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[House Report 107-521]
[From the U.S. Government Publishing Office]

107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     107-521

======================================================================

 
                      CITIZEN SERVICE ACT OF 2002

                                _______
                                

 June  20, 2002.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Boehner, from the Committee on Education and the Workforce, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 4854]

      [Including cost estimate of the Congressional Budget Office]

      The Committee on Education and the Workforce, to whom was 
referred the bill (H.R. 4854) to reauthorize and reform the 
national service laws, having considered the same, report 
favorably thereon with an amendment and recommend that the bill 
as amended do pass.
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Citizen Service Act 
of 2002''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

 TITLE I--AMENDMENTS TO THE NATIONAL AND COMMUNITY SERVICE ACT OF 1990

Sec. 1001. References.

       Subtitle A--Amendments to Subtitle A (General Provisions)

Sec. 1101. Purposes of Act.
Sec. 1102. Definitions.

        Subtitle B--Amendments to Subtitle B (Service-Learning)

Sec. 1201. School-based allotments.
Sec. 1202. Higher education provisions.
Sec. 1203. Community-based programs, training, and other initiatives. 
Sec. 1204. Service-learning clearinghouse.

 Subtitle C--Amendments to Subtitle C (National Service Trust Program)

Sec. 1301. Prohibition on grants to Federal agencies; limits on 
Corporation costs.
Sec. 1302. E-Corps and technical amendments to types of programs.
Sec. 1303. Types of positions.
Sec. 1304. Training and technical assistance.
Sec. 1305. Assistance to State Commissions; Challenge grants.
Sec. 1306. Allocation of assistance to States and other eligible 
entities.
Sec. 1307. Additional authority.
Sec. 1308. State selection of programs.
Sec. 1309. Consideration of applications.
Sec. 1310. Description of participants.
Sec. 1311. Reference to Federal agency.
Sec. 1312. Terms of service.
Sec. 1313. Adjustments to living allowance.

   Subtitle D--Amendments to Subtitle D (National Service Trust and 
           Provision of National Service Educational Awards)

Sec. 1401. Availability of funds in the National Service Trust.
Sec. 1402. Individuals eligible to receive a National Service 
Educational Award from the Trust.
Sec. 1403. Determination of the amount of National Service Educational 
Awards.
Sec. 1404. Disbursement of National Service Educational Awards.
Sec. 1405. Additional uses of National Service Trust amounts.

   Subtitle E--Amendments to Subtitle E (National Civilian Community 
                                 Corps)

Sec. 1501. Purpose.
Sec. 1502. Program components.
Sec. 1503. Eligible participants.
Sec. 1504. Summer national service program.
Sec. 1505. Team leaders.
Sec. 1506. Consultation with State Commissions.
Sec. 1507. Permanent cadre.
Sec. 1508. Contract and grant authority.
Sec. 1509. Other departments.
Sec. 1510. Repeal of authority for advisory board and funding 
limitation.
Sec. 1511. Definitions.
Sec. 1512. Emergency response corps.
Sec. 1513. Terminology.

    Subtitle F--Amendments to Subtitle F (Administrative Provisions)

Sec. 1601. Family and medical leave.
Sec. 1602. Additional prohibitions on use of funds.
Sec. 1603. Notice, hearing, and grievance procedures.
Sec. 1604. Resolution of displacement complaints.
Sec. 1605. State commissions on national and community service.
Sec. 1606. Evaluation and accountability.
Sec. 1607. Technical amendment.
Sec. 1608. Additional administrative provisions.

  Subtitle G--Amendments to Subtitle G (Corporation for National and 
                           Community Service)

Sec. 1701. Terms of office.
Sec. 1702. Board of Directors authorities and duties.
Sec. 1703. Peer reviewers.
Sec. 1704. Non-voting members; Personal services contracts.
Sec. 1705. Donated services.

                  Subtitle H--Amendments to Subtitle H

Sec. 1801. Technical amendments to subtitle H.
Sec. 1802. Repeal of special demonstration project.

                   Subtitle I--Additional Authorities

Sec. 1901. Senior service scholarships.
Sec. 1902. America's Promise: The Alliance for Youth.

           Subtitle J--Title III (Points of Light Foundation)

Sec. 1911. Purpose.
Sec. 1912. Board of Directors.
Sec. 1913. Grants to the Foundation.

  Subtitle K--Amendments to Title V (Authorization of Appropriations)

Sec. 1921. Authorization of appropriations.

   TITLE II--AMENDMENTS TO THE DOMESTIC VOLUNTEER SERVICE ACT OF 1973

Sec. 2001. References.

   Subtitle A--Amendments to Title I (National Volunteer Antipoverty 
                               Programs)

Sec. 2101. Purpose.
Sec. 2102. Purpose of the VISTA program.
Sec. 2103. Applications.
Sec. 2104. Terms and periods of service.
Sec. 2105. Sections repealed.
Sec. 2106. University Year for VISTA program.
Sec. 2107. Conforming amendment.

  Subtitle B--Amendments to Title II (National Senior Volunteer Corps)

Sec. 2201. Change in name.
Sec. 2202. Purpose.
Sec. 2203. Grants and contracts for volunteer service projects.
Sec. 2204. Foster Grandparent Program grants.
Sec. 2205. Senior Companion Program grants.
Sec. 2206. Technical amendments.
Sec. 2207. Programs of national significance.
Sec. 2208. Additional provisions.

  Subtitle C--Amendments to Title IV (Administration and Coordination)

Sec. 2301. Nondisplacement.
Sec. 2302. Definitions.
Sec. 2303. Protection against improper use.
Sec. 2304. Income verification.
Sec. 2305. Sections repealed.

  Subtitle D--Amendments to Title V (Authorization of Appropriations)

Sec. 2401. Authorization of appropriations for VISTA and other 
purposes.
Sec. 2402. Authorization of appropriations for National Senior Service 
Corps.
Sec. 2403. Administration and coordination.

                  TITLE III--AMENDMENTS TO OTHER LAWS

Sec. 3101. Technical Amendment to Inspector General Act.

          TITLE IV--TECHNICAL AMENDMENTS TO TABLES OF CONTENTS

Sec. 4101. Amendments to the National and Community Service Act of 1990 
table of contents.
Sec. 4102. Amendments to the Domestic Volunteer Service Act of 1973 
table of contents.

             TITLE V--EFFECTIVE DATE AND SENSE OF CONGRESS

Sec. 5101. Effective date.
Sec. 5102. Service assignments and agreements.
Sec. 5103. Sense of Congress.
Sec. 5104. Recruitment and application materials in languages other 
than English.

   TITLE I--AMENDMENTS TO NATIONAL AND COMMUNITY SERVICE ACT OF 1990

SEC. 1001. REFERENCES.

  Except as otherwise specifically provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a provision, the reference shall be considered to be made to a 
provision of the National and Community Service Act of 1990 (42 U.S.C. 
12501 et seq.).

       Subtitle A--Amendments to Subtitle A (General Provisions)

SEC. 1101. PURPOSES OF ACT.

  Section 2(b) (42 U.S.C. 12501(b)) is amended--
          (1) in paragraph (7), by striking ``citizens; and'' and 
        inserting ``citizens;'';
          (2) in paragraph (8), by striking the period and inserting a 
        semicolon; and
          (3) by adding at the end the following:
          ``(9) expand and strengthen service-learning programs 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 
        throughout the United States;
          ``(10) support efforts to make the nonprofit sector more 
        effective in meeting the unmet human, educational, 
        environmental, and public safety needs of the United States; 
        and
          ``(11) assist in coordinating and strengthening Federal and 
        other citizen service opportunities, including opportunities 
        for participation in homeland security preparedness and 
        response, including training for limited duration national 
        service as law enforcement officers, firefighters and rescue 
        personnel, search and rescue personnel, emergency medical 
        service workers, and disaster services workers, other areas of 
        public and social service, and international service.''.

SEC. 1102. DEFINITIONS.

  Section 101 (42 U.S.C. 12511) is amended--
          (1) in paragraph (5), by striking ``church or other'';
          (2) in paragraph (13), by striking ``section 101(a) of the 
        Higher Education Act of 1965'' and inserting ``sections 101(a) 
        and 102(a)(1) of the Higher Education Act of 1965'';
          (3) in paragraph (17)(B), by striking ``program in which the 
        participant is enrolled'' and inserting ``organization 
        receiving assistance under the nationalservice laws through 
which the participant is enrolled in an approved national service 
position''; and
          (4) in paragraph (21)(B)--
                  (A) by striking ``section 602(a)(1)'' and inserting 
                ``section 602(3)''; and
                  (B) by striking ``20 U.S.C. 1401(a)(1)'' and 
                inserting ``20 U.S.C. 1401(3)''.

        Subtitle B--Amendments to Subtitle B (Service-Learning)

SEC. 1201. SCHOOL-BASED ALLOTMENTS.

  Part I of subtitle B of title I (42 U.S.C. 12521 et seq.) is amended 
to read as follows:

        ``PART I--PROGRAMS FOR ELEMENTARY AND SECONDARY STUDENTS

``SEC. 111. ASSISTANCE TO STATES 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, United States territories, 
and Indian tribes to pay for the Federal share of--
          ``(1) planning and building the capacity within the State to 
        implement service-learning programs that are based principally 
        in elementary and secondary schools, including--
                  ``(A) providing training for teachers, supervisors, 
                personnel from community-based agencies (particularly 
                with regard to the utilization 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 student academic 
                achievement standards, to be integrated into academic 
                programs, including an age-appropriate learning 
                component that provides participants an opportunity to 
                analyze and apply their service experiences;
                  ``(C) forming local partnerships described in 
                paragraph (2) or (4) to develop school-based service-
                learning programs in accordance with this part;
                  ``(D) devising appropriate methods for research and 
                evaluation of the educational value of service-learning 
                and the effect of service-learning activities on 
                communities; and
                  ``(E) 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;
          ``(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 of Federal funds by State educational 
        agencies 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--
                                  ``(I) has a demonstrated expertise in 
                                the provision of services to meet unmet 
                                human, education, environmental, or 
                                public safety needs; and
                                  ``(II) will make projects available 
                                for participants, who shall be 
                                students; and
                          ``(ii) may include a private for-profit 
                        business or private elementary or secondary 
                        school;
          ``(3) planning of school-based service-learning programs, 
        through distribution by State educational agencies of Federal 
        funds made available under this part to local educational 
        agencies, which planning may include paying for the cost of--
                  ``(A) the salaries and benefits of service-learning 
                coordinators; or
                  ``(B) the recruitment, training, supervision, and 
                placement of service-learning coordinators who may be 
                participants in a program under subtitle C or receive a 
                national service educational award under subtitle D,
        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); or
          ``(4) implementing, operating, or expanding school-based 
        service-learning programs to utilize service-learning to 
        improve the education of students, through distribution by 
        State educational agencies of Federal funds made available 
        under this part to--
                  ``(A) local educational agencies;
                  ``(B) public or private nonprofit organizations;
                  ``(C) other educational agencies; or
                  ``(D) partnerships or combinations of local 
                educational agencies and entities described in 
                subparagraphs (B) and (C).
  ``(b) Duties of Service-Learning Coordinator.--A service-learning 
coordinator referred to in paragraph (2) or (3) of subsection (a) shall 
provide services that may include--
          ``(1) providing technical assistance and information to, and 
        facilitating the training of, teachers who want to use service-
        learning in their classrooms;
          ``(2) assisting local partnerships described in subsection 
        (a) in the planning, development, and execution of service-
        learning projects; and
          ``(3) carrying out such other duties as the recipient of 
        assistance under this part may determine to be appropriate.
  ``(c) Related Expenses.--An entity that receives financial assistance 
under this part 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.

``SEC. 112. ALLOTMENTS.

  ``(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 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.--After reserving amounts under 
subsection (a), the Corporation shall use the remainder of the funds 
appropriated to carry out this part for any fiscal year as follows:
          ``(1) Allotments.--
                  ``(A) 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 of 
                all States.
                  ``(B) Allocation 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. 2711 et 
                seq.) or its successor authority bears to such 
                allocations to all States.
          ``(2) Definition.--Notwithstanding section 101(26), for 
        purposes of this subsection, the term `State' means each of the 
        several States, the District of Columbia, and the Commonwealth 
        of Puerto Rico.
  ``(c) Reallotment.--If the Corporation determines that the allotment 
of a State or Indian tribe under this section will not be required for 
a fiscal year because the State or Indian tribe does not submit an 
application for the allotment under section 113 that meets the 
requirements of such section and such other requirements as the Chief 
Executive Officer may determine to be appropriate, the Corporation 
shall make any remainder of such allotment available for reallotment to 
such other States and Indian tribes, with approved applications 
submitted under section 113, as the Corporation may determine to be 
appropriate.

``SEC. 113. APPLICATIONS.

  ``An application for an allotment under this part shall include--
          ``(1) a proposal for a 3-year plan promoting service-
        learning, 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;
          ``(2) information, when applicable, about the applicant's 
        efforts to--
                  ``(A) include any opportunities for students enrolled 
                in schools or other programs of education providing 
                elementary or secondary education underState law to 
participate in service-learning programs and ensure that such service-
learning programs include opportunities for such students to serve 
together;
                  ``(B) involve participants in the design and 
                operation of the program;
                  ``(C) promote service-learning in areas of greatest 
                need, including low-income areas;
                  ``(D) ensure that students of different ages, races, 
                sexes, ethnic groups, disabilities, and economic 
                backgrounds have opportunities to serve together; and
                  ``(E) otherwise integrate service opportunities into 
                the academic program of the participants; and
          ``(3) assurances that the applicant will comply with the 
        nonduplication and nondisplacement requirements of section 177 
        and the grievance procedures required by section 176.

``SEC. 114. CONSIDERATION OF APPLICATIONS.

  ``In considering applications under this part, the Corporation shall 
use criteria that include those approved by the Board of Directors.

``SEC. 115. FEDERAL, STATE, AND LOCAL CONTRIBUTIONS.

  ``(a) Federal Share.--
          ``(1) In general.--The Federal share of the cost of carrying 
        out a program for which a grant is made under this part may not 
        exceed 50 percent of the total cost of the program.
          ``(2) Non-federal contribution.--In providing for the 
        remaining share of the cost of carrying out such a program, 
        each recipient of 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; and
                  ``(B) may provide for such share through State 
                sources or local sources.
  ``(b) Waiver.--The Chief Executive Officer may waive the requirements 
of subsection (a) in whole or in part with respect to any such 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.

``SEC. 116. LIMITATIONS ON USES OF FUNDS.

  ``Not more than 5 percent of the amount of assistance received by an 
applicant in a fiscal year may be used to pay for administrative costs, 
in accordance with such standards as the Corporation may issue.''.

SEC. 1202. HIGHER EDUCATION PROVISIONS.

  Section 119 (42 U.S.C. 12561) is amended by striking subsections (c) 
through (g) and inserting the following:
  ``(c) Special Consideration.--To the extent practicable, the 
Corporation shall give special consideration to applications submitted 
by Historically Black Colleges and Universities, Hispanic-serving 
institutions, and Tribal Colleges and Universities.
  ``(d) Federal, State, and Local Contributions.--
          ``(1) Federal share.--
                  ``(A) In general.--The Federal share of the cost of 
                carrying out a program for which a grant is made under 
                this part may not exceed 50 percent of the total cost 
                of the program.
                  ``(B) Non-federal contribution.--In providing for the 
                remaining share of the cost of carrying out such a 
                program, each recipient of a grant 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.
          ``(2) Waiver.--The Chief Executive Officer may waive the 
        requirements of subsection (a) in whole or in part with respect 
        to any such 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.
  ``(e) Application for Grant.--
          ``(1) Submission.--To receive a grant or enter into a 
        contract under this part, an applicant shall prepare, submit to 
        the Corporation, and obtain approval of, an application at such 
        time, in such manner, and containing such information and 
        assurances as the Corporation may reasonably require. In 
        requesting applications for 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 grievance procedures 
                        required by section 176; and
                  ``(B) such other assurances as the Chief Executive 
                Officer may reasonably require.
  ``(f) Priority.--In making grants and entering into contracts under 
subsection (b), the Corporation shall give priority to applicants that 
submit applications containing proposals that--
          ``(1) demonstrate the commitment of the institution of higher 
        education, 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;
          ``(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;
                  ``(ii) a local government agency; or
                  ``(iii) a non-profit entity that serves or involves 
                school-age youth or older adults; and
                  ``(C) a student organization;
          ``(5) demonstrate community involvement in the development of 
        the proposal;
          ``(6) describe research designed to identify best practices 
        and other methods to improve service-learning;
          ``(7) specify that the institution will use such assistance 
        to strengthen the service infrastructure in institutions of 
        higher education; or
          ``(8) with respect to projects involving delivery of 
        services, specify projects that involve leadership development 
        of school aged youth.
  ``(g) Definition.--Notwithstanding section 101(29), 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.
  ``(h) Federal Work-Study.--To be eligible for assistance under this 
part, an institution of higher education must demonstrate that it meets 
the minimum requirements under section 443(b)(2)(B) of the Higher 
Education Act of 1965 (42 U.S.C. 2753(b)(2)(B)) relating to the 
participation of Federal Work-Study students in community service 
activities, or has received a waiver of those requirements from the 
Secretary of Education.''.

SEC. 1203. COMMUNITY-BASED PROGRAMS, TRAINING, AND OTHER INITIATIVES.

  Subtitle B of title I (42 U.S.C. 12521 et seq.) is amended by adding 
after part II the following new part:

 ``PART III--COMMUNITY-BASED PROGRAMS, TRAINING, AND OTHER INITIATIVES

``SEC. 120. COMMUNITY-BASED PROGRAMS, TRAINING, AND OTHER INITIATIVES.

  ``(a) Methods of Supporting Activities.--From the funds appropriated 
to carry out this part for a fiscal year, the Corporation may make 
grants to, or enter into contracts or cooperative agreements with, 
eligible entities.
  ``(b) Eligible Entities.--Eligible entities under this part are 
public or private nonprofit organizations, State education agencies, 
State commissions on national and community service, institutions of 
higher education, and consortia of such entities.
  ``(c) Authorized Activities.--Funds appropriated to carry out this 
part may be used to--
          ``(1) conduct community-based programs that provide for 
        meaningful human, educational, environmental, or public safety 
        service by school-age participants;
          ``(2) provide training or technical assistance to support 
        service-learning;
          ``(3) involve students in emergency preparedness and homeland 
        security activities;
          ``(4) promote the recognition of students who perform 
        outstanding community service and schools that have implemented 
        outstanding service-learning programs; and
          ``(5) carry out demonstration programs, research, and 
        evaluation related to service-learning.
  ``(d) Limitation on Federal Share of Community-Based Program Costs.--
          ``(1) In general.--Except as provided in paragraph (4), the 
        Federal share of the cost of carrying out a program for which a 
        grant is made under this part may not exceed 50 percent of the 
        total cost of the program.
          ``(2) Non-federal contribution.--In providing for the 
        remaining share of the cost of carrying out such a program, 
        each recipient of assistance under this part--
                  ``(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 or local sources.
          ``(3) Waiver.--The Chief Executive Officer may waive the 
        requirements of paragraph (1) in whole or in part with respect 
        to any such 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.
          ``(4) Exemption.--The requirements in paragraph (1) shall not 
        apply to entities that receive a grant or enter into a 
        cooperative agreement or contract to provide training or 
        technical assistance, recognition, demonstration, research, or 
        evaluation under this part.''.

SEC. 1204. SERVICE-LEARNING CLEARINGHOUSE.

  Subtitle B of title I (42 U.S.C. 12521 et seq.) is amended--
          (1) in part I, by striking subpart C; and
          (2) by adding after part III (as added by section 1203) the 
        following new part:

                        ``PART IV--CLEARINGHOUSE

``SEC. 120A. SERVICE-LEARNING CLEARINGHOUSE.

  ``(a) In General.--The Corporation shall provide financial 
assistance, from funds appropriated to carry out subtitle H, to 
organizations described in subsection (b) to establish a clearinghouse, 
which shall carry out activities, either directly or by arrangement 
with another such organization, with respect to information about 
service-learning.
  ``(b) Public or Private Nonprofit Organizations.--Public or private 
nonprofit organizations that have extensive experience with service-
learning, including use of adult volunteers to foster service-learning, 
shall be eligible to receive assistance under subsection (a).
  ``(c) Function of Clearinghouse.--An organization that receives 
assistance under subsection (a) may--
          ``(1) assist entities carrying out State or local service-
        learning programs with needs assessments and planning;
          ``(2) conduct research and evaluations concerning service-
        learning;
          ``(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 entities carrying out 
        service-learning programs and participants in such programs;
          ``(5) 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;
          ``(6) provide information regarding methods to make service-
        learning programs accessible to individuals with disabilities;
          ``(7)(A) 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
          ``(B) coordinate the activities of the Clearinghouse with 
        appropriate entities to avoid duplication of effort;
          ``(8) make recommendations to State and local entities on 
        quality controls to improve the quality of service-learning 
        programs;
          ``(9) assist organizations in recruiting, screening, and 
        placing service-learning coordinators; and
          ``(10) carry out such other activities as the Chief Executive 
        Officer determines to be appropriate.''.

 Subtitle C--Amendments to Subtitle C (National Service Trust Program)

SEC. 1301. PROHIBITION ON GRANTS TO FEDERAL AGENCIES; LIMITS ON 
                    CORPORATION COSTS.

  Section 121 (42 U.S.C. 12571) is amended--
          (1) in subsection (b)--
                  (A) in the heading, by inserting ``Restrictions on'' 
                before ``Agreements With Federal Agencies'';
                  (B) in paragraph (1)--
                          (i) in the first sentence by striking ``by 
                        the agency.'' and inserting ``by the agency, 
                        including programs under the Public Lands Corps 
                        and Urban Youth Corps as described in section 
                        122(a)(2).''; and
                          (ii) by striking the second sentence;
                  (C) by striking paragraph (2) and inserting the 
                following:
          ``(2) Prohibition on grants.--The Corporation may not provide 
        a grant under this section to a Federal agency.''; and
                  (D) in paragraph (3)--
                          (i) by striking ``receiving assistance under 
                        this subsection'' and inserting ``operating a 
                        national service program''; and
                          (ii) by striking ``using such assistance'';
          (2) in subsection (c)--
                  (A) in the matter preceding paragraph (1), by 
                striking ``assistance under subsections (a) and (b)'' 
                and inserting ``assistance under subsection (a), or in 
                conjunction with approving member-based national 
                service positions under section 129A'';
                  (B) in paragraph (1), by striking ``carried out using 
                such assistance'' and inserting ``carried out using 
                such assistance or in national service positions 
                approved under section 129A''; and
                  (C) in paragraph (2)(B), by striking ``to be 
                provided'' and inserting ``to be provided or otherwise 
                approved''; and
          (3) in subsection (d)--
                  (A) in paragraph (1), by striking ``or (b)''; and
                  (B) in paragraph (2)(A), by striking ``or (b)''.

SEC. 1302. E-CORPS AND TECHNICAL AMENDMENTS TO TYPES OF PROGRAMS.

  Section 122 (42 U.S.C. 12572) is amended--
          (1) in subsection (a)--
                  (A) in the matter preceding paragraph (1), by 
                striking ``and each Federal agency receiving assistance 
                under section 121(b)'';
                  (B) in paragraph (9), by striking ``between the ages 
                of 16 and 24'' and inserting ``between the ages of 16 
                and 25'';
                  (C) by redesignating paragraph (15) as paragraph 
                (18); and
                  (D) by inserting after paragraph (14) the following:
          ``(15) An E-Corps program that involves participants who 
        provide service in a community by developing and assisting in 
        carrying out technology programs.
          ``(16) A program that engages citizens in public safety, 
        public health, and disaster relief and preparedness, and may 
        include the recruitment and placing of qualified participants 
        in positions to be trainees as law enforcement officers, 
        firefighters and rescue personnel, search and rescue personnel, 
        emergency medical service workers, and/or disaster services 
        workers.
          ``(17) A program, initiative, or partnership that seeks to 
        expand the number of young people with mentors, either through 
        provision of direct mentoring services or through activities 
        that build the capacity of mentoring organizations to serve 
        more young people.'';
          (2) in subsection (c)(1)(A), by striking ``subsection (b) or 
        (d) of''; and
          (3) by adding at the end the following:
  ``(d) High School Degree Required for Tutors.--The Corporation shall 
require that recipients of assistance under the national service laws 
to operate tutoring programs involving elementary or secondary school 
students shall certify that individuals serving in approved national 
service positions as tutors in such programs have obtained their high 
school diploma or its equivalent, or are enrolled in a program leading 
to their obtaining a high school diploma.
  ``(e) Literacy Programs.--
          ``(1) Programs.--Literacy programs that receive assistance 
        under the national service laws shall be based on 
        scientifically based reading research and provide instruction 
        based on the essential components of reading instruction as 
        defined in section 1208 of the `No Child Left behind Act of 
        2001' (Public Law 107-110).
          ``(2) Training required for reading tutors.--The Corporation 
        shall require that recipients of assistance under the national 
        service laws to operate tutoring in reading programs shall, in 
        providing training to participants serving in approved national 
        service positions as tutors, incorporate the recommendations of 
        the National Reading Panel and research from the National 
        Institute of Child Health and Human Development under the 
        auspices of the National Institutes of Health.
  ``(f) Citizenship Training.--The Corporation shall establish 
requirements for recipients of assistance under the national service 
laws relating to the promotion of citizenship and civic engagement, 
that are consistent with the principles on which citizenship programs 
administered by the Immigration and Naturalization Service are based, 
among individuals enrolled in approved national service positions.
  ``(g) Oath.--Any oath given under the national service laws shall be 
consistent with the principles in the Federal oath of office as 
provided in section 3331 of title 5, United States Code.''.

SEC. 1303. TYPES OF POSITIONS.

  Section 123 (42 U.S.C. 12573) is amended--
          (1) in paragraph (1), by striking ``subsection (a) or (b) of 
        section 121'' and inserting ``section 121(a)'';
          (2) in paragraph (2)(A), by striking ``, or a Federal 
        agency''; and
          (3) in paragraph (5), by inserting ``National'' before 
        ``Civilian Community Corps''.

SEC. 1304. TRAINING AND TECHNICAL ASSISTANCE.

  Section 125 (42 U.S.C. 12575) is amended--
          (1) in subsection (a)(1), by striking ``national service 
        programs assisted under section 121'' and inserting ``programs 
        assisted under the national service laws'';
          (2) in subsection (b), in the matter preceding paragraph (1), 
        by striking ``described in section 121'' and inserting 
        ``assisted under the national service laws'';
          (3) in subsection (b)(2), by striking ``provided under such 
        section'' and inserting ``provided under the national service 
        laws''; and
          (4) by adding at the end the following new subsection:
  ``(c) Underserved Areas and Populations.--In complying with the 
requirements of this section, the Corporation shall ensure that the 
training and technical assistance needs of programs which focus on and 
provide service opportunities for underserved rural and urban areas and 
populations are addressed.''.

SEC. 1305. ASSISTANCE TO STATE COMMISSIONS; CHALLENGE GRANTS.

  Section 126 (42 U.S.C. 12576) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (1), by striking ``$125,000 and 
                $750,000'' and inserting ``$200,000 and $1,000,000''; 
                and
                  (B) by striking paragraph (2) and inserting the 
                following:
          ``(2) Matching requirement.--In making grants to a State 
        under this subsection, the Corporation shall require the State 
        to provide matching funds in the following amounts:
                  ``(A) First $100,000.--For the first $100,000 of 
                grant amounts provided by the Corporation, a State 
                shall not be required to provide matching funds.
                  ``(B) Amounts greater than $100,000.--For grant 
                amounts of more than $100,000 and not exceeding 
                $200,000 provided by the Corporation, a State shall 
                provide $1 from non-Federal sources for every $2 
                provided by the Corporation.
                  ``(C) Amounts greater than $200,000.--For grant 
                amounts of more than $200,000 provided by the 
                Corporation, a State shall provide $1 from non-Federal 
                sources for every $1 provided by the Corporation.''; 
                and
          (2) in subsection (c)--
                  (A) in paragraph (1), by striking ``to national 
                service programs that receive assistance under section 
                121'' and inserting ``to programs supported under the 
                national service laws that expand service and 
                volunteering by increasing and strengthening the 
                capacity of community-based organizations, including 
                through the use of regional organizations that 
                facilitate the involvement of small community groups, 
                or by promoting high-quality teaching programs serving 
                low-income students''; and
                  (B) by striking paragraph (3) and inserting the 
                following:
          ``(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, grants under this 
        subsection may provide not more than $1 of assistance 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 as matching funds 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.''.

SEC. 1306. ALLOCATION OF ASSISTANCE TO STATES AND OTHER ELIGIBLE 
                    ENTITIES.

  Section 129 (42 U.S.C. 12581) is amended to read as follows:

``SEC. 129. PROVISION OF ASSISTANCE AND APPROVED NATIONAL SERVICE 
                    POSITIONS.

  ``(a) 1-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 amount 
allotted as a grant to each such territory under this subsection for a 
fiscal year shall be equal to the 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 such territories.
  ``(b) 1-Percent 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 in accordance with their respective needs.
  ``(c) Up to 20 Percent Allotment for National Grants.--Of the funds 
allocated by the Corporation for provision of assistance under section 
121(a) for a fiscal year, the Corporation shall reserve up to 20 
percent for grants to nonprofit organizations to operate a program in 2 
or more States.
  ``(d) At Least 35 Percent Allotment for State Competitive Grants.--Of 
the funds allocated by the Corporation for provision of assistance 
under subsection (a) of section 121 for a fiscal year, the Corporation 
shall reserve at least 35 percent for innovative grants to States on a 
competitive basis.
  ``(e) 45 percent to Certain States on Formula Basis.--
          ``(1) Grants.--Of the funds allocated by the Corporation for 
        provision of assistance under subsection (a) of section 121 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 amount allotted as a grant to each 
        such State under this subsection for a fiscal year shall be 
        equal to the amount that bears the same ratio to 45 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 must be at 
        least $500,000.
  ``(f) Adjustments.--
          ``(1) Reservation of funds.--Notwithstanding subsections (c) 
        through (e), except as provided in paragraph (3), the 
        Corporation shall ensure that it reserves funds for competitive 
        grants to States in an aggregate amount equal to the aggregate 
        amount of competitive grant funds provided to all States with 
        fiscal year 2002 funds.
          ``(2) Reduction from formula grants.--In order to meet the 
        requirements of paragraph (1) during a fiscal year in which the 
        percentage allotment for State competitive grants under 
        subsection (d) is less than the aggregate amount of competitive 
        grants funds provided to all States with fiscal year 2002 
        funds, the Corporation shall reduce the amount available for 
        State formula grants under subsection (e).
          ``(3) Proportionate reductions.--In any fiscal year in which 
        the aggregate amount allocated under subsections (a) through 
        (e) is less than the aggregate amount allocated for such 
        purposes with fiscal year 2002 funds, the Corporation shall 
        reduce the amounts allocated under each subsection in a manner 
        that corresponds to the respective proportions of allocations 
        of fiscal year 2002 funds.
  ``(g) 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, 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 eligible 
        entities under section 121 that propose to carry out national 
        service programs in the State or territory; and
          ``(2) make a reallotment to other States and territories with 
        approved applications submitted under section 130.
  ``(h) Application Required.--The allotment of assistance and approved 
national service positions to a recipient under this section shall be 
made by the Corporation only pursuant to an application submitted by a 
State or other applicant under section 130.
  ``(i) 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.
  ``(j) 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 these 
        approved national service positions shall be made pursuant to 
        the agreement, and the creation of these 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.
  ``(k) Reservation of Funds for Special Assistance.--From amounts 
appropriated for a fiscal year pursuant to the authorization of 
appropriations in section 501(a)(2) 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 sections 125 and 126.
  ``(l) Reservation of Funds To Increase the Participation of 
Individuals With Disabilities.--From amounts appropriated for a fiscal 
year pursuant to the authorization of appropriations in section 
501(a)(2) and subject to the limitation in such section, the Chief 
Executive Officer shall reserve an amount that is not less than 1 
percent of such amount (except that the amount reserved may not exceed 
$10,000,000), in order 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.''.

SEC. 1307. ADDITIONAL AUTHORITY.

  Subtitle C of title I (42 U.S.C. 12571 et seq.) is amended by 
inserting after section 129 the following new sections:

``SEC. 129A. PILOT AUTHORITY FOR MEMBER-BASED NATIONAL SERVICE 
                    POSITIONS.

  ``(a) Authority.--The Corporation may, on a pilot basis, reserve up 
to 5 percent of the funds allocated by the Corporation for provision of 
assistance under subsection (a) of section 121 for a fiscal year to 
test new approaches to increasing and diversifying opportunities to 
serve in approved national service positions in communities throughout 
the United States, including allowing individuals to serve in such 
positions other than through program operational grants under this 
subtitle.
  ``(b) Competitive Selection of Eligible Entities.--The Corporation 
may, each fiscal year, after making selections on a competitive basis, 
provide funds authorized under subsection (a) to not more than 15 State 
commissions on national and community service and other entities 
eligible for assistance under subsection (a) of section 121.
  ``(c) Requirements.--To receive a grant under this section, an 
eligible entity must demonstrate that it--
          ``(1) satisfies qualification criteria established by the 
        Corporation, including standards relating to organizational 
        capacity, financial management, and programmatic oversight, 
        that are designed to ensure that Federal funds are managed in 
        accordance with all applicable requirements, and that service 
        activities subject to its oversight comply with all applicable 
        restrictions;
          ``(2) is meeting accountability requirements under section 
        186;
          ``(3) has mechanisms to ensure compliance with sections 132, 
        174, and 175;
          ``(4) will approve sites for placement of participants in a 
        manner that achieves the purposes of this section;
          ``(5) will oversee no more than 5 participants at each site; 
        and
          ``(6) will comply with matching funds requirements set by the 
        Corporation, unless the Corporation determines that the 
        reasonable and necessary costs of carrying out the approved 
        activity significantly exceed the amount of assistance provided 
        by the Corporation.
  ``(d) Duration.--An agreement to support activities under this 
section shall be for a period not to exceed 3 years.
  ``(e) Accountability.--
          ``(1) The Corporation shall consult with its Inspector 
        General, State commissions on national and community service, 
        and national and State accrediting agencies in developing 
        methods of ensuring and improving accountability in the pilot 
        initiatives under this section, including the areas of 
        financial management and participant management.
          ``(2) If an eligible entity fails to comply with 
        accountability measures applicable to this section, it shall be 
        ineligible to receive a grant under this section for at least 5 
        years.
  ``(f) Reports to Congress.--The Corporation shall report to Congress, 
on an annual basis, on activities undertaken, and outcomes achieved, 
under this pilot authority.

``SEC. 129B. EDUCATION AWARDS 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 provide 
operational assistance to programs that receive approved national 
service positions but do not receive funds under section 121(a).
  ``(b) Limit on Corporation Grant Funds.--Operational support under 
this section may not exceed $600 per individual enrolled in an approved 
national service position.
  ``(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 sections 121(e) 
        and 140.
          ``(3) The living allowance and other benefits under sections 
        131(e) and section 140 (other than individualized support 
        services for disabled members under section 140(f)).

``SEC. 129C. FIXED AMOUNT GRANTS.

  ``(a) General.--Subject to the limitations in this section, the 
Corporation may, upon making a determination described in subsection 
(b), approve a fixed amount grant that is not subject to the Office of 
Management and Budget cost principles and related financial 
recordkeeping requirements.
  ``(b) Determination.--Before approving a fixed amount grant, the 
Corporation must determine that--
          ``(1) the reasonable and necessary costs of carrying out the 
        terms of the grant significantly exceed the amount of 
        assistance provided by the Corporation; or
          ``(2) based on the nature or design of the grant, any 
        assistance provided by the Corporation can be reasonably 
        presumed to be expended on reasonable and necessary costs.
  ``(c) Fixed Amount Grant Election by Formula Recipients.--A recipient 
of a grant under subsection (a) or (e) of section 129 may, after making 
the determination described in subsection (b), elect to make subgrants 
as fixed amount grants.
  ``(d) Fixed Amount Grant Designation for Competitive Recipients.--The 
Chief Executive Officer may, after making the determination described 
in subsection (b), make competitive grants under section 129 as fixed 
amount grants.''.

SEC. 1308. STATE SELECTION OF PROGRAMS.

  Section 130 (42 U.S.C. 12582) is amended--
          (1) in subsection (a), by striking ``to be carried out using 
        the assistance'' and all that follows through ``or Federal 
        agency'' and inserting ``, an applicant'';
          (2) in subsection (c)(1), by striking ``jobs or'';
          (3) in subsection (e)--
                  (A) by striking paragraph (2); and
                  (B) by redesignating paragraph (3) as paragraph (2);
          (4) in subsection (f)--
                  (A) in paragraph (1), by striking ``a program 
                applicant'' and inserting ``an applicant'';
                  (B) in paragraph (2)--
                          (i) in the heading, by striking ``Program 
                        applicant'' and inserting ``Applicant''; and
                          (ii) by striking ``program applicant'' and 
                        inserting ``applicant''; and
                  (C) by striking ``institution of higher education, or 
                Federal agency'' and inserting ``or institution of 
                higher education'' each place it appears; and
          (5) in subsection (g), by striking the period and inserting 
        ``or is already receiving financial assistance from the 
        Corporation.''.

SEC. 1309. CONSIDERATION OF APPLICATIONS.

  Section 133 (42 U.S.C. 12585) is amended--
          (1) in subsection (b)(2)(B), by striking ``jobs or'';
          (2) in subsection (c), by redesignating paragraph (8) as 
        paragraph (9) and inserting after paragraph (7) the following:
          ``(8) If applicable, as determined by the Corporation, the 
        extent to which the program generates the involvement of 
        volunteers.''; and
          (3) in subsection (d)--
                  (A) in paragraph (2)--
                          (i) by striking subparagraphs (A) and (G), 
                        and redesignating subparagraphs (B) through (F) 
                        as subparagraphs (A) through (E), respectively;
                          (ii) in subparagraph (D) (as so 
                        redesignated), by adding ``and'' at the end; 
                        and
                          (iii) in subparagraph (E) (as so 
                        redesignated), by striking ``; and'' and 
                        inserting a period; and
                  (B) by striking paragraph (4).

SEC. 1310. DESCRIPTION OF PARTICIPANTS.

  Section 137 (42 U.S.C. 12591) is amended--
          (1) in subsection (a)--
                  (A) by striking paragraph (3); and
                  (B) by redesignating paragraphs (4), (5), and (6) as 
                paragraphs (3), (4), and (5), respectively;
          (2) in subsection (b)--
                  (A) in paragraph (1), by striking ``paragraph (4)'' 
                and inserting ``paragraph (3)''; and
                  (B) in paragraph (2), by striking ``between the ages 
                of 16 and 25'' and inserting ``a 16-year-old out of 
                school youth or an individual between the ages of 17 
                and 25''; and
          (3) by striking subsection (c) and inserting the following:
  ``(c) Self-Certification and Waiver.--The Corporation may--
          ``(1) consider an individual as having satisfied the 
        requirement of subsection (a)(4) if the individual informs the 
        Corporation that such requirement has been satisfied; or
          ``(2) 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. 1311. REFERENCE TO FEDERAL AGENCY.

  Section 138(a) is amended by striking ``Federal agency,''.

SEC. 1312. TERMS OF SERVICE.

  Section 139 (42 U.S.C. 12593) is amended--
          (1) in subsection (b)(1), by striking ``not less than 9 
        months and'';
          (2) in subsection (b)(2), by striking ``during a period of--
        '' and all that follows and inserting ``during a period of not 
        more than 2 years.''; and
          (3) in subsection (c)--
                  (A) in paragraph (1)(A), by striking ``as 
                demonstrated by the participant'' and inserting ``as 
                determined by the organization responsible for granting 
                a release, if the participant has otherwise performed 
                satisfactorily and has completed at least 15 percent of 
                the original term of service'';
                  (B) in paragraph (2)(A), by striking ``provide to the 
                participant that portion of the national service 
                educational award'' and inserting ``certify the 
                participant's eligibility for that portion of the 
                national service educational award''; and
                  (C) in paragraph (2)(B), by striking ``to allow 
                return to the program with which the individual was 
                serving in order''.

SEC. 1313. ADJUSTMENTS TO LIVING ALLOWANCE.

  Section 140 (42 U.S.C. 12594) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (1), by striking ``paragraph (3)'' 
                and inserting ``paragraphs (3) and (4)'';
                  (B) by redesignating paragraphs (4), (5), and (6) as 
                paragraphs (5), (6), and (7), respectively;
                  (C) by inserting after paragraph (3) the following:
          ``(4) Adjustment for federal work-study students.--The living 
        allowance that may be provided to an individual whose term of 
        service includes hours for which the individual receives 
        Federal work study wages shall be reduced by the amount of the 
        individual's Federal work study award.'';
                  (D) in paragraph (5) (as redesignated by this 
                section) by striking ``a reduced term of service under 
                section 139(b)(3)'' and inserting ``a term of service 
                that is less than 12 months''; and
                  (E) by inserting after paragraph (7) (as redesignated 
                by this section) the following:
          ``(8) Other federal funds.--
                  ``(A) Recipient report.--A recipient of assistance 
                under section 121 that is subject to the limitation on 
                the Federal share of the annual living allowance in 
                paragraph (2) shall report to the Corporation the 
                amount and source of any Federal funds other than those 
                provided by the Corporation used to pay the annual 
                living allowance under paragraph (1).
                  ``(B) Corporation report.--The Corporation shall 
                report to the Congress on an annual basis information 
                regarding each recipient that uses Federal funds other 
                than those provided by the Corporation to pay the 
                annual living allowance under paragraphs (1) and (2), 
                including amounts and sources of other Federal 
                funds.''; and
          (2) by striking subsection (h).

   Subtitle D--Amendments to Subtitle D (National Service Trust and 
           Provision of National Service Educational Awards)

SEC. 1401. AVAILABILITY OF FUNDS IN THE NATIONAL SERVICE TRUST.

  Section 145 (42 U.S.C. 12601) is amended--
          (1) in subsection (a)(1)--
                  (A) in subparagraph (A), by striking ``and''; and
                  (B) by adding at the end the following:
                  ``(C) service-based scholarships for high school 
                students; and
                  ``(D) senior service scholarships under subtitle 
                J.'';
          (2) in subsection (a)(2), by striking ``pursuant to section 
        196(a)(2)'' and inserting ``pursuant to section 196(a)(2), if 
        the terms of such donations direct that they be deposited in 
        the National Service Trust'';
          (3) in subsection (c), by striking ``for payments of national 
        service educational awards in accordance with section 148.'' 
        and inserting ``for--
          ``(1) payments of national service educational awards in 
        accordance with section 148;
          ``(2) payments of interest in accordance with section 148(e);
          ``(3) the Federal share of service-based scholarships to high 
        school students in accordance with section 149; and
          ``(4) senior service scholarships in accordance with subtitle 
        J.''; and
          (4) in subsection (d)--
                  (A) in paragraph (3)(B), by striking ``and'';
                  (B) in paragraph (4), by striking the period and 
                inserting ``; and''; and
                  (C) by adding at the end the following:
          ``(5) identify the number of students who have received 
        service-based scholarships and specify the amount of Federal 
        and matching funds expended on an annual basis on service-based 
        scholarships to high school students; and
          ``(6) identify the number of individuals who are currently 
        performing service, or have performed service, under the senior 
        service scholarship program pursuant to subtitle J.''.

SEC. 1402. INDIVIDUALS ELIGIBLE TO RECEIVE A NATIONAL SERVICE 
                    EDUCATIONAL AWARD FROM THE TRUST.

  Section 146 (42 U.S.C. 12602) is amended--
          (1) in subsection (a)--
                  (A) in the matter preceding paragraph (1), by 
                striking ``if the individual'' and inserting ``if the 
                organization responsible for an individual's 
                supervision certifies that the individual'';
                  (B) by striking paragraphs (1), (2), and (3) and 
                inserting the following:
          ``(1) met the applicable eligibility requirements for the 
        position; and
          ``(2)(A) successfully completed the required term of service 
        described in subsection (b) in an approved national service 
        position; or
          ``(B)(i) satisfactorily performed prior to being granted a 
        release for compelling personal circumstances under section 
        139(c); and
          ``(ii) served at least 15 percent of the required term of 
        service described in subsection (b); and''; and
                  (C) by redesignating paragraph (4) as paragraph (3); 
                and
          (2) by striking subsection (c) and inserting the following:
  ``(c) Limitation on Receipt of Educational Awards.--An individual may 
receive no more than an amount equal to the aggregate value of 2 
national service educational awards for full-time service.''.

SEC. 1403. DETERMINATION OF THE AMOUNT OF NATIONAL SERVICE EDUCATIONAL 
                    AWARDS.

  Section 147(a) (42 U.S.C. 12603(a)) is amended by striking ``, for 
each of not more than 2 of such terms of service'' and all that follows 
and inserting ``of $5,250.''.

SEC. 1404. DISBURSEMENT OF NATIONAL SERVICE EDUCATIONAL AWARDS.

  Section 148 (42 U.S.C. 12604) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (2), by striking ``cost of 
                attendance'' and inserting ``cost of attendance or 
                other educational expenses'';
                  (B) in paragraph (3), by striking ``and'';
                  (C) by redesignating paragraph (4) as paragraph (5); 
                and
                  (D) by inserting after paragraph (3) the following:
          ``(4) to pay expenses incurred in enrolling in an educational 
        institution or training establishment that meets the 
        requirements of chapter 36 of title 38, United States Code (38 
        U.S.C. 3451 et seq.); and'';
          (2) in subsection (b)(7)--
                  (A) in subparagraph (A), by striking ``, other than a 
                loan to a parent of a student pursuant to section 428B 
                of such Act (20 U.S.C. 1078-2)'';
                  (B) in subparagraph (B), by striking the period and 
                inserting ``; and''; and
                  (C) by adding at the end the following:
                  ``(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;
                          ``(iii) a State agency; or
                          ``(iv) a lender otherwise determined by the 
                        Corporation to be eligible to receive 
                        disbursements from the National Service 
                        Trust.'';
          (3) in subsection (e), by striking ``subsection (b)(6)'' and 
        inserting ``subsection (b)(7)''; and
          (4) in subsection (f), by striking ``Director'' and inserting 
        ``Chief Executive Officer''.

SEC. 1405. ADDITIONAL USES OF NATIONAL SERVICE TRUST AMOUNTS.

  Subtitle D of title I (42 U.S.C. 12601 et seq.) is amended by adding 
at the end the following new sections:

``SEC. 149. USE BY PARTICIPANTS WITH DISABILITIES.

  ``Notwithstanding any other provision of this subtitle, the National 
Service Trust may disburse some or all of a national service 
educational award directly to an individual who provides a 
certification that--
          ``(1) the individual is--
                  ``(A) entitled to disability insurance benefits under 
                section 223 of the Social Security Act (42 U.S.C. 423);
                  ``(B) entitled to monthly insurance benefits under 
                section 202 of the Social Security Act (42 U.S.C. 202) 
                based on such individual's disability (as defined in 
                section 223(d) of such Act); or
                  ``(C) eligible for supplemental security income 
                benefits under subchapter XVI of the Social Security 
                Act (42 U.S.C. 1381 et seq.) on the basis of blindness 
                (within the meaning of section 1614(a)(2) of such Act) 
                or disability (within the meaning of section 1614(a)(3) 
                of such Act); and
          ``(2) the individual will use the disbursed funds to pay for 
        education, training, or work-related activities designed to 
        make the individual self-supporting.

``SEC. 149A. SERVICE-BASED SCHOLARSHIPS TO HIGH SCHOOL STUDENTS.

  ``(a) Program Authorized.--The Corporation may use amounts in the 
National Service Trust to support a service-based scholarship program 
to recognize high school juniors and seniors who are engaged in 
outstanding community service and scholarship.
  ``(b) Approved Use of Scholarships.--The Corporation may use amounts 
in the Trust to supplement locally funded scholarships to help cover an 
individual's postsecondary education or job training costs.
  ``(c) Corporation Share.--The Corporation's share of an individual's 
scholarship under the program may not exceed $500.
  ``(d) Local Share.--The local share of an individual's scholarship 
under the program must be equal to or greater than the Corporation's 
share.''.

   Subtitle E--Amendments to Subtitle E (National Civilian Community 
                                 Corps)

SEC. 1501. PURPOSE.

  Section 151 (42 U.S.C. 12611) is amended to read as follows:

``SEC. 151. 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. Such needs to be met under such programs 
include those related to natural and other disasters, which shall be 
addressed in coordination with the Federal Emergency Management Agency 
and other public and private organizations.''.

SEC. 1502. PROGRAM COMPONENTS.

  Section 152 (42 U.S.C. 12612) is amended--
          (1) in the heading, by striking ``demonstration'';
          (2) in subsections (a) and (b), by striking 
        ``Demonstration'';
          (3) in the heading of subsection (c), by striking 
        ``Programs'' and inserting ``Components''; and
          (4) in subsection (c), by striking ``program components are 
        residential programs'' and all that follows and inserting 
        ``programs referred to in subsection (b) may include a 
        residential component.''.

SEC. 1503. ELIGIBLE PARTICIPANTS.

  Section 153 (42 U.S.C. 12613) is amended--
          (1) in subsection (a), by striking ``Demonstration'';
          (2) in subsection (b), by striking ``if the person'' and all 
        that follows and inserting ``if the person will be at least 18 
        years of age by December 31 in the calendar year in which the 
        individual enrolls in the program.'';
          (3) in the heading of subsection (c), by striking 
        ``Backrounds'' and inserting ``Backgrounds''; and
          (4) by striking subsection (e).

SEC. 1504. SUMMER NATIONAL SERVICE PROGRAM.

  Section 154 (42 U.S.C. 12614) is amended--
          (1) in subsection (a), by striking ``Demonstration''; and
          (2) by adding at the end the following:
  ``(d) Alternative Benefit.--The Director may provide a scholarship 
for post-secondary education not to exceed $1,000 and consistent with 
section 148(c) to participants under this section who do not meet the 
minimum age requirements for a national service educational award under 
section 146.''.

SEC. 1505. TEAM LEADERS.

  Section 155 (42 U.S.C. 12615) is amended--
          (1) in subsection (a), by striking ``Demonstration''; and
          (2) in subsection (b), by adding at the end the following:
          ``(4) Team leaders.--The Director may select from Corps 
        members 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. Team leaders 
        shall--
                  ``(A) be selected without regard to the age 
                limitation under section 153(b);
                  ``(B) be members of the National Civilian Community 
                Corps; and
                  ``(C) be provided the rights and benefits applicable 
                to Corps members, except that the limitation on the 
                amount of living allowance shall not exceed 10 percent 
                more than the amount established under section 
                158(b).''.

SEC. 1506. CONSULTATION WITH STATE COMMISSIONS.

  Section 157 (42 U.S.C. 12617) is amended--
          (1) in subsection (b)(1)(B), by inserting ``community-based 
        organizations and'' before ``representatives of local 
        communities'';
          (2) in subsection (b)(2), by inserting ``State commissions,'' 
        before ``and persons involved in other youth service 
        programs.''; and
          (3) in subsection (c), by adding at the end the following:
          ``(3) Disaster assistance.--The Director shall place 
        appropriate emphasis on projects in support of disaster relief 
        efforts.''.

SEC. 1507. PERMANENT CADRE.

  Section 159 (42 U.S.C. 12619) is amended--
          (1) in subsection (a), by striking ``Demonstration'';
          (2) in subsection (c)(2)--
                  (A) in subparagraph (A), by striking ``The Director 
                shall establish a permanent cadre of'' and inserting 
                ``The Chief Executive Officer shall establish a 
                permanent cadre that includes the Director and other 
                appointed'';
                  (B) in subparagraph (B), by striking ``The Director 
                shall appoint the members'' and inserting ``The Chief 
                Executive Officer shall consider the recommendations of 
                the Director in appointing the other members''; and
                  (C) in subparagraph (C), by striking ``the Director'' 
                and inserting ``the Chief Executive Officer''; and
          (3) in the first sentence of subsection (c)(3), by striking 
        ``the members'' and inserting ``other members''.

SEC. 1508. CONTRACT AND GRANT AUTHORITY.

  Section 161(a) (42 U.S.C. 12621(a)) is amended by striking ``perform 
any program function under this subtitle'' and inserting ``carry out 
the National Civilian Community Corps program''.

SEC. 1509. OTHER DEPARTMENTS.

  Section 162(a)(2)(A) (42 U.S.C. 12622(a)(2)(A)) is amended by 
striking ``to be recommended for appointment'' and inserting ``from 
which individuals may be selected for appointment by the Director''.

SEC. 1510. REPEAL OF AUTHORITY FOR ADVISORY BOARD AND FUNDING 
                    LIMITATION.

  Sections 163 and 165 (42 U.S.C. 12623 and 12625) and the items 
relating to such sections in the table of contents contained in section 
1(b) (42 U.S.C. 12501 note) are repealed.

SEC. 1511. DEFINITIONS.

  Section 166 (42 U.S.C. 12626) is amended--
          (1) by striking paragraph (9);
          (2) by redesignating paragraphs (2) through (8) as paragraphs 
        (3) through (9) respectively;
          (3) by inserting after paragraph (1) the following:
          ``(2) Campus director.--The term `campus director', with 
        respect to a Corps campus, means the head of the campus under 
        section 155(d).''; and
          (4) in paragraphs (3), (5), and (8) (as redesignated by this 
        section), by striking ``Demonstration''.

SEC. 1512. EMERGENCY RESPONSE CORPS.

  Subtitle E of title I (42 U.S.C. 12611 et seq.) is amended by adding 
at the end the following new section:

``SEC. 167. EMERGENCY RESPONSE CORPS.

  ``(a) Authority To Provide Assistance.--Subject to the availability 
of appropriations under this subtitle for this purpose, the Corporation 
may make grants, and provide an allotment of educational awards, to 
State and local public agencies and private nonprofit organizations, 
including institutions of higher education, for the purpose of 
supporting the development and operation of emergency response corps as 
part of the National Civilian Community Corps.
  ``(b) Eligible Programs.--A recipient of a grant under this section 
shall conduct an emergency response corps program, which may include a 
residential program, in which individuals at least 18 years of age 
receive training and are deployed to respond to natural and other 
disasters and otherwise support local communities in public safety, 
public health, and emergency preparedness. Such a program may include 
national service opportunities for participants to be trainees as law 
enforcement officers, firefighters and rescue personnel, search and 
rescue personnel, emergency medical service workers, and disaster 
services workers.
  ``(c) Use of Funds.--
          ``(1) Allowable costs.--A recipient of a grant under this 
        section may use the amounts of the grant to pay costs 
        attributable to the development or operation of an emergency 
        response corps including--
                  ``(A) for residential programs, a living allowance 
                that does not exceed the amount that is provided to 
                National Civilian Community Corps members under section 
                158(b);
                  ``(B) other member benefits and services consistent 
                with those authorized under subsections (c) and (d) of 
                section 158;
                  ``(C) recruitment;
                  ``(D) training;
                  ``(E) insurance; and
                  ``(F) management.
          ``(2) Administrative costs.--A recipient of a grant under 
        this section may use up to 5 percent of the amount of the grant 
        provided by the Corporation to pay for the recipient's cost of 
        administering the approved program.
  ``(d) National Service Educational Awards.--An individual who 
successfully completes a term of service in an emergency response corps 
may receive the national service educational award described in 
subtitle D if the individual--
          ``(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.''.

SEC. 1513. TERMINOLOGY.

  Subtitle E of title I (42 U.S.C. 12611 et seq.) is amended--
          (1) by striking ``Civilian Community Corps'' each place it 
        appears and inserting ``National Civilian Community Corps'';
          (2) by striking ``CIVILIAN COMMUNITY CORPS'' each place it 
        appears and inserting ``NATIONAL CIVILIAN COMMUNITY CORPS'';
          (3) by striking ``superintendent'' each place it appears and 
        inserting ``director'';
          (4) by striking ``superintendent'' each place it appears and 
        inserting ``director'';
          (5) by striking ``camp'' each place it appears and inserting 
        ``campus'';
          (6) by striking ``camp'' each place it appears and inserting 
        ``campus'';
          (7) by striking ``camps'' each place it appears and inserting 
        ``campuses''; and
          (8) by striking ``camps'' each place it appears and inserting 
        ``campuses''.

    Subtitle F--Amendments to Subtitle F (Administrative Provisions)

SEC. 1601. FAMILY AND MEDICAL LEAVE.

  Section 171 (42 U.S.C. 12631) is amended--
          (1) in subsection (a)(1), by striking ``with respect to a 
        project'' and inserting ``with respect to a project authorized 
        under the national service laws'';
          (2) by redesignating subsections (b) and (c) as subsections 
        (c) and (d); and
          (3) by inserting after subsection (a) the following:
  ``(b) Service Sponsors.--Participants in a project authorized under 
the national service laws shall not be considered employees for 
purposes of determining whether a service sponsor is an employer under 
subsection (a)(2).''.

SEC. 1602. ADDITIONAL PROHIBITIONS ON USE OF FUNDS.

  Section 174 (42 U.S.C. 12634) is amended by adding at the end the 
following:
  ``(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.
  ``(e) Sex Education Programs.--No assistance made available under the 
national service laws shall be used--
          ``(1) to develop or distribute materials or operate programs 
        or courses of instruction directed at youth that are designed 
        to promote or encourage sexual activity;
          ``(2) to distribute or aid in the distribution by any 
        organization of obscene materials to minors on school grounds;
          ``(3) to provide in schools--
                  ``(A) sex education, unless such education is age 
                appropriate and includes discussion of the health 
                benefits of abstinence; and
                  ``(B) HIV-prevention instruction, unless such 
                instruction is age appropriate, includes discussion of 
                the health benefits of abstinence, and includes 
                discussion of the health risks of the human 
                papillomavirus (HPV), consistent with the provisions of 
                section 317P(c) of the Public Health Service Act (42 
                U.S.C. 247b-17(c)), or
          ``(4) to operate a program of contraceptive distribution in 
        schools.''.

SEC. 1603. NOTICE, HEARING, AND GRIEVANCE PROCEDURES.

  Section 176 (42 U.S.C. 12636) is amended--
          (1) by striking ``this title'' each place it appears and 
        inserting ``the national service laws'';
          (2) in subsection (a)(2)(A), by striking ``30 days'' and 
        inserting ``1 or more periods of 30 days not to exceed 90 days 
        in total''; and
          (3) in subsection (f)--
                  (A) in paragraph (1), by striking ``A State or local 
                applicant'' and inserting ``An entity''; and
                  (B) in paragraph (6)--
                          (i) in subparagraph (C), by striking ``and'';
                          (ii) by redesignating subparagraph (D) as 
                        subparagraph (E); and
                          (iii) by inserting after subparagraph (C) the 
                        following:
                  ``(D) in a grievance 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.''.

SEC. 1604. RESOLUTION OF DISPLACEMENT COMPLAINTS.

  Section 177 (42 U.S.C. 12637) is amended--
          (1) in subsections (a) and (b), by striking ``under this 
        title'' each place it appears and inserting ``under the 
        national service laws'';
          (2) in subsection (b)(1), by striking ``employee or 
        position'' and inserting ``employee, position, or volunteer 
        (other than a participant under the national service laws)''; 
        and
          (3) by striking subsection (e) and inserting the following:
  ``(e) Standards of Conduct.--
          ``(1) In general.--Programs that receive assistance under the 
        national service laws shall establish and stringently enforce 
        standards of conduct at the program site to promote proper 
        moral and disciplinary conditions, and 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, consistent with State 
        law, before transporting minor children, provide the reason for 
        and obtain written permission of the children's parents.''.

SEC. 1605. STATE COMMISSIONS ON NATIONAL AND COMMUNITY SERVICE.

  Section 178 (42 U.S.C. 12638) is amended--
          (1) in subsection (c)(1), by adding at the end the following:
                  ``(J) A representative of the volunteer sector.'';
          (2) in subsection (c)(3), by striking ``, unless the State 
        permits the representative to serve as a voting member of the 
        State Commission or alternative administrative entity'';
          (3) by striking subsection (e)(1) and inserting the 
        following:
          ``(1) Preparation of a national service plan 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 nonprofit organizations and public agencies 
                using service and volunteerism as a strategy to meet 
                critical community needs, including 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;
                  ``(D) includes measurable goals and outcomes;
                  ``(E) ensures outreach to community and religious 
                organizations, including those that serve 
                underrepresented populations;
                  ``(F) provides for effective coordination of funding 
                applications submitted by the State and others within 
                the State under the national service laws; and
                  ``(G) identifies potential 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.'';
          (4) by redesignating subsections (f) through (j) as 
        subsections (g) through (k), respectively;
          (5) by inserting after subsection (e) the following:
  ``(f) Relief From Administrative Requirements.--Upon approval of a 
State plan submitted under subsection (e)(1), the Chief Executive 
Officer may waive, or specify alternatives to, administrative 
requirements (other than statutory provisions) otherwise applicable to 
grants made to States under the national service laws, including those 
requirements identified by a State as impeding the coordination and 
effectiveness of Federal, State, and local resources for service and 
volunteerism within a State.''; and
          (6) in subsection (j)(1) (as redesignated by this section), 
        by striking the period and inserting ``, consistent with 
        section 174(d).''.

SEC. 1606. EVALUATION AND ACCOUNTABILITY.

  Section 179 (42 U.S.C. 12639) is amended--
          (1) in subsection (a), by striking ``to determine--'' and all 
        that follows and inserting ``to determine the effectiveness of 
        programs supported under the national service laws in achieving 
        stated goals and the costs associated with each of such 
        programs, while conducting research on the role of service and 
        civic engagement as a means of fostering healthy civic 
        organizations.'';
          (2) in subsection (g)--
                  (A) in paragraph (3), by striking ``National Senior 
                Volunteer Corps'' and inserting ``National Senior 
                Service Corps''; and
                  (B) in paragraph (9), by striking ``to public 
                service'' and all that follows and inserting ``to 
                engage in service that benefits the community.''; and
          (3) by adding at the end the following:
  ``(j) Reserved Program Funds for Accountability.--In addition to 
amounts appropriated to carry out this section, the Corporation may 
reserve up to 1 percent of total program funds appropriated in a fiscal 
year under the national service laws to support program accountability 
activities.''.

SEC. 1607. TECHNICAL AMENDMENT.

  Section 181 (42 U.S.C. 12641) is amended by striking ``Section 414'' 
and inserting ``Section 422''.

SEC. 1608. ADDITIONAL ADMINISTRATIVE PROVISIONS.

  Subtitle F of title I (42 U.S.C. 12631 et seq.) is amended by adding 
at the end the following new sections:

``SEC. 185. CONSOLIDATED APPLICATION AND REPORTING REQUIREMENTS.

  ``To promote efficiency and eliminate duplicative requirements, the 
Corporation may consolidate or modify application procedures and 
reporting requirements for programs and activities funded under the 
national service laws.

``SEC. 186. ACCOUNTABILITY FOR RESULTS.

  ``(a) Measures.--
          ``(1) Establishment of measures.--The Corporation shall 
        establish, in consultation with grantees receiving assistance 
        under the national service laws, performance measures for each 
        grantee.
          ``(2) Content.--The measures described in paragraph (1) shall 
        include--
                  ``(A) the number of participants enrolled as compared 
                to the number stated in the organization's approved 
                application for assistance;
                  ``(B) evidence of community support, such as private 
                financial contributions and volunteers recruited from 
                the community;
                  ``(C) progress toward program outcome measures; and
                  ``(D) performance on other measures as determined by 
                the Corporation.
          ``(3) Source.--The measures described in paragraph (1) may 
        include self-reported data from grantees or independent data 
        collected by the Corporation.
  ``(b) Corrective Plans.--A grantee that does not achieve the 
established levels of performance on the measures, as determined by the 
Corporation, shall submit to the Corporation for approval a plan of 
correction to achieve the established levels of performance.
  ``(c) Failure To Meet Performance Levels.--If, after a period for 
correction as approved by the Corporation, a grantee or subgrantee 
fails to achieve the established levels of performance, the Corporation 
shall--
          ``(1) reduce the annual amount of the grant award 
        attributable to the underperforming grantee or subgrantee by at 
        least 25 percent; or
          ``(2) terminate assistance to the underperforming grantee or 
        subgrantee, consistent with section 176(a).
  ``(d) Reports to Congress.--The Corporation shall submit a report to 
Congress within 2 years after the date of enactment of this section, 
and annually thereafter, containing information on the number of 
programs implementing corrective plans and the number of programs for 
which assistance is terminated, and the number of programs meeting or 
exceeding their performance measures under this section for the year 
covered by the report.

``SEC. 187. SUSTAINABILITY.

  ``(a) Goals.--To ensure that recipients of assistance under the 
national service laws are meeting sustainability goals, the Corporation 
may, in consultation with recipients of assistance under the national 
service laws, establish policies and procedures to--
          ``(1) establish limits on the number of years recipients may 
        receive assistance to carry out a project;
          ``(2) increase match requirements; and
          ``(3) implement measures to ascertain whether projects are 
        generating sufficient community support.
  ``(b) Enforcement.--Any action by the Corporation to suspend or 
terminate assistance to recipients that do not meet sustainability 
goals set by the Corporation shall be consistent with section 176(a) 
and section 186.

``SEC. 188. USE OF RECOVERED FUNDS.

  ``(a) Factors Considered in Approving Repayment.--After the date of 
enactment of this section, whenever the Corporation recovers funds paid 
to a recipient under a grant or cooperative agreement made under the 
national service laws because the recipient made an expenditure of 
funds that was not allowable, or otherwise failed to discharge its 
responsibility to account properly for funds, the Corporation may 
consider those funds to be additional funds available and may arrange 
to repay to the recipient affected by that action an amount not to 
exceed 75 percent of the recovered funds if the Corporation determines 
that--
          ``(1) the practices or procedures of the recipient that 
        resulted in the recovery of funds have been corrected, and that 
        the recipient is in all other respects incompliance with the 
requirements of the grant or cooperative agreement, if the recipient 
was notified of any noncompliance with such requirements and given a 
reasonable period of time to remedy such noncompliance;
          ``(2) the recipient has submitted to the Corporation a plan 
        for the use of those funds consistent with the national service 
        laws and, to the extent possible, for the benefit of the 
        community affected by the recovery of funds; and
          ``(3) the use of those funds in accordance with that plan 
        would serve to achieve the objectives of the grant or 
        cooperative agreement under which the funds were originally 
        paid.
  ``(b) Terms and Conditions of Repayment.--Any payments by the 
Corporation under this section shall be subject to other terms and 
conditions as the Corporation considers necessary to accomplish the 
purposes of the grant or cooperative agreement, including--
          ``(1) the submission of periodic reports on the use of funds 
        provided under this section; and
          ``(2) consultation by the recipient with members of the 
        community that will benefit from the payments.
  ``(c) Availability of Funds.--Notwithstanding any other provision of 
law, the funds made available under this section shall remain available 
for expenditure for a period of time considered reasonable by the 
Corporation, but in no case to exceed more than 3 fiscal years 
following the later of--
          ``(1) the fiscal year in which final agency action regarding 
        the disallowance of funds is taken; or
          ``(2) if such recipient files a petition for judicial review 
        regarding the disallowance of funds, the fiscal year in which 
        final judicial action is taken on such a petition.
  ``(d) Publication in Federal Register.--At least 60 days prior to 
entering into an arrangement under this section, the Corporation shall 
publish in the Federal Register a notice of intent to enter into such 
an arrangement and the terms and conditions under which payments will 
be made. Interested persons shall have an opportunity for at least 30 
days to submit comments to the Corporation regarding the proposed 
arrangement.

``SEC. 189. CAPACITY BUILDING.

  ``Participants in programs supported under the national service laws, 
including individuals serving in approved national service positions, 
may engage in activities, including recruiting and managing volunteers, 
that increase the capacity of organizations that receive assistance 
under the national service laws to address unmet human, educational, 
environmental, or public safety needs.

``SEC. 189A. EXPENSES OF ATTENDING MEETINGS.

  ``Notwithstanding section 1345 of title 31, United States Code, funds 
authorized under the national service laws shall be available for 
expenses of attendance of meetings that are concerned with the 
functions or activities for which the funds are appropriated or which 
will contribute to improved conduct, supervision, or management of 
those functions or activities.

``SEC. 189B. FEES.

  ``(a) Collection of Fees.--The Corporation may charge and retain fair 
and reasonable fees for training, technical assistance, and 
publications. The amount of the fees shall be based on the cost of the 
activities or publications to the Corporation.
  ``(b) Not Federal Funds.--Fees collected under subsection (a) shall 
not be considered to be Federal funds and shall not be required to be 
deposited in the Treasury of the United States.
  ``(c) Annual Reports.--The Corporation shall submit to the 
appropriate committees of Congress an annual report that includes the 
services or publications provided on a fee basis and the amount of fees 
received.

``SEC. 189C. GRANT PERIODS.

  ``Unless otherwise specifically provided, the Corporation has 
authority to make a grant under the national service laws for a period 
of 3 years.

``SEC. 189D. 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 
meeting community needs.

``SEC. 189E. LIMITATION ON PROGRAM GRANT COSTS.

  ``(a) Limitation on Grant Amounts.--Except as otherwise provided by 
this section, the amount of funds approved by the Corporation in a 
grant to operate a program authorized under the national service laws 
supporting individuals serving in approved national service positions 
may not exceed $16,000 per full-time equivalent position.
  ``(b) Costs Subject to Limitation.--The limitation in subsection (a) 
applies to the Corporation's share of member support costs, staff 
costs, and other costs borne by the grantee or subgrantee to operate a 
program.
  ``(c) Costs Not Subject to Limitation.--The limitation in subsection 
(a) and (e)(1) shall not apply to expenses that are not included in the 
program operating grant award.
  ``(d) Adjustments for Inflation.--The amount specified in subsections 
(a) and (e)(1) shall be adjusted each year after 2003 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 waive the 
        requirements of this section, up to a maximum of $18,000, if 
        necessary to meet the compelling needs of a particular program, 
        such as exceptional training needs for a program serving 
        disadvantaged youth, increased costs relating to the 
        participation of individuals with disabilities, and start-up 
        costs associated with a first-time grantee, and up to a maximum 
        of $20,000 for residential programs.
          ``(2) Reports.--The Chief Executive Officer shall report to 
        Congress annually on all waivers granted under this section, 
        with an explanation of the compelling needs justifying such 
        waivers.

``SEC. 189F. NOTICE REQUIREMENT.

  ``(a) The Corporation shall ensure that the following notice is 
included in all application materials, grant announcements, and other 
material containing information regarding the application for 
assistance provided under the national service laws: `The Civil Rights 
Act of 1964 prohibits employers with 15 or more employees from engaging 
in employment practices that discriminate against an individual based 
on religion. Under section 702(a) of the Civil Rights Act, this 
prohibition generally does not apply to a religious corporation, 
association, educational institution, or society. However, as a 
requirement of receiving funding under the national service laws, any 
such religious entity shall not discriminate based on religion when 
employing new staff paid with funds received under the national service 
laws pursuant to section 175(c) of the National and Community Service 
Act of 1990 (42 U.S.C. 12635(c)) and section 417(c) of the Domestic 
Volunteer Service Act of 1973 (42 U.S.C. 5057(c))'. '
  ``(b) Before providing assistance to a private entity referenced in 
paragraph (1), the Corporation shall ensure that written confirmation, 
separate from any other documents required by law or regulation, is 
obtained from such private entity acknowledging the recipient of 
assistance or funds has read and understands the following: `The Civil 
Rights Act of 1964 prohibits employers with 15 or more employees from 
engaging in employment practices that discriminate against an 
individual based on religion. Under section 702(a) of the Civil Rights 
Act, this prohibition generally does not apply to a religious 
corporation, association, educational institution, or society. However, 
as a requirement of receiving funding under the national service laws, 
any such religious entity shall not discriminate based on religion when 
employing new staff paid with funds received under the national service 
laws pursuant to section 175(c) of the National and Community Service 
Act of 1990 (42 U.S.C. 12635(c)) and section 417(c) of the Domestic 
Volunteer Service Act of 1973 (42 U.S.C. 5057(c))'. '
  ``(c) Subsections (a) and (b) of this section shall not amend, 
supersede, or otherwise affect rights, protections, or duties under the 
Civil Rights laws of the United States, the national service laws, or 
any other law.

``SEC. 189G. 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. 501 et seq.) and the Government Corporation Control Act of 
1945 (31 U.S.C. 9101 et seq.). The Corporation shall report to the 
Congress any failure to comply with the requirements of such audits.''.

  Subtitle G--Amendments to Subtitle G (Corporation for National and 
                           Community Service)

SEC. 1701. TERMS OF OFFICE.

  Section 192 (42 U.S.C. 12651a) is amended--
          (1) by striking subsection (c) and inserting the following:
  ``(c) Terms.--Subject to subsection (e), each appointed member shall 
serve for a term of 5 years.''; and
          (2) by adding at the end the following:
  ``(e) Service Until Appointment of Successor.--A voting member of the 
Board whose term has expired may continue to serve until the earlier 
of--
          ``(1) the date on which a successor has taken office; or
          ``(2) the date on which the Congress adjourns sine die to end 
        the session of Congress that commences after the date on which 
        the member's term expired.''.

SEC. 1702. BOARD OF DIRECTORS AUTHORITIES AND DUTIES.

  Section 192A(g) (42 U.S.C. 12651b(g)) is amended--
          (1) in the matter preceding paragraph (1) by striking 
        ``shall--'' and inserting ``shall have responsibility for 
        setting overall policy for the Corporation and shall--'';
          (2) by striking paragraphs (2) and (11);
          (3) by redesignating paragraphs (3) through (10) as 
        paragraphs (2) through (9), respectively;
          (4) in paragraph (8) (as redesignated by this section), by 
        inserting ``and'' after ``Corporation;''; and
          (5) in paragraph (9) (as redesignated by this section), by 
        striking ``program; and'' and inserting ``program under a cost 
        share agreement, as determined by the Corporation, in which the 
        funds advanced or received as reimbursement shall be credited 
        directly to a current appropriation.''.

SEC. 1703. PEER REVIEWERS.

  Section 193A (42 U.S.C. 12651d) is amended--
          (1) in subsection (b)--
                  (A) in paragraph (9)(C), by striking the semicolon 
                and inserting ``; and'';
                  (B) by striking paragraph (10); and
                  (C) by redesignating paragraph (11) as paragraph 
                (10);
          (2) in subsection (c)--
                  (A) in paragraph (9), by striking ``and'' at the end;
                  (B) by redesignating paragraph (10) as paragraph 
                (11); and
                  (C) by inserting after paragraph (9) the following:
          ``(10) obtain the opinions of peer reviewers in evaluating 
        applications to the Corporation for assistance under this 
        title; and'';
          (3) by striking subsection (f); and
          (4) by redesignating subsection (g) as subsection (f).

SEC. 1704. NONVOTING MEMBERS; PERSONAL SERVICES CONTRACTS.

  Section 195 (42 U.S.C. 12651f) is amended--
          (1) in subsection (c)(3)--
                  (A) in the heading, by striking ``Member'' and 
                inserting ``Non-voting member''; and
                  (B) by inserting ``non-voting'' before ``member''; 
                and
          (2) by adding at the end the following new subsection:
  ``(g) Personal Services Contracts.--The Corporation may enter into 
personal services contracts to carry out research, evaluation, and 
public awareness related to the national service laws.''.

SEC. 1705. DONATED SERVICES.

  Section 196(a) (42 U.S.C. 12651g(a)) is amended--
          (1) in paragraph (1)--
                  (A) by striking subparagraph (A) and inserting the 
                following:
                  ``(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) of this Act (42 U.S.C. 
                12651b(d)).'';
                  (B) in subparagraph (B)--
                          (i) in the matter preceding clause (i), by 
                        striking ``Such a volunteer'' and inserting 
                        ``An individual who provides services under 
                        this subtitle'';
                          (ii) in clause (i), by striking ``a 
                        volunteer'' and inserting ``an individual who 
                        provides services'';
                          (iii) in clause (ii), by striking 
                        ``volunteers'' and inserting ``individuals who 
                        provide services''; and
                          (iv) in clause (iii), by striking ``such a 
                        volunteer'' and inserting ``an individual who 
                        provides such services''; and
                  (C) in subparagraph (C)(i), by striking ``Such a 
                volunteer'' and inserting ``An individual who provides 
                services to the Corporation''; and
          (2) by striking paragraph (3).

                  Subtitle H--Amendments to Subtitle H

SEC. 1801. TECHNICAL AMENDMENTS TO SUBTITLE H.

  Section 198 (42 U.S.C. 12653) is amended--
          (1) in subsection (e)--
                  (A) in the heading, by striking ``Improve Ability to 
                Apply for Assistance'' and inserting ``Training and 
                Technical Assistance''; and
                  (B) by striking ``and other entities'' and all that 
                follows and inserting ``and other entities, including 
                those in underserved rural and urban areas, to enable 
                them to apply for funding under one of the national 
                service laws, to conduct high-quality programs, to 
                evaluate such programs, to support efforts to improve 
                the management of nonprofit organizations and community 
                groups, and for other purposes.'';
          (2) in subsection (i)--
                  (A) by striking ``conduct a campaign to''; and
                  (B) by striking ``to promote'' and inserting ``may 
                promote'';
          (3) by striking subsection (q) and redesignating subsections 
        (r) and (s) as subsections (q) and (r), respectively;
          (4) in subsection (q) (as redesignated by this section), by 
        striking the heading ``Assistance for Head Start'' and 
        inserting ``Agreements with Foster Grandparent Programs''; and
          (5) by adding at the end the following new subsections:
  ``(s) Chief Executive Officer Discretionary Grants.--
          ``(1) Authority.--The Chief Executive Officer is authorized 
        to make grants, consistent with policies and procedures 
        established by the Board of Directors, including grants made on 
        the basis of an unsolicited application, to any entity eligible 
        for assistance under the national service laws to support 
        greater engagement of citizens in service and volunteerism.
          ``(2) Matching funds.--The Chief Executive Officer shall 
        require recipients of grants under this subsection to provide 
        matching funds from non-Federal sources.
          ``(3) Report.--The Chief Executive Officer shall report to 
        Congress on an annual basis on any grants made under this 
        subsection.
  ``(t) Volunteer Service Technology Program.--The Corporation may 
provide grants for Volunteer Service Technology Programs to assist 
Internet volunteer recruiting entities to locate, promote, and match 
volunteers with local service and volunteer organizations. The Chief 
Executive Officer shall require recipients of grants under this 
subsection to provide matching funds from non-Federal sources.''.

SEC. 1802. REPEAL OF SPECIAL DEMONSTRATION PROJECT.

  Section 198D (42 U.S.C. 12653d) and the item relating to such section 
in the table of contents contained in section 1(b) (42 U.S.C. 12501 
note) are repealed.

                   Subtitle I--Additional Authorities

SEC. 1901. SENIOR SERVICE SCHOLARSHIPS.

  Title I (42 U.S.C. 12511 et seq.) is further amended by adding at the 
end the following new subtitle:

               ``Subtitle J--Senior Service Scholarships

``SEC. 199N. AUTHORITY TO PROVIDE ASSISTANCE AND SENIOR SERVICE 
                    SCHOLARSHIPS.

  ``(a) Provision of Assistance.--Subject to the availability of 
appropriations for this purpose, the Corporation may make grants to 
eligible entities under subsection (b) for the purpose of assisting the 
recipients of the grants in carrying out or sponsoring mentoring, 
tutoring, and other programs described in section 199P.
  ``(b) Eligible Applicants.--States, Indian tribes, other public 
agencies, and nonprofit organizations are eligible to apply for grants 
under this subtitle.
  ``(c) Provision of Senior Service Scholarships.--The Corporation may 
approve the provision of senior service scholarships described in 
section 199T for volunteers who meet the requirements in section 199S 
by serving--
          ``(1) in programs supported by assistance under subsection 
        (a); or
          ``(2) in other programs consistent with the provisions of 
        section 199P, as determined by the Corporation in consultation 
        with a State or other recipient.

``SEC. 199O. PROGRAMS ELIGIBLE FOR ASSISTANCE.

  ``(a) Tutoring and Mentoring Activities.--Grants provided under this 
subtitle may support the service of seniors in mentoring and tutoring, 
either directly or indirectly (through activities such as family 
literacy programs), individuals up to 17 years of age. Tutoring 
programs in reading for children pre-K through grade 6 supported under 
this subtitle must be research-based.
  ``(b) Other Activities.--Grants provided under this subtitle may also 
support the service of seniors to meet a wide variety of community 
needs, as set forth in the purposes of this Act.

``SEC. 199P. GRANTS.

  ``(a) Amount.--After approving an application under this subtitle, 
the Corporation may provide up to $600 per senior volunteer supported 
under this subtitle.
  ``(b) Grant Period.--Grants provided under this subtitle may cover a 
period of not more than 3 years, but may be renewed by the Corporation 
for successive periods.
  ``(c) Use of Funds.--Grants provided under this subtitle may be used 
to pay reasonable costs attributable to the development or operation of 
volunteer programs, consistent with the application approved by the 
Corporation, including--
          ``(1) reimbursing direct volunteer costs, such as 
        transportation, meals, and other items incidental to performing 
        service;
          ``(2) recruitment and training of volunteers;
          ``(3) insurance; and
          ``(4) management of volunteers.
  ``(d) Restriction.--A senior volunteer supported under this subtitle 
may not receive an amount greater than the amounts for allowances, 
stipends, and other support to senior volunteers as determined by the 
Corporation under title II of the Domestic Volunteer Service Act of 
1973 (42 U.S.C. 5000 et seq.).

``SEC. 199Q. FUNDS FOR SENIOR SERVICE SCHOLARSHIPS.

  ``(a) In General.--Funds for senior service scholarships may 
include--
          ``(1) appropriations authorized under section 501(a);
          ``(2) gifts specifically intended for senior service 
        scholarships received by the Corporation under section 
        196(a)(2); and
          ``(3) interest that accrues on the funds received by the 
        Corporation under paragraphs (1) and (2).
  ``(b) National Service Trust.--Funds received by the Corporation 
under subsection (a) shall be deposited into the National Service Trust 
established under section 145(a).
  ``(c) Investment of Funds.--The Corporation shall ensure that funds 
for senior service scholarships are invested in accordance with section 
145(b).
  ``(d) Treatment of Funds.--The Corporation shall--
          ``(1) use funds received under subsection (a) only for senior 
        service scholarships; and
          ``(2) account for funds received under subsection (a) 
        separately from other funds in the National Service Trust.
  ``(e) Expenditures From National Service Trust.--Funds received under 
subsection (a) shall be available to provide a senior service 
scholarship to a senior volunteer eligible under section 199S in an 
amount as provided in section 199T.
  ``(f) Disbursement.--Within 30 days of receiving a request from the 
recipient that meets requirements to be set by the Corporation, the 
Corporation shall disburse the senior service scholarship to the 
recipient as authorized under subtitle D.

``SEC. 199R. ELIGIBILITY TO RECEIVE A SENIOR SERVICE SCHOLARSHIP.

  ``To be eligible to receive a senior service scholarship, an 
individual must--
          ``(1) successfully complete 500 hours of service in not more 
        than 1 year in a mentoring, tutoring, or other program approved 
        by the Corporation; and
          ``(2) be 55 years of age or older at the time the individual 
        begins the period of 500 hours of service.

``SEC. 199S. AMOUNT OF SENIOR SERVICE SCHOLARSHIP.

  ``(a) In General.--The amount of a senior service scholarship for 500 
hours of service is $1,000.
  ``(b) Prorated Amount.--If an individual serves at least 250 hours 
but is unable to complete 500 hours in a 1-year period for compelling 
personal circumstances as determined by the recipient organization, the 
amount of the senior service scholarship shall be proportional to the 
number of hours actually served.''.

SEC. 1902. AMERICA'S PROMISE: THE ALLIANCE FOR YOUTH.

  Title I (42 U.S.C. 12511) is amended by adding at the end the 
following new subtitle:

        ``Subtitle K--America's Promise: The Alliance for Youth

``SEC. 199AA. AUTHORITY TO PROVIDE ASSISTANCE.

  ``Subject to the availability of appropriations for this purpose, the 
Corporation may make grants to America's Promise: The Alliance for 
Youth to support its activities relating to mobilizing communities to 
ensure that young people become productive, responsible adults.

``SEC. 199BB. ALLOWABLE COSTS.

  ``Grant funds may be used to pay costs attributable to the 
development or operation of programs consistent with a grant award 
approved by the Corporation under section 199AA.

``SEC. 199CC. CORPORATION'S CHIEF EXECUTIVE OFFICER AS EX OFFICIO 
                    MEMBER OF BOARD OF DIRECTORS.

  ``The Corporation's Chief Executive Officer may serve as an ex 
officio nonvoting member of the Board of Directors of America's 
Promise: The Alliance for Youth.''.

    Subtitle J--Amendments to Title III (Points of Light Foundation)

SEC. 1911. PURPOSE.

  Section 302 (42 U.S.C. 12661) is amended to read as follows:

``SEC. 302. PURPOSE.

  ``It is the purpose of this title--
          ``(1) to encourage every individual and every institution in 
        the Nation to help solve critical social problems by 
        volunteering time, energies, and services through community and 
        volunteer service projects and initiatives;
          ``(2) to identify successful and promising community and 
        volunteer service projects and initiatives, and to disseminate 
        information, training, and technical assistance concerning such 
        projects and initiatives to other communities in order to 
        promote and sustain their adoption nationwide;
          ``(3) to discover and encourage new leaders and develop 
        individuals and institutions that serve as strong examples of a 
        commitment to serving others and to convince all people in the 
        United States that a successful life includes serving others;
          ``(4) to encourage and facilitate the development of new 
        volunteer centers in designated localities; and
          ``(5) to strengthen the aggregate infrastructure of our 
        Nation's volunteer centers in order to maximize recruitment, 
        management, and retention.''.

SEC. 1912. BOARD OF DIRECTORS.

  Section 303 (42 U.S.C. 12662) is amended--
          (1) by redesignating subsection (b) as subsection (c); and
          (2) by inserting after subsection (a) the following:
  ``(b) Corporation's Chief Executive Officer as Ex Officio Member of 
Board of Directors.--The Corporation's Chief Executive Officer may 
serve as an ex officio nonvoting member of the Foundation's Board of 
Directors.''.

SEC. 1913. GRANTS TO THE FOUNDATION.

  Section 304 (42 U.S.C. 12663) is amended--
          (1) in subsection (a), in the matter preceding paragraph (1), 
        by striking ``a department or agency in the executive branch'' 
        and all that follows through ``the President--'' and inserting 
        ``the Corporation--''; and
          (2) by adding after subsection (b) the following new 
        subsections:
  ``(c) Endowment.--
          ``(1) In general.--Notwithstanding any other law, of the 
        funds made available each fiscal year under sections 303 and 
        501(b), up to 25 percent may be used to establish or support an 
        endowment fund, the corpus of which shall remain intact and the 
        interest income from which shall be used to support activities 
        described in this title, provided that the Foundation may 
        invest the corpus and income only in federally insured bank 
        savings accounts or comparable interest-bearing accounts, 
        certificates of deposit, money market funds, mutual funds, 
        obligations of the United States, or other market instruments 
        and securities, but not in real estate investments.
          ``(2) End of operations.--The Chief Executive Officer shall 
        obtain from the Foundation complete and accurate records of 
        Federal funds deposited in an endowment established in 
        accordance with paragraph (1). The corpus of such an endowment 
        shall revert to the Treasury if the Chief Executive Officer 
        determines that--
                  ``(A) the Foundation has ceased operations; or
                  ``(B) the Foundation is no longer capable of carrying 
                out the activities described in section 302.
  ``(d) Grants To Support Community-Based Volunteer Centers.--From 
funds made available under section 303 and 501(b), the Foundation may 
make grants to--
          ``(1) community-based organizations for the purpose of 
        facilitating the development of volunteer centers; and
          ``(2) community-based volunteer centers to support their 
        ability to recruit, manage, and retain volunteers.''.

  Subtitle K--Amendments to Title V (Authorization of Appropriations)

SEC. 1921. AUTHORIZATION OF APPROPRIATIONS.

  Section 501 (42 U.S.C. 12681) is amended to read as follows:

``SEC. 501. AUTHORIZATION OF APPROPRIATIONS.

  ``(a) Title I.--
          ``(1) Subtitle b.--
                  ``(A) In general.--There are authorized to be 
                appropriated to provide financial assistance under 
                subtitle B of title I, $55,000,000 for fiscal year 
                2003, $58,000,000 for fiscal year 2004, $61,000,000 for 
                fiscal year 2005, $65,000,000 for fiscal year 2006, and 
                such sums as may be necessary for fiscal year 2007.
                  ``(B) Programs.--Of the amount appropriated under 
                subparagraph (A) for a fiscal year--
                          ``(i) not more than 50 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 25 percent shall be 
                        available to provide financial assistance under 
                        part III of such subtitle.
          ``(2) Subtitles c, d, and h.--
                  ``(A) In general.--There are authorized to be 
                appropriated to provide financial assistance under 
                subtitles C and H of title I, to administer the 
                National Service Trust and disburse national service 
                educational awards and scholarships under subtitle D of 
                title I, and to carry out such audits and evaluations 
                as the Chief Executive Officer or the Inspector General 
                of the Corporation may determine to be necessary, 
                $415,000,000 for fiscal year 2003, and such sums as may 
                be necessary for fiscal years 2004 through 2007.
                  ``(B) Programs.--Of the amount appropriated under 
                subparagraph (A) for a fiscal year, up to 15 percent 
                shall be made available to provide financial assistance 
                under section 125, under subsections (b) and (c) of 
                section 126, and under subtitle H of title I.
                  ``(C) Subtitle c.--Of the amount appropriated under 
                subparagraph (A) for fiscal year 2003, not more than 
                $315,000,000 shall be made available to provide 
                financial assistance under section 121 of subtitle C of 
                title I.
          ``(3) Subtitle e.--There are authorized to be appropriated to 
        operate the Civilian Community Corps and provide financial 
        assistance under subtitle E of title I, $30,000,000 for fiscal 
        year 2003 and such sums as may be necessary for each of the 
        fiscal years 2004 through 2007.
          ``(4) Subtitle J (senior service scholarships program).--
        There are authorized to be appropriated to provide financial 
        assistance under subtitle J of title I $12,000,000 for fiscal 
        year 2003 and such sums as may be necessary for each of fiscal 
        years 2004 through 2007.
          ``(5) Subtitle k (america's promise).--There are authorized 
        to be appropriated to provide financial assistance under 
        subtitle K of title I $7,500,000 for fiscal year 2003 and such 
        sums as may be necessary for each of fiscal years 2004 through 
        2007.
          ``(6) Administration.--
                  ``(A) In general.--There are authorized to be 
                appropriated for the administration of this Act, 
                including financial assistance under section 126(a), 
                $34,000,000 for fiscal year 2003 and such sums as may 
                be necessary for each of fiscal years 2004 through 
                2007.
                  ``(B) Corporation.--Of the amounts appropriated under 
                subparagraph (A) for a fiscal year--
                          ``(i) up to 60 percent shall be made 
                        available to the Corporation for the 
                        administration of this Act; and
                          ``(ii) the remainder shall be available to 
                        provide financial assistance under section 
                        126(a).
  ``(b) Title III.--There are authorized to be appropriated to carry 
out title III $10,000,000 for fiscal year 2003 and such sums as may be 
necessary for each of fiscal years 2004 through 2007.
  ``(c) Availability of Appropriations.--Funds appropriated under this 
section shall remain available until expended.''.

   TITLE II--AMENDMENTS TO THE DOMESTIC VOLUNTEER SERVICE ACT OF 1973

SEC. 2001. REFERENCES.

  Except as otherwise specifically provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of a provision, the reference shall be considered to be made to a 
provision of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4950 
et seq.).

   Subtitle A--Amendments to Title I (National Volunteer Antipoverty 
                               Programs)

SEC. 2101. PURPOSE.

  Section 2(b) (42 U.S.C. 4950(b)) is amended by striking ``local 
agencies'' and inserting ``local agencies, expand relationships with, 
and support for, the efforts of civic, community, and educational 
organizations,''.

SEC. 2102. PURPOSE OF THE VISTA PROGRAM.

  Section 101 (42 U.S.C. 4951) is amended--
          (1) in the second sentence, by striking ``afflicted with'' 
        and inserting ``affected by''; and
          (2) in the third sentence, by striking ``local level'' and 
        all that follows and inserting ``local level, to support 
        efforts by local agencies and organizations to achieve long-
        term sustainability of projects initiated or expanded under the 
        VISTA program activities, and to strengthen local agencies and 
        community organizations to carry out the purpose of this part, 
        consistent with the provisions of section 187 of the National 
        and Community Service Act of 1990.''.

SEC. 2103. APPLICATIONS.

  Section 103 (42 U.S.C. 4953) is amended--
          (1) in subsection (a)(2)--
                  (A) by striking ``handicapped'' and inserting 
                ``disabled''; and
                  (B) by striking ``handicaps'' and inserting 
                ``disabilities'';
          (2) in subsection (b)(1), by striking ``recruitment and 
        placement procedures'' and inserting ``recruitment and 
        placement procedures that involve sponsoring organizations 
        and'';
          (3) in subsection (c)--
                  (A) in paragraph (1)--
                          (i) in the matter preceding subparagraph (A), 
                        by striking ``personnel described in subsection 
                        (b)(2)(C)'' and inserting ``personnel described 
                        in subsection (b)(2)(C) and sponsoring 
                        organizations''; and
                          (ii) in subparagraph (F), by striking 
                        ``National and Community Service Trust Act of 
                        1993'' and inserting ``National and Community 
                        Service Act of 1990''; and
                  (B) in paragraph (3), by striking ``this subsection'' 
                and inserting ``this subsection and related public 
                awareness and recruitment activities under the national 
                service laws'';
          (4) in subsection (g) by striking ``and has been submitted to 
        the Governor'' and all that follows and inserting a period; and
          (5) by adding at the end the following:
  ``(i) The Director may enter into agreements under which public and 
private nonprofit organizations with sufficient financial capacity and 
size pay for all or a portion of the costs of supporting the service of 
volunteers under this title, consistent with the provisions of section 
187 of the National and Community Service Act of 1990.''.

SEC. 2104. TERMS AND PERIODS OF SERVICE.

  Section 104 (42 U.S.C. 4954) is amended--
          (1) by striking subsection (a) and inserting the following:
  ``(a)(1) Except as provided in paragraphs (2) through (4), volunteers 
serving under this part shall be required to make a full-time personal 
commitment to combating poverty and poverty-related problems. To the 
maximum extent practicable, the requirement for full-time commitment 
shall include a commitment to live among and at the economic level of 
the people served, and to remain available for service without regard 
to regular working hours, at all times during their periods of service, 
except for authorized periods of leave.
  ``(2) The requirements in paragraph (1) shall not apply to up to 25 
percent of volunteers enrolled in fiscal year 2003 and up to 50 percent 
of volunteers enrolled in fiscal year 2004.
  ``(3) Not later than September 30, 2004, the General Accounting 
Office shall submit a report to Congress on whether the changes 
provided in paragraph (2) have had a material and adverse effect on the 
ability of the VISTA program to combat poverty and poverty-related 
problems, such as increased attrition rates among volunteers and 
difficulties in recruiting volunteers.
  ``(4) Unless the report described in paragraph (3) concludes that the 
changes provided in paragraph (2) have caused a material and adverse 
effect on the ability of the VISTA program to combat poverty and 
poverty-related problems, the requirements in paragraph (1) shall not 
apply to up to 75 percent of volunteers enrolled in fiscal year 2005 
and up to 100 percent of volunteers enrolled in fiscal year 2006 and 
thereafter.'';
          (2) in subsection (b)(2), by striking ``if the Director 
        determines'' and all that follows and inserting ``if they are 
        enrolled in a term of service of at least 1,700 hours for which 
        the requirements of subsection (a)(1) do not apply.''; and
          (3) in subsection (d)--
                  (A) in the first sentence, by striking ``with the 
                terms and conditions of their service.'' and inserting 
                ``with the terms and conditions of their service or any 
                adverse action, including termination, proposed by the 
                sponsoring organization. The procedure shall provide 
                for an appeal to the Director of any proposed 
                termination.''; and
                  (B) in the third sentence (as amended by this 
                section), by striking ``and the terms and conditions of 
                their service''.

SEC. 2105. SECTIONS REPEALED.

  Sections 109 and 124 (42 U.S.C. 4959) and the items relating to such 
sections in the table of contents are repealed.

SEC. 2106. UNIVERSITY YEAR FOR VISTA PROGRAM.

  Section 111(b) (42 U.S.C. 4971(b)) is amended in the third sentence 
by striking ``agencies, institutions, and situations'' and inserting 
``agencies and institutions, including civic, community, and 
educational organizations,''.

SEC. 2107. CONFORMING AMENDMENT.

  Section 121 is amended in the second sentence by striking `agencies, 
institutions, and situations'' and inserting ``agencies and 
institutions, including civic, community, and educational 
organizations''.

  Subtitle B--Amendments to Title II (National Senior Volunteer Corps)

SEC. 2201. CHANGE IN NAME.

  Title II (42 U.S.C. 5000 et seq.) is amended in the title heading by 
striking ``NATIONAL SENIOR VOLUNTEER CORPS'' and inserting ``NATIONAL 
SENIOR SERVICE CORPS''.

SEC. 2202. PURPOSE.

  Section 200 (42 U.S.C. 5000) is amended to read as follows:

``SEC. 200. STATEMENT OF PURPOSE.

  ``It is the purpose of this title to provide--
          ``(1) opportunities for senior service to meet unmet local, 
        State, and national needs in the areas of education, public 
        safety, health and human needs, and the environment;
          ``(2) for the National Senior Service Corps, comprised of the 
        Retired and Senior Volunteer Program, the Foster Grandparent 
        Program, and the Senior Companion Program, and demonstration 
        and other programs to empower older individuals to contribute 
        to their communities through service, enhance the lives of 
        those who serve and those whom they serve, and provide 
        communities with valuable services;
          ``(3) opportunities for people 55 years of age or older, 
        through the Retired and Senior Volunteer Program, to share 
        their experiences, abilities, and skills for the betterment of 
        their communities and themselves;
          ``(4) opportunities for people 55 years of age or older, 
        through the Foster Grandparents Program, to have a positive 
        impact on the lives of children in need;
          ``(5) opportunities for people 55 years of age or older, 
        through the Senior Companion Program, to provide critical 
        support services and companionship to adults at risk of 
        institutionalization and who are struggling to maintain a 
        dignified independent life; and
          ``(6) for research, training, demonstration, and other 
        program activities to increase and improve opportunities for 
        seniors to meet unmet needs, including those related to 
        emergency preparedness, public safety, public health, and 
        disaster relief, in their communities.''.

SEC. 2203. GRANTS AND CONTRACTS FOR VOLUNTEER SERVICE PROJECTS.

  Section 201 (42 U.S.C. 5001) is amended--
          (1) in subsection (a), in the matter preceding paragraph (1), 
        by striking ``avail themselves of opportunities for volunteer 
        service in their community'' and inserting ``share their 
        experiences, abilities, and skills for the betterment of their 
        communities and themselves'';
          (2) in paragraph (2), by striking ``, and individuals 60 
        years of age or older will be given priority for enrollment,'';
          (3) by striking subsection (c); and
          (4) by redesignating subsection (d) as subsection (c).

SEC. 2204. FOSTER GRANDPARENT PROGRAM GRANTS.

  Section 211 (42 U.S.C. 5011) is amended--
          (1) in subsection (a), by striking ``low-income persons aged 
        sixty or over'' and inserting ``low-income and other persons 
        aged 55 or over'';
          (2) in subsection (b)--
                  (A) in paragraph (1)--
                          (i) in the matter preceding subparagraph (A), 
                        by striking ``shall have the exclusive 
                        authority to determine, pursuant to the 
                        provisions of paragraph (2) of this 
                        subsection--'' and inserting ``may determine--
                        '';
                          (ii) in subparagraph (A), by striking 
                        ``and'';
                          (iii) in subparagraph (B), by striking the 
                        period and inserting ``; and''; and
                          (iv) by adding after subparagraph (B) the 
                        following:
          ``(C) whether it is in the best interests of a child 
        receiving, and of a particular foster grandparent providing, 
        services in such a project, to continue such relationship after 
        the child reaches the age of 21, if such child was receiving 
        such services prior to attaining the age of 21.'';
                  (B) by striking paragraph (2); and
                  (C) by redesignating paragraph (3) as paragraph (2);
          (3) in paragraph (2) (as redesignated by this section), by 
        striking ``paragraphs (1) and (2)'' and inserting ``paragraph 
        (1)'';
          (4) by adding after paragraph (2) (as redesignated by this 
        section) the following:
  ``(3) If an assignment of a foster grandparent is suspended or 
discontinued, the replacement of that foster grandparent shall be 
determined through the mutual agreement of all parties involved in the 
provision of services to the child.'';
          (5) in subsection (d)--
                  (A) in the first sentence, by striking ``low-income 
                persons serving as volunteers under this part, such 
                allowances, stipends, and other support'' and inserting 
                ``low-income persons and persons eligible under 
                subsection (h) serving as volunteers under this part, 
                such allowances or stipends''; and
                  (B) by striking the second sentence and all that 
                follows and inserting the following: ``Any stipend or 
                allowance provided under this part shall not exceed 75 
                percent of the minimum wage under the Fair Labor 
                Standards Act of 1938 (29 U.S.C. 201 et seq.), with the 
                Federal share not to exceed $2.65 per hour, provided 
                that the Director shall adjust the Federal share once 
                prior to December 31, 2007, to account for 
                inflation.'';
          (6) in subsection (e)(1), by striking ``125'' and inserting 
        ``200'';
          (7) by striking subsection (f) and inserting:
  ``(f)(1) Subject to the restrictions in paragraph (3), individuals 
who are not low-income persons may serve as volunteers under this part. 
The regulations issued by the Director to carry out this part (other 
than regulations relating to stipends or allowances to individuals 
authorized by subsections (d) and (h)) shall apply to all volunteers 
under this part, without regard to whether such volunteers are eligible 
to receive a stipend or allowance under subsection (d) or (h).
  ``(2) Except as provided under paragraph (1), each recipient of a 
grant or contract to carry out a project under this part shall give 
equal treatment to all volunteers who participate in such project, 
without regard to whether such volunteers are eligible to receive a 
stipend or allowance under subsection (d) or (h).
  ``(3) An individual who is not a low-income person may not become a 
volunteer under this part if allowing that individual to become a 
volunteer under this part would prevent a low-income person from 
becoming a volunteer under this part or would displace a low-income 
person from being a volunteer under this part.''; and
          (8) by adding at the end the following new subsections:
  ``(g) The Director may also provide a stipend or allowance in an 
amount not to exceed 10 percent more than the amount established under 
subsection (d) to leaders who, on the basis of past experience as 
volunteers, special skills, and demonstrated leadership abilities, may 
coordinate activities, including training, and otherwise support the 
service of volunteers under this part.
  ``(h) The Director may provide payments under subsection (d) for up 
to 15 percent of volunteers serving in a project under this part for a 
fiscal year who do not meet the definition of `low-income' under 
subsection (e), upon certification by the recipient of a grant or 
contract that it is unable to effectively recruit and place low-income 
volunteers in the number of placements approved for the project.''.

SEC. 2205. SENIOR COMPANION PROGRAM GRANTS.

  Section 213 (42 U.S.C. 5013) is amended--
          (1) in subsection (a), by striking ``low-income persons aged 
        60 or over'' and inserting ``low-income and other persons aged 
        55 or over'';
          (2) in subsection (b), by striking ``Subsections (d), (e), 
        and (f)'' and inserting ``Subsections (d) through (h)''; and
          (3) by striking subsection (c)(2)(B) and inserting the 
        following:
  ``(B) Senior companion volunteer trainers and leaders may receive a 
stipend or allowance consistent with subsection (g) authorized under 
subsection (d) of section 211, as approved by the Director.''.

SEC. 2206. TECHNICAL AMENDMENTS.

  (a) Change in Age Eligibility.--Section 223 (42 U.S.C. 5023) is 
amended by striking ``sixty years and older'' and inserting ``55 years 
and older''.
  (b) Name Change.--Section 224 (42 U.S.C. 5024) is amended in the 
heading by striking ``volunteer'' and inserting ``service''.

SEC. 2207. PROGRAMS OF NATIONAL SIGNIFICANCE.

  Section 225 (42 U.S.C. 5025) is amended--
          (1) in subsection (a)(1), by striking ``With not less than 
        one-third of the funds made available'' and inserting ``With 
        funds made available''; and
          (2) in subsection (b), by adding after paragraph (18) the 
        following:
          ``(19) Programs that strengthen community efforts in support 
        of homeland security.''.

SEC. 2208. ADDITIONAL PROVISIONS.

  Title II (42 U.S.C. 5000 et seq.) is amended by adding after section 
227 the following new sections:

``SEC. 228. PARTICIPATION REGARDLESS OF INCOME LEVEL.

  ``(a) General.--Participation in programs and activities under this 
title shall be open to seniors regardless of income level.
  ``(b) Participation of Low-Income Individuals Encouraged.--
Notwithstanding subsection (a), the Corporation shall take appropriate 
steps, including conducting outreach at the national level and 
requiring measures at the local level, to ensure the inclusion of low-
income persons in programs and activities authorized under this title.

``SEC. 229. CONTINUITY OF SERVICE.

  ``To ensure the continued service of individuals in communities 
served by Retired and Senior Volunteer programs, Foster Grandparent 
programs, and Senior Companion programs prior to enactment of this 
section, in making grants under this title the Corporation shall take 
actions it considers necessary to maintain service assignments for such 
seniors and to ensure continuity of service for communities.

``SEC. 229A. TRAINING AND RESEARCH.

  ``From funds appropriated each fiscal year to carry out subtitle II, 
the Corporation may reserve up to $10,000,000 to support research and 
training designed to improve the effectiveness of programs supported 
under subtitle II.''.

  Subtitle C--Amendments to Title IV (Administration and Coordination)

SEC. 2301. NONDISPLACEMENT.

  Section 404(a) is amended by striking ``displacement of employed 
workers'' and inserting ``displacement of employed workers or 
volunteers (other than participants under the national service laws)''.

SEC. 2302. DEFINITIONS.

  Section 421 (42 U.S.C. 5061) is amended--
          (1) in paragraph (13), by striking ``National Senior 
        Volunteer Corps'' and inserting ``National Senior Service 
        Corps''; and
          (2) in paragraph (14)--
                  (A) by striking ``National Senior Volunteer Corps'' 
                and inserting ``National Senior Service Corps''; and
                  (B) by striking ``parts A, B, C, and E of'';

SEC. 2303. PROTECTION AGAINST IMPROPER USE.

  Section 425 (42 U.S.C. 5065) is amended by striking ``National Senior 
Volunteer Corps'' and inserting ``National Senior Service Corps''.

SEC. 2304. INCOME VERIFICATION.

  Title IV is amended by adding after section 425 the following new 
section:

``SEC. 426. INCOME VERIFICATION.

  ``Each organization that receives assistance under this Act may 
verify the income eligibility of volunteers based on a confidential 
declaration of income and with no requirements for verification.''.

SEC. 2305. SECTIONS REPEALED.

  Sections 412 and 416 (42 U.S.C. 5052 and 5056), and the items 
relating to such sections in the table of contents contained in section 
1(b), are repealed.

  Subtitle D--Amendments to Title V (Authorization of Appropriations)

SEC. 2401. AUTHORIZATION OF APPROPRIATIONS FOR VISTA AND OTHER 
                    PURPOSES.

  Section 501 (42 U.S.C. 5081) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (1), by striking ``, excluding 
                section 109'' and all that follows and inserting 
                ``$90,000,000 for fiscal year 2003 and such sums as may 
                be necessary for each of the fiscal years 2004 through 
                2007.'';
                  (B) by striking paragraphs (2) and (4) and 
                redesignating paragraphs (3) and (5) as paragraphs (2) 
                and (3); and
                  (C) in paragraph (2) (as redesignated by this 
                section), by striking ``, excluding section 125'' and 
                all that follows and inserting ``$5,000,000 for fiscal 
                year 2003 and such sums as may be necessary for each of 
                the fiscal years 2004 through 2007.''; and
          (2) by striking subsection (e).

SEC. 2402. AUTHORIZATION OF APPROPRIATIONS FOR NATIONAL SENIOR SERVICE 
                    CORPS.

  Section 502 (42 U.S.C. 5082) is amended to read as follows:

``SEC. 502. NATIONAL SENIOR SERVICE CORPS.

  ``(a) Retired and Senior Volunteer Program.--There are authorized to 
be appropriated to carry out part A of title II, $58,884,000 for fiscal 
year 2003 and such sums as may be necessary for each of the fiscal 
years 2004 and 2007.
  ``(b) Foster Grandparent Program.--There are authorized to be 
appropriated to carry out part B of title II, $110,000,000 for fiscal 
year 2003 and such sums as may be necessary for each of the fiscal 
years 2004 and 2007.
  ``(c) Senior Companion Program.--There are authorized to be 
appropriated to carry out part C of title II, $46,563,000 for fiscal 
year 2003 and such sums as may be necessary for each of the fiscal 
years 2004 and 2007.
  ``(d) Demonstration Programs.--There are authorized to be 
appropriated to carry out part E of title II, $400,000 for fiscal year 
2003 and such sums as may be necessary for each of the fiscal years 
2004 through 2007.''.

SEC. 2403. ADMINISTRATION AND COORDINATION.

  Section 504 (42 U.S.C. 5084) is amended to read as follows:

``SEC. 504. ADMINISTRATION AND COORDINATION.

  ``There are authorized to be appropriated for the administration of 
this Act $33,568,000 for fiscal year 2003 and such sums as may be 
necessary for each of fiscal years 2004 through 2007.''.

                  TITLE III--AMENDMENTS TO OTHER LAWS

SEC. 3101. INSPECTOR GENERAL ACT.

  Section 8E(a)(1) of the Inspector General Act (5 U.S.C. App.) is 
amended by striking ``National and Community Service Trust Act of 
1993'' and inserting ``National and Community Service Act of 1990''.

          TITLE IV--TECHNICAL AMENDMENTS TO TABLES OF CONTENTS

SEC. 4101. TABLE OF CONTENTS FOR THE NATIONAL AND COMMUNITY SERVICE ACT 
                    OF 1990.

  Section 1(b) of the National and Community Service Act of 1990 (42 
U.S.C. 12501, note) is amended to read as follows:
  ``(b) Table of Contents.--The table of contents is as follows:

``Sec. 1. Short title and table of contents.
``Sec. 2. Findings and purpose.

        ``TITLE I--NATIONAL AND COMMUNITY SERVICE GRANT PROGRAM

                    ``Subtitle A--General Provisions

``Sec. 101. Definitions.
``Sec. 102. Authority to make State grants.

                ``Subtitle B--Service Learning Programs

                    ``Part I--Serve-America Programs

``Sec. 111. Assistance to States and Indian tribes.
``Sec. 112. Allotments.
``Sec. 113. Applications.
``Sec. 114. Consideration of applications.
``Sec. 115. Federal, State, and local contributions.
``Sec. 116. Limitations on uses of funds.

 ``Part II--Higher Education Innovative Programs for Community Service

``Sec. 119. Higher education innovation programs for community service.

    ``Part III--Community-Based Programs, Training, and Initiatives

``Sec. 120. Community-based programs, training, and other initiatives.

                        ``Part IV--Clearinghouse

``Sec. 120A. Service-learning clearinghouse.

             ``Subtitle C--National Service Trust Programs

                ``Part I--Investment in National Service

``Sec. 121. Authority to provide assistance and approved national 
service positions.
``Sec. 122. Types of national service programs eligible for program 
assistance.
``Sec. 123. Types of national service positions eligible for approval 
for national service educational awards.
``Sec. 124. Types of program assistance.
``Sec. 125. Training and technical assistance.
``Sec. 126. Other special assistance.

              ``Part II--Application and Approval Process

``Sec. 129. Provision of assistance and approved national service 
positions.
``Sec. 129A. Pilot authority for member-based national service 
positions.
``Sec. 129B. Education awards program.
``Sec. 129C. Fixed amount grants.
``Sec. 130. Application for assistance and approved national service 
positions.
``Sec. 131. National service program assistance requirements.
``Sec. 132. Ineligible service categories.
``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 National Service 
                           Educational Awards

``Sec. 145. Establishment of the National Service Trust.
``Sec. 146. Individuals eligible to receive a national service 
educational award from the Trust.
``Sec. 147. Determination of the amount of the national service 
educational award.
``Sec. 148. Disbursement of national service educational awards.
``Sec. 149. Use by participants with disabilities.
``Sec. 149A. Service-based scholarships to high school students.

            ``Subtitle E--National Civilian Community Corps

``Sec. 151. Purpose.
``Sec. 152. Establishment of Civilian Community Corps program.
``Sec. 153. National service program.
``Sec. 154. Summer national service program.
``Sec. 155. 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 other departments.
``Sec. 164. Annual evaluation.
``Sec. 166. Definitions.
``Sec. 167. Emergency Response Corps.

                ``Subtitle F--Administrative Provisions

``Sec. 171. Family and medical leave.
``Sec. 172. Reports.
``Sec. 173. Supplementation.
``Sec. 174. Prohibition on use of funds.
``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. 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. 185. Consolidated application and reporting requirements.
``Sec. 186. Accountability for results.
``Sec. 187. Sustainability.
``Sec. 188. Use of recovered funds.
``Sec. 189. Capacity building.
``Sec. 189A. Expenses of attending meetings.
``Sec. 189B. Fees.
``Sec. 189C. Grant periods.
``Sec. 189D. Generation of volunteers.
``Sec. 189E. Limitation on program grant costs.
``Sec. 189F. Notice requirement.
``Sec. 189G. Audits and reports.

      ``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.

          ``Subtitle H--Investment for Quality and Innovation

``Sec. 198. Additional corporation activities to support national 
service.
``Sec. 198A. Clearinghouses.
``Sec. 198B. Presidential awards for service.
``Sec. 198C. Military installation conversion demonstration programs.

          ``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. 199I. 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--Senior Service Scholarships

``Sec. 199N. Authority to provide assistance and Senior Service 
Scholarships.
``Sec. 199O. Programs eligible for assistance.
``Sec. 199P. Grants.
``Sec. 199Q. Funds for Senior Service Scholarships.
``Sec. 199R. Eligibility to receive a Senior Service Scholarship.
``Sec. 199S. Amount of Senior Service Scholarship.

        ``Subtitle K--America's Promise: The Alliance for Youth

``Sec. 199AA. Authority to provide assistance.
``Sec. 199BB. Allowable costs.
``Sec. 199CC. Corporation's Chief Executive Officer as ex officio 
member of board of directors.

             ``TITLE II--MODIFICATIONS OF EXISTING PROGRAMS

                       ``Subtitle A--Publication

``Sec. 201. Information for students.
``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 C--Amendments to Student Literacy Corps

``Sec. 221. Amendments to Student Literacy Corps.

                ``TITLE III--POINTS OF LIGHT FOUNDATION

``Sec. 301. Short title.
``Sec. 302. Findings and purposes.
``Sec. 303. Authority.
``Sec. 304. Grants to the Foundation.
``Sec. 305. Eligibility of the Foundation for grants.

       ``TITLE IV--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. 4102. TABLE OF CONTENTS FOR THE DOMESTIC VOLUNTEER SERVICE ACT OF 
                    1973.

  Section 1(b) of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 
4950 note) is amended to read as follows:
  ``(b) Table of Contents.--The table of contents is as follows:

``Sec. 1. Short title; table of contents.
``Sec. 2. Volunteerism policy.

           ``TITLE I--NATIONAL VOLUNTEERS ANTIPOVERTY PROGRAM

               ``Part A--Volunteers in Service to America

``Sec. 101. Statement of purpose.
``Sec. 102. Authority to operate VISTA program.
``Sec. 103. Selection and assignment of volunteers.
``Sec. 104. Terms and periods of service.
``Sec. 105. Support service.
``Sec. 106. Participation of beneficiaries.
``Sec. 107. Participation of younger and older persons.
``Sec. 108. Limitation.
``Sec. 110. Applications for assistance.

                  ``Part B--University Year for VISTA

``Sec. 111. Statement of purpose.
``Sec. 112. Authority to operate University Year for VISTA program.
``Sec. 113. Special conditions.

                  ``Part C--Special Volunteers Program

``Sec. 121. Statement of purpose.
``Sec. 122. Authority to establish and operate special volunteer and 
demonstration programs.
``Sec. 123. Technical and financial assistance.

               ``TITLE II--NATIONAL SENIOR SERVICE CORPS

``Sec. 200. Statement of purposes.

             ``Part A--Retired and Senior Volunteer Program

``Sec. 201. Grants and contracts for volunteer service projects.

                  ``Part B--Foster Grandparent Program

``Sec. 211. Grants and contracts for volunteer service projects.

                   ``Part C--Senior Companion Program

``Sec. 213. Grants and contracts for volunteer service projects.

                      ``Part D--General Provisions

``Sec. 221. Promotion of National Senior Volunteer Corps.
``Sec. 222. Payments.
``Sec. 223. Minority group participation.
``Sec. 224. Use of locally generated contributions in National Senior 
Volunteer Corps.
``Sec. 225. Programs of national significance.
``Sec. 226. Adjustments to Federal financial assistance.
``Sec. 227. Multiyear grants or contracts.
``Sec. 228. Participation regardless of income level.
``Sec. 229. Continuity of service.
``Sec. 229A. Training and research.

                    ``Part E--Demonstration Programs

``Sec. 231. Authority of Director.

              ``TITLE IV--ADMINISTRATION AND COORDINATION

``Sec. 403. Political activities.
``Sec. 404. Special limitations.
``Sec. 406. Labor standards.
``Sec. 408. Joint funding.
``Sec. 409. Prohibition of Federal control.
``Sec. 410. Coordination with other programs.
``Sec. 411. Prohibition.
``Sec. 414. Distribution of benefits between rural and urban areas.
``Sec. 415. Application of Federal law.
``Sec. 417. Nondiscrimination provisions.
``Sec. 418. Eligibility for other benefits.
``Sec. 419. Legal expenses.
``Sec. 421. Definitions.
``Sec. 422. Audit.
``Sec. 423. Reduction of paperwork.
``Sec. 424. Review of project renewals.
``Sec. 425. Protection against improper use.
``Sec. 426. Income verification.

               ``TITLE V--AUTHORIZATION OF APPROPRIATIONS

``Sec. 501. National volunteer antipoverty programs.
``Sec. 502. National Senior Service Corps.
``Sec. 504. Administration and coordination.
``Sec. 505. Availability of appropriations.

           ``TITLE VI--AMENDMENTS TO OTHER LAWS AND REPEALERS

``Sec. 601. Supersedence of Reorganization Plan No. 1 of July 1, 1971.
``Sec. 602. Creditable service for civil service retirement.
``Sec. 603. Repeal of title VIII of the Economic Opportunity Act.
``Sec. 604. Repeal of title VI of the Older Americans Act.''.

             TITLE V--EFFECTIVE DATE AND SENSE OF CONGRESS

SEC. 5101. EFFECTIVE DATE.

  Unless specifically provided otherwise, the amendments made by this 
Act shall take effect on the date of enactment.

SEC. 5102. SERVICE ASSIGNMENTS AND AGREEMENTS.

  (a) Service Assignments.--Changes pursuant to this Act in the terms 
and conditions of terms of service and other service assignments under 
the national service laws (including the amount of the education award) 
shall apply only to individuals who enroll or otherwise begin service 
assignments after 90 days after the date of enactment of this Act, 
except when agreed upon by all interested parties.
  (b) Agreements.--Changes pursuant to this Act in the terms and 
conditions of grants, contracts, or other agreements under the national 
service laws shall apply only to such agreements entered into after 90 
days after the date of enactment of this Act, except when agreed upon 
by the parties to such agreements.

SEC. 5103. SENSE OF CONGRESS.

  It is the sense of Congress that the Corporation should, in all of 
its communications, distinguish individuals receiving stipends from 
volunteers by--
          (1) referring to participants in AmeriCorps under the 
        National and Community Service Act as ``members'';
          (2) referring to participants in the Foster Grandparents 
        program as ``Foster Grandparents''; and
          (3) referring to participants in the Senior Companions 
        program as ``Senior Companions''.

SEC. 5104. RECRUITMENT AND APPLICATION MATERIALS IN LANGUAGES OTHER 
                    THAN ENGLISH.

  It is the sense of Congress that the programs established or 
authorized by this Act, and those which receive funding under the 
National and Community Service Act of 1990 (42 U.S.C. 12501 et seq.) or 
the Domestic and Volunteer Service Act of 1973 (42 U.S.C. 4950 et seq.) 
(as amended by this Act) are encouraged to provide recruitment and 
application materials in languages other than English, if applicable, 
in order to serve communities of limited English proficiency, and that 
such programs may use such funding to provide and distribute such 
materials.

                                Purpose

    The major federally funded community service and volunteer 
programs in this country are authorized under two statutes: the 
National and Community Service Act and the Domestic Volunteer 
Service Act. H.R. 4854, the Citizen Service Act of 2002, 
reauthorizes these national service laws through fiscal year 
2007. The purposes of H.R. 4854 are to reform and strengthen 
programs under the Corporation for National and Community 
Service; implement first-time accountability measures for 
grantees under the national service laws, and make the 
Corporation for National and Community Service an effect outlet 
for leveraging volunteers and community service activities 
among the many service organizations across the country.

                            Committee Action

                         SUBCOMMITTEE HEARINGS

    On Thursday, April 11, 2002, the Subcommittee on Select 
Education held a hearing in Washington, D.C. on ``The 
Corporation for National and Community Service.'' The purpose 
of this hearing was to discuss the Administration's 
``Principles and Reforms for a Citizen Service Act'' as 
announced by President Bush on April 9, 2002, to guide the 
reauthorization of programs under the Corporation for National 
and Community Service. Dr. Leslie Lenkowsky, CEO for the 
Corporation for National and Community Service in Washington, 
D.C. and Mr. Alan Khazei, CEO for City Year in Boston, 
Massachusetts testified before the Subcommittee.
    On Thursday, April 25, 2002, the Subcommittee on Select 
Education held a hearing in Washington, D.C. on ``Citizen 
Service in the 21st Century.'' The purpose of this hearing was 
to discuss H.R. 3465, the Call to Service Act of 2001; review 
other service initiatives such as Volunteer Muskegon and the 
Alliance for Catholic Education; and to discuss issues related 
to the reauthorization of programs under the Corporation for 
National and Community Service. Representatives Christopher 
Shays (R-CT), Tom Osborne (R-NE), and Harold Ford (D-TN) 
testified on the first panel and Ms. Martha Bottomley, 
Executive Director for Volunteer Muskegon in Muskegon, Michigan 
and Reverend Timonthy Scully, Executive Vice President, 
University of Notre Dame in Notre Dame, Indiana testified 
before the Subcommittee on the second panel.

                           LEGISLATIVE ACTION

    On May 24, 2002, Representatives Pete Hoekstra (R-MI), and 
Tim Roemer (D-IN) introduced H.R. 4854, the Citizens Service 
Act of 2002, a bipartisan bill to reauthorize and reform the 
national service laws through fiscal year 2007.
    On June 5, 2002, the Subcommittee on Select Education 
considered H.R. 4854 in legislative session and reported it 
favorably, as amended, to the Committee on Education and the 
Workforce by voice vote. The Subcommittee considered two 
amendments:
     The Subcommittee adopted, by voice vote, a 
bipartisan substitute amendment offered by Representative Pete 
Hoekstra (R-MI) and Tim Roemer (D-IN). Specifically, the 
substitute amendment adopted by the Subcommittee: (1) makes 
technical and typographical corrections to the legislation; (2) 
limits the federal share of any higher education service-
learning program to 50 percent (consistent with school-based 
and community-based service-learning programs); (3) ensures 
that higher education service-learning program applications 
contain an assurance that applicants will comply with 
nonduplication, nondisplacement, and grievance procedures under 
the national service laws (consistent with school-based and 
community-based service-learning programs); (4) maintains a 
current law provision that ensures that any program participant 
has received a high school diploma or its equivalent, agrees to 
obtain a high school diploma or its equivalent, and did not 
drop out of an elementary or secondary school to enroll in the 
program; and (5) repeals outdated references and demonstration 
programs.
     The Subcommittee also adopted, by voice vote, an 
amendment offered by Representative Roemer (D-IN) to retain 
current law provisions that provide VISTA participants with 
federal employee status and benefits for certain purposes 
including retirement and workers compensation.
    On June 12, 2002, the Committee on Education and the 
Workforce considered H.R. 4854 in legislative session and 
reported it favorably, as amended, to the House of 
Representatives by voice vote. The Committee considered two 
amendments:
     The Committee adopted, by voice vote, a substitute 
amendment offered by Representative Pete Hoekstra (R-MI). 
Specifically, the substitute amendment adopted by the 
Committee: (1) makes technical and typographical corrections to 
the legislation; (2) provides for a trigger for new funding 
allocations under the AmeriCorps Grants program that ensures 
the fiscal year 2002 funding level for State competitive 
programs is maintained; (3) clarifies the hierarchy of ``team 
leaders'' and ``units'' within the National Civilian Community 
Corps (NCCC); (4) ensures that AmeriCorps participants who 
receive a living allowance do not displace unpaid volunteers 
under national service programs; (5) clarifies that programs 
are not required to refer individuals to federal or State 
assistance programs; (6) adds new statutory language to ensure 
that the Corporation complies with applicable audit and 
reporting requirements as provided in the Chief Financial 
Officers Act of 1990 and the Government Corporation Control Act 
of 1945; (7) repeals the VISTA Literacy Challenge Grants 
program, which has been supplanted by AmeriCorps and 
AmericCorps VISTA members who participate in educational 
projects; (8) includes language that discourages the 
Corporation from using the term ``volunteer'' when referring to 
members of participants that receive stipends or living 
allowances under the National and Community Service Act and the 
Senior Companions and Foster Grandparents program; and (9) 
includes authorizations for all programs under the Corporation 
for National and Community Service.
      The Committee also adopted, by voice vote, an en 
bloc amendment offered by Representative Osborne (R-NE) to 
ensure that underserved rural and urban areas and populations 
are considered for training and technical assistance 
activities. The en bloc amendment also included amendments 
offered by Representatives: (1) Keller (R-FL) to add mentoring 
activities to the allowable types of national service programs; 
(2) Miller (D-CA) to add grants for Volunteer Service 
Technology Programs to the allowable types of activities funded 
under the national service laws; (3) Solis (D-CA) to add a 
sense of Congress that programs under the national service laws 
are encouraged to provide recruitment and application materials 
in languages other than English in order to serve communities 
of limited English proficiency; (4) Andrews (D-NJ) to clarify 
that national service programs may assist in the placement, 
training, and recruitment of law enforcement, firefighter, 
rescue personnel, and disaster services trainees; and (5) 
Hoekstra (R-MI) to require grantees to report the amount and 
source of any federal funds used for living allowances other 
than those provided by the Corporation.

                                Summary

                   NATIONAL AND COMMUNITY SERVICE ACT

    General Provisions.--Broadens the scope of the purpose to: 
(1) expand and strengthen service-learning programs to improve 
the education of children and youth; (2) support efforts to 
make the nonprofit sector more effective in meeting the unmet 
human, educational, environmental, and public safety needs; and 
(3) assist in coordinating and strengthening federal and other 
citizen service opportunities.
    Service-Learning.--Allocates not more than 50 percent for 
school-based formula programs, not more than 25 percent for 
higher education programs, and not less than 25 percent for 
community-based programs.
    Consolidates the current law competitive and formula grant 
school-based programs into a single funding stream and 
authorizes the Corporation to award formula grants to State 
educational agencies to pay for the federal share of authorized 
service learning activities. State educational agencies are 
authorized to award competitive grants to local partnerships, 
which include local educational agencies and public or private 
nonprofit organizations.
    Authorizes competitive grants for high quality school-
based, community-based, and demonstration programs (including 
training).
    Continues support for higher education service-learning 
programs and ensures special consideration will be given to 
applications submitted by Historically Black Colleges and 
Universities, Hispanic-Serving Institutions, and Tribal 
Colleges and Universities. Higher education institutions 
applying for funding would have to demonstrate compliance with 
the community service requirements established for the Federal 
Work Study Program under the Higher Education Act.
    Continues the current law Service-Learning Clearinghouse to 
assist entities carrying out State or local service-learning 
programs with needs assessments and planning, and to conduct 
research and evaluations concerning service-learning.
    Authorizes $55 million for fiscal year 2003; $58 million 
for fiscal year 2004; $61 million for fiscal year 2005; $65 
million for fiscal year 2006; and such sums as necessary for 
fiscal year 2007.
    AmeriCorps Grants.--Prohibits the Corporation from making 
grants to federal agencies.
    Provides for additional types of programs eligible for 
AmeriCorps grants that include: (1) an E-Corps program that 
involves participants who provide service in a community by 
developing and assisting in carrying out technology programs; 
(2) a program that engages citizens in public safety, public 
health, disaster relief and preparedness, and the recruitment 
and placing of qualified participants in positions to be 
trainees as law enforcement officers and rescue personnel; and 
(3) a program that expands the number of young people with 
mentors.
    Requires an AmeriCorps member who serves as a tutor in a 
program that involves elementary and secondary students to have 
at least a high school diploma (unless the tutor is a high 
school student) on a GED.
    Requires literacy programs to be based on scientifically 
based reading research and ensures that programs provide 
instruction based on the essential components of reading 
instruction as defined in P.L. 107-110, the No Child Left 
Behind Act. Also requires that reading tutors operate programs 
based on the recommendations of the National Reading Panel and 
on research from the National Institute of Child Health and 
Human Development.
    Requires the Corporation to establish requirements relating 
to the promotion of citizenship and civic engagement that are 
consistent with programs administered by the Immigration and 
Naturalization Service and ensures that any oath given under 
the national service laws is consistent with the principles of 
the federal oath of office.
    Authorizes the use of the subtitle C funds to support 
training and technical assistance for all programs authorized 
under the national service laws. In providing training and 
technical assistance, the Corporation shall ensure the needs of 
undeserved rural and urban areas and populations are addressed.
    Provides that each State may receive a minimum of $200,000 
and a maximum of $1 million per year to support the operation 
of its State commission on national and community service. Sets 
matching requirements on a sliding scale and modifies the 
requirements related to the preparation of a national and 
community service plan for each State to include approval by 
the CEO, measurable goals and outcomes, and identification of 
administrative requirements that may be waived by the 
Corporation in order to facilitate a State's ability to carry 
out the plan.
    Expands the authority for challenge grants to include all 
programs authorized under the national service laws and 
increases the private match requirement to $2 for each $1 in 
federal funds after the initial 3-year grant period.
    Allocates up to 20 percent of funds for national direct 
competitive grants; at least 35 percent of funds for State 
competitive grants; and 45 percent of funds for States by 
formula based on population. Provides for a trigger for new 
funding allocations under the AmeriCorps Grants program that 
ensures the fiscal year 2002 level for State competitive 
programs is maintained. Funding above the fiscal year 2002 
level for State competitive programs would be reserved for 
national direct grants (up to 20 percent of total funds) and 
State formula programs (45 percent of total funds).
    Authorizes the CEO of the Corporation to reserve funds to 
award grants to public or private nonprofit organizations to 
increase the participation of individuals with disabilities.
    Authorizes the CEO of the Corporation to reserve funds to 
support pilot programs, such as member-based national service 
positions that allow participants to select community service 
activities.
    Requires grantees to report the amount and source of any 
federal funds used for living allowances other than those 
provided by the Corporation.
    Expands authority for the ``education award program'' and 
provides for a maximum grant for operational support of $600 
per member.
    Authorizes AmeriCorps members to engage in capacity-
building activities, including recruiting and managing 
volunteers (increasing the involvement and participation of 
traditional volunteers would be an explicit criterion to be 
considered in making awards under national service programs).
    Authorizes $315 million for the AmeriCorps Grants program 
for fiscal year 2003 and such sums as may be necessary for 
fiscal years 2004-2007.
    National Service Trust and Education Awards.--Provides that 
funds in the National Service Trust may be used to support 
service-based scholarships to high school students and 
scholarships for senior service and permits an individual to 
receive no more than the aggregate value of two full-time 
educational awards.
    Increases the amount of the education award to $5,250 and 
authorizes it to be used to pay for attendance at educational 
institutions that meet the requirements of the Montgomery GI 
Bill as well as for educational expenses at institutions of 
higher education as defined by the Higher Education Act. 
Authorizes the education award to be disbursed directly to an 
individual with a disability to pay for education, training, or 
other work-related activities.
    Authorizes $65 million for fiscal year 2003 and such sums 
as may be necessary for fiscal years 2004-2007 for the National 
Service Trust. The National Service Trust must have sufficient 
funds to cover the costs of education awards and other 
scholarships authorized under the national service laws.
    National Civilian Community Corps (NCCC).--Broadens the 
scope of the purpose to include disaster relief and authorizes 
higher education scholarships to participants in NCCC summer 
programs.
    Provides for the use of NCCC members with prior supervisory 
experience as Team Leaders and allows Team Leaders to receive 
an additional 10 percent of the living allowance.
    Provides authority to use subtitle E funds to make grants 
to support emergency response corps, including residential 
programs, that would respond to natural and other disasters and 
opportunities for participants to be trainees as law 
enforcement officers and rescue personnel.
    Requires consultation with State commissions when 
conducting service activities within a State and repeals a 
separate advisory board established for the NCCC.
    Authorizes $30 million for fiscal year 2003 and such sums 
as may be necessary for fiscal years 2004-2007.
    Administrative Provisions.--Prohibits funding for programs 
under the national service laws that only refer individuals to 
federal or State assistance programs.
    Prohibits funding for sex education programs under the 
national service laws that do not meet the general prohibitions 
of P.L. 107-110, the No Child Left Behind Act.
    Requires consultation with the parents of legal guardians 
of children when developing and operating programs that include 
and serve children and requires the provision of the reason for 
and permission of the children's parents before transporting 
minor children (consistent with State law).
    Adopts a uniform set of procedures governing suspension or 
termination of assistance under the national service laws and 
disputes about displacement under the national service laws and 
authorizes the Corporation to consolidate or modify application 
procedures and reporting requirements to promote efficiency and 
eliminate duplicative provisions.
    Ensures that participants who receive a living allowance do 
not displace unpaid volunteers under national service programs.
    Requires the Corporation to work with grantees to establish 
performance measures; requires grantees to design corrective 
plans if they fail to meet performance measures; and provides 
authority for the Corporation to reduce or terminate grants if 
corrections are not made. Authorize the Corporation to reserve 
1 percent of funds to support program accountability.
    Authorizes the Corporation to implement measures to promote 
sustainability among programs supported under the national 
service laws and authorizes participants in programs toRecruit 
and manage unpaid volunteers to increase the capacity of community-
based organizations.
    Authorizes a standard grant period of three years for 
programs funded under the national service laws.
    Caps federal costs for programs under the national service 
laws at $16,000 per member. Permits the CEO of the Corporation 
to issue a waiver to assist grantees in meeting compelling 
needs (up to $18,000 for costs related to such things as the 
participation of individuals with disabilities and initial 
start-up costs for religious organizations and up to $20,000 
for residential programs). Requires the CEO of the Corporation 
to report to Congress annually on all waivers granted.
    Requires the Corporation to ensure that a notice regarding 
religious nondiscrimination in hiring is included in all 
materials containing information regarding the application for 
assistance provided under the national service laws.
    Adds new statutory language to ensure that the Corporation 
complies with applicable audit and reporting requirements as 
provided in the Chief Financial Officers Act of 1990 and the 
Government Corporation Control Act of 1945 and requires the 
Corporation to report to Congress any failure to comply with 
the requirements of such audits.
    Corporation for National and Community Service.--Provides 
authority for the use of peer reviewers in evaluating 
applications under the national service laws.
    Ensures that Corporation personnel may not serve as voting 
members of State commissions on national and community service.
    Authorizes the Corporation to enter into personal services 
contracts for research, evaluation, and public awareness 
functions under the national service laws.
    Authorizes the Corporation to accept donations of services 
in furtherance of the national service laws.
    Authorizes $34 million for program administration for 
fiscal year 2003 and such sums as may be necessary for fiscal 
years 2004-2007 (up to 60 percent shall be made available to 
the Corporation for the administration of this Act and the 
remainder shall be made available to State commissions on 
national and community service).
    Investment for Quality and Innovation.--Improves the 
Corporation's ability to evaluate programs and to support 
efforts to improve the management of nonprofit and community 
organizations including those in underserved rural and urban 
areas.
    Authorizes the CEO of the Corporation to award unsolicited 
discretionary grants, consistent with the national service laws 
(including accountability measures and general prohibitions) to 
support greater engagement of citizens in service and 
volunteerism.
    Authorizes the Corporation to award grants to assist 
Internet volunteer recruiting entities to locate, promote, and 
match volunteers with local service and volunteer 
organizations.
    Authorizes $30 million for fiscal year 2003 and such sums 
as may be necessary for fiscal years 2004-2007.
    Senior Service Scholarships.--Authorizes a senior 
scholarship to support tutoring, mentoring, and other service 
by seniors, who may receive a $1,000 scholarship. States, 
Indian tribes, other public agencies, and nonprofit 
organizations are eligible to apply for grants under this 
subtitle.
    Authorizes $30 million for fiscal year 2003 and such sums 
as may be necessary for fiscal years 2004-2007 ($12 million is 
authorized under this subtitle for the Corporation to provide 
up to $600 in operational support per participant and $18 
million is reserved in the National Service Trust for the 
scholarships).
    America's Promise.--Authorizes grants to America's Promise 
to support its activities relating to mobilizing communities to 
ensure that youth become productive, responsible adults.
    Authorizes $7.5 million for fiscal year 2003 and such sums 
as may be necessary for fiscal years 2004-2007.
    Points of Light Foundation.--Broadens the purpose to 
include references to volunteer service and Volunteer Centers.
    Authorizes the Foundation to use up to 25 percent of funds 
provided each year to support an endowment fund (the interest 
of which may be used to support authorized activities).
    Authorizes the Foundation to make subgrants to support the 
development and ongoing work of Volunteer Centers.
    Authorizes $10 million for fiscal year 2003 and such sums 
as may be necessary for fiscal years 2004-2007.

                     DOMESTIC VOLUNTEER SERVICE ACT

    Volunteers in Service to America (VISTA).--Retains current 
law that provides VISTA participants with federal employee 
status and benefits for certain purposes including retirement 
and workers compensation.
    Increases flexibility in operational programming authority 
for issues such as weekly time commitment of participants, 
resolution of participant complaints, and funding community 
service projects. Phases in (over 4 years and with GAO review) 
changes to the current law term of service requirements that 
would allow participants greater flexibility in the amount of 
time they serve (under current law a 12-month commitment--that 
is 24 hours a day and 7 days a week--is required). Under these 
phased-in changes, VISTA projects can allowparticipants greater 
flexibility in off-duty hours to pursue personal activities during the 
period of service (such as higher education courses and part-time 
employment to supplement the living allowance).
    Repeals the VISTA Literacy Corps and the VISTA Literacy 
Challenge Grants program, which have been supplanted by 
AmeriCorps and AmeriCorps VISTA members who participate in 
education projects.
    Authorizes $90 million for fiscal year 2003 and such sums 
as may be necessary for fiscal years 2004-2007.
    National Senior Service Corps.--Broadens scope of purpose 
to add emphasis on community needs and research and provides 
that all Senior Corps programs are open to individuals 55 and 
older (current law is 60).
    Provides that a stipend may be made available to a 
participant with an income that is up to 200 percent of 
poverty. Under current law the eligibility threshold is 125 
percent of poverty, which is $11,075 for a single person for 
2002; the new 200 percent threshold would be $17,720 (higher 
for couples, and adjusted upward in Alaska and Hawaii). The 
provision would also allow the Director to use up to 15 percent 
of funds for participants with incomes above 200 percent of 
poverty as long as the program, following innovative efforts to 
recruit, is not able to effectively recruit and place low-
income participants. The prohibition on using federal funds to 
manage, train, and support over-income volunteers who want to 
participate in the program without receiving a stipend is 
removed. Seniors may self-certify income levels.
    Continues authority to make grants to support the Retired 
and Senior Volunteer Program (RSVP), the Foster Grandparent 
program, and the Senior Companion program. Authorizes the 
Director to support Senior Corps leaders who, on the basis of 
past experience as volunteers, special skills, and demonstrated 
leadership abilities, may coordinate activities, including 
training, and otherwise support the service of volunteers.
    Authorizes the Corporation to reserve up to $10 million to 
support research and training related to Senior Corps.
    Ensures continued service opportunities for individuals 
serving in Retired and Senior Volunteer programs, Foster 
Grandparent programs, and Senior Companion programs.
    Authorizes $58.8 million for RSVP, $110 million for the 
Foster Grandparent program, and $46.5 million for the Senior 
Companion program for fiscal year 2003 and such sums as may be 
necessary for all programs for fiscal years 2004-2007.
    Administration and Coordination.--Ensures that participants 
who receive a living allowance do not displace unpaid 
volunteers under the Domestic Volunteer Service Act.
    Authorizes $33.5 million for program administration for 
fiscal year 2003 and such sums as may be necessary for fiscal 
years 2004-2007.
    Sense of Congress.--It is the sense of Congress that the 
Corporation should, in all of its communications, distinguish 
individuals receiving stipends from volunteers by: (1) 
referring to participants in AmeriCorps under the National and 
Community Service Act as ``members''; (2) referring to 
participants in the Foster Grandparents program as ``Foster 
Grandparents''; and (3) referring to participants in the Senior 
Companions program as ``Senior Companions''.
    It is the sense of Congress that programs under the 
national service laws are encouraged to provide recruitment and 
application materials in languages other than English in order 
to serve communities of limited English proficiency.

                            Committee Views

    The Retired and Senior Volunteer Program (RSVP), the Foster 
Grandparent Program, and the Senior Companion Program (which 
comprise the Senior Service Corps today) were created in the 
1960's to engage older Americans in the work of improving the 
nation. In 1969, as part of the ``War on Poverty,'' President 
Lyndon B. Johnson created Volunteers in Service to America 
(VISTA). VISTA provides opportunities for Americans to serve 
full-time to help bring individuals and communities out of 
poverty. The Domestic Volunteer Service Act of 1973 authorized 
the ACTION Agency, which administered VISTA and the Senior 
Service Corps for the next two decades.
    The expanding service movement led to the passage of the 
National and Community Service Act of 1990. This legislation, 
signed by President George H.W. Bush, created both a private, 
nonprofit organization--the Points of Light Foundation--and a 
new independent federal agency, the Commission on National and 
Community Service. Through grants and national coordination, 
the Commission supported four types of service programs: 
service-learning programs for school-aged youth, higher-
education service programs, youth corps, and national service 
demonstration models.
    In 1992, the National Civilian Community Corps (NCCC) was 
created as a demonstrated program to explore the possibility of 
using post-Cold War military resources to help solve problems 
in the United States. The NCCC, enacted as part of the 1993 
Defense Authorization Act, is a residential service program 
modeled on the Depression-era Civilian Conservation Corps and 
the United States military.
    On September 21, 1993, President William J. Clinton signed 
the National and Community Service Trust Act of 1993 into law. 
This legislation created Americorps and the Corporation for 
National and Community Service to oversee national service 
efforts and to help provide Americans of all ages and 
backgrounds with opportunities to give back to their 
communities and their nation through service. More than 2 
million Americans serve each year through the corporation's 
three main programs: AmeriCorps, Senior Corps, and Learn and 
Serve America.
    In his State of the Union address on January 29, 2002, 
President George W. Bush called on all Americans to serve their 
country for the equivalent of two years over their lifetime 
andannounced the creation of the USA Freedom Corps. The USA Freedom 
Corps has three major components: a newly created Citizen Corps to 
engage citizens in homeland security; an improved and enhanced 
AmeriCorps and Senior Corps under the Corporation for National and 
Community Service; and a strengthened Peace Corps. Under an Executive 
Order signed by the President, this citizen service initiative is 
managed by a new USA Freedom Corps Council and an Assistant to the 
President within the White House. The Committee on Education and the 
Workforce only has jurisdiction over provisions pertaining to the 
Corporation for National and Community Service.
    On April 9, 2002, President Bush unveiled his ``Principles 
and Reforms for a Citizen Service Act'' to guide the 
reauthorization of programs under the Corporation for National 
and Community Service. Specifically, the President called for 
legislation to: (1) support and encourage greater engagement of 
citizens in volunteering; (2) make federal funds more 
responsive to State and local needs; (3) make federal support 
more accountable and effective; and (4) provide greater 
assistance to community-based organizations (which include 
religious organizations). Since then, the Committee on 
Education and the Workforce has worked in a bipartisan manner 
and with the Administration to craft legislation to reform and 
enhance national service.
    On May 24, 2002, Representatives Pete Hoekstra (R-MI) and 
Tim Roemer (D-IN) introduced H.R. 4854, the Citizen Service Act 
of 2002, in response to the President's call for a bill to 
reauthorize the national service laws. H.R. 4854 will reform 
and strengthen programs under the Corporation for National and 
Community Service; implement first-time accountability measures 
for grantees under the national service laws; and make the 
Corporation for National and Community Service an effective 
outlet for leveraging community service among the many service 
organizations across the country. H.R. 4854 also addresses 
several specific issues that will help to improve national 
service provisions found in current law.

                   NATIONAL AND COMMUNITY SERVICE ACT

    Under current law, the National and Community Service Act 
authorizes four programs: AmeriCorps Grants, the National 
Civilian Community Corps, Learn and Serve America, and the 
Points of Light Foundation.

Purpose

    H.R. 4854 broadens the scope of the purpose of the National 
and Community Service Act to: (1) expand and strengthen 
service-learning programs to improve the education of children 
and youth; (2) support efforts to make the nonprofit sector 
more effective in service activities; and (3) assist in 
coordinating and strengthening federal and other citizen 
service opportunities, including opportunities for 
participation in homeland security preparedness and response, 
law enforcement and rescue service activities, other areas of 
public and social service, and international service.
    Americans are increasingly answering the President's call 
to participate in community service. Shortly after the tragic 
September 11 attacks, applications to AmeriCorps increased by 
more than 50 percent, and interest in Senior Corps programs has 
risen substantially. The spirit of community service in our 
country is stronger than ever because of the tragedy our nation 
has endured.
    The Committee recognizes this situation and includes 
emergency preparedness and homeland security activities under 
H.R. 4854. Continued safety threats and possible future attacks 
have increased demands upon our nation's safety, health, and 
emergency preparedness systems. Accordingly, the Committee 
encourages the Corporation to consult with regional, State, and 
local officials regarding homeland security activities funded 
under this Act and to appropriately fund these activities.

Service-learning

    Service-learning is designed to involve students in 
community service projects that address local needs in 
education, public safety, human services, and the environment 
in ways that benefit both the student and the community. 
Service-learning programs also encourage and foster 
collaboration among many organizations and institutions 
including schools, community-based organizations, religious 
organizations, institutions of higher education, and others to 
meet local and community needs. Under current law:
           63.75 percent of funds are reserved for 
        school-based programs (which help schools create 
        service-learning initiatives that involve elementary 
        and secondary school students in community service that 
        is integrated with their academic curricula);
           25 percent of funds are reserved for higher 
        education programs (which help institutions of higher 
        education and nonprofit organizations to create 
        service-learning initiatives that involve postsecondary 
        school students in community service that complements 
        their academic studies); and
           11.25 percent of funds are reserved for 
        community-based programs (which help community groups 
        create service-learning initiatives that involve 
        elementary and secondary school students in community 
        service).
    A 1999 U.S. Department of Education study entitled, 
``Service-Learning and Community Service in K-12 Public 
Schools,'' and conducted by the National Center for Education 
Statistics found that service and service-learning classes and 
activities are a growing trend in public elementary and 
secondary education. The study found that 32 percent of all 
public schools organized service-learning as part of their 
curriculum and that 57 percent of all public schools organized 
community service activities for their students.
    H.R. 4854 allocates 50 percent of funds under this subtitle 
for school-based programs. It consolidates the current law 
competitive and formula grant school-based programs (current 
law reserves 25 percent for federal competitive grants and 75 
percent for formula grants to State educational agencies) into 
a single funding stream and authorizes the Corporation to award 
formula grants to State educational agencies (50 percent based 
on the population of school-age youth and 50 percent based on 
title I of the Elementary and Secondary Education Act) to pay 
forthe federal share (which may not exceed 50 percent) of 
authorized service-learning activities. SEAs are authorized to award 
competitive grants to local partnerships, which include local 
educational agencies and public or private nonprofit organizations. 
Authorized school-based activities include:
           Planning and building the capacity within 
        the State to implement service-learning programs that 
        are based principally in elementary and secondary 
        schools; and
           Implementing, operating, or expanding 
        school-based service-learning programs to utilize 
        service-learning to improve academic achievement.
    H.R. 4854 allocates up to 25 percent of funds under this 
subtitle for innovative higher education programs for community 
service. It also allows higher education institutions to 
participate through a payment in cash or in kind (including 
facilities, equipment, or services).
    The Committee notes that special consideration will be 
given to higher education service-learning applications 
submitted by Historically Black Colleges and Universities, 
Hispanic-Serving Institutions, and Tribal Colleges and 
Universities. In recognition of these institutions' unique role 
in providing college opportunities to underserved groups of 
students, both the Higher Education Act and this Act provide 
opportunities for additional assistance to these institutions 
and their students. The Committee believes it is important to 
provide these institutions a special consideration in the 
service-learning grant application process in order to support 
additional educational opportunities for the students being 
served.
    The President's ``Principles and Reforms for a Citizen 
Service Act'' noted that the Federal Work Study program has as 
a purpose ``to encourage students receiving Federal student 
financial aid to participate in community service activities 
that will benefit the Nation and engender in the students a 
sense of social responsibility and commitment to the 
community.'' However, the Principles note, ``current law 
requires that colleges and universities place only 7 percent of 
Work Study students in community service positions. Even so, 
many colleges and universities fail to meet this very minimal 
requirement.'' Therefore, higher education institutions 
applying for funding would have to demonstrate compliance with 
the community service requirements established for the Federal 
Work Study Program under the Higher Education Act in order to 
be eligible to receive a grant.
    The Administration's proposal recommended that the Higher 
Education Act be amended to ``require every college and 
university to increase, over several years, the percentage of 
Federal Work Study funds devoted to community service to 50 
percent.'' The Committee is not addressing this specific 
proposal in this legislation because it is more appropriately 
considered in the context of the reauthorization of the Higher 
Education Act.
    Finally, H.R. 4854 allocates not less than 25 percent of 
funds under this subtitle for community-based programs. The 
Corporation is authorized to award competitive grants for high 
quality school-based, community-based, and demonstration 
programs which may include training for service-related 
activities. Specifically, the bill authorizes the Corporation 
to award grants to eligible entities (public or private 
nonprofit organizations; State educational agencies; State 
commissions on national and community service; and institutions 
of higher education) to:
           Conduct community-based programs that 
        provide for meaningful human, educational, 
        environmental, or public safety service by school-age 
        participants;
           Provide training or technical assistance to 
        support service-learning;
           Involve students in emergency preparedness 
        and homeland security activities;
           Promote the recognition of students who 
        perform outstanding community service and schools that 
        have implemented outstanding service-learning programs; 
        and
           Carry out demonstration programs, research, 
        and evaluation related to service-learning.
    In 2000, the W.K. Kellogg Foundation appointed the National 
Commission on Service-Learning to study the current state of 
service-learning in American schools. The Commission, chaired 
by former United States Senator John Glenn and co-sponsored by 
the John Glenn Institute for Public Service and Public Policy 
at Ohio State University, made four specific recommendations to 
achieve the broad goal of making service-learning a universal 
experience in American public schools:
          1. Reclaim the public purpose of education by 
        expanding the definition of student achievement to 
        include students' community contributions;
          2. Increase policy, program and financial supports 
        for service-learning in K-12 education;
          3. Develop a comprehensive system of professional 
        development regarding service-learning; and
          4. Provide meaningful leadership roles for youth in 
        all aspects of service-learning.
    The Committee also recognizes the accomplishments of the Do 
Something organization in engaging students in community-
building and leadership activities in urban, rural, and 
suburban school districts around the country. Do Something is a 
national nonprofit service, learning organization that inspires 
young people to believe that change is possible, and trains, 
funds, and mobilizes them to be leaders who measurably 
strengthen their communities. The Committee notes that Do 
Something was invited to the White House by the Bush 
Administration to provide suggestions for the creation of the 
USA Freedom Corps and is working on service-learning projects 
to offer young people positive ways to commemorate the 
September 11 attacks.
    H.R. 4854 also continues the current law Service-Learning 
Clearinghouse to assist entities carrying out State or local 
service-learning programs with needs assessments and planning, 
and to conduct research and evaluations concerning service-
learning.

AmeriCorps grants

    In fiscal year 2001, AmeriCorps received appropriated funds 
to support over 900 programs and approximately 43,000 members. 
AmeriCorps members mobilize, manage, andtrain unpaid volunteers 
to assist nonprofit groups and public agencies across the country. The 
members, and the volunteers they help organize, teach children to read, 
make neighborhoods safer, and help build affordable homes for low-
income families, among many other activities. When a new class of 
members enrolls this fall, more than 250,000 Americans 18 and older 
will have participated in AmeriCorps since it was created in 1993.
    H.R. 4854 makes several specific changes to subtitle C to 
reform AmeriCorps provisions found in current law. Those 
include:
     Requiring a High School Degree for Tutors.--
Requires an AmeriCorps member who serves as a tutor in a 
program that involves elementary and secondary students to have 
at least a high school diploma (unless the tutor is a high 
school student) or a GED. The Committee believes it is 
essential that tutors meet minimum education requirements to 
ensure that they provide quality educational assistance.
     Requiring Scientifically Based Literacy 
Programs.--Requires literacy programs under the national 
service laws to be based on scientifically based reading 
research and ensures that programs provide instruction based on 
the essential components of reading instruction as defined in 
P.L. 107-110, the No Child Left Behind Act. H.R. 4854 also 
requires that reading tutors operate programs based on the 
recommendations of the National Reading Panel and on research 
from the National Institute of Child Health and Human 
Development consistent with the requirements of P.L. 107-110, 
the No Child Left Behind Act. H.R. 4854 continues the 
President's focus on literacy programs and his efforts to 
ensure that all children read well and independently by the 
third grade. The Committee believes that it is important that 
literacy programs under the national service laws be consistent 
with reading instruction children receive in the classroom. 
Accordingly, H.R. 4854 provides authority to expand the number 
of literacy programs, while also ensuring that children 
participate in high quality reading programs and receive 
competent reading instruction as defined by the No Child Left 
Behind Act.
     Ensuring Sound Citizenship Training.--Directs the 
Corporation to establish requirements relating to the promotion 
of citizenship and civic engagement that are consistent with 
programs administered by the Immigration and Naturalization 
Service. Building on a pilot effort that began in fiscal year 
2001, the Committee encourages the Corporation to continue 
efforts to promote and ensure that citizenship skills are a key 
ingredient in the activities of every AmeriCorps member. H.R. 
4854 also ensures that any oath given under the national 
service laws is consistent with the principles of the federal 
oath of office.
     Training and Technical Assistance.--Authorizes the 
use of subtitle C funds to support training and technical 
assistance for all programs authorized under the national 
service laws. In providing training and technical assistance, 
the Committee encourages the Corporation to use a portion of 
these funds to improve access to service opportunities in rural 
and other underserved areas. The Committee believes that an 
increased focus on training and technical assistance activities 
will greatly benefit small community organizations and 
religious organizations that have not participated in programs 
under the national service laws in the past.
     Funding Allocations.--Ensures that 80 percent of 
funds for AmeriCorps programs are administered at the State 
level (the remaining 20 percent of funds is held at the federal 
level for competitive grants for organizations such as Habitat 
for Humanity, Teach for America, the American Red Cross, Boys 
and Girls Clubs, and others). H.R. 4854 provides that a 
significant majority of funds under this subtitle are managed 
by States and local organizations in order to allow these 
programs to respond to local needs and priorities. 
Specifically, H.R. 4854 allocates:
           Up to 20 percent of funds for national 
        direct competitive grants;
           At least 35 percent of funds for State 
        competitive grants; and
           45 percent of funds for States by formula 
        based on population.
     Flexibility in Selecting Service Activities.--
Provides new authority for the CEO of the Corporation to 
reserve funds to support member-based national service 
positions that allow AmeriCorps members to select their own 
community service activities. The Corporation is required to 
ensure that groups receiving grants under this authority are 
capable of providing the financial management and programmatic 
oversight necessary to ensure compliance with this Act. 
Providing authority for members to choose service activities 
that comply with new accountability requirements continues the 
Committee's efforts to ensure that local organizations and 
individuals have sufficient authority to make decisions about 
community service activities.
     Reporting Requirement.--Requires grantees to 
report the amount and source of any federal funds used for 
living allowances other than those provided by the Corporation. 
The Committee believes that it is appropriate and necessary for 
Congress to be made aware of how programs under the national 
service laws are supported. Specifically, current law provides 
that the federal government pays 85 percent of the costs 
associated with an AmeriCorps member's living allowance. 
However, this amount may be paid by the Corporation, other 
federal agencies, or a combination of both. This new reporting 
requirement will allow for detailed information on which 
federal programs support the living allowance costs, and to 
what extent the various federal programs provide assistance. 
This information is necessary to ensure an accurate picture of 
the costs of national service programs.
     Types of National Service Programs.--Provides for 
the following additional types of programs eligible for 
AmeriCorps grants:
           An E-Corps program that involves 
        participants who provide service in a community by 
        developing and assisting in carrying out technology 
        programs;
           A program that engages citizens in public 
        safety, public health, disaster relief and 
        preparedness, and the recruitment and placing of 
        qualified participants in positions to be trainees as 
        law enforcement officers and rescue personnel; and
           A program that expands the number of young 
        people with mentors.
    The Committee encourages the Corporation to work with the 
network of State Mentoring Partnerships to ensure that 
mentoring programs have access to high-quality resources, 
volunteers, and best practices that lead to high-quality 
mentoring programs and an increased number of young people 
served by mentoring relationships. Research on mentoring has 
shown that overall, youth participating in mentoring 
relationships improve their academic performance, are less 
likely to become involved in drug and alcohol abuse, and have 
positive social attitudes and stronger relationships with their 
families, teachers, and peers. Research also demonstrates that 
screening, orientation, and training, along with support and 
supervision, were all essential in establishing longer and 
closer mentoring relationships, which lead to greater benefits 
for young people. However, while an estimated 15.7 million 
young people could benefit from mentoring, there are only 
between 500,000 to 750,000 children who currently have a 
mentor. By utilizing the resources of State Mentoring 
Partnerships, the Committee hopes to strengthen mentoring 
programs, leading to more young people benefiting from high 
quality mentoring relationships.
     Cooperative Agreements.--H.R. 4854 prohibits the 
Corporation from awarding grants to other federal agencies. 
This prohibition maintains each federal agency's accountability 
to its authorizing and appropriations committees. However, H.R. 
4854 preserves the Corporation's authority to support service 
programs conducted by states and non-profit organizations--such 
as those homeland security, disaster response, restoring public 
lands, and rehabilitating public housing and urban recreational 
areas--by establishing cooperative agreements with other 
agencies.
    For example, President Bush has called for eliminating the 
$5 billion backlog in maintenance in our national parks. Youth 
conservation corps are a proven, cost-effective approach to 
maintaining public lands while exposing young people to public 
service and the Nation's natural treasures. The Committee 
encourages the Corporation to support such cooperative 
projects.

National Service Trust and education awards

    The National Service Trust, created in 1993, is a special 
account in the U.S. Treasury from which educational awards are 
made for eligible participants in AmeriCorps, the National 
Civilian Community Corps, and VISTA. To receive an award, a 
participant must: (1) successfully complete the required term 
of service for the program in which he or she is enrolled; (2) 
be at least 17 years old at the time the service period begins; 
(3) at the time the award is used, have received a high school 
diploma or equivalent, be enrolled at an institution of higher 
education in a program leading to a recognized credential and 
maintain satisfactory progress, or have received a waiver from 
these requirements; and (4) be a citizen or national of the 
United States or lawful permanent resident alien of the United 
States. H.R. 4854 amends subtitle D to:
           Permit an individual to receive no more than 
        the aggregate value of two full-time educational 
        awards;
           Increase the amount of the education award 
        to $5,250 (the award has been fixed at $4,725 since 
        fiscal year 1993); and
           Provide that the educational award may be 
        used to pay for attendance at educational institutions 
        that meet the requirements of the Montgomery GI Bill as 
        well as for educational expenses at institutions of 
        higher education as defined by the Higher Education 
        Act.
    The Committee believes it is important to increase the 
education award, especially as it has not been increased since 
it was created in 1993, to support the educational endeavors of 
national service participants. The Committee recognizes that 
the cost of education is rising. The increase in the amount of 
the education award will provide additional funds for those 
pursuing a post-secondary education.
    The Committee also believes that eliminating taxation of 
Education Awards would create greater educational opportunities 
for AmeriCorps members. However, the Committee recognizes that 
this issue is outside of its jurisdiction.

National Civilian Community Corps (NCCC)

    The National Civilian Community Corps (NCCC) is a federally 
operated 10-month residential program for youth ages 18-24 who 
are citizens, nationals, or lawful permanent residents aliens 
of the United States. NCCC participants address needs in the 
areas of education, public safety, environment, human needs, 
and disaster relief. NCCC participants live in one of five 
regional campuses: Washington, DC (Capital Region), Perry 
Point, MD (Northeast Region), Charleston, SC (Southeast 
Region), Denver, CO (Central Region), and San Diego, CA 
(Western Region). H.R. 4854 amends subtitle E to:
           Broaden the scope of the purpose to include 
        disaster relief;
           Authorize higher education scholarships to 
        participants in NCCC summer programs who do not meet 
        the age requirements for an education award;
           Provide for the use of NCCC members with 
        prior supervisory experience as Team Leaders and allows 
        Team Leaders to receive an additional 10 percent of the 
        living allowance; and
           Provide authority to use subtitle E funds to 
        make grants to support emergency response corps, 
        including residential programs, that would respond to 
        natural and other disasters and opportunities for 
        participants to be trainees as law enforcement officers 
        and rescue personnel.

Administrative provisions

    Subtitle F includes provisions that generally apply to all 
of the national service laws authorized under this Act. H.R. 
4854 adds several provisions to this subtitle to reform 
procedures and activities authorized under current law. Those 
include:
     Implementing Accountability Measures.--Requires 
the Corporation to work with all grantees to establish 
performance measures; requires grantees to design corrective 
plans if they fail to meet performance measures; and provides 
new authority for the Corporation to reduce or terminate grants 
if corrections are not made. Because of past fraud and abuse, 
the need for accountability measures was discussed during the 
April 11, 2002, Subcommittee on Select Education hearing on 
``The Corporation for National and Community Service.'' Dr. 
Lenkowsky, CEO for the Corporation, testified:

          To be effective, the organizations with which we work 
        must understand that failure to meet performance goals 
        will have consequences. Although there is much that can 
        be dome administratively in this area, the statute can 
        make this expectation permanent and more forceful.

    The Committee recognizes the need for strong accountability 
measures and H.R. 4854 supports the Administration's call for 
statutory accountability requirements.
     Limiting Program Costs.--Under current law, there 
is no statutory limit on the amount of money the federal 
government may spend to support individual participants among 
various programs. Accordingly, H.R. 4854 provides for a new 
statutory cap of $16,000 on federal costs per participant for 
programs under the national service laws. In addition, the new 
provision permits the CEO of the Corporation to issue a waiver 
to assist grantees in meeting compelling needs (up to $18,000 
for costs related to such things as the participation of 
individuals with disabilities and initial start-up costs for 
religious organizations and up to $20,000 for residential 
programs). H.R. 4854 also requires the CEO of the Corporation 
to report to Congress annually on all waivers granted.
    The Committee recognizes the efforts of the Corporation to 
reduce costs over the last several years, which include 
spending targets and reports on the average budgeted cost per 
AmeriCorps member. However, the Committee believes that a new 
statutory spending limit is appropriate and necessary to ensure 
fiscal discipline during the 5-year authorization of this Act. 
The new statutory cap on federal spending per member is also 
intended to make it clear that State, local, foundation, and 
private funds should be combined with federal dollars in 
implementing Corporation programs.
     Referrals for Federal Assistance and 
Coordination.--Prohibits funding for programs under the 
national service laws that only refer individuals to federal or 
State assistance programs. The Committee wishes to clarify that 
while national service programs cannot operate solely to refer 
individuals to federal assistance programs, there is no 
requirement that national service programs provide for such 
referrals. The Committee also notes that while current law 
encourages a State commission on national and community service 
or alternative administrative entity to coordinate activities 
funded under the national service laws with activities of other 
State agencies administering federal financial assistance 
programs, this coordination may not be the only goal of a 
program (??).
     Protecting and Encouraging Unpaid Volunteers.--
Authorizes AmeriCorps members to engage in capacity-building 
activities, including recruiting and managing unpaid 
volunteers. The Committee notes that increasing the involvement 
and participation of unpaid volunteers is a new explicit 
criterion to be considered in making awards under national 
service laws. H.R. 4854 also ensures that AmeriCorps members 
who receive a living allowance do not displace unpaid 
volunteers under national service programs. For fiscal year 
2002, program guidance issued by the Corporation explicitly 
stated that a fundamental purpose of AmeriCorps is to help 
mobilize, support, and manage the vast networks of volunteers 
assisting non-profit organizations. The Committee applauds 
these efforts and encourages the Corporation to focus on an 
applicant's ability to leverage unpaid volunteers when awarding 
grants under the national service laws.
     Notice Requirement.--Current law prohibits any 
individual with responsibility for operating a project that 
receives funds under the national service laws from 
discriminating on the basis of religion against a member of the 
staff of such project who is paid with funds received under the 
national service laws unless such staff member was employed 
with the organization operating the project on the date the 
grant was awarded. The language of section 175(c) and section 
417(c) only applies to individuals hired with federal funds 
after the date a grant has been awarded. It does not apply to 
individuals who are paid with federal funds, but who were 
employed by a religious organization prior to the awarding of 
the grant. At the time the National and Community Service Act 
was originally under consideration, Congress was attempting to 
strike a Constitutionally permissible balance, under the 
prevailing law of the time, between permitting faith-based 
organizations to participate in federally funded community 
service programs and ensuring that federal funds are not used 
for the promotion of religion.
    Section 417(c) of the Domestic Volunteer Service Act of 
1973 was amended to contain the current restriction as part of 
the Act amending the National and Community Service Act of 1990 
in which the language of section 175(c) was restated (Public 
Law 103-82).
    Section 175(c) and section 417(c) predates more recent Acts 
designed to invite faith-based organizations into federal 
social service efforts by allowing them, among other things, to 
retain their exemption under section 702(a) of the Civil Rights 
Act of 1964, which allows them to staff on a religious basis. 
These more recent Acts recognize that ``[i]n its most recent 
decisions [,] the [Supreme] Court appears to have abandoned the 
presumption that some religious institutions * * * are so 
pervasively sectarian that they are constitutionally ineligible 
to participate in direct public aid programs.'' (See 
Congressional Research Service, Charitable Choice: 
Constitutional Issues and Developments Through the 106th 
Congress (December 27, 2000) at 29.)
    While H.R. 4854 as reported by the Committee does not 
repeal section 175(c) or section 417(c), it does require the 
Corporation for National and Community Service to provide 
specific notice (as detailed in the proposed section 189F) to 
grant applicants and recipients regarding the restrictions 
contained in section 175(c) and section 417(c) of current law.
    Staffing provisions in H.R. 4854 and the underlying statute 
are subject to the Religious Freedom Restoration Act (42 U.S.C. 
2000bb et seq.) (``RFRA''), which provides that ``[g]overnment 
shall not substantially burden a person's exercise of 
religion'' unless the burden ``is in furtherance of a 
compelling governmental interest'' and ``is the least 
restrictive means of furthering'' such interest. RFRA has been 
upheld by the federal circuit courts of appeal as applied to 
federal laws and requirements. See, e.g., Sutton v. Providence 
St. Joseph Med. Ctr., 192 F.3d 826, 832 (9th Cir. 1999) 
(finding that the application of federal copyright laws did not 
violate RFRA); In re Young, 141 F.3d 854, 856 (8th Cir. 1998) 
(holding that Congress had the authority to compel strict 
scrutiny with regard to federal affairs and therefore RFRA 
continues to apply to federal bankruptcy laws in spite of 
Boerne), cert. denied 525 U.S. 811; see also Adams v. Comm'r, 
170 F.3d 173, 175 n.1 (3d Cir. 1999) (noting that ``courts that 
have addressed the question . . . have found that RFRA is 
constitutional as applied to the federal government''), cert. 
denied, 528 U.S. 1117 (2000); Alamo v. Clay, 137 F.3d 1366, 
1368 (D.C. Cir. 1998) (assuming that RFRA continues to apply to 
the federal government); Kikumura v. Hurley, 242 F.3d 950, 960 
(10th Cir. 2001) (``RFRA as applied to the federal government 
is severable from the portion of RFRA declared unconstitutional 
[by the Supreme Court], and independently remains applicable to 
federal officials.'').
    The Committee does not recommend that the notice 
requirement contained in section 189F be adopted in any other 
context.
     Audits and Reports.--The Committee notes that 
fiscal year 2000 was the first year the Corporation received an 
unqualified opinion on its financial statements. The fiscal 
years 2001 audit showed that the Corporation received a clean 
opinion for the second year in a row. However, due to numerous 
problems with audits that prior to fiscal year 2000, H.R. 4854 
adds new statutory language to ensure that the Corporation 
complies with applicable audit and reporting requirements under 
current law and requires the Corporation to report to Congress 
any failure to comply with the requirements of such audits. The 
Committee believes these provisions complement the new 
accountability measures that apply to grantees under the 
national service laws.
     Co-location.--In order to ensure compliance with 
the ineligible service categories in section 132 and prohibited 
activities in section 174, the Committee urges the Corporation 
to develop guidelines for grantees and program sponsors 
regarding the placement of national service participants in 
buildings, offices, and other facilities where such prohibited 
activities occur. The Committee does not intend to prohibit the 
use of donated space.

Internet recruiting

    H.R. 4866 amends subtitle H to permit the Corporation for 
National Service to support Internet volunteer databases. 
Federal resources would be matched by local funds, and would 
allow these databases to meet growing demands for service 
opportunities in America.
    The Internet has become a leading method of volunteer 
recruitment. After President Bush's call to service, hundreds 
of thousands of Americans turned to the Internet to search for 
volunteer opportunities. Seventy million Americans want to be 
more involved in charitable activities, but are hampered by a 
lack of available information.

Senior service scholarships

    H.R. 4854 authorizes a new senior scholarship to support 
tutoring, mentoring, and other service by seniors, who may 
receive a $1,000 scholarship. States, Indian tribes, other 
public agencies, and nonprofit organizations are eligible to 
apply for grants under this subtitle. The Committee notes that 
President Bush supports the expansion of senior-service 
programs and activities and has put forth several new proposals 
for attracting seniors to service. The Committee recognizes the 
expanding population of seniors in the country and supports the 
President in his efforts to create new roles and opportunities 
for this segment of our population. The Committee also 
recognizes that seniors have valuable life experiences that can 
help in mentoring or tutoring children. Accordingly, H.R. 4854 
contains new authority for senior scholarships that provide an 
incentive for seniors to serve under the national service laws.

 America's promise

    America's Promise was founded after the Presidents' Summit 
for America's Future, April 27-29, 1997 in Philadelphia. 
Presidents Clinton, Bush, Carter, and Ford, with First Lady 
Nancy Reagan representing her husband, challenged the nation to 
make youth a national priority. Since then, America's Promise 
has created a diverse and growing alliance of nearly 500 
national organizations called partners, which make large-scale 
national commitments to fulfill one or more of the five 
promises:
          1. Ongoing relationships with caring adults--parents, 
        mentors, tutors or coaches;
          2. Safe places with structured activities during 
        nonschool hours;
          3. A healthy start for adulthood;
          4. Marketable skills through effective education; and
          5. Opportunities to give back through community 
        service.
    Partner organizations agree to expand existing youth 
programs or create new ones and hold themselves accountable by 
measuring their progress. Spanning all sectors of society, 
these groups include corporations, not-for-profits, higher 
education and faith-based groups, associations and federal 
agencies, and arts and cultural organizations. Most partners 
expand the scale and impact of their efforts by collaborating 
with other groups, such as direct youth service providers.
    H.R. 4854 authorizes grants to America's Promise to support 
its activities relating to mobilizing communities to ensure 
that youth become productive, responsible adults.

Points of Light Foundation

    Established in 1990 as a nonprofit charitable organization, 
the Foundation is by statute a non-federal independent and 
autonomous entity whose purposes are to: (1) encourage every 
American to help solve critical social problems by 
volunteering; (2) identify successful and promising community 
service projects and disseminate information about them; and 
(3) discover new leaders and develop individuals and 
institutions that serve as strong examples of commitment to 
others. In 1991, the Foundation merged with the National 
Volunteer Center, a non-governmental organization, and is now 
associated with a nationwide network of private volunteer 
centers and corporate representatives. The Foundation is 
authorized to receive funding as part of the Corporation's 
appropriation and must provide a 25 percent match with funds 
raised from the private sector. The Corporation and Foundation 
work together to coordinate activities and support related 
missions, but the Foundation is not administered by the 
Corporation. H.R. 4854 amends title III to:
           Broaden the purpose to include references to 
        volunteer service and volunteer centers;
           Authorize the Foundation to use up to 25 
        percent of funds provided each year to support an 
        endowment fund (the interest of which may be used to 
        support authorized activities); and
           Authorize the Foundation to make subgrants 
        to support the development and ongoing work of 
        volunteer centers.

                     DOMESTIC VOLUNTEER SERVICE ACT

    The purpose of the Domestic Volunteer Service Act is to 
foster and expand voluntary citizen service in communities 
throughout the nation in activities designed to help the poor, 
the disadvantaged, the vulnerable, and the elderly. The 
Domestic Volunteer Service Act authorizes Volunteers in Service 
to America (VISTA) and the Senior Corps. The Senior Corps 
consists of the Retired and Senior Volunteer Program (RSVP), 
the Foster Grandparent Program, and the Senior Companion 
Program.

Volunteers in Service to America (VISTA)

    The purpose of this program is to recruit volunteers to 
serve in poverty and poverty-related projects. Volunteers must 
be at least 18 years old and serve full time for at least 1 
year (but not more than 3 years). To the maximum extent 
possible, they live among and at the economic level of the 
people they serve. The role of the volunteers is to mobilize 
community resources, increase the capacity of the community to 
solve problems, and ensure that activities initiated or 
expanded by the volunteers are sustained by the community when 
they leave. For example, VISTA volunteers may work with Habitat 
for Humanity to recruit persons to build homes; create a 
database of volunteer medical professions who see low-income 
patients in their offices; or initiate contacts with 
foundations, private funders, and community agencies to secure 
financial support for local community organizations.
    H.R. 4854 retains current law provisions that provide VISTA 
participants with federal employee status and benefits for 
certain purposes including retirement and workers compensation. 
These provisions maintain the elements of VISTA that have 
helped the program succeed in working with small non-profit 
organizations to fight poverty for nearly four decades.
    In addition to increased flexibility in operational 
programming, the bill phases in changes to the current law term 
of service requirements that would allow participants greater 
flexibility in the amount of time they serve (under current law 
a 12-month commitment--that is 24 hours a day and 7 days a 
week--is required). Because of the changes to the program in 
H.R. 4854 a VISTA project may allow participants to have 
greater flexibility in off-duty hours to pursue personal 
activities during the period of service (such as higher 
education courses and part-time employment to supplement the 
living allowance).
    H.R. 4854 amends section 103 to explicitly permit public 
and non-profit organizations to help support VISTA 
participants. One of the strengths of the VISTA program 
throughout its four-decade history has been its accessibility 
to small non-profit organizations in distressed communities. By 
specifically authorizing cost sharing, the Committee does not 
intend that the Corporation use this authority that would have 
the effect of limiting or denying participation in the VISTA 
program by small non-profits, or non-profits that have limited 
resources to provide additional support to VISTA participants.

Senior Corps

    The Senior Corps consists primarily of the Retired and 
Senior Volunteer Program (RSVP), the Foster Grandparent 
Program, and the Senior Companion Program. The premise of the 
Senior Corps is that seniors through their skills and talents 
can help meet priority community needs and have an impact on 
national problems of local concern. In all three programs, 
project grants are awarded to public agencies, such as State, 
county, and local governments, and to private nonprofit 
organizations. These entities apply to the Corporation's State 
offices for funds to recruit, place, and support the senior 
volunteers and participant. H.R. 4854 amends the provisions of 
the Senior Corps to:
           Broaden the scope of the purpose to add 
        emphasis on community needs and research and provides 
        that all Senior Corps programs are open to individuals 
        55 and older (current law is 60). The Committee 
        supports expanding service opportunities and recognizes 
        the fact that those aged 55 and older can make 
        meaningful contributions to society and should be 
        eligible for programs under the Senior Corps. This 
        change ensures more Americans can participate in 
        service opportunities authorized under the national 
        service laws.
           Provide that a stipend may be made available 
        to a participant with an income that is up to 200 
        percent of poverty. Under current law the eligibility 
        threshold is 125 percent of poverty, which is $11,075 
        for a single person for 2002; the new 200 percent 
        threshold would be $17,720 (higher for couples, and 
        adjusted upward in Alaska and Hawaii). The provision 
        would also allow the Director to use up to 15 percent of 
        funds for participants with incomes above 200 percent of 
        poverty as long as the program, following innovative efforts 
        to recruit, is not able to effectively recruit and place 
        low-income participants. The Committee removes the current 
        law prohibition on using federal funds to manage, train, 
        and support over-income participants who want to take part 
        in Senior Corps programs without receiving a stipend.
     Authorize the Director to support Senior Corps 
leaders who, on the basis of past experience as volunteers, 
special skills, and demonstrated leadership abilities, may 
coordinate activities, including training, and otherwise 
support the service of volunteers.
     Ensure continued service opportunities for 
individuals serving in Retired and Senior Volunteer programs, 
Foster Grandparent programs, and Senior Companion programs.
    The Committee is concerned that funding for the National 
Senior Service Corps programs--including the Foster Grandparent 
Program, Retired and Senior Volunteer Program, and Senior 
Companion Program--may not be equally distributed across the 
Nation. Some states receive a significantly smaller share of 
federal resources under these programs than their share of the 
Nation's population of seniors. This inequity denies service 
opportunities to thousands of seniors. It also punishes the at-
risk youth and homebound elderly who could benefit from the 
untapped resource of senior volunteers in their community. The 
Committee urges the Corporation to prioritize applications from 
underserved regions in awarding new grants.

Conclusion

    H.R. 4854, the Citizen Service Act of 2002, is reflective 
of the vision President Bush laid out for national service, and 
will help foster stronger communities and neighborhoods, and 
closer connections between Americans. National service takes 
place in every community across the country and around the 
world, by individuals of all backgrounds and ages, supporting 
organizations large and small. Swift approval of this 
legislation will harness the energy and commitment of those 
anxious to contribute to their county and provide wonderful 
opportunities and incentives for them to do so.

                      Section-by-Section Analysis

    Section 1--Sets forth the short title of this Act as the 
``Citizen Service Act of 2002'' and contains its table of 
contents.

   TITLE I--AMENDMENTS TO NATIONAL AND COMMUNITY SERVICE ACT OF 1990

    Section 1001--provides that references in title I are made 
to the National and Community Service Act of 1990.

       Subtitle A--Amendments to Subtitle A (General Provisions)

    Section 1101--Amends section 2(b) regarding the purposes of 
the Act.
    Section 1102--Amends section 101 pertaining to definitions.

        Subtitle B--Amendments to Subtitle B (Service-Learning)

    Section 1201--Amends part I of subtitle B of title I as 
follows:

        ``Part I--Programs for Elementary and Secondary Students

    ``Section 111 contains provisions pertaining to assistance 
to states and Indian tribes.
    ``Section 112 sets forth provisions regarding allotments.
    ``Section 113 contains provisions pertaining to 
applications for allotments under this part.
    ``Section 114 states that in considering applications under 
this part, the Corporation shall use criteria that include 
those approved by the Board of Directors.
    ``Section 115 contains provisions pertaining to federal, 
state, and local contributions.
    ``Section 116 sects forth limitations on the uses of funds 
for administration.''
    Section 1202--Amends section 119 regarding higher education 
provisions.
    Section 1203--Amends subtitle B of title I by adding after 
part II the following new part:

 ``Part III--Community-Based Programs, Training, and Other Intitiatives

    ``Section 120 contains provisions regarding community-based 
programs, training, and other initiatives.''
    Section 1204--Amends subtitle B of title I in part I, by 
striking subpart C and by adding after part III (as added by 
section 1203) the following new part:

                        ``Part IV--Clearinghouse

    ``Section 120A sets forth provisions regarding the Service-
Learning Clearinghouse.''

 Subtitle C--Amendments to Subtitle C (National Service Trust Program)

    Section 1301--Amends section 121 pertaining to a 
prohibition on grants to federal agencies and limits on 
corporation costs.
    Section 1302--Amends Section 122 regarding E-Corps and 
technical amendments to the types of programs.
    Section 1303--Amends section 123 pertaining to types of 
positions.
    Section 1304--Amends section 125 regarding training and 
technical assistance.
    Section 1305--Amends section 126 pertaining to state 
commissions and Challenge Grants.
    Section 1306--Amends section 129 as follows:
    ``Section 129 establishes guidelines for the provision of 
assistance and approved national service positions.''
    Section 1307--Amends subtitle c of title I by inserting 
after section 129 the following new sections:
    ``Section 129A sets forth provisions pertaining to pilot 
authority for member-based national service positions.
    ``Section 129B contains provisions pertaining to the 
education awards program.
    ``Section 129C contains provisions regarding fixed amount 
grants.''
    Section 1308--Amends section 130 regarding state selection 
of programs.
    Section 1309--Amends section 133 pertaining to the 
consideration of applications.
    Section 1310--Amends section 137 concerning the description 
of participants.
    Section 1311--Amends section 138(a) by striking references 
to ``Federal agency,''.
    Section 1312--Amends section 139 regarding terms of 
service.
    Section 1313--Amends section 140 regarding adjustments to 
the living allowance.

   Subtitle D--Amendments to Subtitle D (National Service Trust and 
           Provision of National Service Educational Awards)

    Section 1401--Amends section 145 pertaining to the 
availability of funds in the National Service Trust.
    Section 1402--Amends section 146 regarding individuals 
eligible to receive a national service educational award from 
the Trust.
    Section 1403--Amends section 147(a) with regard to the 
amount of national service educational awards.
    Section 1404--Amends section 148 regarding the disbursement 
of national service educational awards.
    Section 1405--Amends subtitle D of title I by adding at the 
end the following new sections:
    ``Section 149 contains provisions pertaining to the 
National Service Trust and individuals with disabilities.
    ``Section 149A sets forth provisions regarding service-
based scholarships for high school students.''

   Subtitle E--Amendments to Subtitle E (National Civilian Community 
                                 Corps)

    Section 1501--Amends section 151 as follows:
    ``Section 151 sets forth the purpose of this subtitle.''
    Section 1502--Amends section 152 regarding program 
components.
    Section 1503--Amends section 153 pertaining to eligible 
participants.
    Section 1504--Amends section 154 regarding the Summer 
National Service program.
    Section 1505--Amends section 155 pertaining to team 
leaders.
    Section 1506--Amends section 157 regarding consultation 
with state commissions.
    Section 1507--Amends section 159 pertaining to a permanent 
cadre.
    Section 1508--Amends section 161(a) regarding contract and 
grant authority.
    Section 1509--Amends section 162(a)(2)(A) pertaining to 
other departments.
    Section 1510--Repeals sections 163 and 165, and the items 
relating to such sections in the table of contents contained in 
section 1(b).
    Section 1511--Amends section 166 regarding definitions.
    Section 1512--Amends subtitle E by adding at the end the 
following new section:
    ``Section 167 contains provisions pertaining to emergency 
response corps.''
    Section 1513--Amends subtitle E regarding terminology.

    Subtitle F--Amendments to Subtitle F (Administrative Provisions)

    Section 1601--Amends section 171(a)(1) regarding family and 
medical leave.
    Section 1602--Amends section 174 pertaining to additional 
prohibitions on the use of funds.
    Section 1603--Amends section 176 regarding notice, hearing, 
and grievance procedures.
    Section 1604--Amends section 177 pertaining to the 
resolution of displacement complaints.
    Section 1605--Amends section 178 regarding state 
commissions on national and community service.
    Section 1606--Amends section 179 pertaining to evaluation 
and accountability.
    Section 1607--Amends section 181 by striking ``Section 
414'' and inserting ``Section 422''.
    Section 1608--Amends subtitle F by adding at the end the 
following new sections:
    ``Section 185 states that to promote efficiency and 
eliminate duplicative requirements, the Corporation may 
consolidate or modify application procedures and reporting 
requirements for programs and activities funded under the 
national service laws.
    ``Section 186 establishes provisions pertaining to 
accountability for results.
    ``Section 187 contains provisions designed to ensure that 
recipients of assistance under the national service laws are 
meeting sustainability goals.
    ``Section 188 set forth provisions regarding the use of 
recovered funds.
    ``Section 189 contains provisions regarding capacity 
building.
    ``Section 189A sets forth provisions regarding the expenses 
of attending meetings.
    ``Section 189B contains provisions regarding fees.
    ``Section 189C states that unless otherwise specifically 
provided, the Corporation has authority to make a grant under 
the national service laws for a period of 3 years.
    ``Section 189D contains provisions regarding the generation 
of volunteers.
    ``Section 189E sets forth provisions regarding a limitation 
on program grant costs.
    ``Section 189F contains provisions pertaining to a notice 
requirement.
    ``Section 189G sets forth requirements regarding audits and 
reporting.''

  Subtitle G--Amendments to Subtitle G (Corporation for National and 
                           Community Service)

    Section 1701--Amends section 192 regarding terms of office.
    Section 1702--Amends section 192A(g) pertaining to the 
Board of Directors' authorities and duties.
    Section 1703--Amends section 193A regarding peer reviewers.
    Section 1704--Amends section 195 pertaining to nonvoting 
members and personal services contracts.
    Section 1705--Amends section 196(a) regarding donated 
services.

                  Subtitle H--Amendments to Subtitle H

    Section 1801--Amends section 198 regarding technical 
amendments to subtitle H.
    Section 1802--Repeals section 198D and the item relating to 
such section in the table of contents contained in section 
1(b).

                   Subtitle I--Additional Authorities

    Section 1901--Further amends title I by adding at the end 
the following new subtitle:
    ``Subtitle J--Senior Service Scholarships
    ``Section 199N establishes authority to provide assistance 
and senior service scholarships.
    ``Section 199O contains provisions regarding programs 
eligible for assistance.
    ``Section 199P sets forth provisions regarding grants.
    ``Section 199Q sets forth provisions pertaining to funds 
for senior service scholarships.
    ``Section 199R establishes eligibility requirements to 
receive a senior scholarship.
    ``Section 199S sets forth provisions pertaining to the 
amount of a senior service scholarship.''
    Section 1902--Amends title I by adding at the end the 
following new subtitle.
    ``Subtitle K--America's Promise: The Alliance for Youth
    ``Section 199AA authorizes the Corporation to make grants 
to America's Promise: The Alliance for Youth, subject to the 
availability of appropriations for this purpose, to support its 
activities relating to mobilizing communities to ensure that 
young people become productive, repsonsible adults.
    ``Section 199BB states that grant funds may be used to pay 
costs attributable to the development or operation of programs 
consistent with a grant award approved by the Corporation under 
Section 199AA.
    ``Section 199CC states that the Corporation's Chief 
Executive Officer may service as an ex officio nonvoting member 
of the Board of Directors of America's Promise: The Alliance 
for Youth.''

    Subtitle J--Amendments to Title III (Points of Light Foundation)

    Section 1911--Amends section 302 as follows:
    ``Section 302 sets forth the purposes of this title.''
    Section 1912--Amends section 303 regarding the Board of 
Directors.
    Section 1913--Amends section 304 pertaining to grants to 
the Foundation.

  Subtitle K--Amendments to Title V (Authorization of Appropriations)

    Section 1921--Amends section 501 as follows:
    ``Section 501 sets forth provisions regarding the 
authorization of appropriations.''

   TITLE II--AMENDMENTS TO THE DOMESTIC VOLUNTEER SERVICE ACT OF 1973

    Section 2001--Provides that references in title II are made 
to the Domestic Volunteer Service Act of 1973.

   Subtitle A--Amendments to Title I (National Volunteer Antipoverty 
                               Programs)

    Section 2101--Amends section 2(b) regarding the purpose.
    Section 2102--Amends section 101 regarding the purpose of 
the VISTA program.
    Section 2103--Amends section 103 pertaining to 
applications.
    Section 2104--Amends section 104 pertaining to terms and 
periods of service.
    Section 2105--Repeals sections 109 and 124, and the items 
relating to such sections in the table of contents.
    Section 2106--Amends section 111(b) regarding the 
University Year for VISTA program.
    Section 2107--Amends section 121 in the second sentence by 
striking ``agencies, institutions, and situations'' and 
inserting ``agencies and institutions, including civic, 
community, and educational organizations''.

  Subtitle B--Amendments to Title II (National Senior Volunteer Corps)

    Section 2201--Amends title II in the title heading by 
striking ``National Senior Volunteer Corps'' and inserting 
``National Senior Service Corps''
    Section 2202--Amends section 200 as follows:
    ``Section 200 provides the various purposes of this 
title''.
    Section 2203--Amends section 201 regarding grants and 
contracts for volunteer service projects.
    Section 2204--Amends section 211 pertaining to Foster 
Grandparent program grants.
    Section 2205--Amends section 213 concerning Senior 
Companion program grants.
    Section 2206--Amends section 223 regarding a change in age 
eligibility and amends section 224 pertaining to a name change.
    Section 2207--Amends section 225 regarding programs of 
national significance.
    Section 2208--Amends title II by adding after section 227 
the following new sections:
    ``Section 228 establishes provisions encouraging the 
participation of individuals in programs and activities 
authorized by this title, regardless of the individual's 
income.
    ``Section 229 provides the Corporation with the authority 
to take necessary action to maintain service assignments for 
seniors and to ensure continuity of service for communities.
    ``Section 229A provides that the Corporation may, from 
funds appropriated each fiscal year to carry out subtitle II, 
reserve up to $10,000,000 to support research and training 
intended to improve the effectiveness of programs supported 
under article II.''

  Subtitle C--Amendments to Title IV (Administration and Coordination)

    Section 2301--Amends section 404 by striking ``displacement 
of employed workers'' and inserting ``displacement of employed 
workers or volunteers (other than participants under the 
national service laws)''.
    Section 2302--Amends section 421 pertaining to definitions.
    Section 2303--Amends section 425 pertaining to protection 
against improper use.
    Section 2304--Amends title IV by adding after section 425 
the following new section:
    ``Section 426 sets froth a provision regarding income 
verification.''
    Section 2305--Repeals sections 412 and 416, and the items 
relating to such sections in the table of contents contained in 
section 1(b).

  Subtitle D--Amendments to Title V (Authorization of Appropriations)

    Section 2401--Amends section 501 regarding the 
authorization of appropriations for VISTA and other purposes.
    Section 2402--Amends section 502 as follows:
    ``Section 502 contains provisions regarding the 
authorization of appropriations for programs within the 
National Senior Service Corps.''
    Section 2403--Amends section 504 as follows:
    ``Section 504 states that there are authorized to be 
appropriated for the administration of this Act $33,568,000 for 
fiscal year 2003 and such sums as may be necessary for each of 
fiscal years 2004 through 2007.''.

                  TITLE III--AMENDMENTS TO OTHER LAWS

    Section 301--Amends section 8E(a)(1) of the Inspector 
General Act by striking ``National and Community Service Trust 
Act of 1993'' and inserting ``National and Community Service 
Act of 1990.''

          TITLE IV--TECHNICAL AMENDMENTS TO TABLES OF CONTENTS

    Section 4101--Amends section 1(b) of the National and 
Community Service Act of 1990 pertaining to its table of 
contents.
    Section 4102--Amends section 1(b) of the Domestic Volunteer 
Service Act of 1973 regarding its table of contents.

             TITLE V--EFFECTIVE DATE AND SENSE OF CONGRESS

    Section 5101--States that, unless specifically provided 
otherwise, the amendments made by this Act shall take effect on 
the date of enactment.
    Section 5102--Contains provisions pertaining to service 
assignments and agreements.
    Section 5103--Sets forth provisions regarding a sense of 
Congress.
    Section 5104--Expresses the sense of Congress that 
recruitment and application materials should be in languages 
other than English.

                       Explanation of Amendments

    The Amendment in the Nature of a Substitute is explained in 
the body of this report.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch. H.R. 4854, the Citizen Service Act of 2002, 
reauthorizes the major federally funded community service and 
volunteer programs: the National and Community Service Act and 
the Domestic Volunteer Service Act. The purposes of H.R. 4854 
are to reform and strengthen programs under the Corporation for 
National and Community Service; implement first-time 
accountability measures for grantees under the national service 
laws; and make the Corporation for National and Community 
Service an effective outlet for leveraging volunteers and 
community service activities among the many service 
organizations across the country. The bill does not prevent 
legislative branch employees from receiving services provided 
under this legislation.

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandates Reform Act, P.L. 104-4) requires a statement of 
whether the provisions of the reported bill include unfunded 
mandates. H.R. 4854 amends the spending programs under the 
National and Community Service Act and the Domestic Volunteer 
Service Act. As such, the bill does not contain any unfunded 
mandates.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the body of this report.

   New Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the House of Representatives and section 308(a) of the 
Congressional Budget Act of 1974 and with respect to 
requirements of 3(c)(3) of rule XIII of the House of 
Representatives and section 402 of the Congressional Budget Act 
of 1974, the Committee has received the following cost estimate 
for H.R. 4854 from the Director of the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 19, 2002.
Hon. John A. Boehner,
Chairman, Committee on Education and the Workforce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4854, the Citizen 
Service Act of 2002.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Christina 
Hawley Sadoti (for federal costs) and Elyse Goldman (for the 
state and local impact).
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 4854--Citizen Service Act of 2002

    Summary: H.R. 4854 would amend the National and Community 
Service Act of 1990 (NCSA) and the Domestic Volunteer Service 
Act of 1973 (DVSA), and would provide authorizations of 
appropriations for these programs over fiscal years 2003 
through 2007. The national service programs currently are 
authorized through 2002.
    CBO estimates that the bill would authorize a total of 
about $4.8 billion in appropriations over the next five years. 
Assuming the appropriation of those amounts, CBO estimates that 
implementing the bill would cost $3.4 billion over the 2003-
2007 period. This bill would not affect direct spending or 
revenues; therefore, pay-as-you-go procedures would not apply.
    H.R. 4854 contains no intergovernment or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 4854 is shown in the following table. 
The cost of this legislation falls within budget function 500 
(education, training, employment, and social services).

                                TABLE 1.--ESTIMATED BUDGETARY IMPACT OF H.R. 4854
----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                     -----------------------------------------------------------
                                                        2002      2003      2004      2005      2006      2007
----------------------------------------------------------------------------------------------------------------
                                       SPENDING SUBJECT TO APPROPRIATIONS

National and community service spending under
 current law:
    Budget authority................................       731         0         0         0         0         0
    Estimated outlays...............................       788       539       256       134        62        31
Proposed changes:
    Estimated authorization level...................         0       908       930       953       976       998
    Estimated outlays...............................         0       262       589       757       868       932
National and community service spending under H.R.
 4854:
    Estimated authorization level...................       731       908       930       953       976       998
    Estimated outlays...............................       788       801       845       891       931       963
----------------------------------------------------------------------------------------------------------------
Note:--Components may not sum to totals because of rounding.

Basis of estimate

    For the estimate, CBO assumes that H.R. 4854 will be 
enacted by September 30, 2002, and that the specified and 
estimated authorization amounts will be appropriated for each 
year. Outlays are based on historical spending patterns for 
these programs.
    H.R. 4854 would amend the national and community service 
laws under the NCSA and DVSA, and would authorize a total of 
$908 million in fiscal year 2003, and such sums as may be 
necessary for fiscal year 2004 through 2007 of these programs. 
If the authorized amounts are adjusted for inflation, 
authorizations over 2003-2007 period would total $4.8 billion. 
(Absent adjustments for inflation, the authorizations would 
total $4.6 billion.) National and community service programs 
received appropriations of $731 million for fiscal year 2002. 
Details of the estimated authorization amounts for H.R. 4854 
are discussed below and are displayed in Table 2.

                                    TABLE 2.--AUTHORIZATIONS UNDER H.R. 4854
----------------------------------------------------------------------------------------------------------------
                                                                    By fiscal year, in millions of dollars--
                                                               -------------------------------------------------
                                                                  2003      2004      2005      2006      2007
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Service-learning programs:
    Estimated authorization level.............................        55        58        61        65        67
    Estimated outlays.........................................         6        33        52        60        63
National Service Trust programs:
    Estimated authorization level.............................       415       424       433       443       453
    Estimated outlays.........................................        19       150       270       350       400
National Civilian Community Corps:
    Estimated authorization level.............................        30        31        31        32        33
    Estimated outlays.........................................        26        31        31        32        33
Senior service scholarships:
    Estimated authorization level.............................        12        12        13        13        13
    Estimated outlays.........................................         2         6        10        12        13
America's promise:
    Estimated authorization level.............................         8         8         8         8         8
    Estimated outlays.........................................         1         4         6         8         8
Administration of the National and Community Service Act:
    Estimated authorization level.............................        34        35        36        36        37
    Estimated outlays.........................................        29        35        35        36        37
Points of Light Foundation:
    Estimated authorization level.............................        10        10        10        11        11
    Estimated outlays.........................................         0        10        10        10        11
VISTA and special volunteers:
    Estimated authorization level.............................        95        97        99       102       104
    Estimated outlays.........................................        50        88        94        99       101
National Senior Service Corps, Foster Grandparent, Senior
 Companion, and Demonstration Programs:
    Estimated authorization level.............................       216       221       226       231       236
    Estimated outlays.........................................       113       201       214       225       230
Administration of Domestic Volunteer Service Act:
    Estimated authorization level.............................        34        34        35        36        37
    Estimated outlays.........................................        18        31        33        35        36
Total authorizations:
    Estimated authorization level.............................       908       930       953       976       998
    Estimated outlays.........................................       262       589       757       868       932
----------------------------------------------------------------------------------------------------------------
 Note.--Components may not sum to totals because of rounding.

            Title I--Amendments to the National and Community Service 
                    Act of 1990
    Service-Learning Programs. H.R. 4854 would authorize the 
appropriation of $55 million for fiscal year 2003, $58 million 
for 2004, $61 million for 2005, $65 million for 2006, and such 
sums as may be necessary for 2007 for service-learning programs 
authorized under the National and Community Service Act of 
1990. Under this authority, the Corporation for National 
Service would make grants to states, territories, and Indian 
tribes to support school and community-based service-learning 
programs, and to institutions of higher education to support 
innovative programs for community service. In general, the 
federal share of the costs of these programs would be limited 
to 50 percent. One-half of the authorized funds would be 
reserved for school-based service learning, while the remaining 
half would be equally split between grants for community-based 
programs and for those based at institutions of higher 
education.
    National Service Trust Programs. The bill would authorize 
the appropriation of $415 million for fiscal year 2003 and such 
sums as may be necessary for 2004 through 2007 for national 
service trust programs. These funds would be spent on living 
allowances for national service participants, education awards 
for participants, and demonstration projects aimed at 
innovation in national service. H.R. 4854 would amend the 
National and Community Service Act of 1990 so that grants under 
this section could be received by state, local, and tribal 
entities, public and private nonprofit organizations, and 
institutions of higher education.
    Grant recipients would carry out national service programs 
designed to address unmet human, educational, environmental, or 
public-safety needs. Participants in these service programs, as 
well as those in service-learning programs and programs 
authorized under Volunteers in Service to America (VISTA) and 
the National Civilian Community Corps (NCCC), who completed at 
least 1,700 hours of service within one year, would be eligible 
to receive education awards of $5,250 (NCCC summer program 
participants would earn awards of $1,000). The corporation 
could not approve national service positions unless it has 
sufficient funds on hand to provide for the education awards 
that would be earned. These education awards could be used by 
participants to repay student loans or to pay for expenses 
incurred in attending an institution of higher education.
    In addition, funds in the national service trust would be 
used to provide for the federal share (not to exceed $500 per 
person) for service-based scholarships for high school 
students.
    National Civilian Community Corps. The bill would authorize 
grants to public and private organizations for the operation 
and support of the NCCC, a primarily residential service 
program for participants who are at least 18 years of age. The 
bill also would authorize asummer NCCC program for youth aged 
14 through 18. Participants in the NCCC would receive training designed 
to promote team building, discipline, leadership, work, training, 
citizenship, and physical conditioning, and would carry out service 
projects aimed at meeting specific community needs. As mentioned above, 
NCCC participants could earn education awards, paid out of the national 
service trust fund. H.R 4854 would authorize appropriations of $30 
million for fiscal year 2003 and such sums as may be necessary for 
fiscal years 2004 through 2007 to operate the NCCC.
    Senior Service Scholarships. The bill also would authorize 
the appropriation of $12 million for fiscal year 2003 and such 
sums as may be necessary for fiscal years 2004 through 2007 for 
the support of senior service scholarship programs. Grants 
under this section may provide up to $600 per senior volunteer 
participating in tutoring, mentoring, and other activities, and 
also would provide for senior service scholarships. To be 
eligible to receive a senior service scholarship of $1,000, a 
senior participant (who must be 55 years of age or older when 
service begins) must successfully complete 500 hours of service 
within one year.
    America's Promise. H.R. 4854 would authorize the 
appropriation of $7.5 million for fiscal year 2003 and such 
sums as may be necessary for fiscal years 2004 through 2007 to 
provide grants to America's Promise: The Alliance for Youth. 
These funds would be used to support that organization's 
activities relating to mobilizing communities to help young 
people become productive, responsible adults.
    Administration of the National and Community Service Act. 
This bill would authorize the appropriation of $34 million for 
fiscal year 2003 and such sums as may be necessary for fiscal 
years 2004 through 2007 for the administration of the National 
and Community Service Act of 1990 by the Corporation on 
National and Community Service, and for providing financial 
assistance to the State Commissions on National and Community 
Service.
    Points of Light Foundation. H.R. 4854 would authorize the 
appropriation of $10 million for fiscal year 2003 and such sums 
as may be necessary for fiscal years 2004 through 2007 for the 
Points of Light Foundation. In addition, the bill would permit 
the foundation to use up to 25 percent of funds received under 
this appropriation to help build an endowment. Because the 
foundation operates as a nongovernmental organization, any 
interest earnings of the endowment, and related spending of 
those earnings, would not be counted on the federal budget.
            Title II--Amendments to the Domestic Volunteer Service Act 
                    of 1973
    Volunteers in Service to America and Special Volunteer 
Programs. This bill would make amendments to the VISTA program, 
including a gradual phasing out of the requirement that VISTA 
volunteers live among and at the economic level of the people 
served. The bill would authorize the appropriation of $90 
million in fiscal year 2003 and such sums as may be necessary 
for fiscal years 2004 through 2007. In addition, the bill would 
authorize $5 million for fiscal year 2003 and such sums as may 
be necessary for fiscal years 2004 through 2007 for special 
emphasis and demonstration volunteer programs.
    National Senior Service Corps. H.R. 4854 would authorize 
appropriations totaling $216 million for fiscal year 2003 and 
such sums as may be necessary for fiscal years 2004 through 
2007 for programs aimed at involving senior citizens in 
volunteer activities. The National Senior Service Corps is 
comprised of the Retired and Senior Volunteer Program, the 
foster grandparent program, the senior companion program, and 
demonstration programs. Under these programs, individuals aged 
55 and older could participate in volunteer programs designed 
to meet community needs, serve children with special needs, and 
serve adults who are struggling to maintain an independent 
life.
    Administration of the Domestic Volunteer Service Act. 
Finally, H.R. 4854 would authorize the appropriation of $34 
million for fiscal year 2003 and such sums as may be necessary 
for fiscal years 2004 though 2007 for the administration of 
programs under the Domestic Volunteer Service Act.
    Pay-as-you-go considerations: None.
    Estimated impact on state, local, and tribal governments: 
H.R. 4854 contains no intergovernmental mandates as defined in 
UMRA and would impose no costs on state, local, or tribal 
governments. State, local, and tribal governments would be 
eligible to receive a significant portion of the funs 
authorized in the bill. Any costs associated with receipt of 
these grants would be considered conditions of aid.
    Estimated impact on the private sector: H.R. 4854 contains 
no private-sector mandates as defined in UMRA.
    Estimate prepared by: Federal spending: Christina Hawley 
Sadoti; impact on state, local, and tribal governments: Elyse 
Goldman; impact on the private sector: Emily Shelton.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

         Statement of General Performance Goals and Objectives

    In accordance with Clause (3)(c) of House Rule XIII, the 
goals of H.R. 4854 are to reform and strengthen programs under 
the Corporation for National and Community Service; implement 
first-time accountability measures for grantees under the 
national service laws; and make the Corporation for National 
and Community Service an effective outlet for leveraging 
volunteers and community service activities among the many 
service organizations across the country. The Committee expects 
the relevant federal agencies to comply with H.R. 4854 and 
implement the changes to the law in accordance with these 
stated goals.

                   Constitutional Authority Statement

    Under clause 3(d)(1) of rule XIII of the Rules of the House 
of Representatives, the Committee must include a statement 
citing the specific powers granted to Congress in the 
Constitution to enact the law proposed by H.R. 4854. The 
Committee believes that the amendments, made by this bill to 
the National and Community Service Act and the Domestic 
Volunteer Service Act, are within Congress' authority under 
Article I, section 8, clause 1 of the Constitution.

                           Committee Estimate

    Clauses 3(d)(2) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
H.R. 4854. However, clause 3(d)(3)(B) of that rule provides 
that this requirement does not apply when the Committee has 
included in its report a timely submitted cost estimate of the 
bill prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

               NATIONAL AND COMMUNITY SERVICE ACT OF 1990

SECTION 1. 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 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--Serve-America Programs

              [SUBPART A--SCHOOL-BASED PROGRAMS FOR STUDENTS

[Sec. 111. Authority to assist States and Indian tribes.
[Sec. 111A. Authority to assist local applicants in nonparticipating 
          States.
[Sec. 111B. Authority to assist public or private nonprofit 
          organizations.
[Sec. 112. Grants and allotments.
[Sec. 113. State or tribal applications.
[Sec. 114. Local applications.
[Sec. 115. Consideration of applications.
[Sec. 115A. Participation of students and teachers from private schools.
[Sec. 116. Federal, State, and local contributions.
[Sec. 116A. Limitations on uses of funds.
[Sec. 116B. Definitions.

     [SUBPART B--COMMUNITY-BASED SERVICE PROGRAMS FOR SCHOOL-AGE YOUTH

[Sec. 117. Definitions.
[Sec. 117A. General authority.
[Sec. 117B. State applications.
[Sec. 117C. Local applications.
[Sec. 117D. Consideration of applications.
[Sec. 117E. Federal, State, and local contributions.
[Sec. 117F. Limitations on uses of funds.

                         [SUBPART C--CLEARINGHOUSE

[Sec. 118. Service-learning clearinghouse.

  [Part II--Higher Education Innovative Programs for Community Service

[Sec. 119. Higher education innovative programs for community service.

               [Subtitle C--National Service Trust Program

                 [Part I--Investment in National Service

[Sec. 121. Authority to provide assistance and approved national service 
          positions.
[Sec. 122. Types of national service programs eligible for program 
          assistance.
[Sec. 123. Types of national service positions eligible for approval for 
          national service educational awards.
[Sec. 124. Types of program assistance.
[Sec. 125. Training and technical assistance.
[Sec. 126. Other special assistance.

               [Part II--Application and Approval Process

[Sec. 129. Provision of assistance and approved national service 
          positions by competitive and other means.
[Sec. 130. Application for assistance and approved national service 
          positions.
[Sec. 131. National service program assistance requirements.
[Sec. 132. Ineligible service categories.
[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 National Service 
                           Educational Awards

[Sec. 145. Establishment of the National Service Trust.
[Sec. 146. Individuals eligible to receive a national service 
          educational award from the Trust.
[Sec. 147. Determination of the amount of the national service 
          educational award.
[Sec. 148. Disbursement of national service educational awards.

                  [Subtitle E--Civilian Community Corps

[Sec. 151. Purpose.
[Sec. 152. Establishment of Civilian Community Corps Demonstration 
          Program.
[Sec. 153. National service program.
[Sec. 154. Summer national service program.
[Sec. 155. 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 other departments.
[Sec. 163. Advisory board.
[Sec. 164. Annual evaluation.
[Sec. 165. Funding limitation.
[Sec. 166. Definitions.

                 [Subtitle F--Administrative Provisions

[Sec. 171. Family and medical leave.
[Sec. 172. Reports.
[Sec. 173. Supplementation.
[Sec. 174. Prohibition on use of funds.
[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. 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.

       [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.

           [Subtitle H--Investment for Quality and Innovation

[Sec. 198. Additional corporation activities to support national 
          service.
[Sec. 198A. Clearinghouses.
[Sec. 198B. Presidential awards for service.
[Sec. 198C. Military installation conversion demonstration programs.
[Sec. 198D. Special demonstration project.

           [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. 199I. 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.

              [TITLE II--MODIFICATIONS OF EXISTING PROGRAMS

                        [Subtitle A--Publication

[Sec. 201. Information for students.
[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 C--Amendments to Student Literacy Corps

[Sec. 221. Amendments to Student Literacy Corps.

                 [TITLE III--POINTS OF LIGHT FOUNDATION

[Sec. 301. Short title.
[Sec. 302. Findings and purposes.
[Sec. 303. Authority.
[Sec. 304. Grants to the Foundation.
[Sec. 305. Eligibility of the Foundation for grants.

        [TITLE IV--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.]
  (b) Table of Contents.--The table of contents is as follows:
Sec. 1. Short title and table of contents.
Sec. 2. Findings and purpose.

          TITLE I--NATIONAL AND COMMUNITY SERVICE GRANT PROGRAM

                     Subtitle A--General Provisions

Sec. 101. Definitions.
Sec. 102. Authority to make State grants.

                  Subtitle B--Service Learning Programs

                     Part I--Serve-America Programs

Sec. 111. Assistance to States and Indian tribes.
Sec. 112. Allotments.
Sec. 113. Applications.
Sec. 114. Consideration of applications.
Sec. 115. Federal, State, and local contributions.
Sec. 116. Limitations on uses of funds.

   Part II--Higher Education Innovative Programs for Community Service

Sec. 119. Higher education innovation programs for community service.

      Part III--Community-Based Programs, Training, and Initiatives

Sec. 120. Community-based programs, training, and other initiatives.

                         Part IV--Clearinghouse

Sec. 120A. Service-learning clearinghouse.

               Subtitle C--National Service Trust Programs

                 Part I--Investment in National Service

Sec. 121. Authority to provide assistance and approved national service 
          positions.
Sec. 122. Types of national service programs eligible for program 
          assistance.
Sec. 123. Types of national service positions eligible for approval for 
          national service educational awards.
Sec. 124. Types of program assistance.
Sec. 125. Training and technical assistance.
Sec. 126. Other special assistance.

                Part II--Application and Approval Process

Sec. 129. Provision of assistance and approved national service 
          positions.
Sec. 129A. Pilot authority for member-based national service positions.
Sec. 129B. Education awards program.
Sec. 129C. Fixed amount grants.
Sec. 130. Application for assistance and approved national service 
          positions.
Sec. 131. National service program assistance requirements.
Sec. 132. Ineligible service categories.
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 National Service 
                           Educational Awards

Sec. 145. Establishment of the National Service Trust.
Sec. 146. Individuals eligible to receive a national service educational 
          award from the Trust.
Sec. 147. Determination of the amount of the national service 
          educational award.
Sec. 148. Disbursement of national service educational awards.
Sec. 149. Use by participants with disabilities.
Sec. 149A. Service-based scholarships to high school students.

              Subtitle E--National Civilian Community Corps

Sec. 151. Purpose.
Sec. 152. Establishment of Civilian Community Corps program.
Sec. 153. National service program.
Sec. 154. Summer national service program.
Sec. 155. 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 other departments.
Sec. 164. Annual evaluation.
Sec. 166. Definitions.
Sec. 167. Emergency Response Corps.

                  Subtitle F--Administrative Provisions

Sec. 171. Family and medical leave.
Sec. 172. Reports.
Sec. 173. Supplementation.
Sec. 174. Prohibition on use of funds.
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. 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. 185. Consolidated application and reporting requirements.
Sec. 186. Accountability for results.
Sec. 187. Sustainability.
Sec. 188. Use of recovered funds.
Sec. 189. Capacity building.
Sec. 189A. Expenses of attending meetings.
Sec. 189B. Fees.
Sec. 189C. Grant periods.
Sec. 189D. Generation of volunteers.
Sec. 189E. Limitation on program grant costs.
Sec. 189F. Notice requirement.
Sec. 189G. Audits and reports.

       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.

            Subtitle H--Investment for Quality and Innovation

Sec. 198. Additional corporation activities to support national service.
Sec. 198A. Clearinghouses.
Sec. 198B. Presidential awards for service.
Sec. 198C. Military installation conversion demonstration programs.

            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. 199I. 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--Senior Service Scholarships

Sec. 199N. Authority to provide assistance and Senior Service 
          Scholarships.
Sec. 199O. Programs eligible for assistance.
Sec. 199P. Grants.
Sec. 199Q. Funds for Senior Service Scholarships.
Sec. 199R. Eligibility to receive a Senior Service Scholarship.
Sec. 199S. Amount of Senior Service Scholarship.

          Subtitle K--America's Promise: The Alliance for Youth

Sec. 199AA. Authority to provide assistance.
Sec. 199BB. Allowable costs.
Sec. 199CC. Corporation's Chief Executive Officer as ex officio member 
          of board of directors.

              TITLE II--MODIFICATIONS OF EXISTING PROGRAMS

                         Subtitle A--Publication

Sec. 201. Information for students.
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 C--Amendments to Student Literacy Corps

Sec. 221. Amendments to Student Literacy Corps.

                  TITLE III--POINTS OF LIGHT FOUNDATION

Sec. 301. Short title.
Sec. 302. Findings and purposes.
Sec. 303. Authority.
Sec. 304. Grants to the Foundation.
Sec. 305. Eligibility of the Foundation for grants.

        TITLE IV--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. FINDINGS AND PURPOSE.

  (a) * * *
  (b) Purpose.--It is the purpose of this Act to--
          (1) * * *

           *       *       *       *       *       *       *

          (7) build on the existing organizational service 
        infrastructure of Federal, State, and local programs 
        and agencies to expand full-time and part-time service 
        opportunities for all citizens; [and]
          (8) provide tangible benefits to the communities in 
        which national service is performed[.];
          (9) expand and strengthen service-learning programs 
        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 throughout 
        the United States;
          (10) support efforts to make the nonprofit sector 
        more effective in meeting the unmet human, educational, 
        environmental, and public safety needs of the United 
        States; and
          (11) assist in coordinating and strengthening Federal 
        and other citizen service opportunities, including 
        opportunities for participation in homeland security 
        preparedness and response, including training for 
        limited duration national service as law enforcement 
        officers, firefighters and rescue personnel, search and 
        rescue personnel, emergency medical service workers, 
        and disaster services workers, other areas of public 
        and social service, and international service.

      TITLE I--NATIONAL AND COMMUNITY SERVICE STATE GRANT PROGRAM

                     Subtitle A--General Provisions

SEC. 101. DEFINITIONS.

  For purposes of this title:
          (1) * * *

           *       *       *       *       *       *       *

          (5) Community-based agency.--The term ``community-
        based agency'' means a private nonprofit organization 
        (including a [church or other] religious entity) that--
                  (A) * * *

           *       *       *       *       *       *       *

          (13) Institution of higher education.--The term 
        ``institution of higher education'' has the same 
        meaning given such term in [section 101(a) of the 
        Higher Education Act of 1965] sections 101(a) and 
        102(a)(1) of the Higher Education Act of 1965.

           *       *       *       *       *       *       *

          (17) Participant.--
                  (A) * * *
                  (B) Rule.--A participant shall not be 
                considered to be an employee of the [program in 
                which the participant is enrolled] organization 
                receiving assistance under the national service 
                laws through which the participant is enrolled 
                in an approved national service position.

           *       *       *       *       *       *       *

          (21) School-age youth.--The term ``school-age youth'' 
        means--
                  (A) * * *
                  (B) children with disabilities, as defined in 
                [section 602(a)(1)] section 602(3) of the 
                Individuals with Disabilities Education Act 
                ([20 U.S.C. 1401(a)(1)] 20 U.S.C. 1401(3)), who 
                receive services under part B of such Act.

           *       *       *       *       *       *       *

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

                    [PART I--SERVE-AMERICA PROGRAMS

             [Subpart A--School-Based Programs for Students

[SEC. 111. AUTHORITY TO ASSIST STATES AND INDIAN TRIBES.

  [(a) Use of Funds.--The Corporation, in consultation with the 
Secretary of Education, may make grants under section 
112(b)(1), and allotments under subsections (a) and (b)(2) of 
section 112, to States (through State educational agencies), 
and to Indian tribes, to pay for the Federal share of--
          [(1) planning and building the capacity of the States 
        or Indian tribes (which may be accomplished through 
        grants or contracts with qualified organizations) to 
        implement school-based service-learning programs, 
        including--
                  [(A) providing training for teachers, 
                supervisors, personnel from community-based 
                agencies (particularly with regard to the 
                utilization of participants), and trainers, to 
                be conducted by qualified individuals or 
                organizations that have experience with 
                service-learning;
                  [(B) developing service-learning curricula to 
                be integrated into academic programs, including 
                the age-appropriate learning component 
                described in section 114(d)(2);
                  [(C) forming local partnerships described in 
                paragraph (2) or (4) to develop school-based 
                service-learning programs in accordance with 
                this subpart;
                  [(D) devising appropriate methods for 
                research and evaluation of the educational 
                value of service-learning and the effect of 
                service-learning activities on communities; and
                  [(E) 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;
          [(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 State 
        distribution of Federal funds made available under this 
        subpart to projects operated by local partnerships 
        among--
                  [(A) local educational agencies; and
                  [(B) one or more community partners that--
                          [(i) shall include a public or 
                        private nonprofit organization that--
                                  [(I) has a demonstrated 
                                expertise in the provision of 
                                services to meet unmet human, 
                                educational, environmental, or 
                                public safety needs;
                                  [(II) was in existence at 
                                least 1 year before the date on 
                                which the organization 
                                submitted an application under 
                                section 114; and
                                  [(III) will make projects 
                                available for participants, who 
                                shall be students; and
                          [(ii) may include a private for-
                        profit business or private elementary 
                        or secondary school;
          [(3) planning of school-based service-learning 
        programs, through State distribution of Federal funds 
        made available under this subpart to local educational 
        agencies, which planning may include paying for the 
        cost of--
                  [(A) the salaries and benefits of service-
                learning coordinators; or
                  [(B) the recruitment, training, supervision, 
                and placement of service-learning coordinators 
                who are participants in a program under 
                subtitle C or receive a national service 
                educational award under subtitle D,
        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); 
        and
          [(4) implementing, operating, or expanding school-
        based service-learning programs involving adult 
        volunteers to utilize service-learning to improve the 
        education of students, through State distribution of 
        Federal funds made available under this part to local 
        partnerships among--
                  [(A) local educational agencies; and
                  [(B) one or more--
                          [(i) public or private nonprofit 
                        organizations;
                          [(ii) other educational agencies; or
                          [(iii) private for-profit businesses,
        that coordinate and operate projects for participants, 
        who shall be students.
  [(b) Duties of Service-Learning Coordinator.--A service-
learning coordinator referred to in paragraph (2) or (3) of 
subsection (a) shall provide services to a local educational 
agency by--
          [(1) providing technical assistance and information 
        to, and facilitating the training of, teachers who want 
        to use service-learning in their classrooms;
          [(2) assisting local partnerships described in 
        subsection (a) in the planning, development, and 
        execution of service-learning projects; and
          [(3) carrying out such other duties as the local 
        educational agency may determine to be appropriate.
  [(c) Related Expenses.--A partnership, local educational 
agency, or other qualified organization that receives financial 
assistance under this subpart 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.

[SEC. 111A. AUTHORITY TO ASSIST LOCAL APPLICANTS IN NONPARTICIPATING 
                    STATES.

  [In any fiscal year in which a State does not submit an 
application under section 113, for an allotment under 
subsection (a) or (b)(2) of section 112, that meets the 
requirements of section 113 and such other requirements as the 
Chief Executive Officer may determine to be appropriate, the 
Corporation may use the allotment of that State to make direct 
grants to pay for the Federal share of the cost of--
          [(1) carrying out the activities described in 
        paragraph (2) or (4) of section 111(a), to a local 
        partnership described in such paragraph; or
          [(2) carrying out the activities described in 
        paragraph (3) of such section, to an agency described 
        in such paragraph,
that is located in the State.

[SEC. 111B. AUTHORITY TO ASSIST PUBLIC OR PRIVATE NONPROFIT 
                    ORGANIZATIONS.

  [(a) In General.--The Corporation may make grants under 
section 112(b)(1) to public or private nonprofit organizations 
that--
          [(1) have experience with service-learning;
          [(2) were in existence at least 1 year before the 
        date on which the organization submitted an application 
        under section 114(a); and
          [(3) meet such other criteria as the Chief Executive 
        Officer may establish.
  [(b) Use of Funds.--Such organizations may use grants made 
under subsection (a) to make grants to partnerships described 
in paragraph (2) or (4) of section 111(a) to implement, 
operate, or expand school-based service-learning programs as 
described in such section and provide technical assistance and 
training to appropriate persons.

[SEC. 112. GRANTS AND ALLOTMENTS.

  [(a) Indian Tribes and Territories.--Of the amounts 
appropriated to carry out this subpart for any fiscal year, the 
Corporation shall reserve an amount of 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. The Corporation may also make payments 
from such amount to Palau, in accordance with its needs, until 
such time as the Compact of Free Association with Palau is 
ratified.
  [(b) Grants and Allotments Through States.--The Corporation 
shall use the remainder of the funds appropriated to carry out 
this subpart for any fiscal year as follows:
          [(1) Grants.--Except as provided in paragraph (3), 
        from 25 percent of such remainder, the Corporation may 
        make grants, on a competitive basis, to--
                  [(A) States and Indian tribes; or
                  [(B) as described in section 111B, to 
                grantmaking entities.
          [(2) Allotments.--
                  [(A) School-age youth.--Except as provided in 
                paragraph (3), from 37.5 percent of such 
                remainder, the Corporation shall allot to each 
                State an amount that bears the same ratio to 
                37.5 percent of such remainder as the number of 
                school-age youth in the State bears to the 
                total number of school-age youth of all States.
                  [(B) Allocation under elementary and 
                secondary education act of 1965.--Except as 
                provided in paragraph (3), from 37.5 percent of 
                such remainder, the Corporation shall allot to 
                each State an amount that bears the same ratio 
                to 37.5 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. 2711 
                et seq.) or its successor authority bears to 
                such allocations to all States.
          [(3) Minimum amount.--No State shall receive, under 
        paragraph (2), an allotment that is less than the 
        allotment such State received for fiscal year 1993 
        under section 112(b) of this Act, as in effect on the 
        day before the date of enactment of this part. If the 
        amount of funds made available in a fiscal year to 
        carry out paragraph (2) is insufficient to make such 
        allotments, the Corporation shall make available sums 
        from the 25 percent described in paragraph (1) for such 
        fiscal year to make such allotments.
          [(4) Definition.--Notwithstanding section 101(26), 
        for purposes of this subsection, the term ``State'' 
        means each of the several States, the District of 
        Columbia, and the Commonwealth of Puerto Rico.
  [(c) Reallotment.--If the Corporation determines that the 
allotment of a State or Indian tribe under this section will 
not be required for a fiscal year because the State or Indian 
tribe does not submit an application for the allotment under 
section 113 that meets the requirements of such section and 
such other requirements as the Chief Executive Officer may 
determine to be appropriate, the Corporation shall, after 
making any grants under section 111A to a partnership or agency 
described in such section, make any remainder of such allotment 
available for reallotment to such other States, and Indian 
tribes, with approved applications submitted under section 113, 
as the Corporation may determine to be appropriate.
  [(d) Exception.--Notwithstanding subsections (a) and (b), if 
less than $20,000,000 is appropriated for any fiscal year to 
carry out this subpart, the Corporation shall award grants to 
States and Indian tribes, from the amount so appropriated, on a 
competitive basis to pay for the Federal share of the 
activities described in section 111.

[SEC. 113. STATE OR TRIBAL APPLICATIONS.

  [(a) Submission.--To be eligible to receive a grant under 
section 112(b)(1), an allotment under subsection (a) or (b)(2) 
of section 112, a reallotment under section 112(c), or a grant 
under section 112(d), a State, acting through the State 
educational agency, or an Indian tribe, shall prepare, submit 
to the Corporation, and obtain approval of, an application at 
such time and in such manner as the Chief Executive Officer may 
reasonably require.
  [(b) Contents.--An application that is submitted under 
subsection (a) with respect to service-learning programs 
described in section 111 shall include--
          [(1) a 3-year strategic plan, or a revision of a 
        previously approved 3-year strategic plan, for 
        promoting service-learning through the programs, which 
        plan shall contain such information as the Chief 
        Executive Officer may reasonably require, including 
        information demonstrating that the programs will be 
        carried out in a manner consistent with the approved 
        strategic plan;
          [(2) assurances that--
                  [(A) the applicant will 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
                  [(B) the applicant will comply with the 
                nonduplication and nondisplacement requirements 
                of section 177 and the grievance procedure 
                requirements of section 176(f); and
          [(3) such additional information as the Chief 
        Executive Officer may reasonably require.

[SEC. 114. LOCAL APPLICATIONS.

  [(a) Application to Corporation To Make Grants for School-
Based Service-Learning Programs.--
          [(1) In general.--To be eligible to receive a grant 
        in accordance with section 111B(a) to make grants 
        relating to school-based service-learning programs 
        described in section 111(a), a grantmaking entity shall 
        prepare, submit to the Corporation, and obtain approval 
        of, an application.
          [(2) Submission.--Such application shall be submitted 
        at such time and in such manner, and shall contain such 
        information, as the Chief Executive Officer may 
        reasonably require. Such application shall include a 
        proposal to assist such programs in more than 1 State.
  [(b) Direct Application to Corporation To Carry Out School-
Based Service-Learning Programs in Nonparticipating States.--To 
be eligible to receive a grant from the Corporation in the 
circumstances described in section 111A to carry out an 
activity as described in such section, a partnership or agency 
described in such section shall prepare, submit to the 
Corporation, and obtain approval of, an application. Such 
application shall be submitted at such time and in such manner, 
and shall contain such information, as the Chief Executive 
Officer may reasonably require.
  [(c) Application to State or Indian Tribe To Receive 
Assistance To Carry Out School-Based Service-Learning 
Programs.--
          [(1) In general.--Any--
                  [(A) qualified organization that desires to 
                receive financial assistance under this subpart 
                from a State or Indian tribe for an activity 
                described in section 111(a)(1);
                  [(B) partnership described in section 
                111(a)(2) that desires to receive such 
                assistance from a State, Indian tribe, or 
                grantmaking entity for an activity described in 
                section 111(a)(2);
                  [(C) agency described in section 111(a)(3) 
                that desires to receive such assistance from a 
                State or Indian tribe for an activity described 
                in such section; or
                  [(D) partnership described in section 
                111(a)(4) that desires to receive such 
                assistance from a State or Indian tribe for an 
                activity described in such section,
        to be carried out through a service-learning program 
        described in section 111, shall prepare, submit to the 
        State educational agency, Indian tribe, or grantmaking 
        entity, 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, tribe, or entity may 
        reasonably require.
  [(d) Regulations.--The Corporation shall by regulation 
establish standards for the information and assurances required 
to be contained in an application submitted under subsection 
(a) or (b) with respect to a service-learning program described 
in section 111, including, at a minimum, assurances that--
          [(1) prior to the placement of a participant, the 
        entity carrying out the program 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;
          [(2) the entity carrying out the program will develop 
        an age-appropriate learning component for participants 
        in the program that shall include a chance for 
        participants to analyze and apply their service 
        experiences; and
          [(3) the entity carrying out the program will comply 
        with the nonduplication and nondisplacement 
        requirements of section 177 and the grievance procedure 
        requirements of section 176(f).
  [(e) Limitation on Same Project in Multiple Applications.--No 
applicant shall submit an application under section 113 or this 
section, and the Corporation shall reject an application that 
is submitted under section 113 or this section, if the 
application describes a project proposed to be conducted using 
assistance requested by the applicant and the project is 
already described in another application pending before the 
Corporation.

[SEC. 115. CONSIDERATION OF APPLICATIONS.

  [(a) Criteria for Applications.--In approving applications 
for financial assistance under subsection (a), (b), (c), or (d) 
of section 112, the Corporation shall consider such criteria 
with respect to sustainability, replicability, innovation, and 
quality of programs under this subpart as the Chief Executive 
Officer may by regulation specify. In providing assistance 
under this subpart, a State educational agency, Indian tribe, 
or grantmaking entity shall consider such criteria.
  [(b) Priority for Local Applications.--In providing 
assistance under this subpart, a State educational agency or 
Indian tribe, or the Corporation if section 111A or 111B 
applies, shall give priority to entities that submit 
applications under section 114 with respect to service-learning 
programs described in section 111 that--
          [(1) involve participants in the design and operation 
        of the program;
          [(2) are in the greatest need of assistance, such as 
        programs targeting low-income areas;
          [(3) involve--
                  [(A) students from public elementary or 
                secondary schools, and students from private 
                elementary or secondary schools, serving 
                together; or
                  [(B) students of different ages, races, 
                sexes, ethnic groups, disabilities, or economic 
                backgrounds, serving together; or
          [(4) are integrated into the academic program of the 
        participants.
  [(c) Rejection of Applications.--If the Corporation rejects 
an application submitted by a State under section 113 for an 
allotment under section 112(b)(2), the Corporation shall 
promptly notify the State of the reasons for the rejection of 
the application. The Corporation shall provide the State with a 
reasonable opportunity to revise and resubmit the application 
and shall provide technical assistance, if needed, to the State 
as part of the resubmission process. The Corporation shall 
promptly reconsider such resubmitted application.

[SEC. 115A. PARTICIPATION OF STUDENTS AND TEACHERS FROM PRIVATE 
                    SCHOOLS.

  [(a) In General.--To the extent consistent with the number of 
students in the State or Indian tribe or in the school district 
of the local educational agency involved who are enrolled in 
private nonprofit elementary and secondary schools, such State, 
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 subpart; 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 subpart.
  [(b) Waiver.--If a State, 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, 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. Such 
waivers shall be subject to consultation, withholding, notice, 
and judicial review requirements in accordance with paragraphs 
(3) and (4) of section 1017(b) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 2727(b)), as in effect on the 
day preceding the date of enactment of the Improving America's 
Schools Act of 1994.

[SEC. 116. FEDERAL, STATE, AND LOCAL CONTRIBUTIONS.

  [(a) Share.--
          [(1) In general.--The Federal share attributable to 
        this subpart of the cost of carrying out a program for 
        which a grant or allotment is made under this subpart 
        may not exceed--
                  [(A) 90 percent of the total cost of the 
                program for the first year for which the 
                program receives assistance under this subpart;
                  [(B) 80 percent of the total cost of the 
                program for the second year for which the 
                program receives assistance under this subpart;
                  [(C) 70 percent of the total cost of the 
                program for the third year for which the 
                program receives assistance under this subpart; 
                and
                  [(D) 50 percent of the total cost of the 
                program for the fourth year, and for any 
                subsequent year, for which the program receives 
                assistance under this subpart.
          [(2) Calculation.--In providing for the remaining 
        share of the cost of carrying out such a program, each 
        recipient of assistance under this subpart--
                  [(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 Federal sources 
                (other than funds made available under the 
                national service laws).
  [(b) Waiver.--The Chief Executive Officer may waive the 
requirements of subsection (a) in whole or in part with respect 
to any such 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.

[SEC. 116A. LIMITATIONS ON USES OF FUNDS.

  [(a) Administrative Costs.--
          [(1) Limitation.--Not more than 5 percent of the 
        amount of assistance provided to a State educational 
        agency, Indian tribe, or grantmaking entity that is the 
        original recipient of a grant or allotment under 
        subsection (a), (b), (c), or (d) of section 112 for a 
        fiscal year may be used to pay for administrative costs 
        incurred by--
                  [(A) the original recipient; or
                  [(B) the entity carrying out the service-
                learning programs supported with the 
                assistance.
          [(2) Rules on use.--The Chief Executive Officer may 
        by rule prescribe the manner and extent to which--
                  [(A) such assistance may be used to cover 
                administrative costs; and
                  [(B) that portion of the assistance available 
                to cover administrative costs should be 
                distributed between--
                          [(i) the original recipient; and
                          [(ii) the entity carrying out the 
                        service-learning programs supported 
                        with the assistance.
  [(b) Capacity-Building Activities.--
          [(1) In general.--Except as provided in paragraph 
        (2), not less than 10 percent and not more than 15 
        percent of the amount of assistance provided to a State 
        educational agency or Indian tribe that is the original 
        recipient of a grant or allotment under subsection (a), 
        (b), (c), or (d) of section 112 for a fiscal year may 
        be used to build capacity through training, technical 
        assistance, curriculum development, and coordination 
        activities, described in section 111(a)(1).
          [(2) Waiver.--The Chief Executive Officer may waive 
        the requirements of paragraph (1) in order to permit an 
        agency or a tribe to use not less than 10 percent and 
        not more than 20 percent of such amount to build 
        capacity as provided in paragraph (1). To be eligible 
        to receive such a waiver such an agency or tribe shall 
        submit an application to the Chief Executive Officer at 
        such time, in such manner, and containing such 
        information as the Chief Executive Officer may require.
  [(c) Local Uses of Funds.--Funds made available under this 
subpart may not be used to pay any stipend, allowance, or other 
financial support to any student who is a participant under 
this subtitle, except reimbursement for transportation, meals, 
and other reasonable out-of-pocket expenses directly related to 
participation in a program assisted under this subpart.

[SEC. 116B. DEFINITIONS.

  [As used in this subpart:
          [(1) Grantmaking entity.--The term ``grantmaking 
        entity'' means an organization described in section 
        111B(a).
          [(2) School-based.--The term ``school-based'' means 
        based in an elementary school or a secondary school.
          [(3) Student.--Notwithstanding section 101(29), the 
        term ``student'' means an individual who is enrolled in 
        an elementary or secondary school on a full- or part-
        time basis.

   [Subpart B--Community-Based Service Programs for School-Age Youth

[SEC. 117. DEFINITIONS.

  [As used in this subpart:
          [(1) Community-based service program.--The term 
        ``community-based service program'' means a program 
        described in section 117A(b)(1)(A).
          [(2) Grantmaking entity.--The term ``grantmaking 
        entity'' means a qualified organization that--
                  [(A) submits an application under section 
                117C(a) to make grants to qualified 
                organizations;
                  [(B) was in existence at least 1 year before 
                the date on which the organization submitted 
                the application; and
                  [(C) meets such other criteria as the Chief 
                Executive Officer shall establish.
          [(3) 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.

[SEC. 117A. GENERAL AUTHORITY.

  [(a) Grants.--From the funds appropriated to carry out this 
subpart for a fiscal year, the Corporation may make grants to 
StateCommissions, grantmaking entities, and qualified 
organizations to pay for the Federal share of the implementation, 
operation, expansion, or replication of community-based service 
programs.
  [(b) Use of Funds.--
          [(1) State commissions and grantmaking entities.--A 
        State Commission or grantmaking entity may use a grant 
        made under subsection (a)--
                  [(A) to make a grant to a qualified 
                organization to implement, operate, expand, or 
                replicate a community-based service program 
                that provides for meaningful human, 
                educational, environmental, or public safety 
                service by participants, who shall be school-
                age youth; or
                  [(B) to provide training and technical 
                assistance to such an organization.
          [(2) Qualified organizations.--A qualified 
        organization, other than a grantmaking entity, may use 
        a grant made under subsection (a) to implement, 
        operate, expand, or replicate a program described in 
        paragraph (1)(A).

[SEC. 117B. STATE APPLICATIONS.

  [(a) In General.--To be eligible to receive a grant under 
section 117A(a), a State Commission shall prepare, submit to 
the Corporation, and obtain approval of, an application.
  [(b) Submission.--Such application shall be submitted to the 
Corporation at such time and in such manner, and shall contain 
such information, as the Chief Executive Officer may reasonably 
require.
  [(c) Contents.--Such an application shall include, at a 
minimum, a State plan that contains the information and 
assurances described in section 117C(d) with respect to each 
community-based service program proposed to be carried out 
through funding distributed by the State Commission under this 
subpart.

[SEC. 117C. LOCAL APPLICATIONS.

  [(a) Application to Corporation To Make Grants for Community-
Based Service Programs.--To be eligible to receive a grant from 
the Corporation under section 117A(a) to make grants under 
section 117A(b)(1), a grantmaking entity shall prepare, submit 
to the Corporation, and obtain approval of, an application that 
proposes a community-based service program to be carried out 
through grants made to qualified organizations. Such 
application shall be submitted at such time and in such manner, 
and shall contain such information, as the Chief Executive 
Officer may reasonably require.
  [(b) Direct Application to Corporation To Carry Out 
Community-Based Service Programs.--To be eligible to receive a 
grant from the Corporation under section 117A(a) to implement, 
operate, expand, or replicate a community service program, a 
qualified organization shall prepare, submit to the 
Corporation, and obtain approval of, an application that 
proposes a community-based service program to be carried out at 
multiple sites, or that proposes an innovative community-based 
service program. Such application shall be submitted at such 
time and in such manner, and shall contain such information, as 
the Chief Executive Officer may reasonably require.
  [(c) Application to State Commission or Grantmaking Entity To 
Receive Grants To Carry Out Community-Based Service Programs.--
To be eligible to receive a grant from a State Commission or 
grantmaking entity under section 117A(b)(1), a qualified 
organization shall prepare, submit to the Commission or entity, 
and obtain approval of, an application. Such application shall 
be submitted at such time and in such manner, and shall contain 
such information, as the Commission or entity may reasonably 
require.
  [(d) Regulations.--The Corporation shall by regulation 
establish standards for the information and assurances required 
to be contained in an application submitted under subsection 
(a) or (b) with respect to a community-based service program, 
including, at a minimum--
          [(1) an assurance that the entity carrying out the 
        program proposed by the applicant will comply with the 
        nonduplication and nondisplacement provisions of 
        section 177 and the grievance procedure requirements of 
        section 176(f);
          [(2) an assurance that the entity carrying out the 
        program will, 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 that are 
        engaged in the same or similar work as the work 
        proposed to be carried out by the program, to prevent 
        the displacement of such employees; and
          [(3) in the case of an application submitted by a 
        grantmaking entity, information demonstrating that the 
        entity will make grants for a program to--
                  [(A) carry out activities described in 
                section 117A(b)(1) in two or more States, under 
                circumstances in which the activities carried 
                out under such program can be carried out more 
                efficiently through one program than through 
                two or more programs; and
                  [(B) 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.
  [(e) Limitation on Same Project in Multiple Applications.--No 
applicant shall submit an application under section 117B or 
this section, and the Corporation shall reject an application 
that is submitted under section 117B or this section, if the 
application describes a project proposed to be conducted using 
assistance requested by the applicant and the project is 
already described in another application pending before the 
Corporation.

[SEC. 117D. CONSIDERATION OF APPLICATIONS.

  [(a) Application of Criteria.--The Corporation shall apply 
the criteria described in subsection (b) in determining whether 
to approve an application submitted under section 117B or under 
subsection (a) or (b) of section 117C and to provide assistance 
under section 117A to the applicant on the basis of the 
application.
  [(b) Assistance Criteria.--In evaluating such an application 
with respect to a program under this subpart, the Corporation 
shall consider the criteria established for national service 
programs under section 133(c).
  [(c) Application to Subgrants.--A State Commission or 
grantmaking entity shall apply the criteria described in 
subsection (b) in determining whether to approve an application 
under section 117C(c) and to make a grant under section 
117A(b)(1) to the applicant on the basis of the application.

[SEC. 117E. FEDERAL, STATE, AND LOCAL CONTRIBUTIONS.

  [(a) Federal Share.--
          [(1) In general.--The Federal share attributable to 
        this subpart of the cost of carrying out a program for 
        which a grant is made under this subpart may not exceed 
        the percentage specified in subparagraph (A), (B), (C), 
        or (D) of section 116(a)(1), as appropriate.
          [(2) Calculation.--Each recipient of assistance under 
        this subpart shall comply with section 116(a)(2).
  [(b) Waiver.--The Chief Executive Officer may waive the 
requirements of subsection (a), in whole or in part, as 
provided in section 116(b).

[SEC. 117F. LIMITATIONS ON USES OF FUNDS.

  [(a) Administrative Costs.--Not more than 5 percent of the 
amount of assistance provided to a State Commission, 
grantmaking entity, or qualified organization that is the 
original recipient of a grant under section 117A(a) for a 
fiscal year may be used to pay for administrative costs 
incurred by--
          [(1) the original recipient; or
          [(2) the entity carrying out the community-based 
        service programs supported with the assistance.
  [(b) Rules on Use.--The Chief Executive Officer may by rule 
prescribe the manner and extent to which--
          [(1) such assistance may be used to cover 
        administrative costs; and
          [(2) that portion of the assistance available to 
        cover administrative costs should be distributed 
        between--
                  [(A) the original recipient; and
                  [(B) the entity carrying out the community-
                based service programs supported with the 
                assistance.

                       [Subpart C--Clearinghouse

[SEC. 118. SERVICE-LEARNING CLEARINGHOUSE.

  [(a) In General.--The Corporation shall provide financial 
assistance, from funds appropriated to carry out subtitle H, to 
organizations described in subsection (b) to establish a 
clearinghouse, which shall carry out activities, either 
directly or by arrangement with another such organization, with 
respect to information about service-learning.
  [(b) Public or Private Nonprofit Organizations.--Public or 
private nonprofit organizations that have extensive experience 
with service-learning, including use of adult volunteers to 
foster service-learning, shall be eligible to receive 
assistance under subsection (a).
  [(c) Function of Clearinghouse.--An organization that 
receives assistance under subsection (a) may--
          [(1) assist entities carrying out State or local 
        service-learning programs with needs assessments and 
        planning;
          [(2) conduct research and evaluations concerning 
        service-learning;
          [(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 entities carrying 
        out service-learning programs and participants in such 
        programs;
          [(5) 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;
          [(6) provide information regarding methods to make 
        service-learning programs accessible to individuals 
        with disabilities;
          [(7)(A) 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
          [(B) coordinate the activities of the Clearinghouse 
        with appropriate entities to avoid duplication of 
        effort;
          [(8) make recommendations to State and local entities 
        on quality controls to improve the quality of service-
        learning programs;
          [(9) assist organizations in recruiting, screening, 
        and placing service-learning coordinators; and
          [(10) carry out such other activities as the Chief 
        Executive Officer determines to be appropriate.]

         PART I--PROGRAMS FOR ELEMENTARY AND SECONDARY STUDENTS

SEC. 111. ASSISTANCE TO STATES 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, 
United States territories, and Indian tribes to pay for the 
Federal share of--
          (1) planning and building the capacity within the 
        State to implement service-learning programs that are 
        based principally in elementary and secondary schools, 
        including--
                  (A) providing training for teachers, 
                supervisors, personnel from community-based 
                agencies (particularly with regard to the 
                utilization 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 student academic 
                achievement standards, to be integrated into 
                academic programs, including an age-appropriate 
                learning component that provides participants 
                an opportunity to analyze and apply their 
                service experiences;
                  (C) forming local partnerships described in 
                paragraph (2) or (4) to develop school-based 
                service-learning programs in accordance with 
                this part;
                  (D) devising appropriate methods for research 
                and evaluation of the educational value of 
                service-learning and the effect of service-
                learning activities on communities; and
                  (E) 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;
          (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 of 
        Federal funds by State educational agencies 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--
                                  (I) has a demonstrated 
                                expertise in the provision of 
                                services to meet unmet human, 
                                education, environmental, or 
                                public safety needs; and
                                  (II) will make projects 
                                available for participants, who 
                                shall be students; and
                          (ii) may include a private for-profit 
                        business or private elementary or 
                        secondary school;
          (3) planning of school-based service-learning 
        programs, through distribution by State educational 
        agencies of Federal funds made available under this 
        part to local educational agencies, which planning may 
        include paying for the cost of--
                  (A) the salaries and benefits of service-
                learning coordinators; or
                  (B) the recruitment, training, supervision, 
                and placement of service-learning coordinators 
                who may be participants in a program under 
                subtitle C or receive a national service 
                educational award under subtitle D,
        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); 
        or
          (4) implementing, operating, or expanding school-
        based service-learning programs to utilize service-
        learning to improve the education of students, through 
        distribution by State educational agencies of Federal 
        funds made available under this part to--
                  (A) local educational agencies;
                  (B) public or private nonprofit 
                organizations;
                  (C) other educational agencies; or
                  (D) partnerships or combinations of local 
                educational agencies and entities described in 
                subparagraphs (B) and (C).
  (b) Duties of Service-Learning Coordinator.--A service-
learning coordinator referred to in paragraph (2) or (3) of 
subsection (a) shall provide services that may include--
          (1) providing technical assistance and information 
        to, and facilitating the training of, teachers who want 
        to use service-learning in their classrooms;
          (2) assisting local partnerships described in 
        subsection (a) in the planning, development, and 
        execution of service-learning projects; and
          (3) carrying out such other duties as the recipient 
        of assistance under this part may determine to be 
        appropriate.
  (c) Related Expenses.--An entity that receives financial 
assistance under this part 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.

SEC. 112. ALLOTMENTS.

  (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 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.--After reserving amounts under 
subsection (a), the Corporation shall use the remainder of the 
funds appropriated to carry out this part for any fiscal year 
as follows:
          (1) Allotments.--
                  (A) 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 of all States.
                  (B) Allocation 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. 2711 et seq.) 
                or its successor authority bears to such 
                allocations to all States.
          (2) Definition.--Notwithstanding section 101(26), for 
        purposes of this subsection, the term ``State'' means 
        each of the several States, the District of Columbia, 
        and the Commonwealth of Puerto Rico.
  (c) Reallotment.--If the Corporation determines that the 
allotment of a State or Indian tribe under this section will 
not be required for a fiscal year because the State or Indian 
tribe does not submit an application for the allotment under 
section 113 that meets the requirements of such section and 
such other requirements as the Chief Executive Officer may 
determine to be appropriate, the Corporation shall make any 
remainder of such allotment available for reallotment to such 
other States and Indian tribes, with approved applications 
submitted under section 113, as the Corporation may determine 
to be appropriate.

SEC. 113. APPLICATIONS.

  An application for an allotment under this part shall 
include--
          (1) a proposal for a 3-year plan promoting service-
        learning, 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;
          (2) information, when applicable, about the 
        applicant's efforts to--
                  (A) include any opportunities for students 
                enrolled in schools or other programs of 
                education providing elementary or secondary 
                education under State law to participate in 
                service-learning programs and ensure that such 
                service-learning programs include opportunities 
                for such students to serve together;
                  (B) involve participants in the design and 
                operation of the program;
                  (C) promote service-learning in areas of 
                greatest need, including low-income areas;
                  (D) ensure that students of different ages, 
                races, sexes, ethnic groups, disabilities, and 
                economic backgrounds have opportunities to 
                serve together; and
                  (E) otherwise integrate service opportunities 
                into the academic program of the participants; 
                and
          (3) assurances that the applicant will comply with 
        the nonduplication and nondisplacement requirements of 
        section 177 and the grievance procedures required by 
        section 176.

SEC. 114. CONSIDERATION OF APPLICATIONS.

  In considering applications under this part, the Corporation 
shall use criteria that include those approved by the Board of 
Directors.

SEC. 115. FEDERAL, STATE, AND LOCAL CONTRIBUTIONS.

  (a) Federal Share.--
          (1) In general.--The Federal share of the cost of 
        carrying out a program for which a grant is made under 
        this part may not exceed 50 percent of the total cost 
        of the program.
          (2) Non-federal contribution.--In providing for the 
        remaining share of the cost of carrying out such a 
        program, each recipient of 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; 
                and
                  (B) may provide for such share through State 
                sources or local sources.
  (b) Waiver.--The Chief Executive Officer may waive the 
requirements of subsection (a) in whole or in part with respect 
to any such 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.

SEC. 116. LIMITATIONS ON USES OF FUNDS.

  Not more than 5 percent of the amount of assistance received 
by an applicant in a fiscal year may be used to pay for 
administrative costs, in accordance with such standards as the 
Corporation may issue.

  PART II--HIGHER EDUCATION INNOVATIVE PROGRAMS FOR COMMUNITY SERVICE

SEC. 119. HIGHER EDUCATION INNOVATIVE PROGRAMS FOR COMMUNITY SERVICE.

  (a) * * *

           *       *       *       *       *       *       *

  [(c) Federal Share.--
          [(1) Share.--
                  [(A) In general.--The Federal share of the 
                cost of carrying out a community service 
                project for which a grant or contract is 
                awarded under this part may not exceed 50 
                percent.
                  [(B) Calculation.--Each recipient of 
                assistance under this part shall comply with 
                section 116(a)(2).
          [(2) Waiver.--The Chief Executive Officer may waive 
        the requirements of paragraph (1), in whole or in part, 
        as provided in section 116(b).
  [(d) Application for Grant.--
          [(1) Submission.--To receive a grant or enter into a 
        contract under this part, an institution or partnership 
        described in subsection (b) shall prepare, submit to 
        the Corporation, and obtain approval of, an application 
        at such time, in such manner, and containing such 
        information and assurances as the Corporation may 
        reasonably require. In requesting applications for 
        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 grievance 
                        procedure requirements of section 
                        176(f); and
                  [(B) such other assurances as the Chief 
                Executive Officer may reasonably require.
  [(e) Priority.--
          [(1) In general.--In making grants and entering into 
        contracts under subsection (b), the Corporation shall 
        give priority to applicants that submit applications 
        containing proposals that--
                  [(A) demonstrate the commitment of the 
                institution of higher education, other than by 
                demonstrating the commitment of the students, 
                to supporting the community service projects 
                carried out under the program;
                  [(B) specify the manner in which the 
                institution will promote faculty, 
                administration, and staff participation in the 
                community service projects;
                  [(C) 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;
                  [(D) describe any partnership that will 
                participate in the community service projects, 
                such as a partnership comprised of--
                          [(i) the institution;
                          [(ii)(I) a community-based agency;
                          [(II) a local government agency; or
                          [(III) a nonprofit entity that serves 
                        or involves school-age youth or older 
                        adults; and
                          [(iii) a student organization;
                  [(E) demonstrate community involvement in the 
                development of the proposal;
                  [(F) specify that the institution will use 
                such assistance to strengthen the service 
                infrastructure in institutions of higher 
                education; or
                  [(G) with respect to projects involving 
                delivery of service, specify projects that 
                involve leadership development of school-age 
                youth.
          [(2) Determination.--In giving priority to applicants 
        under paragraph (1), the Corporation shall give 
        increased priority to such an applicant for each 
        characteristic described in subparagraphs (A) through 
        (G) of paragraph (1) that is reflected in the 
        application submitted by the applicant.
  [(f) 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.
  [(g) Definition.--Notwithstanding section 101(29), 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.]
  (c) Special Consideration.--To the extent practicable, the 
Corporation shall give special consideration to applications 
submitted by Historically Black Colleges and Universities, 
Hispanic-serving institutions, and Tribal Colleges and 
Universities.
  (d) Federal, State, and Local Contributions.--
          (1) Federal share.--
                  (A) In general.--The Federal share of the 
                cost of carrying out a program for which a 
                grant is made under this part may not exceed 50 
                percent of the total cost of the program.
                  (B) Non-federal contribution.--In providing 
                for the remaining share of the cost of carrying 
                out such a program, each recipient of a grant 
                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.
          (2) Waiver.--The Chief Executive Officer may waive 
        the requirements of subsection (a) in whole or in part 
        with respect to any such 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.
  (e) Application for Grant.--
          (1) Submission.--To receive a grant or enter into a 
        contract under this part, an applicant shall prepare, 
        submit to the Corporation, and obtain approval of, an 
        application at such time, in such manner, and 
        containing such information and assurances as the 
        Corporation may reasonably require. In requesting 
        applications for 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 
                        grievance procedures required by 
                        section 176; and
                  (B) such other assurances as the Chief 
                Executive Officer may reasonably require.
  (f) Priority.--In making grants and entering into contracts 
under subsection (b), the Corporation shall give priority to 
applicants that submit applications containing proposals that--
          (1) demonstrate the commitment of the institution of 
        higher education, 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;
          (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;
                  (ii) a local government agency; or
                  (iii) a non-profit entity that serves or 
                involves school-age youth or older adults; and
                  (C) a student organization;
          (5) demonstrate community involvement in the 
        development of the proposal;
          (6) describe research designed to identify best 
        practices and other methods to improve service-
        learning;
          (7) specify that the institution will use such 
        assistance to strengthen the service infrastructure in 
        institutions of higher education; or
          (8) with respect to projects involving delivery of 
        services, specify projects that involve leadership 
        development of school aged youth.
  (g) Definition.--Notwithstanding section 101(29), 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.
  (h) Federal Work-Study.--To be eligible for assistance under 
this part, an institution of higher education must demonstrate 
that it meets the minimum requirements under section 
443(b)(2)(B) of the Higher Education Act of 1965 (42 U.S.C. 
2753(b)(2)(B)) relating to the participation of Federal Work-
Study students in community service activities, or has received 
a waiver of those requirements from the Secretary of Education.

  PART III--COMMUNITY-BASED PROGRAMS, TRAINING, AND OTHER INITIATIVES

SEC. 120. COMMUNITY-BASED PROGRAMS, TRAINING, AND OTHER INITIATIVES.

  (a) Methods of Supporting Activities.--From the funds 
appropriated to carry out this part for a fiscal year, the 
Corporation may make grants to, or enter into contracts or 
cooperative agreements with, eligible entities.
  (b) Eligible Entities.--Eligible entities under this part are 
public or private nonprofit organizations, State education 
agencies, State commissions on national and community service, 
institutions of higher education, and consortia of such 
entities.
  (c) Authorized Activities.--Funds appropriated to carry out 
this part may be used to--
          (1) conduct community-based programs that provide for 
        meaningful human, educational, environmental, or public 
        safety service by school-age participants;
          (2) provide training or technical assistance to 
        support service-learning;
          (3) involve students in emergency preparedness and 
        homeland security activities;
          (4) promote the recognition of students who perform 
        outstanding community service and schools that have 
        implemented outstanding service-learning programs; and
          (5) carry out demonstration programs, research, and 
        evaluation related to service-learning.
  (d) Limitation on Federal Share of Community-Based Program 
Costs.--
          (1) In general.--Except as provided in paragraph (4), 
        the Federal share of the cost of carrying out a program 
        for which a grant is made under this part may not 
        exceed 50 percent of the total cost of the program.
          (2) Non-federal contribution.--In providing for the 
        remaining share of the cost of carrying out such a 
        program, each recipient of assistance under this part--
                  (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 or local sources.
          (3) Waiver.--The Chief Executive Officer may waive 
        the requirements of paragraph (1) in whole or in part 
        with respect to any such 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.
          (4) Exemption.--The requirements in paragraph (1) 
        shall not apply to entities that receive a grant or 
        enter into a cooperative agreement or contract to 
        provide training or technical assistance, recognition, 
        demonstration, research, or evaluation under this part.

                         PART IV--CLEARINGHOUSE

SEC. 120A. SERVICE-LEARNING CLEARINGHOUSE.

  (a) In General.--The Corporation shall provide financial 
assistance, from funds appropriated to carry out subtitle H, to 
organizations described in subsection (b) to establish a 
clearinghouse, which shall carry out activities, either 
directly or by arrangement with another such organization, with 
respect to information about service-learning.
  (b) Public or Private Nonprofit Organizations.--Public or 
private nonprofit organizations that have extensive experience 
with service-learning, including use of adult volunteers to 
foster service-learning, shall be eligible to receive 
assistance under subsection (a).
  (c) Function of Clearinghouse.--An organization that receives 
assistance under subsection (a) may--
          (1) assist entities carrying out State or local 
        service-learning programs with needs assessments and 
        planning;
          (2) conduct research and evaluations concerning 
        service-learning;
          (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 entities carrying 
        out service-learning programs and participants in such 
        programs;
          (5) 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;
          (6) provide information regarding methods to make 
        service-learning programs accessible to individuals 
        with disabilities;
          (7)(A) 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
          (B) coordinate the activities of the Clearinghouse 
        with appropriate entities to avoid duplication of 
        effort;
          (8) make recommendations to State and local entities 
        on quality controls to improve the quality of service-
        learning programs;
          (9) assist organizations in recruiting, screening, 
        and placing service-learning coordinators; and
          (10) carry out such other activities as the Chief 
        Executive Officer determines to be appropriate.

               Subtitle C--National Service Trust Program

                 PART I--INVESTMENT IN NATIONAL SERVICE

SEC. 121. AUTHORITY TO PROVIDE ASSISTANCE AND APPROVED NATIONAL SERVICE 
                    POSITIONS.

  (a) * * *
  (b) Restrictions on Agreements With Federal Agencies.--
          (1) Agreements authorized.--The Corporation may enter 
        into a contract or cooperative agreement with another 
        Federal agency to support a national service program 
        carried out [by the agency. The support provided by the 
        Corporation pursuant to the contract or cooperative 
        agreement may include the transfer to the Federal 
        agency of funds available to the Corporation under this 
        subtitle.] by the agency, including programs under the 
        Public Lands Corps and Urban Youth Corps as described 
        in section 122(a)(2).
          [(2) Matching funds requirements.--A Federal agency 
        receiving assistance under this subsection shall not be 
        required to satisfy the matching funds requirements 
        specified in subsection (e). However, the 
        supplementation requirements specified in section 173 
        shall apply with respect to the Federal national 
        service programs supported with such assistance.]
          (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 [receiving assistance under this subsection] 
        operating a national service program shall consult with 
        the State Commissions for those States in which 
        projects will be conducted [using such assistance] in 
        order to ensure that the projects do not duplicate 
        projects conducted by State or local national service 
        programs.

           *       *       *       *       *       *       *

  (c) Provision of Approved National Service Positions.--As 
part of the provision of [assistance under subsections (a) and 
(b)] assistance under subsection (a), or in conjunction with 
approving member-based national service positions under section 
129A, 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] carried out using 
        such assistance or in national service positions 
        approved under section 129A; and
          (2) deposit in the National Service Trust established 
        in section 145(a) an amount equal to the product of--
                  (A) * * *
                  (B) the total number of approved national 
                service positions [to be provided] 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) [or (b)] for a fiscal year may be used to pay for 
        administrative costs incurred by--
                  (A) * * *

           *       *       *       *       *       *       *

          (2) Rules on use.--The Corporation may by rule 
        prescribe the manner and extent to which--
                  (A) assistance provided under subsection (a) 
                [or (b)] may be used to cover administrative 
                costs; and

           *       *       *       *       *       *       *

SEC. 122. TYPES OF NATIONAL SERVICE PROGRAMS ELIGIBLE FOR PROGRAM 
                    ASSISTANCE.

  (a) Eligible National Service Programs.--The recipient of a 
grant under section 121(a) [and each Federal agency receiving 
assistance under section 121(b)] shall use the assistance, 
directly or through subgrants to other entities, to carry out 
full- or part-time national service programs, including summer 
programs, that address unmet human, educational, environmental, 
or public safety needs. Subject to subsection (b)(1), these 
national service programs may include the following types of 
national service programs:
          (1) * * *

           *       *       *       *       *       *       *

          (9) A program in which economically disadvantaged 
        individuals who are [between the ages of 16 and 24] 
        between the ages of 16 and 25 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--
                  (A) * * *

           *       *       *       *       *       *       *

          (15) An E-Corps program that involves participants 
        who provide service in a community by developing and 
        assisting in carrying out technology programs.
          (16) A program that engages citizens in public 
        safety, public health, and disaster relief and 
        preparedness, and may include the recruitment and 
        placing of qualified participants in positions to be 
        trainees as law enforcement officers, firefighters and 
        rescue personnel, search and rescue personnel, 
        emergency medical service workers, and/or disaster 
        services workers.
          (17) A program, initiative, or partnership that seeks 
        to expand the number of young people with mentors, 
        either through provision of direct mentoring services 
        or through activities that build the capacity of 
        mentoring organizations to serve more young people.
          [(15)] (18) Such other national service programs 
        addressing unmet human, educational, environmental, or 
        public safety needs as the Corporation may designate.

           *       *       *       *       *       *       *

  (c) National Service Priorities.--
          (1) Establishment.--
                  (A) By corporation.--In order to concentrate 
                national efforts on meeting certain unmet 
                human, educational, environmental, or public 
                safety needs and to achieve the other purposes 
                of this Act, the Corporation shall establish, 
                and after reviewing the strategic plan approved 
                under section 192A(g)(1), periodically alter 
                priorities as appropriate regarding the types 
                of national service programs to be assisted 
                under [subsection (b) or (d) of] section 129 
                and the purposes for which such assistance may 
                be used.

           *       *       *       *       *       *       *

  (d) High School Degree Required for Tutors.--The Corporation 
shall require that recipients of assistance under the national 
service laws to operate tutoring programs involving elementary 
or secondary school students shall certify that individuals 
serving in approved national service positions as tutors in 
such programs have obtained their high school diploma or its 
equivalent, or are enrolled in a program leading to their 
obtaining a high school diploma.
  (e) Literacy Programs.--
          (1) Programs.--Literacy programs that receive 
        assistance under the national service laws shall be 
        based on scientifically based reading research and 
        provide instruction based on the essential components 
        of reading instruction as defined in section 1208 of 
        the ``No Child Left behind Act of 2001'' (Public Law 
        107-110).
          (2) Training required for reading tutors.--The 
        Corporation shall require that recipients of assistance 
        under the national service laws to operate tutoring in 
        reading programs shall, in providing training to 
        participants serving in approved national service 
        positions as tutors, incorporate the recommendations of 
        the National Reading Panel and research from the 
        National Institute of Child Health and Human 
        Development under the auspices of the National 
        Institutes of Health.
  (f) Citizenship Training.--The Corporation shall establish 
requirements for recipients of assistance under the national 
service laws relating to the promotion of citizenship and civic 
engagement,that are consistent with the principles on which 
citizenship programs administered by the Immigration and Naturalization 
Service are based, among individuals enrolled in approved national 
service positions.
  (g) Oath.--Any oath given under the national service laws 
shall be consistent with the principles in the Federal oath of 
office as provided in section 3331 of title 5, United States 
Code.

SEC. 123. 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 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 section 122(a) that 
        receives assistance under [subsection (a) or (b) of 
        section 121] section 121(a).
          (2) A position for a participant in a program that--
                  (A) is carried out by a State, a subdivision 
                of a State, an Indian tribe, a public or 
                private nonprofit organization, an institution 
                of higher education[, or a Federal agency]; and

           *       *       *       *       *       *       *

          (5) A position for a participant in the National 
        Civilian Community Corps under subtitle E.

           *       *       *       *       *       *       *

SEC. 125. TRAINING AND TECHNICAL ASSISTANCE.

  (a) Training Programs.--The Corporation may conduct, directly 
or by grant or contract, appropriate training programs 
regarding national service in order to--
          (1) improve the ability of [national service programs 
        assisted under section 121] programs assisted under the 
        national service laws to meet human, educational, 
        environmental, or public safety needs in communities--
                  (A) * * *

           *       *       *       *       *       *       *

  (b) Technical Assistance.--To the extent appropriate and 
necessary, the Corporation shall make technical assistance 
available to States, Indian tribes, labor organizations, 
organizations operated by young adults, organizations serving 
economically disadvantaged individuals, and other entities 
[described in section 121] assisted under the national service 
laws that desire--
          (1) * * *
          (2) to apply for assistance under such section or 
        under a grant program conducted using assistance 
        [provided under such section] provided under the 
        national service laws.
  (c) Underserved Areas and Populations.--In complying with the 
requirements of this section, the Corporation shall ensure that 
the training and technical assistance needs of programs which 
focus on and provide service opportunities for underserved 
rural and urban areas and populations are addressed.

SEC. 126. 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)(4), the Corporation may 
        make a grant in an amount between [$125,000 and 
        $750,000] $200,000 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) Limitation on amount of grants.--Notwithstanding 
        the amounts specified in paragraph (1), the amount of a 
        grant that may be provided to a State Commission under 
        this subsection, together with other Federal funds 
        available to establish or operate the State Commission, 
        may not exceed--
                  [(A) 85 percent of the total cost to 
                establish or operate the State Commission for 
                the first year for which the State Commission 
                receives assistance under this subsection; and
                  [(B) such smaller percentage of such cost as 
                the Corporation may establish for the second, 
                third, and fourth years of such assistance in 
                order to ensure that the Federal share does not 
                exceed 50 percent of such costs for the fifth 
                year, and any subsequent year, for which the 
                State Commission receives assistance under this 
                subsection.]
          (2) Matching requirement.--In making grants to a 
        State under this subsection, the Corporation shall 
        require the State to provide matching funds in the 
        following amounts:
                  (A) First $100,000.--For the first $100,000 
                of grant amounts provided by the Corporation, a 
                State shall not be required to provide matching 
                funds.
                  (B) Amounts greater than $100,000.--For grant 
                amounts of more than $100,000 and not exceeding 
                $200,000 provided by the Corporation, a State 
                shall provide $1 from non-Federal sources for 
                every $2 provided by the Corporation.
                  (C) Amounts greater than $200,000.--For grant 
                amounts of more than $200,000 provided by the 
                Corporation, a State shall provide $1 from non-
                Federal sources for every $1 provided by the 
                Corporation.

           *       *       *       *       *       *       *

  (c) Challenge Grants for National Service Programs.--
          (1) Assistance authorized.--The Corporation may make 
        challenge grants under this subsection [to national 
        service programs that receive assistance under section 
        121] to programs supported under the national service 
        laws that expand service and volunteering by increasing 
        and strengthening the capacity of community-based 
        organizations, including through the use of regional 
        organizations that facilitate the involvement of small 
        community groups, or by promoting high-quality teaching 
        programs serving low-income students.

           *       *       *       *       *       *       *

          [(3) Amount of assistance.--A challenge grant under 
        this subsection may provide not more than $1 of 
        assistance under this subsection for each $1 in cash 
        raised by the nationalservice program from private 
sources in excess of amounts required to be provided by the program to 
satisfy matching funds requirements under section 121(e). The 
Corporation shall establish a ceiling on the amount of assistance that 
may be provided to a national service program under this subsection.]
          (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, 
        grants under this subsection may provide not more than 
        $1 of assistance 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 as matching funds 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. PROVISION OF ASSISTANCE AND APPROVED NATIONAL SERVICE 
                    POSITIONS BY COMPETITIVE AND OTHER MEANS.

  [(a) Allotments of Assistance and Approved Positions to 
States and Indian Tribes.--
          [(1) 33\1/3\ percent allotment of assistance to 
        certain states.--Of the funds allocated by the 
        Corporation for provision of assistance under 
        subsections (a) and (b) of section 121 for a fiscal 
        year, the Corporation shall make a grant under section 
        121(a) (and a corresponding allotment of approved 
        national service positions) to each of the several 
        States, the District of Columbia, and the Commonwealth 
        of Puerto Rico that has an application approved by the 
        Corporation under section 133. The amount allotted as a 
        grant to each such State under this paragraph for a 
        fiscal year shall be equal to the amount that bears the 
        same ratio to 33\1/3\ 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.
          [(2) One percent allotment for certain territories 
        and possessions.--Of the funds allocated by the 
        Corporation for provision of assistance under 
        subsections (a) and (b) of section 121 for a fiscal 
        year, the Corporation shall reserve 1 percent of the 
        allocated funds for grants under section 121(a) to the 
        United States Virgin Islands, Guam, American Samoa, and 
        the Commonwealth of the Northern Mariana Islands upon 
        approval of an application by the Corporation under 
        section 133. Palau shall also be eligible for a grant 
        under this paragraph from the allotment until such time 
        as the Compact of Free Association with Palau is 
        ratified. The amount allotted as a grant to each such 
        territory or possession under this paragraph for a 
        fiscal year shall be equal to the amount that bears the 
        same ratio to 1 percent of the allocated funds for that 
        fiscal year as the population of the territory or 
        possession bears to the total population of such 
        territories and possessions.
          [(3) One percent allotment for indian tribes.--Of the 
        funds allocated by the Corporation for provision of 
        assistance under subsections (a) and (b) of section 121 
        for a fiscal year, the Corporation shall reserve 1 
        percent of the allocated funds for grants under section 
        121(a) to Indian tribes, to be allotted by the 
        Corporation on a competitive basis in accordance with 
        their respective needs.
          [(4) Effect of failure to apply.--If a State or 
        Indian tribe fails to apply for, or fails to give 
        notice to the Corporation of its intent to apply for, 
        an allotment under this subsection, the Corporation 
        shall use the amount that would have been allotted 
        under this subsection to the State or Indian tribe--
                  [(A) to make grants (and provide approved 
                national service positions in connection with 
                such grants) to other eligible entities under 
                section 121 that propose to carry out national 
                service programs in the State or on behalf of 
                the Indian tribe; and
                  [(B) after making grants under subparagraph 
                (A), to make a reallotment to other States and 
                Indian tribes with approved applications under 
                section 130.
  [(b) 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 Civilian Community Corps 
Demonstration 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 positions to be 
available for distribution under subsections (a) and (d) for 
that fiscal year.
  [(c) Reservation for Special Assistance.--From amounts 
appropriated for a fiscal year pursuant to the authorization of 
appropriation in section 501(a)(2), 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 sections 125 and 
126. The Corporation may not reserve more than $10,000,000 for 
a fiscal year for disaster service under subsection (b) of 
section 126 or challenge grants under subsection (c) of such 
section.
  [(d) Competitive Distribution of Remaining Funds.--
          [(1) State competition.--Of the funds allocated by 
        the Corporation for provision of assistance under 
        subsections (a) and (b) of section 121 for a fiscal 
        year, the Corporation shall use not less than 33\1/3\ 
        percent of the allocated funds to make grants to States 
        on a competitive basis under section 121(a).
          [(2) Federal agencies and other applicants.--The 
        Corporation shall distribute on a competitive basis to 
        subdivisions of States, Indian tribes, public or 
        private nonprofit organizations (including labor 
        organizations), institutions of higher education, and 
        Federal agencies the remainder of the funds allocated 
        by the Corporation for provision of assistance under 
        section 121 for a fiscal year, after operation of 
        paragraph (1) and subsections (a) and (c).
          [(3) Limitation on distribution to federal 
        agencies.--The Corporation may not provide more than 
        \1/3\ of the funds available for competitive 
        distribution under paragraph (2) for a fiscal year to 
        Federal agencies under section 121(b).
          [(4) Priority limitations.--The Corporation may limit 
        the categories of eligible applicants for assistance 
        under paragraph (2) consistent with the priorities 
        established by the Corporation under section 133(d)(2).
          [(5) Reservation of funds for supplemental and 
        outreach grants.--
                  [(A) Reservation.--From amounts appropriated 
                for a fiscal year pursuant to the authorization 
                of appropriation in section 501(a)(2), and 
                subject to the limitation in such section, the 
                Chief Executive Officer shall reserve an amount 
                that is not less than 1 percent of such amounts 
                (except that the amount reserved may not exceed 
                $5,000,000), in order to make supplemental 
                grants as provided in subparagraph (B) and 
                outreach grants as provided in subparagraph 
                (C). The amount reserved pursuant to this 
                paragraph shall be available until expended.
                  [(B) Grants to assist entities in placing 
                applicants who are individuals with a 
                disability.--
                          [(i) In general.--The Chief Executive 
                        Officer shall make grants from a 
                        portion of the funds reserved under 
                        subparagraph (A) to entities that--
                                  [(I) receive a grant to carry 
                                out a national service program 
                                under paragraph (1) or (2);
                                  [(II) demonstrate that the 
                                entity has received a 
                                substantial number of 
                                applications for placement in 
                                the national service program of 
                                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 
                                (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 
                                order to perform national 
                                service; and
                                  [(III) demonstrate that 
                                additional funding would assist 
                                the national service program in 
                                placing a substantial number of 
                                such individuals with a 
                                disability as participants in 
                                projects carried out through 
                                the program.
                          [(ii) Requirements.--Funds made 
                        available through such a supplemental 
                        grant under clause (i) shall be made 
                        available for the same purposes, and 
                        subject to the same requirements, as 
                        funds made available through a grant 
                        made under paragraph (1) or (2).
                  [(C) Grants for outreach to individuals with 
                a disability.--
                          [(i) In general.--From the portion of 
                        the funds reserved under subparagraph 
                        (A) that is not used to make grants 
                        under subparagraph (B), the Chief 
                        Executive Officer shall make grants to 
                        public or private nonprofit 
                        organizations to pay for the Federal 
                        share described in section 121(e) of--
                                  [(I) providing information 
                                about the programs specified in 
                                section 193A(d)(10) to such 
                                individuals with a disability 
                                who desire to perform national 
                                service; and
                                  [(II) enabling the 
                                individuals to participate in 
                                activities carried out through 
                                such programs, which may 
                                include assisting the placement 
                                of the individuals in approved 
                                national service positions.
                          [(ii) Application.--To be eligible to 
                        receive a grant under this 
                        subparagraph, an organization described 
                        in clause (i) shall submit an 
                        application to the Chief Executive 
                        Officer at such time, in such manner, 
                        and containing such information as the 
                        Chief Executive Officer may require.
  [(e) Application Required.--The allotment of assistance and 
approved national service positions to a State or Indian tribe 
under subsection (a), and the competitive distribution of 
assistance under subsection (d), shall be made by the 
Corporation only pursuant to an application submitted by a 
State or other applicant under section 130 and approved by the 
Corporation under section 133.
  [(f) 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.
  [(g) 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 these approved 
        national service positions shall be made pursuant to 
        the agreement, and the creation of these 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) and any 
        other funds contributed to the Corporation to support 
        the activities of the Corporation under the national 
        service laws shall be deposited in the National Service 
        Trust established in section 145 until such time as the 
        funds are needed.]

SEC. 129. PROVISION OF ASSISTANCE AND APPROVED NATIONAL SERVICE 
                    POSITIONS.

  (a) 1-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 amount allotted as 
a grant to each such territory under this subsection for a 
fiscal year shall be equal to the 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 such territories.
  (b) 1-Percent 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 in accordance with 
their respective needs.
  (c) Up to 20 Percent Allotment for National Grants.--Of the 
funds allocated by the Corporation for provision of assistance 
under section 121(a) for a fiscal year, the Corporation shall 
reserve up to 20 percent for grants to nonprofit organizations 
to operate a program in 2 or more States.
  (d) At Least 35 Percent Allotment for State Competitive 
Grants.--Of the funds allocated by the Corporation for 
provision of assistance under subsection (a) of section 121 for 
a fiscal year, the Corporation shall reserve at least 35 
percent for innovative grants to States on a competitive basis.
  (e) 45 percent to Certain States on Formula Basis.--
          (1) Grants.--Of the funds allocated by the 
        Corporation for provision of assistance under 
        subsection (a) of section 121 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 amount allotted as a grant to 
        each such State under this subsection for a fiscal year 
        shall be equal to the amount that bears the same ratio 
        to 45 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 must be at least $500,000.
  (f) Adjustments.--
          (1) Reservation of funds.--Notwithstanding 
        subsections (c) through (e), except as provided in 
        paragraph (3), the Corporation shall ensure that it 
        reserves funds for competitive grants to States in an 
        aggregate amount equal to the aggregate amount of 
        competitive grant funds provided to all States with 
        fiscal year 2002 funds.
          (2) Reduction from formula grants.--In order to meet 
        the requirements of paragraph (1) during a fiscal year 
        in which the percentage allotment for State competitive 
        grants under subsection (d) is less than the aggregate 
        amount of competitive grants funds provided to all 
        States with fiscal year 2002 funds, the Corporation 
        shall reduce the amount available for State formula 
        grants under subsection (e).
          (3) Proportionate reductions.--In any fiscal year in 
        which the aggregate amount allocated under subsections 
        (a) through (e) is less than the aggregate amount 
        allocated for such purposes with fiscal year 2002 
        funds, the Corporation shall reduce the amounts 
        allocated under each subsection in a manner that 
        corresponds to the respective proportions of 
        allocations of fiscal year 2002 funds.
  (g) 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, 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 eligible entities under section 121 that propose 
        to carry out national service programs in the State or 
        territory; and
          (2) make a reallotment to other States and 
        territories with approved applications submitted under 
        section 130.
  (h) Application Required.--The allotment of assistance and 
approved national service positions to a recipient under this 
section shall be made by the Corporation only pursuant to an 
application submitted by a State or other applicant under 
section 130.
  (i) 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.
  (j) 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 these approved 
        national service positions shall be made pursuant to 
        the agreement, and the creation of these positions 
        shall not be takeninto 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.
  (k) Reservation of Funds for Special Assistance.--From 
amounts appropriated for a fiscal year pursuant to the 
authorization of appropriations in section 501(a)(2) 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 sections 125 and 126.
  (l) Reservation of Funds To Increase the Participation of 
Individuals With Disabilities.--From amounts appropriated for a 
fiscal year pursuant to the authorization of appropriations in 
section 501(a)(2) and subject to the limitation in such 
section, the Chief Executive Officer shall reserve an amount 
that is not less than 1 percent of such amount (except that the 
amount reserved may not exceed $10,000,000), in order 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.

SEC. 129A. PILOT AUTHORITY FOR MEMBER-BASED NATIONAL SERVICE POSITIONS.

  (a) Authority.--The Corporation may, on a pilot basis, 
reserve up to 5 percent of the funds allocated by the 
Corporation for provision of assistance under subsection (a) of 
section 121 for a fiscal year to test new approaches to 
increasing and diversifying opportunities to serve in approved 
national service positions in communities throughout the United 
States, including allowing individuals to serve in such 
positions other than through program operational grants under 
this subtitle.
  (b) Competitive Selection of Eligible Entities.--The 
Corporation may, each fiscal year, after making selections on a 
competitive basis, provide funds authorized under subsection 
(a) to not more than 15 State commissions on national and 
community service and other entities eligible for assistance 
under subsection (a) of section 121.
  (c) Requirements.--To receive a grant under this section, an 
eligible entity must demonstrate that it--
          (1) satisfies qualification criteria established by 
        the Corporation, including standards relating to 
        organizational capacity, financial management, and 
        programmatic oversight, that are designed to ensure 
        that Federal funds are managed in accordance with all 
        applicable requirements, and that service activities 
        subject to its oversight comply with all applicable 
        restrictions;
          (2) is meeting accountability requirements under 
        section 186;
          (3) has mechanisms to ensure compliance with sections 
        132, 174, and 175;
          (4) will approve sites for placement of participants 
        in a manner that achieves the purposes of this section;
          (5) will oversee no more than 5 participants at each 
        site; and
          (6) will comply with matching funds requirements set 
        by the Corporation, unless the Corporation determines 
        that the reasonable and necessary costs of carrying out 
        the approved activity significantly exceed the amount 
        of assistance provided by the Corporation.
  (d) Duration.--An agreement to support activities under this 
section shall be for a period not to exceed 3 years.
  (e) Accountability.--
          (1) The Corporation shall consult with its Inspector 
        General, State commissions on national and community 
        service, and national and State accrediting agencies in 
        developing methods of ensuring and improving 
        accountability in the pilot initiatives under this 
        section, including the areas of financial management 
        and participant management.
          (2) If an eligible entity fails to comply with 
        accountability measures applicable to this section, it 
        shall be ineligible to receive a grant under this 
        section for at least 5 years.
  (f) Reports to Congress.--The Corporation shall report to 
Congress, on an annual basis, on activities undertaken, and 
outcomes achieved, under this pilot authority.

SEC. 129B. EDUCATION AWARDS 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 provide operational assistance to programs that 
receive approved national service positions but do not receive 
funds under section 121(a).
  (b) Limit on Corporation Grant Funds.--Operational support 
under this section may not exceed $600 per individual enrolled 
in an approved national service position.
  (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 sections 
        121(e) and 140.
          (3) The living allowance and other benefits under 
        sections 131(e) and section 140 (other than 
        individualized support services for disabled members 
        under section 140(f)).

SEC. 129C. FIXED AMOUNT GRANTS.

  (a) General.--Subject to the limitations in this section, the 
Corporation may, upon making a determination described in 
subsection (b), approve a fixed amount grant that is not 
subject to the Office of Management and Budget cost principles 
and related financial recordkeeping requirements.
  (b) Determination.--Before approving a fixed amount grant, 
the Corporation must determine that--
          (1) the reasonable and necessary costs of carrying 
        out the terms of the grant significantly exceed the 
        amount of assistance provided by the Corporation; or
          (2) based on the nature or design of the grant, any 
        assistance provided by the Corporation can be 
        reasonably presumed to be expended on reasonable and 
        necessary costs.
  (c) Fixed Amount Grant Election by Formula Recipients.--A 
recipient of a grant under subsection (a) or (e) of section 129 
may, after making the determination described in subsection 
(b), elect to make subgrants as fixed amount grants.
  (d) Fixed Amount Grant Designation for Competitive 
Recipients.--The Chief Executive Officer may, after making the 
determination described in subsection (b), make competitive 
grants under section 129 as fixed amount grants.

SEC. 130. APPLICATION FOR ASSISTANCE AND APPROVED NATIONAL SERVICE 
                    POSITIONS.

  (a) Time, Manner, and Content of Application.--To be eligible 
to receive assistance under section 121 or approved national 
service positions for participants who serve in the national 
service programs [to be carried out using the assistance, a 
State, subdivision of a State, Indian tribe, public or private 
nonprofit organization, institution of higher education, or 
Federal agency], an applicant 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.

           *       *       *       *       *       *       *

  (c) Required Application Information.--An application 
submitted under subsection (a) shall contain the following 
information:
          (1) A description of the [jobs or] positions into 
        which participants will be placed using the assistance 
        provided under section 121, including descriptions of 
        specific tasks to be performed by such participants.

           *       *       *       *       *       *       *

  (e) Special Rule for State Applicants.--
          (1) * * *
          [(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 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)] (2) 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 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.
  (f) Special Rule for Certain Applicants.--
          (1) Written concurrence.--In the case of [a program 
        applicant] 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) [Program applicant] Applicant defined.--For 
        purposes of this subsection, the term ``[program 
        applicant] applicant'' means--
                  (A) a State, subdivision of a State, Indian 
                tribe, public or private nonprofit 
                organization, [institution of higher education, 
                or Federal agency] 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, 
                Indian tribe, public or private nonprofit 
                organization, [institution of higher education, 
                or Federal agency] or institution of higher 
                education under section 121.
  (g) Limitation on Same Project in Multiple Applications.--The 
Corporation shall reject an application submitted under this 
section if a project proposed to be conducted using assistance 
requested by the applicant is already described in another 
application pending before the Corporation[.] or is already 
receiving financial assistance from the Corporation.

           *       *       *       *       *       *       *

SEC. 133. CONSIDERATION OF APPLICATIONS.

  (a) * * *
  (b) Application to Subgrants.--
          (1) * * *
          (2) Contents.--The application of the State or other 
        entity under section 130 shall contain--
                  (A) * * *
                  (B) a description of the [jobs or] positions 
                into which participants will be placed using 
                such assistance, including descriptions of 
                specific tasks to be performed by such 
                participants; and

           *       *       *       *       *       *       *

  (c) Assistance Criteria.--The criteria required to be applied 
in evaluating applications submitted under section 130 are as 
follows:
          (1) * * *

           *       *       *       *       *       *       *

          (8) If applicable, as determined by the Corporation, 
        the extent to which the program generates the 
        involvement of volunteers.
          [(8)] (9) Such other criteria as the Corporation 
        considers to be appropriate.
  (d) Other Considerations.--
          (1) * * *
          (2) Priorities.--The Corporation may designate, under 
        such criteria as may be established by the Corporation, 
        certain national service programs or types ofnational 
service programs described in section 122(a) for priority consideration 
in the competitive distribution of funds under section 129(d)(2). In 
designating national service programs to receive priority, the 
Corporation may include--
                  [(A) national service programs carried out by 
                another Federal agency;]
                  [(B)] (A) national service programs that 
                conform to the national service priorities in 
                effect under section 122(c);
                  [(C)] (B) innovative national service 
                programs;
                  [(D)] (C) national service programs that are 
                well established in one or more States at the 
                time of the application and are proposed to be 
                expanded to additional States using assistance 
                provided under section 121;
                  [(E)] (D) grant programs in support of other 
                national service programs if the grant programs 
                are to be conducted by nonprofit organizations 
                with a demonstrated and extensive expertise in 
                the provision of services to meet human, 
                educational, environmental, or public safety 
                needs; and
                  [(F)] (E) professional corps programs 
                described in section 122(a)(8)[; and].
                  [(G) programs that--
                          [(i) received funding under subtitle 
                        D of this Act, as in effect on the day 
                        before the date of enactment of this 
                        subtitle;
                          [(ii) the Corporation determines to 
                        meet the requirements of sections 142 
                        (other than subsection (g)), 143, and 
                        148 through 150 of this Act, as in 
                        effect on such day, in addition to the 
                        requirements of this subtitle; and
                          [(iii) include an evaluation 
                        component.]

           *       *       *       *       *       *       *

          [(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.]

           *       *       *       *       *       *       *

PART III--NATIONAL SERVICE PARTICIPANTS

           *       *       *       *       *       *       *

SEC. 137. 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) * * *

           *       *       *       *       *       *       *

          [(3) will serve in the program for a term of service 
        specified in section 139 to be performed before, 
        during, or after attendance at an institution of higher 
        education;]
          [(4)] (3) is 17 years of age or older at the time the 
        individual begins the term of service;
          [(5)] (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
          [(6)] (5) is a citizen or national of the United 
        States or lawful permanent resident alien of the United 
        States.
  (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)(2) or a program described 
in section 122(a)(9) that is carried out with assistance 
provided under section 121(a) if the individual--
          (1) satisfies the requirements specified in 
        subsection (a), except paragraph [(4)] (3) of such 
        subsection; and
          (2) is [between the ages of 16 and 25] a 16-year-old 
        out of school youth or an individual between the ages 
        of 17 and 25, inclusive, at the time the individual 
        begins the term of service.
  [(c) Waiver.--The Corporation may waive the requirements of 
subsection (a)(5) 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.]
  (c) Self-Certification and Waiver.--The Corporation may--
          (1) consider an individual as having satisfied the 
        requirement of subsection (a)(4) if the individual 
        informs the Corporation that such requirement has been 
        satisfied; or
          (2) 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. SELECTION OF NATIONAL SERVICE PARTICIPANTS.

  (a) Selection Process.--Subject to subsections (b) and (c) 
and section 131(f), 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 State, subdivision 
of a State, Indian tribe, public or private nonprofit 
organization, institution of higher education, [Federal 
agency,] or other entity to which the assistance and approved 
national service positions are provided.

           *       *       *       *       *       *       *

SEC. 139. TERMS OF SERVICE.

  (a) * * *
  (b) Term of Service.--
          (1) Full-time service.--An individual performing 
        full-time 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 less than 9 months and] 
        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--
                  [(A) not more than 2 years; or
                  [(B) not more than 3 years if the individual 
                is enrolled in an institute of higher education 
                while preforming all or a portion of the 
                service.] during a period of not more than 2 
                years.
  (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 
                demonstrated by the participant] as determined 
                by the organization responsible for granting a 
                release, if the participant has otherwise 
                performed satisfactorily and has completed at 
                least 15 percent of the original term of 
                service; or

           *       *       *       *       *       *       *

          (2) Effect of release for compelling circumstances.--
        If a participant eligible for release under paragraph 
        (1)(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 [provide to the 
                participant that portion of the national 
                service educational award] 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 allow return to the program 
                with which the individual was serving in order] 
                to complete the remainder of the term of 
                service and obtain the entire national service 
                educational award.

           *       *       *       *       *       *       *

SEC. 140. LIVING ALLOWANCES FOR NATIONAL SERVICE PARTICIPANTS.

  (a) Provision of Living Allowance.--
          (1) Living allowance required.--Subject to [paragraph 
        (3)] paragraphs (3) and (4), 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 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).

           *       *       *       *       *       *       *

          (4) Adjustment for federal work-study students.--The 
        living allowance that may be provided to an individual 
        whose term of service includes hours for which the 
        individual receives Federal work study wages shall be 
        reduced by the amount of the individual's Federal work 
        study award.
          [(4)] (5) 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 reduced term of service under 
        section 139(b)(3)] a term of service that is less than 
        12 months.
          [(5)] (6) 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) * * *

           *       *       *       *       *       *       *

          [(6)] (7) 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.
          (8) Other federal funds.--
                  (A) Recipient report.--A recipient of 
                assistance under section 121 that is subject to 
                the limitation on the Federal share of the 
                annual living allowance in paragraph (2) shall 
                report to the Corporation the amount and source 
                of any Federal funds other than those provided 
                by the Corporation used to pay the annual 
                living allowance under paragraph (1).
                  (B) Corporation report.--The Corporation 
                shall report to the Congress on an annual basis 
                information regarding each recipient that uses 
                Federal funds other than those provided by the 
                Corporation to pay the annual living allowance 
                under paragraphs (1) and (2), including amounts 
                and sources of other Federal funds.

           *       *       *       *       *       *       *

  [(h) Limitation on Number of Terms of Service for Federally 
Subsidized Living Allowance.--No national service program may 
use assistance provided under section 121, or any other Federal 
funds, to provide a living allowance under subsection (a), a 
health care policy under subsection (d), or child care or a 
child care allowance under subsection (e), to an individual for 
a third, or subsequent, term of service described in section 
139(b) by the individual in a national service program carried 
out under this subtitle.]

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

SEC. 145. 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 pursuant 
        to section 501(a)(2), such amounts as the Corporation 
        may designate to be available for the payment of--
                  (A) national service educational awards; 
                [and]

           *       *       *       *       *       *       *

                  (C) service-based scholarships for high 
                school students; and
                  (D) senior service scholarships under 
                subtitle J.
          (2) any amounts received by the Corporation as gifts, 
        bequests, devises, or otherwise [pursuant to section 
        196(a)(2)] pursuant to section 196(a)(2), if the terms 
        of such donations direct that they be deposited in the 
        National Service Trust; and

           *       *       *       *       *       *       *

  (c) Expenditures From Trust.--Amounts in the Trust shall be 
available, to the extent provided for in advance by 
appropriation, [for payments of national service educational 
awards in accordance with section 148.] for--
          (1) payments of national service educational awards 
        in accordance with section 148;
          (2) payments of interest in accordance with section 
        148(e);
          (3) the Federal share of service-based scholarships 
        to high school students in accordance with section 149; 
        and
          (4) senior service scholarships in accordance with 
        subtitle J.
  (d) Reports to Congress on Receipts and Expenditures.--Not 
later than March 1 of each year, the Corporation shall submit a 
report to the Congress on the financial status of the Trust 
during the preceding fiscal year. Such report shall--
          (1) * * *

           *       *       *       *       *       *       *

          (3) identify the number of individuals whose 
        expectation to receive national service educational 
        awards during the period covered by the report--
                  (A) * * *
                  (B) has lapsed pursuant to section 146(d); 
                [and]
          (4) estimate the number of additional approved 
        national service positions that the Corporation will be 
        able to make available under subtitle C on the basis of 
        any accumulated surplus in the Trust above the amount 
        required to provide national service educational awards 
        to individuals identified under paragraph (2), 
        including any amounts available as a result of the 
        circumstances referred to in paragraph (3)[.]; and
          (5) identify the number of students who have received 
        service-based scholarships and specify the amount of 
        Federal and matching funds expended on an annual basis 
        on service-based scholarships to high school students; 
        and
          (6) identify the number of individuals who are 
        currently performing service, or have performed 
        service, under the senior service scholarship program 
        pursuant to subtitle J.

SEC. 146. INDIVIDUALS ELIGIBLE TO RECEIVE A NATIONAL SERVICE 
                    EDUCATIONAL AWARD FROM THE TRUST.

  (a) Eligible Individuals.--An individual shall receive a 
national service educational award from the National Service 
Trust [if the individual] if the organization responsible for 
an individual's supervision certifies that the individual--
          [(1) successfully completes the required term of 
        service described in subsection (b) in an approved 
        national service position;
          [(2) was 17 years of age or older at the time the 
        individual began serving in the approved national 
        service position or was an out-of-school youth serving 
        in an approved national service position with a youth 
        corps program described in section 122(a)(2) or a 
        program described in section 122(a)(9);
          [(3) at the time the individual uses the national 
        service educational award--
                  [(A) has received a high school diploma, or 
                the equivalent of such diploma;
                  [(B) is 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 meets the 
                requirements of subsection (a) of such section; 
                or
                  [(C) has received a waiver described in 
                section 137(c); and]
          (1) met the applicable eligibility requirements for 
        the position; and
          (2)(A) successfully completed the required term of 
        service described in subsection (b) in an approved 
        national service position; or
          (B)(i) satisfactorily performed prior to being 
        granted a release for compelling personal circumstances 
        under section 139(c); and
          (ii) served at least 15 percent of the required term 
        of service described in subsection (b); and
          [(4)] (3) is a citizen or national of the United 
        States or lawful permanent resident alien of the United 
        States.

           *       *       *       *       *       *       *

  [(c) Limitation on Number of Terms of Service for Awards.--
Although an individual may serve more than 2 terms of service 
described in subsection (b) in an approved national service 
position, the individual shall receive a national service 
educational award from the National Service Trust only on the 
basis of the first and second of such terms of service.]
  (c) Limitation on Receipt of Educational Awards.--An 
individual may receive no more than an amount equal to the 
aggregate value of 2 national service educational awards for 
full-time service.

           *       *       *       *       *       *       *

SEC. 147. DETERMINATION OF THE AMOUNT OF THE NATIONAL SERVICE 
                    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[, 
for each of not more than 2 of such terms of service, equal to 
90 percent of--
          [(1) one-half of an amount equal to the aggregate 
        basic educational assistance allowance provided in 
        section 3015(b)(1) of title 38, United States Code (as 
        in effect on July 28, 1993), for the period referred to 
        in section 3013(a)(1) of such title (as in effect on 
        July 28, 1993), for a member of the Armed Forces who is 
        entitled to such an allowance under section 3011 of 
        such title and whose initial obligated period of active 
        duty is 2 years; less
          [(2) one-half of the aggregate basic contribution 
        required to be made by the member in section 3011(b) of 
        such title (as in effect on July 28, 1993).] of $5,250.

           *       *       *       *       *       *       *

SEC. 148. DISBURSEMENT OF NATIONAL SERVICE EDUCATIONAL AWARDS.

  (a) In General.--Amounts in the Trust shall be available--
          (1) * * *
          (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); [and]
          (4) to pay expenses incurred in enrolling in an 
        educational institution or training establishment that 
        meets the requirements of chapter 36 of title 38, 
        United States Code (38 U.S.C. 3451 et seq.); and
          [(4)] (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) * * *

           *       *       *       *       *       *       *

          (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)]; and
                  (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;
                          (iii) a State agency; or
                          (iv) a lender otherwise determined by 
                        the Corporation to be eligible to 
                        receive disbursements from the National 
                        Service Trust.

           *       *       *       *       *       *       *

  (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)(6)] (b)(7)), if the eligible 
individual successfully completes the individual's required 
term of service (as determined under section 146(b)). Such 
regulations shall be prescribed after consultation with the 
Secretary of Education.
  (f) Exception.--With the approval of the [Director] 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 in 
order to receive an alternative post-service benefit funded by 
the program entirely with non-Federal funds.

           *       *       *       *       *       *       *

SEC. 149. USE BY PARTICIPANTS WITH DISABILITIES.

  Notwithstanding any other provision of this subtitle, the 
National Service Trust may disburse some or all of a national 
service educational award directly to an individual who 
provides a certification that--
          (1) the individual is--
                  (A) entitled to disability insurance benefits 
                under section 223 of the Social Security Act 
                (42 U.S.C. 423);
                  (B) entitled to monthly insurance benefits 
                under section 202 of the Social Security Act 
                (42 U.S.C. 202) based on such individual's 
                disability (as defined in section 223(d) of 
                such Act); or
                  (C) eligible for supplemental security income 
                benefits under subchapter XVI of the Social 
                Security Act (42 U.S.C. 1381 et seq.) on the 
                basis of blindness (within the meaning of 
                section 1614(a)(2) of such Act) or disability 
                (within the meaning of section 1614(a)(3) of 
                such Act); and
          (2) the individual will use the disbursed funds to 
        pay for education, training, or work-related activities 
        designed to make the individual self-supporting.

SEC. 149A. SERVICE-BASED SCHOLARSHIPS TO HIGH SCHOOL STUDENTS.

  (a) Program Authorized.--The Corporation may use amounts in 
the National Service Trust to support a service-based 
scholarship program to recognize high school juniors and 
seniors who are engaged in outstanding community service and 
scholarship.
  (b) Approved Use of Scholarships.--The Corporation may use 
amounts in the Trust to supplement locally funded scholarships 
to help cover an individual's postsecondary education or job 
training costs.
  (c) Corporation Share.--The Corporation's share of an 
individual's scholarship under the program may not exceed $500.
  (d) Local Share.--The local share of an individual's 
scholarship under the program must be equal to or greater than 
the Corporation's share.

                  Subtitle E--Civilian Community Corps

[SEC. 151. PURPOSE.

  [It is the purpose of this subtitle to authorize the 
establishment of a Civilian Community Corps to provide a basis 
for determining--
          [(1) whether residential service programs 
        administered by the Federal Government can 
        significantly increase the support for national service 
        and community service by the people of the United 
        States;
          [(2) whether such programs can expand the 
        opportunities for willing young men and women to 
        perform meaningful, direct, and consequential acts of 
        community service in a manner that will enhance their 
        own skills while contributing to their understanding of 
        civic responsibility in the United States;
          [(3) whether retired members and former members of 
        the Armed Forces of the United States, members and 
        former members of the Armed Forces discharged or 
        released from active duty in connection with reduced 
        Department of Defense spending, members and former 
        members of the Armed Forces discharged or transferred 
        from the Selected Reserve of the Ready Reserve in 
        connection with reduced Department of Defense spending, 
        and other members of the Armed Forces not on active 
        duty and not actively participating in a reserve 
        component of the Armed Forces can provide guidance and 
        training under such programs that contribute 
        meaningfully to the encouragement of national and 
        community service; and
          [(4) whether domestic national service programs can 
        serve as a substitute for the traditional option of 
        military service in the Armed Forces of the United 
        States which, in times of reductions in the size of the 
        Armed Forces, is a diminishing national service 
        opportunity for young Americans.]

SEC. 151. 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. Such needs to 
be met under such programs include those related to natural and 
other disasters, which shall be addressed in coordination with 
the Federal Emergency Management Agency and other public and 
private organizations.

SEC. 152. ESTABLISHMENT OF [CIVILIAN COMMUNITY CORPS DEMONSTRATION] 
                    NATIONAL CIVILIAN COMMUNITY CORPS PROGRAM.

  (a) In General.--The Corporation may establish the [Civilian 
Community Corps Demonstration] National Civilian Community 
Corps Program to carry out the purpose of this subtitle.
  (b) Program Components.--Under the [Civilian Community Corps 
Demonstration] National Civilian Community Corps Program 
authorized by subsection (a), the members of a [Civilian 
Community Corps] 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.
          (2) A summer national service program.
  (c) Residential [Programs] Components.--Both [program 
components are residential programs. The members of the Corps 
in each program shall reside with other members of the Corps in 
Corps housing during the periods of the members' agreed 
service.] programs referred to in subsection (b) may include a 
residential component.

SEC. 153. NATIONAL SERVICE PROGRAM.

  (a) In General.--Under the national service program component 
of the [Civilian Community Corps Demonstration] National 
Civilian Community Corps Program authorized by section 152(a), 
eligible young people shall work in teams on [Civilian 
Community Corps] 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 at least 16 and not more than 24 years of 
        age; and
          [(2) is a high school graduate or has not received a 
        high school diploma or its equivalent.] if the person 
        will be at least 18 years of age by December 31 in the 
        calendar year in which the individual enrolls in the 
        program.
  (c) Diverse [Backrounds] Backgrounds of Participants.--In 
selecting persons for the national service program, the 
Director shall endeavor to ensure that participants are from 
economically, geographically, and ethnically diverse 
backgrounds.

           *       *       *       *       *       *       *

  [(e) 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. SUMMER NATIONAL SERVICE PROGRAM.

  (a) In General.--Under the summer national service program of 
the [Civilian Community Corps Demonstration] 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 [Civilian Community Corps] 
National Civilian Community Corps projects.

           *       *       *       *       *       *       *

  (d) Alternative Benefit.--The Director may provide a 
scholarship for post-secondary education not to exceed $1,000 
and consistent with section 148(c) to participants under this 
section who do not meet the minimum age requirements for a 
national service educational award under section 146.

SEC. 155. [CIVILIAN COMMUNITY CORPS] NATIONAL CIVILIAN COMMUNITY CORPS.

  (a) Director.--Upon the establishment of the [Civilian 
Community Corps Demonstration] National Civilian Community 
Corps Program, the [Civilian Community Corps] National Civilian 
Community Corps shall be under the direction of the Director 
appointed pursuant to section 159(c)(1).
  (b) Membership in Civilian Community Corps.--
          (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 [Civilian Community 
        Corps] National Civilian Community 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 [superintendent] director of the 
        appropriate [camp] campus, to determine whether 
        selection of the applicant for membership in the Corps 
        is appropriate.
          (4) Team leaders.--The Director may select from Corps 
        members 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. Team leaders shall--
                  (A) be selected without regard to the age 
                limitation under section 153(b);
                  (B) be members of the National Civilian 
                Community Corps; and
                  (C) be provided the rights and benefits 
                applicable to Corps members, except that the 
                limitation on the amount ofliving allowance 
shall not exceed 10 percent more than the amount established under 
section 158(b).

           *       *       *       *       *       *       *

  (d) Camps.--
          (1) Units to be assigned to [camps] campuses.--The 
        units of the Corps shall be grouped together as 
        appropriate in [camps] campuses for operational, 
        support, and boarding purposes. The Corps [camp] 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 [camps] campuses.
          (2) Camp [superintendent] director.--There shall be a 
        [superintendent] director for each [camp] campus. The 
        [superintendent] director is the head of the [camp] 
        campus.
          (3) Eligible site for [camp] campus.--A [camp] campus 
        may be located in a facility referred to in section 
        162(a)(3).
  (e) Distribution of Units and Camps.--The Director shall 
ensure that the Corps units and [camps] campuses are 
distributed in urban areas and rural areas in various regions 
throughout the United States.
  (f) Standards of Conduct.--
          (1) In general.--The [superintendent] director of 
        each [camp] campus shall establish and enforce 
        standards of conduct to promote proper moral and 
        disciplinary conditions in the [camp] campus.
          (2) Sanctions.--Under procedures prescribed by the 
        Director, the [superintendent] director of a [camp] 
        campus may--
                  (A) transfer a member of the Corps in that 
                [camp] campus to another unit or [camp] campus 
                if the [superintendent] director determines 
                that the retention of the member in the 
                member's unit or in the superintendent's [camp] 
                campus will jeopardize the enforcement of the 
                standards or diminish the opportunities of 
                other Corps members in that unit or [camp] 
                campus, as the case may be; or
                  (B) dismiss a member of the Corps from the 
                Corps if the [superintendent] 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 [camp superintendent] 
        campus director to transfer or dismiss the member. The 
        Director shall provide for expeditious disposition of 
        appeals under this paragraph.

SEC. 156. TRAINING.

  (a) Common Curriculum.--Each member of the [Civilian 
Community Corps] 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.

           *       *       *       *       *       *       *

SEC. 157. SERVICE PROJECTS.

  (a) Project Requirements.--The service projects carried out 
by the [Civilian Community Corps] National Civilian Community 
Corps shall--
          (1) * * *

           *       *       *       *       *       *       *

  (b) Project Proposals.--
          (1) Development of proposals.--
                  (A) * * *
                  (B) Other sources.--Other public and private 
                organizations and agencies, including 
                community-based organizations and 
                representatives of local communities in the 
                vicinity of a Corps [camp] campus, may develop 
                proposals for projects for a Corps [camp] 
                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 [superintendent] director of a 
        Corps [camp] campus shall select the projects to be 
        performed by the members of the Corps assigned to the 
        units in that [camp] campus. The [superintendent] 
        director shall select projects from among the projects 
        proposed or identified pursuant to subsection (b).
          (2) Innovative local arrangements for project 
        performance.--The Director shall encourage [camp] 
        superintendents campus 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.
          (3) Disaster assistance.--The Director shall place 
        appropriate emphasis on projects in support of disaster 
        relief efforts.

SEC. 158. AUTHORIZED BENEFITS FOR CORPS MEMBERS.

  (a) In General.--The Director shall provide for members of 
the [Civilian Community Corps] National Civilian Community 
Corps to receive benefits authorized by this section.

           *       *       *       *       *       *       *

  (c) Other Authorized Benefits.--While receiving training or 
engaging in service projects as members of the [Civilian 
Community Corps] National Civilian Community Corps, members may 
be provided the following benefits:
          (1) * * *

           *       *       *       *       *       *       *

SEC. 159. ADMINISTRATIVE PROVISIONS.

  (a) Supervision.--The Chief Executive Officer shall monitor 
and supervise the administration of the [Civilian Community 
Corps Demonstration] 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, recommended by the 
        Board, for the design, selection of members, and 
        operation of the [Civilian Community Corps] National 
        Civilian Community Corps as the Chief Executive Officer 
        considers appropriate;

           *       *       *       *       *       *       *

  (b) Monitoring and Coordination.--The Chief Executive Officer 
shall--
          (1) monitor the overall operation of the [Civilian 
        Community Corps] National Civilian Community Corps;

           *       *       *       *       *       *       *

  (c) Staff.--
          (1) Director.--
                  (A) * * *
                  (B) Duties.--The Director shall--
                          (i) design, develop, and administer 
                        the [Civilian Community Corps] National 
                        Civilian Community Corps programs;

           *       *       *       *       *       *       *

          (2) Permanent cadre.--
                  (A) Establishment.--[The Director shall 
                establish a permanent cadre of] The Chief 
                Executive Officer shall establish a permanent 
                cadre that includes the Director and other 
                appointed supervisors and training instructors 
                for [Civilian Community Corps] National 
                Civilian Community Corps programs.
                  (B) Appointment.--[The Director shall appoint 
                the members] The Chief Executive Officer shall 
                consider the recommendations of the Director in 
                appointing the other members of the permanent 
                cadre.
                  (C) Employment considerations.--In appointing 
                individuals to cadre positions, [the Director] 
                the Chief Executive Officer shall--
                          (i) * * *

           *       *       *       *       *       *       *

          (3) Inapplicability of certain civil service laws.--
        The Director, [the] 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 section 
        162(a)(2)(A) 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.

           *       *       *       *       *       *       *

SEC. 160. STATUS OF CORPS MEMBERS AND CORPS PERSONNEL UNDER FEDERAL 
                    LAW.

  (a) In General.--Except as otherwise provided in this 
section, members of the [Civilian Community Corps] 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.

           *       *       *       *       *       *       *

SEC. 161. CONTRACT AND GRANT AUTHORITY.

  (a) Programs.--The Director may, by contract or grant, 
provide for any public or private organization to [perform any 
program function under this subtitle] carry out the National 
Civilian Community Corps program.
  (b) Equipment and Facilities.--
          (1) * * *
          (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 [Civilian Community Corps] 
        National Civilian Community Corps and leaders of Corps 
        units.

SEC. 162. RESPONSIBILITIES OF OTHER DEPARTMENTS.

  (a) Secretary of Defense.--
          (1) Liaison office.--
                  (A) Establishment.--Upon the establishment of 
                the Program, the Secretary of Defense shall 
                establish an office to provide for liaison 
                between the Secretary and the [Civilian 
                Community Corps] National Civilian Community 
                Corps.

           *       *       *       *       *       *       *

          (2) Corps cadre.--
                  (A) List of recommended personnel.--Upon the 
                establishment of the Program, the Secretary of 
                Defense, in consultation with the liaison 
                office established under paragraph (1) shall 
                develop a list of individuals [to be 
                recommended for appointment] 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.

           *       *       *       *       *       *       *

          (3) 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 [Civilian Community Corps] National 
        Civilian Community Corps for training or housing Corps 
        members. The Secretary of Defense shall carry out this 
        paragraph in consultation with the liaison office 
        established under paragraph (1).

           *       *       *       *       *       *       *

  (b) Secretary of Labor.--Upon the establishment of the 
Program, the Secretary of Labor shall identify and assist in 
establishing a system for the recruitment of persons to serve 
as members of the [Civilian Community Corps] National Civilian 
Community Corps. In carrying out this subsection, the Secretary 
of Labor may utilize the Employment Service Agency or the 
Office of Job Training.

[SEC. 163. ADVISORY BOARD.

  [(a) Establishment and Purpose.--Upon the establishment of 
the Program, there shall also be established a Civilian 
Community Corps Advisory Board to advise the Director 
concerning the administration of this subtitle and to assist in 
the development and administration of the Corps.
  [(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) Individuals appointed by the Director from among 
        persons who are broadly representative of educational 
        institutions, voluntary organizations, industry, youth, 
        and labor unions.
          [(9) 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. ANNUAL EVALUATION.

  Pursuant to the provisions for evaluations conducted under 
section 179, and in particular subsection (g) of such section, 
the Corporation shall conduct an annual evaluation of the 
[Civilian Community Corps] National Civilian Community Corps 
programs authorized under this subtitle.

[SEC. 165. FUNDING LIMITATION.

  [The Corporation, in consultation with the Director, shall 
ensure that no amounts appropriated under section 501 are 
utilized to carry out this subtitle.]

SEC. 166. 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).
          [(2)] (3) Corps.--The terms ``[Civilian Community 
        Corps] National Civilian Community Corps'' and 
        ``Corps'' mean the [Civilian Community Corps] National 
        Civilian CommunityCorps required under section 155 as 
part of the [Civilian Community Corps Demonstration] National Civilian 
Community Corps Program.
          [(3)] (4) Corps [camp] campus.--The term ``Corps 
        [camp] campus'' means the facility or central location 
        established as the operational headquarters and 
        boarding place for particular Corps units.
          [(4)] (5) Corps members.--The term ``Corps members'' 
        means persons receiving training and participating in 
        projects under the [Civilian Community Corps 
        Demonstration] National Civilian Community Corps 
        Program.
          [(5)] (6) Director.--The term ``Director'' means the 
        Director of the [Civilian Community Corps] National 
        Civilian Community Corps.
          [(6)] (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.
          [(7)] (8) Program.--The terms ``[Civilian Community 
        Corps Demonstration] National Civilian Community Corps 
        Program'' and ``Program'' mean the [Civilian Community 
        Corps Demonstration] National Civilian Community Corps 
        Program established pursuant to section 152.
          [(8)] (9) Service learning.--The term ``service 
        learning'', with respect to Corps members, means a 
        method--
                  (A) * * *

           *       *       *       *       *       *       *

          [(9) Superintendent.--The term ``superintendent'', 
        with respect to a Corps camp, means the head of the 
        camp under section 155(d).]
          (10) Unit.--The term ``unit'' means a unit of the 
        Corps referred to in section 155(c).

SEC. 167. EMERGENCY RESPONSE CORPS.

  (a) Authority To Provide Assistance.--Subject to the 
availability of appropriations under this subtitle for this 
purpose, the Corporation may make grants, and provide an 
allotment of educational awards, to State and local public 
agencies and private nonprofit organizations, including 
institutions of higher education, for the purpose of supporting 
the development and operation of emergency response corps as 
part of the National Civilian Community Corps.
  (b) Eligible Programs.--A recipient of a grant under this 
section shall conduct an emergency response corps program, 
which may include a residential program, in which individuals 
at least 18 years of age receive training and are deployed to 
respond to natural and other disasters and otherwise support 
local communities in public safety, public health, and 
emergency preparedness. Such a program may include national 
service opportunities for participants to be trainees as law 
enforcement officers, firefighters and rescue personnel, search 
and rescue personnel, emergency medical service workers, and 
disaster services workers.
  (c) Use of Funds.--
          (1) Allowable costs.--A recipient of a grant under 
        this section may use the amounts of the grant to pay 
        costs attributable to the development or operation of 
        an emergency response corps including--
                  (A) for residential programs, a living 
                allowance that does not exceed the amount that 
                is provided to National Civilian Community 
                Corps members under section 158(b);
                  (B) other member benefits and services 
                consistent with those authorized under 
                subsections (c) and (d) of section 158;
                  (C) recruitment;
                  (D) training;
                  (E) insurance; and
                  (F) management.
          (2) Administrative costs.--A recipient of a grant 
        under this section may use up to 5 percent of the 
        amount of the grant provided by the Corporation to pay 
        for the recipient's cost of administering the approved 
        program.
  (d) National Service Educational Awards.--An individual who 
successfully completes a term of service in an emergency 
response corps may receive the national service educational 
award described in subtitle D if the individual--
          (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.

                 Subtitle F--Administrative Provisions

SEC. 171. 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] with respect to a project 
        authorized under the national service laws; and
  (b) Service Sponsors.--Participants in a project authorized 
under the national service laws shall not be considered 
employees for purposes of determining whether a service sponsor 
is an employer under subsection (a)(2).
  [(b)] (c) Participants in Federal Projects.--For purposes of 
subchapter V of chapter 63 of title 5, United States Code, if--
          (1) * * *

           *       *       *       *       *       *       *

  [(c)] (d) 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. 174. PROHIBITION ON USE OF FUNDS.

  (a) * * *

           *       *       *       *       *       *       *

  (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.
  (e) Sex Education Programs.--No assistance made available 
under the national service laws shall be used--
          (1) to develop or distribute materials or operate 
        programs or courses of instruction directed at youth 
        that are designed to promote or encourage sexual 
        activity;
          (2) to distribute or aid in the distribution by any 
        organization of obscene materials to minors on school 
        grounds;
          (3) to provide in schools--
                  (A) sex education, unless such education is 
                age appropriate and includes discussion of the 
                health benefits of abstinence; and
                  (B) HIV-prevention instruction, unless such 
                instruction is age appropriate, includes 
                discussion of the health benefits of 
                abstinence, and includes discussion of the 
                health risks of the human papillomavirus (HPV), 
                consistent with the provisions of section 
                317P(c) of the Public Health Service Act (42 
                U.S.C. 247b-17(c)), or
          (4) to operate a program of contraceptive 
        distribution in schools.

           *       *       *       *       *       *       *

SEC. 176. NOTICE, HEARING, AND GRIEVANCE PROCEDURES.

  (a) In General.--
          (1) Suspension of payments.--The Corporation may in 
        accordance with the provisions of [this title] the 
        national service laws, suspend or terminate payments 
        under a contract or grant providing assistance under 
        [this title] the national service laws, 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] the national 
        service laws or the applicable terms and conditions of 
        any such grant or contract issued pursuant to [this 
        title] the national service laws.
          (2) Procedures to ensure assistance.--The Corporation 
        shall prescribe procedures to ensure that--
                  (A) assistance provided under [this title] 
                the national service laws shall not be 
                suspended for failure to comply with the 
                applicable terms and conditions of [this title] 
                the national service laws except, in emergency 
                situations, a suspension may be granted for [30 
                days] 1 or more periods of 30 days not to 
                exceed 90 days in total; and
                  (B) assistance provided under [this title] 
                the national service laws shall not be 
                terminated or revoked for failure to comply 
                with applicable terms and conditions of [this 
                title] the national service laws 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] the national service laws.

           *       *       *       *       *       *       *

  (d) State Legislation.--Nothing in [this title] the national 
service laws shall be construed to preclude the enactment of 
State legislation providing for the implementation, consistent 
with [this title] the national service laws, of the programs 
administered under [this title] the national service laws.
  (e) Construction.--Nothing in [this title] the national 
service laws 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.--[A State or local applicant] An 
        entity that receives assistance under [this title] the 
        national service laws 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] the national service 
        laws, including grievances regarding proposed 
        placements of such participants in such projects.

           *       *       *       *       *       *       *

          (5) Proposed placement.--If a grievance is filed 
        regarding a proposed placement of a participant in a 
        project that receives assistance under [this title] the 
        national service laws, 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] the national service laws;
                  (B) termination of such payments;
                  (C) prohibition of the placement described in 
                paragraph (5); [and]
                  (D) in a grievance 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.
                  [(D)] (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] the national 
                service laws--
                          (i) * * *

           *       *       *       *       *       *       *

SEC. 177. NONDUPLICATION AND NONDISPLACEMENT.

  (a) Nonduplication.--
          (1) In general.--Assistance provided [under this 
        title] under the national service laws shall be used 
        only for a program that does not duplicate, and is in 
        addition to, an activity otherwise available in the 
        locality of such program.
          (2) Private nonprofit entity.--Assistance made 
        available [under this title] 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 or position] 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 this title] under the 
        national service laws.

           *       *       *       *       *       *       *

  [(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.]
  (e) Standards of Conduct.--
          (1) In general.--Programs that receive assistance 
        under the national service laws shall establish and 
        stringently enforce standards of conduct at the program 
        site to promote proper moral and disciplinary 
        conditions, and 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, 
        consistent with State law, before transporting minor 
        children, provide the reason for and obtain written 
        permission of the children's parents.

SEC. 178. STATE COMMISSIONS ON NATIONAL AND COMMUNITY SERVICE.

  (a) * * *

           *       *       *       *       *       *       *

  (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:
                  (A) * * *

           *       *       *       *       *       *       *

                  (J) A representative of the volunteer sector.

           *       *       *       *       *       *       *

          (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[, unless the State permits the 
        representative to serve as a voting member of the State 
        Commission or alternative administrative 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 national 
                service programs within the State and other 
                interested members of the public;
                  [(B) covers a 3-year period;
                  [(C) is updated annually;
                  [(D) ensures outreach to diverse community-
                based agencies that serve underrepresented 
                populations, by--
                          [(i) using established networks, and 
                        registries, at the State level; or
                          [(ii) establishing such networks and 
                        registries; and
                  [(E) contains such information as the State 
                Commission considers to be appropriate or as 
                the Corporation may require.]
          (1) Preparation of a national service plan 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 nonprofit 
                organizations and public agencies using service 
                and volunteerism as a strategy to meet critical 
                community needs, including 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;
                  (D) includes measurable goals and outcomes;
                  (E) ensures outreach to community and 
                religious organizations, including those that 
                serve underrepresented populations;
                  (F) provides for effective coordination of 
                funding applications submitted by the State and 
                others within the State under the national 
                service laws; and
                  (G) identifies potential 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.

           *       *       *       *       *       *       *

  (f) Relief From Administrative Requirements.--Upon approval 
of a State plan submitted under subsection (e)(1), the Chief 
Executive Officer may waive, or specify alternatives to, 
administrative requirements (other than statutory provisions) 
otherwise applicable to grants made to States under the 
national service laws, including those requirements identified 
by a State as impeding the coordination and effectiveness of 
Federal, State, and local resources for service and 
volunteerism within a State.
  [(f)] (g) Activity 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.
  [(g)] (h) 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.
  [(h)] (i) Approval of State Commission or Alternative.--
          (1) * * *

           *       *       *       *       *       *       *

  [(i)] (j) 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[.], consistent with section 174(d).

           *       *       *       *       *       *       *

  [(j)] (k) Liability.--
          (1) * * *

           *       *       *       *       *       *       *

SEC. 179. EVALUATION.

  (a) In General.--The Corporation shall provide, 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--
          [(1) the effectiveness of various program models in 
        achieving stated goals and the costs associated with 
        such;
          [(2) with respect to the programs authorized under 
        subtitle C, the impact of such programs, in each State 
        in which a program is conducted, on the ability of--
                  [(A) the VISTA and National Senior Volunteer 
                Corps programs (established under the Domestic 
                Volunteer Services Act of 1973 (42 U.S.C. 4950 
                et seq.));
                  [(B) each regular component of the Armed 
                Forces (as defined in section 101(a)(4) of 
                title 10, United States Code);
                  [(C) each of the reserve components of the 
                Armed Forces (as described in section 10101 of 
                title 10, United States Code); and
                  [(D) the Peace Corps (as established by the 
                Peace Corps Act (22 U.S.C. 2501 et seq.));
        to recruit individuals residing in such State to serve 
        in such program; and
          [(3) the structure and mechanisms for delivery of 
        services for such programs.] to determine the 
        effectiveness of programs supported under the national 
        service laws in achieving stated goals and the costs 
        associated with each of such programs, while conducting 
        research on the role of service and civic engagement as 
        a means of fostering healthy civic organizations.

           *       *       *       *       *       *       *

  (g) Program Objectives.--The Corporation shall ensure that 
programs that receive assistance under subtitle C are evaluated 
to determine their effectiveness in--
          (1) * * *

           *       *       *       *       *       *       *

          (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 Volunteer Corps] 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;

           *       *       *       *       *       *       *

          (9) attracting a greater number of citizens [to 
        public service, including service in the active and 
        reserve components of the Armed Forces, the National 
        Guard, the Peace Corps (as established by the Peace 
        Corps Act (22 U.S.C. 2501 et seq.)), and the VISTA and 
        National Senior Volunteer Corps programs established 
        under the Domestic Volunteer Service Act of 1973 (42 
        U.S.C. 4950 et seq.).] to engage in service that 
        benefits the community.

           *       *       *       *       *       *       *

  (j) Reserved Program Funds for Accountability.--In addition 
to amounts appropriated to carry out this section, the 
Corporation may reserve up to 1 percent of total program funds 
appropriated in a fiscal year under the national service laws 
to support program accountability activities.

           *       *       *       *       *       *       *

SEC. 181. CONTINGENT EXTENSION.

  Section [414] 422 of the General Education Provisions Act (20 
U.S.C. 1226a) shall apply to this Act.

           *       *       *       *       *       *       *

SEC. 185. CONSOLIDATED APPLICATION AND REPORTING REQUIREMENTS.

  To promote efficiency and eliminate duplicative requirements, 
the Corporation may consolidate or modify application 
procedures and reporting requirements for programs and 
activities funded under the national service laws.

SEC. 186. ACCOUNTABILITY FOR RESULTS.

  (a) Measures.--
          (1) Establishment of measures.--The Corporation shall 
        establish, in consultation with grantees receiving 
        assistance under the national service laws, performance 
        measures for each grantee.
          (2) Content.--The measures described in paragraph (1) 
        shall include--
                  (A) the number of participants enrolled as 
                compared to the number stated in the 
                organization's approved application for 
                assistance;
                  (B) evidence of community support, such as 
                private financial contributions and volunteers 
                recruited from the community;
                  (C) progress toward program outcome measures; 
                and
                  (D) performance on other measures as 
                determined by the Corporation.
          (3) Source.--The measures described in paragraph (1) 
        may include self-reported data from grantees or 
        independent data collected by the Corporation.
  (b) Corrective Plans.--A grantee that does not achieve the 
established levels of performance on the measures, as 
determined by the Corporation, shall submit to the Corporation 
for approval a plan of correction to achieve the established 
levels of performance.
  (c) Failure To Meet Performance Levels.--If, after a period 
for correction as approved by the Corporation, a grantee or 
subgrantee fails to achieve the established levels of 
performance, the Corporation shall--
          (1) reduce the annual amount of the grant award 
        attributable to the underperforming grantee or 
        subgrantee by at least 25 percent; or
          (2) terminate assistance to the underperforming 
        grantee or subgrantee, consistent with section 176(a).
  (d) Reports to Congress.--The Corporation shall submit a 
report to Congress within 2 years after the date of enactment 
of this section, and annually thereafter, containing 
information on the number of programs implementing corrective 
plans and the number of programs for which assistance is 
terminated, and the number of programs meeting or exceeding 
their performance measures under this section for the year 
covered by the report.

SEC. 187. SUSTAINABILITY.

  (a) Goals.--To ensure that recipients of assistance under the 
national service laws are meeting sustainability goals, the 
Corporation may, in consultation with recipients of assistance 
under the national service laws, establish policies and 
procedures to--
          (1) establish limits on the number of years 
        recipients may receive assistance to carry out a 
        project;
          (2) increase match requirements; and
          (3) implement measures to ascertain whether projects 
        are generating sufficient community support.
  (b) Enforcement.--Any action by the Corporation to suspend or 
terminate assistance to recipients that do not meet 
sustainability goals set by the Corporation shall be consistent 
with section 176(a) and section 186.

SEC. 188. USE OF RECOVERED FUNDS.

  (a) Factors Considered in Approving Repayment.--After the 
date of enactment of this section, whenever the Corporation 
recovers funds paid to a recipient under a grant or cooperative 
agreement made under the national service laws because the 
recipient made an expenditure of funds that was not allowable, 
or otherwise failed to discharge its responsibility to account 
properly for funds, the Corporation may consider those funds to 
be additional funds available and may arrange to repay to the 
recipient affected by that action an amount not to exceed 75 
percent of the recovered funds if the Corporation determines 
that--
          (1) the practices or procedures of the recipient that 
        resulted in the recovery of funds have been corrected, 
        and that the recipient is in all other respects in 
        compliance with the requirements of the grant or 
        cooperative agreement, if the recipient was notified of 
        any noncompliance with such requirements and given a 
        reasonable period of time to remedy such noncompliance;
          (2) the recipient has submitted to the Corporation a 
        plan for the use of those funds consistent with the 
        national service laws and, to the extent possible, for 
        the benefit of the community affected by the recovery 
        of funds; and
          (3) the use of those funds in accordance with that 
        plan would serve to achieve the objectives of the grant 
        or cooperative agreement under which the funds were 
        originally paid.
  (b) Terms and Conditions of Repayment.--Any payments by the 
Corporation under this section shall be subject to other terms 
and conditions as the Corporation considers necessary to 
accomplish the purposes of the grant or cooperative agreement, 
including--
          (1) the submission of periodic reports on the use of 
        funds provided under this section; and
          (2) consultation by the recipient with members of the 
        community that will benefit from the payments.
  (c) Availability of Funds.--Notwithstanding any other 
provision of law, the funds made available under this section 
shall remain available for expenditure for a period of time 
considered reasonable by the Corporation, but in no case to 
exceed more than 3 fiscal years following the later of--
          (1) the fiscal year in which final agency action 
        regarding the disallowance of funds is taken; or
          (2) if such recipient files a petition for judicial 
        review regarding the disallowance of funds, the fiscal 
        year in which final judicial action is taken on such a 
        petition.
  (d) Publication in Federal Register.--At least 60 days prior 
to entering into an arrangement under this section, the 
Corporation shall publish in the Federal Register a notice of 
intent to enter into such an arrangement and the terms and 
conditions under which payments will be made. Interested 
persons shall have an opportunity for at least 30 days to 
submit comments to the Corporation regarding the proposed 
arrangement.

SEC. 189. CAPACITY BUILDING.

  Participants in programs supported under the national service 
laws, including individuals serving in approved national 
service positions, may engage in activities, including 
recruiting and managing volunteers, that increase the capacity 
of organizations that receive assistance under the national 
service laws to address unmet human, educational, 
environmental, or public safety needs.

SEC. 189A. EXPENSES OF ATTENDING MEETINGS.

  Notwithstanding section 1345 of title 31, United States Code, 
funds authorized under the national service laws shall be 
available for expenses of attendance of meetings that are 
concerned with the functions or activities for which the funds 
are appropriated or which will contribute to improved conduct, 
supervision, or management of those functions or activities.

SEC. 189B. FEES.

  (a) Collection of Fees.--The Corporation may charge and 
retain fair and reasonable fees for training, technical 
assistance, and publications. The amount of the fees shall be 
based on the cost of the activities or publications to the 
Corporation.
  (b) Not Federal Funds.--Fees collected under subsection (a) 
shall not be considered to be Federal funds and shall not be 
required to be deposited in the Treasury of the United States.
  (c) Annual Reports.--The Corporation shall submit to the 
appropriate committees of Congress an annual report that 
includes the services or publications provided on a fee basis 
and the amount of fees received.

SEC. 189C. GRANT PERIODS.

  Unless otherwise specifically provided, the Corporation has 
authority to make a grant under the national service laws for a 
period of 3 years.

SEC. 189D. 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 meeting community needs.

SEC. 189E. LIMITATION ON PROGRAM GRANT COSTS.

  (a) Limitation on Grant Amounts.--Except as otherwise 
provided by this section, the amount of funds approved by the 
Corporation in a grant to operate a program authorized under 
the national service laws supporting individuals serving in 
approved national service positions may not exceed $16,000 per 
full-time equivalent position.
  (b) Costs Subject to Limitation.--The limitation in 
subsection (a) applies to the Corporation's share of member 
support costs, staff costs, and other costs borne by the 
grantee or subgrantee to operate a program.
  (c) Costs Not Subject to Limitation.--The limitation in 
subsection (a) and (e)(1) shall not apply to expenses that are 
not included in the program operating grant award.
  (d) Adjustments for Inflation.--The amount specified in 
subsections (a) and (e)(1) shall be adjusted each year after 
2003 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 waive 
        the requirements of this section, up to a maximum of 
        $18,000, ifnecessary to meet the compelling needs of a 
particular program, such as exceptional training needs for a program 
serving disadvantaged youth, increased costs relating to the 
participation of individuals with disabilities, and start-up costs 
associated with a first-time grantee, and up to a maximum of $20,000 
for residential programs.
          (2) Reports.--The Chief Executive Officer shall 
        report to Congress annually on all waivers granted 
        under this section, with an explanation of the 
        compelling needs justifying such waivers.

SEC. 189F. NOTICE REQUIREMENT.

  (a) The Corporation shall ensure that the following notice is 
included in all application materials, grant announcements, and 
other material containing information regarding the application 
for assistance provided under the national service laws: ``The 
Civil Rights Act of 1964 prohibits employers with 15 or more 
employees from engaging in employment practices that 
discriminate against an individual based on religion. Under 
section 702(a) of the Civil Rights Act, this prohibition 
generally does not apply to a religious corporation, 
association, educational institution, or society. However, as a 
requirement of receiving funding under the national service 
laws, any such religious entity shall not discriminate based on 
religion when employing new staff paid with funds received 
under the national service laws pursuant to section 175(c) of 
the National and Community Service Act of 1990 (42 U.S.C. 
12635(c)) and section 417(c) of the Domestic Volunteer Service 
Act of 1973 (42 U.S.C. 5057(c)).''.
  (b) Before providing assistance to a private entity 
referenced in paragraph (1), the Corporation shall ensure that 
written confirmation, separate from any other documents 
required by law or regulation, is obtained from such private 
entity acknowledging the recipient of assistance or funds has 
read and understands the following: ``The Civil Rights Act of 
1964 prohibits employers with 15 or more employees from 
engaging in employment practices that discriminate against an 
individual based on religion. Under section 702(a) of the Civil 
Rights Act, this prohibition generally does not apply to a 
religious corporation, association, educational institution, or 
society. However, as a requirement of receiving funding under 
the national service laws, any such religious entity shall not 
discriminate based on religion when employing new staff paid 
with funds received under the national service laws pursuant to 
section 175(c) of the National and Community Service Act of 
1990 (42 U.S.C. 12635(c)) and section 417(c) of the Domestic 
Volunteer Service Act of 1973 (42 U.S.C. 5057(c)).''.
  (c) Subsections (a) and (b) of this section shall not amend, 
supersede, or otherwise affect rights, protections, or duties 
under the Civil Rights laws of the United States, the national 
service laws, or any other law.

SEC. 189G. 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. 501 et seq.) and the Government 
Corporation Control Act of 1945 (31 U.S.C. 9101 et seq.). The 
Corporation shall report to the Congress any failure to comply 
with the requirements of such audits.

      Subtitle G--Corporation for National and Community Service

           *       *       *       *       *       *       *

SEC. 192. BOARD OF DIRECTORS.

  (a) * * *

           *       *       *       *       *       *       *

  [(c) Terms.--Each appointed member of the Board shall serve 
for a term of 5 years, except that, as designated by the 
President--
          [(1) 3 of the members first appointed to the Board 
        shall serve for a term of 1 year;
          [(2) 3 of the members first appointed to the Board 
        shall serve for a term of 2 years;
          [(3) 3 of the members first appointed to the Board 
        shall serve for a term of 3 years;
          [(4) 3 of the members first appointed to the Board 
        shall serve for a term of 4 years; and
          [(5) 3 of the members first appointed to the Board 
        shall serve for a term of 5 years.]
  (c) Terms.--Subject to subsection (e), each appointed member 
shall serve for a term of 5 years.

           *       *       *       *       *       *       *

  (e) Service Until Appointment of Successor.--A voting member 
of the Board whose term has expired may continue to serve until 
the earlier of--
          (1) the date on which a successor has taken office; 
        or
          (2) the date on which the Congress adjourns sine die 
        to end the session of Congress that commences after the 
        date on which the member's term expired.

SEC. 192A. AUTHORITIES AND DUTIES OF THE BOARD OF DIRECTORS.

  (a) * * *

           *       *       *       *       *       *       *

  (g) Duties.--The Board [shall--] shall have responsibility 
for setting overall policy for the Corporation and shall--
          (1) * * *
          [(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)] (2) 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)] (3) review and approve the evaluation plan 
        described in section 193A(b)(4)(A);
          [(5)(A)] (4)(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; and

           *       *       *       *       *       *       *

          [(6)] (5) receive any report as provided under 
        subsection (b), (c), or (d) of section 8E of the 
        Inspector General Act of 1978;
          [(7)] (6) make recommendations relating to a program 
        of research for the Corporation with respect to 
        national and community service programs, including 
        service-learning programs;
          [(8)] (7) advise the President and the Congress 
        concerning developments in national and community 
        service that merit the attention of the President and 
        the Congress;
          [(9)] (8) ensure effective dissemination of 
        information regarding the programs and initiatives of 
        the Corporation; and
          [(10)] (9) notwithstanding any other provision of 
        law, make grants to or contracts with Federal or other 
        public departments or agencies and private nonprofit 
        organizations for the assignment or referral of 
        volunteers under the provisions of the Domestic 
        Volunteer Service Act of 1973 (except as provided in 
        section 108 of the Domestic Volunteer Service Act of 
        1973), which may provide that the agency or 
        organization shall pay all or a part of the costs of 
        the [program; and] program under a cost share 
        agreement, as determined by the Corporation, in which 
        the funds advanced or received as reimbursement shall 
        be credited directly to a current appropriation.
          [(11) prepare and make recommendations to the 
        Congress 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)(10), which 
        recommendations shall be submitted to the Congress and 
        President not later than September 30, 1995.]

           *       *       *       *       *       *       *

SEC. 193A. AUTHORITIES AND DUTIES OF THE CHIEF EXECUTIVE OFFICER.

  (a) * * *
  (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 shall--
          (1) * * *

           *       *       *       *       *       *       *

          (9) prepare and submit to the appropriate committees 
        of Congress an annual report, and such interim reports 
        as may be necessary, describing--
                  (A) * * *

           *       *       *       *       *       *       *

                  (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; and
          [(10) provide for studies (including the evaluations 
        described in subsection (f)) and demonstrations that 
        evaluate, and prepare and submit to the Board by June 
        30, 1995, 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 designed to meet the unmet 
                        human, education, environmental, or 
                        public safety needs described in 
                        section 122(c)(1) are being addressed 
                        by this Act;
                          [(ii) the manner in which--
                                  [(I) educational and other 
                                outcomes of both stipended and 
                                nonstipended service and 
                                service-learning 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; and]
          [(11)] (10) 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.
  (c) Powers.--In 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) * * *

           *       *       *       *       *       *       *

          (9) consolidate the reports to Congress 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 
        Congress on an annual basis; [and]
          (10) obtain the opinions of peer reviewers in 
        evaluating applications to the Corporation for 
        assistance under this title; and
          [(10)] (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.

           *       *       *       *       *       *       *

  [(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 date specified in 
                subsection (b)(10).
                  [(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)] (f) Recruitment and Public Awareness Functions.--
          (1) * * *

           *       *       *       *       *       *       *

SEC. 195. EMPLOYEES, CONSULTANTS, AND OTHER PERSONNEL.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Corporation Representative in Each State.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) [Member] Non-voting member of state commission.--
        The representative designated under this subsection for 
        a State or group of States shall also serve as a non-
        voting member of the State Commission established in 
        the State or States, as described in section 178(c)(3).

           *       *       *       *       *       *       *

  (g) Personal Services Contracts.--The Corporation may enter 
into personal services contracts to carry out research, 
evaluation, and public awareness related to the national 
service laws.

SEC. 196. ADMINISTRATION.

  (a) Donations.--
          (1) Services.--
                  [(A) Volunteers.--Notwithstanding section 
                1342 of title 31, United States Code, the 
                Corporation may solicit and accept the 
                voluntary services of individuals 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).]
                  (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) of 
                this Act (42 U.S.C. 12651b(d)).
                  (B) Limitation.--[Such a volunteer] An 
                individual who provides services under this 
                subtitle 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, [a 
                        volunteer] an individual who provides 
                        services under this subtitle shall be 
                        considered to be a Federal employee;
                          (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, 
                        [volunteers] individuals who provide 
                        services under this subtitle 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 volunteer] 
                        an individual who provides such 
                        services (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 volunteer] 
                        An individual who provides services to 
                        the Corporation shall not carry out an 
                        inherently governmental function.

           *       *       *       *       *       *       *

          [(3) Volunteer.--As used in this subsection, the term 
        ``volunteer'' does not include a participant.]

           *       *       *       *       *       *       *

           Subtitle H--Investment for Quality and Innovation

SEC. 198. ADDITIONAL CORPORATION ACTIVITIES TO SUPPORT NATIONAL 
                    SERVICE.

  (a) * * *

           *       *       *       *       *       *       *

  (e) [Improve Ability To Apply for Assistance] Training and 
Technical Assistance.--The Corporation shall 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 high-quality programs, to evaluate 
such programs, and for other purposes.] and other entities, 
including those in underserved rural and urban areas, to enable 
them to apply for funding under one of the national service 
laws, to conduct high-quality programs, to evaluate such 
programs, to support efforts to improve the management of 
nonprofit organizations and community groups, and for other 
purposes.

           *       *       *       *       *       *       *

  (i) 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] may promote and recruit participants for 
programs that receive assistance under the national service 
laws.

           *       *       *       *       *       *       *

  [(q) 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 observe 
        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 nonprofit organizations with 
        demonstrated ability to carry out appropriate 
        activities, in order to support such activities on 
        National Youth Service Day.]
  [(r)] (q) [Assistance for Head Start] Agreements with Foster 
Grandparent Programs.--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).
  [(s)] (r) Martin Luther King, Jr., Service Day.--
          (1) * * *

           *       *       *       *       *       *       *

  (s) Chief Executive Officer Discretionary Grants.--
          (1) Authority.--The Chief Executive Officer is 
        authorized to make grants, consistent with policies and 
        procedures established by the Board of Directors, 
        including grants made on the basis of an unsolicited 
        application, to any entity eligible for assistance 
        under the national service laws to support greater 
        engagement of citizens in service and volunteerism.
          (2) Matching funds.--The Chief Executive Officer 
        shall require recipients of grants under this 
        subsection to provide matching funds from non-Federal 
        sources.
          (3) Report.--The Chief Executive Officer shall report 
        to Congress on an annual basis on any grants made under 
        this subsection.
  (t) Volunteer Service Technology Program.--The Corporation 
may provide grants for Volunteer Service Technology Programsto 
assist Internet volunteer recruiting entities to locate, promote, and 
match volunteers with local service and volunteer organizations. The 
Chief Executive Officer shall require recipients of grants under this 
subsection to provide matching funds from non-Federal sources.

           *       *       *       *       *       *       *

[SEC. 198D. SPECIAL DEMONSTRATION PROJECT.

  [(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.--
          [(1) General requirements.--To be eligible to receive 
        a grant or enter into a contract under subsection (a) 
        with respect to a program, an organization shall submit 
        an application to the President at such time, in such 
        manner, and containing such information as the 
        President may require.
          [(2) Contents.--The application submitted by the 
        organization shall, at a minimum--
                  [(A) 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;
                  [(B) take into consideration--
                          [(i) the primarily noncash economy of 
                        the region; and
                          [(ii) the needs and desires of 
                        residents of the local communities in 
                        the region; and
                  [(C) 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 Yukon-
                Kuskokwim delta region.]

           *       *       *       *       *       *       *

                Subtitle J--Senior Service Scholarships

SEC. 199N. AUTHORITY TO PROVIDE ASSISTANCE AND SENIOR SERVICE 
                    SCHOLARSHIPS.

  (a) Provision of Assistance.--Subject to the availability of 
appropriations for this purpose, the Corporation may make 
grants to eligible entities under subsection (b) for the 
purpose of assisting the recipients of the grants in carrying 
out or sponsoring mentoring, tutoring, and other programs 
described in section 199P.
  (b) Eligible Applicants.--States, Indian tribes, other public 
agencies, and nonprofit organizations are eligible to apply for 
grants under this subtitle.
  (c) Provision of Senior Service Scholarships.--The 
Corporation may approve the provision of senior service 
scholarships described in section 199T for volunteers who meet 
the requirements in section 199S by serving--
          (1) in programs supported by assistance under 
        subsection (a); or
          (2) in other programs consistent with the provisions 
        of section 199P, as determined by the Corporation in 
        consultation with a State or other recipient.

SEC. 199O. PROGRAMS ELIGIBLE FOR ASSISTANCE.

  (a) Tutoring and Mentoring Activities.--Grants provided under 
this subtitle may support the service of seniors in mentoring 
and tutoring, either directly or indirectly (through activities 
such as family literacy programs), individuals up to 17 years 
of age. Tutoring programs in reading for children pre-K through 
grade 6 supported under this subtitle must be research-based.
  (b) Other Activities.--Grants provided under this subtitle 
may also support the service of seniors to meet a wide variety 
of community needs, as set forth in the purposes of this Act.

SEC. 199P. GRANTS.

  (a) Amount.--After approving an application under this 
subtitle, the Corporation may provide up to $600 per senior 
volunteer supported under this subtitle.
  (b) Grant Period.--Grants provided under this subtitle may 
cover a period of not more than 3 years, but may be renewed by 
the Corporation for successive periods.
  (c) Use of Funds.--Grants provided under this subtitle may be 
used to pay reasonable costs attributable to the development or 
operation of volunteer programs, consistent with the 
application approved by the Corporation, including--
          (1) reimbursing direct volunteer costs, such as 
        transportation, meals, and other items incidental to 
        performing service;
          (2) recruitment and training of volunteers;
          (3) insurance; and
          (4) management of volunteers.
  (d) Restriction.--A senior volunteer supported under this 
subtitle may not receive an amount greater than the amounts for 
allowances, stipends, and other support to senior volunteers as 
determined by the Corporation under title II of the Domestic 
Volunteer Service Act of 1973 (42 U.S.C. 5000 et seq.).

SEC. 199Q. FUNDS FOR SENIOR SERVICE SCHOLARSHIPS.

  (a) In General.--Funds for senior service scholarships may 
include--
          (1) appropriations authorized under section 501(a);
          (2) gifts specifically intended for senior service 
        scholarships received by the Corporation under section 
        196(a)(2); and
          (3) interest that accrues on the funds received by 
        the Corporation under paragraphs (1) and (2).
  (b) National Service Trust.--Funds received by the 
Corporation under subsection (a) shall be deposited into the 
National Service Trust established under section 145(a).
  (c) Investment of Funds.--The Corporation shall ensure that 
funds for senior service scholarships are invested in 
accordance with section 145(b).
  (d) Treatment of Funds.--The Corporation shall--
          (1) use funds received under subsection (a) only for 
        senior service scholarships; and
          (2) account for funds received under subsection (a) 
        separately from other funds in the National Service 
        Trust.
  (e) Expenditures From National Service Trust.--Funds received 
under subsection (a) shall be available to provide a senior 
service scholarship to a senior volunteer eligible under 
section 199S in an amount as provided in section 199T.
  (f) Disbursement.--Within 30 days of receiving a request from 
the recipient that meets requirements to be set by the 
Corporation, the Corporation shall disburse the senior service 
scholarship to the recipient as authorized under subtitle D.

SEC. 199R. ELIGIBILITY TO RECEIVE A SENIOR SERVICE SCHOLARSHIP.

  To be eligible to receive a senior service scholarship, an 
individual must--
          (1) successfully complete 500 hours of service in not 
        more than 1 year in a mentoring, tutoring, or other 
        program approved by the Corporation; and
          (2) be 55 years of age or older at the time the 
        individual begins the period of 500 hours of service.

SEC. 199S. AMOUNT OF SENIOR SERVICE SCHOLARSHIP.

  (a) In General.--The amount of a senior service scholarship 
for 500 hours of service is $1,000.
  (b) Prorated Amount.--If an individual serves at least 250 
hours but is unable to complete 500 hours in a 1-year period 
for compelling personal circumstances as determined by the 
recipient organization, the amount of the senior service 
scholarship shall be proportional to the number of hours 
actually served.

         Subtitle K--America's Promise: The Alliance for Youth

SEC. 199AA. AUTHORITY TO PROVIDE ASSISTANCE.

  Subject to the availability of appropriations for this 
purpose, the Corporation may make grants to America's Promise: 
The Alliance for Youth to support its activities relating to 
mobilizing communities to ensure that young people become 
productive, responsible adults.

SEC. 199BB. ALLOWABLE COSTS.

  Grant funds may be used to pay costs attributable to the 
development or operation of programs consistent with a grant 
award approved by the Corporation under section 199AA.

SEC. 199CC. CORPORATION'S CHIEF EXECUTIVE OFFICER AS EX OFFICIO MEMBER 
                    OF BOARD OF DIRECTORS.

  The Corporation's Chief Executive Officer may serve as an ex 
officio nonvoting member of the Board of Directors of America's 
Promise: The Alliance for Youth.

           *       *       *       *       *       *       *

                 TITLE III--POINTS OF LIGHT FOUNDATION

           *       *       *       *       *       *       *

[SEC. 302. FINDINGS AND PURPOSES.

  [(a) Findings.--Congress finds that--
          [(1) community service and service to others is an 
        integral part of American tradition;
          [(2) existing volunteers and volunteer programs 
        should be praised for their efforts in helping and 
        serving others;
          [(3) the definition of a successful life includes 
        service to others;
          [(4) individuals should be encouraged to volunteer 
        their time and energies in community service efforts;
          [(5) if asked to volunteer or participate in 
        community service, most Americans will do so;
          [(6) institutions should be encouraged to volunteer 
        their resources and energies and should encourage 
        volunteer and community service among their members, 
        employees, affiliates; and
          [(7) volunteer and community service programs are 
        intended to complement and not replace governmental 
        responsibilities.
  [(b) Purpose.--It is the purpose of this title--
          [(1) to encourage every American and every American 
        institution to help solve our most critical social 
        problems by volunteering their time, energies and 
        services through community service projects and 
        initiatives;
          [(2) to identify successful and promising community 
        service projects and initiatives, and to disseminate 
        information concerning such projects and initiatives to 
        other communities in order to promote their adoption 
        nationwide; and
          [(3) to discover and encourage new leaders and 
        develop individuals and institutions that serve as 
        strong examples of a commitment to serving others and 
        to convince all Americans that a successful life 
        includes serving others.]

SEC. 302. PURPOSE.

  It is the purpose of this title--
          (1) to encourage every individual and every 
        institution in the Nation to help solve critical social 
        problems by volunteering time, energies, and services 
        through community and volunteer service projects and 
        initiatives;
          (2) to identify successful and promising community 
        and volunteer service projects and initiatives, and to 
        disseminate information, training, and technical 
        assistance concerning such projects and initiatives to 
        other communities in order to promote and sustain their 
        adoption nationwide;
          (3) to discover and encourage new leaders and develop 
        individuals and institutions that serve as strong 
        examples of a commitment to serving others and to 
        convince all people in the United States that a 
        successful life includes serving others;
          (4) to encourage and facilitate the development of 
        new volunteer centers in designated localities; and
          (5) to strengthen the aggregate infrastructure of our 
        Nation's volunteer centers in order to maximize 
        recruitment, management, and retention.

SEC. 303. AUTHORITY.

  (a) * * *
  (b) Corporation's Chief Executive Officer as Ex Officio 
Member of Board of Directors.--The Corporation's Chief 
Executive Officer may serve as an ex officio nonvoting member 
of the Foundation's Board of Directors.
  [(b)] (c) Construction.--Nothing in this Act shall be 
construed either--
          (1) * * *

           *       *       *       *       *       *       *

SEC. 304. GRANTS TO THE FOUNDATION.

  (a) In General.--Funds made available pursuant to sections 
303 and 501(b) shall be granted to the Foundation by [a 
department or agency in the executive branch of the United 
States Government designated by the President--] the 
Corporation--
          (1) * * *

           *       *       *       *       *       *       *

  (c) Endowment.--
          (1) In general.--Notwithstanding any other law, of 
        the funds made available each fiscal year under 
        sections 303 and 501(b), up to 25 percent may be used 
        to establish or support an endowment fund, the corpus 
        of which shall remain intact and the interest income 
        from which shall be used to support activities 
        described in this title, provided that the Foundation 
        may invest the corpus and income only in federally 
        insured bank savings accounts or comparable interest-
        bearing accounts, certificates of deposit, money market 
        funds, mutual funds, obligations of the United States, 
        or other market instruments and securities, but not in 
        real estate investments.
          (2) End of operations.--The Chief Executive Officer 
        shall obtain from the Foundation complete and accurate 
        records of Federal funds deposited in an endowment 
        established in accordance with paragraph (1). The 
        corpus of such an endowment shall revert to the 
        Treasury if the Chief Executive Officer determines 
        that--
                  (A) the Foundation has ceased operations; or
                  (B) the Foundation is no longer capable of 
                carrying out the activities described in 
                section 302.
  (d) Grants To Support Community-Based Volunteer Centers.--
From funds made available under section 303 and 501(b), the 
Foundation may make grants to--
          (1) community-based organizations for the purpose of 
        facilitating the development of volunteer centers; and
          (2) community-based volunteer centers to support 
        their ability to recruit, manage, and retain 
        volunteers.

           *       *       *       *       *       *       *

                TITLE V--AUTHORIZATION OF APPROPRIATIONS

[SEC. 501. AUTHORIZATION OF APPROPRIATIONS.

  [(a) Title I.--
          [(1) Subtitle b.--
                  [(A) In general.--There are authorized to be 
                appropriated to provide financial assistance 
                under subtitle B of title I, $45,000,000 for 
                fiscal year 1994 and such sums as may be 
                necessary for each of the fiscal years 1995 
                through 1996.
                  [(B) Programs.--Of the amount appropriated 
                under subparagraph (A) for a fiscal year--
                          [(i) not more than 63.75 percent 
                        shall be available to provide financial 
                        assistance under subpart A of part I of 
                        subtitle B of title I;
                          [(ii) not more than 11.25 percent 
                        shall be available to provide financial 
                        assistance under subpart B of part I of 
                        such subtitle; and
                          [(iii) not more than 25 percent shall 
                        be available to provide financial 
                        assistance under part II of such 
                        subtitle.
          [(2) Subtitles c, d, and h.--
                  [(A) In general.--There are authorized to be 
                appropriated to provide financial assistance 
                under subtitles C and H of title I, to provide 
                national service educational awards under 
                subtitle D of title I, and to carry out such 
                audits and evaluations as the Chief Executive 
                Officer or the Inspector General of the 
                Corporation may determine to be necessary, 
                $300,000,000 for fiscal year 1994, $500,000,000 
                for fiscal year 1995, and $700,000,000 for 
                fiscal year 1996.
                  [(B) Programs.--Of the amount appropriated 
                under subparagraph (A) for a fiscal year, up to 
                15 percent shall be made available to provide 
                financial assistance under section 125, under 
                subsections (b) and (c) of section 126, and 
                under subtitle H of title I.
          [(3) Subtitle e.--There are authorized to be 
        appropriated to provide financial assistance under 
        subtitle E of title I, such sums as may be necessary 
        for each of the fiscal years 1995 through 1996.
          [(4) Administration.--
                  [(A) In general.--There are authorized to be 
                appropriated for the administration of this Act 
                $40,000,000 for fiscal year 1994, $60,000,000 
                for fiscal year 1995, and $70,000,000 for 
                fiscal year 1996.
                  [(B) Corporation.--Of the amounts 
                appropriated under subparagraph (A) for a 
                fiscal year--
                          [(i) up to 60 percent shall be made 
                        available to the Corporation for the 
                        administration of this Act; and
                          [(ii) the remainder shall be 
                        available to provide financial 
                        assistance under section 126(a).
  [(b) Title III.--There are authorized to be appropriated to 
carry out title III $5,000,000 for each of the fiscal years 
1994 through 1996.
  [(c) Availability of Appropriations.--Funds appropriated 
under this section shall remain available until expended.
  [(d) Specification of Budget Function.--The authorizations of 
appropriations contained in this section shall be considered to 
be a component of budget function 500 as used by the Office of 
Management and Budget to cover education, training, employment, 
and social services, and, as such, shall be considered to be 
related to the programs of the Departments of Labor, Health and 
Human Services, and Education for budgetary purposes.]

SEC. 501. AUTHORIZATION OF APPROPRIATIONS.

  (a) Title I.--
          (1) Subtitle b.--
                  (A) In general.--There are authorized to be 
                appropriated to provide financial assistance 
                under subtitle B of title I, $55,000,000 for 
                fiscal year 2003, $58,000,000 for fiscal year 
                2004, $61,000,000 for fiscal year 2005, 
                $65,000,000 for fiscal year 2006, and such sums 
                as may be necessary for fiscal year 2007.
                  (B) Programs.--Of the amount appropriated 
                under subparagraph (A) for a fiscal year--
                          (i) not more than 50 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 25 percent shall 
                        be available to provide financial 
                        assistance under part III of such 
                        subtitle.
          (2) Subtitles c, d, and h.--
                  (A) In general.--There are authorized to be 
                appropriated to provide financial assistance 
                under subtitles C and H of title I, to 
                administer the National Service Trust and 
                disburse national service educational awards 
                and scholarships under subtitle D of title I, 
                and to carry out such audits and evaluations as 
                the Chief Executive Officer or the Inspector 
                General of the Corporation may determine to be 
                necessary, $415,000,000 for fiscal year 2003, 
                and such sums as may be necessary for fiscal 
                years 2004 through 2007.
                  (B) Programs.--Of the amount appropriated 
                under subparagraph (A) for a fiscal year, up to 
                15 percent shall be made available to provide 
                financial assistance under section 125, under 
                subsections (b) and (c) of section 126, and 
                under subtitle H of title I.
                  (C) Subtitle c.--Of the amount appropriated 
                under subparagraph (A) for fiscal year 2003, 
                not more than $315,000,000 shall be made 
                available to provide financial assistance under 
                section 121 of subtitle C of title I.
          (3) Subtitle e.--There are authorized to be 
        appropriated to operate the Civilian Community Corps 
        and provide financial assistance under subtitle E of 
        title I, $30,000,000 for fiscal year 2003 and such sums 
        as may be necessary for each of the fiscal years 2004 
        through 2007.
          (4) Subtitle j (senior service scholarships 
        program).--There are authorized to be appropriated to 
        provide financial assistance under subtitle J of title 
        I $12,000,000 for fiscal year 2003 and such sums as may 
        be necessary for each of fiscal years 2004 through 
        2007.
          (5) Subtitle k (america's promise).--There are 
        authorized to be appropriated to provide financial 
        assistance under subtitle K of title I $7,500,000 for 
        fiscal year 2003 and such sums as may be necessary for 
        each of fiscal years 2004 through 2007.
          (6) Administration.--
                  (A) In general.--There are authorized to be 
                appropriated for the administration of this 
                Act, including financial assistance under 
                section 126(a), $34,000,000 for fiscal year 
                2003 and such sums as may be necessary for each 
                of fiscal years 2004 through 2007.
                  (B) Corporation.--Of the amounts appropriated 
                under subparagraph (A) for a fiscal year--
                          (i) up to 60 percent shall be made 
                        available to the Corporation for the 
                        administration of this Act; and
                          (ii) the remainder shall be available 
                        to provide financial assistance under 
                        section 126(a).
  (b) Title III.--There are authorized to be appropriated to 
carry out title III $10,000,000 for fiscal year 2003 and such 
sums as may be necessary for each of fiscal years 2004 through 
2007.
  (c) Availability of Appropriations.--Funds appropriated under 
this section shall remain available until expended.

           *       *       *       *       *       *       *

                              ----------                              

                 DOMESTIC VOLUNTEER SERVICE ACT OF 1973

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Domestic 
Volunteer Service Act of 1973''.
  [(b) Table of Contents.--The table of contents is as follows:
[Sec. 1. Short title; table of contents.
[Sec. 2. Volunteerism policy.

            [TITLE I--NATIONAL VOLUNTEER ANTIPOVERTY PROGRAMS

                [Part A--Volunteers in Service to America

[Sec. 101. Statement of purpose.
[Sec. 102. Authority to operate VISTA program.
[Sec. 103. Selection and assignment of volunteers.
[Sec. 104. Terms and periods of service.
[Sec. 105. Support service.
[Sec. 106. Participation of beneficiaries.
[Sec. 107. Participation of younger and older persons.
[Sec. 108. Limitation.
[Sec. 109. VISTA Literacy Corps.
[Sec. 110. Applications for assistance.

                   [Part B--University Year for VISTA

[Sec. 111. Statement of purpose.
[Sec. 112. Authority to operate University Year for VISTA program.
[Sec. 113. Special conditions.

                   [Part C--Special Volunteer Programs

[Sec. 121. Statement of purpose.
[Sec. 122. Authority to establish and operate special volunteer and 
          demonstration programs.
[Sec. 123. Technical and financial assistance.
[Sec. 124. Literacy challenge grants.

               [TITLE II--NATIONAL SENIOR VOLUNTEER CORPS

[Sec. 200. Statement of purposes.

              [Part A--Retired and Senior Volunteer Program

[Sec. 201. Grants and contracts for volunteer service projects.

                   [Part B--Foster Grandparent Program

[Sec. 211. Grants and contracts for volunteer service projects.

                    [Part C--Senior Companion Program

[Sec. 213. Grants and contracts for volunteer service projects.

                       [Part D--General Provisions

[Sec. 221. Promotion of National Senior Volunteer Corps.
[Sec. 222. Payments.
[Sec. 223. Minority group participation.
[Sec. 224. Use of locally generated contributions in National Senior 
          Volunteer Corps.
[Sec. 225. Programs of national significance.
[Sec. 226. Adjustments to Federal financial assistance.
[Sec. 227. Multiyear grants or contracts.

                     [Part E--Demonstration Programs

[Sec. 231. Authority of Director.

               [TITLE IV--ADMINISTRATION AND COORDINATION

[Sec. 403. Political activities.
[Sec. 404. Special limitations.
[Sec. 406. Labor standards.
[Sec. 408. Joint funding.
[Sec. 409. Prohibition of Federal control.
[Sec. 410. Coordination with other programs.
[Sec. 411. Prohibition.
[Sec. 412. Notice and hearing procedures for suspension and termination 
          of financial assistance.
[Sec. 414. Distribution of benefits between rural and urban areas.
[Sec. 415. Application of Federal law.
[Sec. 416. Evaluation.
[Sec. 417. Nondiscrimination provisions.
[Sec. 418. Eligibility for other benefits.
[Sec. 419. Legal expenses.
[Sec. 421. Definitions.
[Sec. 422. Audit.
[Sec. 423. Reduction of paperwork.
[Sec. 424. Review of project renewals.
[Sec. 425. Protection against improper use.
[Sec. 426. Center for Research and Training.

                [TITLE V--AUTHORIZATION OF APPROPRIATIONS

[Sec. 501. National volunteer antipoverty programs.
[Sec. 502. National Senior Volunteer Corps.
[Sec. 504. Administration and coordination.
[Sec. 505. Availability of appropriations.

            [TITLE VI--AMENDMENTS TO OTHER LAWS AND REPEALERS

[Sec. 601. Supersedence of Reorganization Plan No. 1 of July 1, 1971.
[Sec. 602. Creditable service for civil service retirement.
[Sec. 603. Repeal of title VIII of the Economic Opportunity Act.
[Sec. 604. Repeal of title VI of the Older Americans Act.]
  (b) Table of Contents.--The table of contents is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Volunteerism policy.

            TITLE I--NATIONAL VOLUNTEERS ANTIPOVERTY PROGRAM

                Part A--Volunteers in Service to America

Sec. 101. Statement of purpose.
Sec. 102. Authority to operate VISTA program.
Sec. 103. Selection and assignment of volunteers.
Sec. 104. Terms and periods of service.
Sec. 105. Support service.
Sec. 106. Participation of beneficiaries.
Sec. 107. Participation of younger and older persons.
Sec. 108. Limitation.
Sec. 110. Applications for assistance.

                    Part B--University Year for VISTA

Sec. 111. Statement of purpose.
Sec. 112. Authority to operate University Year for VISTA program.
Sec. 113. Special conditions.

                   Part C--Special Volunteers Program

Sec. 121. Statement of purpose.
Sec. 122. Authority to establish and operate special volunteer and 
          demonstration programs.
Sec. 123. Technical and financial assistance.

                 TITLE II--NATIONAL SENIOR SERVICE CORPS

Sec. 200. Statement of purposes.

              Part A--Retired and Senior Volunteer Program

Sec. 201. Grants and contracts for volunteer service projects.

                   Part B--Foster Grandparent Program

Sec. 211. Grants and contracts for volunteer service projects.

                    Part C--Senior Companion Program

Sec. 213. Grants and contracts for volunteer service projects.

                       Part D--General Provisions

Sec. 221. Promotion of National Senior Volunteer Corps.
Sec. 222. Payments.
Sec. 223. Minority group participation.
Sec. 224. Use of locally generated contributions in National Senior 
          Volunteer Corps.
Sec. 225. Programs of national significance.
Sec. 226. Adjustments to Federal financial assistance.
Sec. 227. Multiyear grants or contracts..
Sec. 228. Participation regardless of income level.
Sec. 229. Continuity of service.
Sec. 229A. Training and research.

                     Part E--Demonstration Programs

Sec. 231. Authority of Director.

                TITLE IV--ADMINISTRATION AND COORDINATION

Sec. 403. Political activities.
Sec. 404. Special limitations.
Sec. 406. Labor standards.
Sec. 408. Joint funding.
Sec. 409. Prohibition of Federal control.
Sec. 410. Coordination with other programs.
Sec. 411. Prohibition.
Sec. 414. Distribution of benefits between rural and urban areas.
Sec. 415. Application of Federal law.
Sec. 417. Nondiscrimination provisions.
Sec. 418. Eligibility for other benefits.
Sec. 419. Legal expenses.
Sec. 421. Definitions.
Sec. 422. Audit.
Sec. 423. Reduction of paperwork.
Sec. 424. Review of project renewals.
Sec. 425. Protection against improper use.
Sec. 426. Income verification.

                TITLE V--AUTHORIZATION OF APPROPRIATIONS

Sec. 501. National volunteer antipoverty programs.
Sec. 502. National Senior Service Corps.
Sec. 504. Administration and coordination.
Sec. 505. Availability of appropriations.

            TITLE VI--AMENDMENTS TO OTHER LAWS AND REPEALERS

Sec. 601. Supersedence of Reorganization Plan No. 1 of July 1, 1971.
Sec. 602. Creditable service for civil service retirement.
Sec. 603. Repeal of title VIII of the Economic Opportunity Act.
Sec. 604. Repeal of title VI of the Older Americans Act.

                          VOLUNTEERISM POLICY

  Sec. 2. (a) * * *
  (b) The purpose of this Act is to foster and expand voluntary 
citizen service in communities throughout the Nation in 
activities designed to help the poor, the disadvantaged, the 
vulnerable, and the elderly. In carrying out this purpose, the 
Corporation for National and Community Service shall utilize to 
the fullest extent the programs authorized under this Act, 
coordinate with other Federal, State, and [local agencies] 
local agencies, expand relationships with, and support for, the 
efforts of civic, community, and educational organizations, and 
utilize the energy, innovative spirit, experience, and skills 
of all Americans.

            TITLE I--NATIONAL VOLUNTEER ANTIPOVERTY PROGRAMS

                Part A--Volunteers in Service to America

                          STATEMENT OF PURPOSE

  Sec. 101. This part provides for the Volunteers in Service to 
America (VISTA) program of full-time volunteer service, 
together with appropriate powers and responsibilities designed 
to assist in the development and coordination of such program. 
The purpose of this part is to strengthen and supplement 
efforts to eliminate and alleviate poverty and poverty-related 
problems in the United States by encouraging and enabling 
persons from all walks of life, all geographical areas, and all 
age groups, including low-income individuals, elderly and 
retired Americans, to perform meaningful and constructive 
volunteer service in agencies, institutions, and situations 
where the application of human talent and dedication may assist 
in the solution of poverty and poverty-related problems and 
secure and exploit opportunities for self-advancement by 
persons [afflicted with] affected by such problems. In 
addition, the objectives of this part are to generate the 
commitment of private sectorresources, to encourage volunteer 
service at the [local level, and to strengthen local agencies and 
organizations to carry out the purpose of this part.] local level, to 
support efforts by local agencies and organizations to achieve long-
term sustainability of projects initiated or expanded under the VISTA 
program activities, and to strengthen local agencies and community 
organizations to carry out the purpose of this part, consistent with 
the provisions of section 187 of the National and Community Service Act 
of 1990.

           *       *       *       *       *       *       *

                 SELECTION AND ASSIGNMENT OF VOLUNTEERS

  Sec. 103. (a) The Director, on the receipt of applications by 
public or nonprofit private organizations to receive volunteers 
under this part, may assign volunteers selected under 
subsection (b) to work in appropriate projects and programs 
sponsored by such organizations, including work--
          (1) * * *
          (2) in the care and rehabilitation of mentally ill, 
        developmentally disabled, and other [handicapped] 
        disabled individuals, especially those with severe 
        [handicaps] disabilities;

           *       *       *       *       *       *       *

  (b)(1) The Director shall establish [recruitment and 
placement procedures] recruitment and placement procedures that 
involve sponsoring organizations and that offer opportunities 
for both local and national placement of volunteers for service 
under this part.

           *       *       *       *       *       *       *

  (c)(1) The Director, in conjunction with the [personnel 
described in subsection (b)(2)(C)] personnel described in 
subsection (b)(2)(C) and sponsoring organizations, shall engage 
in public awareness and recruitment activities. Such activities 
may include--
          (A) * * *

           *       *       *       *       *       *       *

          (F) publicizing national service educational awards 
        available under the [National and Community Service 
        Trust Act of 1993] National and Community Service Act 
        of 1990;

           *       *       *       *       *       *       *

  (3) The Director shall consult with the Director of the Peace 
Corps to coordinate the recruitment and public awareness 
activities carried out under [this subsection] this subsection 
and related public awareness and recruitment activities under 
the national service laws with those of the Peace Corps and to 
develop joint procedures and activities for the recruitment of 
volunteers to serve under this part.

           *       *       *       *       *       *       *

  (g) Volunteers under this part shall not be assigned to work 
in a program or project in any community unless the application 
for such program or project contains evidence of local support 
[and has been submitted to the Governor or other chief 
executive officer of the State concerned, and such Governor or 
other chief executive officer has not, within 45 days of the 
date of such submission, notified the Director in writing, 
supported by a statement of reasons, that such Governor or 
other chief executive officer disapproves such program or 
project. In the event of a timely request in writing, supported 
by a statement of reasons, by the Governor or other chief 
executive officer of the State concerned, the Director shall 
terminate a program or project or the assignment of a volunteer 
to a program or project not later than 30 days after the date 
such request is received by the Director, or at such later date 
as is agreed upon by the Director and such Governor or other 
chief executive officer.].

           *       *       *       *       *       *       *

  (i) The Director may enter into agreements under which public 
and private nonprofit organizations with sufficient financial 
capacity and size pay for all or a portion of the costs of 
supporting the service of volunteers under this title, 
consistent with the provisions of section 187 of the National 
and Community Service Act of 1990.

                      TERMS AND PERIODS OF SERVICE

  Sec. 104. [(a) Volunteers serving under this part shall be 
required to make a full-time personal commitment to combating 
poverty and poverty-related problems. To the maximum extent 
practicable, the requirement for full-time commitment shall 
include a commitment to live among and at the economic level of 
the people served, and to remain available for service without 
regard to regular working hours, at all times during their 
periods of service, except for authorized periods of leave.]
  (a)(1) Except as provided in paragraphs (2) through (4), 
volunteers serving under this part shall be required to make a 
full-time personal commitment to combating poverty and poverty-
related problems. To the maximum extent practicable, the 
requirement for full-time commitment shall include a commitment 
to live among and at the economic level of the people served, 
and to remain available for service without regard to regular 
working hours, at all times during their periods of service, 
except for authorized periods of leave.
  (2) The requirements in paragraph (1) shall not apply to up 
to 25 percent of volunteers enrolled in fiscal year 2003 and up 
to 50 percent of volunteers enrolled in fiscal year 2004.
  (3) Not later than September 30, 2004, the General Accounting 
Office shall submit a report to Congress on whether the changes 
provided in paragraph (2) have had a material and adverse 
effect on the ability of the VISTA program to combat poverty 
and poverty-related problems, such as increased attrition rates 
among volunteers and difficulties in recruiting volunteers.
  (4) Unless the report described in paragraph (3) concludes 
that the changes provided in paragraph (2) have caused a 
material and adverse effect on the ability of the VISTA program 
to combat poverty and poverty-related problems, the 
requirements in paragraph (1) shall not apply to up to 75 
percent of volunteers enrolled in fiscal year 2005 and up to 
100 percent of volunteers enrolled in fiscal year 2006 and 
thereafter.
  (b)(1) * * *
  (2) Volunteers serving under this part may be enrolled for 
periods of service of less than 1 year [if the Director 
determines, on an individual basis, that a period of service of 
less than 1 year is necessary to meet a critical scarce skill 
need.] if they are enrolled in a term of service of at least 
1,700 hours for which the requirements of subsection (a)(1) do 
not apply.

           *       *       *       *       *       *       *

  (d) The Director shall establish a procedure, including 
notice and opportunity to be heard, for volunteers under this 
part to present and obtain resolution of grievances and to 
present their views in connection [with the terms and 
conditions of their service.] with the terms and conditions of 
their service or any adverse action, including termination, 
proposed by the sponsoring organization. The procedure shall 
provide for an appeal to the Director of any proposed 
termination. The Director shall promptly provide to each 
volunteer in service on the date of enactment of this Act, and 
to each such volunteer beginning service thereafter, 
information regarding such procedure [and the terms and 
conditions of their service].

           *       *       *       *       *       *       *

                         [VISTA LITERACY CORPS

  [Sec. 109. (a) As part of the Volunteers in Service to 
America program established under this part, the Director shall 
establish a VISTA Literacy Corps for the purpose of developing, 
strengthening, supplementing, and expanding efforts of both 
public and nonprofit organizations at the local, State, and 
Federal level to mobilize local, State, Federal, and private 
sector financial and volunteer resources to address the problem 
of illiteracy throughout the United States.
  [(b) The Director shall assign volunteers to projects and 
programs that meet the antipoverty criteria of part A that 
provide assistance to functionally illiterate and illiterate 
individuals who are unserved or underserved by literacy 
education programs, with special emphasis upon disadvantaged 
individuals having the highest risk of illiteracy, and 
individuals with the lowest reading and educational level of 
competence.
  [(c)(1) The Director shall assign volunteers under this 
subsection to projects and programs that utilize volunteers to 
address the needs of illiterate individuals.
  [(2) Programs and projects under this subsection may be 
administered by public or private nonprofit agencies and 
organizations including local, State, and national literacy 
councils and organizations; community-based nonprofit 
organizations; local and State education agencies; local and 
State agencies administering adult basic education programs; 
educational institutions; libraries; antipoverty organizations; 
local, municipal, and State governmental entities, and eligible 
providers of employment and training activities under subtitle 
B of title I of the Workforce Investment Act of 1998.
  [(3) In the assignment of volunteers under this subsection 
the Director shall give priority consideration to--
          [(A) programs and projects that assist illiterate 
        individuals in greatest need of assistance residing in 
        unserved or underserved areas with the highest 
        concentrations of illiteracy and of low income 
        individuals and families;
          [(B) projects and programs serving individuals 
        reading at the zero to fourth grade levels;
          [(C) projects and programs focusing on providing 
        literacy services to high risk populations;
          [(D) projects and programs operating in areas with 
        the highest concentration of individuals and families 
        living at or below the poverty level;
          [(E) projects and programs providing literacy 
        services to parents of disadvantaged children between 
        the ages of two and eight, who may be educationally at 
        risk; and
          [(F) Statewide programs and projects that encourage 
        the creation of new literacy efforts, encourage the 
        coordination of intrastate literacy efforts and provide 
        technical assistance to local literacy efforts.
  [(d)(1) The Director shall assign volunteers under this 
subsection to projects and programs that primarily utilize 
volunteers to tutor illiterate individuals.
  [(2) Programs and projects under this subsection may be 
administered by local public or private nonprofit agencies and 
organizations including local literacy councils and 
organizations, community-based nonprofit organizations, local 
educational agencies, local agencies administering adult basic 
education programs, local educational institutions, libraries, 
antipoverty organizations, local and municipal governmental 
entities, and eligible providers of employment and training 
activities under subtitle B of title I of the Workforce 
Investment Act of 1998.
  [(3) In the assignment of volunteers under this subsection 
the Director shall give priority consideration to local 
programs and projects that assist illiterate individuals in 
greatest need of assistance residing in unserved or underserved 
areas with the highest concentrations of illiteracy and of low 
income individuals and families.
  [(e) The Director shall ensure an equitable distribution of 
volunteers under this section in accordance with the equitable 
distribution requirement of section 414 of this Act.
  [(f) The VISTA Literacy Corps shall consist of all volunteers 
serving under part A working on literacy projects and programs.
  [(g) In any fiscal year in which the services provided under 
part A are reduced, the services provided under this section 
shall be proportionately reduced.
  [(h)(1) Subject to paragraph (2), with respect to any 
individual providing volunteer services in the program under 
this section regarding literacy, the Director may, with the 
written consent of the individual, assign the individual to 
serve in the general program under this part regarding 
literacy.
  [(2) To the extent practicable and without undue delay, the 
Director shall ensure that a volunteer under this section is 
assigned to the vacancy created within the relevant literacy 
project or program established under this section.]

           *       *       *       *       *       *       *

                   Part B--University Year for VISTA

                          STATEMENT OF PURPOSE

  Sec. 111. (a) * * *
  (b) This part provides for the University Year for VISTA 
(UYV) program of full-time volunteer service by students 
enrolled in institutions of higher education. The purpose of 
the UYV program is to strengthen and supplement efforts to 
eliminate poverty and poverty-related human, social, and 
environmental problems by enabling students at cooperating 
institutions to perform meaningful and constructive volunteer 
service in connection with the satisfaction of course-work 
while attending such institutions. Volunteer service under this 
part is conducted in [agencies, institutions, and situations] 
agencies and institutions, including civic, community, and 
educational organizations, where the application of human 
talent and dedication may assist in the solution of poverty and 
poverty-related problems and secure and exploit opportunities 
for self-advancement by individuals experiencing such problems.

           *       *       *       *       *       *       *

                   Part C--Special Volunteer Programs

                          STATEMENT OF PURPOSE

  Sec. 121. This part provides for special emphasis and 
demonstration volunteer programs, together with appropriate 
powers and responsibilities designed to assist in the 
development and coordination of such programs. The purpose of 
this part is to strengthen and supplement efforts to meet a 
broad range of needs, particularly those related to poverty, by 
encouraging and enabling persons from all walks of life and 
from all age groups to perform meaningful and constructive 
volunteer service in [agencies, institutions, and situations] 
agencies and institutions, including civic, community, and 
educational organizations where the application of human talent 
and dedication may help to meet such needs. It is the further 
purpose of this part to provide technical and financial 
assistance to encourage voluntary organizations and volunteer 
efforts at the national, State, and local level.

           *       *       *       *       *       *       *

                       [LITERACY CHALLENGE GRANTS

  [Sec. 124. (a) The Director is authorized to award challenge 
grants to eligible public agencies and private organizations to 
pay the Federal share of the costs of establishing, operating 
or expanding community or employee literacy programs or 
projects that include the use of full-time or part-time 
volunteers as one method of addressing illiteracy.
  [(b) Each eligible organization desiring a grant under this 
section shall submit to the Corporation an application in such 
form and accompanied by such information as the Director may 
reasonably require. Each such application shall--
          [(1) describe the activities for which assistance is 
        sought,
          [(2) contain assurances that the eligible 
        organization will provide from non-Federal sources the 
        non-Federal share of the cost of the program or 
        project,
          [(3) provide assurances, satisfactory to the 
        Director, that the literacy project will be operated in 
        cooperation with other public and private agencies and 
        organizations interested in, and qualified to, combat 
        illiteracy in the community where the project is to be 
        conducted, and
          [(4) contain such other information and assurances as 
        the Director may reasonably require.
  [(c)(1)(A) The Federal share of the cost of a program or 
project authorized by this section administered by a public 
agency, a nonprofit organization other than an organization 
described in paragraph (2), or a private, for-profit 
organization shall not exceed--
          [(i) 80 percent in the first fiscal year;
          [(ii) 70 percent in the second fiscal year; and
          [(iii) 60 percent in the third fiscal year.
  [(B) The non-Federal share paid by a private, for-profit 
organization shall be in cash.
  [(2) The Federal share of the cost of a program or project 
administered by a nonprofit or community-based organization 
shall not exceed--
          [(A) 90 percent in the first fiscal year;
          [(B) 80 percent in the second fiscal year; and
          [(C) 70 percent in the third fiscal year.
  [(3) The non-Federal share provided by a public agency or a 
nonprofit or community-based organization may be provided in 
cash, or in kind, fairly evaluated, and may include the use of 
plant, equipment, and services.]

  TITLE II--[NATIONAL SENIOR VOLUNTEER CORPS] NATIONAL SENIOR SERVICE 
                                 CORPS

                         [STATEMENT OF PURPOSES

  [Sec. 200. It is the purpose of--
          [(1) this title to provide for National Senior 
        Volunteer Corps, comprised of the Retired and Senior 
        Volunteer Program, the foster grandparent program, and 
        the senior companion program, that empower older 
        individuals to contribute to their communities through 
        volunteer service, enhance the lives of the volunteers 
        and those whom they serve, and provide communities with 
        valuable services;
          [(2) part A, the Retired and Senior Volunteer 
        Program, to utilize the vast talents of older 
        individuals willing to share their experiences, 
        abilities, and skills in responding to a wide variety 
        of community needs;
          [(3) part B, the foster grandparent program, to 
        afford low-income older individuals an opportunity to 
        provide supportive, individualized services to children 
        with exceptional or special needs; and
          [(4) part C, the senior companion program, to afford 
        low-income older individuals the opportunity to provide 
        personal assistance and companionship to other older 
        individuals through volunteer service.]

SEC. 200. STATEMENT OF PURPOSE.

  It is the purpose of this title to provide--
          (1) opportunities for senior service to meet unmet 
        local, State, and national needs in the areas of 
        education, public safety, health and human needs, and 
        the environment;
          (2) for the National Senior Service Corps, comprised 
        of the Retired and Senior Volunteer Program, the Foster 
        Grandparent Program, and the Senior Companion Program, 
        and demonstration and other programs to empower older 
        individuals to contribute to their communities through 
        service, enhance the lives of those who serve and those 
        whom they serve, and provide communities with valuable 
        services;
          (3) opportunities for people 55 years of age or 
        older, through the Retired and Senior Volunteer 
        Program, to share their experiences, abilities, and 
        skills for the betterment of their communities and 
        themselves;
          (4) opportunities for people 55 years of age or 
        older, through the Foster Grandparents Program, to have 
        a positive impact on the lives of children in need;
          (5) opportunities for people 55 years of age or 
        older, through the Senior Companion Program, to provide 
        critical support services and companionship to adults 
        at risk of institutionalization and who are struggling 
        to maintain a dignified independent life; and
          (6) for research, training, demonstration, and other 
        program activities to increase and improve 
        opportunities for seniors to meet unmet needs, 
        including those related to emergency preparedness, 
        public safety, public health, and disaster relief, in 
        their communities.

              Part A--Retired and Senior Volunteer Program

          GRANTS AND CONTRACTS FOR VOLUNTEER SERVICE PROJECTS

  Sec. 201. (a) In order to help retired individuals and 
working older individuals to [avail themselves of opportunities 
for volunteer service in their community] share their 
experiences, abilities, and skills for the betterment of their 
communities and themselves, the Director is authorized to make 
grants to State agencies (established or designated pursuant to 
section 305(a)(1) of the Older Americans Act of 1965, as 
amended (42 U.S.C. 3025(a)(1))) or grants to or contracts with 
other public and nonprofit private agencies and organizations 
to pay part or all of the costs for the development or 
operation, or both, of volunteer service projects under this 
section, if the Director determines, in accordance with 
regulations the Director shall prescribe, that--
          (1) * * *
          (2) only individuals 55 years of age or older will be 
        enrolled[, and individuals 60 years of age or older 
        will be given priority for enrollment,] as volunteers 
        to provide services under this part (except for 
        administrative purposes), and such services will be 
        performed in the community where such individuals 
        reside or in nearby communities either (A) on publicly 
        owned and operated facilities or projects, or (B) on 
        local projects sponsored by private nonprofit 
        organizations (other than political parties), other 
        than projects involving the construction, operation, or 
        maintenance of so much of any facility used or to be 
        used for sectarian instruction or as a place for 
        religious worship;

           *       *       *       *       *       *       *

  [(c) The Director shall not award any grant or contract under 
this part for a project in any State to any agency or 
organization unless, if such State has a State agency 
established or designated pursuant to section 305(a)(1) of the 
Older Americans Act of 1965, as amended (42 U.S.C. 3025(a)(1)), 
such agency itself is the recipient of the award or such agency 
has been afforded at least forty-five days in which to review 
the project application and make recommendations thereon.]
  [(d)] (c) Notwithstanding any other provision of law, 
volunteer service under this part shall not be deemed 
employment for any purpose which the Director finds is not 
fully consistent with the provisions and in furtherance of the 
purpose of this part.

                   Part B--Foster Grandparent Program

          GRANTS AND CONTRACTS FOR VOLUNTEER SERVICE PROJECTS

  Sec. 211. (a) The Director is authorized to make grants to or 
contracts with public and nonprofit private agencies and 
organizations to pay part or all of the cost of development and 
operation of projects (including direct payments to individuals 
serving under this part) designed for the purpose of providing 
opportunities for [low-income persons aged sixty or over] low-
income and other persons aged 55 or over to provide supportive 
person-to-person services in health, education, welfare, and 
related settings to children having exceptional needs. Such 
services may include services by individuals serving as foster 
grandparents to children who are individuals with disabilities, 
who have chronic health conditions, who are receiving care in 
hospitals, who are residing in homes for dependent and 
neglected children, or who are receiving services provided by 
day care centers, schools, early intervention programs under 
part H of the Individuals with Disabilities Education Act (20 
U.S.C. 1471 et seq.), Head Start agencies under the Head Start 
Act, or any of a variety of other programs, establishments, and 
institutions providing services for children with special or 
exceptional needs. Individual foster grandparents may provide 
person-to-person services to one or more children, depending on 
the needs of the project and local site. The Director may 
approve assistance in excess of 90 per centum of the costs of 
the development and operation of such projects only if the 
Director determines, in accordance with regulations the 
Director shall prescribe establishing objective criteria, that 
such action is required in furtherance of the purpose of this 
section. Provision for such assistance shall be effective as of 
September 19, 1972. In the case of any project with respect to 
which, prior to such date, a grant or contract has been made 
under section 611(a) of the Older Americans Act of 1965, as 
amended (42 U.S.C. 3044(b) or with respect to any project under 
the Foster Grandparent program in effect prior to September 17, 
1969, contributions in cash or in kind from the Bureau of 
Indian Affairs, Departmentof the Interior, toward the cost of 
the project may be counted as part of the cost thereof which is met 
from non-Federal sources.
  (b)(1) Any public or private nonprofit agency or organization 
responsible for providing person-to-person services to a child 
in a project carried out under subsection (a) of this section 
[shall have the exclusive authority to determine, pursuant to 
the provisions of paragraph (2) of this subsection--] may 
determine--
          (A) which children may receive supportive person-to-
        person services under such project; [and]
          (B) the period of time during which such services 
        shall be continued in the case of each individual 
        child[.]; and
          (C) whether it is in the best interests of a child 
        receiving, and of a particular foster grandparent 
        providing, services in such a project, to continue such 
        relationship after the child reaches the age of 21, if 
        such child was receiving such services prior to 
        attaining the age of 21.
  [(2) In the event that such an agency or organization 
determines that it is in the best interests of a mentally 
retarded child receiving, and of a particular foster 
grandparent providing, services in such a project, such 
relationship may be continued after the child reaches the 
chronological age of 21: Provided, That such child was 
receiving such services prior to attaining the chronological 
age of 21. If the particular foster grandparent subject to the 
determination under this paragraph becomes unavailable to serve 
after such determination is made, the agency or organization 
may select another foster grandparent.]
  [(3)] (2) Any determination made by a public or nonprofit 
private agency or organization under [paragraphs (1) and (2)] 
paragraph (1) of this subsection shall be made through mutual 
agreement by all parties involved with respect to the provision 
of services to the child involved.
  (3) If an assignment of a foster grandparent is suspended or 
discontinued, the replacement of that foster grandparent shall 
be determined through the mutual agreement of all parties 
involved in the provision of services to the child.
  (d) The Director, in accordance with regulations the Director 
shall prescribe, may provide to [low-income persons serving as 
volunteers under this part, such allowances, stipends, and 
other support] low-income persons and persons eligible under 
subsection (h) serving as volunteers under this part, such 
allowances or stipends as the Director determines are necessary 
to carry out the purpose of this part. [Any stipend or 
allowance provided under this section shall not be less than 
$2.45 per hour on and after October 1, 1993, and shall be 
adjusted once prior to December 31, 1997, to account for 
inflation, as determined by the Director and rounded to the 
nearest five cents, except that (1) such stipend or allowance 
shall not be increased as a result of an amendment made to this 
sentence unless the funds appropriated for carrying out this 
part are sufficient to maintain for the fiscal year in question 
a number of participants to serve under this part at least 
equal to the number of such participants serving during the 
preceding fiscal year, and (2) in the event that sufficient 
appropriations for any fiscal year are not available to 
increase any such stipend or allowance provided to the minimum 
hourly rate specified in this sentence, the Director shall 
increase the stipend or allowance to such amount as 
appropriations for such year permit consistent with clause (1) 
of this exception. In establishing the amount of, and the 
effective date for, such adjustment, the Director, in 
consultation with the State Commissions on National and 
Community Service (as established under section 178 of the 
National and Community Service Act of 1990) and the heads of 
the State offices established under section 195 of such Act, 
shall consider the effect such adjustment will have on the 
ability of non-federally funded volunteer programs similar to 
the programs under this title to maintain their current level 
of volunteer hours.] Any stipend or allowance provided under 
this part shall not exceed 75 percent of the minimum wage under 
the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.), 
with the Federal share not to exceed $2.65 per hour, provided 
that the Director shall adjust the Federal share once prior to 
December 31, 2007, to account for inflation.
  (e) For purposes of this part, the terms ``low-income 
person'' and ``person of low income'' mean--
          (1) any person whose income is not more than [125] 
        200 per centum of the poverty line defined in section 
        673(2) of the Community Services Block Grant Act (42 
        U.S.C. 9902(2)) and adjusted by the Director in the 
        manner described in such section; and

           *       *       *       *       *       *       *

  [(f)(1)(A) Except as provided in subparagraphs (B) and (C), 
individuals who are not low-income persons may serve as 
volunteers under this part, in accordance with such regulations 
as the Director shall issue, if such individuals serve without 
receiving any allowance, stipend, or other financial support 
under this part except reimbursement for transportation, meals, 
and out-of-pocket expenses incident to serving under this part.
  [(B) The regulations issued by the Director to carry out this 
part (other than any regulations relating to allowances, 
stipends, and other financial support authorized by subsection 
(d) to be paid under this part to low-income persons) shall 
apply to all volunteers under this part, without regard to 
whether such volunteers are eligible to receive a stipend under 
subsection (d).
  [(C) Individuals who are not low-income persons may not serve 
as volunteers under this part in any community in which there 
are volunteers serving under part A of this title unless such 
individuals have been referred previously for possible 
placement as volunteers under part A and such placement did not 
occur.
  [(2)(A) Except as provided in subparagraph (B), each 
recipient of a grant or contract to carry out a project under 
this part shall give equal treatment to all volunteers who 
participate in such project, without regard to whether such 
volunteers are eligible to receive a stipend under subsection 
(d).
  [(B) An individual who is not a low-income person may not 
become a volunteer under this part if allowing such individual 
to become a volunteer under this part would prevent a low-
income individual from becoming a volunteer under this part or 
would displace a low-income person from being such a volunteer.
  [(3) The Director may not take into consideration or require 
as a condition of receiving a grant or contract to carry out a 
project under this part, any applicant for such grant or 
contract--
          [(A) to accept or recruit individuals who are not 
        low-income persons to serve as volunteers under this 
        part; or
          [(B) to solicit locally generated contributions, in 
        cash or in kind, to support such individuals.
The Director may not coerce any applicant for, or recipient of, 
such grant or contract to engage in conduct described in 
subparagraph (A) or (B).
  [(4) Funds appropriated to carry out this part may not be 
used to pay any cost, including any administrative cost, 
incurred in connection with volunteers under this part who do 
not receive a stipend under subsection (d). Such cost incurred 
with respect to a volunteer may be paid with--
          [(A) funds received by the Director as unrestricted 
        gifts;
          [(B) funds received by the Director as gifts to pay 
        such cost;
          [(C) funds contributed by such volunteer; or
          [(D) locally generated contributions in excess of the 
        amount required to be contributed under subsection (a), 
        in the discretion of the recipient of a grant or 
        contract under such subsection.]
  (f)(1) Subject to the restrictions in paragraph (3), 
individuals who are not low-income persons may serve as 
volunteers under this part. The regulations issued by the 
Director to carry out this part (other than regulations 
relating to stipends or allowances to individuals authorized by 
subsections (d) and (h)) shall apply to all volunteers under 
this part, without regard to whether such volunteers are 
eligible to receive a stipend or allowance under subsection (d) 
or (h).
  (2) Except as provided under paragraph (1), each recipient of 
a grant or contract to carry out a project under this part 
shall give equal treatment to all volunteers who participate in 
such project, without regard to whether such volunteers are 
eligible to receive a stipend or allowance under subsection (d) 
or (h).
  (3) An individual who is not a low-income person may not 
become a volunteer under this part if allowing that individual 
to become a volunteer under this part would prevent a low-
income person from becoming a volunteer under this part or 
would displace a low-income person from being a volunteer under 
this part.
  (g) The Director may also provide a stipend or allowance in 
an amount not to exceed 10 percent more than the amount 
established under subsection (d) to leaders who, on the basis 
of past experience as volunteers, special skills, and 
demonstrated leadership abilities, may coordinate activities, 
including training, and otherwise support the service of 
volunteers under this part.
  (h) The Director may provide payments under subsection (d) 
for up to 15 percent of volunteers serving in a project under 
this part for a fiscal year who do not meet the definition of 
``low-income'' under subsection (e), upon certification by the 
recipient of a grant or contract that it is unable to 
effectively recruit and place low-income volunteers in the 
number of placements approved for the project.

                    Part C--Senior Companion Program

          GRANTS AND CONTRACTS FOR VOLUNTEER SERVICE PROJECTS

  Sec. 213. (a) The Director is authorized to make grants to or 
contracts with public and nonprofit private agencies and 
organizations to pay part or all of the cost of development and 
operation of projects (including direct payments to individuals 
serving under this part in the same manner as provided in 
section 211(a)) designed for the purpose of providing 
opportunities for [low-income persons aged 60 or over] low-
income and other persons aged 55 or over to serve as ``senior 
companions'' to persons with exceptional needs. Senior 
companions may provide services designed to help older persons 
requiring long-term care, including services to persons 
receiving home health care, nursing care, home-delivered meals 
or other nutritional services; services designed to help 
persons deinstitutionalized from mental hospitals, nursing 
homes, and other institutions; and services designed to assist 
persons having developmental disabilities and other special 
needs for companionship.
  (b) [Subsections (d), (e), and (f)] Subsections (d) through 
(h) of section 211, and such other provisions of part B as the 
Director determines to be necessary, shall apply to this part, 
except that for purposes of this part any reference in such 
subsections and such provisions to part B shall be deemed to be 
a reference to this part.
  (c)(1) * * *
  (2)(A) * * *
  [(B) Senior companion volunteer trainers recruited under 
subparagraph (A) of this paragraph shall not be paid stipends.]
  (B) Senior companion volunteer trainers and leaders may 
receive a stipend or allowance consistent with subsection (g) 
authorized under subsection (d) of section 211, as approved by 
the Director.

           *       *       *       *       *       *       *

                      Part D--General Provisions

           *       *       *       *       *       *       *

                      MINORITY GROUP PARTICIPATION

  Sec. 223. The Director shall take appropriate steps to insure 
that special efforts are made to recruit, select, and assign 
qualified individuals [sixty years and older] 55 years and 
older from minority groups to serve as volunteers under this 
title.

 USE OF LOCALLY GENERATED CONTRIBUTIONS IN NATIONAL SENIOR [VOLUNTEER] 
                             SERVICE CORPS

  Sec. 224. Whenever locally generated contributions made to 
National Senior Volunteer Corps projects under this title are 
in excess of the amount required by the Director, the Director 
may not restrict the manner in which contributions are expended 
if expenditures from locally generated contributions are not 
inconsistent with the provisions of this Act.

                   PROGRAMS OF NATIONAL SIGNIFICANCE

  Sec. 225. (a)(1) [With not less than one-third of the funds 
made available] With funds made available under subsection (d) 
in each fiscal year, the Director shall make grants under the 
programs authorized in parts A, B, and C to support programs 
that address national problems of local concern.

           *       *       *       *       *       *       *

  (b) The Director shall make grants under subsection (a) to 
support one or more of the following programs to address 
problems that concern the Nation:
          (1) * * *

           *       *       *       *       *       *       *

          (19) Programs that strengthen community efforts in 
        support of homeland security.

           *       *       *       *       *       *       *

SEC. 228. PARTICIPATION REGARDLESS OF INCOME LEVEL.

  (a) General.--Participation in programs and activities under 
this title shall be open to seniors regardless of income level.
  (b) Participation of Low-Income Individuals Encouraged.--
Notwithstanding subsection (a), the Corporation shall take 
appropriate steps, including conducting outreach at the 
national level and requiring measures at the local level, to 
ensure the inclusion of low-income persons in programs and 
activities authorized under this title.

SEC. 229. CONTINUITY OF SERVICE.

  To ensure the continued service of individuals in communities 
served by Retired and Senior Volunteer programs, Foster 
Grandparent programs, and Senior Companion programs prior to 
enactment of this section, in making grants under this title 
the Corporation shall take actions it considers necessary to 
maintain service assignments for such seniors and to ensure 
continuity of service for communities.

SEC. 229A. TRAINING AND RESEARCH.

  From funds appropriated each fiscal year to carry out 
subtitle II, the Corporation may reserve up to $10,000,000 to 
support research and training designed to improve the 
effectiveness of programs supported under subtitle II.

           *       *       *       *       *       *       *

               TITLE IV--ADMINISTRATION AND COORDINATION

           *       *       *       *       *       *       *

                          SPECIAL LIMITATIONS

  Sec. 404. (a) The Director shall prescribe regulations and 
shall carry out the provisions of this Act so as to assure that 
the service of volunteers assigned, referred, or serving 
pursuant to grants, contracts, or agreements made under this 
Act is limited to activities which would not otherwise be 
performed by employed workers and which will not supplant the 
hiring of or result in the [displacement of employed workers] 
displacement of employed workers or volunteers (other than 
participants under the national service laws), or impair 
existing contracts for service.

           *       *       *       *       *       *       *

   [NOTICE AND HEARING PROCEDURES FOR SUSPENSION AND TERMINATION OF 
                          FINANCIAL ASSISTANCE

  [Sec. 412. (a) The Director is authorized, in accordance with 
the provisions of this section, to suspend further payments or 
to terminate payments under any contract or grant providing 
assistance under this Act, whenever the Director determines 
there is a material failure to comply with the applicable terms 
and conditions of any such grant or contract. The Director 
shall prescribe procedures to insure that--
          [(1) assistance under this 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 this Act may 
        not be denied unless the recipient has been given (A) 
        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 (B) 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 or contract award, the 
        recipient shall be afforded an opportunity for an 
        informal hearing before an impartial hearing officer, 
        who has been agreed to by the recipient and the Agency; 
        and
          [(4) assistance under this 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 at locations 
convenient to the recipient agency.]

           *       *       *       *       *       *       *

                              [EVALUATION

  [Sec. 416. (a) The Director shall measure and evaluate the 
impact of all programs authorized by this Act (including the 
VISTA Literacy Corps which shall be evaluated as a separate 
program at least once every 3 years), their effectiveness in 
achieving stated goals in general, and in relation to their 
cost, their impact on related programs, and their structure and 
mechanisms for delivery of services. Each program shall be 
evaluated at least once every three years. Evaluations shall be 
conducted by persons not immediately involved in the 
administration of the program or project evaluated. Such 
evaluation shall also measure and evaluate compliance with the 
equitable distribution requirement of section 414 of this Act.
  [(b) The Director shall develop and publish general standards 
for evaluation of program and project effectiveness in 
achieving the objectives of this Act. Reports submitted 
pursuant to section 407shall describe the actions taken as a 
result of evaluations carried out under this section.
  [(c) In carrying out evaluations under this title, the 
Director shall whenever possible, arrange to obtain the 
opinions of program and project participants about the 
strengths and weaknesses of such programs and projects.
  [(d) The Director shall publish summaries of the results of 
evaluations of program and project impact and effectiveness no 
later than sixty days after the completion thereof.
  [(e) The Director shall take the necessary action to assure 
that all studies, evaluations, proposals, and data produced or 
developed with Federal funds shall become the property of the 
United States.
  [(f) Not later than December 31, 1988, the Director shall--
          [(1) evaluate the impact of Corporation programs 
        carried out under title II that relate to services that 
        assist families caring for frail and disabled adult 
        family members and shall include in such evaluation 
        information on--
                  [(A) the range and extent of service needs 
                of, and the services provided to, family 
                caregivers assisted by volunteers;
                  [(B) the characteristics of volunteers and 
                the skills, training, and supervision necessary 
                to provide various types of volunteer 
                assistance to family caregivers;
                  [(C) administrative costs, including 
                recruitment, training, and supervision costs, 
                associated with volunteer assistance to family 
                caregivers; and
                  [(D) such other issues as may be relevant to 
                provide services to assist family caregivers;
          [(2) evaluate the impact that volunteers who 
        participate in programs under parts B and C of title II 
        without receiving a stipend have on such programs and 
        shall include in such evaluation--
                  [(A) information on administrative costs 
                associated with such volunteers;
                  [(B) a comparison of the quality of services 
                provided by such volunteers and the quality of 
                services provided by volunteers who receive a 
                stipend under such parts, including the rate of 
                absenteeism and turnover; and
                  [(C) a review of the effect that 
                participation by volunteers who do not receive 
                such stipend have on the administration of such 
                programs; and
          [(3) submit to the Committee on Education and Labor 
        of the House of Representatives and the Committee on 
        Labor and Human Resources of the Senate a report 
        summarizing in detail the results of the evaluations 
        made under paragraphs (1) and (2).
  [(g) The Director is authorized to use such sums as are 
required, but not to exceed 1 per centum of the funds 
appropriated under this Act, to conduct program and project 
evaluations (directly, or by grants or contracts) as required 
by this Act. In the case of allotments from such an 
appropriation, the amount available for such allotments (and 
the amount deemed appropriate therefor) shall be reduced 
accordingly.]

           *       *       *       *       *       *       *

                              DEFINITIONS

  Sec. 421. For the purposes of this Act--
          (1) * * *

           *       *       *       *       *       *       *

          (13) the term ``national senior volunteer'' means a 
        volunteer in the [National Senior Volunteer Corps] 
        National Senior Service Corps;
          (14) the term ``[National Senior Volunteer Corps] 
        National Senior Service Corps'' means the programs 
        established under [parts A, B, C, and E of] title II;

           *       *       *       *       *       *       *

SEC. 425. PROTECTION AGAINST IMPROPER USE.

  Whoever falsely--
          (1) advertises or represents; or
          (2) publishes or displays any sign, symbol, or 
        advertisement, reasonably calculated to convey the 
        impression,
that an entity is affiliated with, funded by, or operating 
under the authority of the Corporation, VISTA, or any of the 
programs of the [National Senior Volunteer Corps] National 
Senior Service Corps may be enjoined under an action filed by 
the Attorney General, on a complaint by the Director.

SEC. 426. INCOME VERIFICATION.

  Each organization that receives assistance under this Act may 
verify the income eligibility of volunteers based on a 
confidential declaration of income and with no requirements for 
verification.

                TITLE V--AUTHORIZATION OF APPROPRIATIONS

SEC. 501. NATIONAL VOLUNTEER ANTIPOVERTY PROGRAMS.

  (a) Authorizations.--
          (1) Volunteers in service to america.--There are 
        authorized to be appropriated to carry out parts A and 
        B of title I[, excluding section 109, $56,000,000 for 
        fiscal year 1994, and such sums as may be necessary for 
        each of the fiscal years 1995 and 1996.] $90,000,000 
        for fiscal year 2003 and such sums as may be necessary 
        for each of the fiscal years 2004 through 2007.
          [(2) Literacy activities.--There are authorized to be 
        appropriated to carry out section 109, $5,600,000 for 
        fiscal year 1994, and such sums as may be necessary for 
        each of the fiscal years 1995 and 1996.]
          [(3)] (2) Special volunteer programs.--There are 
        authorized to be appropriated to carry out part C of 
        title I[, excluding section 125, such sums as may be 
        necessary for each of the fiscal years 1994 through 
        1996.] $5,000,000 for fiscal year 2003 and such sums as 
        may be necessary for each of the fiscal years 2004 
        through 2007.
          [(4) Literacy challenge grants.--There are authorized 
        to be appropriated to carry out section 125, such sums 
        as may be necessary for each of the fiscal years 1994 
        through 1996.]
          [(5)] (3) Specification of budget function.--The 
        authorizations of appropriations contained in this 
        subsectionshall be considered to be a component of 
budget function 500 as used by the Office of Management and Budget to 
cover education, training, employment, and social services, and, as 
such, shall be considered to be related to the programs of the 
Departments of Labor, Health and Human Services, and Education for 
budgetary purposes.

           *       *       *       *       *       *       *

  [(e) Volunteer Service Requirement.--
          [(1) Volunteer service years.--Of the amounts 
        appropriated under this section for parts A, B, and C 
        of title I, including section 124, there shall first be 
        available for part A of title I, including sections 
        104(e) and 109, an amount not less than the amount 
        necessary to provide 3,700 volunteer service years in 
        fiscal year 1994, 4,000 volunteer service years in 
        fiscal year 1995, and 4,500 volunteer service years in 
        fiscal year 1996.
          [(2) Plan.--If the Director determines that funds 
        appropriated to carry out part A, B, or C of title I 
        are insufficient to provide for the years of volunteer 
        service required by paragraph (1), the Director shall 
        submit a plan to the relevant authorizing and 
        appropriations committees of Congress that will detail 
        what is necessary to fully meet this requirement.]

[SEC. 502. NATIONAL SENIOR VOLUNTEER CORPS.

  [(a) Retired and Senior Volunteer Program.--There are 
authorized to be appropriated to carry out part A of title II, 
$45,000,000 for fiscal year 1994, and such sums as may be 
necessary for each of the fiscal years 1995 and 1996.
  [(b) Foster Grandparent Program.--There are authorized to be 
appropriated to carry out part B of title II, $85,000,000 for 
fiscal year 1994, and such sums as may be necessary for each of 
the fiscal years 1995 and 1996.
  [(c) Senior Companion Program.--There are authorized to be 
appropriated to carry out part C of title II, $40,000,000 for 
fiscal year 1994, and such sums as may be necessary for each of 
the fiscal years 1995 and 1996.
  [(d) Demonstration Programs.--There are authorized to be 
appropriated to carry out part E of title II, such sums as may 
be necessary for each of the fiscal years 1994 through 1996.

[SEC. 504. ADMINISTRATION AND COORDINATION.

  [(a) In General.--For each of the fiscal years 1994 through 
1996, there are authorized to be appropriated for the 
administration of this Act as provided for in title IV, 18 
percent of the total amount appropriated under sections 501 and 
502 with respect to such year.
  [(b) Evaluation.--For each of the fiscal years 1994 through 
1996, the Director is authorized to expend not less than 2\1/2\ 
percent, and not more than 5 percent, of the amount 
appropriated under subsection (a), for the purposes prescribed 
in section 416.]

SEC. 502. NATIONAL SENIOR SERVICE CORPS.

  (a) Retired and Senior Volunteer Program.--There are 
authorized to be appropriated to carry out part A of title II, 
$58,884,000 for fiscal year 2003 and such sums as may be 
necessary for each of the fiscal years 2004 and 2007.
  (b) Foster Grandparent Program.--There are authorized to be 
appropriated to carry out part B of title II, $110,000,000 for 
fiscal year 2003 and such sums as may be necessary for each of 
the fiscal years 2004 and 2007.
  (c) Senior Companion Program.--There are authorized to be 
appropriated to carry out part C of title II, $46,563,000 for 
fiscal year 2003 and such sums as may be necessary for each of 
the fiscal years 2004 and 2007.
  (d) Demonstration Programs.--There are authorized to be 
appropriated to carry out part E of title II, $400,000 for 
fiscal year 2003 and such sums as may be necessary for each of 
the fiscal years 2004 through 2007.

SEC. 504. ADMINISTRATION AND COORDINATION.

  There are authorized to be appropriated for the 
administration of this Act $33,568,000 for fiscal year 2003 and 
such sums as may be necessary for each of fiscal years 2004 
through 2007.

           *       *       *       *       *       *       *

                            ADDITIONAL VIEWS

    The events of September 11th catalyzed millions of 
Americans' interest in serving their communities and their 
country. National nonprofits are seeing a surge in volunteerism 
and AmeriCorps applications have more than doubled. We endorse 
President George W. Bush's call for legislation ``to ensure the 
Federal Government does its part to support the commitment of 
Americans to our communities and our Nation.''
    President Bush proposed a $290 million increase for 
national and community service programs, including a expansion 
of the AmeriCorps program. President William J. Clinton 
championed the establishment of AmeriCorps in the National and 
Community Service Trust Act of 1993, which he signed into law 
on September 21, 1993. This legislation helped provide 
Americans of all ages and backgrounds with opportunities to 
service their nation. Now, more than 2 million Americans serve 
their communities each year through these programs.
    We applaud the majority for joining us in supporting 
legislation to reauthorize AmeriCorps and expand service 
opportunities to all Americans, whether they are 
schoolchildren, young adults, or seniors. We are optimistic 
that this bipartisan agreement will extend to obtaining the 
President's goals on funding for these programs.
Resources for 100,000 new volunteers
    We are disappointed that the authorization levels in the 
Citizen Service Act of 2002, as passed by the Committee, fall 
short of the funding levels in President Bush's Fiscal Year 
2003 budget request. The President's requested funding is 
necessary to achieve his goal of 25,000 new AmeriCorps members 
next year and leverage an additional 75,000 volunteers.
    The Administration's Principles for Reform of the 
Corporation for National Service states, ``The Administration 
calls on the Congress to authorize a $290 million increase from 
last year's budget--the full funding requested in the 
President's Fiscal Year 2003 budget--support these initiatives.
    However, we appreciate Chairman John Boehner's pledge to 
work with us to obtain these increases in conference. We look 
forward to working with him to meet this goal.
Education awards
    To create greater educational opportunity for our youth who 
serve our country, AmeriCorps helps its members pay for college 
or repay their student loans. We are pleased that H.R. 4854 
increases the Education Award by 11 percent--the first increase 
in the history of the AmeriCorps program--to $5,250. Even this 
increase, however, fails to restore the value of the Education 
Award to its inflation-adjusted 1993 level.
    Congress should go further and repeal the tax on this 
Education Award, although we recognize that this change is 
outside the jurisdiction of this Committee. We believe that the 
final legislation should either repeal this tax or provide for 
an additional increase in the Education Award.
Bipartisan improvements to H.R. 4854
    The Subcommittee on Select Education adopted a bipartisan 
amendment offered by Mr. Roemer to preserve the VISTA program. 
VISTA is a critical partner for thousands of grass-roots 
community organizations fighting poverty in the trenches. The 
Administration's proposal would have germinated the federal 
government's administration of VISTA. The Roemer amendment 
maintains federal help for local VISTA programs with providing 
living allowances, health insurance, child care, and other 
services to VISTA members.
    H.R. 4854 also rejects the Administration's proposal to 
overhaul and weaken the national service laws' grievance 
protections for members and displacement protections for 
workers who may be replaced by members. It sets a feasible cap 
or per-participant expenses of $16,000, with adjustments for 
inflation and waivers up to $20,000. And it concludes 
safeguards on the Administration's requests for greater 
flexibility to allow members to choose their own sites of 
service and to promote project sustainability.
Civil rights protections
    We are also please that H.R. 4854 maintains the national 
service laws' protections against discrimination in hiring with 
federal funds. However, we disagree with the characterization 
of the legislative history of this provision in the Committee 
Views.
    We disagree with the majority's characterization of the 
civil rights and religious liberty protections contained in the 
statute. By maintaining current law in Section 175 of the 
National Community Service Act and Section 417 of the Domestic 
Volunteer Service Act, the Committee is abiding by the 
Constitution with regard to funding of faith-based 
organizations and affirms a core civil rights principle that 
government funds, collected from all taxpayers, should not be 
used to support discrimination. In addition, it is important to 
note that these very provisions have not hampered the 
participation of faith-based organizations in many national 
service programs.
    Indeed, many view these provisions as a model for the 
participation of faith-based organizations in government 
programs. In January 2002, the Working Group on Human Needs and 
Faith-Based and Community Initiatives issued 29 recommendations 
for the faith-based initiative (Finding Common Ground: 29 
Recommendations of the Working Group on Human Needs and Faith-
Based and Community Initiatives). The Working Group was 
convened to bring together various representatives interested 
in the role of the faith-based organizations in the provision 
of community and social services. National service efforts were 
addressed in recommendation 11 of the report, in which the 
Working Group wrote:

          Congress and the Executive Branch should expand 
        opportunities for service in VISTA and other AmeriCorps 
        programs, as currently practiced, in order to supplement 
        the staff and significantly increase the capacity of 
        faith-based and community-based organizations to meet 
        human needs, when government funding goes to the support 
        of the national service participants. * * *
          VISTA's 35-year record of service with faith-based 
        and community organizations has enjoyed broad 
        acceptance, and has not been challenged on 
        constitutional or legal grounds. The Corporation for 
        National and Community Service in its new AmeriCorps 
        programs is continuing that tradition. Any individual 
        may apply to serve through these programs, and 
        religious beliefs or practices may not be considered in 
        the selection or placement of the volunteers. While 
        serving, they may not be assigned to participate in 
        worship, religious instruction, or proselytization. Any 
        non-profit organization working to meet national needs 
        within the Corporation's priorities may apply to 
        participate. By design, the programs provide little or 
        no cash grants for administrative costs. Some 
        organizations receive modest administrative grants for 
        partial support of staff positions; our agreement does 
        not extend to such grants.
          Many, though not all, faith-based organizations have 
        found that they can fulfill their mission consistent 
        with these policies, utilizing VISTA volunteers and 
        AmeriCorps members to significantly expand their work 
        to address human needs.

    The majority argues that the employment discrimination 
protections that exist in current law ``predate more recent 
Acts designed to invite faith-based organizations into federal 
social service efforts.'' Quoting the Congressional Research 
Service, it writes,

          These more recent Acts recognize that ``[i]n its more 
        recent decisions[,] the [Supreme] Court appears to have 
        abandoned the presumption that some religious 
        institutions * * * are so pervasively sectarian that 
        they are constitutionally ineligible to participate in 
        direct public aid programs'' (brackets in the 
        original).

    Charitable choice, the legislative provision at issue, has 
been used to expand the role of faith-based organizations in 
various federally funded activities. What the majority fails to 
note is that until this Congress, charitable choice received 
little scrutiny even though, according to the Congressional 
Research Service report cited by the majority, ``[it] appears 
to push the envelope of existing judicial interpretations of 
the establishment clause of the First Amendment concerning 
direct public funding of religious organizations, even as 
revised by the Supreme Court's recent decisions on the 
subject.'' (See Charitable Choice: Constitutional Issues and 
Developments Through the 106th Congress (December 27, 2000) at 
34.)
    The Committee's views regarding the impact of the Religious 
Freedom Restoration Act (42 U.S.C. 2000bb et seq.) (RFRA) to 
the underlying statute are flatly wrong and easily contradicted 
by a long line of Supreme Court case law regarding what 
constitutes a ``substantial burden'' in free exercise cases. 
The threshold showing required for application of RFRA to a 
federal statute is that the government may not ``substantially 
burden a person's exercise of religion.'' However, the Supreme 
Court has been clear that, in the context of free exercise, 
requirements attached to a government benefit cannot constitute 
a ``substantial burden'' on religion. The Court has 
consistently held that government action that has the effect of 
making religious exercise more expensive, or that fails to 
facilitate the exercise of religion, does not impose a 
``substantial burden.'' This is because the Free Exercise 
clause is written in terms of what the government cannot do to 
the individual, not in terms of what the individual can exact 
from the government. See Lyng v. Northwest Indian Cemetery 
Protective Ass'n, 485 U.S. 439, 451 (1988); See also Braunfeld 
v. Brown, 366 U.S. 599 (1961); Brusca v. Missouri ex rel. State 
Board of Education, 332 F. Supp. 275 (E.D. Mo. 1971), aff 'd, 
405 U.S. 1050 (1972); Luetkemeyer v. Kaufmann, 364 F. Supp. 376 
(W.D. Mo. 1973), aff 'd, 419 U.S. 888 (1974).
    Additionally, even if the threshold ``substantial burden'' 
test were overcome, a plaintiff would have to advance the 
unfortunate argument that preventing discrimination is not a 
compelling state interest. In City of Richmond v. J.A. Croson 
Co., 488 U.S. 469 (1989), the Court ruled that ``it is beyond 
dispute that any public entity, state or federal, has a 
compelling interest in assuring that public dollars, drawn from 
the tax contributions of all citizens, do not serve to finance 
the evil of private prejudice.''
    We strongly support the right of religious institutions to 
preserve the integrity of their own religious character when it 
comes to religious activities. We disagree that it is healthy 
for American society, or in conformance with basic American 
principles of fairness and equal treatment under the law, for 
the Federal Government to provide funds for secular purposes to 
any organization, which would then use these funds in a 
discriminatory fashion on religious grounds. In fact, in a poll 
conducted in 2001 by the Pew Research Center and the Pew Forum 
on Religion and Public Life on President Bush's faith-based 
initiative, 78 percent of those polled shared this view.
    The national service laws are a model demonstrating that a 
prohibition on religious employment discrimination is fully 
compatible with federal assistance to faith-based charities. 
Faith-based charities have taken advantage of these federally 
funded programs to advance their charitable work in a manner, 
which the President finds worthy of expansion. We have heard no 
suggestion that the faith-based charities involved with 
AmeriCorps and the Senior Corps have seen their own faith 
communities erode.
    We are pleased that this reauthorization of the national 
service programs does not roll back civil rights protections 
that have been a part of this statute for over a decade. We 
firmly believe that the provisions in this statute allow for 
substantial participation by faith-based communities without 
undermining basic constitutional and civil rights principles.

                                   George Miller.
                                   Rush Holt.
                                   Ruben Hinojosa.
                                   David Wu.
                                   Bobby Scott.
                                   Hilda L. Solis.
                                   Major R. Owens.
                                   Lynn Woolsey.
                                   Carolyn McCarthy.
                                   Lynn N. Rivers.
                                   Betty McCollum.
                                   Dennis J. Kucinich.
                                   Loretta Sanchez.
                                   Dale E. Kildee.
                                   Robert E. Andrews.
                                   Ron Kind.
                                   Susan Davis.
                                   Tim Roemer.
                                   Donald M. Payne.
                                   Harold Ford.
                                   Patsy T. Mink.
                                   John F. Tierney.

                                  
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