.42 What types of criminal convictions 

or other adjudications disqualify an individual from serving as a Foster Grandparent or as a Foster Grandparent grantfunded employee? 

2552.43 What income guidelines govern eligibility to serve as a stipended Foster 

Grandparent? 

2552.44 What is considered income for determining volunteer eligibility? 

2552.45 Is a Foster Grandparent a federal 

employee, an employee of the sponsor or 

of the volunteer station? 

2552.46 What cost reimbursements are provided to Foster Grandparents? 

2552.47 May the cost reimbursements of a 

Foster Grandparent be subject to any tax 

or charge, be treated as wages or compensation, or affect eligibility to receive 

assistance from other programs? 

45 CFR Ch. XXV (10-1-12 Edition) 

Subpart E-Foster Grandparent Terms of 

Service 

2552.51 What are the terms of service of a Foster Grandparent? 

2552.52 What factors are considered in determining a Foster Grandparent's service 

schedule? 

2552.53 Under what circumstances may a Foster Grandparent's service be terminated? 

Subpart F-Responsibilities of a Volunteer 

Station 

2552.61 May a sponsor serve as a volunteer 

station? 

2552.62 What are the responsibilities of a 

volunteer station? 

Subpart G-Foster Grandparent 

Placements and Assignments 

2552.71 What requirements govern the assignment of Foster Grandparents? 

2552.72 Is a written volunteer assignment 

plan required for each volunteer? 

Subpart H--Children Served 

2552.81 What type of children are eligible to 

be served? 

2552.82 Under what circumstances may a Foster Grandparent continue to serve an individual beyond his or her 21st birthday? 

Subpart I-Application and Fiscal 

Requirements 

2552.91 What is the process for application 

and award of a grant? 

2552.92 What are project funding requirements? 

2552.93 What are grants management requirements? 

Subpart J-Non-Stipended Foster 

Grandparents 

2552.101 What rule governs the recruitment 

and enrollment of persons who do not 

meet the income eligibility guidelines to serve as Foster Grandparents without 

stipends? 

2552.102 What are the conditions of service 

of non-stipended Foster Grandparents? 

2552.103 Must a sponsor be required to enroll 

non-stipended Foster Grandparents? 

2552.104 May Corporation funds be used for 

non-stipended Foster Grandparents? 

Subpart K-Non-Corporation Funded Foster 

Grandparent Program Projects 

2552.111 Under what conditions can an agency or organization sponsor a Foster 

794 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2552.12 

Grandparent project without Corporation 

funding? 

2552.112 What benefits are a non-Corporation funded project entitled to? 

2552.113 What financial obligation does the 

Corporation incur for non-Corporation 

funded projects? 

2552.114 What happens if a non-Corporation 

funded sponsor does not comply with the 

Memorandum of Agreement? 

Subpart L-Restrictions and Legal 

Representation 

2552.121 What legal limitations apply to the 

operation of the Foster Grandparent Program and to the expenditure of grant 

funds? 

2552.122 What legal coverage does the Corporation make available to Foster 

Grandparents? 

AUTHORITY: 42 u.s.c. 4950 et seq.; 42 u.s.c. 

12651b-12651d; E.O. 13331, 69 FR 9911. 

SOURCE: 64 FR 14126, Mar. 24, 1999, unless 

otherwise noted. 

Subpart A-General 

§ 2552.11 What is the Foster Grandparent Program? 

The Foster Companion Program provides grants to qualified agencies and 

organizations for the dual purpose of 

engaging persons 55 and older, particularly those with limited incomes, in 

volunteer service to meet critical com­ munity needs; and to provide a high 

quality experience that will enrich the 

lives of the volunteers. Program funds are to be used to support Foster Grandparents in providing supportive, person 

to person service to children with ex­ ceptional needs, or in circumstances 

that limit their academic, social, or emotional development. 

[74 FR 46508, Sept. 10, 2009] 

§ 2552.12 Definitions. 

(a) Act. The Domestic Volunteer 

Service Act of 1973, as amended, Pub. 

L. 93--113, Oct. l, 1973, 87 Stat. 396, 42 

U.S.C. 4950 et seq. 

(b) Adequate staffing level. The num­ ber of project staff or full-time equivalent needed by a sponsor to manage 

NSSC project operations considering 

such factors as: number of budgeted 

volunteers/Volunteer Service Years 

(VSYs), number of volunteer stations, 

and the size of the service area. 

(c) Annual income. Total cash and inkind receipts from all sources over the 

preceding 12 months including: the applicant or enrollee's income and, the 

applicant or enrollee's spouse's income, 

if the spouse lives in the same residence. The value of shelter, food, and 

clothing, shall be counted if provided 

at no cost by persons related to the applicant/enrollee, or spouse. 

(d) Chief Executive Officer. The Chief 

Executive Officer of the Corporation 

appointed under the National and Community Service Act of 1990, as amended, (NCSA), 42 U.S.C. 12501 et seq. 

(e) Child. Any individual who is less 

than 21 years of age. 

(f) Children having exceptional needs. 

Children who are developmentally disabled, such as those who are autistic, 

have cerebral palsy or epilepsy, are visually impaired, speech impaired, hearing impaired, orthopedically impaired, are emotionally disturbed or have a language disorder, specific learning 

disability, have multiple disabilities, 

other significant health impairment or have literacy needs. Existence of a child's exceptional need shall be 

verified by an appropriate professional, 

such as a physician, psychiatrist, psychologist, registered nurse or licensed 

practical nurse, speech therapist or educator before a Foster Grandparent is 

assigned to the child. 

(g) Children with special needs. Children who are abused or neglected; in 

need of foster care; adjudicated youth; 

homeless youths; teen-age parents; and 

children in need of protective intervention in their homes. Existence of a child's special need shall be verified by an appropriate professional before a Foster Grandparent is assigned to the 

child. 

(h) Corporation. The Corporation for 

National and Community Service es­ tablished under the NCSA. The Corporation is also sometimes referred to as CNCS. 

(i) Cost reimbursements. Reimbursements provided to volunteers such as stipends to cover incidental costs, 

meals, and transportation, to enable 

them to serve without cost to themselves. Also included are the costs of 

annual physical examinations, volunteer insurance and recognition which are budgeted as Volunteer Expenses. 

795 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2552.12 

(j) In-home. The non-institutional as­ signment of a Foster Grandparent in a private residence or a foster home. 

(k) Letter of Agreement. A written 

agreement between a volunteer station, the sponsor and the parent or per­ sons legally responsible for the child 

served by the Foster Grandparent. It 

authorizes the assignment of a Foster 

Grandparent in the child's home, defines the Foster Grandparent's activities and delineates specific arrangements for supervision. 

(1) Memorandum of Understanding. A 

written statement prepared and signed 

by the Foster Grandparent project 

sponsor and the volunteer station that 

identifies project requirements, working relationships and mutual responsibilities. 

(m) National Senior Service Corps 

(NSSC). The collective name for the 

Foster Grandparent Program (FGP), 

the Retired and Senior Volunteer Program (RSVP), the Senior Companion 

Program (SCP), and Demonstration 

Programs established under Title II 

Parts A, B, C, and E, of the Act. NSSC 

is also referred to as the "Senior 

Corps". 

(n) Non-Corporation support (required). 

The percentage share of non-Federal 

cash and in-kind contributions, re­ quired to be raised by the sponsor in 

support of the grant. 

(o) Non-Corporation support (excess). 

The amount of non-Federal cash and 

in-kind contributions generated by a sponsor in excess of the required percentage. 

(p) Parent. A natural parent or a per­ son acting in place of a natural parent, 

such as a guardian, a child's natural 

grandparent, or a step-parent with 

whom the child lives. The term also includes otherwise unrelated individuals 

who are legally responsible for a child's 

welfare. 

(q) Project. The locally planned and 

implemented Foster Grandparent Program activity or set of activities as agreed upon between a sponsor and the 

Corporation. 

(r) Qualified individual with a disability. An individual with a disability 

(as defined in the Rehabilitation Act, 

29 U.S.C. 705 (20)) who, with or without 

45 CFR Ch. XXV (10-1-12 Edition) 

teer position that such individual holds or desires. If a sponsor has prepared a written description before advertising or interviewing applicants for the position, the written description may be 

considered evidence of the essential 

functions of the volunteer position. 

(s) Service area. The geographically 

defined area in which Foster Grandparents are recruited, enrolled, and 

placed on assignments. 

(t) Service schedule. A written delineation of the days and times a Foster 

Grandparent serves each week. 

(u) Sponsor. A public agency or private non-profit organization, either 

secular or faith-based, that is responsible for the operation of a Foster 

Grandparent project. 

(v) Stipend. A payment to Foster 

Grandparents to enable them to serve without cost to themselves. The 

amount of the stipend is determined by 

the Corporation and is payable in regular installments. The mm1mum 

amount of the stipend is set by law and 

shall be adjusted by the CEO from time 

to time. 

(w) Trust Act. The National and Community Service Trust Act of 1993, Pub. 

L. 103--82, Sept. 21, 1993, 107 Stat. 785. 

(x) United States and States. Each of 

the several States, the District of Columbia, the U.S. Virgin Islands, the 

Commonwealth of Puerto Rico, Guam 

and American Samoa, and Trust Territories of the Pacific Islands. 

(y) Volunteer assignment plan. A written description of a Foster Grandparent's assignment with a child. The 

plan identifies specific outcomes for 

the child served and the activities of 

the Foster Grandparent. 

(z) Volunteer station. A public agency, 

secular or faith-based private non-profit organization, or proprietary health 

care organization that accepts the re­ sponsibility for assignment and supervision of Foster Grandparents in 

health, education, social service or re­ lated settings such as multi-purpose 

centers, home health care agencies, or similar establishments. Each volunteer 

station must be licensed or otherwise 

certified, when required, by the appropriate state or local government. Private homes are not volunteer stations. 

reasonable accommodation, can per­ [64 FR 14126, Mar. 24, 1999, as amended at 69 

form the essential functions of a volun- FR 60095, Oct. 7, 2004] 

796 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2552.23 

Subpart B-Eligibility and 

Responsibilities of a Sponsor 

§ 2552.21 Who is eligible to serve as a sponsor? 

The Corporation awards grants to 

public agencies, including Indian tribes 

and non-profit private organizations, 

both secular and faith-based, in the 

United States that have the authority 

to accept and the capability to administer a Foster Grandparent project. 

[69 FR 60095, Oct. 7, 2004] 

§ 2552.22 What are the responsibilities 

of a sponsor? 

A sponsor is responsible for fulfilling 

all project management requirements 

necessary to accomplish the purposes 

of the Foster Grandparent Program as specified in the Act. A sponsor shall 

not delegate or contract these responsibilities to another entity. A sponsor 

shall comply with all program regulations and policies, and grant provisions 

prescribed by the Corporation. 

§ 2552.23 What are a sponsor's program responsibilities? 

A sponsor shall: 

(a) Focus Foster Grandparent re­ sources on providing supportive serv­ ices and companionship to children 

with special and exceptional needs, or in circumstances that limit their aca­ demic, social, or emotional development within the project's service area. (b) Assess in collaboration with other 

community organizations or utilize ex­ isting assessment of the needs of the 

client population in the community 

and develop strategies to respond to 

those needs using the resources of Foster Grandparents. 

(c) Develop and manage a system of 

volunteer stations by: 

(1) Ensuring that a volunteer station 

is a public or non-profit private organization, whether secular or faith-based, or an eligible proprietary health care agency, capable of serving as a volunteer station for the placement of Foster Grandparents; 

(2) Ensuring that the placement of 

Foster Grandparents will be governed 

by a Memorandum of Understanding: 

(i) That is negotiated prior to placement; 

(ii) That specifies the mutual responsibilities of the station and sponsor; 

(iii) That is renegotiated at least 

every three years; and 

(iv) That states the station assures it 

will not discriminate against Foster 

Grandparents or in the operation of its 

program on the basis of race; color; na­ tional or1grn, including individuals 

with limited English proficiency; sex; 

age; political affiliation; religion; or on the basis of disability, if the participant or member is a qualified individual with a disability; and 

(3) Reviewing volunteer placements 

regularly to ensure that clients are eligible to be served. 

(d) Develop Foster Grandparent serv­ ice opportunities to support locallyidentified needs of eligible children in a way that considers the skills and experiences of Foster Grandparents. 

(e) Consider the demographic makeup of the project service area in the en­ rollment of Foster Grandparents, taking special efforts to recruit eligible individuals from minority groups, per­ sons with disabilities, and under-represented groups. 

(f) Provide Foster Grandparents with 

assignments that show direct and demonstrable benefits to the children and 

the community served, the Foster 

Grandparents, and the volunteer station; with required cost reimbursements specified in §2552.46; with not 

less than 40 hours of orientation of 

which 20 hours must be pre-service, and an average of 4 hours of monthly inservice training. 

(g) Encourage the most efficient and 

effective use of Foster Grandparents by 

coordinating project services and ac­ tivities with related national, state 

and local programs, including other 

Corporation programs. 

(h) Conduct an annual appraisal of 

volunteers' performance and annual re­ view of their income eligibility. 

(i) Develop, and annually update, a plan for promoting senior service within the project's service area. (j) Annually assess the accomplishments and impact of the project on the 

identified needs and problems of the 

client population in the community. 

(k) Establish written service policies 

for Foster Grandparents that include 

but are not limited to annual and sick 

797 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2552.24 

leave, holidays, service schedules, termination, appeal procedures, meal and 

transportation reimbursements. 

[64 FR 14126, Mar. 24, 1999, as amended at 67 

FR 61000, Sept. 27, 2002; 69 FR 60095, Oct. 7, 

2004; 74 FR 46508, Sept. 10, 2009] 

§ 2552.24 What are a sponsor's responsibilities for securing community 

participation? 

(a) A sponsor shall secure community 

participation in local project operation 

by establishing an Advisory Council or a similar organizational structure with a membership that includes people: 

(1) Knowledgeable of human and so­ cial needs of the community; 

(2) Competent in the field of commu­ nity service, volunteerism and children's issues; 

(3) Capable of helping the sponsor 

meet its administrative and program 

responsibilities including fund-raising, 

publicity and programming for impact; 

(4) With interest in and knowledge of 

the capability of older adults; and 

(5) Of a diverse composition that re­ flects the demographics of the service area. 

(b) The sponsor determines how such 

participation shall be secured con­ sistent with the provisions of paragraphs (a)(l) through (a)(5) of this sec­ tion. 

§ 2552.25 What are a sponsor's administrative responsibilities? 

A sponsor shall: 

(a) Assume full responsibility for se­ curing maximum and continuing com­ munity financial and in-kind support 

to operate the project successfully. 

(b) Provide levels of staffing and re­ sources appropriate to accomplish the 

purposes of the project and carry out 

its project management responsibilities. 

(c) Employ a full-time project director to accomplish program objectives 

and manage the functions and activities delegated to project staff for NSSC 

program(s) within its control. A fulltime project director shall not serve concurrently in another capacity, paid or unpaid, during established working 

hours. The project director may participate in activities to coordinate program resources with those of related 

local agencies, boards or organizations. 

45 CFR Ch. XXV (10-1-12 Edition) 

A sponsor may negotiate the employment of a part-time project director 

with the Corporation when it can be 

demonstrated that such an arrangement will not adversely affect the size, 

scope, and quality of project operations. 

(d) Consider all project staff as spon­ sor employees subject to its personnel 

policies and procedures. 

(e) Compensate project staff at a level that is comparable with other 

similar staff positions in the sponsor 

organization and/or project service area. 

(f) Establish risk management policies and procedures covering project 

and Foster Grandparent activities. 

This includes provision of appropriate 

insurance coverage for Foster Grandparents, vehicles and other properties 

used in the project. 

(g) Establish record keeping/reporting systems in compliance with Corporation requirements that ensure quality of program and fiscal operations, facilitate timely and accurate 

submission of required reports and co­ operate with Corporation evaluation 

and data collection efforts. 

(h) Comply with and ensure that all 

volunteer stations comply with all applicable civil rights laws and regulations, including providing reasonable 

accommodation to qualified individuals with disabilities. 

§ 2552.26 To whom does this part 

apply? 

This part applies to Foster Grandparent Sponsors in determining the 

suitability of Foster Grandparents, as well as to Foster Grandparent grantfunded employees who, on a recurring 

basis, have access to children, persons 

age 60 and older, or individuals with 

disabilities. 

[72 FR 48584, Aug. 24, 2007] 

§ 2552.27 What two search components 

of the National Service Criminal 

History Check must I satisfr. to determine an individual's suitability 

to serve in a covered position? 

Unless the Corporation approves an 

alternative screening protocol, in se­ lecting an individual as a Foster 

Grandparent or as a covered grantfunded employee, you are responsible 

798 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2552.31 

for ensuring, unless prohibited by 

State law, that you conduct and document a National Service Criminal History Check, which consists of the following two search components: 

(a) State criminal registry search. A 

search (by name or fingerprint) of the 

State criminal registry for the State in 

which the program operates and the 

State in which the individual resides at 

the time of application; and 

(b) National Sex Offender Public Registry. A name-based search of the Department of Justice (DOJ) National 

Sex Offender Public Registry (NSOPR). 

[72 FR 48584, Aug. 24, 2007] 

§ 2552.28 When must I conduct a State 

criminal registry check and a NSOPR check on an individual in a covered position? 

(a) The State criminal registry check 

must be conducted on an individual 

who enrolls in, or is hired by, your program after November 23, 2007. 

(b) The NSOPR check must be con­ ducted on an individual who is serving, or applies to serve, in a covered position on or after November 23, 2007. 

[72 FR 48584, Aug. 24, 2007] 

§ 2552.29 What procedures must I follow in conducting a National Service Criminal History Check? 

You are responsible for ensuring that 

the following procedures are satisfied: 

(a) Verify the individual's identity by 

examining the individual's government-issued photo identification card, 

such as a driver's license; 

(b) Obtain prior, written authorization for the State criminal registry 

check and the appropriate sharing of 

the results of that check within the 

program from the individual (but not 

for the NSOPR check); 

(c) Document the individual's understanding that selection into program is 

contingent upon the organization's review of the individual's criminal history, if any; 

(d) Provide a reasonable opportunity 

for the individual to challenge the factual accuracy of a result before action 

is taken to exclude the individual from 

the position; 

(e) Provide safeguards to ensure the 

confidentiality of any information re­ lating to the criminal history check, 

consistent with authorization provided 

by the individual; and 

(f) Ensure that an individual, for 

whom the results of a required State 

criminal registry check are pending, is 

not permitted to have access to children, persons age 60 and older, or individuals with disabilities without being 

accompanied by an authorized program 

representative who has previously been 

cleared for such access. 

[72 FR 48584, Aug. 24, 2007] 

§ 2552.30 What documentation must I 

maintain regarding a National 

Service Criminal History Check? 

You must: 

(a) Document in writing that you 

verified the identity of the individual 

in a covered position by examining the 

individual's government-issued photo 

identification card, and that you con­ ducted the required checks for the covered position; and 

(b) Maintain the results of the National Service Criminal History check 

(unless precluded by State law) and 

document in writing that you considered the results in selecting the individual. 

[72 FR 48584, Aug. 24, 2007] 

§ 2552.31 Under what circumstances 

may I follow alternative procedures 

in conducting a State criminal registry check? 

(a) FBI fingerprint-based check. If you or your designee conduct and document a fingerprint-based criminal history 

check through the Federal Bureau of 

Investigation, you will be deemed to 

have satisfied the State criminal registry check requirement and do not 

need separate approval by the Corporation. 

(b) Name-based search. If you conduct 

and document a name-based criminal 

history check through a source other 

than the FBI that, includes a check of 

the criminal records repository, in the 

State in which your program is operating, as well as in the State in which 

the individual lives, you will be deemed 

to have satisfied the State criminal 

registry check requirement and do not 

need separate approval by the Corporation. 

(c) Alternative search approval. If you 

demonstrate that you are prohibited or 

799 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2552.32 

otherwise precluded under State law 

from complying with a Corporation re­ quirement relating to criminal history 

checks or that you can obtain substantially equivalent or better information 

through an alternative process, the 

Corporation will consider approving an alternative search protocol that you 

submit in writing to the Office of 

Grants Management. The Office of 

Grants Management will review the alternative protocol to ensure that it: 

(1) Verifies the identity of the individual; and 

(2) Includes a search of an alternative 

criminal database that is sufficient to 

identify the existence, or absence of, 

criminal offenses. 

[72 FR 48584, Aug. 24, 2007] 

§ 2552.32 Is an individual who refuses 

to consent to a State criminal registry check, or who makes a false 

statement in connection with a grantee's inquiry concerning the individual's criminal history, eligible 

to serve in a covered position? 

An individual who refuses to consent 

to a State criminal registry check, or who makes a false statement in con­ nection with a grantee's inquiry con­ cerning the individual's criminal history, is not eligible to serve in a cov­ ered position. 

[72 FR 48584, Aug. 24, 2007] 

§ 2552.33 May a sponsor administer more than one program grant from 

the Corporation? 

A sponsor may administer more than one Corporation program grant. 

[64 FR 14126, Mar. 24, 1999. Redesignated at 

48584, Aug. 24, 2007] 

Subpart C-Suspension and Termination of Corporation Assistance 

§ 2552.34 What are the rules on suspension, termination, and denial of re­ funding of grants? 

(a) The Chief Executive Officer or designee is authorized to suspend further payments or to terminate payments under any grant providing as­ sistance under the Act whenever he/she 

determines there is a material failure 

to comply with applicable terms and 

45 CFR Ch. XXV (10-1-12 Edition) 

conditions of the grant. The Chief Executive Officer shall prescribe procedures to ensure that: 

(1) Assistance under the Act shall not 

be suspended for failure to comply with 

applicable terms and conditions, except 

in emergency situations for thirty 

days; 

(2) An application for refunding 

under the Act may not be denied unless 

the recipient has been given: 

(i) Notice at least 75 days before the 

denial of such application of the possibility of such denial and the grounds 

for any such denial; and 

(ii) Opportunity to show cause why 

such action should not be taken; 

(3) In any case where an application 

for refunding is denied for failure to 

comply with the terms and conditions 

of the grant, the recipient shall be afforded an opportunity for an informal 

hearing before an impartial hearing officer, who has been agreed to by the re­ cipient and the Corporation; and 

(4) Assistance under the Act shall not 

be terminated for failure to comply 

with applicable terms and conditions 

unless the recipient has been afforded 

reasonable notice and opportunity for a full and fair hearing. 

(b) In order to assure equal access to 

all recipients, such hearings or other 

meetings as may be necessary to fulfill 

the requirements of this section shall 

be held in locations convenient to the 

recipient agency. 

(c) The procedures for suspension, 

termination, and denial of refunding, 

that apply to the Foster Grandparent 

Program are specified in 45 CFR part 

1206. 

[64 FR 14126, Mar. 24, 1999. Redesignated at 72 

FR 48584, Aug. 24, 2007] 

Subpart D-Foster Grandparent 

Eligibility, Status and Cost Reimbursements 

§ 2552.41 Who is eligible to be a Foster 

Grandparent? 

(a) To be a Foster Grandparent an individual must: 

(1) Be 55 years of age or older; 

(2) Be determined by a physical ex­ amination to be capable, with or without reasonable accommodation, of 

serving children with exceptional or 

800 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2552.44 

special needs without detriment to either himself/herself or the children 

served; 

(3) Agree to abide by all requirements as set forth in this part; and 

(4) In order to receive a stipend, have an income that is within the income 

eligibility guidelines specified in this 

subpart D. 

(b) Eligibility to be a Foster Grandparent shall not be restricted on the 

basis of formal education, experience, 

race, religion, color, national origin, 

sex, age, handicap, or political affiliation. 

[64 FR 14126, Mar. 24, 1999, as amended at 74 

FR 46509, Sept. 10, 2009] 

§ 2552.42 What types of criminal con­ victions or other adjudications disqualify an individual from serving as a Foster Grandparent or as a Foster Grandparent grant-funded 

employee? 

Any individual who is registered, or who is required to be registered, on a State sex offender registry, or who has 

been convicted of murder, as defined 

under Federal law in section 1111 of 

title 18, United States Code, is deemed 

unsuitable for, and may not serve in, a position as a Foster Grandparent or as a Foster Grandparent grant-funded em­ ployee. 

[74 FR 46509, Sept. 10, 2009] 

§ 2552.43 What income guidelines gov­ ern eligibility to serve as a stipended Foster Grandparent? 

(a) To receive a stipend, a Foster 

Grandparent may not have an annual 

income from all sources, after deducting allowable medical expenses, which 

exceeds the program's income eligibility guideline for the State in which 

he or she resides. The income eligibility guideline for each State is 200 

percent of the poverty line, as set forth 

in 42 U.S.C. 9902 (2). 

(b) For applicants to become 

stipended Foster Grandparents, annual 

income is projected for the following 12 

months, based on income at the time of 

application. For serving stipended Foster Grandparents, annual income is 

counted for the past 12 months. Annual 

income includes the applicant or en­ rollee's income and that of his/her 

spouse, if the spouse lives in the same 

residence. Sponsors shall count the 

value of shelter, food, and clothing, if 

provided at no cost by persons related 

to the applicant, enrollee, or spouse. 

(c) Allowable medical expenses are annual out-of-pocket medical expenses 

for health insurance premiums, health care services, and medications provided 

to the applicant, enrollee, or spouse 

which were not and will not be paid by 

Medicare, Medicaid, other insurance, or other third party pay or, and which 

do not exceed 50 percent of the applicable income guideline. 

(d) Applicants whose income is not more than 100 percent of the poverty 

line shall be given special consideration for enrollment. 

(e) Once enrolled, a Foster Grandparent shall remain eligible to serve and to receive a stipend so long as his or her income, does not exceed the applicable income eligibility guideline by 

20 percent. 

[64 FR 14126, Mar. 24, 1999, as amended at 67 

FR 61000, Sept. 27, 2002; 69 FR 19775, Apr. 14, 

2004. Redesignated at 72 FR 48585, Aug. 24, 

2007; 74 FR 46509, Sept. 10, 2009] 

§ 2552.44 What is considered income 

for determining volunteer eligibility? 

(a) For determining eligibility, "income" refers to total cash and in-kind 

receipts before taxes from all sources including: 

(1) Money, wages, and salaries before 

any deduction, but not including food or rent in lieu of wages; 

(2) Receipts from self-employment or from a farm or business after deductions for business or farm expenses; 

(3) Regular payments for public as­ sistance, Social Security, Unemployment or Workers Compensation, strike 

benefits, training stipends, alimony, 

child support, and military family allotments, or other regular support 

from an absent family member or someone not living in the household; 

(4) Government employee pensions, 

private pensions, and regular insurance or annuity payments; and 

(5) Income from dividends, interest, 

net rents, royalties, or income from es­ tates and trusts. 

(b) For eligibility purposes, income 

does not refer to the following money 

receipts: 

801 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2552.45 

(1) Any assets drawn down as withdrawals from a bank, sale of property, 

house or car, tax refunds, gifts, one­ time insurance payments or compensation from injury. 

(2) Non-cash income, such as the 

bonus value of food and fuel produced 

and consumed on farms and the imputed value of rent from owner-occu­ pied farm or non-farm housing. 

[64 FR 14126, Mar. 24, 1999. Redesignated at 72 

FR 48585, Aug. 24, 2007] 

§ 2552.45 Is a Foster Grandparent a federal employee, an employee of 

the sponsor or of the volunteer station? 

Foster Grandparents are volunteers, 

and are not employees of the sponsor, 

the volunteer station, the Corporation, or the Federal Government. 

[64 FR 14126, Mar. 24, 1999. Redesignated at 72 

FR 48585, Aug. 24, 2007] 

§ 2552.46 What cost reimbursements are provided to Foster Grandparents? 

Cost reimbursements include: 

(a) Stipend. Foster Grandparents who are income eligible will receive a stipend in an amount determined by the 

Corporation and payable in regular installments, to enable them to serve without cost to themselves. The stipend is paid for the time Foster Grandparents spend with their assigned children, for earned leave, and for attend­ ance at official project events. 

(b) Insurance. A Foster Grandparent 

is provided with the Corporation-specified minimum levels of insurance as follows: 

(1) Accident insurance. Accident insur­ ance covers Foster Grandparents for 

personal injury during travel between 

their homes and places of assignment, 

during their volunteer service, during 

meal periods while serving as a volunteer, and while attending project-sponsored activities. Protection shall be 

provided against claims in excess of 

any benefits or services for medical care or treatment available to the volunteer from other sources. (2) Personal liability insurance. Protection is provided against claims in ex­ cess of protection provided by other in­ surance. It does not include professional liability coverage. 

45 CFR Ch. XXV (10-1-12 Edition) 

(3) Excess automobile liability insurance. (i) For Foster Grandparents who 

drive in connection with their service, 

protection is provided against claims 

in excess of the greater of either: 

(A) Liability insurance volunteers 

carry on their own automobiles; or 

(B) The limits of applicable state financial responsibility law, or in its absence, levels of protection to be determined by the Corporation for each person, each accident, and for property 

damage. 

(ii) Foster Grandparents who drive 

their personal vehicles to or on assignments or project-related activities 

shall maintain personal automobile liability insurance equal to or exceeding 

the levels established by the Corporation. 

(c) Transportation. Foster Grandparents shall receive assistance with 

the cost of transportation to and from 

volunteer assignments and official 

project activities, including orientation, training, and recognition events. 

(d) Physical examination. Foster 

Grandparents are provided a physical 

examination prior to assignment and 

annually thereafter to ensure that they 

will be able to provide supportive service without injury to themselves or the 

children served. 

(e) Meals and recognition. Foster 

Grandparents shall be provided the following within limits of the project's 

available resources: 

(1) Assistance with the cost of meals 

taken while on assignment; and 

(2) Recognition for their service. 

(f) Other volunteer expenses. Foster 

Grandparents may be reimbursed for 

expenses incurred while performing 

their volunteer assignments, provided 

these expenses are described in the 

Memorandum of Understanding negotiated with the volunteer station to 

which the volunteer is assigned and 

there are sufficient funds available to 

cover these expenses and meet all other 

requirements identified in the notice of 

grant award. 

[64 FR 14126, Mar. 24, 1999, as amended at 69 

FR 19775, Apr. 14, 2004; 69 FR 56718, Sept. 22, 

2004. Redesignated at 72 FR 48585, Aug. 24, 

2007] 

802 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2552.62 

§2552.47 May the cost reimbursements 

of a Foster Grandparent be subject 

to any tax or charge, be treated as wages or compensation, or affect 

eligibility to receive assistance from 

other programs? 

No. Foster Grandparent's cost reimbursements are not subject to any tax or charge or treated as wages or com­ pensation for the purposes of unem­ ployment insurance, worker's com­ pensation, temporary disability, retirement, public assistance, or similar benefit payments or minimum wage laws. 

Cost reimbursements are not subject to 

garnishment, and do not reduce or eliminate the level of, or eligibility for, 

assistance or services a Foster Grandparent may be receiving under any governmental program. 

[64 FR 14126, Mar. 24, 1999. Redesignated at 72 

FR 48585, Aug. 24, 2007] 

Subpart E-Foster Grandparent 

Terms of Service 

§ 2552.51 What are the terms of service 

of a Foster Grandparent? 

A Foster Grandparent shall serve a minimum of 15 hours per week and a maximum of 40 hours per week. A Foster Grandparent shall not serve more than 2088 hours per year. Within these 

limitations, a sponsor may set service 

policies consistent with local needs. 

[67 FR 61000, Sept. 27, 2002] 

§ 2552.52 What factors are considered 

in determining a Foster Grandparent's service schedule? 

(a) Travel time between the Foster 

Grandparent's home and place of as­ signment is not part of the service 

schedule and is not stipended. 

(b) Travel time between individual 

assignments is a part of the service 

schedule and is stipended. 

(c) Meal time may be part of the 

service schedule and is stipended only 

if it is specified in the goal statement as part of the service activity. 

§ 2552.53 Under what circumstances 

may a Foster Grandparent's service 

be terminated? 

(a) A sponsor may remove a Foster 

Grandparent from service for cause. Grounds for removal include but are 

not limited to: extensive and unauthorized absences; misconduct; inability to 

perform assignments; and failure to ac­ cept supervision. A Foster Grandparent 

may also be removed from service for 

having income in excess of the eligibility level. 

(b) The sponsor shall establish appropriate policies on service termination as well as procedures for appeal from 

such adverse action. 

Subpart F-Responsibilities of a 

Volunteer Station 

§ 2552.61 May a sponsor serve as a volunteer station? 

Yes, a sponsor may serve as a volunteer station, provided this is part of 

the application workplan approved by 

the Corporation. 

[67 FR 61000, Sept. 27, 2002] 

§ 2552.62 What are the responsibilities 

of a volunteer station? 

A volunteer station shall undertake 

the following responsibilities in support of Foster Grandparent volunteers: 

(a) Develop volunteer assignments 

that meet the requirements specified 

in §§2552.71 through 2552.72 and regularly assess those assignments for con­ tinued appropriateness. 

(b) Select eligible children for as­ signed volunteers. 

(c) Develop a written volunteer as­ signment plan for each child that identifies the role and activities of the Foster Grandparent and expected out­ comes for the child served. 

(d) Obtain a Letter of Agreement for 

Foster Grandparents assigned in-home. 

This letter must comply with all Federal, State and local regulations. 

(e) Provide Foster Grandparents serv­ ing the station with: 

(1) Orientation to the station and any 

in-service training necessary to en­ hance performance of assignments; 

(2) Resources required for perform­ ance of assignments including reason­ able accommodation; and 

(3) Appropriate recognition. 

(f) Designate a staff member to over­ see fulfillment of station responsibilities and supervision of Foster Grandparents while on assignment. 

(g) Keep records and prepare reports 

required by the sponsor. 

803 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2552.71 

(h) Provide for the safety of Foster 

Grandparents assigned to it. 

(i) Comply with all applicable civil 

rights laws and regulations including 

reasonable accommodation for Foster 

Grandparents with disabilities. 

(j) Undertake such other responsibilities as may be necessary to the suc­ cessful performance of Foster Grandparents in their assignments or as agreed to in the Memorandum of Understanding. 

Subpart G-Foster Grandparent 

Placements and Assignments 

§2552.71 What requirements govern 

the assignment of Foster Grandparents? 

Foster Grandparent assignments 

shall: 

(a) Provide for Foster Grandparents 

to give direct services to one or more eligible children. Foster Grandparents 

cannot be assigned to roles such as teacher's aides, group leaders or other 

similar positions that would detract 

from the person-to-person relationship. 

(b) Result in person-to-person supportive relationships with each child 

served. 

(c) Support the development and 

growth of each child served. 

(d) Be meaningful to the Foster 

Grandparent. 

(e) Be supported by appropriate orientation, training and supervision. 

§2552.72 Is a written volunteer assignment plan required for each volunteer? 

(a) All Foster Grandparents shall re­ ceive a written volunteer assignment 

plan developed by the volunteer station 

that: 

(1) Is approved by the sponsor and ac­ cepted by the Foster Grandparent; 

(2) Identifies the individual child(ren) 

to be served; 

(3) Identifies the role and activities 

of the Foster Grandparent and ex­ pected outcomes for the child; 

(4) Addresses the period of time each 

child should receive such services; and 

(5) Is used to review the status of the 

Foster Grandparent's services in working with the assigned child, as well as the impact of the assignment on the 

child's development. 

45 CFR Ch. XXV (10-1-12 Edition) 

(b) If there is an existing plan that 

incorporates paragraphs (a)(2), (3), and 

(4) of this section, that plan shall meet 

the requirement. 

Subpart H-Children Served 

§ 2552.81 What type of children are eligible to be served? 

Foster Grandparents serve only children and youth with special and exceptional needs, or in circumstances that 

limit their academic, social, or emotional development, who are less than 

21 years of age. 

[74 FR 46509, Sept. 10, 2009] 

§ 2552.82 Under what circumstances 

may a Foster Grandparent continue 

to serve an individual beyond his or her 21st birthday? 

(a) Only when a Foster Grandparent 

has been assigned to, and has developed 

a relationship with, a child with a disability, that assignment may continue 

beyond the individual's 21st birthday, 

provided that: 

(1) Such individual was receiving 

such services prior to attaining the 

chronological age of 21, and the continuation of service is in the best interest of the individual; and 

(2) The sponsor determines that it is 

in the best interest of both the Foster 

Grandparent and the individual for the 

assignment to continue. Such a determination will be made through mutual 

agreement by all parties involved in 

the provision of services to the individual served. 

(b) In cases where the assigned Foster Grandparent becomes unavailable 

to serve a particular individual, the replacement of that Foster Grandparent 

shall be made through mutual agreement by all parties involved. 

(c) The sponsor may terminate service to a child with a disability over age 

21, if it determines that such service is 

no longer in the best interest of either 

the Foster Grandparent or the individual served. 

[64 FR 14126, Mar. 24, 1999, as amended at 74 

FR 46509, Sept. 10, 2009; 74 FR 48866, Sept. 25, 

2009] 

804 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2552.92 

Subpart I-Application and Fiscal 

Requirements 

§ 2552.91 What is the process for application and award of a grant? 

(a) How and when may an eligible organization apply for a grant? (1) An eligible organization may file an application for a grant at any time. 

(2) Before submitting an application an applicant shall determine the availability of funds from the Corporation. 

(3) The Corporation may also solicit 

grants. Applicants solicited under this 

provision are not assured of selection or approval and may have to compete 

with other solicited or unsolicited applications. 

(b) What must an eligible organization 

include in a grant application? (1) An applicant shall complete standard forms 

prescribed by the Corporation. 

(2) The applicant shall comply with 

the provisions of Executive Order 12372 

"Intergovernmental Review of Federal 

Programs," (3 CFR, 1982 Comp., p.197) 

in 45 CFR Part 1233, and any other applicable requirements. 

(c) Who reviews the merits of an application and how is a grant awarded? (1) 

The Corporation reviews and determines the merit of an application by 

its responsiveness to published guidelines and to the overall purpose and objectives of the program. When funds are available, the Corporation awards a grant in writing to each applicant 

whose grant proposal provides the best 

potential for serving the purpose of the 

program. The award will be documented by Notice of Grant Award 

(NGA). 

(2) The Corporation and the sponsoring organization are the parties to 

the NGA. The NGA will document the 

sponsor's commitment to fulfill specific programmatic objectives and financial obligations. It will document 

the extent of the Corporation's obligation to provide financial support to the 

sponsor. 

(d) What happens if the Corporation rejects an application? The Corporation 

will return an application that is not 

approved for funding to the applicant 

with an explanation of the Corporation's decision. 

(e) For what period of time does the 

Corporation award a grant? The Corporation awards a Foster Grandparent 

grant for a specified period that is usu­ ally 12 months in duration. 

§ 2552.92 What are project funding re­ quirements? 

(a) Is non-Corporation support required? A Corporation grant may be 

awarded to fund up to 90 percent of the 

cost of development and operation of a Foster Grandparent project. The sponsor is required to contribute at least 10 

percent of the total project cost from 

non-Federal sources or authorized Federal sources. 

(b) Under what circumstances does the 

Corporation allow less than the 10 percent 

non-Corporation support? The Corporation may allow exceptions to the 10 

percent local support requirement in 

cases of demonstrated need such as: 

(1) Initial difficulties in the development of local funding sources during 

the first three years of operations; or 

(2) An economic downturn, the occurrence of a natural disaster, or similar 

events in the service area that severely 

restrict or reduce sources of local funding support; or 

(3) The unexpected discontinuation of 

local support from one or more sources that a project has relied on for a period 

of years. 

(c) May the Corporation restrict how a 

sponsor uses locally generated contributions in excess of the 10 percent non-Corporation support required? Whenever locally generated contributions to Foster 

Grandparent projects are in excess of 

the minimum 10 percent non-Corporation support required, the Corporation 

may not restrict the manner in which 

such contributions are expended provided such expenditures are consistent 

with the provisions of the Act. 

(d) Are program expenditures subject to 

audit? All expenditures by the grantee 

of Federal and non-Federal funds, including expenditures from excess locally generated contributions in support of the grant, are subject to audit 

by the Corporation, its Inspector General or their authorized agents. 

(e) How are Foster Grandparent cost reimbursements budgeted? (1) Except as provided in (e)(2) of this section, the 

total of cost reimbursements for Foster 

805 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2552.93 

Grandparents, including stipends, insurance, transportation, meals, physical examinations, and recognition, 

shall be a sum equal to at least 80 percent of the amount of the Federal 

share of the grant award. Federal, re­ quired non-Federal, and excess non­ Federal resources can be used to make 

up the amount allotted for cost reimbursements. 

(2) The Corporation may allow exceptions to the 80 percent cost reimbursement requirement in cases of demonstrated need such as: (i) Initial difficulties in the development of local funding sources during 

the first three years of operations; or (ii) An economic downturn, the oc­ currence of a natural disaster, or similar events in the service area that se­ verely restrict or reduce sources of 

local funding support; or (iii) The unexpected discontinuation 

of local support from one or more sources that a project has relied on for a period of years. 

(f) May a sponsor pay stipends at a rate 

different than the rate established by the 

Corporation? A sponsor shall pay stipends at the same rate as that established by the Corporation. 

[64 FR 14126, Mar. 24, 1999, as amended at 75 

FR 51415, Aug. 20, 2010] 

§ 2552.93 What are grants management 

requirements? 

What rules govern a sponsor's man­ agement of grants? 

(a) A sponsor shall manage a grant 

awarded in accordance with: 

(1) The Act; 

(2) Regulations in this part; 

(3) 45 CFR Part 2541, "Uniform Administrative Requirements for Grants 

and Cooperative Agreements to State 

and Local Governments", or 45 CFR 

Part 2543, "Grants and Agreements 

with Institutions of Higher Education, 

Hospitals, and Other Non-Profit Organizations"; 

(4) The following 0MB Circulars, as appropriate A-21, "Cost Principles for 

Educational Institutions", A--87, "Cost 

Principles for State, Local and Indian 

Tribal Governments", A-122, "Cost 

Principles for Non-Profit Organizations", and A-133, "Audits of States, 

Local Governments, and Other NonProfit Organizations" (0MB circulars 

45 CFR Ch. XXV (10-1-12 Edition) 

are available electronically at the 0MB 

homepage www.whitehouse.gov/WHIEOPI 

omb); and 

(5) Other applicable Corporation re­ quirements. 

(b) Project support provided under a Corporation grant shall be furnished at 

the lowest possible cost consistent 

with the effective operation of the 

project. 

(c) Project costs for which Corporation funds are budgeted must be justified as being necessary and essential to 

project operation. 

(d) Volunteer expense items, including transportation, meals, recognition 

activities and items purchased at the 

volunteers' own expense and which are not reimbursed, are not allowable as contributions to the non-Federal share 

of the budget. 

(e) Costs of other insurance not re­ quired by program policy, but maintained by a sponsor for the general con­ duct of its activities are allowable with 

the following limitations: 

(1) Types and extent of and cost of 

coverage are according to sound institutional and business practices; 

(2) Costs of insurance or a contribution to any reserve covering the risk of 

loss of or damage to Governmentowned property are unallowable unless 

the government specifically requires 

and approves such costs; and 

(3) The cost of insurance on the lives 

of officers, trustees or staff is unallowable except where such insurance is 

part of an employee plan which is not 

unduly restricted. 

(f) Costs to bring a sponsor into basic 

compliance with accessibility requirements for individuals with disabilities are not allowable costs. 

(g) Payments to settle discrimination 

allegations, either informally through a settlement agreement or formally as a result of a decision finding discrimination, are not allowable costs. 

(h) Written Corporation approval/ concurrence is required for the following changes in the approved grant: 

(1) Reduction in budgeted volunteer 

service years. 

(2) Change in the service area. 

(3) Transfer of budgeted line i terns 

from Volunteer Expenses to Support 

Expenses. This requirement does not 

806 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2552.112 

apply if the 80 percent volunteer cost 

reimbursement ratio is maintained. 

[64 FR 14126, Mar. 24, 1999, as amended at 69 

FR 19776, Apr. 14, 2004] 

Subpart J-Non-Stipended Foster 

Grandparents 

§ 2552.101 What rule governs the re­ cruitment and enrollment of per­ sons who do not meet the income 

eligibility guidelines to serve as Foster Grandparents without stipends? 

Over-income persons, age 55 or over, 

may be enrolled in FGP projects as non-stipended volunteers in commu­ nities where there is no RSVP project or where agreement is reached with the 

RSVP project that allows for the en­ rollment of non-stipended volunteers in 

the FGP project. 

[64 FR 14126, Mar. 24, 1999, as amended at 74 

FR 46509, Sept. 10, 2009] 

§ 2552.102 What are the conditions of 

service of non-stipended Foster 

Grandparents? 

Non-stipended Foster Grandparents serve under the following conditions: 

(a) They must not displace or prevent 

eligible low-income individuals from 

becoming Foster Grandparents. 

(b) No special privilege or status is 

granted or created among Foster 

Grandparents, stipended or non­ stipended, and equal treatment is re­ quired. 

(c) Training, supervision, and other 

support services and cost reimbursements, other than the stipend, are available equally to all Foster Grandparents. 

(d) All regulations and requirements 

applicable to the program, with the ex­ ception listed in paragraph (f) of this 

section, apply to all Foster Grandparents. 

(e) Non-stipended Foster Grandparents may be placed in separate volunteer stations where warranted. 

(f) Non-stipended Foster Grandparents will be encouraged but not re­ quired to serve an average of 20 hours 

per week and nine months per year. 

Foster Grandparents will maintain a close person-to-person relationship 

with their assigned children on a regular basis. 

(g) Non-stipended Foster Grandparents may contribute the costs they 

incur in connection with their participation in the program. Such contributions are not counted as part of the required non-federal share of the grant 

but may be reflected in the budget column for excess non-federal resources. 

§ 2552.103 Must a sponsor be required 

to enroll non-stipended Foster 

Grandparents? 

Enrollment of non-stipended Foster 

Grandparents is not a factor in the 

award of new or continuation grants. 

§ 2552.104 May Corporation funds be 

used for non-stipended Foster 

Grandparents? 

Federally appropriated funds for FGP 

shall not be used to pay any cost, including any administrative cost, incurred in implementing the regulations 

in this part for non-stipended Foster 

Grandparents. 

Subpart K-Non-Corporation 

Funded Foster Grandparent 

Program Projects 

§2552.111 Under what conditions can an agency or organization sponsor a Foster Grandparent project without Corporation funding? 

An eligible agency or organization 

who wishes to sponsor a Foster Grandparent project without Corporation 

funding, must sign a Memorandum of 

Agreement with the Corporation that: 

(a) Certifies its intent to comply with 

all Corporation requirements for the 

Foster Grandparent Program; and 

(b) Identifies responsibilities to be 

carried out by each party. 

§ 2552.112 What benefits are a non­ Corporation funded project entitled 

to? 

The Memorandum of Agreement entitles the sponsor of a non-Corporation 

funded project to: 

(a) All technical assistance and materials provided to Corporation-funded 

Foster Grandparent projects; and 

(b) The application of the provisions 

of 42 U.S.C. 5044 and 5058. 

807 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2552.113 

§ 2552.113 What f'mancial obligation 

does the Corporation incur for non­ Corporation funded projects? 

Entry into a Memorandum of Agreement with, or issuance of an NGA to a sponsor of a non-Corporation funded 

project, does not create a financial obligation on the part of the Corporation 

for any costs associated with the 

project, including increases in required 

payments to Foster Grandparents that 

may result from changes in the Act or in program regulations. 

§ 2552.114 What happens if a non-Corporation funded sponsor does not 

comply with the Memorandum of 

Agreement? 

A non-Corporation funded project 

sponsor's noncompliance with the 

Memorandum of Agreement may result 

in suspension or termination of the 

Corporation's agreement and all benefits specified in § 2552.112. 

Subpart L-Restrictions and Legal 

Representation 

§ 2552.121 What legal limitations apply 

to the operation of the Foster 

Grandparent Program and to the 

expenditure of grant funds? 

(a) Political activities. (1) No part of 

any grant shall be used to finance, directly or indirectly, any activity to influence the outcome of any election to 

public office, or any voter registration 

activity. 

(2) No project shall be conducted in a manner involving the use of funds, the 

provision of services, or the employment or assignment of personnel in a matter supporting or resulting in the 

identification of such project with: 

(i) Any partisan or nonpartisan political activity associated with a can­ didate, or contending faction or group, 

in an election; or (ii) Any activity to provide voters or prospective voters with transportation 

to the polls or similar assistance in 

connection with any such election; or (iii) Any voter registration activity, 

except that voter registration applications and nonpartisan voter registration information may be made available to the public at the premises of 

the sponsor. But in making registration applications and nonpartisan 

45 CFR Ch. XXV (10-1-12 Edition) 

voter registration information available, employees of the sponsor shall 

not express preferences or seek to influence decisions concerning any can­ didate, political party, election issue, or voting decision. 

(3) The sponsor shall not use grant 

funds in any activity for the purpose of 

influencing the passage or defeat of 

legislation or proposals by initiative 

petition, except: 

(i) In any case in which a legislative 

body, a committee of a legislative 

body, or a member of a legislative body 

requests any volunteer in, or employee 

of such a program to dra~, review or testify regarding measures or to make 

representation to such legislative body, 

committee or member; or (ii) In connection with an authorization or appropriations measure directly 

affecting the operation of the FGP. 

(b) Non-displacement of employed work­ ers. A Foster Grandparent shall not 

perform any service or duty or engage 

in any activity which would otherwise 

be performed by an employed worker or which would supplant the hiring of or result in the displacement of employed 

workers, or impair existing contracts 

for service. 

(c) Compensation for service. (1) An 

agency or organization to which NSSC 

volunteers are assigned, or which operates or supervises any NSSC program 

shall not request or receive any com­ pensation from NSSC volunteers or from beneficiaries for services of NSSC 

volunteers. 

(2) This section does not prohibit a sponsor from soliciting and accepting 

voluntary contributions from the com­ munity at large to meet its local support obligations under the grant or from entering into agreements with 

parties other than beneficiaries to support additional volunteers beyond 

those supported by the Corporation 

grant. 

(3) A Foster Grandparent volunteer 

station may contribute to the financial 

support of the FGP. However, this support shall not be a required precondition for a potential station to obtain Foster Grandparent service. 

(4) If a volunteer station agrees to 

provide funds to support additional 

Foster Grandparents or pay for other 

Foster Grandparent support costs, the 

808 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service Pt. 2553 

agreement shall be stated in a written 

Memorandum of Understanding. The 

sponsor shall withdraw services if the 

station's inability to provide monetary or in-kind support to the project under 

the Memorandum of Understanding diminishes or jeopardizes the project's financial capabilities to fulfill its obligations. 

(5) Under no circumstances shall a Foster Grandparent receive a fee for 

service from service recipients, their 

legal guardian, members of their family, or friends. 

(d) Labor and anti-labor activity. The 

sponsor shall not use grant funds directly or indirectly to finance labor or anti-labor organization or related ac­ tivity. 

(e) Fair labor standards. A sponsor 

that employs laborers and mechanics 

for construction, alteration, or repair 

of facilities shall pay wages at prevailing rates as determined by the Secretary of Labor in accordance with the 

Davis-Bacon Act, as amended, 40 U.S.C. 

276a. 

(f) Nondiscrimination. A sponsor or sponsor employee shall not discriminate against a Foster Grandparent on the basis of race, color, national origin, 

sex, age, religion, or political affiliation, or on the basis of disability, if 

the Foster Grandparent with a disability is qualified to serve. (g) Religious activities. (1) A Foster 

Grandparent or a member of the 

project staff funded by the Corporation 

shall not give religious instruction, 

conduct worship services or engage in 

any form of proselytization as part of 

his or her duties. 

(2) A sponsor or volunteer station 

may retain its independence and may 

continue to carry out its mission, including the definition, development, 

practice, and expression of its religious 

beliefs, provided that it does not use Corporation funds to support any inherently religious activities, such as worship, religious instruction, or proselytization, as part of the programs or services funded. If an organization con­ ducts such activities, the activities 

must be offered separately, in time or location, from the programs or services 

funded under this part. 

(h) Nepotism. Persons selected for 

project staff positions shall not be related by blood or marriage to other 

project staff, sponsor staff or officers, 

or members of the sponsor Board of Directors, unless there is written concurrence from the community group established by the sponsor under Subpart 

B of this part and with notification to 

the Corporation. 

[64 FR 14126, Mar. 24, 1999, as amended at 69 

FR 60095, Oct. 7, 2004] 

§ 2552.122 What legal coverage does 

the Corporation make available to 

Foster Grandparents? 

It is within the Corporation's discretion to determine if Counsel is employed and counsel fees, court costs, 

bail and other expenses incidental to 

the defense of a Foster Grandparent 

are paid in a criminal, civil or administrative proceeding, when such a proceeding arises directly out of performance of the Foster Grandparent's activities pursuant to the Act. The circumstances under which the Corporation may pay such expenses are specified in 45 CFR part 1220. 

PART 2553-THE RETIRED AND 

SENIOR VOLUNTEER PROGRAM 

Subpart A-General 

Sec. 

2553.11 What is the Retired and Senior Volunteer Program? 

2553.12 Definitions. 

Subpart B-Eligibility and Responsibilities of 

a Sponsor 

2553.21 Who is eligible to serve as a sponsor? 

2553.22 What are the responsibilities of a 

sponsor? 

2553.23 What are a sponsor's program responsibilities? 

2553.24 What are a sponsor's responsibilities 

for securing community participation? 

2553.25 What are a sponsor's administrative 

responsibilities? 

2553.26 May a sponsor administer more than 

one program grant from the Corporation? 

Subpart C-Suspension, Termination and 

Denial of Refunding 

2553.31 What are the rules on suspension, 

termination and denial of refunding of 

grants? 

809 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2553.11 

Subpart D--Eligibility, Cost Reimbursements 

and Volunteer Assignments 

2553.41 Who is eligible to be a RSVP volunteer? 

2553.42 Is a RSVP volunteer a federal em­ ployee, an employee of the sponsor or of 

the volunteer station? 

2553.43 What cost reimbursements are provided to RSVP volunteers? 

2553.44 May cost reimbursements received 

by a RSVP volunteer be subject to any 

tax or charge, treated as wages or com­ pensation, or affect eligibility to receive 

assistance from other programs? 

Subpart E-Volunteer Terms of Service 

2553.51 What are the terms of service of a RSVP volunteer? 

2553.52 Under what circumstances may a 

RSVP volunteer's service be terminated? 

Subpart F-Responsibilities of a Volunteer 

Station 

2553.61 When may a sponsor serve as a volunteer station? 

2553.62 What are the responsibilities of a 

volunteer station? 

Subpart G--Application and Fiscal 

Requirements 

2553.71 What is the process for application 

and award of a grant? 

2553.72 What are project funding requirements? 

2553.73 What are grants management requirements? 

Subpart H-Non-Corporation Funded 

Projects 

2553.81 Under what conditions may an agency or organization sponsor a RSVP 

project without Corporation funding? 

2553.82 What benefits are a non-Corporation 

funded project entitled to? 

2553.83 What financial obligation does the 

Corporation incur for non-Corporation 

funded projects? 

2553.84 What happens if a non-Corporation 

funded sponsor does not comply with the 

Memorandum of Agreement? 

Subpart I-Restrictions and Legal 

Representation 

2553.91 What legal limitations apply to the 

operation of the RSVP Program and to 

the expenditure of grant funds? 

2553.92 What legal coverage does the Corporation make available to RSVP volunteers. 

45 CFR Ch. XXV (10-1-12 Edition) 

Subpart J-Performance Measures 

2553.100 What is the purpose of this subpart? 

2553.101 What is the purpose of performance 

measurement? 

2553.102 What performance measurement information must be part of an application 

for funding under RSVP? 

2553.103 Who develops the performance 

measures? 

2553.104 What performance measures must 

be submitted to the Corporation and how 

are these submitted? 

2553.105 How are performance measures approved and documented? 

2553.106 How does a sponsor report performance measures to the Corporation? 

2553.107 What must a sponsor do if it cannot 

meet its performance measures? 

2553.108 When may a sponsor change a project's performance measures? 

2553.109 What happens if a sponsor fails to 

meet the performance measures included 

in the Notice of Grant Award (NGA)? 

AUTHORITY: 42 u.s.c. 4950 et seq. 

SOURCE: 64 FR 14135, Mar. 24, 1999, unless 

otherwise noted. 

Subpart A-General 

§ 2553.11 What is the Retired and Senior Volunteer Program? 

The Retired and Senior Volunteer 

Program (RSVP) provides grants to 

qualified agencies and organizations 

for the dual purpose of: engaging persons 55 and older in volunteer service 

to meet critical community needs; and 

to provide a high quality experience 

that will enrich the lives of volunteers. 

§ 2553.12 Definitions. 

(a) Act. The Domestic Volunteer 

Service Act of 1973, as amended, Pub. 

L. 93--113, Oct. 1, 1973, 87 Stat. 396, 42 

U.S.C. 4950 et seq. 

(b) Adequate staffing level. The num­ ber of project staff or full-time equivalent needed by a sponsor to manage 

NSSC project operations considering 

such factors as: number of budgeted 

volunteers, number of volunteer stations, and the size of the service area. 

(c) Assignment. The activities, functions or responsibilities to be performed by volunteers identified in a written outline or description. 

(d) Chief Executive Officer. The Chief 

Executive Officer of the Corporation 

810 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2553.12 

appointed under the National and Community Service Act of 1990, as amended, (NCSA), 42 U.S.C. 12501 et seq. 

(e) Corporation. The Corporation for 

National and Community Service established under the NCSA. The Corporation is also sometimes referred to 

as CNCS. 

(f) Cost reimbursements. Reimbursements budgeted as Volunteer Expenses 

and provided to volunteers to cover incidental costs, meals, transportation, 

volunteer insurance, and recognition to 

enable them to serve without cost to 

themselves. 

(g) Letter of Agreement. A written 

agreement between a volunteer station, the sponsor, and person(s) served 

or the person legally responsible for 

that person. It authorizes the assignment of a RSVP volunteer in the home 

of a client, defines RSVP volunteer activities, and specifies supervision ar­ rangements. 

(h) Memorandum of Understanding. A 

written statement prepared and signed 

by the RSVP project sponsor and the 

volunteer station that identifies 

project requirements, working relationships and mutual responsibilities. 

(i) National Senior Service Corps 

(NSSC). The collective name for the 

Foster Grandparent Program (FGP), 

the Retired and Senior Volunteer Program (RSVP), and the Senior Companion Program (SCP), and Demonstration Programs established under Parts 

A, B, C, and E, Title II of the Act. 

NSSC is also referred to as the "Senior 

Corps". 

(j) Non-Corporation support (required). 

The percentage share of non-Federal 

cash and in-kind contributions required to be raised by the sponsor in 

support of the grant, including nonCorporation federal, state and local 

governments and privately raised contributions. 

(k) Non-Corporation support (excess). 

The amount of non-Federal cash and 

in-kind contributions generated by a 

sponsor in excess of the required percentage. 

(1) Performance measures. Indicators 

intended to help determine the impact 

of an RSVP project on the community, 

including the volunteers. Performance measures currently include, but are 

not limited to, the following performance indicators: 

(1) Output indicator. The amount or 

units of service that RSVP volunteers 

have completed, or the number of people the project has served. An output 

indicator does not provide information 

on benefits or other changes in the 

lives of the volunteers or the people 

served. 

(2) Outcome indicator. Specifies a 

change that has occurred in the lives of 

the people served or the volunteers. It 

is an observable and measurable indication of whether or not a project is 

making progress toward its outcome 

target. 

(m) Project. The locally planned and 

implemented RSVP activity or set of 

activities in a service area as agreed 

upon between a sponsor and the Corporation. 

(n) Qualified individual with a disability. An individual with a disability 

(as defined in the Rehabilitation Act, 

29 U.S.C. 705 (20)) who, with or without 

reasonable accommodation, can perform the essential functions of a volunteer position that such individual holds 

or desires. If a sponsor has prepared a written description before advertising or interviewing applicants for the position, the written description may be 

considered evidence of the essential 

functions of the volunteer position. 

(o) Service area. The geographically 

defined area approved in the grant application, in which RSVP volunteers are recruited, enrolled, and placed on 

assignments. 

(p) Sponsor. A public agency or private non-profit organization, either 

secular or faith-based, that is responsible for the operation of an RSVP 

project. 

(q) Trust Act. The National and Community Service Trust Act of 1993, as amended, Public Law 103--82, Sept. 21, 

1993, 107 Stat. 785. 

(r) United States and States. Each of 

the several States, the District of Columbia, the U.S. Virgin Islands, the 

Commonwealth of Puerto Rico, Guam 

and American Samoa, and Trust Territories of the Pacific Islands. 

(s) Volunteer station. A public agency, 

secular or faith-based private non-profit organization, or proprietary health 

811 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2553.21 

care organization that accepts the re­ sponsibility for assignment and supervision of RSVP volunteers in health, 

education, social service or related settings such as multi-purpose centers, 

home health care agencies, or similar 

establishments. Each volunteer station 

must be licensed or otherwise certified, 

when required, by the appropriate state or local government. Private homes are not volunteer stations. 

[64 FR 14135, Mar. 24, 1999, as amended at 69 

FR 60095, Oct. 7, 2004; 76 FR 20246, Apr. 12, 

2011] 

Subpart B-Eligibility and 

Responsibilities of a Sponsor 

§ 2553.21 Who is eligible to serve as a sponsor? 

The Corporation awards grants to 

public agencies, including Indian tribes 

and non-profit private organizations, 

both secular and faith-based, in the 

United Sates that have authority to 

accept and the capability to administer an RSVP project. 

[69 FR 60095, Oct. 7, 2004] 

§ 2553.22 What are the responsibilities 

of a sponsor? 

A sponsor is responsible for fulfilling 

all project management requirements 

necessary to accomplish the purposes 

of the RSVP program as specified in 

the Act. A sponsor shall not delegate or contract these responsibilities to an­ other entity. A sponsor shall comply 

with all regulations contained in this 

part, policies, and grant provisions prescribed by the Corporation. 

§ 2553.23 What are a sponsor's program responsibilities? 

A sponsor shall: 

(a) Focus RSVP resources to have a positive impact on critical human and 

social needs within the project service area. 

(b) Assess in collaboration with other 

community organizations or utilize ex­ isting assessments of the needs of the 

community or service area and develop 

strategies to respond to those needs 

using the resources of RSVP volunteers. 

(c) Develop and manage a system of 

volunteer stations to provide a wide 

45 CFR Ch. XXV (10-1-12 Edition) 

range of placement opportunities that 

appeal to persons age 55 and over by: 

(1) Ensuring that a volunteer station 

is a public or non-profit private organization, whether secular or faith-based, or an eligible proprietary health care agency, capable of serving as a volunteer station for the placement of RSVP 

volunteers to meet locally identified 

needs; 

(2) Ensuring the placement of RSVP 

volunteers is governed by a Memorandum of Understanding: 

(i) That is negotiated prior to placement; 

(ii) That specifies the mutual responsibilities of the station and sponsor; 

(iii) That is renegotiated at least 

every three years; and 

(iv) That states the station assures it 

will not discriminate against RSVP 

volunteers or in the operation of its 

program on the basis of race; color; national origin, including individuals 

with limited English proficiency; sex; 

age; political affiliation; religion; or on 

the basis of disability, if the participant or member is a qualified individual with a disability; and 

(3) Annually assessing the placement 

of RSVP volunteers to ensure the safety of volunteers and their impact on meeting the needs of the community. 

(d) Consider the demographic makeup of the project service area in the enrollment of RSVP volunteers, taking 

special efforts to recruit eligible individuals from minority groups, persons 

with disabilities and under represented 

groups. 

(e) Encourage the most efficient and 

effective use of RSVP volunteers by co­ ordinating project services and activities with related national, state and 

local programs, including other Corporation programs. 

(f) Develop, and annually update, a plan for promoting service by older 

adults within the project service area. 

(g) Conduct an annual assessment of 

the accomplishments and impact of the 

project and how they meet the identified needs and problems of the commu­ nity. 

(h) Provide RSVP volunteers with 

cost reimbursements specified in 

§2553.43. 

812 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2553.26 

(i) Minimize any disruption to RSVP 

volunteers when one sponsor is replaced by another as a result of relinquishment, denial of refunding, or re­ competition of a grant. 

(j) Make every effort to meet such 

performance measures as may be established for the RSVP project by mutual 

agreement. 

[64 FR 14135, Mar. 24, 1999, as amended at 67 

FR 6875, Feb. 14, 2002; 69 FR 60095, Oct. 7, 2004; 

76 FR 20246, Apr. 12, 2011] 

§ 2553.24 What are a sponsor's responsibilities for securing community 

participation? 

(a) A sponsor shall secure community 

participation in local project operation 

by establishing an Advisory Council or 

a similar organizational structure with 

a membership that includes people: 

(1) Knowledgeable about human and 

social needs of the community; 

(2) Competent in the field of community service and volunteerism; 

(3) Capable of helping the sponsor 

meet its administrative and program 

responsibilities including fund-raising, 

publicity and programming for impact; 

(4) With an interest in and knowledge 

of the capability of older adults; and 

(5) Of a diverse composition that reflects the demographics of the service 

area. 

(b) The sponsor determines how this 

participation shall be secured, consistent with the provisions of paragraphs (a)(l) through (a)(5) of this section. 

§ 2553.25 What are a sponsor's administrative responsibilities? 

A sponsor shall: 

(a) Assume full responsibility for securing maximum and continuing community financial and in-kind support 

to operate the project successfully. 

(b) Provide levels of staffing and re­ sources appropriate to accomplish the 

purposes of the project and carry out 

its project management responsibilities. 

(c) Employ a full-time project director to accomplish program objectives 

and manage the functions and activities delegated to project staff for NSSC 

concurrently in another capacity, paid 

or unpaid, during established working 

hours. The project director may participate in activities to coordinate program resources with those of related 

local agencies, boards or organizations. 

A sponsor may negotiate the employment of a part-time project director 

with the Corporation when it can be 

demonstrated that such an arrangement will not adversely affect the size, 

scope and quality of project operations. 

(d) Consider all project staff as sponsor employees subject to its personnel 

policies and procedures. 

(e) Compensate project staff at a 

level that is comparable with similar 

staff positions in the sponsor organization and/or project service area. 

(f) Establish risk management policies and procedures covering project 

and RSVP activities. This includes provision of appropriate insurance coverage for RSVP volunteers, vehicles 

and other properties used in the 

project. 

(g) Establish record keeping and reporting systems in compliance with 

Corporation requirements that ensure 

quality of program and fiscal operations, facilitate timely and accurate 

submission of required reports and cooperate with Corporation evaluation 

and data collection efforts. 

(h) Comply with and ensure that all 

volunteer stations comply with all applicable civil rights laws and regulations, including providing reasonable 

accommodation to qualified individuals with disabilities. 

(i) Conduct criminal history checks 

on all grant-funded staff employed on 

or after October 1, 2009, in accordance 

with the requirements in 45 CFR 

2540.200--207. 

[64 FR 14135, Mar. 24, 1999, as amended at 74 

FR 46509, Sept. 10, 2009] 

§ 2553.26 May a sponsor administer 

more than one program grant from 

the Corporation? 

A sponsor may administer more than 

one Corporation program grant. 

program(s) within its control. A fulltime project director shall not serve 

813 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2553.31 

Subpart C-Suspension, Termination and Denial of Refunding 

§ 2553.31 What are the rules on suspension, termination and denial of re­ funding of grants? 

(a) The Chief Executive Officer or designee is authorized to suspend further payments or to terminate payments under any grant providing as­ sistance under the Act whenever he or she determines there is a material fail­ ure to comply with applicable terms 

and conditions of the grant. The Chief 

Executive Officer shall prescribe procedures to insure that: 

(1) Assistance under the Act shall not 

be suspended for failure to comply with 

applicable terms and conditions, except 

in emergency situations for thirty 

days; 

(2) An application for refunding 

under the Act may not be denied unless 

the recipient has been given: 

(i) Notice at least 75 days before the 

denial of such application of the possibility of such denial and the grounds 

for any such denial; and 

(ii) Opportunity to show cause why 

such action should not be taken; 

(3) In any case where an application 

for refunding is denied for failure to 

comply with the terms and conditions 

of the grant, the recipient shall be afforded an opportunity for an informal 

hearing before an impartial hearing officer, who has been agreed to by the re­ cipient and the Corporation; and 

(4) Assistance under the Act shall not 

be terminated for failure to comply 

with applicable terms and conditions 

unless the recipient has been afforded 

reasonable notice and opportunity for a 

full and fair hearing. 

(b) In order to assure equal access to 

all recipients, such hearings or other 

meetings as may be necessary to fulfill 

the requirements of this section shall 

be held in locations convenient to the 

recipient agency. 

( c) Beginning in FY 2013, the procedures for suspension and termination 

of RSVP grants, which are specified in 

45 CFR part 1206, shall continue to 

apply, but the procedures in part 1206 

applicable to denial of refunding of an 

RSVP grantee shall not apply to any 

grant awarded through the competitive 

45 CFR Ch. XXV (10-1-12 Edition) 

process described in § 2553. 71 of this 

part. 

[64 FR 14135, Mar. 24, 1999, as amended at 76 

FR 20246, Apr. 12, 2011] 

Subpart D-Eligibility, Cost Reimbursements and Volunteer Assignments 

§ 2553.41 Who is eligible to be a RSVP 

volunteer? 

(a) To be an RSVP volunteer, an individual must: 

(1) Be 55 years of age or older; 

(2) Agree to serve without compensation; 

(3) Reside in or nearby the commu­ nity served by RSVP; 

(4) Agree to abide by all requirements as set forth in this part. 

(b) Eligibility to serve as a RSVP 

volunteer shall not be restricted on the 

basis of formal education, experience, 

race, religion, color, national origin, 

sex, age, handicap or political affiliation. 

§ 2553.42 Is a RSVP volunteer a federal 

employee, an employee of the spon­ sor or of the volunteer station? 

RSVP volunteers are not employees 

of the sponsor, the volunteer station, 

the Corporation, or the Federal Government. 

§ 2553.43 What cost reimbursements are provided to RSVP volunteers? 

RSVP volunteers are provided the 

following cost reimbursements within 

the limits of the project's available resources: 

(a) Transportation. RSVP volunteers 

shall receive assistance with the cost 

of transportation to and from volunteer assignments and official project 

activities, including orientation, training, and recognition events. 

(b) Meals. RSVP volunteers shall receive assistance with the cost of meals 

taken while on assignment. 

(c) Recognition. RSVP volunteers 

shall be provided recognition for their 

service. 

(d) Insurance. A RSVP volunteer is 

provided with the Corporation-specified minimum levels of insurance as 

follows: 

814 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2553.61 

(1) Accident insurance. Accident insurance covers RSVP volunteers for personal injury during travel between 

their homes and places of assignment, 

during their volunteer service, during 

meal periods while serving as a volunteer, and while attending project sponsored activities. Protection shall be 

provided against claims in excess of 

any benefits or services for medical 

care or treatment available to the volunteer from other sources. 

(2) Personal liability insurance. Protection is provided against claims in excess of protection provided by other insurance. It does not include professional liability coverage. 

(3) Excess automobile liability insurance. (i) For RSVP volunteers who 

drive in connection with their service, 

protection is provided against claims 

in excess of the greater of either: 

(A) Liability insurance the volunteers carry on their own automobiles; 

or 

(B) The limits of applicable state financial responsibility law, or in its absence, levels of protection to be determined by the Corporation for each person, each accident, and for property 

damage. 

(ii) RSVP volunteers who drive their 

personal vehicles to or on assignments 

or project-related activities shall 

maintain personal automobile liability 

insurance equal to or exceeding the 

levels established by the Corporation. 

(e) Other volunteer expenses. RSVP 

volunteers may be reimbursed for expenses incurred while performing their 

volunteer assignments, provided these 

expenses are described in the Memorandum of Understanding negotiated 

with the volunteer station and there 

are sufficient funds available to cover 

these expenses and meet all other requirements identified in the notice of 

grant award. 

[64 FR 14135, Mar. 24, 1999, as amended at 69 

FR 20831, Apr. 19, 2004; 69 FR 56718, Sept. 22, 

2004] 

§ 2553.44 May cost reimbursements re­ ceived by a RSVP volunteer be subject to any tax or charge, treated as wages or compensation, or affect 

eligibility to receive assistance from 

other programs? 

No. RSVP volunteers' cost reimbursements are not subject to any tax or charge and are not treated as wages or compensation for the purposes of un­ employment insurance, worker's com­ pensation, temporary disability, retirement, public assistance, or similar benefit payments or minimum wage laws. 

Cost reimbursements are not subject to 

garnishment, do not reduce or eliminate the level of or eligibility for as­ sistance or services a volunteer may be 

receiving under any governmental program. 

Subpart E-Volunteer Terms of 

Service 

§ 2553.51 What are the terms of service 

of a RSVP volunteer? 

A RSVP volunteer shall serve weekly on a regular basis, or intensively on short-term assignments consistent 

with the assignment description. 

§ 2553.52 Under what circumstances 

may a RSVP volunteer's service be 

terminated? 

(a) A sponsor may remove a RSVP 

volunteer from service for cause. Grounds for removal include but are not limited to: extensive and unauthorized absences; misconduct; inability to 

perform assignments; and failure to ac­ cept supervision. 

(b) The sponsor shall establish appropriate policies on service termination as well as procedures for appeal from 

such adverse action. 

Subpart F-Responsibilities of a 

Volunteer Station 

§ 2553.61 When may a sponsor serve as a volunteer station? 

The sponsor may function as a volunteer station, provided that no more than 5% of the total number of volunteers budgeted for the project are as­ signed to it in administrative or support positions. This limitation does not 

apply to the assignment of volunteers 

to other programs administered by the 

815 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2553.62 

sponsor or special volunteer activities 

of the project. The RSVP project itself 

may function as a volunteer station or 

may initiate special volunteer activities provided the Corporation agrees 

that these activities are in accord with 

program objectives and will not hinder 

overall project operations. 

§ 2553.62 What are the responsibilities 

of a volunteer station? 

A volunteer station shall undertake 

the following responsibilities in support of RSVP volunteers: 

(a) Develop volunteer assignments 

that impact critical human and social 

needs, and regularly assess those assignments for continued appropriateness; 

(b) Assign staff member responsible 

for day to day oversight of the placement of RSVP volunteers within the 

volunteer station and for assessing the 

impact of volunteers in addressing 

community needs; 

(c) Obtain a Letter of Agreement for 

an RSVP volunteer assigned in-home. 

The Letter of Agreement shall comply 

with all Federal, State and local regulations; 

(d) Keep records and prepare reports 

as required; 

(e) Comply with all applicable civil 

rights laws and regulations including 

reasonable accommodation for RSVP 

volunteers with disabilities; and 

(f) Provide assigned RSVP volunteers 

the following support: 

(1) Orientation to station and appropriate in-service training to enhance 

performance of assignments; 

(2) Resources required for performance of assignments including reasonable accommodation; 

(3) Supervision while on assignment; 

(4) Appropriate recognition; and 

(5) Provide for the safety of RSVP 

volunteers assigned to it. 

(g) Undertake such other responsibilities as may be necessary to the successful performance of RSVP volunteers in their assignments or as agreed 

to in the Memorandum of Understanding. 

45 CFR Ch. XXV (10-1-12 Edition) 

Subpart G-Application and Fiscal 

Requirements 

§2553.71 What is the process for application and award of a grant? 

As funds become available, the Corporation solicits applications for RSVP 

grants from eligible organizations 

through a competitive process. 

(a) What are the application requirements for an RSVP grant? An applicant 

must: 

(1) Submit required information determined by the Corporation. 

(2) Demonstrate compliance with any 

applicable requirements specified in 

the Notice of Funding Availability or Notice of Funding Opportunity. 

(b) What process does the Corporation 

use to select new RSVP grantees? (1) The 

Corporation reviews and determines 

the merits of an application by its responsiveness to published guidelines 

and to the overall purpose and objectives of the program. In conducting its 

review during the competitive process, 

the Corporation considers the input 

and opinions of those serving on a peer 

review panel, including members with 

expertise in senior service and aging, 

and may conduct site inspections, as appropriate. 

(2) The selection process includes: 

(i) Determining whether an application complies with the application re­ quirements, such as deadlines, eligibility, and programmatic requirements, including performance measurement requirements; 

(ii) Applying published selection criteria, as stated in the applicable Notice 

of Funding Availability or Notice of 

Funding Opportunity, to assess the 

quality of the application; 

(iii) Applying any applicable priorities or preferences, as stated in the applicable Notice of Funding Availability or Notice of Funding Opportunity; 

(iv) Ensuring innovation and geographic, demographic, and programmatic diversity across the Corporation's RSVP grantee portfolio; and 

(v) Identifying the applications that 

most completely respond to the published guidelines and offer the highest 

probability of successfully carrying out 

the overall purpose and objectives of 

the program. 

816 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2553.72 

(c) How is a grant awarded? (1) Subject 

to the availability of funds, the award 

will be documented by a Notice of 

Grant Award (NGA). 

(2) The Corporation and the sponsoring organization are parties to the 

NGA. The NGA will document the 

sponsor's commitment to fulfill specific programmatic objectives and financial obligations. It will document 

the extent of the Corporation's obligation to provide assistance to the spon­ sor. 

(d) What happens if the Corporation rejects an application? The Corporation 

will return to the applicant an application that is not approved for funding, 

informing the applicant of the Corporation's decision. 

(e) For what period of time does the 

Corporation award a grant? The Corporation awards an RSVP grant for a specified period that is 3 years in duration with an option for a grant renewal 

of 3 years, if the grantee's performance 

and compliance with grant terms and 

conditions are satisfactory. The Corporation will use the Denial of Refunding procedures set forth in 45 CFR part 

1206 to deny funding to a grantee when 

the Corporation determines that the 

grant should not be renewed for an additional 3 years. 

(f) What assistance in preparation for 

competitive award of all RSVP grants will 

the Corporation provide to sponsors who 

have previously received a grant and 

whose grants are expiring in fiscal year 

2011, 2012, or 2013? (1) For each grant ex­ piring in fiscal years 2011, 2012, or 2013, 

the Corporation will evaluate the 

grant, to the maximum extent practicable, in fiscal years 2010, 2011, and 

2012, respectively. 

(2) The evaluation will give particular attention to the different needs 

of rural and urban projects, including 

those serving Native American commu­ nities, and will evaluate the extent to 

which the sponsor meets or exceeds 

performance measures, outcomes, and 

other criteria established by the Corporation. 

(3) To the maximum extent practicable, the Corporation will ensure that each evaluation is conducted by a review team made up of trained individuals who are knowledgeable about 

RSVP, including current or former employees of the Corporation and representatives of communities served by 

RSVP volunteers, who will provide 

their input and opinions concerning 

each grant. 

(4) The Corporation will use the evaluation findings as the basis for providing recommendations for program 

improvement, and for the provision of 

training and technical assistance. 

(5) The evaluation will assess: 

(i) The project's strengths and areas in need of improvement; 

(ii) Whether the project has adequately addressed population and com­ munity-wide needs; 

(iii) The efforts of the project to collaborate with other community-based 

organizations, units of government, 

and entities providing services to sen­ iors, taking into account barriers to 

such collaboration that such programs 

may encounter; 

(iv) The project's compliance with 

the program requirements for the appropriate use of Federal funds as em­ bodied in a protocol for fiscal management; 

(v) To what extent the project is in 

conformity with the eligibility, outreach, enrollment, and other requirements for RSVP projects; and 

(vi) The extent to which the project 

is achieving other measures of performance developed by the Corporation, in consultation with the review 

team. 

[76 FR 20246, Apr. 12, 2011] 

§2553.72 What are project funding re­ quirements? 

(a) Is non-Corporation support required? (1) A Corporation grant may be 

awarded to fund up to 90 percent of the 

total project cost in the first year, 80 

percent in the second year, and 70 percent in the third and succeeding years. 

(2) A sponsor is responsible for identifying non-Corporation funds which 

may include in-kind contributions. 

(b) Under what circumstances does the 

Corporation allow less than the percentage identified in paragraph (a) of this section? The Corporation may allow exceptions to the local support requirement 

identified in paragraph (a) of this sec­ tion in cases of demonstrated need 

such as: 

817 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2553.73 

(1) Initial difficulties in the development of local funding sources during 

the first three years of operations; or (2) An economic downturn, the occur­ rence of a natural disaster, or similar 

events in the service area that severely 

restrict or reduce sources of local funding support; or (3) The unexpected discontinuation of 

local support from one or more sources that a project has relied on for a period 

of years. 

(c) May the Corporation restrict how a 

sponsor uses locally generated contributions in excess of the non-Corporation 

support required? Whenever locally generated contributions to RSVP projects are in excess of the non-Corporation 

funds required (10 percent of the total 

cost in the first year, 20 percent in the 

second year and 30 percent in the third 

and succeeding years), the Corporation 

may not restrict the manner in which 

such contributions are expended provided such expenditures are consistent 

with the provisions of the Act. 

(d) Are program expenditures subject to 

audit? All expenditures by the grantee 

of Federal and Non-Federal funds, including expenditures from excess locally generated contributions, are subject to audit by the Corporation, its Inspector General, or their authorized 

agents. 

[64 FR 14135, Mar. 24, 1999, as amended at 67 

FR 6875, Feb. 14, 2002] 

§2553.73 What are grants management 

requirements? 

What rules govern a sponsor's man­ agement of grants? 

(a) A sponsor shall manage a grant 

awarded in accordance with: 

(1) The Act; 

(2) Regulations in this part; 

(3) 45 CFR Part 2541, "Uniform Administrative Requirements for Grants 

and Cooperative Agreements to State 

and Local Governments", or 45 CFR 

Part 2543, "Grants and Agreements 

with Institutions of Higher Education, 

Hospitals, and Other Non-Profit Organizations"; 

(4) The following 0MB Circulars, as appropriate A-21, "Cost Principles for 

Educational Institutions", A--87, "Cost 

Principles for State, Local and Indian 

Tribal Governments", A-122, "Cost 

Principles for Non-Profit Organiza45 CFR Ch. XXV (10-1-12 Edition) 

tions", and A-133, "Audits of States, 

Local Governments, and Other NonProfit Organizations" (0MB circulars are available electronically at the 0MB 

homepage www.whitehouse.gov/WH/EOP/ 

omb); and 

(5) Other applicable Corporation re­ quirements. 

(b) Project support provided under a Corporation grant shall be furnished at 

the lowest possible cost consistent 

with the effective operation of the 

project. 

(c) Project costs for which Corporation funds are budgeted must be justified as being essential to project operation. 

(d) Volunteer expense items, including transportation, meals, recognition 

activities and items purchased at the 

volunteers own expense that are not re­ imbursed, are not allowable as con­ tributions to the non-Federal share of 

the budget. 

(e) Costs of other insurance not re­ quired by program policy, but maintained by a sponsor for the general con­ duct of its activities are allowable with 

the following limitations: 

(1) Types and extent of and cost of 

coverage are according to sound institutional and business practices; 

(2) Costs of insurance or a contribution to any reserve covering the risk of 

loss of or damage to Governmentowned property are unallowable unless 

the government specifically requires 

and approves such costs; and 

(3) The cost of insurance on the lives 

of officers, trustees or staff is unallowable except where such insurance is 

part of an employee plan which is not 

unduly restricted. 

(f) Costs to bring a sponsor into basic 

compliance with accessibility requirements for individuals with disabilities are not allowable costs. 

(g) Payments to settle discrimination 

allegations, either informally through a settlement agreement or formally as a result of a decision finding discrimination, are not allowable costs. 

(h) Written Corporation State Office 

approval/concurrence is required for a change in the approved service area. 

[64 FR 14135, Mar. 24, 1999, as amended at 67 

FR 6875, Feb. 14, 2002; 69 FR 20831, Apr. 19, 

2004] 

818 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2553.91 

Subpart H-Non-Corporation 

Funded Projects 

§ 2553.81 Under what conditions may an agency or organization sponsor a RSVP project without Corporation funding? 

An eligible agency or organization 

who wishes to sponsor a RSVP project 

without Corporation funding, must 

sign a Memorandum of Agreement with 

the Corporation that: 

(a) Certifies its intent to comply with 

all Corporation requirements for the 

Retired and Senior Volunteer Program; 

and 

(b) Identifies responsibilities to be 

carried out by each party. 

§ 2553.82 What benefits are a non-Corporation funded project entitled to? 

(a) All technical assistance and ma­ terials provided to Corporation-funded 

RSVP projects; and 

(b) The application of the provisions 

of 42 U.S.C. 5044 and 5058. 

§ 2553.83 What financial obligation 

does the Corporation incur for non­ Corporation funded projects? 

Entry into a Memorandum of Agreement with, or issuance of an NGA to a sponsor of a non-Corporation funded 

project does not create a financial obligation on the part of the Corporation 

for any costs associated with the 

project. 

§ 2553.84 What happens if a non-Corporation funded sponsor does not 

comply with the Memorandum of 

Agreement? 

A non-Corporation funded project 

sponsor's noncompliance with the 

Memorandum of Agreement may result 

in suspension or termination of the 

Corporation's agreement and all benefits specified in § 2553.82. 

Subpart I-Restrictions and Legal 

Representation 

§ 2553.91 What legal limitations apply 

to the operation of the RSVP Program and to the expenditure of 

grant funds? 

(a) Political activities. (1) No part of 

any grant shall be used to finance, directly or indirectly, any activity to influence the outcome of any election to 

public office, or any voter registration 

activity. 

(2) No project shall be conducted in a manner involving the use of funds, the 

provision of services, or the employment or assignment of personnel in a matter supporting or resulting in the 

identification of such project with: 

(i) Any partisan or nonpartisan political activity associated with a can­ didate, or contending faction or group, 

in an election; or 

(ii) Any activity to provide voters or prospective voters with transportation 

to the polls or similar assistance in 

connection with any such election; or 

(iii) Any voter registration activity, 

except that voter registration applications and nonpartisan voter registration information may be made available to the public at the premises of 

the sponsor. But in making registration applications and nonpartisan 

voter registration information available, employees of the sponsor shall 

not express preferences or seek to influence decisions concerning any can­ didate, political party, election issue, or voting decision. 

(3) The sponsor shall not use grant 

funds in any activity for the purpose of 

influencing the passage or defeat of 

legislation or proposals by initiative 

petition, except: 

(i) In any case in which a legislative 

body, a committee of a legislative 

body, or a member of a legislative body 

requests any volunteer in, or employee 

of such a program to draft, review or testify regarding measures or to make 

representation to such legislative body, 

committee or member; or 

(ii) In connection with an authorization or appropriations measure directly 

affecting the operation of the RSVP 

Program. 

(b) Nondisplacement of employed workers. A RSVP volunteer shall not perform any service or duty or engage in 

any activity which would otherwise be 

performed by an employed worker or which would supplant the hiring of or result in the displacement of employed 

workers, or impair existing contracts 

for service. 

(c) Compensation for service. (1) An 

agency or organization to which NSSC 

819 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2553.92 

volunteers are assigned, or which operates or supervises any NSSC program, 

shall not request or receive any com­ pensation from NSSC volunteers or from beneficiaries for services of NSSC 

volunteers. 

(2) This section does not prohibit a sponsor from soliciting and accepting 

voluntary contributions from the com­ munity at large to meet its local support obligations under the grant; or, 

from entering into agreements with 

parties other than beneficiaries to support additional volunteers beyond 

those supported by the Corporation 

grant. 

(3) A RSVP volunteer station may 

contribute to the financial support of 

the RSVP Program. However, this support shall not be a required precondition for a potential station to obtain RSVP volunteers. 

(4) If a volunteer station agrees to 

provide funds to support additional volunteers or pay for other volunteer support costs, the agreement shall be stated in a written Memorandum of Understanding. The sponsor shall withdraw 

services if the station's inability to 

provide monetary or in-kind support to 

the project under the Memorandum of 

Understanding diminishes or jeopardizes the project's financial capabilities 

to fulfill its obligations. 

(5) Under no circumstances shall a RSVP volunteer receive a fee for serv­ ice from service recipients, their legal 

guardian, members of their family, or friends. 

(d) Labor and anti-labor activity. The 

sponsor shall not use grant funds directly or indirectly to finance labor or anti-labor organization or related ac­ tivity. 

(e) Fair labor standards. A sponsor 

that employs laborers and mechanics 

for construction, alteration, or repair 

of facilities shall pay wages at prevailing rates as determined by the Secretary of Labor in accordance with the 

Davis-Bacon Act, as amended, 40 U.S.C. 

276a. 

(f) Nondiscrimination. A sponsor or sponsor employee shall not discriminate against a RSVP volunteer on the 

basis of race, color, national origin, 

sex, age, religion, or political affiliation, or on the basis of disability, if 

45 CFR Ch. XXV (10-1-12 Edition) 

the volunteer with a disability is qualified to serve. (g) Religious activities. (1) A RSVP volunteer or a member of the project staff 

funded by the Corporation shall not 

give religious instruction, conduct wor­ ship services or engage in any form of 

proselytization as part of his/her duties. 

(2) A sponsor or volunteer station 

may retain its independence and may 

continue to carry out its mission, including the definition, development, 

practice, and expression of its religious 

beliefs, provided that it does not use Corporation funds to support any inherently religious activities, such as worship, religious instruction, or proselytization, as part of the programs or services funded. If an organization con­ ducts such activities, the activities 

must be offered separately, in time or location, from the programs or services 

funded under this part. 

(h) Nepotism. Persons selected for 

project staff positions shall not be re­ lated by blood or marriage to other 

project staff, sponsor staff or officers, or members of the sponsor Board of Directors, unless there is written concur­ rence from the Advisory Council or community group established by the 

sponsor under subpart B of this part, 

and with notification to the Corporation. 

[64 FR 14135, Mar. 24, 1999, as amended at 69 

FR 60095, Oct. 7, 2004] 

§ 2553.92 What legal coverage does the 

Corporation make available to 

RSVP volunteers? 

It is within the Corporation's discretion to determine if Counsel is em­ ployed and counsel fees, court costs, 

bail and other expenses incidental to 

the defense of a RSVP volunteer are paid in a criminal, civil or administrative proceeding, when such a proceeding arises directly out of perform­ ance of the volunteer's activities. The 

circumstances under which the Corporation may pay such expenses are specified in 45 CFR part 1220. 

Subpart J-Performance 

Measurement 

SOURCE: 76 FR 20247, Apr. 12, 2011, unless 

otherwise noted. 

820 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2553.107 

§ 2553.100 What is the purpose of this 

subpart? 

This subpart sets forth the minimum 

performance measurement requirements for Corporation-funded Retired 

and Senior Volunteer Program (RSVP) 

projects. 

§ 2553.101 What is the purpose of performance measurement? 

The purpose of performance measure­ ment is to strengthen the RSVP 

project and foster continuous improvement. Reporting on performance meas­ ures is used by the Corporation as part 

of assessing the impact of the project on the community and on the accom­ plishment of the objectives established 

in the Corporation's Strategic Plan. In 

addition, as part of the competitive 

process, performance measures are used to assess how an applicant for a grant approaches the design of volunteer activities and the measurement of 

their impact on community needs. 

§ 2553.102 What performance measure­ ment information must be part of an application for funding under 

RSVP? 

An application to the Corporation for 

funding under RSVP must contain: 

(a) Performance measures. 

(b) Estimated performance data for 

the project years covered by the application. 

(c) Actual performance data, where 

available, for the preceding completed 

project year. 

§ 2553.103 Who develops the perform­ ance measures? 

(a) An applicant is responsible for developing its own project-specific performance measures. 

(b) In addition, the Corporation may 

establish performance measures that 

will apply to all Corporation-sponsored 

RSVP projects, which sponsors will be 

responsible for meeting. 

§ 2553.104 What performance measures must be submitted to the Corporation and how are these submitted? 

(a) An applicant for Corporation 

funds is required to submit at least one of each of the following types of performance measures as part of their application. The Corporation will provide 

standard forms. 

(1) Output indicators. 

(2) Outcome indicators. 

(b) An applicant must also submit 

any uniform performance measures the 

Corporation may establish for all applicants. 

(c) The Corporation may specify additional requirements relating to performance measures on an annual basis 

in program guidance and related materials. 

§ 2553.105 How are performance meas­ ures approved and documented? 

(a) The Corporation reviews and approves performance measures for all 

applicants that apply for funding from 

the Corporation. 

(b) An applicant must follow Corporation-provided guidance and formats provided when submitting performance measures. (c) Final performance measures, as negotiated between the applicant and 

the Corporation, will be documented in 

the Notice of Grant Award (NGA). 

§ 2553.106 How does a sponsor report 

performance measures to the Corporation? 

The Corporation will set specific re­ porting requirements, including frequency and deadlines, concerning performance measures established in the 

grant award. A sponsor is required to 

report on the actual results that oc­ curred when implementing the grant 

and to regularly measure the project's 

performance. 

§ 2553.107 What must a sponsor do if it 

cannot meet its performance meas­ ures? 

Whenever a sponsor finds it is not on track to meet its performance meas­ ures, it must develop a plan to get back on track or submit a request to the 

Corporation to amend its performance measures. The request must include all 

of the following: 

(a) Why the project is not on track to 

meet its performance requirements; 

(b) How the project has been tracking 

performance measures; 

(c) Evidence of corrective steps 

taken; 

(d) Any new proposed performance 

measures; and 

821 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2553.108 

(e) A plan to ensure that the project 

will meet the new proposed measure(s). 

§ 2553.108 When may a sponsor change a project's performance measures? 

Performance measures may be 

changed only if the Corporation approves the sponsor's request to do so. 

§ 2553.109 What happens if a sponsor 

fails to meet the performance meas­ ures included in the Notice of Grant 

Award (NGA)? 

If a sponsor fails to meet a target 

performance measure established in 

the NGA, the Corporation will negotiate a period of no more than one year 

for meeting the performance measure. At that point, if the sponsor still fails 

to meet the performance measure, the 

Corporation may take one or more of 

the following actions: 

(a) Reduce the amount of the grant; 

(b) Suspend, terminate, or deny re­ funding of the grant, in accordance 

with the provisions of Section 2553.31 of 

this part; 

(c) Take this information into ac­ count in assessing any application 

from the organization for a new grant or augmentation of an existing grant 

under any program administered by 

the Corporation; 

(d) Amend the terms of any Corporation grant to the organization; or 

(e) Take other actions that the Corporation deems appropriate. 

PART 2554-PROGRAM FRAUD 

CIVIL REMEDIES ACT REGULATIONS 

Sec. 

OVERVIEW AND DEFINITIONS 

2554.1 Overview of regulations. 

2554.2 What kind of conduct will result in 

program fraud enforcement? 

2554.3 What is a claim? 

2554.4 What is a statement? 

2554.5 What is a false claim or statement? 

2554.6 What does the phrase "know or have 

reason to know" mean? 

PROCEDURES LEADING TO ISSUANCE OF A 

COMPLAINT 

2554.7 Who investigates program fraud? 

2554.8 What happens if program fraud is suspected? 

2554.9 Who is the Corporation's authority 

head? 

45 CFR Ch. XXV (10-1-12 Edition) 

2554.10 When will the Corporation issue a 

complaint? 

2554.11 What is contained in a complaint? 

2554.12 How will the complaint be served? 

PROCEDURES FOLLOWING SERVICE OF A 

COMPLAINT 

2554.13 How does a defendant respond to the 

complaint? 

2554.14 What happens if a defendant fails to 

file an answer? 

2554.15 What happens once an answer is 

filed? 

HEARING PROVISIONS 

2554.16 What kind of hearing is contemplated? 

2554.17 At the hearing, what rights do the 

parties have? 

2554.18 What is the role of the ALJ? 

2554.19 Can the reviewing official or ALJ be 

disqualified? 

2554.20 How are issues brought to the attention of the ALJ? 

2554.21 How are papers served? 

2554.22 How is time computed? 

2554.23 What happens during a prehearing 

conference? 

2554.24 What rights are there to review documents? 

2554.25 What type of discovery is authorized 

and how is it conducted? 

2554.26 Are there limits on disclosure of documents or discovery? 

2554.27 Are witness lists exchanged before 

the hearing? 

2554.28 Can witnesses be subpoenaed? 

2554.29 Who pays the costs for a subpoena? 

2554.30 Are protective orders available? 

2554.31 Where is the hearing held? 

2554.32 How will the hearing be conducted 

and who has the burden of proof? 

2554.33 How is evidence presented at the 

hearing? 

2554.34 How is witness testimony presented? 

2554.35 Will the hearing proceedings be recorded? 

2554.36 Can a party informally discuss the 

case with the ALJ? 

2554.37 Are there sanctions for misconduct? 

2554.38 Are post-hearing briefs required? 

DECISIONS AND APPEALS 

2554.39 How is the case decided? 

2554.40 How are penalty and assessment 

amounts determined? 

2554.41 Can a party request reconsideration 

of the initial decision? 

2554.42 When does the initial decision of the 

ALJ become final? 

2554.43 What are the procedures for appealing the ALJ decision? 

2554.44 What happens if an initial decision is 

appealed? 

2554.45 Are there any limitations on the 

right to appeal to the authority head? 

822 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2554.4 

2554.46 How does the authority head dispose 

of an appeal? 

2554.47 What judicial review is available? 

2554.48 Can the administrative complaint be 

settled voluntarily? 

2554.49 How are civil penalties and assessments collected? 

2554.50 What happens to collections? 

2554.51 What if the investigation indicates 

criminal misconduct? 

2554.52 How does the Corporation protect 

the rights of defendants? 

AUTHORITY: Pub. L. 99-509, Secs. 6101--6104, 

100 Stat. 1874 (31 U.S.C. 3801-3812); 42 U.S.C. 

12651c-12651d. 

SOURCE: 72 FR 61912, Oct. 20, 2006, unless 

otherwise noted. 

OVERVIEW AND DEFINITIONS 

§ 2554.1 Overview of regulations. 

(a) Statutory basis. This part implements the Program Fraud Civil Remedies Act of 1986, 31 U.S.C. 3801-3812 

("the Act"). The Act provides the Corporation and other federal agencies 

with an administrative remedy to impose civil penalties and assessments 

against persons making false claims 

and statements. The Act also provides 

due process protections to all persons 

who are subject to administrative proceedings under this part. 

(b) Possible remedies for program fraud. 

In addition to any other penalties that 

may be prescribed by law, a person who 

submits, or causes to be submitted, a false claim or a false statement to the 

Corporation is subject to a civil penalty of not more than $5,000 for each 

statement or claim, regardless of 

whether property, services, or money is 

actually delivered or paid by the Corporation. If the Corporation has made 

any payment, transferred property, or provided services in reliance on a false 

claim, the person submitting it also is 

subject to an assessment of not more than twice the amount of the false 

claim. This assessment is in lieu of 

damages sustained by the Corporation 

because of the false claim. 

§ 2554.2 What kind of conduct will re­ sult in program fraud enforcement? 

(a) Any person who makes, or causes to be made, a false, fictitious, or fraudulent claim or written statement to 

the Corporation is subject to program 

fraud enforcement. A "person" means 

any individual, partnership, corporation, association, or other legal entity. 

(b) If more than one person makes a 

false claim or statement, each person 

is liable for a civil penalty. If more than one person makes a false claim 

which has induced the Corporation to 

make payment, an assessment is imposed against each person. The liability of each such person to pay the assessment is joint and several, that is, 

each is responsible for the entire 

amount. 

(c) No proof of specific intent to defraud is required to establish liability 

under this part. 

§ 2554.3 What is a claim? 

(a) Claim means any request, demand, or submission: 

(1) Made to the Corporation for property, services, or money; 

(2) Made to a recipient of property, 

services, or money from the Corporation or to a party to a contract with 

the Corporation for property or serv­ ices, or for the payment of money. This 

provision applies only when the claim 

is related to property, services or money from the Corporation or to a contract with the Corporation; or 

(3) Made to the Corporation which de­ creases an obligation to pay or account 

for property, services, or money. 

(b) A claim can relate to grants, 

loans, insurance, or other benefits, and 

includes the Corporation guaranteed 

loans made by participating lenders. A 

claim is made when it is received by 

the Corporation, an agent, fiscal intermediary, or other entity acting for the 

Corporation, or when it is received by 

the recipient of property, services, or money, or the party to a contract. 

(c) Each voucher, invoice, claim 

form, or individual request or demand 

for property, services, or money constitutes a separate claim. 

§ 2554.4 What is a statement? 

A "statement" means any written 

representation, certification, affirmation, document, record, or accounting or bookkeeping entry made with re­ spect to a claim or with respect to a contract, bid or proposal for a con­ tract, grant, loan or other benefit from 

823 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2554.5 

the Corporation. "From the Corporation" means that the Corporation provides some portion of the money or property in connection with the con­ tract, bid, grant, loan, or benefit, or is 

potentially liable to another party for some portion of the money or property 

under such contract, bid, grant, loan, or benefit. A statement is made, presented, or submitted to the Corporation when it is received by the Corporation or an agent, fiscal intermediary, or other entity acting for the Corporation. 

§ 2554.5 What is a false claim or statement? 

(a) A claim submitted to the Corporation is a "false" claim if the person 

making the claim, or causing the claim 

to be made, knows or has reason to 

know that the claim: 

(1) Is false, fictitious or fraudulent; 

(2) Includes or is supported by a written statement which asserts or con­ tains a material fact which is false, fictitious, or fraudulent; 

(3) Includes or is supported by a written statement which is false, fictitious or fraudulent because it omits a material fact that the person making the 

statement has a duty to include in the 

statement; or (4) Is for payment for the provision of 

property or services which the person 

has not provided as claimed. 

(b) A statement submitted to the 

Corporation is a false statement if the 

person making the statement, or caus­ ing the statement to be made, knows or has reason to know that the statement: 

(1) Asserts a material fact which is 

false, fictitious, or fraudulent; or (2) Is false, fictitious, or fraudulent 

because it omits a material fact that 

the person making the statement has a duty to include in the statement. In 

addition, the statement must contain or be accompanied by an express cer­ tification or affirmation of the truthfulness and accuracy of the contents of 

the statement. 

§ 2554.6 What does the phrase ''know or have reason to know" mean? 

A person knows or has reason to 

know (that a claim or statement is 

false) if the person: 

45 CFR Ch. XXV (10-1-12 Edition) 

(a) Has actual knowledge that the 

claim or statement is false, fictitious, or fraudulent; or (b) Acts in deliberate ignorance of 

the truth or falsity of the claim or statement; or 

(c) Acts in reckless disregard of the 

truth or falsity of the claim or statement. 

PROCEDURES LEADING TO ISSUANCE OF A 

COMPLAINT 

§2554.7 Who investigates program 

fraud? 

The Inspector General, or his designee, is the investigating official re­ sponsible for investigating allegations 

that a false claim or statement has 

been made. In this regard, the Inspector General has authority under the 

Program Fraud Civil Remedies Act and 

the Inspector General Act of 1978 (5 

U.S.C. App. 3), as amended, to issue administrative subpoenas for the production of records and documents. 

§ 2554.8 What happens if program 

fraud is suspected? 

(a) If the investigating official con­ cludes that an action under this Part is 

warranted, the investigating official 

submits a report containing the findings and conclusions of the investigation to a reviewing official. The re­ viewing official is the General Counsel or his or her designee. If the reviewing 

official determines that the report provides adequate evidence that a person 

submitted a false claim or statement, 

the reviewing official transmits to the 

Attorney General written notice of an intention to refer the matter for adjudication, with a request for approval of 

such referral. This notice will include 

the reviewing official's statements con­ cerning: 

(1) The reasons for the referral; 

(2) The claims or statements upon 

which liability would be based; 

(3) The evidence that supports liability; 

(4) An estimate of the amount of 

money or the value of property, serv­ ices, or other benefits requested or demanded in the false claim or statement; 

(5) Any exculpatory or mitigating 

circumstances that may relate to the 

824 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2554.12 

claims or statements known by the re­ viewing official or the investigating official; and 

(6) A statement that there is a rea­ sonable prospect of collecting an appropriate amount of penalties and assessments. 

(b) If at any time, the Attorney General or his or her designee requests in 

writing that this administrative proc­ ess be stayed, the authority head, as identified in §2554.9 of this Part, must 

stay the process immediately. The au­ thority head may order the process re­ sumed only upon receipt of the written 

authorization of the Attorney General. 

§ 2554.9 Who is the Corporation's au- thority head? 

The Corporation's "authority head" 

is the Chief Executive Officer or his or her designee. For purposes of this Part, 

the Corporation's Chief Financial Offi­ cer is designated to act on behalf of the 

Chief Executive Officer. 

§ 2554.10 When will the Corporation 

issue a complaint? 

The Corporation will issue a com­ plaint: 

(a) If the Attorney General (or designee) approves the referral of the allegations for adjudication; and 

(b) In a case of submission of false 

claims, if the amount of money or the 

value of property or services demanded or requested in a false claim, or a group of related claims submitted at 

the same time, does not exceed $150,000. 

"A group of related claims submitted 

at the same time" includes only those 

claims arising from the same transaction (such as a grant, loan, application, or contract) which are submitted 

together as part of a single request, demand, or submission. 

§ 2554.11 What is contained in a com­ plaint? 

(a) A complaint is a written statement giving notice to the person alleged to be liable under 31 U.S.C. 3802 of 

the specific allegations being referred 

for adjudication and of the person's 

right to request a hearing with respect 

to those allegations. The person alleged to have made false statements or to have submitted false claims to the 

Corporation is referred to as the "defendant." 

(b) The reviewing official may join in a single complaint, false claims or statements that are unrelated, or that were not submitted simultaneously, re­ gardless of the amount of money or the 

value of property or services demanded or requested. 

(c) The complaint will state that the 

Corporation seeks to impose civil penalties, assessments, or both, against 

each defendant and will include: 

(1) The allegations of liability 

against each defendant, including the 

statutory basis for liability, identification of the claims or statements involved, and the reasons liability allegedly arises from such claims or statements; 

(2) The maximum amount of penalties and assessments for which each 

defendant may be held liable; 

(3) A statement that each defendant 

may request a hearing by filing an an­ swer and may be represented by a representative; 

(4) Instructions for filing such an an­ swer; 

(5) A warning that failure to file an answer within 30 days of service of the 

complaint will result in imposition of 

the maximum amount of penalties and 

assessments. 

(d) The reviewing official must serve any complaint on the defendant and, if a hearing is requested by the defendant, provide a copy to the Administrative Law Judge (ALJ) assigned to the case. 

§ 2554.12 How will the complaint be 

served? 

(a) The complaint must be served on individual defendants directly, a partnership through a general partner, and on corporations or on unincorporated 

associations through an executive offi­ cer or a director, except that service 

also may be made on any person au­ thorized by appointment or by law to 

receive process for the defendant. 

(b) The complaint may be served either by: 

(1) Registered or certified mail (return receipt requested) addressed to 

the defendant at his or her residence, 

usual dwelling place, principal office or place of business; or by 

825 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2554.13 

(2) Personal deli very by anyone 18 

years of age or older. 

(c) The date of service is the date of 

personal delivery or, in the case of 

service by registered or certified mail, 

the date of postmark. 

(d) Proof of service- (!) When service is made by registered or certified mail, the return 

postal receipt will serve as proof of 

service. 

(2) When service is made by personal 

delivery, an affidavit of the individual 

serving the complaint, or written ac­ knowledgment of receipt by the defendant or a representative, will serve as proof of service. 

(e) When served with the complaint, 

the defendant also should be served 

with a copy of this Part 2554 and 31 

u.s.c. 3801-3812. 

PROCEDURES FOLLOWING SERVICE OF A 

COMPLAINT 

§ 2554.13 Bow does a defendant re­ spond to the complaint? 

(a) A defendant may file an answer with the reviewing official within 30 

days of service of the complaint. An 

answer will be considered a request for an oral hearing. 

(b) In the answer, a defendant--- (!) Must admit or deny each of the allegations of liability contained in the 

complaint (a failure to deny an allegation is considered an admission); 

(2) Must state any defense on which 

the defendant intends to rely; 

(3) May state any reasons why he or 

she believes the penalties, assessments, or both should be less than the statutory maximum; and 

(4) Must state the name, address, and 

telephone number of the person authorized by the defendant to act as defendant's representative, if any. 

(c) If the defendant is unable to file an answer which meets the requirements set forth in paragraph (b) of this 

section, the defendant may file with 

the reviewing official a general answer denying liability, requesting a hearing, 

and requesting an extension of time in 

which to file a complete answer. A general answer must be filed within 30 

days of service of the complaint. 

(d) If the defendant initially files a general answer requesting an extension 

of time, the reviewing official must 

45 CFR Ch. XXV (10-1-12 Edition) 

promptly file with the ALJ the complaint, the general answer, and the request for an extension of time. 

(e) For good cause shown, the ALJ 

may grant the defendant up to 30 additional days within which to file an answer meeting the requirements of paragraph (b) of this section. Such answer 

must be filed with the ALJ and a copy 

must be served on the reviewing official. 

§ 2554.14 What happens if a defendant 

fails to file an answer? 

(a) If a defendant does not file any 

answer within 30 days after service of 

the complaint, the reviewing official 

will refer the complaint to the ALJ. 

(b) Once the complaint is referred, 

the ALJ will promptly serve on the defendant a notice that an initial decision will be issued. 

(c) The ALJ will assume the facts alleged in the complaint to be true and, 

if such facts establish liability under 

the statute, the ALJ will issue an initial decision imposing the maximum 

amount of penalties and assessments 

allowed under the statute. 

(d) Except as otherwise provided in 

this section, when a defendant fails to 

file a timely answer, the defendant 

waives any right to further review of 

the penalties and assessments imposed 

in the initial decision. 

(e) The initial decision becomes final 

30 days after it is issued. 

(f) If, at any time before an initial 

decision becomes final, a defendant 

files a motion with the ALJ asking 

that the case be reopened and describing the extraordinary circumstances 

that prevented the defendant from filing an answer, the initial decision will 

be stayed until the ALJ makes a decision on the motion. The reviewing official may respond to the motion. 

(g) If, in his motion to reopen, a defendant demonstrates extraordinary 

circumstances excusing his failure to 

file a timely answer, the ALJ will 

withdraw the initial decision, and 

grant the defendant an opportunity to 

answer the complaint. 

(h) A decision by the ALJ to deny a 

defendant's motion to reopen a case is 

not subject to review or reconsideration. 

826 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2554.18 

(i) The defendant may appeal to the 

authority head the decision denying a motion to reopen by filing a notice of 

appeal with the authority head within 

15 days after the ALJ denies the mo­ tion. The timely filing of a notice of 

appeal shall stay the initial decision 

until the authority head decides the 

issue. 

(j) If the defendant files a timely no­ tice of appeal with the authority head, 

the ALJ shall forward the record of the 

proceeding to the authority head. 

(k) The authority head shall decide 

expeditiously whether extraordinary 

circumstances excuse the defendant's 

failure to file a timely answer based 

solely on the record before the ALJ. 

(1) If the authority head decides that 

extraordinary circumstances excused 

the defendant's failure to file a timely 

answer, the authority head shall re­ mand the case to the ALJ with instructions to grant the defendant an opportunity to answer. (m) If the authority head decides 

that the defendant's failure to file a timely answer is not excused, the au­ thority head shall reinstate the initial 

decision of the ALJ, which shall be­ come final and binding upon the parties 30 days after the authority head 

issues such decision. 

§ 2554.15 What happens once an an­ swer is filed? 

(a) When the reviewing official re­ ceives an answer, he must file concur­ rently, the complaint and the answer with the ALJ, along with a designation 

of a Corporation representative. 

(b) When the ALJ receives the com­ plaint and the answer, the ALJ will 

promptly serve a notice of oral hearing 

upon the defendant and the representative for the Corporation, in the same manner as the complaint, service of 

which is described in §2554.12. The no­ tice of oral hearing must be served 

within six years of the date on which 

the claim or statement is made. 

(c) The notice must include: 

(1) The tentative time, place and na­ ture of the hearing; 

(2) The legal authority and jurisdiction under which the hearing is to be 

held; 

(3) The matters of fact and law to be 

asserted; 

(4) A description of the procedures for 

the conduct of the hearing; 

(5) The name, address, and telephone 

number of the defendant's representative and the representative for the Corporation; and 

(6) Such other matters as the ALJ 

deems appropriate. 

(d) The six-year statute of limitation 

may be extended by agreement of the 

parties. 

HEARING PROVISIONS 

§ 2554.16 What kind of hearing is con­ templated? 

The hearing is a formal proceeding 

conducted by the ALJ during which a 

defendant will have the opportunity to 

cross-examine witnesses, present testimony, and dispute liability. 

§ 2554.17 At the hearing, what rights 

do the parties have? 

(a) The parties to the hearing shall 

be the defendant and the Corporation. 

Pursuant to 31 U.S.C. 3730(c)(5), a private plaintiff in an action under the 

False Claims Act may participate in 

the hearing to the extent authorized by 

the provisions of that Act. 

(b) Each party has the right to: 

(1) Be represented by a representative; 

(2) Request a pre-hearing conference 

and participate in any conference held 

by the ALJ; 

(3) Conduct discovery; 

(4) Agree to stipulations of fact or 

law which will be made a part of the 

record; 

(5) Present evidence relevant to the 

issues at the hearing; 

(6) Present and cross-examine witnesses; 

(7) Present arguments at the hearing 

as permitted by the ALJ; and 

(8) Submit written briefs and proposed findings of fact and conclusions 

of law after the hearing, as permitted 

by the ALJ. 

§ 2554.18 What is the role of the ALJ? 

An ALJ retained by the Corporation 

serves as the presiding officer at all 

hearings. 

827 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2554.19 

(a) The ALJ shall conduct a fair and 

impartial hearing, avoid delay, maintain order, and assure that a record of 

the proceeding is made. 

(b) The ALJ has the authority to--­

(1) Set and change the date, time, 

and place of the hearing upon reason­ able notice to the parties; 

(2) Continue or recess the hearing in 

whole or in part for a reasonable period 

of time; 

(3) Hold conferences to identify or 

simplify the issues, or to consider 

other matters that may aid in the ex­ peditious disposition of the proceeding; 

(4) Administer oaths and affirmations; 

(5) Issue subpoenas requiring the attendance of witnesses and the production of documents at depositions or at 

hearings; 

(6) Rule on motions and other procedural matters; 

(7) Regulate the scope and timing of 

discovery; 

(8) Regulate the course of the hearing 

and the conduct of representatives and 

parties; 

(9) Examine witnesses; 

(10) Receive, rule on, exclude, or 

limit evidence; 

(11) Upon motion of a party, take official notice of facts; 

(12) Upon motion of a party, decide 

cases, in whole or in part, by summary 

judgment where there is no disputed 

issue of material fact; 

(13) Conduct any conference, argument, or hearing on motions in person or by telephone; and 

(14) Exercise such other authority as is necessary to carry out the responsibilities of the ALJ under this part. 

(c) The ALJ does not have the authority to find Federal statutes or regulations invalid. 

§ 2554.19 Can the reviewing official or ALI be disqualified? 

(a) A reviewing official or an ALJ 

may disqualify himself or herself at 

any time. 

(b) Upon motion of any party, the reviewing official or ALJ may be disqualified as follows: 

(1) The motion must be supported by an affidavit containing specific facts 

establishing that personal bias or other reason for disqualification exists, in45 CFR Ch. XXV (10-1-12 Edition) 

cl uding the time and circumstances of 

the discovery of such facts; 

(2) The motion must be filed promptly after discovery of the grounds for 

disqualification, or the objection will 

be deemed waived; and 

(3) The party, or representative of 

record, must certify in writing that the 

motion is made in good faith. 

(c) Once a motion has been filed to 

disqualify the reviewing official, the 

ALJ will halt the proceedings until resolving the matter of disqualification. 

If the ALJ determines that the reviewing official is disqualified, the ALJ will 

dismiss the complaint without prejudice. If the ALJ disqualifies himself or herself, the case will be promptly reassigned to another ALJ. 

§ 2554.20 How are issues brought to 

the attention of the ALI? 

(a) All applications to the ALJ for an order or ruling shall be by motion. Motions shall state the relief sought, the 

authority relied upon, and the facts alleged, and shall be filed with the ALJ 

and served on all other parties. 

(b) Except for motions made during a 

prehearing conference or at the hearing, all motions shall be in writing. 

The ALJ may require that oral mo­ tions be reduced to writing. 

(c) Within 15 days after a written motion is served, or such other time as may be fixed by the ALJ, any party 

may file a response to such motion. 

(d) The ALJ may not grant a written 

motion before the time for filing responses thereto has expired, except 

upon consent of the parties or following a hearing on the motion, but 

may overrule or deny such motion 

without awaiting a response. 

(e) The ALJ shall make a reasonable 

effort to dispose of all outstanding mo­ tions prior to the beginning of the 

hearing. 

§ 2554.21 How are papers served? 

(a) Form. (1) Documents filed with the 

ALJ shall include an original and two 

copies. 

(2) Every pleading and paper filed in 

the proceeding shall contain a caption 

setting forth the title of the action, the case number assigned by the ALJ, and 

a designation of the paper (e.g., motion 

to quash subpoena). 

828 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2554.24 

(3) Every pleading and paper shall be 

signed by, and shall contain the address and telephone number of the 

party or the person on whose behalf the 

paper was filed, or his or her representative. 

(4) Papers are considered filed when 

they are mailed. Date of mailing may 

be established by a certificate from the 

party or its representative or by proof 

that the document was sent by cer­ tified or registered mail. 

(b) Service. A party filing a document 

with the ALJ shall at the time of filing, serve a copy of such document on every other party. Service upon any 

party of any document other than 

those required to be served as prescribed in § 2554.12 shall be made by delivering a copy or by placing a copy of 

the document in the United States 

mail, postage prepaid and addressed, to 

the party's last known address. When a party is represented by a representative, service shall be made upon such 

representative in lieu of the actual 

party. 

(c) Proof of service. A certificate of 

the individual serving the document by 

personal delivery or by mail, setting 

forth the manner of service, shall be 

proof of service. 

§ 2554.22 How is time computed? 

(a) In computing any period of time 

under this part or in an order issued 

thereunder, the time begins with the 

day following the act, event, or default, 

and includes the last day of the period, 

unless it is a Saturday, Sunday, or legal holiday observed by the Federal 

government, in which event it includes 

the next business day. 

(b) When the period of time allowed 

is less than seven days, intermediate 

Saturdays, Sundays, and legal holidays 

observed by the Federal government 

shall be excluded from the computation. 

(c) Where a document has been served or issued by placing it in the mail, an additional five days will be added to 

the time permitted for any response. 

§ 2554.23 What happens during a prehearing conference? 

(a) The ALJ may schedule prehearing 

conferences as appropriate. 

(b) Upon the motion of any party, the 

ALJ shall schedule at least one prehearing conference at a reasonable 

time in advance of the hearing. 

(c) The ALJ may use prehearing con­ ferences to discuss the following: 

(1) Simplification of the issues; 

(2) The necessity or desirability of 

amendments to the pleadings, including the need for a more definite statement; 

(3) Stipulations and admissions of 

fact or as to the contents and authenticity of documents; 

(4) Whether the parties can agree to 

submission of the case on a stipulated 

record; 

(5) Whether a party chooses to waive 

appearances at an oral hearing and to 

submit only documentary evidence 

(subject to the objection of other parties) and written argument; 

(6) Limitation of the number of witnesses; 

(7) Scheduling dates for the exchange 

of witness lists and of proposed exhibits; 

(8) Discovery; 

(9) The time and place for the hearing; and 

(10) Such other matters as may tend 

to expedite the fair and just disposition 

of the proceedings. 

(d) The ALJ may issue an order con­ taining all matters agreed upon by the 

parties or ordered by the ALJ at a prehearing conference. 

§ 2554.24 What rights are there to re­ view documents? 

(a) Upon written request to the re­ viewing official, the defendant may re­ view any relevant and material documents, transcripts, records, and other 

materials that relate to the allegations 

set out in the complaint and upon 

which the findings and conclusions of 

the investigating official under §2554.8 are based, unless such documents are subject to a privilege under Federal 

law. Upon payment of fees for duplication, the defendant may obtain copies 

of such documents. 

(b) Upon written request to the re­ viewing official, the defendant also 

may obtain a copy of all exculpatory 

information in the possession of the re­ viewing official or investigating official relating to the allegations in the 

829 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2554.25 

complaint, even if it is contained in a document that would otherwise be 

privileged. If the document would otherwise be privileged, only that portion 

containing exculpatory information 

must be disclosed. 

(c) The notice sent to the Attorney 

General from the reviewing official as described in § 2554.8 is not discoverable 

under any circumstances. 

(d) The defendant may file a motion 

to compel disclosure of the documents 

subject to the provisions of this sec­ tion. Such a motion may only be filed 

with the ALJ following the filing of an answer pursuant to § 2554.13. 

§ 2554.25 What type of discovery is au­ thorized and how is it conducted? 

(a) The following types of discovery are authorized: 

(1) Requests for production of documents for inspection and copying; 

(2) Requests for admissions of the au­ thenticity of any relevant document or of the truth of any relevant fact; 

(3) Written interrogatories; and 

(4) Depositions. 

(b) For the purpose of this section 

and §§ 2554.27 and 2554.28, the term 

"documents" includes information, 

documents, reports, answers, records, 

accounts, papers, and other data and 

documentary evidence. Nothing con­ tained herein shall be interpreted to re­ quire the creation of a document. 

(c) Unless mutually agreed to by the 

parties, discovery is available only as ordered by the ALJ. The ALJ shall regulate the timing of discovery. 

(d) Motions for discovery. (1) A party 

seeking discovery may file a motion 

with the ALJ. Such a motion shall be 

accompanied by a copy of the requested 

discovery, or in the case of depositions, a summary of the scope of the proposed 

deposition. 

(2) Within ten days of service, a party 

may file an opposition to the motion 

and/or a motion for protective order as provided in § 2554.30. 

(3) The ALJ may grant a motion for 

discovery only if he or she finds that 

the discovery sought- (i) Is necessary for the expeditious, 

fair, and reasonable consideration of 

the issues; 

(ii) Is not unduly costly or burdensome; 

45 CFR Ch. XXV (10-1-12 Edition) 

(iii) Will not unduly delay the proceeding; and 

(iv) Does not seek privileged information. 

(4) The burden of showing that discovery should be allowed is on the 

party seeking discovery. 

(5) The ALJ may grant discovery subject to a protective order under 

§2554.30. 

(e) Depositions. (1) If a motion for deposition is granted, the ALJ shall issue a subpoena for the deponent, which 

may require the deponent to produce 

documents. The subpoena shall specify 

the time and place at which the deposition will be held. 

(2) The party seeking to depose shall serve the subpoena in the manner prescribed in § 2554.12. 

(3) The deponent may file with the 

ALJ a motion to quash the subpoena or a motion for a protective order within 

ten days of service. 

(4) The party seeking to depose shall 

provide for the taking of a verbatim 

transcript of the deposition, which it 

shall make available to all other parties for inspection and copying. 

(f) Each party shall bear its own costs of discovery. 

§ 2554.26 Are there limits on disclosure 

of documents or discovery? 

(a) Upon written request to the re­ viewing official, the defendant may re­ view all non-privileged, relevant and 

material documents, records and other 

material related to the allegations con­ tained in the complaint. After paying 

the Corporation a reasonable fee for 

duplication, the defendant may obtain a copy of the records described. 

(b) Upon written request to the re­ viewing official, the defendant may obtain a copy of all exculpatory information in the possession of the reviewing 

official or investigating official relating to the allegations in the complaint. 

If the document would otherwise be 

privileged, only the portion of the document containing exculpatory information must be disclosed. As used in 

this section, the term "information" 

does not include legal materials such as statutes or case law obtained 

through legal research. 

(c) The notice sent to the Attorney 

General from the reviewing official is 

830 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2554.30 

not discoverable under any circumstances. 

(d) Other discovery is available only as ordered by the ALJ and includes 

only those methods of discovery allowed by § 2554.25. 

§ 2554.27 Are witness lists exchanged 

before the hearing? 

(a) At least 15 days before the hearing or at such other time as ordered by 

the ALJ, the parties must exchange 

witness lists and copies of proposed 

hearing exhibits, including copies of 

any written statements or transcripts 

of deposition testimony that the party 

intends to offer in lieu of live testimony. 

(b) If a party objects, the ALJ will 

not admit into evidence the testimony 

of any witness whose name does not appear on the witness list or any exhibit 

not provided to an opposing party un­ less the ALJ finds good cause for the 

omission or concludes that there is no prejudice to the objecting party. 

(c) Unless a party objects within the 

time set by the ALJ, documents ex­ changed in accordance with this sec­ tion are deemed to be authentic for the 

purpose of admissibility at the hearing. 

§ 2554.28 Can witnesses be subpoe- naed? 

(a) A party wishing to procure the 

appearance and testimony of any individual at the hearing may request that 

the ALJ issue a subpoena. 

(b) A subpoena requiring the attend­ ance and testimony of an individual 

may also require the individual to 

produce documents at the hearing. 

(c) A party seeking a subpoena shall 

file a written request therefore not less 

than 15 days before the date fixed for 

the hearing unless otherwise allowed 

by the ALJ for good cause shown. Such 

request shall specify any documents to 

be produced and shall designate the 

witnesses and describe the address and 

location thereof with sufficient particularity to permit such witnesses to 

be found. 

(d) The subpoena shall specify the 

time and place at which the witness is 

to appear and any documents the wit­ ness is to produce. 

(e) The party seeking the subpoena 

shall serve it in the manner prescribed 

in § 2554.12. A subpoena on a party or upon an individual under the control of a party may be served by first class 

mail. 

(f) A party or the individual to whom 

the subpoena is directed may file with 

the ALJ a motion to quash the subpoena within ten days after service or on or before the time specified in the 

subpoena for compliance if it is less 

than ten days a~er service. 

§ 2554.29 Who pays the costs for a subpoena? 

The party requesting a subpoena 

shall pay the cost of the fees and mileage of any witness subpoenaed in the 

amounts that would be payable to a witness in a proceeding in United 

States District Court. A check for wit­ ness fees and mileage shall accompany 

the subpoena when served, except that 

when a subpoena is issued on behalf of 

the authority, a check for witness fees 

and mileage need not accompany the 

subpoena. 

§ 2554.30 Are protective orders available? 

(a) A party or a prospective witness or deponent may file a motion for a protective order with respect to discovery sought by an opposing party or with respect to the hearing, seeking to 

limit the availability or disclosure of 

evidence. 

(b) In issuing a protective order, the 

ALJ may make any order which justice 

requires to protect a party or person 

from annoyance, embarrassment, oppression, or undue burden or expense, 

including one or more of the following: 

(1) That the discovery not be had; 

(2) That the discovery may be had 

only on specified terms and conditions, 

including a designation of the time or place; 

(3) That the discovery may be had 

only through a method of discovery 

other than that requested; 

(4) That certain matters not be inquired into, or that the scope of discovery be limited to certain matters; 

(5) That discovery be conducted with no one present except persons designated by the ALJ; 

(6) That the contents of discovery or evidence be sealed; 

831 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2554.31 

(7) That a deposition after being 

sealed be opened only by order of the 

ALJ; 

(8) That a trade secret or other con­ fidential research, development, com­ mercial information, or facts pertaining to any criminal investigation, 

proceeding, or other administrative investigation not be disclosed or be disclosed only in a designated way; or 

(9) That the parties simultaneously 

file specified documents or information 

enclosed in sealed envelopes to be 

opened as directed by the ALJ. 

§ 2554.31 Where is the hearing held? 

The ALJ will hold the hearing in any 

judicial district of the United States: 

(a) In which the defendant resides or transacts business; or 

(b) In which the claim or statement on which liability is based was made, 

presented or submitted to the Corporation; or 

(c) As agreed upon by the defendant 

and the ALJ. 

§2554.32 How will the hearing be con­ ducted and who has the burden of 

proof? 

(a) The ALJ conducts a hearing in 

order to determine whether a defendant is liable for a civil penalty, assess­ ment, or both and, if so, the appropriate amount of the civil penalty and/ or assessment. The hearing will be re­ corded and transcribed, and the transcript of testimony, exhibits admitted 

at the hearing, and all papers and re­ quests filed in the proceeding con­ stitute the record for a decision by the 

ALJ. 

(b) The Corporation must prove a defendant's liability and any aggravating 

factors by a preponderance of the evidence. 

(c) A defendant must prove any affirmative defenses and any mitigating 

factors by a preponderance of the evidence. 

(d) The hearing will be open to the 

public unless otherwise ordered by the 

ALJ for good cause shown. 

§ 2554.33 How is evidence presented at 

the hearing? 

(a) The ALJ shall determine the admissibility of evidence. 

45 CFR Ch. XXV (10-1-12 Edition) 

(b) Except as provided in this part, 

the ALJ shall not be bound by the Federal Rules of Evidence. However, the 

ALJ may apply the Federal Rules of 

Evidence where appropriate, e.g., to ex­ clude unreliable evidence. 

(c) The ALJ shall exclude irrelevant 

and immaterial evidence. 

(d) Although relevant, evidence may 

be excluded if its probative value is 

substantially outweighed by the danger 

of unfair prejudice, confusion of the 

issues, or by considerations of undue 

delay or needless presentation of cumu­ lative evidence. 

(e) Although relevant, evidence may 

be excluded if it is privileged under 

Federal law. 

(f) Evidence concerning offers of com­ promise or settlement shall be inadmissible to the extent provided in Rule 

408 of the Federal Rules of Evidence. 

(g) The ALJ shall permit the parties 

to introduce rebuttal witnesses and 

evidence. 

§ 2554.34 How is witness testimony 

presented? 

(a) Except as provided in paragraph 

(b) of this section, testimony at the 

hearing shall be given orally by wit­ nesses under oath or affirmation. 

(b) At the discretion of the ALJ, testimony may be admitted in the form of a written statement or deposition. Any 

such written statement must be provided to all other parties along with 

the last known address of such witness, 

in a manner which allows sufficient 

time for other parties to subpoena such 

witness for cross-examination at the 

hearing. Prior written statements of 

witnesses proposed to testify at the 

hearing and deposition transcripts 

shall be exchanged as provided in 

§ 2554.27(a). 

(c) The ALJ shall exercise reasonable 

control over the mode and order of interrogating witnesses and presenting 

evidence so as to: 

(1) Make the interrogation and presentation effective for the ascertainment of the truth; 

(2) A void needless consumption of 

time; and 

(3) Protect witnesses from harassment or undue embarrassment. 

(d) The ALJ shall permit the parties 

to conduct such cross-examination as 

832 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2554.37 

may be required for a full and true disclosure of the facts. 

(e) At the discretion of the ALJ, a witness may be cross-examined on matters relevant to the proceeding without 

regard to the scope of his or her direct 

examination. To the extent permitted 

by the ALJ, cross-examination on matters outside the scope of direct exam­ ination shall be conducted in the man­ ner of direct examination and may proceed by leading questions only if the 

witness is a hostile witness, an adverse 

party, or a witness identified with an adverse party. 

(f) Upon motion of any party, the 

ALJ shall order witnesses excluded so that they cannot hear the testimony of 

other witnesses. This rule does not au­ thorize exclusion of-

(1) A party who is an individual; 

(2) In the case of a party that is not an individual, an officer or employee of 

the party appearing for the entity pro se or designated by the party's representative; or 

(3) An individual whose presence is 

shown by a party to be essential to the 

presentation of its case, including an individual employed by the Government engaged in assisting the representative for the Government. 

§ 2554.35 Will the hearing proceedings 

be recorded? 

The hearing will be recorded and 

transcribed. Transcripts may be obtained following the hearing from the 

ALJ at a cost not to exceed the actual 

cost of duplication. The transcript of 

testimony, exhibits and other evidence 

admitted at the hearing, and all papers 

and requests filed in the proceeding 

constitute the record for the decision 

by the ALJ and the authority head. 

The record may be inspected and copied (upon payment of a reasonable fee) 

by anyone, unless otherwise ordered by 

the ALJ pursuant to § 2554.30. 

§ 2554.36 Can a party informally dis­ cuss the case with the ALJ? 

No. Such discussions are forbidden as "ex parte communications" with the 

ALJ. No party or person (except em­ ployees of the ALJ's office) shall com­ municate in any way with the ALJ on any matter at issue in a case, unless on 

notice and opportunity for all parties 

to participate. 

This does not prohibit a person or 

party from inquiring about the status 

of a case or asking routine questions 

concerning administrative functions or 

procedures. 

§ 2554.37 Are there sanctions for misconduct? 

(a) The ALJ may sanction a person, 

including any party or representative 

for-

(1) Failing to comply with an order, 

rule, or procedure governing the proceeding; 

(2) Failing to prosecute or defend an 

action; or 

(3) Engaging in other misconduct 

that interferes with the speedy, orderly, or fair conduct of the hearing. 

(b) Any such sanction, including but 

not limited to those listed in paragraphs (c), (d), and (e) of this section, 

shall reasonably relate to the severity 

and nature of the failure or misconduct. 

( c) When a party fails to comply with 

an order, including an order for taking 

a deposition, the production of evidence within the party's control, or a 

request for admission, the ALJ may-

(1) Draw an inference in favor of the 

requesting party with regard to the information sought; 

(2) In the case of requests for admission, deem each matter of which an admission is requested to be admitted; 

(3) Prohibit the party failing to comply with such order from introducing 

evidence concerning, or otherwise relying upon testimony relating to the information sought; and 

(4) Strike any part of the pleadings 

or other submissions of the party failing to comply with such request. 

(d) If a party fails to prosecute or defend an action under this part commenced by service of a notice of hearing, the ALJ may dismiss the action or 

may issue an initial decision imposing 

penalties and assessments. 

(e) The ALJ may refuse to consider 

any motion, request, response, brief or 

other document which is not filed in a timely fashion. 

833 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2554.38 

§ 2554.38 Are post-hearing briefs re­ quired? 

The ALJ may require the parties to 

file post-hearing briefs. In any event, 

any party may file a post-hearing brief. 

The ALJ shall fix the time for filing 

such briefs, not to exceed 60 days from 

the date the parties receive the transcript of the hearing or, if applicable, 

the stipulated record. Such briefs may 

be accompanied by proposed findings of 

fact and conclusions of law. The ALJ 

may permit the parties to file reply 

briefs. 

DECISIONS AND APPEALS 

§ 2554.39 How is the case decided? 

(a) The ALJ will issue an initial decision based only on the record. It will 

contain findings of fact, conclusions of 

law, and the amount of any penalties 

and assessments imposed. 

(b) The ALJ will serve the initial decision on all parties within 90 days 

after close of the hearing or expiration 

of any allowed time for submission of 

post-hearing briefs. If the ALJ fails to 

meet this deadline, he or she shall 

promptly notify the parties of the rea­ son for the delay and set a new deadline. 

(c) The findings of fact must include a finding on each of the following 

issues: 

(1) Whether any one or more of the 

claims or statements identified in the 

complaint violate this part; and 

(2) If the defendant is liable for penal ties or assessments, the appropriate 

amount of any such penalties or assess­ ments, considering any mitigating or aggravating factors. 

(d) The initial decision will include a description of the right of a defendant 

found liable for a civil penalty or as­ sessment to file a motion for reconsideration with the ALJ or a notice of appeal with the authority head. 

§ 2554.40 How are penalty and assess­ ment amounts determined? 

(a) In determining an appropriate 

amount of civil penalties and assess­ ments, the ALJ and the authority 

head, upon appeal, should evaluate any 

circumstances that mitigate or aggravate the violation and should articulate in their opinions the reasons that 

45 CFR Ch. XXV (10-1-12 Edition) 

support the penalties and assessments 

they impose. Because of the intangible 

costs of fraud, the expense of investigating such conduct, and the need to 

deter others who might be similarly 

tempted, ordinarily double damages 

and a significant civil penalty should 

be imposed. 

(b) Although not exhaustive, the following factors are among those that 

may influence that ALJ and the au­ thority head in determining the 

amount of penalties and assessments to 

impose with respect to the misconduct 

(i.e., the false, fictitious, or fraudulent 

claims or statements) charged in the 

complaint: 

(1) The number of false, fictitious, or fraudulent claims or statements; 

(2) The time period over which such 

claims or statements were made; 

(3) The degree of the defendant's culpability with respect to the misconduct; 

(4) The amount of money or the value 

of the property, services, or benefit 

falsely claimed; 

(5) The value of the Government's ac­ tual loss as a result of the misconduct, 

including foreseeable consequential 

damages and the costs of investigation; 

(6) The relationship of the amount 

imposed as civil penalties to the 

amount of the Government's loss; 

(7) The potential or actual impact of 

the misconduct upon national defense, 

public health or safety, or public con­ fidence in the management of Government programs and operations, including particularly the impact on the intended beneficiaries of such programs; 

(8) Whether the defendant has en­ gaged in a pattern of the same or similar misconduct; 

(9) Whether the defendant attempted 

to conceal the misconduct; 

(10) The degree to which the defendant has involved others in the misconduct or in concealing it; 

(11) Where the misconduct of employ­ ees or agents is imputed to the defendant, the extent to which the defendant's practices fostered or attempted 

to preclude such misconduct; 

(12) Whether the defendant cooperated in or obstructed an investigation 

of the misconduct; 

834 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2554.43 

(13) Whether the defendant assisted 

in identifying and prosecuting other 

wrongdoers; 

(14) The complexity of the program 

or transaction, and the degree of the 

defendant's sophistication with respect 

to it, including the extent of the defendant's prior participation in the 

program or in similar transactions; 

(15) Whether the defendant has been 

found, in any criminal, civil, or administrative proceeding to have engaged in 

similar misconduct or to have dealt 

dishonestly with the Government of 

the United States or of a State, directly or indirectly; and 

(16) The need to deter the defendant 

and others from engaging in the same 

or similar misconduct. 

(c) Nothing in this section shall be 

construed to limit the ALJ or the au­ thority head from considering any 

other factors that in any given case may mitigate or aggravate the offense 

for which penalties and assessments are imposed. 

§ 2554.41 Can a party request reconsideration of the initial decision? 

(a) Any party may file a motion for 

reconsideration of the initial decision 

with the ALJ within 20 days of receipt 

of the initial decision. If the initial decision was served by mail, there is a rebuttable presumption that the initial 

decision was received by the party 5 

days from the date of mailing. 

(b) A motion for reconsideration 

must be accompanied by a supporting 

brief and must describe specifically 

each allegedly erroneous decision. 

(c) Any response to a motion for reconsideration will only be allowed if it 

is requested by the ALJ. 

(d) The ALJ will dispose of a motion 

for reconsideration by denying it or by 

issuing a revised initial decision. 

(e) If the ALJ issues a revised initial 

decision upon motion of a party, that 

party may not file another motion for 

reconsideration. 

§ 2554.42 When does the initial decision of the ALJ become final? 

(a) The initial decision of the ALJ becomes the final decision of the Corporation, and shall be binding on all 

parties 30 days after it is issued, unless 

any party timely files a motion for reconsideration or any defendant adjudged to have submitted a false claim 

or statement timely appeals to the 

Corporation's authority head, as set 

forth in § 2554.43. 

(b) If the ALJ disposes of a motion 

for reconsideration by denying it or by 

issuing a revised initial decision, the 

ALJ's order on the motion for reconsideration becomes the final decision of 

the Corporation 30 days after the order 

is issued, unless a defendant adjudged 

to have submitted a false claim or 

statement timely appeals to the authority head, within 30 days of the 

ALJ's order, as set forth in §2554.43. 

§ 2554.43 What are the procedures for 

appealing the ALJ decision? 

(a) Any defendant who submits a 

timely answer and is found liable for a 

civil penalty or assessment in an initial decision may appeal the decision. 

(b) The defendant may file a notice of 

appeal with the authority head within 

30 days following issuance of the initial 

decision, serving a copy of the notice of 

appeal on all parties and the ALJ. The 

authority head may extend this deadline for up to an additional 30 days if 

an extension request is filed within the 

initial 30-day period and shows good 

cause. 

(c) The defendant's appeal will not be 

considered until all timely motions for 

reconsideration have been resolved. 

(d) If a timely motion for reconsideration is denied, a notice of appeal may 

be filed within 30 days following such 

denial or issuance of a revised initial 

decision, whichever applies. 

(e) A notice of appeal must be supported by a written brief specifying 

why the initial decision should be reversed or modified. 

(f) The Corporation's representative 

may file a brief in opposition to the notice of appeal within 30 days of receiving the defendant's notice of appeal 

and supporting brief. 

(g) If a defendant timely files a notice of appeal, and the time for filing 

motions for reconsideration has expired, the ALJ will forward the record 

of the proceeding to the authority 

head. 

835 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2554.44 

§ 2554.44 What happens if an initial decision is appealed? 

(a) An initial decision is stayed automatically pending disposition of a mo­ tion for reconsideration or of an appeal 

to the authority head. 

(b) No administrative stay is available following a final decision of the 

authority head. 

§ 2554.45 Are there any limitations on the right to appeal to the authority 

head? 

(a) A defendant has no right to appear personally, or through a representative, before the authority head. 

(b) There is no right to appeal any interlocutory ruling. 

(c) The authority head will not con­ sider any objection or evidence that was not raised before the ALJ unless 

the defendant demonstrates that the 

failure to object was caused by extraordinary circumstances. If the appealing 

defendant demonstrates to the satisfaction of the authority head that ex­ traordinary circumstances prevented 

the presentation of evidence at the 

hearing, and that the additional evidence is material, the authority head 

may remand the matter to the ALJ for 

consideration of the additional evidence. 

§ 2554.46 How does the authority head 

dispose of an appeal? 

(a) The authority head may affirm, 

reduce, reverse, compromise, remand, or settle any penalty or assessment imposed by the ALJ in the initial decision or reconsideration decision. 

(b) The authority head will promptly serve each party to the appeal and the 

ALJ with a copy of his or her decision. 

This decision must contain a statement describing the right of any person, against whom a penalty or assess­ ment has been made, to seek judicial 

review. 

§2554.47 What judicial review is available? 

31 U.S.C. 3805 authorizes judicial re­ view by the appropriate United States 

District Court of any final Corporation 

decision imposing penalties or assess­ ments, and specifies the procedures for 

such review. To obtain judicial review, a defendant must file a petition with 

45 CFR Ch. XXV (10-1-12 Edition) 

the appropriate court in a timely man­ ner. 

§ 2554.48 Can the administrative com­ plaint be settled voluntarily? 

(a) Parties may make offers of com­ promise or settlement at any time. 

Any compromise or settlement must be 

in writing. 

(b) The reviewing official has the ex­ clusive authority to compromise or settle the case from the date on which 

the reviewing official is permitted to 

issue a complaint until the ALJ issues an initial decision. 

(c) The authority head has exclusive 

authority to compromise or settle the case from the date of the ALJ's initial 

decision until initiation of any judicial 

review or any action to collect the penal ties and assessments. 

(d) The Attorney General has exclusive authority to compromise or settle 

the case while any judicial review or any action to recover penalties and as­ sessments is pending. 

(e) The investigating official may 

recommend settlement terms to the re­ viewing official, the authority head, or the Attorney General, as appropriate. 

The reviewing official may recommend 

settlement terms to the authority head or the Attorney General, as appropriate. 

§ 2554.49 How are civil penalties and 

assessments collected? 

Section 3806 and 3808(b) of title 31, 

United States Code, authorize actions 

for collection of civil penalties and as­ sessments imposed under this Part and 

specify the procedures for such actions. 

§ 2554.50 What happens to collections? 

All amounts collected pursuant to 

this part shall be deposited as miscella­ neous receipts in the Treasury of the 

United States, except as provided in 31 

u.s.c. 3806(g). 

§ 2554.51 What if the investigation indicates criminal misconduct? 

(a) Any investigating official may: 

(1) Refer allegations of criminal misconduct directly to the Department of 

Justice for prosecution or for suit 

under the False Claims Act or other 

civil proceeding; 

836 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service Pt. 2555 

(2) Defer or postpone a report or re­ ferral to the reviewing official to avoid 

interference with a criminal investigation or prosecution; or (3) Issue subpoenas under other statutory authority. 

(b) Nothing in this part limits the re­ quirement that the Corporation em­ ployees report suspected violations of 

criminal law to the Corporation's Office of Inspector General or to the Attorney General. 

§ 2554.52 How does the Corporation 

protect the rights of defendants? 

These procedures separate the functions of the investigating official, re­ viewing official, and the ALJ, each of 

whom report to a separate organizational authority in accordance with 31 

U.S.C. 3801. Except for purposes of settlement, or as a witness or a representative in public proceedings, no investigating official, reviewing official, or Corporation employee or agent who 

helps investigate, prepare, or present a case may (in such case, or a factually 

related case) participate in the initial 

decision or the review of the initial decision by the authority head. This separation of functions and organization 

is designed to assure the independence 

and impartiality of each government 

official during every stage of the proceeding. The representative for the 

Corporation may be employed in the 

offices of either the investigating official or the reviewing official. 

PART 2555-NONDISCRIMINATION 

ON THE BASIS OF SEX IN EDUCATION PROGRAMS OR ACTIVITIES RECEIVING FEDERAL FINANCIAL ASSISTANCE 

Subpart A-Introduction 

Sec. 

2555.100 Purpose and effective date. 

2555.105 Definitions. 

2555.110 Remedial and affirmative action 

and self-evaluation. 

2555.115 Assurance required. 

2555.120 Transfers of property. 

2555.125 Effect of other requirements. 

2555.130 Effect of employment opportunities. 

2555.135 Designation of responsible employee and adoption of grievance procedures. 

2555.140 Dissemination of policy. 

Subpart B--Coverage 

2555.200 Application. 

2555.205 Educational institutions and other 

entities controlled by religious organizations. 

2555.210 Military and merchant marine educational institutions. 

2555.215 Membership practices of certain organizations. 

2555.220 Admission. 

2555.225 Educational institutions eligible to 

submit transition plans. 

2555.230 Transition plans. 

2555.235 Statutory amendments. 

Subpart C-Discrimination on the Basis of 

Sex in Admission and Recruitment Prohibited 

2555.300 Admission. 

2555.305 Preference in admission. 

2555.310 Recruitment. 

Subpart D-Discrimination on the Basis of 

Sex in Education Programs or Activities 

Prohibited 

2555.400 Education programs or activities. 

2555.405 Housing. 

2555.410 Comparable facilities. 

2555.415 Access to course offerings. 

2555.420 Access to schools operated by 

LEAs. 

2555.425 Counseling and use of appraisal and 

counseling materials. 

2555.430 Financial assistance. 

2555.435 Employment assistance to students. 

2555.440 Health and insurance benefits and 

services. 

2555.445 Marital or parental status. 

2555.450 Athletics. 

2555.455 Textbooks and curricular material. 

Subpart E-Discrimination on the Basis of 

Sex in Employment in Education Programs or Activities Prohibited 

2555.500 Employment. 

2555.505 Employment criteria. 

2555.510 Recruitment. 

2555.515 Compensation. 

2555.520 Job classification and structure. 

2555.525 Fringe benefits. 

2555.530 Marital or parental status. 

2555.535 Effect of state or local law or other 

requirements. 

2555.540 Advertising. 

2555.545 Pre-employment inquiries. 

2555.550 Sex as a bona fide occupational 

qualification. 

Subpart F-Procedures 

2555.600 Notice of covered programs. 

2555.605 Enforcement procedures. 

837 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2555.100 

AUTHORITY: 20 U.S.C. 1681, 1682, 1683, 1685, 

1686, 1687, 1688. 

SOURCE: 65 FR 52865, 52893, Aug. 30, 2000, unless otherwise noted. 

Subpart A-Introduction 

§ 2555.100 Purpose and effective date. 

The purpose of these Title IX regulations is to effectuate Title IX of the 

Education Amendments of 1972, as amended (except sections 904 and 906 of 

those Amendments) (20 U.S.C. 1681, 

1682, 1683, 1685, 1686, 1687, 1688), which is 

designed to eliminate (with certain ex­ ceptions) discrimination on the basis of sex in any education program or activity receiving Federal financial assistance, whether or not such program or activity is offered or sponsored by an educational institution as defined in 

these Title IX regulations. The effective date of these Title IX regulations 

shall be September 29, 2000. 

§ 2555.105 Definitions. 

As used in these Title IX regulations, 

the term: 

Administratively separate unit means a school, department, or college of an educational institution (other than a local educational agency) admission to 

which is independent of admission to 

any other component of such institution. 

Admission means selection for parttime, full-time, special, associate, 

transfer, exchange, or any other enrollment, membership, or matriculation in or at an education program or activity 

operated by a recipient. 

Applicant means one who submits an application, request, or plan required 

to be approved by an official of the 

Federal agency that awards Federal financial assistance, or by a recipient, as a condition to becoming a recipient. 

Designated agency official means "Director, Equal Opportunity". 

Educational institution means a local 

educational agency (LEA) as defined by 

20 U.S.C. 8801(18), a preschool, a private 

elementary or secondary school, or an applicant or recipient that is an institution of graduate higher education, an institution of undergraduate higher 

education, an institution of professional education, or an institution of 

45 CFR Ch. XXV (10-1-12 Edition) 

vocational education, as defined in this 

section. 

Federal financial assistance means any 

of the following, when authorized or extended under a law administered by 

the Federal agency that awards such 

assistance: 

(1) A grant or loan of Federal financial assistance, including funds made 

available for: 

(i) The acquisition, construction, ren­ ovation, restoration, or repair of a building or facility or any portion 

thereof; and 

(ii) Scholarships, loans, grants, 

wages, or other funds extended to any 

entity for payment to or on behalf of 

students admitted to that entity, or extended directly to such students for 

payment to that entity. 

(2) A grant of Federal real or personal property or any interest therein, 

including surplus property, and the 

proceeds of the sale or transfer of such 

property, if the Federal share of the 

fair market value of the property is 

not, upon such sale or transfer, properly accounted for to the Federal Government. 

(3) Provision of the services of Federal personnel. 

(4) Sale or lease of Federal property or any interest therein at nominal con­ sideration, or at consideration reduced 

for the purpose of assisting the recipient or in recognition of public interest 

to be served thereby, or permission to use Federal property or any interest 

therein without consideration. 

(5) Any other contract, agreement, or arrangement that has as one of its purposes the provision of assistance to any 

education program or activity, except a contract of insurance or guaranty. 

Institution of graduate higher education means an institution that: 

(1) Offers academic study beyond the 

bachelor of arts or bachelor of science 

degree, whether or not leading to a cer­ tificate of any higher degree in the liberal arts and sciences; 

(2) A wards any degree in a professional field beyond the first professional degree (regardless of whether 

the first professional degree in such 

field is awarded by an institution of 

undergraduate higher education or professional education); or 

838 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2555.110 

(3) A wards no degree and offers no further academic study, but operates 

ordinarily for the purpose of facilitating research by persons who have 

received the highest graduate degree in 

any field of study. 

Institution of professional education 

means an institution (except any institution of undergraduate higher education) that offers a program of academic study that leads to a first professional degree in a field for which there 

is a national specialized accrediting 

agency recognized by the Secretary of 

Education. 

Institution of undergraduate higher 

education means: (1) An institution offering at least 

two but less than four years of collegelevel study beyond the high school 

level, leading to a diploma or an asso­ ciate degree, or wholly or principally 

creditable toward a baccalaureate degree; or 

(2) An institution offering academic 

study leading to a baccalaureate degree; or 

(3) An agency or body that certifies 

credentials or offers degrees, but that 

may or may not offer academic study. 

Institution of vocational education 

means a school or institution (except 

an institution of professional or graduate or undergraduate higher education) that has as its primary purpose 

preparation of students to pursue a 

technical, skilled, or semiskilled occu­ pation or trade, or to pursue study in a 

technical field, whether or not the 

school or institution offers certificates, 

diplomas, or degrees and whether or not it offers full-time study. 

Recipient means any State or political subdivision thereof, or any instrumentality of a State or political subdivision thereof, any public or private 

agency, institution, or organization, or 

other entity, or any person, to whom 

Federal financial assistance is ex­ tended directly or through another re­ cipient and that operates an education 

program or activity that receives such 

assistance, including any subunit, successor, assignee, or transferee thereof. 

Student means a person who has 

gained admission. 

Title IX means Title IX of the Education Amendments of 1972, Public Law 

92-318, 86 Stat. 235, 373 (codified as 

amended at 20 U.S.C. 1681-1688) (except 

sections 904 and 906 thereoO, as amended by section 3 of Public Law 93-568, 88 

Stat. 1855, by section 412 of the Education Amendments of 1976, Public Law 

94-482, 90 Stat. 2234, and by Section 3 of 

Public Law 100--259, 102 Stat. 28, 28--29 

(20 u.s.c. 1681, 1682, 1683, 1685, 1686, 1687, 

1688). 

Title IX regulations means the provisions set forth at §§2555.100 through 

2555.605. 

Transition plan means a plan subject 

to the approval of the Secretary of 

Education pursuant to section 901(a)(2) 

of the Education Amendments of 1972, 

20 U.S.C. 1681(a)(2), under which an educational institution operates in making the transition from being an educational institution that admits only 

students of one sex to being one that 

admits students of both sexes without 

discrimination. 

[65 FR 52865, 52893, Aug. 30, 2000, as amended 

at 65 FR 52894, Aug. 30, 2000] 

§2555.110 Remedial and affirmative 

action and self-evaluation. 

(a) Remedial action. If the designated 

agency official finds that a recipient 

has discriminated against persons on 

the basis of sex in an education program or activity, such recipient shall 

take such remedial action as the designated agency official deems necessary to overcome the effects of such 

discrimination. 

(b) Affirmative action. In the absence 

of a finding of discrimination on the 

basis of sex in an education program or 

activity, a recipient may take affirmative action consistent with law to overcome the effects of conditions that resulted in limited participation therein 

by persons of a particular sex. Nothing 

in these Title IX regulations shall be 

interpreted to alter any affirmative action obligations that a recipient may 

have under Executive Order 11246, 3 

CFR, 1964-1965 Comp., p. 339; as amended by Executive Order 11375, 3 CFR, 

1966--1970 Comp., p. 684; as amended by 

Executive Order 11478, 3 CFR, 1966--1970 

Comp., p. 803; as amended by Executive 

Order 12086, 3 CFR, 1978 Comp., p. 230; 

as amended by Executive Order 12107, 3 

CFR, 1978 Comp., p. 264. 

839 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2555.115 

(c) Self-evaluation. Each recipient 

education institution shall, within one year of September 29, 2000: 

(1) Evaluate, in terms of the requirements of these Title IX regulations, its 

current policies and practices and the 

effects thereof concerning admission of 

students, treatment of students, and 

employment of both academic and non­ academic personnel working in connec­ tion with the recipient's education program or activity; 

(2) Modify any of these policies and 

practices that do not or may not meet 

the requirements of these Title IX regulations; and 

(3) Take appropriate remedial steps 

to eliminate the effects of any discrimination that resulted or may have 

resulted from adherence to these policies and practices. 

(d) Availability of self-evaluation and 

related materials. Recipients shall maintain on file for at least three years following completion of the evaluation re­ quired under paragraph (c) of this sec­ tion, and shall provide to the designated agency official upon request, a description of any modifications made 

pursuant to paragraph (c)(2) of this sec­ tion and of any remedial steps taken 

pursuant to paragraph (c)(3) of this sec­ tion. 

§ 2555.115 Assurance required. 

(a) General. Either at the application 

stage or the award stage, Federal agencies must ensure that applications for 

Federal financial assistance or awards 

of Federal financial assistance contain, 

be accompanied by, or be covered by a specifically identified assurance from 

the applicant or recipient, satisfactory 

to the designated agency official, that 

each education program or activity operated by the applicant or recipient 

and to which these Title IX regulations 

apply will be operated in compliance 

with these Title IX regulations. An as­ surance of compliance with these Title 

IX regulations shall not be satisfactory 

to the designated agency official if the 

applicant or recipient to whom such as­ surance applies fails to commit itself 

to take whatever remedial action is 

necessary in accordance with 

§ 2555.llO(a) to eliminate existing discrimination on the basis of sex or to 

eliminate the effects of past discrimi45 CFR Ch. XXV (10-1-12 Edition) 

nation whether occurring prior to or 

subsequent to the submission to the 

designated agency official of such assurance. 

(b) Duration of obligation. (1) In the 

case of Federal financial assistance extended to provide real property or 

structures thereon, such assurance 

shall obligate the recipient or, in the 

case of a subsequent transfer, the 

transferee, for the period during which 

the real property or structures are used 

to provide an education program or activity. 

(2) In the case of Federal financial assistance extended to provide personal 

property, such assurance shall obligate 

the recipient for the period during 

which it retains ownership or possession of the property. 

(3) In all other cases such assurance 

shall obligate the recipient for the period during which Federal financial assistance is extended. 

(c) Form. (1) The assurances required 

by paragraph (a) of this section, which 

may be included as part of a document 

that addresses other assurances or obligations, shall include that the applicant or recipient will comply with all 

applicable Federal statutes relating to 

nondiscrimination. These include but 

are not limited to: Title IX of the Education Amendments of 1972, as amended (20 U.S.C. 1681-1683, 1685-1688). 

(2) The designated agency official 

will specify the extent to which such 

assurances will be required of the applicant's or recipient's subgrantees, 

contractors, subcontractors, transferees, or successors in interest. 

§ 2555.120 Transfers of property. 

If a recipient sells or otherwise transfers property financed in whole or in 

part with Federal financial assistance 

to a transferee that operates any education program or activity, and the 

Federal share of the fair market value 

of the property is not upon such sale or 

transfer properly accounted for to the 

Federal Government, both the transferor and the transferee shall be 

deemed to be recipients, subject to the 

provisions of §§ 2555.205 through 

2555.235(a). 

840 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2555.140 

§ 2555.125 Effect of other requirements. 

(a) Effect of other Federal provisions. 

The obligations imposed by these Title 

IX regulations are independent of, and 

do not alter, obligations not to discriminate on the basis of sex imposed 

by Executive Order 11246, 3 CFR, 1964--

1965 Comp., p. 339; as amended by Executive Order 11375, 3 CFR, 1966--1970 

Comp., p. 684; as amended by Executive 

Order 11478, 3 CFR, 1966--1970 Comp., p. 

803; as amended by Executive Order 

12087, 3 CFR, 1978 Comp., p. 230; as 

amended by Executive Order 12107, 3 

CFR, 1978 Comp., p. 264; sections 704 

and 855 of the Public Health Service 

Act (42 U.S.C. 295m, 298b-2); Title VII of 

the Civil Rights Act of 1964 (42 U.S.C. 

2000e et seq.); the Equal Pay Act of 1963 

(29 U.S.C. 206); and any other Act of 

Congress or Federal regulation. 

(b) Effect of State or local law or other 

requirements. The obligation to comply 

with these Title IX regulations is not 

obviated or alleviated by any State or 

local law or other requirement that 

would render any applicant or student 

ineligible, or limit the eligibility of 

any applicant or student, on the basis 

of sex, to practice any occupation or 

profession. 

(c) Effect of rules or regulations of private organizations. The obligation to 

comply with these Title IX regulations 

is not obviated or alleviated by any 

rule or regulation of any organization, 

club, athletic or other league, or association that would render any applicant or student ineligible to participate or limit the eligibility or participation of any applicant or student, on 

the basis of sex, in any education program or activity operated by a recipient and that receives Federal financial 

assistance. 

§ 2555.130 Effect of employment opportunities. 

The obligation to comply with these 

Title IX regulations is not obviated or 

alleviated because employment opportunities in any occupation or profession are or may be more limited for 

members of one sex than for members 

of the other sex. 

§ 2555.135 Designation of responsible 

employee and adoption of grievance 

procedures. 

(a) Designation of responsible employee. 

Each recipient shall designate at least one employee to coordinate its efforts 

to comply with and carry out its re­ sponsibilities under these Title IX regulations, including any investigation of 

any complaint communicated to such 

recipient alleging its noncompliance 

with these Title IX regulations or alleging any actions that would be prohibited by these Title IX regulations. 

The recipient shall notify all its students and employees of the name, office address, and telephone number of 

the employee or employees appointed 

pursuant to this paragraph. 

(b) Complaint procedure of recipient. A 

recipient shall adopt and publish griev­ ance procedures providing for prompt 

and equitable resolution of student and 

employee complaints alleging any action that would be prohibited by these 

Title IX regulations. 

§ 2555.140 Dissemination of policy. 

(a) Notification of policy. (1) Each recipient shall implement specific and 

continuing steps to notify applicants 

for admission and employment, students and parents of elementary and 

secondary school students, employees, 

sources of referral of applicants for admission and employment, and all 

unions or professional organizations 

holding collective bargaining or professional agreements with the recipient, 

that it does not discriminate on the 

basis of sex in the educational programs or activities that it operates, 

and that it is required by Title IX and 

these Title IX regulations not to discriminate in such a manner. Such notification shall contain such information, and be made in such manner, as 

the designated agency official finds 

necessary to apprise such persons of 

the protections against discrimination 

assured them by Title IX and these 

Title IX regulations, but shall state at 

least that the requirement not to discriminate in education programs or ac­ tivities extends to employment therein, and to admission thereto unless 

§§ 2555.300 through 2555.310 do not apply 

to the recipient, and that inquiries 

concerning the application of Title IX 

841 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2555.200 

and these Title IX regulations to such 

recipient may be referred to the employee designated pursuant to 

§2555.135, or to the designated agency 

official. 

(2) Each recipient shall make the initial notification required by paragraph 

(a)(l) of this section within 90 days of 

September 29, 2000 or of the date these 

Title IX regulations first apply to such 

recipient, whichever comes later, 

which notification shall include publication in: 

(i) Newspapers and magazines operated by such recipient or by student, 

alumnae, or alumni groups for or in 

connection with such recipient; and 

(ii) Memoranda or other written communications distributed to every student and employee of such recipient. 

(b) Publications. (1) Each recipient 

shall prominently include a statement 

of the policy described in paragraph (a) 

of this section in each announcement, 

bulletin, catalog, or application form 

that it makes available to any person 

of a type, described in paragraph (a) of 

this section, or which is otherwise used 

in connection with the recruitment of 

students or employees. 

(2) A recipient shall not use or distribute a publication of the type described in paragraph (b)(l) of this section that suggests, by text or illustration, that such recipient treats applicants, students, or employees differently on the basis of sex except as 

such treatment is permitted by these 

Title IX regulations. 

(c) Distribution. Each recipient shall 

distribute without discrimination on the basis of sex each publication described in paragraph (b)(l) of this section, and shall apprise each of its admission and employment recruitment 

representatives of the policy of nondiscrimination described in paragraph 

(a) of this section, and shall require 

such representatives to adhere to such 

policy. 

Subpart B--Coverage 

§ 2555.200 Application. 

Except as provided in §§ 2555.205 

through 2555.235(a), these Title IX regulations apply to every recipient and to 

each education program or activity op45 CFR Ch. XXV (10-1-12 Edition) 

erated by such recipient that receives 

Federal financial assistance. 

§ 2555.205 Educational institutions and 

other entities controlled by religious organizations. 

(a) Exemption. These Title IX regulations do not apply to any operation of 

an educational institution or other en­ tity that is controlled by a religious 

organization to the extent that application of these Title IX regulations 

would not be consistent with the religious tenets of such organization. 

(b) Exemption claims. An educational 

institution or other entity that wishes 

to claim the exemption set forth in 

paragraph (a) of this section shall do so by submitting in writing to the designated agency official a statement by 

the highest-ranking official of the institution, identifying the provisions of 

these Title IX regulations that conflict 

with a specific tenet of the religious or­ ganization. 

§ 2555.210 Military and merchant ma­ rine educational institutions. 

These Title IX regulations do not 

apply to an educational institution 

whose primary purpose is the training 

of individuals for a military service of 

the United States or for the merchant 

marine. 

§ 2555.215 Membership practices of 

certain organizations. 

(a) Social fraternities and sororities. 

These Title IX regulations do not apply 

to the membership practices of social 

fraternities and sororities that are exempt from taxation under section 

50l(a) of the Internal Revenue Code of 

1954, 26 U.S.C. 501(a), the active mem­ bership of which consists primarily of 

students in attendance at institutions 

of higher education. 

(b) YMCA, YWCA, Girl Scouts, Boy 

Scouts, and Camp Fire Girls. These Title 

IX regulations do not apply to the 

membership practices of the Young 

Men's Christian Association (YMCA), 

the Young Women's Christian Association (YWCA), the Girl Scouts, the Boy 

Scouts, and Camp Fire Girls. 

(c) Voluntary youth service organizations. These Title IX regulations do not 

apply to the membership practices of a voluntary youth service organization 

842 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2555.230 

that is exempt from taxation under 

section 50l(a) of the Internal Revenue 

Code of 1954, 26 U.S.C. 501(a), and the 

membership of which has been traditionally limited to members of one sex and principally to persons of less than 

nineteen years of age. 

§ 2555.220 Admissions. 

(a) Admissions to educational institutions prior to June 24, 1973, are not 

covered by these Title IX regulations. 

(b) Administratively separate units. For 

the purposes only of this section, 

§§ 2555.225 and 2555.230, and §§ 2555.300 

through 2555.310, each administratively 

separate unit shall be deemed to be an 

educational institution. 

(c) Application of §§2555.300 through 

2555.310. Except as provided in paragraphs (d) and (e) of this section, 

§§ 2555.300 through 2555.310 apply to 

each recipient. A recipient to which 

§§ 2555.300 through 2555.310 apply shall 

not discriminate on the basis of sex in 

admission or recruitment in violation 

of §§ 2555.300 through 2555.310. 

(d) Educational institutions. Except as provided in paragraph (e) of this section as to recipients that are educational institutions, §§2555.300 

through 2555.310 apply only to institutions of vocational education, professional education, graduate higher education, and public institutions of un­ dergraduate higher education. 

(e) Public institutions of undergraduate 

higher education. §§ 2555.300 through 

2555.310 do not apply to any public institution of undergraduate higher education that traditionally and continually from its establishment has had a policy of admitting students of only 

one sex. 

§ 2555.225 Educational institutions eligible to submit transition plans. 

(a) Application. This section applies 

to each educational institution to 

which §§ 2555.300 through 2555.310 apply 

that: 

(1) Admitted students of only one sex 

as regular students as of June 23, 1972; 

or 

(2) Admitted students of only one sex 

as regular students as of June 23, 1965, 

but thereafter admitted, as regular students, students of the sex not admitted 

prior to June 23, 1965. 

(b) Provision for transition plans. An 

educational institution to which this 

section applies shall not discriminate on the basis of sex in admission or recruitment in violation of §§ 2555.300 

through 2555.310. 

§ 2555.230 Transition plans. 

(a) Submission of plans. An institution 

to which § 2555.225 applies and that is 

composed of more than one administrati vely separate unit may submit either 

a single transition plan applicable to 

all such units, or a separate transition 

plan applicable to each such unit. 

(b) Content of plans. In order to be approved by the Secretary of Education, 

a transition plan shall: 

(1) State the name, address, and Federal Interagency Committee on Education Code of the educational institution submitting such plan, the administratively separate units to which the 

plan is applicable, and the name, address, and telephone number of the per­ son to whom questions concerning the 

plan may be addressed. The person who 

submits the plan shall be the chief administrator or president of the institution, or another individual legally authorized to bind the institution to all 

actions set forth in the plan. 

(2) State whether the educational institution or administratively separate 

unit admits students of both sexes as regular students and, if so, when it 

began to do so. (3) Identify and describe with respect 

to the educational institution or administratively separate unit any obstacles to admitting students without discrimination on the basis of sex. (4) Describe in detail the steps necessary to eliminate as soon as practicable each obstacle so identified and 

indicate the schedule for taking these 

steps and the individual directly re­ sponsible for their implementation. 

(5) Include estimates of the number 

of students, by sex, expected to apply 

for, be admitted to, and enter each 

class during the period covered by the 

plan. 

(c) Nondiscrimination. No policy or practice of a recipient to which 

§2555.225 applies shall result in treatment of applicants to or students of 

such recipient in violation of §§ 2555.300 

through 2555.310 unless such treatment 

843 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2555.235 

is necessitated by an obstacle identified in paragraph (b)(3) of this section 

and a schedule for eliminating that obstacle has been provided as required by 

paragraph (b)(4) of this section. 

(d) Effects of past exclusion. To over­ come the effects of past exclusion of 

students on the basis of sex, each educational institution to which § 2555.225 

applies shall include in its transition 

plan, and shall implement, specific 

steps designed to encourage individuals 

of the previously excluded sex to apply 

for admission to such institution. Such 

steps shall include instituting recruitment programs that emphasize the institution's commitment to enrolling 

students of the sex previously ex­ cluded. 

§ 2555.235 Statutory amendments. 

(a) This section, which applies to all 

provisions of these Title IX regulations, addresses statutory amendments 

to Title IX. 

(b) These Title IX regulations shall 

not apply to or preclude: 

(1) Any program or activity of the 

American Legion undertaken in con­ nection with the organization or operation of any Boys State conference, 

Boys Nation conference, Girls State 

conference, or Girls Nation conference; 

(2) Any program or activity of a secondary school or educational institution specifically for: 

(i) The promotion of any Boys State 

conference, Boys Nation conference, 

Girls State conference, or Girls Nation 

conference; or (ii) The selection of students to attend any such conference; 

(3) Father-son or mother-daughter 

activities at an educational institution or in an education program or activity, 

but if such activities are provided for 

students of one sex, opportunities for 

reasonably comparable activities shall 

be provided to students of the other 

sex; 

(4) Any scholarship or other financial 

assistance awarded by an institution of 

higher education to an individual be­ cause such individual has received such 

award in a single-sex pageant based 

upon a combination of factors related 

to the individual's personal appearance, poise, and talent. The pageant, 

however, must comply with other non45 CFR Ch. XXV (10-1-12 Edition) 

discrimination provisions of Federal 

law. 

( c) Program or activity or program 

means: 

(1) All of the operations of any entity 

described in paragraphs (c)(l)(i) 

through (iv) of this section, any part of 

which is extended Federal financial as­ sistance: 

(i)(A) A department, agency, special 

purpose district, or other instrumentality of a State or of a local government; or (B) The entity of such State or local 

government that distributes such as­ sistance and each such department or agency (and each other State or local 

government entity) to which the as­ sistance is extended, in the case of as­ sistance to a State or local government; 

(ii)(A) A college, university, or other 

postsecondary institution, or a public 

system of higher education; or (B) A local educational agency (as defined in section 8801 of title 20), system 

of vocational education, or other 

school system; 

(iii)(A) An entire corporation, partnership, or other private organization, or an entire sole proprietorship- (1) If assistance is extended to such 

corporation, partnership, private organization, or sole proprietorship as a whole; or (2) Which is principally engaged in 

the business of providing education, 

health care, housing, social services, or parks and recreation; or (B) The entire plant or other com­ parable, geographically separate facility to which Federal financial assist­ ance is extended, in the case of any 

other corporation, partnership, private 

organization, or sole proprietorship; or (iv) Any other entity that is established by two or more of the entities 

described in paragraphs (c)(l)(i), (ii), or (iii) of this section. 

(2)(i) Program or activity does not include any operation of an entity that is 

controlled by a religious organization 

if the application of 20 U.S.C. 1681 to 

such operation would not be consistent 

with the religious tenets of such organization. 

(ii) For example, all of the operations 

of a college, university, or other postsecondary institution, including but 

844 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2555.300 

not limited to traditional educational 

operations, faculty and student housing, campus shuttle bus service, cam­ pus restaurants, the bookstore, and 

other commercial activities are part of a "program or activity" subject to 

these Title IX regulations if the college, university, or other institution 

receives Federal financial assistance. 

(d)(l) Nothing in these Title IX regulations shall be construed to require or prohibit any person, or public or private entity, to provide or pay for any 

benefit or service, including the use of 

facilities, related to an abortion. Medical procedures, benefits, services, and 

the use of facilities, necessary to save the life of a pregnant woman or to address complications related to an abortion are not subject to this section. 

(2) Nothing in this section shall be 

construed to permit a penalty to be imposed on any person or individual be­ cause such person or individual is seeking or has received any benefit or serv­ ice related to a legal abortion. Accordingly, subject to paragraph (d)(l) of 

this section, no person shall be ex­ cluded from participation in, be denied 

the benefits of, or be subjected to discrimination under any academic, ex­ tracurricular, research, occupational 

training, employment, or other educational program or activity operated 

by a recipient that receives Federal financial assistance because such individual has sought or received, or is 

seeking, a legal abortion, or any benefit or service related to a legal abortion. 

Subpart C-Discrimination on the 

Basis of Sex in Admission and 

Recruitment Prohibited 

§ 2555.300 Admission. 

(a) General. No person shall, on the 

basis of sex, be denied admission, or be 

subjected to discrimination in admission, by any recipient to which 

§§2555.300 through 2555.310 apply, except as provided in §§ 2555.225 and 2555.230. 

(b) Specific prohibitions. (1) In determining whether a person satisfies any 

policy or criterion for admission, or in 

making any offer of admission, a re­ cipient to which §§2555.300 through 

2555.310 apply shall not: 

(i) Give preference to one person over 

another on the basis of sex, by ranking 

applicants separately on such basis, or 

otherwise; 

(ii) Apply numerical limitations upon 

the number or proportion of persons of 

either sex who may be admitted; or 

(iii) Otherwise treat one individual 

differently from another on the basis of 

sex. 

(2) A recipient shall not administer 

or operate any test or other criterion 

for admission that has a disproportionately adverse effect on persons on the 

basis of sex unless the use of such test 

or criterion is shown to predict validly success in the education program or activity in question and alternative tests 

or criteria that do not have such a disproportionately adverse effect are 

shown to be unavailable. 

(c) Prohibitions relating to marital or 

parental status. In determining whether 

a person satisfies any policy or criterion for admission, or in making any 

offer of admission, a recipient to which 

§§ 2555.300 through 2555.310 apply: 

(1) Shall not apply any rule con­ cerning the actual or potential parental, family, or marital status of a student or applicant that treats persons 

differently on the basis of sex; 

(2) Shall not discriminate against or 

exclude any person on the basis of 

pregnancy, childbirth, termination of 

pregnancy, or recovery therefrom, or 

establish or follow any rule or practice 

that so discriminates or excludes; 

(3) Subject to § 2555.235(d), shall treat 

disabilities related to pregnancy, childbirth, termination of pregnancy, or recovery therefrom in the same manner and under the same policies as any 

other temporary disability or physical 

condition; and 

(4) Shall not make pre-admission inquiry as to the marital status of an applicant for admission, including wheth­ er such applicant is "Miss" or "Mrs." 

A recipient may make pre-admission 

inquiry as to the sex of an applicant for 

admission, but only if such inquiry is 

made equally of such applicants of both 

sexes and if the results of such inquiry are not used in connection with discrimination prohibited by these Title 

IX regulations. 

845 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2555.305 

§ 2555.305 Preference in admission. 

A recipient to which §§2555.300 

through 2555.310 apply shall not give 

preference to applicants for admission, on the basis of attendance at any educational institution or other school or entity that admits as students only or predominantly members of one sex, if 

the giving of such preference has the 

effect of discriminating on the basis of sex in violation of §§ 2555.300 through 

2555.310. 

§ 2555.310 Recruitment. 

(a) Nondiscriminatory recruitment. A 

recipient to which §§2555.300 through 

2555.310 apply shall not discriminate on the basis of sex in the recruitment and 

admission of students. A recipient may 

be required to undertake additional re­ cruitment efforts for one sex as reme­ dial action pursuant to §2555.ll0(a), and 

may choose to undertake such efforts as affirmative action pursuant to 

§ 2555.ll0(b). 

(b) Recruitment at certain institutions. 

A recipient to which §§2555.300 through 

2555.310 apply shall not recruit primarily or exclusively at educational 

institutions, schools, or entities that 

admit as students only or predominantly members of one sex, if such ac­ tions have the effect of discriminating on the basis of sex in violation of 

§§ 2555.300 through 2555.310. 

Subpart D-Discrimination on the 

Basis of Sex in Education Programs or Activities Prohibited 

§ 2555.400 Education programs or ac­ tivities. 

(a) General. Except as provided elsewhere in these Title IX regulations, no person shall, on the basis of sex, be ex­ cluded from participation in, be denied 

the benefits of, or be subjected to discrimination under any academic, ex­ tracurricular, research, occupational 

training, or other education program or activity operated by a recipient that 

receives Federal financial assistance. 

Sections 2555.400 through 2555.455 do 

not apply to actions of a recipient in 

connection with admission of its students to an education program or ac­ tivity of a recipient to which §§2555.300 

through 2555.310 do not apply, or an en45 CFR Ch. XXV (10-1-12 Edition) 

tity, not a recipient, to which §§2555.300 

through 2555.310 would not apply if the 

entity were a recipient. 

(b) Specific prohibitions. Except as provided in §§ 2555.400 through 2555.455, in 

providing any aid, benefit, or service to a student, a recipient shall not, on the 

basis of sex: (1) Treat one person differently from 

another in determining whether such 

person satisfies any requirement or condition for the provision of such aid, 

benefit, or service; 

(2) Provide different aid, benefits, or services or provide aid, benefits, or services in a different manner; 

(3) Deny any person any such aid, 

benefit, or service; 

(4) Subject any person to separate or different rules of behavior, sanctions, or other treatment; 

(5) Apply any rule concerning the 

domicile or residence of a student or applicant, including eligibility for instate fees and tuition; 

(6) Aid or perpetuate discrimination 

against any person by providing significant assistance to any agency, or­ ganization, or person that discriminates on the basis of sex in providing 

any aid, benefit, or service to students or employees; 

(7) Otherwise limit any person in the 

enjoyment of any right, privilege, advantage, or opportunity. 

(c) Assistance administered by a recipient educational institution to study at a 

foreign institution. A recipient educational institution may administer or assist in the administration of scholarships, fellowships, or other awards es­ tablished by foreign or domestic wills, 

trusts, or similar legal instruments, or by acts of foreign governments and re­ stricted to members of one sex, that are designed to provide opportunities 

to study abroad, and that are awarded 

to students who are already matriculating at or who are graduates of the 

recipient institution; Provided, that a recipient educational institution that 

administers or assists in the administration of such scholarships, fellowships, or other awards that are re­ stricted to members of one sex provides, or otherwise makes available, 

reasonable opportunities for similar 

studies for members of the other sex. Such opportunities may be derived 

846 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2555.415 

from either domestic or foreign sources. 

(d) Aids, benefits or services not provided by recipient. (1) This paragraph (d) 

applies to any recipient that requires 

participation by any applicant, student, or employee in any education 

program or activity not operated wholly by such recipient, or that facilitates, 

permits, or considers such participation as part of or equivalent to an education program or activity operated by 

such recipient, including participation 

in educational consortia and cooperative employment and student-teaching 

assignments. 

(2) Such recipient: 

(i) Shall develop and implement a procedure designed to assure itself that 

the operator or sponsor of such other 

education program or activity takes no action affecting any applicant, student, or employee of such recipient that 

these Title IX regulations would prohibit such recipient from taking; and 

(ii) Shall not facilitate, require, permit, or consider such participation if 

such action occurs. 

§ 2555.405 Housing. 

(a) Generally. A recipient shall not, on the basis of sex, apply different 

rules or regulations, impose different 

fees or requirements, or offer different 

services or benefits related to housing, 

except as provided in this section (including housing provided only to mar­ ried students). 

(b) Housing provided by recipient. (1) A 

recipient may provide separate housing on the basis of sex. (2) Housing provided by a recipient to 

students of one sex, when compared to 

that provided to students of the other 

sex, shall be as a whole: 

(i) Proportionate in quantity to the 

number of students of that sex applying for such housing; and 

(ii) Comparable in quality and cost to 

the student. 

(c) Other housing. (1) A recipient shall 

not, on the basis of sex, administer different policies or practices concerning 

occupancy by its students of housing 

other than that provided by such re­ cipient. 

(2)(i) A recipient which, through so­ licitation, listing, approval of housing, or otherwise, assists any agency, organization, or person in making housing 

available to any of its students, shall 

take such reasonable action as may be 

necessary to assure itself that such 

housing as is provided to students of one sex, when compared to that provided to students of the other sex, is as a whole: 

(A) Proportionate in quantity; and 

(B) Comparable in quality and cost to 

the student. 

(ii) A recipient may render such as­ sistance to any agency, organization, or person that provides all or part of 

such housing to students of only one sex. 

§2555.410 Comparable facilities. 

A recipient may provide separate toilet, locker room, and shower facilities on the basis of sex, but such facilities 

provided for students of one sex shall 

be comparable to such facilities provided for students of the other sex. 

§ 2555.415 Access to course offerings. 

(a) A recipient shall not provide any course or otherwise carry out any of its 

education program or activity separately on the basis of sex, or require or refuse participation therein by any of 

its students on such basis, including 

health, physical education, industrial, 

business, vocational, technical, home 

economics, music, and adult education courses. 

(b)(l) With respect to classes and ac­ tivities in physical education at the elementary school level, the recipient 

shall comply fully with this section as expeditiously as possible but in no event later than one year from September 29, 2000. With respect to physical education classes and activities at 

the secondary and post-secondary levels, the recipient shall comply fully 

with this section as expeditiously as possible but in no event later than 

three years from September 29, 2000. 

(2) This section does not prohibit 

grouping of students in physical education classes and activities by ability as assessed by objective standards of 

individual performance developed and 

applied without regard to sex. (3) This section does not prohibit separation of students by sex within physical education classes or activities during participation in wrestling, boxing, 

847 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2555.420 

rugby, ice hockey, football, basketball, 

and other sports the purpose or major 

activity of which involves bodily con­ tact. 

(4) Where use of a single standard of 

measuring skill or progress in a physical education class has an adverse effect on members of one sex, the recipient shall use appropriate standards 

that do not have such effect. 

(5) Portions of classes in elementary 

and secondary schools, or portions of 

education programs or activities, that 

deal exclusively with human sexuality 

may be conducted in separate sessions 

for boys and girls. 

(6) Recipients may make requirements based on vocal range or quality 

that may result in a chorus or choruses 

of one or predominantly one sex. 

§ 2555.420 Access to schools operated 

byLEAs. 

A recipient that is a local educational agency shall not, on the basis 

of sex, exclude any person from admission to: 

(a) Any institution of vocational education operated by such recipient; or (b) Any other school or educational 

unit operated by such recipient, unless 

such recipient otherwise makes available to such person, pursuant to the same policies and criteria of admission, 

courses, services, and facilities com­ parable to each course, service, and facility offered in or through such 

schools. 

§ 2555.425 Counseling and use of appraisal and counseling materials. 

(a) Counseling. A recipient shall not 

discriminate against any person on the 

basis of sex in the counseling or guid­ ance of students or applicants for admission. 

(b) Use of appraisal and counseling materials. A recipient that uses testing or other materials for appraising or coun­ seling students shall not use different 

materials for students on the basis of 

their sex or use materials that permit or require different treatment of students on such basis unless such different materials cover the same occu­ pations and interest areas and the use of such different materials is shown to 

be essential to eliminate sex bias. Recipients shall develop and use internal 

45 CFR Ch. XXV (10-1-12 Edition) 

procedures for ensuring that such ma­ terials do not discriminate on the basis 

of sex. Where the use of a counseling 

test or other instrument results in a substantially disproportionate number 

of members of one sex in any particular course of study or classification, the 

recipient shall take such action as is 

necessary to assure itself that such disproportion is not the result of discrimination in the instrument or its application. 

(c) Disproportion in classes. Where a recipient finds that a particular class 

contains a substantially disproportionate number of individuals of one sex, the recipient shall take such ac­ tion as is necessary to assure itself 

that such disproportion is not the re­ sult of discrimination on the basis of sex in counseling or appraisal materials or by counselors. 

§ 2555.430 Financial assistance. 

(a) General. Except as provided in 

paragraphs (b) and (c) of this section, 

in providing financial assistance to any 

of its students, a recipient shall not: 

(1) On the basis of sex, provide different amounts or types of such assistance, limit eligibility for such assist­ ance that is of any particular type or source, apply different criteria, or otherwise discriminate; 

(2) Through solicitation, listing, approval, provision of facilities, or other 

services, assist any foundation, trust, 

agency, organization, or person that 

provides assistance to any of such re­ cipient's students in a manner that discriminates on the basis of sex; or (3) Apply any rule or assist in application of any rule concerning eligibility for such assistance that treats 

persons of one sex differently from per­ sons of the other sex with regard to 

marital or parental status. 

(b) Financial aid established by certain 

legal instruments. (1) A recipient may 

administer or assist in the administration of scholarships, fellowships, or other forms of financial assistance es­ tablished pursuant to domestic or foreign wills, trusts, bequests, or similar 

legal instruments or by acts of a foreign government that require that 

awards be made to members of a particular sex specified therein; Provided, 

that the overall effect of the award of 

848 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2555.445 

such sex-restricted scholarships, fellowships, and other forms of financial 

assistance does not discriminate on the 

basis of sex. 

(2) To ensure nondiscriminatory 

awards of assistance as required in 

paragraph (b)(l) of this section, recipients shall develop and use procedures 

under which: 

(i) Students are selected for award of 

financial assistance on the basis of 

nondiscriminatory criteria and not on the basis of availability of funds re­ stricted to members of a particular sex; 

(ii) An appropriate sex-restricted 

scholarship, fellowship, or other form 

of financial assistance is allocated to 

each student selected under paragraph 

(b)(2)(i) of this section; and 

(iii) No student is denied the award 

for which he or she was selected under 

paragraph (b)(2)(i) of this section be­ cause of the absence of a scholarship, 

fellowship, or other form of financial 

assistance designated for a member of 

that student's sex. 

(c) Athletic scholarships. (1) To the ex­ tent that a recipient awards athletic 

scholarships or grants-in-aid, it must 

provide reasonable opportunities for 

such awards for members of each sex in 

proportion to the number of students 

of each sex participating in interscholastic or intercollegiate athletics. 

(2) A recipient may provide separate 

athletic scholarships or grants-in-aid 

for members of each sex as part of separate athletic teams for members of 

each sex to the extent consistent with 

this paragraph (c) and §2555.450. 

§ 2555.435 Employment assistance to 

students. 

(a) Assistance by recipient in making 

available outside employment. A recipient that assists any agency, organization, or person in making employment 

available to any of its students: 

(1) Shall assure itself that such em­ ployment is made available without 

discrimination on the basis of sex; and 

(2) Shall not render such services to 

any agency, organization, or person 

that discriminates on the basis of sex in its employment practices. 

(b) Employment of students by recipients. A recipient that employs any of 

its students shall not do so in a manner 

that violates §§ 2555.500 through 

2555.550. 

§ 2555.440 Health and insurance benefits and services. 

Subject to §2555.235(d), in providing a medical, hospital, accident, or life in­ surance benefit, service, policy, or plan 

to any of its students, a recipient shall 

not discriminate on the basis of sex, or provide such benefit, service, policy, or plan in a manner that would violate 

§§2555.500 through 2555.550 if it were provided to employees of the recipient. 

This section shall not prohibit a recipient from providing any benefit or serv­ ice that may be used by a different proportion of students of one sex than of 

the other, including family planning 

services. However, any recipient that 

provides full coverage health service 

shall provide gynecological care. 

§ 2555.445 Marital or parental status. 

(a) Status generally. A recipient shall 

not apply any rule concerning a student's actual or potential parental, 

family, or marital status that treats 

students differently on the basis of sex. 

(b) Pregnancy and related conditions. 

(1) A recipient shall not discriminate 

against any student, or exclude any 

student from its education program or activity, including any class or extracurricular activity, on the basis of such 

student's pregnancy, childbirth, false 

pregnancy, termination of pregnancy, or recovery therefrom, unless the student requests voluntarily to participate in a separate portion of the program or activity of the recipient. 

(2) A recipient may require such a student to obtain the certification of a physician that the student is physically and emotionally able to continue 

participation as long as such a certification is required of all students for 

other physical or emotional conditions 

requiring the attention of a physician. 

(3) A recipient that operates a portion of its education program or activity separately for pregnant students, 

admittance to which is completely voluntary on the part of the student as provided in paragraph (b)(l) of this sec­ tion, shall ensure that the separate 

portion is comparable to that offered 

to non-pregnant students. 

849 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2555.450 

(4) Subject to § 2555.235(d), a recipient 

shall treat pregnancy, childbirth, false 

pregnancy, termination of pregnancy 

and recovery therefrom in the same manner and under the same policies as any other temporary disability with re­ spect to any medical or hospital benefit, service, plan, or policy that such 

recipient administers, operates, offers, or participates in with respect to students admitted to the recipient's educational program or activity. 

(5) In the case of a recipient that does 

not maintain a leave policy for its students, or in the case of a student who 

does not otherwise qualify for leave 

under such a policy, a recipient shall 

treat pregnancy, childbirth, false pregnancy, termination of pregnancy, and 

recovery therefrom as a justification 

for a leave of absence for as long a period of time as is deemed medically 

necessary by the student's physician, 

at the conclusion of which the student 

shall be reinstated to the status that 

she held when the leave began. 

§ 2555.450 Athletics. 

(a) General. No person shall, on the 

basis of sex, be excluded from participation in, be denied the benefits of, be 

treated differently from another person, or otherwise be discriminated 

against in any interscholastic, intercollegiate, club, or intramural athletics offered by a recipient, and no re­ cipient shall provide any such athletics 

separately on such basis. 

(b) Separate teams. Notwithstanding 

the requirements of paragraph (a) of 

this section, a recipient may operate or sponsor separate teams for members of 

each sex where selection for such 

teams is based upon competitive skill or the activity involved is a contact 

sport. However, where a recipient operates or sponsors a team in a particular 

sport for members of one sex but operates or sponsors no such team for mem­ bers of the other sex, and athletic opportunities for members of that sex have previously been limited, members 

of the excluded sex must be allowed to 

try out for the team offered unless the 

sport involved is a contact sport. For 

the purposes of these Title IX regulations, contact sports include boxing, 

wrestling, rugby, ice hockey, football, 

basketball, and other sports the pur45 CFR Ch. XXV (10-1-12 Edition) 

pose or major activity of which involves bodily contact. 

(c) Equal opportunity. (1) A recipient 

that operates or sponsors interscholastic, intercollegiate, club, or intramural athletics shall provide equal 

athletic opportunity for members of 

both sexes. In determining whether 

equal opportunities are available, the 

designated agency official will con­ sider, among other factors: 

(i) Whether the selection of sports 

and levels of competition effectively 

accommodate the interests and abilities of members of both sexes; 

(ii) The provision of equipment and 

supplies; 

(iii) Scheduling of games and practice time; 

(iv) Travel and per diem allowance; 

(v) Opportunity to receive coaching 

and academic tutoring; 

(vi) Assignment and compensation of 

coaches and tutors; 

(vii) Provision of locker rooms, practice, and competitive facilities; 

(viii) Provision of medical and training facilities and services; 

(ix) Provision of housing and dining 

facilities and services; 

(x) Publicity. 

(2) For purposes of paragraph (c)(l) of 

this section, unequal aggregate expenditures for members of each sex or un­ equal expenditures for male and female 

teams if a recipient operates or spon­ sors separate teams will not constitute 

noncompliance with this section, but 

the designated agency official may 

consider the failure to provide nec­ essary funds for teams for one sex in 

assessing equality of opportunity for 

members of each sex. 

(d) Adjustment period. A recipient that 

operates or sponsors interscholastic, 

intercollegiate, club, or intramural 

athletics at the elementary school 

level shall comply fully with this sec­ tion as expeditiously as possible but in no event later than one year from September 29, 2000. A recipient that operates or sponsors interscholastic, intercollegiate, club, or intramural athletics at the secondary or postsecondary school level shall comply fully 

with this section as expeditiously as possible but in no event later than 

three years from September 29, 2000. 

850 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2555.510 

§ 2555.455 Textbooks and curricular 

material. 

Nothing in these Title IX regulations 

shall be interpreted as requiring or prohibiting or abridging in any way the 

use of particular textbooks or cur­ ricular materials. 

Subpart E-Discrimination on the 

Basis of Sex in Employment in 

Education Programs or Activities Prohibited 

§ 2555.500 Employment. 

(a) General. (1) No person shall, on the basis of sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination in 

employment, or recruitment, consideration, or selection therefor, whether 

full-time or part-time, under any education program or activity operated by a recipient that receives Federal financial assistance. 

(2) A recipient shall make all em­ ployment decisions in any education 

program or activity operated by such 

recipient in a nondiscriminatory man­ ner and shall not limit, segregate, or classify applicants or employees in any 

way that could adversely affect any applicant's or employee's employment 

opportunities or status because of sex. 

(3) A recipient shall not enter into 

any contractual or other relationship 

which directly or indirectly has the effect of subjecting employees or students to discrimination prohibited by 

§§2555.500 through 2555.550, including 

relationships with employment and re­ ferral agencies, with labor unions, and 

with organizations providing or administering fringe benefits to employees of 

the recipient. 

(4) A recipient shall not grant pref­ erences to applicants for employment on the basis of attendance at any educational institution or entity that admits as students only or predominantly 

members of one sex, if the giving of 

such preferences has the effect of discriminating on the basis of sex in violation of these Title IX regulations. 

(b) Application. The provisions of 

§§2555.500 through 2555.550 apply to: 

(1) Recruitment, advertising, and the 

process of application for employment; 

(2) Hiring, upgrading, promotion, 

consideration for and award of tenure, 

demotion, transfer, layoff, termination, application of nepotism policies, right of return from layoff, and 

rehiring; 

(3) Rates of pay or any other form of 

compensation, and changes in com­ pensation; 

(4) Job assignments, classifications, 

and structure, including position descriptions, lines of progression, and se­ niority lists; 

(5) The terms of any collective bargaining agreement; 

(6) Granting and return from leaves 

of absence, leave for pregnancy, childbirth, false pregnancy, termination of 

pregnancy, leave for persons of either sex to care for children or dependents, or any other leave; 

(7) Fringe benefits available by virtue of employment, whether or not administered by the recipient; 

(8) Selection and financial support 

for training, including apprenticeship, 

professional meetings, conferences, and 

other related activities, selection for 

tuition assistance, selection for 

sabbaticals and leaves of absence to 

pursue training; 

(9) Employer-sponsored activities, including social or recreational programs; and 

(10) Any other term, condition, or privilege of employment. 

§ 2555.505 Employment criteria. 

A recipient shall not administer or operate any test or other criterion for 

any employment opportunity that has a disproportionately adverse effect on persons on the basis of sex unless: 

(a) Use of such test or other criterion 

is shown to predict validly successful 

performance in the position in question; and 

(b) Alternative tests or criteria for 

such purpose, which do not have such 

disproportionately adverse effect, are shown to be unavailable. 

§ 2555.510 Recruitment. 

(a) Nondiscriminatory recruitment and 

hiring. A recipient shall not discriminate on the basis of sex in the recruitment and hiring of employees. Where a recipient has been found to be presently discriminating on the basis of sex 

851 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

§2555.515 

in the recruitment or hiring of employees, or has been found to have so discriminated in the past, the recipient 

shall recruit members of the sex so discriminated against so as to overcome the effects of such past or present discrimination. 

(b) Recruitment patterns. A recipient 

shall not recruit primarily or exclusively at entities that furnish as applicants only or predominantly members 

of one sex if such actions have the effect of discriminating on the basis of sex in violation of §§ 2555.500 through 

2555.550. 

§ 2555.515 Compensation. 

A recipient shall not make or enforce 

any policy or practice that, on the 

basis of sex: 

(a) Makes distinctions in rates of pay or other compensation; 

(b) Results in the payment of wages 

to employees of one sex at a rate less 

than that paid to employees of the opposite sex for equal work on jobs the 

performance of which requires equal 

skill, effort, and responsibility, and 

that are performed under similar working conditions. 

§ 2555.520 Job classification and structure. 

A recipient shall not: 

(a) Classify a job as being for males or for females; 

(b) Maintain or establish separate 

lines of progression, seniority lists, ca­ reer ladders, or tenure systems based on sex; or 

(c) Maintain or establish separate 

lines of progression, seniority systems, career ladders, or tenure systems for 

similar jobs, position descriptions, or job requirements that classify persons on the basis of sex, unless sex is a bona 

fide occupational qualification for the 

positions in question as set forth in 

§2555.550. 

§ 2555.525 Fringe benefits. 

(a) "Fringe benefits" defined. For purposes of these Title IX regulations, 

fringe benefits means: Any medical, hospital, accident, life insurance, or re­ tirement benefit, service, policy or plan, any profit-sharing or bonus plan, 

leave, and any other benefit or service 

45 CFR Ch. XXV (10-1-12 Edition) 

of employment not subject to the provision of § 2555.515. 

(b) Prohibitions. A recipient shall not: 

(1) Discriminate on the basis of sex with regard to making fringe benefits 

available to employees or make fringe 

benefits available to spouses, families, or dependents of employees differently 

upon the basis of the employee's sex; 

(2) Administer, operate, offer, or participate in a fringe benefit plan that 

does not provide for equal periodic benefits for members of each sex and for 

equal contributions to the plan by such 

recipient for members of each sex; or (3) Administer, operate, offer, or participate in a pension or retirement plan 

that establishes different optional or compulsory retirement ages based on sex or that otherwise discriminates in 

benefits on the basis of sex. 

§ 2555.530 Marital or parental status. 

(a) General. A recipient shall not 

apply any policy or take any employment action: 

(1) Concerning the potential marital, 

parental, or family status of an em­ ployee or applicant for employment 

that treats persons differently on the 

basis of sex; or (2) Which is based upon whether an employee or applicant for employment 

is the head of household or principal 

wage earner in such employee's or applicant's family unit. 

(b) Pregnancy. A recipient shall not 

discriminate against or exclude from 

employment any employee or applicant 

for employment on the basis of pregnancy, childbirth, false pregnancy, termination of pregnancy, or recovery 

therefrom. 

(c) Pregnancy as a temporary disability. 

Subject to §2555.235(d), a recipient shall 

treat pregnancy, childbirth, false pregnancy, termination of pregnancy, re­ covery therefrom, and any temporary 

disability resulting therefrom as any 

other temporary disability for all jobrelated purposes, including commence­ ment, duration, and extensions of 

leave, payment of disability income, 

accrual of seniority and any other benefit or service, and reinstatement, and 

under any fringe benefit offered to em­ ployees by virtue of employment. 

(d) Pregnancy leave. In the case of a recipient that does not maintain a 

852 
While efforts are made to keep information in this consolidated document current, please consult the primary sources for the most up-to-date information. 

Corporation for National and Community Service §2555.605 

leave policy for its employees, or in the case of an employee with insufficient 

leave or accrued employment time to 

qualify for leave under such a policy, a recipient shall treat pregnancy, childbirth, false pregnancy, termination of 

pregnancy, and recovery therefrom as a justification for a leave of absence 

without pay for a reasonable period of 

time, at the conclusion of which the 

employee shall be reinstated to the status that she held when the leave began or to a comparable position, without 

decrease in rate of compensation or loss of promotional opportunities, or any other right or privilege of employment. 

§ 2555.535 Effect of state or local law or other requirements. 

(a) Prohibitory requirements. The obligation to comply with §§2555.500 

through 2555.550 is not obviated or alleviated by the existence of any State or local law or other requirement that imposes prohibitions or limits upon em­ ployment of members of one sex that 

are not imposed upon members of the 

other sex. (b) Benefits. A recipient that provides 

any compensation, service, or benefit 

to members of one sex pursuant to a 

State or local law or other requirement 

shall provide the same compensation, 

service, or benefit to members of the 

other sex. 

§ 2555.540 Advertising. 

A recipient shall not in any advertising related to employment indicate 

preference, limitation, specification, or 

discrimination based on sex unless sex is a bona fide occupational qualification for the particular job in question. 

§ 2555.545 Pre-employment inquiries. 

(a) Marital status. A recipient shall 

not make pre-employment inquiry as 

to the marital status of an applicant 

for employment, including whether 

such applicant is "Miss" or "Mrs." 

(b) Sex. A recipient may make preemployment inquiry as to the sex of an applicant for employment, but only if 

such inquiry is made equally of such 

applicants of both sexes and if the re­ sults of such inquiry are not used in 

connection with discrimination prohibited by these Title IX regulations. 

§ 2555.550 Sex as a bona fide occupational qualification. 

A recipient may take action otherwise prohibited by §§2555.500 through 

2555.550 provided it is shown that sex is 

a bona fide occupational qualification 

for that action, such that consideration of sex with regard to such action 

is essential to successful operation of 

the employment function concerned. A 

recipient shall not take action pursuant to this section that is based upon 

alleged comparative employment characteristics or stereotyped characterizations of one or the other sex, or upon 

preference based on sex of the recipient, employees, students, or other persons, but nothing contained in this sec­ tion shall prevent a recipient from considering an employee's sex in relation 

to employment in a locker room or toilet facility used only by members of 

one sex. 

Subpart F-Procedures 

§ 2555.600 Notice of covered programs. 

Within 60 days of September 29, 2000, 

each Federal agency that awards Federal financial assistance shall publish 

in the FEDERAL REGISTER a notice of 

the programs covered by these Title IX 

regulations. Each such Federal agency 

shall periodically republish the notice 

of covered programs to reflect changes 

in covered programs. Copies of this notice also shall be made available upon 

request to the Federal agency's office 

that enforces Title IX. 

§ 2555.605 Enforcement procedures. 

The investigative, compliance, and 

enforcement procedural provisions of 

Title VI of the Civil Rights Act of 1964 

(42 U.S.C. 2000d) ("Title VI") are hereby 

adopted and applied to these Title IX 

regulations. These procedures may be 

found at 45 CFR 1203.6 through 1203.12. 

[65 FR 52894, Aug. 30, 2000] 

853 
While efforts are made tQ keep information irl thi:; consolidated document curren0

t ple;;ise consult the P,rima,ry sourel(!s for the, most up-to-date information. 

60922 Federal Register/Vol. 77, No. 194/Friday, ctober 5, 2012/Rules and Regulations 

CORPORATION FOR NATIONAL AND 

COMMUNITY SERVICE 

45 CFR Parts 2510, 2522, 2540, 2551, 

and 2552 

RIN 3045-AA56 

Criminal History Check Requirements 

for AmeriCorps State/National, Senior 

Companions, Foster Grandparents, the 

Retired and Senior Volunteer Program, 

and Other National Service Programs; 

Final Rule 

AGENCY: Corporation for National and 

Community Service. 

ACTION: Final rule. 

SUMMARY: To implement the Serve 

America Act, the Corporation for 

National and Community Service 

(CNCS) proposed amendments to its 

National Service Criminal History 

Check regulation on July 6, 2011. This 

final rule adopts the proposed 

amendments, clarifies several 

requirements, and makes minor 

technical corrections. The amendments 

require CNCS grantees to conduct and 

document a National Service Criminal 

History Check that includes a 

fingerprint-based FBI criminal history 

check on individuals in covered 

positions who begin work, or who start 

service, on or after April 21, 2011, and 

who have recurring access to children 

17 years of age or younger, to persons 

age 60 and older, or to individuals with 

disabilities. Individuals in covered 

positions include Senior Companions 

(SCP), Foster Grandparents (FGP), 

AmeriCorps State and National 

participants, and other participants, 

volunteers, or staff funded under a 

CNCS grant. 

DATES: This final rule is effective 

January 1, 2013. 

FOR FURTHER INFORMATION CONTACT: 

Amy Borgstrom, Corporation for 

National and Community Service, 1201 

New York Avenue NW., Washington, 

DC 25025. She may be reached at (202) 

606-6930 (aborgstrom@cns.gov). The 

TDD/TTY number is (202) 606-3472. 

You may request this notice in an 

alternative format for the visually 

impaired. 

SUPPLEMENTARY INFORMATION: 

I. Background 

a. National Service Criminal History 

Check Requirements Prior to the Serve 

America Act 

In 2007, the Corporation issued rules 

requiring grantees to conduct criminal 

history checks on the members, 

volunteers, and grant-funded staff who 

had recurring access to children, 

persons age 60 or older, or individuals 

with disabilities. Recurring access 

meant having contact with individuals 

from one or more of the above groups 

on more than one occasion. These 2007 

rules only applied to the AmeriCorps 

State and National, FGP and SCP 

programs. The rules did not apply to the 

Retired and Senior Volunteer Program 

(RSVP), Learn and Serve America (LSA), 

or other CNCS-funded programs. 

Affected grantees could apply to CNCS 

for approval of an alternative search 

procedure (ASP) if state law precluded 

them from complying with the national 

service criminal history check 

requirements or if they could obtain 

substantially the same information 

using a different process. The regulation 

also permitted grantees to conduct a 

fingerprint-based FBI criminal history 

check in lieu of the required state 

criminal history registry check(s). 

b. The Serve America Act's National 

Service Criminal History Check 

Requirements 

In 2009, Congress amended the 

National and Community Service Act of 

1990 (42 U.S.C. 12501 et seq.) (NCSA) 

with the Serve America Act (Pub. L. 

111-13) (SAA). The SAA codified 

CNCS's regulatory National Service 

Criminal History Check requirements 

and expanded the categories of 

positions covered by the criminal 

history check requirements. Under the 

SAA, on or after October 1, 2009, any 

entity that selects an individual to serve 

in a position in which the individual 

receives a living allowance, stipend, 

national service educational award, or 

salary through a program receiving 

assistance under the national service 

laws must conduct a criminal history 

check on that individual. Individuals in 

covered positions now include grantfunded staff serving in any CNCSfunded national service program, 

including RSVP, LSA, Non-profit 

Capacity Building, and the Social 

Innovation Fund (SIF) grant programs. 

Notably, the SAA expanded the 

categories of covered positions subject 

to the National Service Criminal History 

Check requirements without regard to 

the individual's access to vulnerable 

populations. It also prohibited 

individuals convicted of murder from 

serving in covered positions. The SAA 

also required that after April 21, 2011, 

individuals in covered positions with 

recurring access to vulnerable 

populations must have a fingerprintbased FBI criminal history check 

conducted as part of the National 

Service Criminal History Check. As 

directed by the SAA, CNCS issued new 

regulations in 2009, expanding coverage 

to any national service participant, 

volunteer or grant-funded employee 

who received one of the abovedescribed payments for his or her 

service or employment. (74 FR 46495, 

September 10, 2009). Pursuant to these 

regulations, each individual in a 

covered position who does not have 

recurring access to vulnerable 

populations who began work or started 

service with a grantee on or after 

October 1, 2009, is required to undergo 

a National Service Criminal History 

Check that includes: (1) A nationwide 

check of the National Sex Offender 

Public Web site (NSOPW); and (2) a 

search of either (a) the state criminal 

registry(ies) in the state in which the 

grantee is operating and the state in 

which the individual resides at the time 

of application, or (b) a Federal Bureau 

of Investigation (FBI) fingerprint-based 

criminal history check. 

c. Special Rule for Individuals With 

Recurring Access to Vulnerable 

Populations 

The SAA specified separate National 

Service Criminal History Check 

requirements for individuals in covered 

positions with recurring access to 

vulnerable populations. Beginning April 

21, 2011, entities that select individuals 

to serve in covered positions who are 18 

or older and who will have recurring 

access to children age 17 or younger, 

individuals age 60 or older, or 

individuals with disabilities must 

conduct for each individual: (1) A 

nationwide check of the NSOPW; (2) a 

search of the state criminal registr(ies) 

in the state in which the individual in 

a covered position will be primarily 

serving or working and the state in 

which the individual resides at the time 

of application; and (3) an FBI 

fingerprint-based criminal history 

check. The SAA created limited 

exceptions to this special rule. 

II. Discussion of the Final Rule 

To implement National Service 

Criminal History Check provisions of 

the SAA, CNCS published a notice of a 

proposed rulemaking in the Federal 

Register on July 6, 2011. (76 FR 39361). 

This final rule implements the SAA 

with regard to individuals in covered 

positions with recurring access to 

vulnerable populations. In addition, the 

final rule clarifies several requirements 

in the existing rule and makes minor 

technical corrections for clarity. 

a. Definitions and Applicability 

1. Definition of "Program" (§ 2510.20) 

The SAA amended the NCSA's 

definition of program to include newly-
While efforts are made tQ keep information irl thi:; consolidated document curren0

t ple;;ise consult the P,rima,ry sourel(!s for the, most up-to-date information. 

Federal Register/Vol. 77, No. 194/Friday, ctober 5, 2012/Rules and Regulations 60923 

authorized programs including 

Campuses of Service, Serve America 

Fellows, Encore Fellows, Silver 

Scholars, the Social Innovation Fund, 

and activities funded under programs 

such as the Volunteer Generation Fund. 

The final rule aligns the definition of 

program in the regulation with the 

statutory definition, corrects a 

typographical error, and corrects the 

statutory citation. 

2. Definition of "You"(§ 2540.200) 

Because this rule sets forth the 

National Service Criminal History 

Check provisions in one location in the 

Code of Federal Regulations, and 

because the rule applies to recipients of 

CNCS federal financial assistance who 

have individuals in covered positions, 

this final rule is written using programneutral terminology. Accordingly, 

"you" in this final rule means a 

Corporation grantee or other entity 

subject to Corporation grant provisions. 

Unless the context otherwise requires, 

this includes, but is not limited to, 

recipients of federal financial assistance 

under grant programs defined in 

§ 2510.20 of this final rule, as well as 

SCP, FGP, and RSVP projects. 

3. Individuals in Covered Positions 

(§ 2540.201) 

The final rule clarifies that the 

National Service Criminal History 

Check eligibility criteria apply to 

individuals in covered positions and 

aligns the definition of the term 

"covered position" with the language of 

the SAA. The reference in the proposed 

rule to the definition of program in 

§ 2510.20 was removed from the final 

rule for clarity. The SAA extended 

application of the National Service 

Criminal History Check requirements to 

entities receiving CNCS grants under the 

national service laws, which include the 

NCSA and the Domestic Volunteer 

Service Act of 1973 (DVSA), as 

amended. While the National Service 

Criminal History Check requirements 

apply to programs defined in§ 2510.20, 

the applicability is not limited to those 

programs. The requirements also apply 

to individuals in covered positions in 

the SCP, FGP, and RSVP programs. It 

should be clear that a National Service 

Criminal History Check is not required 

for individuals whose connection to the 

grantee is tangential, or who are 

considered beneficiaries. For example, a 

National Service Criminal History 

Check would not be required for an 

individual contracted to provide 

occasional training to participants and 

volunteers, but is not otherwise integral 

to the operation of the program, nor 

would it be required for a child who 

receives a cash prize from a program for 

completing a service-learning project. 

b. Eligibility Criteria-AmeriCorps State 

and National Positions {§ 2522.200) 

The SAA amended the NCSA to 

prohibit an individual convicted of 

murder, as defined under 18 U.S.C. 

1111, from serving in a covered 

position. In 2009, CNCS amended the 

National Service Criminal History 

Check regulations to reflect this 

statutory change concerning eligibility. 

As the regulatory sections updated in 

2009 indicated, the change applied to 

AmeriCorps State and National. 

However, CNCS inadvertently failed to 

update the provision in the regulation 

that specifically addresses eligibility to 

serve in an AmeriCorps State and 

National position. This final rule 

corrects this oversight to reflect in this 

section that eligibility for service in an 

AmeriCorps State and National position 

includes satisfaction of the National 

Service Criminal History Check 

eligibility criteria. 

The 2009 amendments to the National 

Service Criminal History Check 

regulations created some confusion 

regarding the eligibility of individuals 

convicted of murder, as defined under 

18 U.S.C. 1111, from serving in a 

covered position. Congress declared 

that, as of October 1, 2009, individuals 

convicted of murder may not work or 

serve in covered positions. This 

Congressional mandate gave no 

discretion to CNCS to waive or modify 

this eligibility requirement. 

Consequently, grantees with 

individuals convicted of murder who 

are currently serving or working in a 

covered position, including staff, must 

remove those individuals from the 

covered positions. For those individuals 

for whom a state registry or FBI criminal 

history check was not required prior to 

this final rule (e.g., those individuals 

who began work or service before 

October 1, 2009, without a subsequent 

break in service), grantees will be 

permitted to rely on the individuals' 

self-certification that they have never 

been convicted of murder as defined by 

18 U.S.C. 1111, in lieu of conducting a 

criminal history check. The definition 

in 18 U.S.C. 1111 is as follows: "Murder 

is the unlawful killing of a human being 

with malice aforethought. Every murder 

perpetrated by poison, lying in wait, or 

any other kind of willful, deliberate, 

malicious, and premeditated killing; or 

committed in the perpetration of, or 

attempt to perpetrate, any arson, escape, 

murder, kidnapping, treason, espionage, 

sabotage, aggravated sexual abuse or 

sexual abuse, child abuse, burglary, or 

robbery; or perpetrated as part of a 

pattern or practice of assault or torture 

against a child or children; or 

perpetrated from a premeditated design 

unlawfully and maliciously to effect the 

death of any human being other than 

him who is killed, is murder in the first 

degree. Any other murder is murder in 

the second degree." 

Individuals who have been convicted 

of murder have been ineligible to serve 

as of October 1, 2009, and therefore, all 

costs associated with these individuals 

are potentially disallowable since that 

date. 

c. National Service Criminal History 

Checks Generally{§ 2540.203) 

The National Service Criminal History 

Check for individuals in covered 

positions must include (1) a nationwide 

check of the Department of Justice's 

National Sex Offender Public Web site 

(NSOPW) and (2) either (a) a name- or 

fingerprint-based search of the official 

state criminal history registry in the 

state in which the grantee is operating 

and of the official state criminal history 

registry in the state in which the 

individual resides at the time of 

application, or (b) submission of 

fingerprints through a state central 

record repository to the Federal Bureau 

of Investigation for a national criminal 

history background check. 

Because of the importance of proper 

screening and because the NSOPW is a 

widely-available and free public 

resource, the NSOPW search must be 

nationwide (i.e., all states and 

territories) in order to meet the National 

Service Criminal History Check 

requirement. If any of the databases 

comprising the NSOPW are down, 

offline, or otherwise unavailable, the 

NSOPW check is incomplete until all 

databases are checked. The rule has 

been revised to clarify this requirement. 

Additionally, because of the availability 

of this free public resource, grantees 

must conduct an NSOPW check for any 

individual currently serving or working 

in a covered position defined under this 

rule, regardless of when the individual 

was hired or started service, and 

regardless of their access to vulnerable 

populations. Finally, as a prudential 

action, all CNCS grantees, when 

conducting a search of the name-based 

NSOPW, should include not only the 

applicant's current legal name, but also 

any previous names or aliases by which 

the applicant may have been known. 

Since 2007, CNCS has required 

grantees operating in more than one 

state that conduct state criminal registry 

checks to conduct the checks in the 

state where the individual in a covered 

position will be primarily serving or 

working and in the state in which the 
While efforts are made tQ keep information irl thi:; consolidated document curren0

t ple;;ise consult the P,rima,ry sourel(!s for the, most up-to-date information. 

60924 Federal Register/Vol. 77, No. 194/Friday, ctober 5, 2012/Rules and Regulations 

individual resides at the time of 

application. The final rule codifies this 

requirement. 

Comments received by CNCS 

indicated that the formatting of the 

proposed rule made it difficult to 

determine which components of the 

National Service Criminal History 

Check are required. The rule has been 

reformatted to make the requirements 

clear. Additionally, the heading of this 

section was edited to be consistent with 

the other section headings. 

CNCS also received comments 

requesting resolution of the ambiguity 

in the proposed rule regarding the time 

at which an individual is considered of 

age for the special rule for individuals 

with recurring access to vulnerable 

populations to apply. The final rule 

establishes that the rule applies to an 

individual who will be 18 years old or 

older at any time while serving in a 

covered position. The final rule also 

replaces the broad term "vulnerable 

population" with the specific groups 

statutorily defined as "vulnerable 

populations," where necessary, to 

resolve any ambiguity. 

This section of the final rule is the 

first section in which the words 

"enrolled" and "hired" are replaced 

with "starts service" and "begins work," 

respectively. These words are updated 

throughout the final rule because 

comments suggested that the use of 

"enrolled" and "hired" created some 

confusion. For some grantees, 

"enrolled" has a specific operational 

meaning that does not reflect the 

intended timing in the context of the 

rule. Therefore, the word, "enrolled," 

has been replaced with the words, 

"starts service," to more clearly convey 

the intended timing requirements of the 

final rule. For the purposes of this rule, 

an individual "starts service" when the 

individual's time begins to be credited 

toward their service commitment; an 

individual "begins work" when the 

individual engages in activities 

chargeable to the grant." 

The proposed rule reflected CNCS's 

intent to eliminate unnecessary 

replication of the National Service 

Criminal History Check provisions in 

the Code of Federal Regulations, and 

anchors the substantive provisions in 

one location. Because grantees subject to 

the National Service Criminal History 

Check provisions use different 

terminology, and comments indicated 

that the terminology may have caused 

confusion, the final rule includes a 

definitional section to eliminate 

confusion concerning the applicability 

of the provisions. Sections have been 

renumbered and citations throughout 

the rule have been updated accordingly 

to accommodate its inclusion. 

d. Special Rule for Individuals With 

Recurring Access to Vulnerable 

Populations(§ 2540.203) 

This final rule implements the 

National Service Criminal History 

Check requirements for individuals in 

covered positions with recurring access 

to vulnerable populations who began 

work or who started service on or after 

April 21, 2011. The NCSA, as amended 

by the SAA, defines vulnerable 

populations as children age 17 or 

younger, individuals age 60 or older, or 

individuals with disabilities. The final 

rule now more clearly defines 

"vulnerable population." Unless CNCS 

approves an alternative search 

procedure or an exception under 

§ 2540.207, for individuals in covered 

positions who will be 18 or older and 

who also have recurring access to 

vulnerable populations, grantees must 

conduct (1) a nationwide check of the 

NSOPW (http://www.nsopw.gov), (2) a 

name- or fingerprint-based search of the 

official state criminal registry in the 

state in which the grantee is operating 

and of the official state criminal registry 

in the state in which the individual 

resides at the time of application, and 

(3) submission of fingerprints through a 

state central record repository to the 

Federal Bureau of Investigation for a 

national criminal history background 

check. 

CNCS continues to define "recurring 

access" as "the ability on more than one 

occasion to approach, observe, or 

communicate with an individual 

through physical proximity or other 

means, including but not limited to, 

electronic or telephonic 

communication." (45 CFR 2510.20). 

In anticipation of the final rule, 

current grantees have inquired as to 

whether CNCS would develop a 

centralized mechanism for conducting 

FBI fingerprint checks for national 

service participants. CNCS is committed 

to identifying ways to decrease the 

burden on grantees; however, no such 

centralized mechanism is available at 

this time. 

e. Timing of National Service Criminal 

History Check and Consecutive Terms 

{§ 2540.204) 

Grantees must conduct and document 

the results of the nationwide NSOPW 

check before an individual begins work 

or starts service. The NSOPW is a free 

public resource available at http:// 

www.nsopw.gov/. 

Under § 2540.204(b) of this final rule, 

it is not necessary to perform an 

additional National Service Criminal 

History Check on an individual who 

serves consecutive terms of service with 

the same grantee when the break in 

service does not exceed 120 days, as 

long as the original check is a compliant 

check for the covered position in which 

the individual will be serving or 

working following the break in service. 

For example, if an individual serves an 

original term in a covered position with 

no recurring access to vulnerable 

populations, but will be serving the 

consecutive term in a covered position 

with recurring access to vulnerable 

populations, the grantee must ensure 

that any additional National Service 

Criminal History Check components 

required for the position are conducted 

(e.g. the fingerprint-based FBI check). 

This section allows, but does not 

require, a grantee to forego additional 

National Service Criminal History 

checks for individuals serving 

consecutive terms, based upon a 

presumption that the additional check 

would, in large part, replicate the 

original check and that the grantee's 

proximity to the individual would 

increase the likelihood that the grantee 

would have knowledge of the 

individual's activity. 

Grantees must conduct a National 

Service Criminal History Check under 

this final rule on individuals in covered 

positions who, on or after April 21, 

2011, begin work or start service (1) 

following a break in service exceeding 

120 days or (2) with a new grantee. 

(f) No Unaccompanied Access to 

Vulnerable Populations Pending 

National Service Criminal History 

Check Results(§ 2540.205) 

This final rule codifies CNCS's 

understanding that it is common for 

vulnerable population beneficiaries to 

be accompanied by a parent, legal 

guardian, teacher, doctor, nurse, or 

other individual responsible for his or 

her care. CNCS does not believe it is 

necessary for an individual with 

pending National Service Criminal 

History Check results to be 

accompanied by an authorized grantee 

representative who has received the 

appropriate criminal history check 

when the vulnerable population 

beneficiary is accompanied by an 

individual responsible for his or her 

care. 

While results from the state or FBI 

criminal history check components of 

the National Service Criminal History 

Check are pending, grantees may allow 

individuals in covered positions with 

recurring access to vulnerable 

populations to begin work or start 

service, as long as the individual is not 

permitted access to vulnerable 
While efforts are made tQ keep information irl thi:; consolidated document curren0

t ple;;ise consult the P,rima,ry sourel(!s for the, most up-to-date information. 

Federal Register/Vol. 77, No. 194/Friday, ctober 5, 2012/Rules and Regulations 60925 

populations without being accompanied 

by (1) an authorized grantee 

representative who has previously been 

cleared for such access; (2) a family 

member or legal guardian of the 

vulnerable individual; or (3) an 

individual authorized by the nature of 

his or her profession to have recurring 

access to the vulnerable individual, 

such as an education or medical 

professional. Accompaniment is a 

higher standard than supervision in that 

it requires the individual with recurring 

access to vulnerable populations to be 

in the physical presence of the 

accompanying individual. For example, 

a covered individual whose criminal 

history check component results are 

pending may give nature tours to 

schoolchildren as part of an 

environmental program as long as the 

covered individual is within the 

physical presence of teachers or parents. 

The final rule has been changed based 

on comments CNCS received about the 

ambiguity in the term 

"accompaniment." The final rule uses 

the phrase "physical presence" in place 

of "accompaniment" to convey the 

intended meaning and specific 

requirement. 

g. Costs (§2540.205) 

The rule requires grantees to obtain 

and document a baseline criminal 

history check for individuals in covered 

positions. CNCS considers the cost of 

this required National Service Criminal 

History Check a reasonable and 

necessary program grant expense, such 

costs being presumptively eligible for 

reimbursement. In any event, a grantee 

should include the costs associated with 

its screening process in the grant budget 

it submits to CNCS for approval. 

This rule codifies CNCS's guidance 

that a grantee may not charge an 

individual for the cost of a National 

Service Criminal History Check unless 

CNCS has given written permission to 

do so. In addition, because a National 

Service Criminal History Check is 

inherently attributable to operating a 

program, such costs may not be charged 

to a state commission administrative 

grant. 

h. Documentation Requirements 

(§ 2540.206) 

Grantees must retain the criminal 

history check results along with written 

documentation that they considered the 

results in selecting the individual. The 

grantee must review and determine that 

the information returned by the 

governmental body issuing criminal 

history registry results provides 

information that would allow the 

grantee to determine whether or not an 

individual was eligible to work or serve 

in a covered position under the final 

rule. For example, if a grantee receives 

a document from the statewide criminal 

history registry that indicates that the 

individual is "cleared" for service based 

upon an agreement that describes 

CNCS's standards for eligibility, that 

clearance document may be retained as 

the sufficient documentation of the 

criminal history check results, along 

with written documentation that the 

grantee considered the result in 

selecting the individual. 

i. Alternative Search Procedures and 

Exceptions to the National Service 

Criminal History Check Requirements 

for Individuals in Covered Positions 

With Recurring Access to Vulnerable 

Populations {§ 2540.207) 

The headings and structure of this 

section have been modified from those 

in the proposed rule in order to clarify 

the substantive content, and to clearly 

distinguish alternative search 

procedures from the statutory 

exceptions to the fingerprint-based FBI 

criminal history check requirement for 

individuals in covered positions with 

recurring access to vulnerable 

populations. A grantee may request in 

writing that CNCS approve an 

alternative search procedure for the 

National Service Criminal History 

Check components described in 

§ 2540.203(a) or§ 2540.203(b)(2)(i)-(ii), 

if the grantee (1) is prohibited under 

state law from meeting the requirements 

of§ 2540.203(a) or§ 2540.203(b)(2)(i)­

(ii) or (2) demonstrates that it can obtain 

substantially equivalent or better 

information through an alternative 

search procedure. 

Grantees may also apply to CNCS for 

approval of an exception from the 

fingerprint-based FBI criminal history 

check component of the National 

Service Criminal History Check, 

described in § 2540.203(b)(2)(iii), for an 

individual in a covered position with 

recurring access to vulnerable 

populations. CNCS may approve such 

an exception if the entity demonstrates 

to CNCS's satisfaction (1) that the cost 

to the grantee of complying with 45 CFR 

2540.203(b)(2)(iii) is prohibitive; (2) that 

the entity is not authorized, or is 

otherwise unable, under State or Federal 

law, to access the national criminal 

history background check system of the 

FBI; or (3) that there is sufficient 

justification for CNCS to exempt the 

grantee from the requirement for good 

cause. 

1. Episodic Access (§ 2540.207) 

Congress granted those individuals in 

covered positions with recurring access 

to vulnerable populations an exception 

to the FBI fingerprint-based criminal 

history check requirement when their 

access to vulnerable populations is 

"episodic in nature or for a [one]-day 

period." For the purpose of this final 

rule, the Corporation defines "episodic" 

as access that is not a regular, 

scheduled, and anticipated component 

of an individual's service activities. If 

access to vulnerable populations is not 

a regular, scheduled, and anticipated 

component of an individual's service 

activities, the grantee is not required to 

conduct a fingerprint-based FBI 

criminal history check. However, the 

grantee must conduct the other 

components of the National Service 

Criminal History Check, as described in 

§ 2540.203(b)(2)(i)-(ii) or under an 

approved ASP. 

For example, consider an individual 

who is applying for an AmeriCorps 

position with an environmental program 

that involves volunteer coordination. If 

the grantee anticipates that the position 

will involve coordinating high school 

student volunteers on a regular basis, 

then the grantee must conduct a 

fingerprint-based FBI criminal history 

check on that individual. However, if 

the grantee has no reason to expect that 

the position will involve coordinating 

17-year-old and younger volunteers 

because the grantee has never operated 

in a youth environment, does not have 

any youth engagement goals, and does 

not recruit high school aged volunteers, 

then any contact with a child volunteer 

would be irregular, unscheduled, 

unanticipated, and thus, episodic. 

Therefore, the grantee would not need 

to conduct a fingerprint-based FBI 

criminal history check. However, the 

grantee must conduct the other 

components of the National Service 

Criminal History Check, as described in 

§ 2540.203(b)(2)(i)-(ii) or under an 

approved ASP. 

Episodic access is not determined by 

a specific number. In other words, if a 

grantee does not anticipate that a 

member will have access to vulnerable 

populations, the need to meet the 

National Service Criminal History 

Check requirements for individuals in 

covered positions with access to 

vulnerable populations would not 

materialize after a specific number of 

incidents of access occur, but would 

once the access becomes regular, 

scheduled and anticipated. If incidental 

access becomes unexpectedly regular or 

frequent, a grantee should re-evaluate its 

initial determination of episodic access 

and take appropriate action. 

CNCS expects that in the majority of 

cases, it will be clear whether or not 

access to vulnerable populations is a 
While efforts are made tQ keep information irl thi:; consolidated document curren0

t ple;;ise consult the P,rima,ry sourel(!s for the, most up-to-date information. 

60926 Federal Register/Vol. 77, No. 194/Friday, ctober 5, 2012/Rules and Regulations 

regular, scheduled, and anticipated 

component of an individual's service 

activities. Nevertheless, CNCS 

recommends that grantees specifically 

address contact with vulnerable 

populations in each position 

description, service agreement, or 

similar document describing an 

individual's service activities. 

2. Exemptions Approved for Good 

Cause 

CNCS will publish on its Web site 

(http:/ lwww.nationalservice.gov) those 

scenarios for which CNCS has approved 

exemptions for "good cause" from the 

fingerprint-based FBI criminal history 

check requirement in 

§ 2540.203(b)(2)(iii). The list of 

approved "good cause" exemptions may 

be expanded and codified in future 

rulemakings. 

CNCS will monitor compliance with 

the rules and requirements associated 

with National Service Criminal History 

checks as a material condition of 

receiving a CNCS grant. An entity's 

failure to comply may adversely affect 

the entity's access to grant funds or 

ability to obtain future funding from 

CNCS. In addition, an entity jeopardizes 

its eligibility for reimbursement of costs 

and hours related to an individual if it 

fails to perform or properly document 

the required National Service Criminal 

History Check. 

III. Non-Regulatory Matters 

Coverage Based on Start Date 

The table below illustrates what 

National Service Criminal History 

Check components are required of 

individuals serving or working after 

January 1, 2013. 
While efforts are made tQ keep information in thi~ consolidated document currendt ple~se consult the P,rima,ry sour~s for the, most up-to-date information. Federal Register/Vol. 77, No. 194/Friday, ctober 5, 2012/Rules and Regulations 60927 

Recurring 

Access to 

vulnerable 

populations? 

Individuals who, on or after the effective date of this 

rule, Began Work or Started Service 

Before November October 1, On or after 

November 23,2007 2009 April 21, 

23,2007 September April 20, 2011 

30,2009 2011 

AmeriCorps 

S&N 

FGP 

Senior 

Companion 

RSVP staff 

VISTA grantfunded staff 

Learn & 

Serve 

Other Grant 

Programs 

N = NSOPW; S = State registry check; F = FBI fingerprint check 

IV. Comments and Responses 

CNCS published the proposed rule 

with a 30-day comment period in the 

Federal Register of July 6, 2011 (76 FR 

39361). We received over 150 comments 

on the proposed rule. Most of the 

commenters identified themselves as 

representatives of grantees required to 

comply with the rule. The most relevant 

comments and our responses are set 

forth below. Comment: The majority of 

commenters expressed disapproval with 

the rule's requirement that individuals 

working with vulnerable populations 

must submit their fingerprints to the FBI 

for a national criminal history 

background check. The commenters 

disapproved of the requirement because 
While efforts are made tQ keep information irl thi:; consolidated document curren0

t ple;;ise consult the P,rima,ry sourel(!s for the, most up-to-date information. 

60928 Federal Register/Vol. 77, No. 194/Friday, ctober 5, 2012/Rules and Regulations 

the process for complying with the 

requirement is time consuming, costly, 

and logistically challenging for grantees 

and participants. As a result, the 

commenters said that the increased 

administrative and financial burden the 

requirement imposes on grantees will 

significantly impact their ability to 

recruit participants and operate 

effectively. Additionally, the 

commenters considered the requirement 

unnecessarily redundant, as many of the 

grantees already require individuals to 

complete several criminal history 

background checks and that the 

additional requirement of a fingerprintbased FBI check provides very little new 

information. 

Response: We acknowledge the 

concerns expressed about the FBI 

fingerprinting process and the 

administrative impact the requirement 

may have on some grantees. We, like all 

executive agencies, may exercise 

discretion in issuing rules, but only to 

the extent discretion is granted to us by 

law. The law requires individuals 

working with vulnerable populations to 

submit their fingerprints to the FBI for 

a national criminal history check; 

however, the law also created 

exceptions to the fingerprint-based FBI 

criminal history check. Grantees may 

use the "episodic access" exception 

without our written approval. The other 

available exceptions require that you 

contact our Office of Grants 

Management for written approval. The 

procedure for requesting an exception is 

in 45 CFR 2540.207. 

Comment: Several of the comments 

we received indicated that the cost of 

the FBI criminal history background 

check could be a financial burden for 

the grantee and for the participants and 

volunteers. 

Response: We acknowledge the 

administrative and financial impact that 

the fingerprint-based FBI criminal 

history check could have on grantees. 

The law created exceptions to the 

fingerprint-based FBI criminal history 

check requirement for individuals in 

covered positions with recurring access 

to vulnerable populations, one of which 

is when it is cost-prohibitive for the 

grantee to comply. Grantees may request 

written approval of an exception by 

contacting our Office of Grants 

Management. 

We want to reiterate that unless we 

grant specific permission in writing, a 

grantee may not charge an individual for 

the cost of any component of a National 

Service Criminal History Check. In the 

absence of specific written permission, 

the grantee must not, even when the 

check returns unfavorable results, 

require the applicant or participant to 

ultimately bear the cost of the criminal 

history check. 

Comment: The U.S. Department of 

Justice, FBI, Criminal Justice 

Information Systems (CJIS) commented 

that the final rule did not adequately 

address the role played by the state 

central record repositories and 

requested that CNCS revise the rule to 

specify that entities must submit 

fingerprints to the FBI through the state 

central record repository. 

Response: We agree and have 

amended the rule to reflect the process 

established by FBI CJIS to process the 

fingerprint-based FBI criminal history 

checks required by the SAA. State 

central record repositories are critical to 

the infrastructure established by FBI 

CJIS for the processing of national 

criminal history background checks. In 

its October 31, 2011 memorandum to 

state central record repositories on the 

implementation of the SAA, FBI CJIS 

stated that those organizations subject to 

the SAA (and this final rule) "must 

contact the state repository in the state 

of operation to determine if the 

organization can access national 

criminal history record information." In 

lieu of state statutory provisions, 

fingerprint-based state and national 

criminal history checks for CNCS 

grantees could be authorized by three 

federal legal authorities: the SAA, the 

National Child Protection Act, as 

amended by the Volunteers for Children 

Act, and Section 153 of the Adam Walsh 

Act. "Background checks conducted 

pursuant to the SAA must comply with 

certain criteria, to include fingerprints 

submitted via [a state central record 

repository], designation of a 

governmental agency to receive and 

screen the results of the record checks, 

and non-dissemination of the criminal 

history record information outside the 

receiving governmental department or 

related governmental agencies." 

The FBI CJIS guidance to state 

repositories stated that "each national 

service organization must coordinate 

with the [state central records 

repository] in the states of program 

operation/residence to establish 

procedures for performing state and 

national criminal history record 

checks." The guidance specified further 

that 

"[e]ach [* * * repository] must request a 

unique Integrated Automated Fingerprint 

Identification System (IAFIS) originating 

agency identifier (ORI) or designate an 

existing ORI for exclusive use under the 

SAA. The repository must coordinate 

requests for ORI issuance, or use of a 

designated ORI, with FBI CJIS Division for 

programming. All fingerprints submitted to 

the FBI CJIS Division under this authority 

must include the program-designated ORI 

and be populated with "Serve America Act" 

or "Serve America Act-Volunteer" as the 

reason fingerprinted (RFP)." 

The full text of the memorandum is 

available at http:! I 

www.nationalserviceresources.org/files/ 

fbi-memo-to-state-repositories-on-serveamerica-act-oct-31-11.pdf 

We believe that our State Commission 

partners, as well as state Departments 

on Aging, Child Welfare Agencies, and 

Education Agencies can be instrumental 

in engaging the state central record 

repositories to streamline the National 

Service Criminal History Check process 

for national service grantees operating 

in their states and ensure proper 

screening of individuals in covered 

positions and the full implementation of 

the SAA. 

Comment: We received comments 

regarding the potential discriminatory 

effects that the use of criminal history 

checks by grantee organizations may 

have on individuals' ability to 

participate in National Service. 

Response: The commenters identify 

an important issue. The use of criminal 

history records to exclude members and 

staff from Corporation-funded programs 

and activities may, in some 

circumstances, run afoul of federal civil 

rights laws. Grantees should recognize 

that they have a dual status under the 

Civil Rights Act of 1964, depending on 

the nature of their relationship with an 

individual. Grantees, as recipients of 

federal financial assistance, must 

comply with Title VI of the Civil Rights 

Act of 1964, 42 U.S.C. 2000d et seq., and 

its implementing regulations, 45 CFR 

1203.1 et seq., which prohibit 

discrimination in Corporation-funded 

programs and activities, including the 

selection and placement of volunteers 

and members, on the basis of race, color, 

and national origin. Grantees, as 

employers, must also comply with Title 

VII of the Civil Rights Act of 1964, 42 

U.S.C. 2000e et seq., which prohibits 

discrimination in employment 

decisions. The Equal Employment 

Opportunity Commission (EEOC) has 

issued guidance explaining when 

consideration of arrest and conviction 

records violates Title VII. See http:// 

www.eeoc.gov/laws/guidance/ 

arrest_conviction.cfm. As explained in 

the EEOC guidance, grantees should be 

mindful that arrests alone are mere 

allegations, and that actual criminal 

convictions (where there has been a 

formal adjudication by a finder of fact), 

or actual evidence of conduct 

underlying an arrest, are the relevant 

indicators of an individual's fitness, or 

in some cases, eligibility (i.e., murder), 

to serve with, or work for, a Corporation 
While efforts are made tQ keep information irl thi:; consolidated document curren0

t ple;;ise consult the P,rima,ry sourel(!s for the, most up-to-date information. 

Federal Register/Vol. 77, No. 194/Friday, ctober 5, 2012/Rules and Regulations 60929 

grantee. Grantees should ensure that 

their screening practices are narrowly 

tailored in a manner that complies with 

these federal nondiscrimination 

requirements, in addition to applicable 

state laws governing the consideration 

of criminal history records. 

Grantees also should be mindful that 

applicants have the right to review and 

challenge the results of the National 

Service Criminal History Check. 

Grantees are required by our regulations 

to safeguard an individual's personal 

information and give the individual the 

opportunity to challenge any adverse 

findings that result from the National 

Service Criminal History Check. 

Comment: We received comments 

requesting clarification of when the 

results of a National Service Criminal 

History Check make an individual 

ineligible to serve in a covered position. 

Response: The law prohibits an 

individual from serving in a national 

service program in four situations: (1) 

The individual refuses to consent to the 

criminal history check; (2) the 

individual makes a false statement in 

connection with the criminal history 

check; (3) the individual is registered or 

required to be registered as a sex 

offender; or (4) the individual has been 

convicted of murder as defined by 

federal law. If the National Service 

Criminal History Check returns results 

that implicate criteria other than those 

above, the grantee has the discretion, 

subject to any federal civil rights law 

and state law requirements, to decide 

whether or not the results of a criminal 

history background check disqualify an 

individual from service with the 

grantee. Grantees should consider the 

factors set forth in the EEOC's guidance 

under Title VII (http://www.eeoc.gov/ 

laws/guidance/arrest_ conviction.cfm), 

including the nature and gravity of the 

offense, the time that has passed since 

the conviction or completion of the 

sentence, and the nature of the position. 

Grantees should have written policies 

on their disqualification criteria and be 

consistent in how those criteria are 

applied to all individuals. 

In addition, grantees should be aware 

of federal reentry policy, which seeks to 

minimize unjustified collateral 

consequences on formerly incarcerated 

persons. Participation in national 

service programs funded by the 

Corporation could aid the successful 

reentry of formerly incarcerated persons 

into society. Therefore, barriers to 

participation in national service 

programs for those formerly 

incarcerated persons who are not 

statutorily ineligible to serve should be 

minimized as much as possible without 

putting program beneficiaries at genuine 

risk. 

Comment: We received comments 

expressing concern about many 

grantees' overall level of understanding 

or ability to interpret the results of a 

National Service Criminal History 

Check. 

Response: Grantees should be aware 

that, due to pending cases, state law 

restrictions, and resource issues, the 

information contained in databases and 

reports for criminal histories may be 

missing certain arrest and disposition 

information. Accordingly, grantees 

should obtain training, and implement 

best practices, in the interpretation and 

use of criminal records for screening 

participants and staff. We have required 

grantees to conduct National Service 

Criminal History Checks since 2007, 

and have always required that they treat 

applicants fairly. We reiterate that the 

grantee is responsible for obtaining the 

level of expertise necessary to 

understand the information received in 

response to the National Service 

Criminal History Check and use it in a 

fair manner that is consistent with our 

regulations and grant conditions. 

Information obtained from a National 

Service Criminal History Check is only 

one of many sources of information that 

is available about an individual. 

Comment: We received numerous 

comments on the proposed rule's 

requirement that National Service 

Criminal History Checks be repeated on 

individuals who serve consecutive 

terms of service with the same grantee 

when the break in service exceeds 30 

days. The comments suggested that in 

view of the time it takes to complete the 

newly-required fingerprint-based FBI 

criminal background check, a 30-day 

break in service requirement imposes an 

additional administrative burden on 

seasonal or academic-year programs or 

projects. 

Response: We agree with the 

commenters. The FBI fingerprint check 

takes longer than the process 

established under our 2007 rule and the 

SAA expands the number of individuals 

in covered positions. Balancing the 

administrative burden on grantees with 

the importance of proper screening, we 

determined that a longer break in 

service period is not unreasonable. 

Accordingly, the final rule reflects our 

decision to require that the National 

Service Criminal History Check be 

repeated if an individual's break in 

service exceeds 120 days, and also 

allows grantees to request approval for 

a longer break in service than 120 days, 

as long as the break does not exceed 180 

days. The request must describe the 

program's design, explain why the 

longer period is required, and 

demonstrate the establishment of 

adequate risk management controls for 

the extended break in service. We want 

to clarify that consecutive terms of 

service requires that the individual 

serves another term with the same 

grantee. Checks performed by one 

grantee on an individual may not be 

transferred to another grantee. When an 

individual begins service with a new 

grantee, that grantee is responsible for 

conducting a new National Service 

Criminal History Check. Because the 

NSOPW is a free and widely-available 

resource, we encourage grantees with 

program designs where breaks in service 

are anticipated to conduct a new 

nationwide NSOPW check after a break 

in service of any duration. 

Comment: We received comments 

seeking clarification about the status of 

individuals in covered positions who 

conducted the appropriate National 

Service Criminal History Check 

components when they began work or 

started service prior to April 21, 2011. 

Response: The Nationa1 Service 

Criminal History Check components of 

this rule apply to individuals in covered 

positions who begin work, or who start 

service, on or after, April 21, 2011. 

Grantees are responsible for ensuring 

that those individuals who began work, 

or who started service, prior to, April 

21, 2011, conducted the appropriate 

National Service Criminal History 

Check components required by the 

regulation that was in effect prior to that 

date. If individuals in covered positions 

who began work, or who started service 

prior to, April 21, 2011, subsequently 

have a break in service that exceeds 120 

days, or begins work or service with a 

different grantee, they must have a 

Check required by this final rule. If an 

individual serves consecutive terms of 

service in a covered position and does 

not have a break in service that exceeds 

120 days, then no additional National 

Service Criminal History Check is 

required as long as the original check is 

a compliant check for the covered 

position in which the individual will be 

serving or working following the break 

in service. 

Comment: We received numerous 

comments on the requirement that 

individuals working with vulnerable 

populations be accompanied while the 

components of their National Service 

Criminal History Check have been 

submitted, but not yet returned. 

Commenters suggested that we clarify 

what we mean by "accompaniment" 

and how to document it. 

Response: The purpose of the 

National Service Criminal History 

Check is to screen out those individuals 
While efforts are made tQ keep information irl thi:; consolidated document curren0

t ple;;ise consult the P,rima,ry sourel(!s for the, most up-to-date information. 

60930 Federal Register/Vol. 77, No. 194/Friday, ctober 5, 2012/Rules and Regulations 

who may pose a risk to the population 

being served. Accompaniment requires 

that an individual for whom the 

National Service Criminal History 

Check components are pending be, at all 

times, in the physical presence of (1) an 

authorized grantee representative who 

has been previously cleared for such 

access; (2) a family member or legal 

guardian of the vulnerable individual; 

or (3) an individual authorized by the 

nature of his or her profession to have 

recurring access to the vulnerable 

individual, such as an education or 

medical professional. Accompaniment 

provides grantees with the opportunity 

to place participants in service positions 

before the criminal history background 

check is complete. Supervision is 

insufficient because it doesn't provide 

the immediate oversight that would 

mitigate risk of a participant's improper 

conduct sought to be avoided by the 

National Service Criminal History 

Check. We have updated the rule to 

reflect more accurately our intent that 

accompaniment means that the 

individual must be in the physical 

presence of the accompanying 

individual. 

The Office of Grants Management will 

issue guidance to grantees prior to the 

effective date of this final rule on how 

to document compliance with the 

accompaniment requirements. 

Comment: We also received 

comments requesting clarification on 

how to apply the rule to individuals 

who reach the age of 18 during their 

service term. 

Response: A National Service 

Criminal History Check is required for 

individuals who are, or who will reach 

the age of, 18 or older at any time during 

their service term. The Check must be 

conducted in accordance with 2450.204, 

even if the individual is not yet 18 at the 

time service or work begins. The final 

rule reflects this clarification. 

Comment: Some comments identified 

areas in the proposed rule where the 

distinction between exceptions and 

alternative search procedures was 

unclear. Other commenters articulated 

specific challenges they faced in 

obtaining the required checks. 

Response: Since implementation of 

the original National Service Criminal 

History Check rule in 2007, we have 

evaluated and approved alternative 

search procedures when grantees 

submitted a written request for 

evaluation of a proposed alternative 

search procedure. This practice will 

continue under the new rule. The law 

also gives us the authority to exempt 

grantees from conducting the 

fingerprint-based FBI criminal history 

check required under the new rule for 

individuals in covered positions with 

recurring access to vulnerable 

populations. We acknowledge the 

confusion in the wording of the 

proposed rule. We have revised the final 

rule so that the requirements and 

procedures are clear. 

With respect to the comments we 

received regarding particular challenges 

grantees face under the new rule, we 

cannot address those here. Grantees 

with individual challenges that they 

believe will justify an exception from 

§ 2540.203(b)(2)(iii) should contact our 

Office of Grants Management or their 

Program Officer. 

Comment: We received comments 

requesting clarification of the "episodic 

access" exception from the fingerprintbased FBI criminal history background 

check requirement for individuals with 

recurring access to vulnerable 

populations. 

Response: A grantee does not need 

our approval to use the "episodic 

access" exception to the fingerprintbased FBI criminal history check 

requirement described in 

§ 2540.203(b)(2)(iii). This is a selfdetermination grantees will make using 

the guidance in this notice. We will 

continue to monitor grantees for 

compliance with the criminal history 

background check requirement, 

including reliance on the episodic 

access exception. 

Comment: CNCS received comments 

indicating that the proposed rule was 

unclear as to when approval from CNCS 

is required for individuals in covered 

positions with recurring access to 

vulnerable populations to be excepted 

from the fingerprint-based FBI criminal 

history check. 

Response: The final rule has been 

restructured with new headings to 

indicate clearly when CNCS approval is 

required. In the case of episodic access, 

grantees are responsible for using their 

best judgment to determine whether or 

not an individual's access to vulnerable 

populations is episodic. Approval from 

the CNCS Office of Grants Management 

is not required. However, reliance on 

the self-determined exception for 

"episodic access" will be monitored by 

CNCS as a material grant condition. 

Comment: We received numerous 

comments expressing concern about our 

ability to process requests for alternative 

search procedure approval and 

fingerprint-based FBI criminal history 

check exceptions in a timely manner 

and what grantees should do while their 

requests are pending. 

Response: The Office of Grants 

Management is prepared to process 

requests from grantees in a prompt 

manner. This function may not be 

delegated to a grantee, such as a State 

Commission. However, a State 

Commission may request approval for 

an alternative search procedure 

applicable to individual sub-grantees, or 

to all of their sub-grantees, if applicable. 

While results of the National Service 

Criminal History Check are pending, 

individuals in covered positions with 

recurring access to vulnerable 

populations must be accompanied. The 

final rule and preamble have been 

updated to clarify this requirement. 

V. Effective Dates and Implementation 

This final rule becomes effective 

January 1, 2013. However, the special 

rule for individuals in covered positions 

with recurring access to vulnerable 

populations will only apply to the 

selection of individuals in covered 

positions who began work or who 

started service with a grantee on, or 

after, April 21, 2011. Notwithstanding 

this date, grantees will have until 

January 1, 2013 to initiate the 

fingerprint-based FBI criminal history 

check or the state registr(ies) check(s), 

whichever has not already been 

initiated, for individuals in covered 

positions with recurring access to 

vulnerable populations. A grantee must 

be certain that it has already satisfied 

the requirement to conduct an NSOPW 

check on all individuals who are 

currently serving or working in covered 

positions. 

Because of the significant period of 

time between April 21, 2011, and the 

effective date of the regulation, CNCS 

has determined that, as a blanket good 

cause exception implemented by section 

2540.207(b)(2) of this final rule, an 

individual in a covered position with 

recurring access to vulnerable 

populations who began work or who 

started service with a grantee on or after 

April 21, 2011, and then departed the 

program or project before January 1, 

2013, must have complied with the rule 

effective on October 1, 2009 (i.e. had a 

Check that included the NSOPW 

component and either the State 

Criminal History registr(ies) component 

OR the fingerprint-based FBI national 

criminal history background check 

component, but not BOTH the State 

Criminal History registr(ies) component 

AND the fingerprint-based FBI national 

criminal history background check 

component). 

VI. Regulatory Procedures 

Executive Orders 12866 and Executive 

Order 13563 

Executive Orders 13563 and 12866 

direct agencies to assess all costs and 

benefits of available regulatory 
While efforts are made tQ keep information irl thi:; consolidated document curren0

t ple;;ise consult the P,rima,ry sourel(!s for the, most up-to-date information. 

Federal Register/Vol. 77, No. 194/Friday, ctober 5, 2012/Rules and Regulations 60931 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). Executive Order 13563 

emphasizes the importance of 

quantifying both costs and benefits, of 

reducing costs, of harmonizing rules, 

and of promoting flexibility. This rule 

has been designated a "significant 

regulatory action," although not 

economically significant, under section 

3(0 of Executive Order 12866. 

Accordingly, the rule has been reviewed 

by the Office of Management and 

Budget. 

Regulatory Flexibility Act 

As required by the Regulatory 

Flexibility Act of 1980 (5 U.S.C. 605 

(b)), the Corporation certifies that this 

rule, if adopted, will not have a 

significant economic impact on a 

substantial number of small entities. 

This regulatory action will not result in 

(1) an annual effect on the economy of 

$100 million or more; (2) a major 

increase in costs or prices for 

consumers, individual industries, 

federal, state, or local government 

agencies, or geographic regions; or (3) 

significant adverse effects on 

competition, employment, investment, 

productivity, innovation, or on the 

ability of United States-based 

enterprises to compete with foreignbased enterprises in domestic and 

export markets. Therefore, CNCS has 

not performed the initial regulatory 

flexibility analysis that is required 

under the Regulatory Flexibility Act (5 

U.S.C. 601 et seq.) for major rules that 

are expected to have such results. 

Unfunded Mandates 

For purposes of Title II of the 

Unfunded Mandates Reform Act of 

1995, 2 U.S.C. 1531-1538, as well as 

Executive Order 12875, this regulatory 

action does not contain any Federal 

mandate that may result in increased 

expenditures in either federal, state, 

local, or tribal governments in the 

aggregate, or impose an annual burden 

exceeding $100 million on the private 

sector. 

Paperwork Reduction Act 

In accordance with section 3507(j) of 

the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et seq.), the 

recordkeeping requirements included in 

this final rule have been submitted for 

emergency approval to the Office of 

Management and Budget (0MB). Due to 

an oversight, the Paperwork Reduction 

Act information was not included in the 

proposed rule and CNCS is requesting a 

short-term emergency clearance (0MB 

Control Number 3045-0145). In order to 

fairly evaluate whether a recordkeeping 

requirement should be approved by 

0MB, section 3506(c)(2)(A) of the 

Paperwork Reduction Act of 1995 

requires that we solicit comment on the 

following issues: 

• The need for the recordkeeping 

requirement and its usefulness in 

carrying out the proper functions of our 

agency. 

• The accuracy of our estimate of the 

information collection burden. 

• The quality, utility, and clarity of 

the information to be collected. 

• Recommendations to minimize the 

information collection burden on the 

affected public, including automated 

collection techniques. 

Under a separate notice, we will 

solicit public comment on each of these 

issues for the following sections of this 

document that contain recordkeeping 

requirements: 2540.205, .206. 

Executive Order 13132, Federalism 

Executive Order 13132, Federalism, 

prohibits an agency from publishing any 

rule that has Federalism implications if 

the rule either imposes substantial 

direct compliance costs on State and 

local governments and is not required 

by statute, or the rule preempts State 

law, unless the agency meets the 

consultation and funding requirements 

of section 6 of the Executive Order. The 

proposed rule does not have any 

Federalism implications, as described 

above. 

List of Subjects 

45 CFR Part 2510 

Grant programs-social programs, 

Volunteers. 

45 CFR Part 2522 

Grant programs-social programs, 

Reporting and recordkeeping 

requirements, Volunteers. 

45 CFR Part 2540 

Administrative practice and 

procedure, Grant programs-social 

programs, Reporting and recordkeeping 

requirements, Volunteers. 

45 CFR Part 2551 

Aged, Grant programs-social 

programs, Volunteers. 

45 CFR Part 2552 

Aged, Grant programs-social 

programs, Volunteers. 

For the reasons stated in the 

preamble, the Corporation for National 

and Community Service proposes to 

amend chapter XXV, title 45 of the Code 

of Federal Regulations as follows: 

PART 2510-OVERALL PURPOSES 

AND DEFINITIONS 

■ 1. The authority citation for Part 2510 

continues to read as follows: 

Authority: 42 U.S.C. 12511. 

■ 2. Amend§ 2510.20 by revising the 

definition of "program" to read as 

follows: 

§2510.20 Definitions. 

* * * * * 

Program. The term program, unless 

the context otherwise requires, and 

except when used as part of the term 

academic program, means a program 

described in the National and 

Community Service Act of 1990, as 

amended (42 U.S.C. 12501 et seq.), in 

section 112(a) (other than a program 

referred to in paragraph (3)(8) of that 

section), 118A, or 118(b)(1), or 

subsection (a), (b), or (c) of section 122, 

or in paragraph (1) or (2) of section 

152(b), section 198B, 198C, 198H, or 

198K, or an activity that could be 

funded under section 179A, 198, 1980, 

198P, or 199N. 

* * * * * 

PART 2522-AMERICORPS 

PARTICIPANTS, PROGRAMS, AND 

APPLICANTS 

■ 1. The authority citation for Part 2522 

continues to read as follows: 

Authority: 42 U.S.C. 12571-12595; 

12651b-12651d; E.O. 13331, 69 FR 9911. 

■ 2. Amend§ 2522.200 by removing the 

period at the end of paragraph (a)(3) and 

adding a semicolon in its place and 

adding paragraph (a)(4) to read as 

follows: 

§ 2522.200 What are the eligibility 

requirements for an AmeriCorps 

participant? 

(a) * * * 

(4) Satisfy the National Service 

Criminal History Check eligibility 

criteria pursuant to 45 CFR 2540.202. 

* * * * * 

■ 3. Revise§ 2522.205 to read as 

follows: 

§ 2522.205 To whom must I apply the 

National Service Criminal History Check 

eligibility criteria? 

You must apply the National Service 

Criminal History Check eligibility 

criteria to individuals serving in 

covered positions. A covered position is 

a position in which the individual 

receives an education award or a 

Corporation grant-funded living 

allowance, stipend, or salary. 
While efforts are made tQ keep information irl thi:; consolidated document curren0

t ple;;ise consult the P,rima,ry sourel(!s for the, most up-to-date information. 

60932 Federal Register/Vol. 77, No. 194/Friday, ctober 5, 2012/Rules and Regulations 

§ 2522.206 [Removed and Reserved] 

■ 4. Remove and reserve§ 2522.206. 

■ 5. Revise§ 2522.207 to read as 

follows: 

§ 2522.207 How do I determine an 

individual's eligibility to serve in a covered 

position? 

To determine an individual's 

eligibility to serve in a covered position, 

you must follow the procedures in part 

2540 of this chapter. 

PART 2540-GENERAL 

ADMINISTRATIVE PROVISIONS 

■ 6. The authority citation for part 2540 

continues to read as follows: 

Authority: E.O. 13331, 69 FR 9911; 18 

u.s.c. 506, 701, 1017; 42 u.s.c. 12653, 

12631-12637; 42 u.s.c. 5065. 

■ 7. Revise§ 2540.200 to read as 

follows: 

§2540.200 What does "you" mean in this 

section? 

As used in this section, "you" means 

a Corporation grantee or other entity 

subject to Corporation grant provisions. 

Unless the context otherwise requires, 

this includes, but is not limited to, 

recipients of federal financial assistance 

under grant programs defined in 

§ 2510.20 of this chapter as well as 

projects under the Senior Companion 

Program, the Foster Grandparent 

Program, and RSVP. 

■ 8. Revise§ 2540.201 to read as 

follows: 

§ 2540.201 To whom must I apply the 

National Service Criminal History Check 

eligibility criteria? 

You must apply the National Service 

Criminal History Check eligibility 

criteria to individuals serving in 

covered positions. A covered position is 

a position in which the individual 

receives an education award or a 

Corporation grant-funded living 

allowance, stipend, or salary. 

■ 9. Revise§ 2540.202 to read as 

follows: 

§ 2540.202 What eligibility criteria must I 

apply to a covered position in connection 

with the National Service Criminal History 

Check? 

In addition to the eligibility criteria 

you establish, an individual shall be 

ineligible to serve in a covered position 

if the individual-

(a) Refuses to consent to a criminal 

history check described in § 2540.203 of 

this chapter; 

(b) Makes a false statement in 

connection with a criminal history 

check described in § 2540.203 of this 

chapter; 

(c) Is registered, or is required to be 

registered, on a state sex offender 

registry or the National Sex Offender 

Registry; or 

(d) Has been convicted of murder, as 

defined in 18 U.S.C. 1111. 

■ 10. Revise§ 2540.203 to read as 

follows: 

§ 2540.203 What search components of 

the National Service Criminal History Check 

must I satisfy to determine an individual's 

eligibility to serve in a covered position? 

(a) Search procedure for individuals 

in covered positions who do not have 

recurring access to vulnerable 

populations. Unless the Corporation 

approves an alternative search 

procedure under § 2540.207 of this 

chapter, to determine an individual's 

eligibility to serve in a covered position, 

you must conduct and document a 

National Service Criminal History 

Check that consists of the following 

components: 

(1) A nationwide name-based search 

of the Department of Justice (DOJ) 

National Sex Offender Public Web site 

(NSOPW), and 

(2) Either: 

(i) A name- or fingerprint-based 

search of the official state criminal 

history registry for the state in which 

the individual in a covered position will 

be primarily serving or working and for 

the state in which the individual resides 

at the time of application; or 

(ii) Submission of fingerprints 

through a state central record repository 

for a fingerprint-based Federal Bureau of 

Investigation (FBI) national criminal 

history background check. 

(b) Search procedure for individuals 

in covered positions who have recurring 

access to vulnerable populations. (1) 

This rule applies to individuals who: 

(i) Begin working for, or who start 

service with, you on or after April 21, 

2011; 

(ii) Will be 18 years old or older at 

any time during their term of service; 

and 

(iii) Serve in a covered position that 

will involve recurring access to children 

age 17 years or younger, to individuals 

age 60 years or older, or to individuals 

with disabilities. 

(2) Unless the Corporation approves 

an alternative search procedure or an 

exception under § 2540.207 of this 

chapter, to determine the eligibility of 

an individual described in paragraph 

(b)(l) of this section you must conduct 

and document a National Service 

Criminal History Check that consists of 

the following components: 

(i) A nationwide name-based search of 

the Department of Justice (DOJ) National 

Sex Offender Public Web site (NSOPW); 

(ii) A name- or fingerprint-based 

search of the official state criminal 

history registry for the state in which 

the individual in a covered position will 

be primarily serving or working and for 

the state in which the individual resides 

at the time of application; and 

(iii) Submission of fingerprints 

through a state central record repository 

for a fingerprint-based FBI national 

criminal history background check. 

■ 11. Revise§ 2540.204 to read as 

follows: 

§ 2540.204 When must I conduct a 

National Service Criminal History Check on 

an individual in a covered position? 

(a) Timing of the National Service 

Criminal History Check Components. (1) 

You must conduct and review the 

results of the nationwide NSOPW check 

required under§ 2540.203 before an 

individual in a covered position begins 

work or starts service. 

(2) You must initiate state registry or 

FBI criminal history checks required 

under § 2540.203 before an individual 

in a covered position begins work or 

starts service. You may permit an 

individual in a covered position to 

begin work or start service pending the 

receipt of results from state registry or 

FBI criminal history checks as long as 

the individual is not permitted access to 

children age 17 years or younger, to 

individuals age 60 years or older, or to 

individuals with disabilities, without 

being in the physical presence of an 

appropriate individual, as described in 

§ 2540.205(g) of this chapter. 

(b) Consecutive terms. If an individual 

serves consecutive terms of service in a 

covered position and does not have a 

break in service that exceeds 120 days, 

then no additional National Service 

Criminal History Check is required, as 

long as the original check is a compliant 

check for the covered position in which 

the individual will be serving or 

working following the break in service. 

If your program or project is designed 

with breaks in service over 120 days, 

but less than 180 days between 

consecutive terms, you may request 

approval for a break in service ofup to 

180 days before a new National Service 

Criminal History Check is required. 

Your request must describe the overall 

program design, explain why the longer 

period is reasonable, and demonstrate 

that you have established adequate risk 

management controls for the extended 

break in service. 

■ 12. Revise§ 2540.205 to read as 

follows: 
While efforts are made tQ keep inforrryation irJ thi:; consolidated docuroel)t curren0

t ple;;ise consult the WRima,ry sourel(!sRfor the, m1qst up-to-date iWBf~~on. 

Federal Register/Vol. 77, No. 194/Fnday, ctober 5, 2012, ules and egula 10ns 

§ 2540.205 What procedures must I follow 

in conducting a National Service Criminal 

History Check for a covered position? 

You are responsible for following 

these procedures: 

(a) Verify the individual's identity by 

examining the individual's governmentissued photo identification card, such as 

a driver's license; 

(b) Obtain prior, written authorization 

from the individual for the State registry 

check, for the FBI criminal history 

check, and for the appropriate sharing of 

the results of the checks within the 

program. Prior written authorization 

from the individual is not required to 

conduct the nationwide NSOPW check; 

(c) Document the individual's 

understanding that selection into the 

program is contingent upon the 

organization's review of the individual's 

National Service Criminal History 

Check component results, if any; 

( d) Ensure that screening practices 

comply with federal civil rights laws, 

including Titles VI and VII of the Civil 

Rights Act of 1964 (and the 

Corporation's implementing regulations 

under Title VI); 

(e) Provide a reasonable opportunity 

for the individual to review and 

challenge the factual accuracy of a result 

before action is taken to exclude the 

individual from the position; 

(f) Provide safeguards to ensure the 

confidentiality of any information 

relating to the criminal history check, 

consistent with authorization provided 

by the applicant; and 

(g) Ensure that an individual, for 

whom the results of a required state or 

FBI criminal history registry check are 

pending, is not permitted to have access 

to children age 17 years or younger, to 

individuals age 60 years or older, or to 

individuals with disabilities without 

being in the physical _presence of: 

(1) Your authorized representative 

who has previously been cleared for 

such access; 

(2) A family member or legal guardian 

of the vulnerable individual; or 

(3) An individual authorized, because 

of his or her profession, to have 

recurring access to the vulnerable 

individual, such as an education or 

medical professional. 

(h) Unless specifically approved by 

the Corporation, you may not charge an 

individual for the cost of any 

component of a National Service 

Criminal History Check. 

■ 13. Revise§ 2540.206 to read as 

follows: 

§ 2540.206 What documentation must I 

maintain regarding a National Service 

Criminal History Check for a covered 

position? 

You must: 

(a) Document in writing that you 

verified the identity of the individual in 

a covered position by examining the 

individual's government-issued photo 

identification card, and that you 

conducted the required checks for the 

covered position; and 

(b) Maintain the results, or a results 

summary issued by a State or Federal 

government body, of the NSOPW check 

and the other components of each 

National Service Criminal History 

Check, unless precluded from doing so 

by State or Federal law or regulation. 

You must also document in writing that 

an authorized grantee representative 

considered the results of the National 

Service Criminal History Check in 

selecting the individual. 

■ 14. Revise§ 2540.207 to read as 

follows: 

§ 2540.207 When may I follow an 

alternative search procedure or be excepted 

from a requirement in conducting a National 

Service Criminal History Check for a 

covered position? 

(a) Alternative search procedure. (1) If 

you submit a written request to the 

Corporation's Office of Grants 

Management, the Corporation will 

consider approving an alternative search 

procedure: 

(i) If you demonstrate that you are 

prohibited or otherwise precluded 

under state law from complying with a 

Corporation requirement relating to the 

National Service Criminal History 

Check, or 

(ii) If you can obtain substantially 

equivalent or better information through 

an alternative search procedure. 

(2) The Office of Grants Management 

will review the alternative search 

procedure to ensure that it: 

(i) Verifies the identity of the 

individual; and 

(ii) Includes a search of an alternative 

criminal database that is sufficient to 

identify the existence or absence of 

criminal offenses. 

(b) Exceptions to Criminal History 

Check requirements for individuals with 

recurring access to vulnerable 

populations. (1) Exception that does not 

require prior Corporation approvalEpisodic Access. (i) For the purposes of 

this section, an individual's access to a 

vulnerable population is considered to 

be episodic in nature if the service is not 

a regular, scheduled, and anticipated 

component of the individual's position 

description. 

(ii) You are not required to conduct 

the fingerprint-based FBI criminal 

history check on individuals in covered 

positions with recurring access to 

vulnerable populations, as described in 

§ 2540.203 of this chapter, when the 

individual's access to a vulnerable 

population is episodic in nature or for 

a 1-day period. 

(iii) No prior approval is required 

from the Corporation for you to apply 

this exception. You must make and 

document a determination that the 

individual's access to vulnerable 

populations is episodic, as defined by 

paragraphs (b)(l)(i) and (ii) of this 

section. 

(2) Exceptions that require prior 

approval of the Corporation. You are 

not required to conduct the fingerprintbased FBI criminal history check on 

individuals in covered positions with 

recurring access to vulnerable 

populations, as described in § 2540.203 

of this chapter, if you demonstrate and 

the Corporation determines in writing 

that: 

(i) Complying with 

§ 2540.203(b)(2)(iii) of this chapter is 

cost-prohibitive; 

(ii) You are not authorized, or are 

otherwise unable, under state or federal 

law, to access the national criminal 

history background check system of the 

FBI; or 

(iii) That you are exempt from the 

requirement in§ 2540.203(b)(2)(iii) of 

this chapter for good cause. 

PART 2551-SENIOR COMPANION 

PROGRAM 

■ 15. The authority citation for part 

2551 continues to read as follows: 

Authority: 42 U.S.C. 4950 et seq.; 42 U.S.C. 

12651b-12651d; E.O. 13331, 69 FR 9911. 

■ 16. Amend§ 2551.23 by adding 

paragraph (1) to read as follows: 

§ 2551.23 What are the sponsor's program 

responsibilities? 

* * * * * 

(1) Conduct criminal history checks on 

all Senior Companions and Senior 

Companion grant-funded employees 

who start service, or begin work, in your 

program after November 23, 2007, in 

accordance with the National Service 

Criminal History Check requirements in 

45 CFR 2540.200 through 2540.207. 

§§ 2551.26 through 2551.32 [Removed and 

Reserved]. 

■ 17. Remove and reserve§§ 2551.26 

through 2551.32. 

PART 2552-FOSTER GRANDPARENT 

PROGRAM 

■ 18. The authority citation for Part 

2552 continues to read as follows: 

Authority: 42 U.S.C. 4950 et seq., 42 

U.S.C. 12651b-12651d; E.O. 13331, 69 FR 

9911 
While efforts are made tQ keep information irl thi:; consolidated document curren0

t ple;;ise consult the P,rima,ry sourel(!s for the, most up-to-date information. 

60934 Federal Register/Vol. 77, No. 194/Friday, ctober 5, 2012/Rules and Regulations 

■ 19. Amend§ 2552.23 by adding 

paragraph (1) to read as follows: 

§ 2552.23 What are a sponsor's program 

responsibilities? 

* * * * * 

(1) Conduct criminal history checks on 

all Foster Grandparents and Foster 

Grandparent grant-funded employees 

who start service, or begin work, in your 

program after November 23, 2007, in 

accordance with the National Service 

Criminal History Check requirements in 

45 CFR 2540.200 through 2540.207. 

§§ 2552.26 through 2552.32 [Removed and 

Reserved] 

■ 20. Remove and reserve§§ 2552.26 

through 2552.32. 

Dated: September 28, 2012. 

Valerie Green, 

General Counsel. 

[FR Doc. 2012-24467 Filed 10-4-12; 8:45 am] 

BILLING CODE 6050-28-P 

FEDERAL COMMUNICATIONS 

COMMISSION 

47 CFR Part 0 

[CG Docket No. 12-39; DA 12-1545] 

Termination of Certain Proceedings as 

Dormant 

AGENCY: Federal Communications 

Commission. 

ACTION: Final rule; termination of 

proceedings. 

SUMMARY: In this document, the 

Commission, via the Consumer and 

Governmental Affairs Bureau (CGB) 

terminates, as dormant, certain docketed 

Commission proceedings. Termination 

of these inactive proceedings furthers 

the Commission's organizational goals 

of increasing the efficiency of its 

decision-making, modernizing the 

agency's processes in the digital age, 

and enhancing the openness and 

transparency of Commission 

proceedings for practitioners and the 

public. 

DATES: Effective October 5, 2012. 

ADDRESSES: Federal Communications 

Commission, 445 12th Street SW., 

Washington, DC 20554. 

FOR FURTHER INFORMATION CONTACT: 

Deborah Broderson, Consumer and 

Governmental Affairs Bureau at (202) 

418-0652, or email: 

Deborah.Broderson@fcc.gov. 

SUPPLEMENTARY INFORMATION: This is a 

synopsis of the Commission's Order, 

Termination of Certain Proceedings as 

Dormant, document DA 12-1545, 

adopted September 27, 2012 and 

released on September 27, 2012, in CG 

Docket No. 12-39. On June 3, 2011, the 

Commission sought comment on 

whether certain listed docketed 

Commission proceedings should be 

terminated as dormant. See 76 FR 

35892, June 20, 2011. On September 30, 

2011, in a subsequent action, the 

Commission terminated, as dormant, 

certain docketed Commission 

proceedings. See 76 FR 70902, 

November 16, 2011. On February 15, 

2012, the Commission sought comment 

on whether additional docketed 

Commission proceedings should be 

terminated as dormant. See 77 FR 

13322, March 6, 2012. The full text of 

document DA 12-1545 and copies of 

any subsequently filed documents in 

this matter will be available for public 

inspection and copying during regular 

business hours at the FCC Reference 

Information Center, Portals II, 445 12th 

Street SW., Room CY-A257, 

Washington, DC 20554. Document DA 

12-1545 and copies of subsequently 

filed documents in this matter may also 

be purchased from the Commission's 

duplicating contractor, Best Copying 

and Printing, Inc. (BCPI), at Portals II, 

445 12th Street SW., Room CY-B402, 

Washington, DC 20554. Customers may 

contact BCPI at its Web site, 

www.bcpiweb.com, or by calling (202) 

488-5300. Document DA 12-1545 can 

also be downloaded in Word or Portable 

Document Format (PDF) at: http:// 

hraunfoss.fcc.gov/edocs _public/ 

attachmatch/DA-12-1545A1.doc, or 

http://hraunfoss.fcc.gov/edocs _public/ 

attachmatch/DA-12-1545A1.pdf. 

To request materials in accessible 

formats for people with disabilities 

(Braille, large print, electronic files, 

audio format), send an email to 

fcc504@fcc.gov or call the Consumer 

and Governmental Affairs Bureau at 

(202) 418-0530 (voice), (202) 418-0432 

(TTY). 

Final Paperwork Reduction Act of 1995 

Analysis 

This document does not contain 

information collection requirements 

subject to the Paperwork Reduction Act 

of 1995, Public Law 104-13. In addition, 

therefore, it does not contain any 

information collection burden for small 

business concerns with fewer than 25 

employees, pursuant to the Small 

Business Paperwork Relief Act of 2002, 

Public Law 107-198, see 44 U.S.C. 

3506(c)(4). 

Synopsis 

1. On February 4, 2011, the 

Commission released Amendment of 

Certain of the Commission's Part 1 

Rules of Practice and Procedure and 

Part O Rules of Commission 

Organization, Report and Order, FCC 

11-16, in CG Docket No. 11-44, 

published at 76 FR 24383, May 2, 2011 

(Procedure Order), which revised 

portions of its Part 1-Practice and 

Procedures and Part a-Organizational 

rules. The amendment of§ 0.141 of the 

Commission's organizational rules 

delegated authority to the Chief, CGB to 

conduct periodic review of all open 

dockets with the objective of 

terminating those that were inactive. 

The Commission stated that termination 

of such proceedings also will include 

the dismissal as moot of any pending 

petition, motion, or other request for 

relief in the terminated proceeding that 

is procedural in nature or otherwise 

does not address the merits of the 

proceeding. On February 15, 2012, the 

Commission released Termination of 

Certain Proceedings as Dormant, Public 

Notice, DA 12-220, CG Docket No. 12-

39, published at 77 FR 13322, March 6, 

2011 (Termination Public Notice), 

which identified those dockets that 

could potentially be terminated and 

provided interested parties the 

opportunity to file comments on these 

proposed terminations. Based upon 

CGB's review of the two comments 

received in response to the Termination 

Public Notice, and for the reasons given 

below, CGB hereby terminates the 

proceedings that are listed in the 

Attachment to DA 12-1545, which were 

previously listed in DA 12-220. See 

http://hraunfoss.fcc.gov/edocs _public/ 

attachmatch/DA-12-220A1.doc. 

2. CGB received two comments 

requesting that particular proceedings 

noted in the Termination Public Notice 

remain open. Based upon CGB's review 

of these comments, for the reasons 

noted below, CGB rejects the request of 

the New Jersey Broadcasters Association 

(NJBA) to retain RM-11099. Based on 

the request of the Office of 

Communication of the United Church of 

Christ, Inc., National Hispanic Media 

Coalition, Campaign Legal Center, 

Media Access Project, Benton 

Foundation, and Free Press 

(collectively, UCC), and our further 

evaluation, MB Docket No. 05-6 will 

remain open and will not be terminated 

at this time. On our own motion as 

described below, CGB has also 

determined not to terminate two 

additional proceedings listed in the 

Termination Public Notice. 

3. NJBA asks that we maintain as 

active RM-11099, which had been 

initiated by the May 27, 2004 filing of 

NJBA's Petition entitled "In the Matter 

of the Commissions' Rules to Protect 

New Jersey Listeners from FM