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[Senate Report 111-163]
[From the U.S. Government Publishing Office]

111th Congress                                         Calendar No. 317
2d  Session                      SENATE                          Report
                                                                111-163
_______________________________________________________________________

                                     

 
        CONGRESSIONAL AWARD PROGRAM REAUTHORIZATION ACT OF 2009

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                S. 2865

TO REAUTHORIZE THE CONGRESSIONAL AWARD ACT (2 U.S.C. 801 ET SEQ.), AND 
                           FOR OTHER PURPOSES

                 March 15, 2010.--Ordered to be printed
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

               JOSEPH I. LIEBERMAN, Connecticut, Chairman
CARL LEVIN, Michigan                 SUSAN M. COLLINS, Maine
DANIEL K. AKAKA, Hawaii              TOM COBURN, Oklahoma
THOMAS R. CARPER, Delaware           SCOTT BROWN, Massachusetts
MARK L. PRYOR, Arkansas              JOHN McCAIN, Arizona
MARY L. LANDRIEU, Louisiana          GEORGE V. VOINOVICH, Ohio
CLAIRE McCASKILL, Missouri           JOHN ENSIGN, Nevada
JON TESTER, Montana                  LINDSEY GRAHAM, South Carolina
ROLAND W. BURRIS, Illinois
EDWARD E. KAUFMAN, Delaware

                  Michael L. Alexander, Staff Director
                     Kevin J. Landy, Chief Counsel
                 Nicole M. Martinez, Research Assistant
     Brandon L. Milhorn, Minority Staff Director and Chief Counsel
                    John K. Grant, Minority Counsel
                  Trina Driessnack Tyrer, Chief Clerk
                                                       Calendar No. 317
111th Congress
                                 SENATE
                                                                 Report
 2d Session                                                     111-163

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

        CONGRESSIONAL AWARD PROGRAM REAUTHORIZATION ACT OF 2009

                                _______
                                

                 March 15, 2010.--Ordered to be printed

                                _______
                                

Mr. Lieberman, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                         [To accompany S. 2865]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 2865) to 
reauthorize the Congressional Award Act (2 U.S.C. 801 et seq.), 
and for other purposes, having considered the same, reports 
favorably thereon without amendment and recommends that the 
bill do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background.......................................................2
III. Legislative History..............................................3
 IV. Section-by-Section Analysis......................................3
  V. Estimated Cost of Legislation....................................4
 VI. Evaluation of Regulatory Impact..................................4
VII. Changes in Existing Law..........................................5

                         I. Purpose and Summary

    S. 2865 reauthorizes the Congressional Award Program (``the 
Program'') through October 1, 2013. Designed to promote 
initiative, achievement, and excellence among the youth of 
America, the Program arranges for medals to be awarded to young 
people who have satisfied specified standards of achievement. 
Members of Congress sit on the Board that administers the 
program and participate in the presentation of awards.

                             II. Background

    The Congressional Award Act (Public Law 96-114), initially 
sponsored by Senator Malcolm Wallop (R-WY) and Representative 
James J. Howard (D-NJ), was enacted on November 16, 1979. Under 
the Congressional Award Program established by the Act, young 
people between the ages of 14 and 23 earn awards by completing 
hours of effort in each of four areas of achievement--volunteer 
public service, personal development, physical fitness, and 
expedition/exploration. The Award is non-competitive, and 
participants, with the guidance of adult advisors, establish 
their own goals and work to achieve them. Depending on the 
number of hours they complete, participants earn Bronze, 
Silver, and Gold certificates or Bronze, Silver, and Gold 
medals. Members of the House and Senate recognize their 
constituents who earn Bronze and Silver medals at in-state 
ceremonies, and Gold-medal winners are recognized at an annual 
ceremony in the Capitol presided over by House and Senate 
leadership. In fiscal year 2009, 2922 participants were 
recognized with certificates, and 1640 received medals, 
including 267 who earned gold medals.
    A 25-member Board administers the Congressional Award 
Program. Twenty-four of the members are appointed by 
Congressional leadership--six by each of the Majority Leader of 
the Senate, the Minority Leader of the Senate, the Speaker of 
the House of Representatives, and the Minority Leader of the 
House of Representatives. The Director of the Board, appointed 
by a majority vote of the Board, is the principal executive of 
the Program and sits as a non-voting member of the Board. By 
statute, four of the Board members must be Members of Congress. 
At present, Senator Max Baucus, Senator Johnny Isakson, 
Representative Gus Bilirakis, and Representative Sheila Jackson 
Lee are the Members of Congress appointed to the Board. 
Pursuant to the Act, the Board incorporated a private, 
nonprofit, tax-exempt organization (qualified under section 
501(c)(3) of the Internal Revenue Code), called the 
Congressional Award Foundation. Financial sponsors of the 
Program include business corporations, charitable foundations, 
labor unions, and individuals. The Foundation also receives a 
small amount of in-kind services from the federal government. 
As the patron of the Congressional Award program, the U.S. 
Congress provides office space in a House Office Building and 
an annual audit by the Government Accountability Office (GAO). 
The award medals are designed and struck by the U.S. Mint.\1\
---------------------------------------------------------------------------
    \1\In the cost estimate prepared by the Congressional Budget Office 
(CBO) for S. 2685, CBO estimated that the Board's use of House Office 
Building space and services costs less than $500,000 a year, and the 
U.S. Mint's production of Congressional Award medals costs less than 
$500,000 a year. These costs are under the threshold below which CBO 
does not report more precise estimates. Estimates provided to the 
Committee by the U.S. Mint indicate that its costs are under $202,000 
annually.
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    The Act has been reauthorized several times since Public 
Law 96-114 first established the Board for a 6-year period. 
Public Law 99-161, the Congressional Award Amendments of 1985 
reauthorized the Board for an additional three years. Public 
Law 100-674, the Congressional Award Act Amendments of 1988, 
reauthorized the Act for an additional 2 years, contingent upon 
the Board complying with newly established reporting 
requirements. Public Law 101-525, the Congressional Award 
Amendments of 1990, extended the Act for an additional 2-year 
period, until October 1, 1992. Public Law 102-457, the 
Congressional Award Act Amendments of 1992, extended the Act 
for a 3-year period, and Public Law 104-208 extended the Act 
for a 4-year period. Public Law 106-63 extended the Act for 5 
years, until October 1, 2004. Public Law 109-43 extended the 
Act for four years, until October 1, 2009.
    The Congressional Award Program has grown substantially in 
recent years, with the number of participants increasing from 
approximately 20,000 in 2005 to over 27,000 at in 2009. There 
are also more than 2,000 adult mentors involved in the program. 
By statute, GAO audits the Foundation's financial statements 
annually and has issued generally favorable reports. The 
Committee believes that the Congressional Award Program 
performs a valuable service, at minimal cost to the taxpayer, 
encouraging initiative, achievement, public service, and 
personal development in the Nation's youth, as well as 
providing an opportunity for service for the adult volunteers. 
The Committee therefore supports and recommends reauthorization 
of the Program.

                        III. Legislative History

    On December 10, 2009, Senator Lieberman and Senator Collins 
introduced S. 2865, which was referred to the Committee on 
Homeland Security and Governmental Affairs. The Committee 
considered the bill on December 16, 2009 and ordered the bill 
reported by voice vote without amendment. Members present for 
the vote on the bill were Senators Lieberman, Akaka, Carper, 
Pryor, McCaskill, Tester, Burris, Kirk, and Collins.

                    IV. Section-by-Section Analysis

    Section 1. This section designates the short title of the 
bill as the ``Congressional Award Program Reauthorization Act 
of 2009''.
    Section 2. This section clarifies the terms of members of 
the Board by specifying that new terms of board members shall 
begin on October 1. It also requires that the terms of board 
members be staggered such that half of the positions expire in 
each even numbered year. It also states that if the program is 
found to not be in compliance with requirements in the Act 
regarding financial operations, as determined by the 
Comptroller General, the Board shall instruct the Director to 
take such actions as may be necessary to correct such 
deficiencies, and shall remove and replace the Director if such 
deficiencies are not promptly corrected. This section permits 
the Board to apply for Federal grants, and requires that 
Statewide Councils comply with certain financial management 
methods in order to ensure proper accounting of funds. Section 
2 also amends the Congressional Award Act to reauthorize the 
program until October 1, 2013. The Section also makes other 
technical changes to the structure of the Board. The 
Congressional Award Program Reauthorization Act of 2009 is 
retroactive to the termination date established by Public Law 
109-43, September 30, 2009.

                    V. Estimated Cost of Legislation

                                                  January 13, 2010.
Hon. Joseph I. Lieberman,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 2865, the 
Congressional Award Program Reauthorization Act of 2009.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

S. 2865--Congressional Award Program Reauthorization Act of 2009

    S. 2865 would reauthorize the Congressional Award Act 
through fiscal year 2012 (the act expired on October 1, 2009). 
The legislation also would make technical changes to the award 
program that would affect the terms of board members and the 
program's financial operations, including the ability to apply 
for and accept federal grants. The bill would authorize the 
creation of a foundation to raise money for the program. The 
Congressional Award Program recognizes excellence in public 
service and personal development among young people. The 
program is overseen by the Congressional Award Board, a 
nonprofit organization that receives no direct federal funding.
    Under S. 2865, the Congressional Award Board would continue 
to receive in-kind services from the federal government, 
including office space in the Ford House Office Building and an 
annual audit by the Government Accountability Office. CBO 
estimates that the board's continued use of such services would 
cost less than $500,000 a year in appropriated funds.
    In addition, those recognized by the Congressional Award 
Program are awarded medals produced by the U.S. Mint. Based on 
information from the board and the Mint, CBO estimates that 
reauthorizing the program would increase direct spending from 
the U.S. Mint Public Enterprise Fund by less than $500,000 
annually.
    S. 2865 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    The CBO staff contact for this estimate is Matthew 
Pickford. The estimate was approved by Theresa Gullo, Deputy 
Assistant Director for Budget Analysis.

                  VI. Evaluation of Regulatory Impact

    Pursuant to the requirements of paragraph 11(b) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill. The enactment of 
this legislation will not have a significant regulatory impact.

                      VII. Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, 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 and existing law, in which no 
change is proposed, is shown in roman):

                           UNITED STATES CODE

                         TITLE 2, THE CONGRESS

                CHAPTER 19--CONGRESSIONAL AWARD PROGRAM

Subchapter I--Congressional Award Program

           *       *       *       *       *       *       *

SEC. 802. BOARD ORGANIZATION.

    (a) * * *
    (b) Implementation Requirements for Board.--In carrying out 
the Congressional Award Program, the Board shall--
          (1) establish the standards of achievement required 
        for young people to qualify as recipients of the medals 
        and establish such procedures as may be required to 
        verify that individuals satisfy such qualifications;
          (2) designate the recipients of the medals in 
        accordance with the standards established under 
        paragraph (1) of this subsection;
          (3) delineate such roles as the Board considers to be 
        appropriate for the Director and Regional Directors in 
        administering the Congressional Award, and set forth in 
        the bylaws of the Board the duties, salaries, and 
        benefits of the Director and Regional Directors;
          (4) raise funds for the operation of the program; and
          (5) take such other actions as may be appropriate for 
        the administration of the Congressional Award Program.
No salary established by the Board [under paragraph (3)] shall 
exceed $75,000 per annum, except that for calendar years after 
1986, such limit shall be increased in proportion to increases 
in the Consumer Price Index.
    (c) Presentation of Awards.--The Board shall arrange for 
the presentation of the awards to the recipients and shall 
provide for participation by Members of Congress in such 
presentation, when appropriate. To the extent possible, 
recipients shall be provided with opportunities to exchange 
information and views with Members of Congress [during] in 
connection with the presentation of the awards.

SEC. 803. BOARD ORGANIZATION.

    (a) * * *
    [(b) Terms of Appointed Members; Reappointment.--
          [(1) Appointed members of the Board shall continue to 
        serve at the pleasure of the officer by whom they are 
        appointed, and (unless reappointed under paragraph (3)) 
        shall serve for a term of 4 years.
          [(2) For the purpose of adjusting the terms of Board 
        members to allow for staggered appointments, the 
        following distribution of Board terms shall take effect 
        at the first meeting of the Board occurring after 
        November 6, 1990:
                  [(A) Those members who have served 10 years 
                or more, as of the date of such meeting, shall 
                have an appointment expiring on a date 2 years 
                from October 1, 1990.
                  [(B) Those members who have served for 6 
                months or less, as of the date of such meeting, 
                shall have an appointment expiring on a date 6 
                years from October 11, 1990.
                  [(C) All other members shall apportion the 
                remaining Board positions between equal numbers 
                of 2 and 4 year terms (providing that if there 
                are an unequal number of remaining members, 
                there shall be a predominance of 4 year terms), 
                such apportionment to be made by lot.
          [(3)(A) Subject to the limitations in subparagraphs 
        (B) and (C) of this paragraph, members of the Board may 
        be reappointed, provided that no member may serve more 
        than 2 consecutive terms.
          [(B) Members of the Board covered under paragraph 
        (2)(A) of this subsection shall not be eligible for 
        reappointment to the Board. Members of the Board 
        covered under subparagraphs (B) and (C) of paragraph 
        (2) of this subsection may be reappointed for 1 
        additional consecutive 4 year term.
          [(C) Members of the Board who serve as chairman of 
        the Board shall not have the time during which they 
        serve as chairman used in the computation of their 
        period of service for purposes of this paragraph and 
        paragraph (2).]
    (b) Terms of Appointed Members; Reappointment.--
          (1) Appointed members of the Board shall continue to 
        serve at the pleasure of the officer by whom they are 
        appointed, and (unless reappointed under paragraph (2)) 
        shall serve for a term of 4 years.
          (2)(A) Subject to the limitations in subparagraph 
        (B), members of the Board may be reappointed, except 
        that no member may serve more than 2 full consecutive 
        terms. Members may be reappointed to 2 full consecutive 
        terms after being appointed to fill a vacancy on the 
        Board.
          (B) Members of the Board shall not be subject to the 
        limitation on reappointment in subparagraph (A) during 
        their period of service as Chairman of the Board and 
        may be reappointed to an additional full term after 
        termination of such Chairmanship.
          (3)(A) Notwithstanding paragraph (1) or (2), the term 
        of each member of the Board shall begin on October 1 of 
        the even numbered year which would otherwise apply with 
        one-half of the Board positions having terms which 
        begin in each even numbered year.
          (B) Subparagraph (A) shall apply to appointments made 
        to the Board on or after the date of enactment of the 
        Congressional Award Program Reauthorization Act of 
        2009.

           *       *       *       *       *       *       *

SEC. 804. ADMINISTRATION.

    (a) * * *

           *       *       *       *       *       *       *

    (c) Requirements Regarding Financial Operations; 
Noncompliance With Requirements.--
          (1) The Director shall, in consultation with the 
        Board, ensure that appropriate procedures for fiscal 
        control and fund accounting are established for the 
        financial operations of the Congressional Award 
        Program, and that such operations are administered by 
        personnel with expertise in accounting and financial 
        management. Such personnel may be retained under 
        contract. In carrying out this paragraph, the Director 
        shall ensure that the liabilities of the Board do not[, 
        for any calendar year,] in any fiscal year exceed the 
        assets of the Board.
          [(2)(A) The Comptroller General of the United States 
        shall determine, for calendar years 1993, 1994, 1995, 
        1996, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 
        2005, 2006, 2007, 2008, and 2009, whether the Director 
        has substantially complied with paragraph (1). The 
        findings made by the Comptroller General under the 
        preceding sentence shall be included in the first 
        report submitted under section 807(b) 1 of this title 
        after December 31, 1994.
          [(B) If the Director fails to substantially comply 
        with paragraph (1), the Board shall take such actions 
        as may be necessary to prepare, pursuant to section 808 
        1 of this title, for the orderly cessation of the 
        activities of the Board.]
          (2)(A) The Comptroller General of the United States 
        shall determine for each fiscal year whether the 
        Director has substantially complied with paragraph (1). 
        The findings made by the Comptroller General under the 
        preceding sentence shall be included in the reports 
        submitted under section 107(b).
          (B) If the Director fails to substantially comply 
        with paragraph (1), the Board shall instruct the 
        Director to take such actions as may be necessary to 
        correct such deficiencies, and shall remove and replace 
        the Director if such deficiencies are not promptly 
        corrected.

           *       *       *       *       *       *       *

SEC. 806. POWERS, FUNCTIONS, AND LIMITATIONS.

    (a) General Operating and Expenditure Authority.--Subject 
to such limitations as may be provided for under this section, 
the Board may take such actions and make such expenditures as 
may be necessary to carry out the Congressional Award Program, 
except that--
          [(1) the Board shall carry out its functions and make 
        expenditures with only such resources as are available 
        to the Board from sources other than the Federal 
        Government; and]
          (1) the Board shall carry out its functions and make 
        expenditures with--
                  (A) such resources as are available to the 
                Board from sources other than the Federal 
                Government; and
                  (B) funds awarded in any grant program 
                administered by a Federal agency in accordance 
                with the law establishing that grant program.
          (2) the Board shall not take any actions which would 
        disqualify the Board from treatment (for tax purposes) 
        as an organization described in section 501(c)(3) of 
        title 26.
    (b) * * *
    (c) Statewide Congressional Award Councils; Establishment, 
Purposes, Duties, etc.--
          (1) * * *

           *       *       *       *       *       *       *

          [(4) Each Statewide Council established pursuant to 
        this section is authorized to receive public monetary 
        and in-kind contributions, which may be made available 
        to local boards to supplement or defray operating 
        expenses. The Board shall adopt appropriate financial 
        management methods in order to ensure the proper 
        accounting of these funds.]
          (4) Each Statewide Council established under this 
        section may receive contributions, and use such 
        contributions for the purposes of the Program. The 
        Board shall adopt appropriate financial management 
        methods in order to ensure the proper accounting of 
        these funds. Each Statewide Council shall comply with 
        subsections (a), (d), (e), and (h) governing the Board.
    (d) Contracting Authority.--The Board may enter into and 
perform such contracts as may be appropriate to carry out its 
business, but the Board may not enter into any contract which 
would obligate the Board to expend an amount greater than the 
amount available to the Board for the purpose of such contract 
during the fiscal year in which the expenditure is to be made.
    (e) Obtaining and Acceptance of Non-Federal Funds and 
Resources; Indirect Resources.--
          (1) Subject to the provisions of paragraph (2), the 
        Board may seek and accept funds and other resources to 
        carry out its activities. The Board may not accept any 
        funds or other resources which are--
                  (A) donated with a restriction on their use 
                unless such restriction merely provides that 
                such funds or other resources be used in 
                furtherance of the Congressional Award Program 
                or a specific regional or local program or for 
                scholarships; and
                  (B) donated subject to the condition that the 
                identity of the donor of the funds or resources 
                shall remain anonymous. The Board may permit 
                donors to use the name of the Board or the name 
                ``Congressional Award Program'' in advertising.

           *       *       *       *       *       *       *

    [(i) Establishment, Functions, etc., of Private Nonprofit 
Corporation; Articles of Incorporation of Corporation; 
Compensation, etc., for Director, Officer, or Employee of 
Corporation.--
          [(1) The Board shall provide for the establishment of 
        a private nonprofit corporation for the sole purpose of 
        assisting the Board to carry out the Congressional 
        Award Program, and shall delegate to the corporation 
        such duties as it considers appropriate.
          [(2) The articles of incorporation of the corporation 
        established under this subsection shall provide that--
                  [(A) the members of the Board of Directors of 
                the corporation shall be the members of the 
                Board, and the Director of the corporation 
                shall be the Director of the Board; and
                  [(B) the extent of the authority of the 
                corporation shall be the same as that of the 
                Board.
          [(3) No director, officer, or employee of any 
        corporation established under this subsection may 
        receive compensation, travel expenses, or benefits from 
        both the corporation and the Board.]
    (i)(1) The Board shall provide for the incorporation of a 
nonprofit corporation to be known as the Congressional Award 
Foundation (together with any subsidiary nonprofit corporations 
determined desirable by the Board, collectively referred to in 
this title as the 'Corporation') for the sole purpose of 
assisting the Board to carry out the Congressional Award 
Program, and shall delegate to the Corporation such duties as 
it considers appropriate, including the employment of 
personnel, expenditure of funds, and the incurrence of 
financial or other contractual obligations.
    (2) The articles of incorporation of the Congressional 
Award Foundation shall provide that--
          (A) the members of the Board of Directors of the 
        Foundation shall be the members of the Board, with up 
        to 24 additional voting members appointed by the Board, 
        and the Director who shall serve as a nonvoting member; 
        and
          (B) the extent of the authority of the Foundation 
        shall be the same as that of the Board.
    (3) No director, officer, or employee of any corporation 
established under this subsection may receive compensation, 
travel expenses, or benefits from both the Corporation and the 
Board.

           *       *       *       *       *       *       *

SEC. 808. TERMINATION.

    The Board shall terminate [October 1, 2009] October 1, 
2013.

                                  
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