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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1193 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 1193

 To establish a program of voluntary national service for young people 
                          and senior citizens.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 3, 1993

Mrs. Kennelly introduced the following bill; which was referred jointly 
  to the Committees on Armed Services, Education and Labor, Veterans' 
              Affairs, Ways and Means, and Foreign Affairs

_______________________________________________________________________

                                 A BILL

 
 To establish a program of voluntary national service for young people 
                          and senior citizens.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Voluntary Service and 
Educational Opportunity Act of 1993''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Purposes.
Sec. 4. Definitions.
              TITLE I--ESTABLISHMENT OF THE CITIZENS CORPS

Sec. 101. Establishment of the Citizens Corps.
Sec. 102. Individuals eligible to serve in the Citizens Corps.
Sec. 103. Terms of service.
Sec. 104. Types of national and community service.
Sec. 105. Application to serve in the Citizens Corps.
             TITLE II--ADMINISTRATION OF THE CITIZENS CORPS

 Subtitle A--Administration of the Civilian Service and Senior Service

Sec. 201. Administration of the Civilian Service and Senior Service.
Sec. 202. Duties of the Commission.
Sec. 203. Eligibility for general grants.
Sec. 204. Allocation of funds.
Sec. 205. Reports.
Subtitle B--Provision of National Service Positions for Members of the 
                  Civilian Service and Senior Service

Sec. 221. National service plans and volunteer service areas.
Sec. 222. Establishment of national service councils.
Sec. 223. Duties of national service councils.
Sec. 224. Volunteer recruitment and placement plan.
Sec. 225. Review and approval of plan.
Sec. 226. Service sponsors.
   Subtitle C--Deferred Placement of Members of the Civilian Service

Sec. 231. Deferred Placement Program.
Sec. 232. Eligibility to participate in Deferred Placement Program.
Sec. 233. Acceptance.
Sec. 234. Limitation on the use of assistance and reduction of 
                            subsequent assistance.
Sec. 235. Placement.
Sec. 236. Breach of contract.
Subtitle D--Administration of the Citizens Corps With Regard to Service 
                          in the Armed Forces

Sec. 241. Administration of the Citizens Corps with regard to service 
                            in the Armed Forces.
Sec. 242. Deferred enlistment.
Sec. 243. Reports.
      TITLE III--BENEFITS FOR PARTICIPATING IN THE CITIZENS CORPS

Sec. 301. Stipend and support services for members of the Civilian 
                            Service and Senior Service.
Sec. 302. Compensation for members of the Citizens Corps serving in the 
                            Armed Forces.
Sec. 303. Educational and housing benefits for members of the Civilian 
                            Service of the Citizens Corps.
Sec. 304. Educational and housing benefits for members of the Citizens 
                            Corps serving in the Armed Forces.
Sec. 305. Provision of educational benefits.
Sec. 306. Provision of housing benefits.
Sec. 307. Time limitation on the use of assistance.
Sec. 308. Exclusion of assistance from gross income.
Sec. 309. Recoupment of assistance.
Sec. 310. Reports.
                   TITLE IV--MISCELLANEOUS PROVISIONS

Sec. 401. Educational and housing benefits for participants in the 
                            Peace Corps and VISTA.
Sec. 402. Authorization of appropriations.
Sec. 403. Effective date.

SEC. 3. PURPOSES.

    The purposes of this Act are--
            (1) to renew the ethic of civic obligation in the United 
        States and spread  the  responsibilities  of citizenship more 
        equitably;
            (2) to expand opportunities for young people in the United 
        States to--
                    (A) pursue educational, vocational, and 
                professional objectives after secondary school; and
                    (B) purchase affordable housing;
            (3) to mobilize young people and senior Americans to deal 
        with pressing social problems in the United States, including 
        health, education, literacy, child care, hunger, housing, and 
        homelessness;
            (4) to give senior Americans the opportunity to use their 
        special skills and experience to--
                    (A) provide national service; and
                    (B) assist the Commission on National and Community 
                Service and national service councils in administering 
                national service programs;
            (5) to strengthen national defense by--
                    (A) encouraging more young people to volunteer for 
                service in the active and reserve components of the 
                Armed Forces;
                    (B) making the composition of the Armed Forces more 
                representative of the country at large; and
                    (C) assisting the Armed Forces in meeting their 
                personnel goals; and
            (6) to give young people the experience, self-discipline, 
        and self-confidence they need to overcome barriers to 
        opportunity.

SEC. 4. DEFINITIONS.

    For purposes of this Act:
            (1) The term ``active duty'' has the meaning given to such 
        term in section 101(22) of title 10, United States Code.
            (2) The term ``area'' means a volunteer service area.
            (3) The term ``Armed Forces'' has the meaning given to such 
        term in section 101(4) of title 10, United States Code.
            (4) The term ``Citizens Corps'' means the national service 
        program established under section 101.
            (5) The term ``Commission'' means the Commission on 
        National and Community Service established under section 190 of 
        the National and Community Service Act of 1990 (42 U.S.C. 
        12651).
            (6) The term ``community service'' means service of the 
        type described in section 104(a) and such other services 
        essential and necessary to the community as the Corporation, by 
        rule, may prescribe.
            (7) The term ``council'' means a national service council.
            (8) The term ``Deferred Placement Program'' means the 
        deferred placement program for members of the Civilian Service 
        established in subtitle C of title II.
            (9) The term ``educational institution'' means a vocational 
        school (including a technical school) or institution of higher 
        learning.
            (10) The  term  ``Governor''  means  the  chief executive 
        officer of a State.
            (11) The term ``Individual Ready Reserve'' means that 
        portion of the Ready Reserve not in a Selected Reserve.
            (12) The term ``institution of higher learning'' has the 
        meaning given to such term in section 1652(f) of title 38, 
        United States Code.
            (13) The term ``local government'' means a general purpose 
        political subdivision of a State which has the power to levy 
        taxes and spend funds, as well as general corporate and police 
        powers.
            (14) The term ``nonprofit organization'' means an 
        organization--
                    (A) described in section 501(c) of the Internal 
                Revenue Code of 1986 (26 U.S.C. 501(c)); and
                    (B) exempt from taxation under section 501(a) of 
                such Code (26 U.S.C. 501(a)).
            (15) The term ``program of education or training'' means 
        any curriculum or any combination of unit courses or subjects 
        pursued at an educational institution or training establishment 
        which is generally accepted as necessary to fulfill 
        requirements for the attainment of a predetermined and 
        identified educational, professional, or vocational objective. 
        Such term also means any curriculum of unit courses or subject 
        pursued at an educational institution or training establishment 
        which fulfills requirements for the attainment of more than one 
        predetermined and identified educational, professional, or 
        vocational objective if the objectives pursued are generally 
        recognized as being reasonably related to a single career 
        field.
            (16) The term ``Ready Reserve'' means the Ready Reserve 
        described in section 268(a) of title 10, United States Code.
            (17) The term ``reserve component'' has the meaning given 
        to such term in 101(24) of title 37, United States Code.
            (18) The term ``school dropout'' has the meaning 
        established for such term by the Secretary of Education under 
        section 6201(a) of the Elementary and Secondary Education Act 
        of 1964 (20 U.S.C. 3271(a)).
            (19) The term ``Secretary concerned'' has the meaning given 
        to such term in section 101(8) of title 10, United States Code.
            (20) The term ``senior'' means an individual who is age 65 
        or over and willing to work full- or part-time in national 
        service.
            (21) The term ``Selected Reserve'' means the Selected 
        Reserve described in section 268(b) of title 10, United States 
        Code.
            (22) The term ``State'' means any of the several States, 
        the District of Columbia, American Samoa, the Federated States 
        of Micronesia, Guam, the Republic of the Marshall Islands, the 
        Commonwealth of the Northern Mariana Islands; the Commonwealth  
        of  Puerto  Rico,  Palau,  and  the  Virgin Islands.
            (23) The term ``training establishment'' has the meaning 
        given to such term in section 1652(e) of title 38, United 
        States Code.
            (24) The term ``vocational school'' has the meaning given 
        to such term in section 435(c) of the Higher Education Act of 
        1965 (20 U.S.C. 1085(c)).

              TITLE I--ESTABLISHMENT OF THE CITIZENS CORPS

SEC. 101. ESTABLISHMENT OF THE CITIZENS CORPS.

    There is hereby established a Citizens Corps which shall provide 
the following national service options:
            (1) Civilian Service.
            (2) Service in the Armed Forces.
            (3) Senior Service.

SEC. 102. INDIVIDUALS ELIGIBLE TO SERVE IN THE CITIZENS CORPS.

    (a) Civilian Service.--
            (1) Eligibility.--An individual may serve in the Civilian 
        Service of the Citizens Corps if such individual--
                    (A) is age 17 or over;
                    (B) has received a high school diploma or its 
                equivalent or is a school dropout; and
                    (C) is a citizen of the United States or lawfully 
                admitted for permanent residence.
            (2) Special rule for school dropouts.--An individual who is 
        a school dropout may serve in the Civilian Service of the 
        Citizens Corps only if the individual enters into an agreement 
        with a national service council to pursue a course of study, 
        approved by the appropriate State agency, designed to result in 
        the individual earning the equivalent of a high school  diploma 
         during  the  term  of  service  of  the individual.
    (b) Service in the Armed Forces.--Subject to the then existing 
personnel requirements of the Armed Forces, an individual shall be 
eligible to enlist for service in the Armed Forces as a member of the 
Citizens Corps if such individual--
            (1) has received a high school diploma or its equivalent;
            (2) satisfies the applicable requirements for enlistment in 
        the Armed Forces specified in chapter 31 of title 10, United 
        States Code; and
            (3) satisfies such other eligibility criteria established 
        by the Secretary of Defense by rule.
    (c) Senior Service.--An individual may serve in the Senior Service 
of the Citizens Corps if such individual--
            (1) is a senior; and
            (2) meets the eligibility criteria for service in the 
        Senior Service established by the Commission.

SEC. 103. TERMS OF SERVICE.

    (a) Civilian Service.--
            (1) One-year term.--An individual serving in the Civilian 
        Service of the Citizens Corps shall agree to perform full-time 
        national service in such service for a one-year term.
            (2) Extension.--A member of the Civilian Service of the 
        Citizens Corps serving a one-year term of service may request 
        the extension of such term for an additional year. The 
        Commission shall issue rules specifying the procedure for 
        making and considering such a request.
    (b) Service in the Armed Forces.--An individual enlisting for 
service in the Armed Forces as a member of the Citizens Corps shall 
select one of  the  following service obligations in the Armed Forces:
            (1) Two years of active duty in the Armed Forces, two years 
        in the Selected Reserve of a reserve component, and four years 
        in the Individual Ready Reserve.
            (2) Eight  years  in  the  Selected  Reserve  of  a reserve 
        component.
    (c) Senior Service.--An Individual may serve in the Senior Service 
of the Citizens Corps--
            (1) for such period of time as allowed by the Commission; 
        and
            (2) for either full- or part-time service.

SEC. 104. TYPES OF NATIONAL AND COMMUNITY SERVICE.

    (a) Civilian Service and Senior Service.--An individual serving in 
the Civilian Service or Senior Service of the Citizens Corps may 
perform national service to meet the unmet service needs of a State, 
local government or other community. Such national service may include 
the following types of service:
            (1) Educational service, such as literacy programs, Head 
        Start, tutorial assistance, and service in schools, libraries, 
        and adult education centers.
            (2) Human service, such as--
                    (A) service in hospitals, hospices, clinics, 
                community health centers, homes for the elderly, and 
                child-care centers; and
                    (B) service in programs to assist the elderly, 
                poor, and homeless, including programs to build, 
                restore, and maintain housing for the poor and 
                homeless.
            (3) Conservation service, such as service in programs to 
        conserve, maintain, and restore natural resources in the urban 
        and rural environment, provide recreational opportunities, and 
        encourage community betterment or beautification.
            (4) Public Safety service in support of the criminal 
        justice system, including police, courts, prisons, and border 
        patrol.
            (5) Service in existing national programs, such as referral 
        and placement in the Peace Corps and VISTA.
    (b) Service in the Armed Forces.--The Secretary of Defense shall 
designate by rule appropriate national service positions for members of 
the Citizens Corps serving in the Armed Forces.

SEC. 105. APPLICATION TO SERVE IN THE CITIZENS CORPS.

    (a) Civilian Service and Senior Service.--
            (1) Application.--To serve in the Civilian or Senior 
        Service of the Citizens Corps, an individual shall submit an 
        application to a national service council established under 
        section 222 for a volunteer service area in the State in which 
        the applicant is a resident. The application shall be in such 
        form and containing such information as the Commission shall 
        require by rule.
            (2) Residency requirements.--For purposes of paragraph (1), 
        an individual shall be considered a resident of a State if such 
        individual has resided in such State for the majority of the 1-
        year period immediately preceding the date of such application. 
        The Corporation on an individual basis may waive this residency 
        requirement.
            (3) Placement.--Upon the receipt of an application, the 
        national service council may place the applicant in a national 
        service position in the area taking into consideration the 
        preference and skills of the applicant and the needs of the 
        area. If the area does not have a national service position 
        available for the applicant, or the council determines (after 
        consultation with the applicant) that the applicant is better 
        qualified for a position outside of the area, the council may 
        refer the applicant for placement to another national service 
        council or a Federal, State, or local government agency 
        accepting members of the Citizens Corps.
            (4) Members treated as volunteers.--For purposes of Federal 
        laws authorizing a Federal agency to accept the services of a 
        volunteer, an applicant placed with an agency described in 
        paragraph (3) shall be considered to be a volunteer.
    (b) Service in the Armed Forces.--The Secretary of Defense shall 
establish a system to enlist individuals for service in the Armed 
Forces as members of the Citizens Corps.

             TITLE II--ADMINISTRATION OF THE CITIZENS CORPS

 Subtitle A--Administration of the Civilian Service and Senior Service

SEC. 201. ADMINISTRATION OF THE CIVILIAN SERVICE AND SENIOR SERVICE.

    The Commission on National and Community Service shall be 
responsible for administering the Civilian Service and Senior Service 
of the Citizens Corps.

SEC. 202. DUTIES OF THE COMMISSION.

    (a) Establishment of Policy and Oversight Responsibilities.--The 
Corporation shall by rule--
            (1) establish the types and amounts of allowances and 
        support authorized for  members  of  the Civilian and Senior 
        Services under section 301;
            (2) specify the types of national service activities 
        appropriate for members of the Civilian and Senior Services;
            (3) establish a procedure to monitor the provision of 
        financial assistance under title III to assure that--
                    (A) graduates of the Citizens Corps faithfully 
                completed their terms of service  before receiving such 
                assistance; and
                    (B) members of the Citizens Corps receiving such 
                assistance during their terms of service faithfully 
                perform national service;
            (4) establish a procedure for examining the effect that 
        national service under this Act has on the availability and 
        terms of employment of employees in the  volunteer  service  
        area  where  such  service  is performed; and
            (5) establish the rates of pay, eligibility criteria, and 
        terms of service  for  members  of  the  Senior Service.
    (b) General Grants.--Pursuant to the allocation formulas specified 
in section 204, the Commission shall make grants to States to assist 
such States--
            (1) in paying stipends and wages under section 301;
            (2) in providing and administering national service 
        opportunities in each State for members of the Civilian and 
        Senior Services; and
            (3) in making grants to national service councils in each 
        State to carry out their duties under this Act.
    (c) Supplemental Grants.--
            (1) Authority to provide.--The Commission may make grants 
        during a fiscal year--
                    (A) to a State which the Commission determines has 
                an unusual increase in the number of members of the 
                Civilian and Senior Services (excluding members serving 
                with Federal agencies) in such State for such fiscal 
                year; and
                    (B) to a Federal agency to assist such agency in 
                accepting or placing members of the Civilian and Senior 
                Services for such fiscal year.
            (2) Eligibility.--To be eligible for a grant under 
        paragraph (1), a Federal agency or State shall submit to the 
        Commission an application--
                    (A) in such form and at such time as the Commission 
                may require by rule;
                    (B) containing, in the case of an application 
                submitted by a State, the assurances specified in 
                section 203(c); and
                    (C) containing such other information as the 
                Commission may require by rule.
    (d) Other Duties.--
            (1) Information.--The Commission shall serve as a source 
        for information on national service opportunities in the United 
        States.
            (2) Placement assistance.--The Commission shall assist a 
        State in placing applicants outside of such State if the State 
        is unable to place the applicant in a position in the State and 
        shall assist Federal agencies in acquiring participants for 
        national service positions in the Federal Government.
            (3) Investigations.--The Commission shall receive and 
        investigate claims of abuses in the placement of participants 
        or the administration of national  service  opportunities  by  
        a  State,  national service council, or service provider.
            (4) Academic Credit.--The Commission shall encourage 
        institutions of higher education to confer appropriate academic 
        credit to members of the Citizens Corps who successfully 
        complete their term of service.
    (e) Records.--The Commission shall keep accurate and complete 
records of its activities and transactions. Such records shall be made 
available for audit and examination by the Comptroller General of the 
United States  or  duly  authorized  representatives  of  the  
Comptroller General.

SEC. 203. ELIGIBILITY FOR GENERAL GRANTS.

    (a) Application Required.--To be eligible for a grant under section 
202(b), a State shall submit to the Commission an application 
describing--
            (1) each volunteer service area in such State;
            (2) the method by which members of the Civilian and Senior 
        Services will be placed in national service positions in the 
        State;
            (3) the anticipated number of such members during such 
        term;
            (4) the training and support services that will be provided 
        such members; and
            (5) the method by which service sponsors will be selected 
        and the requirements imposed on such sponsors.
    (b) Copies of Materials.--A State shall include in an application 
submitted under subsection (a) copies of all volunteer recruitment and 
placement plans prepared for the State for the period covered by the 
application.
    (c) Assurances.--An application submitted under subsection (a) 
shall contain assurances by the State that for the period covered by 
the application--
            (1) the State will use non-Federal funds to pay not less 
        than 25 percent of the cost (including the cost of stipends, 
        wages, and allowances provided by the State under section 301) 
        of providing and administering national service positions in 
        the State for members of the Civilian and Senior Services 
        (other than members placed with Federal agencies); and
            (2) the State will maintain State expenditures for 
        community service programs operated by the State on the 
        effective date of this Act at a level equal to not less than 
        the average level of such expenditures maintained by the State 
        for the two-fiscal-year period immediately preceding the 
        effective date of this Act.
    (d) Time and Form.--An application under subsection (a) shall be in 
such form and shall be submitted at such time as the Commission may 
require and shall contain such other information as the Commission 
considers to be appropriate.
    (e) Exception to Matching Funds Requirement.--A State may offset 
against the matching funds requirement specified in subsection (c)(1) 
not more than 50 percent of the administrative costs incurred by the 
State in administering community service programs for young people 
operated by the State on the effective date of this Act.
    (f) Waiver of Requirement To Maintain Expenditures.--The Commission 
may, upon the request of a State, waive the requirement specified in 
subsection (c)(2) that the State maintain expenditures for community 
service programs if the Commission determines that extraordinary 
economic conditions in the State justify the waiver.

SEC. 204. ALLOCATION OF FUNDS.

    (a) Transitional Allocations.--For each fiscal year during the 
five-year period beginning on the effective date of this Act, the 
Commission shall make a grant to an eligible State in an amount that 
bears the same ratio to the sums appropriated for grants under section 
202(b) for such fiscal year as the anticipated average number of 
members in the Civilian and Senior Services (as determined by the 
Commission and excluding anticipated members serving with Federal 
agencies) in such State for such fiscal year bears to the anticipated 
average number of such members in all States for such fiscal year.
    (b) Subsequent Allocations.--For each fiscal year beginning after 
the end of the five-year period referred to in subsection (a), the 
Commission shall make a grant to an eligible State in an amount that 
bears the same ratio to the sums appropriated for grants under section 
202(b) for such fiscal year as the average number of members in the 
Civilian and Senior Services (excluding members serving with Federal 
agencies) in such State for the preceding fiscal year bears to the 
average number of such members in all States for the preceding fiscal 
year.

SEC. 205. REPORTS.

    (a) Required.--On or before May 15 of each calendar year, the 
Commission shall submit to the President a report on the operation of 
the Civilian Service and the Senior Service of the Citizens Corps and 
the activities of the Commission during the preceding fiscal year. The 
President shall  transmit  a  copy  of  the  report  to  the Congress.
    (b) Content of Report.--
            (1) In general.--Each report shall include a comprehensive 
        and detailed description of the operations, activities, 
        financial condition, and accomplishments of the Commission 
        under this Act during the fiscal year covered  by  such  report 
         and  such recommendations as the Commission considers 
        appropriate.
            (2) Special requirements for initial reports.--In the first 
        five reports submitted under subsection (a), the Commission 
        shall specify--
                    (A) the anticipated number of national service 
                positions that will be available for members of the 
                Civilian Service and Senior Service of the Citizens 
                Corps in the fiscal year beginning in the calendar year 
                in which such report is submitted; and
                    (B) the anticipated cost of operating the Civilian 
                Service and Senior Service  for  such fiscal year.

Subtitle B--Provision of National Service Positions for Members of the 
                  Civilian Service and Senior Service

SEC. 221. NATIONAL SERVICE PLANS AND VOLUNTEER SERVICE AREAS.

    (a) National Service Plan.--The Governor of each State shall 
prepare a national service plan for the State, which shall specify 
priorities in the State for providing national service opportunities 
for members of the Civilian and Senior Services of the Citizens Corps.
    (b) Volunteer Service Areas.--Pursuant to the plan prepared under 
subsection (a), the Governor shall designate volunteer service areas 
for the State, each of which--
            (1) is comprised of the State or one or more jurisdictions 
        of units of general local government;
            (2) will promote effective provision of national services; 
        and
            (3) is  consistent  with  other  designated  areas in which 
        related services are  provided  under  other Federal or State 
        programs.
    (c) Consultation.--Before preparing the national service plan or 
designating (or redesignating) a volunteer service area, the Governor 
shall consult with--
            (1) appropriate State and local government officials;
            (2) representatives of community service organizations, 
        educational institutions, business organizations, and organized 
        labor; and
            (3) other affected persons or organizations in the area.
    (d) Redesignation.--
            (1) Two year delay.--Effective after the end of the two-
        year period beginning on the date the Governor first designates 
        volunteer service areas under subsection (b), the Governor may 
        redesignate such areas in accordance with such subsection.
            (2) Special rule.--Notwithstanding paragraph (1), the 
        Governor shall consider making such a redesignation at the 
        request of the Commission.

SEC. 222. ESTABLISHMENT OF NATIONAL SERVICE COUNCILS.

    (a) Composition of Local Councils.--There shall be a national 
service council for each volunteer service area established under 
section 221. A council shall consist of--
            (1) representatives of nonprofit community service 
        organizations in the area who have substantial management or 
        policy responsibility with such organizations;
            (2) representatives of local governments;
            (3) representatives of educational agencies and 
        institutions, business concerns, rehabilitation agencies, 
        community-based organizations, and economic development 
        agencies in the area; and
            (4) representatives of organized labor.
    (b) Chairperson.--The members of a council shall select one of the 
members to serve as chairperson of the council.
    (c) Selection of Members.--
            (1) Education representatives.--Education representatives 
        on a council shall be selected from among individuals 
        recommended by local educational agencies, vocational education 
        institutions, institutions of higher learning, or general 
        organizations of such agencies or institutions, and by private 
        and proprietary schools or general organizations of such 
        schools, within the area.
            (2) Labor representatives.--Labor representatives on a 
        council shall be recommended by recognized State and local 
        labor organizations or appropriate building trades councils.
            (3) Other members.--The remaining members of a council 
        shall be selected from individuals recommended by interested 
        organizations.
    (d) Method of Selection.--
            (1) Single local government.--In any case in which there is 
        only one unit of local government in the volunteer service 
        area, the chief executive officer of such unit shall appoint 
        members to the council from the individuals recommended under 
        subsection (c).
            (2) Multiple local governments.--In any case in which there 
        are two or more such units of local government in the area, the 
        chief executive officers of such units shall appoint members to 
        the council from the individuals so recommended in accordance 
        with an agreement entered into by such units of general local 
        government. In the absence of such an agreement, the  
        appointments  shall  be made by the Governor from the 
        individuals so recommended.
    (e) Number of Members.--
            (1) In general.--Except as provided in paragraph (2), the 
        number of members of a council shall be determined by the 
        council.
            (2) Initial selection.--The initial number of members of a 
        council shall be determined--
                    (A) by the chief executive officer in the case 
                described in subsection (d)(1);
                    (B) by the chief executive officers in accordance 
                with the agreement in the  case described in subsection 
                (d)(2); or
                    (C) by the Governor in the absence of such 
                agreement.
    (f) Terms.--Members shall be appointed for fixed and staggered 
terms and may serve until their successors are appointed. Any vacancy 
in the membership of the council shall be filled in the same manner as 
the original appointment. Any member of the council may be removed by 
the council for cause in  accordance  with  procedures established by 
the council.
    (g) Certification of Council.--
            (1) In general.--The Governor shall certify a council if 
        the Governor determines that its composition and appointments 
        are consistent with the provisions of this section. Such 
        certification shall be made or denied within 30 days after the 
        date on which the Governor receives a list of council members 
        and any supporting documentation the Governor considers 
        necessary.
            (2) Failure to certify.--If the Governor denies 
        certification, the Governor shall--
                    (A) inform the chief executive officer or officers 
                submitting the list and documentation of the reasons 
                for denial; and
                    (B) provide for the review of any revised list and 
                documentation.
            (3) Effect of certification.--Upon certification, a council 
        shall be convened within 30 days by the officer or officers who 
        made the appointments to such council under subsection (d) and 
        may receive funds, consistent with section 224, to carry out 
        the duties of the council under this Act.

SEC. 223. DUTIES OF NATIONAL SERVICE COUNCILS.

    (a) Recruitment and Placement of Volunteers.--A national service 
council shall--
            (1) accept applications from individuals seeking to serve 
        in the Civilian Service and Senior Service of the Citizens 
        Corps; and
            (2) place such individuals in national service positions 
        consistent with the volunteer recruitment and placement plan of 
        such council and section 104.
    (b) Preparation and Implementation of Volunteer Recruitment and 
Placement Plan.--The council shall be responsible for preparing and 
implementing the volunteer recruitment and placement plan required 
under section 224.
    (c) Oversight.--The council shall provide policy guidance for, and 
exercise oversight (including review, monitoring, auditing, and 
evaluation) with respect to activities under the volunteer recruitment 
and placement plan for the volunteer service area of such council.
    (d) Other Duties.--
            (1) Budget.--In accordance with the volunteer recruitment 
        and placement plan, a council shall prepare and approve a 
        budget for operation of the council.
            (2) Staff.--A council may hire staff or contract for 
        services from nonprofit organizations. In hiring staff, a 
        council is encouraged to include members of the Senior Service 
        of the Citizens Corps.
            (3) Gifts.--A council may solicit and accept contributions 
        and grant funds  from  public  and private sources.

SEC. 224. VOLUNTEER RECRUITMENT AND PLACEMENT PLAN.

    (a) Condition for Receiving Funds.--Funds appropriated for a fiscal 
year may not be provided under this Act to a national service council 
unless the council is certified pursuant to section 222(g). Such funds 
shall be provided only pursuant to an approved volunteer recruitment 
and placement plan prepared by such council for a period of two fiscal 
years, including the fiscal year for which such funds are provided.
    (b) Preparation of Plan.--When preparing a volunteer recruitment 
and placement plan, a council shall consult the national service plan 
for the State prepared by the Governor under section 221.
    (c) Contents of Plan.--Each volunteer recruitment and placement 
plan shall--
            (1) identify the national service council that will 
        administer the plan and is to be the grant recipient of funds 
        from the State;
            (2) describe the national services to be provided, 
        including the extent such services reflect the priorities 
        contained in the national service plan for the State;
            (3) contain procedures for recruiting and placing members 
        of the Citizens Corps;
            (4) describe the support services to be provided to members 
        of the Citizens Corps, including the types of assistance to be 
        provided to members who are school dropouts to assist such 
        members earn the equivalent of a high school diploma;
            (5) contain procedures, consistent with section 226, for 
        selecting service sponsors, including procedures for council 
        consideration of the past performance of each service sponsor 
        in national services or related activities, fiscal 
        accountability, and ability to meet performance standards;
            (6) contain the budget for the council for the two-fiscal 
        year period covered by such plan;
            (7) contain fiscal control, accounting, audit and debt 
        collection procedures that assure the proper distribution and 
        accounting of funds received under this Act; and
            (8) provide for the council to submit to the Governor an 
        annual report that includes a description of--
                    (A) activities conducted during the fiscal year 
                covered by such report;
                    (B) service sponsors in the volunteer service area;
                    (C) members of the Citizens Corps placed by such 
                council, including the number of members who are school 
                dropouts; and
                    (D) the extent to which the activities exceeded or 
                failed to meet relevant performance standards 
                established by the Commission.
    (d) Modification of Plan.--If changes in the national service needs 
of the volunteer service area, funding, or other factors require 
substantial deviation from an approved plan, the national service 
council may submit a modification of such plan, which shall be subject 
to review in accordance with section 225.

SEC. 225. REVIEW AND APPROVAL OF PLAN.

    (a) Publication of Proposed Plan.--Not later than 120 days before 
the beginning of the two-fiscal year period covered by a proposed 
volunteer recruitment and placement plan, the council shall--
            (1) publish the proposed plan or a summary thereof; and
            (2) make such plan available for public review and comment.
    (b) Submission of Plan.--Not later than 80 days before the 
beginning of the 2-fiscal year period covered by a proposed volunteer 
recruitment and placement plan, the council shall submit such plan to 
the Governor. Any modification of such plan shall be published and 
submitted to the Governor not later than 80 days before it is to be 
effective.
    (c) Review.--
            (1) Conditions for approval.--The Governor shall approve 
        the volunteer recruitment and placement plan (or modification 
        thereof) unless the Governor finds that--
                    (A) corrective measures for deficiencies found in 
                audits or in meeting performance standards from 
                previous years have not been taken or are not being 
                acceptably implemented;
                    (B) the council does not have the capacity to 
                administer the funds;
                    (C) there are inadequate safeguards for the 
                protection of funds received; or
                    (D) the plan (or modification) does not comply with 
                this Act or a rule of the Commission.
            (2) Time for review.--The Governor shall approve or 
        disapprove a volunteer recruitment and placement plan (or 
        modification) within 30 days after  the  date  that  the  plan  
        (or  modification)  is submitted.
            (3) Effect of disapproval.--If the Governor disapproves a 
        plan, the Governor shall--
                    (A) inform the council of the reasons for such 
                disapproval;
                    (B) provide for the review of any revised plan; and
                    (C) take such steps as the Governor considers 
                necessary to provide for the recruitment and placement 
                of members of the Civilian and Senior Services in the 
                volunteer service area affected by such disapproval.

SEC. 226. SERVICE SPONSORS.

    (a) Selection of Service Sponsors.--Subject to subsection (b), in 
placing a member of the Civilian Service or Senior Service of the 
Citizens Corps with a public agency or public or nonprofit 
organization, the council shall give primary consideration to the 
effectiveness of the agency or organization in delivering community 
services and shall give appropriate consideration to the extent to 
which the agency or organization is a community-based service sponsor. 
The council shall determine the effectiveness of an agency or 
organization on the basis of the agency's or organization's 
demonstrated performance with regard to attaining performance goals, 
reducing costs, and retaining members of the Citizen Corps placed with 
such agency or organization.
    (b) Prevention of Worker Displacement.--In placing a member of the 
Civilian Service or Senior Service of the Citizens Corps with a public 
agency or public or nonprofit organization, the council shall take 
appropriate measures to assure that such placement shall not result 
in--
            (1) the displacement of any currently employed worker or 
        position (including partial displacement such as a reduction in 
        the hours of nonovertime work, wages, or employment benefits), 
        or result in the impairment of existing contracts for services 
        or collective bargaining agreements;
            (2) such member filling a position with such agency or 
        organization when--
                    (A) any other individual is on layoff from the same 
                or any equivalent position with such agency or 
                organization; or
                    (B) the employer has terminated the employment of 
                any regular employee or otherwise reduced the work 
                force of such employer with the effect of filling the 
                vacancy so created with such member; or
            (3) any infringement of the opportunities of any currently 
        employed individual for promotion.
    (c) Grievance Procedure.--
            (1) Establishment.--Each State shall establish and maintain 
        a grievance procedure for resolving complaints by regular 
        employees or their representatives that the placement of a 
        member of the Civilian Corps or Senior Corps under this Act 
        violates any of the prohibitions described in subsection (b).
            (2) Appeal.--A decision of the State under such procedure 
        may be appealed to the Commission for investigation and such 
        action as the Commission may find necessary.
    (d) Payments by Private Nonprofit Organization.--
            (1) In general.--The Commission may require a private 
        nonprofit organization to pay to the Commission an amount not 
        to exceed $1000 per year for each member of the Civilian 
        Service or Senior Service placed in a national service position 
        with such organization.
            (2) Reduction in payment.--The Commission may reduce the 
        payment required under paragraph (1) to reflect national 
        service provided--
                    (A) for a period of less than a full year; or
                    (B) in the case of a member of the Senior Service, 
                as part-time service.
            (3) Sharing payments.--The Commission shall share any 
        payment received under paragraph (1) or (2) with the State that 
        provides the stipend or wage to the member of the Citizen Corps 
        so placed with a private nonprofit organization. The share paid 
        to the State shall correspond to the matching funds requirement 
        for the State as specified in section 203 and adjusted to 
        reflect any offset under such section.

   Subtitle C--Deferred Placement of Members of the Civilian Service

SEC. 231. DEFERRED PLACEMENT PROGRAM.

    The Commission shall establish a special program for members of the 
Civilian Service under which individuals who are eligible to serve in 
the Civilian Service of the Citizens Corps under section 102(a) may, 
before placement for a term of service, receive the financial 
assistance provided to members of the Civilian Service under section 
303 to assist such individuals pursue a program of education or 
training at an educational institution or training establishment.

SEC. 232. ELIGIBILITY TO PARTICIPATE IN DEFERRED PLACEMENT PROGRAM.

    (a) Individuals Eligible.--An individual shall be eligible for 
selection as a participant in the Deferred Placement Program if the 
individual--
            (1) has received a high school diploma or its equivalent 
        and otherwise meets the eligibility requirements contained in 
        section 102(a); and
            (2) is accepted for enrollment, or is enrolled, as a full-
        time student--
                    (A) in an accredited (as determined by the 
                Commission) educational institution or training 
                establishment in a State; and
                    (B) in a program of education or training offered 
                by such institution or establishment and approved by 
                the Commission.
    (b) Application.--An individual seeking selection for the Deferred 
Placement Program shall submit an application to participate in the 
Program and agree to enter into a written contract (described in 
subsection (c))--
            (1) to accept financial assistance provided under this 
        subtitle to assist such individual in such program of education 
        or training; and
            (2) upon the completion of such program of education or 
        training, to serve as a member of Civilian Service for the term 
        of service corresponding to the amount of financial assistance 
        received.
    (c) Elements of Contract.--Subject to subsection (d), the written 
contract between the Commission and an individual selected to 
participate in the Deferred Placement Program shall contain--
            (1) an agreement by the Commission--
                    (A) to provide the participant with financial 
                assistance not to exceed $20,000 during the period in 
                which such participant is pursuing a program of 
                education or training described in subsection 
                (a)(2)(B); and
                    (B) to accept (subject to the availability of 
                appropriated funds for carrying out this subtitle) the 
                participant into the Civilian Service of the Citizens 
                Corps; and
            (2) an agreement by the participant--
                    (A) to accept provision of such financial 
                assistance;
                    (B) to maintain enrollment in a program of 
                education or training described in subsection (a)(2)(B) 
                until the participant completes the program;
                    (C) while enrolled in such program of education or 
                training, to maintain an acceptable level of academic 
                standing (as determined under rules of the Commission 
                by the educational institution or training 
                establishment offering such program); and
                    (D) to serve as a member of the Civilian Service 
                for a time period equal to one year if the assistance 
                provided is $10,000 or less or two years if the 
                assistance provided is more than $10,000; and
            (3) a statement of the damages to which the United States 
        is entitled under section 236 for the breach of the contract.
    (d) Contracts Subject to Available Funds.--Any financial obligation 
of the United States arising out of a contract entered into under this 
section and any obligation of the participant which is conditioned 
thereon, is contingent upon funds being appropriated for assistance 
under this subtitle.
    (e) Information Provided by the Commission.--In disseminating 
application forms and contract forms to individuals desiring to 
participate in the Program, the Commission shall include with such 
forms a fair summary of the rights and liabilities of an individual 
whose application is approved (and whose contract is accepted) by the 
Commission, including a clear explanation of the damages to which the 
United States is entitled under section 236 in the case of the breach 
of the contract.
    (f) Application and Contract Forms.--The application form, contract 
form, and all other information furnished by the Commission under this 
subtitle shall be written in a manner calculated to be understood by 
the average individual applying to participate in the Program. The 
Commission shall make such application forms, contract forms, and other 
information available to individuals desiring to participate in the 
Program on a date sufficiently early to ensure that such individuals 
have adequate time to carefully review and evaluate such forms and 
information.

SEC. 233. ACCEPTANCE.

    (a) Acceptance.--(1) An individual shall become a participant in 
the Deferred Placement Program only upon the approval by the Commission 
of an application submitted by the individual under section 232 and the 
acceptance by the Commission of the contract signed by the individual 
under such section. Upon the acceptance of an individual to participate 
in the Deferred Placement Program, the Commission shall promptly 
provide written notice of such acceptance to such individual.
    (b) Selection Process.--The Commission shall establish by rule 
uniform criteria for the selection on a competitive basis of 
individuals to participate in the Program.

SEC. 234. LIMITATION ON THE USE OF ASSISTANCE AND REDUCTION OF 
              SUBSEQUENT ASSISTANCE.

    (a) Limitation on the Use of Assistance.--Financial assistance 
provided under this subtitle--
            (1) may be used by the participant solely for the purposes 
        described in section 305(d); and
            (2) may not be used to purchase or construct a dwelling to 
        be owned and occupied by such participant as the primary 
        residence of such participant.
    (b) Reduction of Subsequent Assistance.--Any financial assistance 
provided under section 303 to a participant in the Program after the 
completion of the term of service of such participant shall be reduced 
by the amount of assistance provided to such participant under this 
subtitle.

SEC. 235. PLACEMENT.

    Upon the completion of a program of education or training described 
in section 232(a)(2)(B) by a participant in the Program, the Commission 
shall--
            (1) refer the participant to a national service council or 
        a Federal, State, or local agency accepting members of the 
        Citizens Corps; and
            (2) acting through such entity, place the participant in a 
        national service position taking into consideration the 
        preference and skills of the participant.

SEC. 236. BREACH OF CONTRACT.

    (a) Breach During a Program of Education or Training.--An 
individual who is selected to participate in the Deferred Placement 
Program and who enters into a written contract with the Commission 
under section 232 shall be considered to be in violation of the 
contract if the participant--
            (1) fails to maintain a status as a full-time student;
            (2) fails to maintain an acceptable level of academic 
        standing in the educational institution or training 
        establishment in which the participant is enrolled (such level 
        to be determined by the institution or establishment under 
        rules issued by the Commission);
            (3) is dismissed from such educational institution for 
        disciplinary reasons;
            (4) voluntarily terminates the program of education or 
        training described in section 232(a)(2)(B) for which the 
        participant is provided assistance under such contract, before 
        the completion of such program; or
            (5) fails to accept payment, or instructs the educational 
        institution or training establishment in which the individual 
        is enrolled not to accept payment, in whole or in part, of 
        assistance provided under such contract;
    (b) Repayment Required.--In lieu of any service obligation arising 
under a contract entered into under section 232, an individual 
described in subsection (a) shall be liable to the United States for 
the amount which has been paid to the individual, or on behalf of the 
individual, under the contract and interest on such amount at the rate 
described in subsection (c).
    (c) Breach After Completing a Program of Education or Training.--If 
(for any reason not specified in subsection (a)) an individual fails 
either to begin the term of service in the Citizens Corps agreed to by 
the individual or to complete such term of service, the United States 
shall be entitled to recover from the individual an amount determined 
in accordance with the formula
                                    A=3y(t-s/t)
in which--
            (1) ``A'' is the amount the United States is entitled to 
        recover;
            (2) ``Y'' is the sum of the amounts paid under this 
        subtitle to or on behalf of the individual and the interest on 
        such amounts which would be payable if at the time the amounts 
        were paid they were loans bearing interest at the maximum legal 
        prevailing rate, as determined by the Treasurer of the United 
        States;
            (3) ``t'' is the total number of months in the individual's 
        term of service; and
            (4) ``s'' is the number of months of such term of service 
        served by the individual.
    (d) Payment of Amounts.--
            (1) Time for payment.--Any amount that the United States is 
        entitled to recover under this section shall, within the one-
        year period beginning on the date of the breach of the written 
        contract (or such longer period beginning on such date as 
        specified by the Commission), be paid to the United States.
            (2) Excessive delay.--If any amount described in paragraph 
        (1) is delinquent for three or more months, the Commission 
        shall, for the purpose of recovering such amount--
                    (A) utilize collection agencies contracted with by 
                the Administrator of the General Services 
                Administration; or
                    (B) enter into contracts for the recovery of such 
                damages with collection agencies selected by the 
                Commission.
            (3) Conditions of collection contracts.--Each contract 
        referred to in paragraph (2) shall provide that the contractor 
        will submit to the Commission not less than once every 180 days 
        a status report on the success of the contractor in collecting 
        such damages. Section 3718 of title 31, United States Code, 
        shall apply to any such contract to the extent not inconsistent 
        with this subsection.
    (e) Disclosure of Delinquent Payments.--To the extent not otherwise 
prohibited by law, the Commission shall disclose to all appropriate 
credit reporting agencies information relating to amounts of more than 
$100 that--
            (1) the United States is entitled to recover under this 
        section; and
            (2) are delinquent by more than 60 days or such longer 
        period as is determined by the Commission.

Subtitle D--Administration of the Citizens Corps With Regard to Service 
                          in the Armed Forces

SEC. 241. ADMINISTRATION OF THE CITIZENS CORPS WITH REGARD TO SERVICE 
              IN THE ARMED FORCES.

    (a) Responsibility of Secretary of Defense.--The Secretary of 
Defense shall be responsible for administering the Citizens Corps with 
regard to service by members of the Citizens Corps in the Armed Forces.
    (b) Rulemaking.--Not later than 60 days after the date of the 
enactment of this Act, the Secretary shall issue rules to carry out 
this subtitle.

SEC. 242. DEFERRED ENLISTMENT.

    (a) Senior Reserve Officers' Training Corps Program.--The Secretary 
concerned, in consultation with the Secretary of Defense, shall expand 
the Senior Reserve Officers' Training Corps program under chapter 103 
of title 10, United States Code, so that a certain number of the 
individuals (as determined by the Secretary concerned) who are eligible 
to enlist for service in the Armed Forces as a member of the Citizens 
Corps under section 102(b) may, before performing a service obligation 
selected under section 103(b), receive the financial assistance 
provided to members of the Citizens Corps under section 304 to assist 
such individuals pursue a program of education or training at an 
educational institution or training establishment.
    (b) Operation of Program.--The Secretary concerned shall operate 
the Senior Reserve Officers' Training Corps Program with regard to 
individuals referred to in subsection (a) in the manner provided in 
subtitle C.

SEC. 243. REPORTS.

    (a) Required.--On or before May 15 of each calendar year, the 
Secretary of Defense shall submit to the President a report describing 
the operation of the Citizen Corps with regard to service in the Armed 
Forces and the activities of the Secretary in administering such 
service during the fiscal year ending September 30 of the preceding 
calendar year, and the President shall transmit such report to the 
Congress.
    (b) Content of Report.--(1) Each report shall include a 
comprehensive and detailed description of the operations, activities, 
financial condition, and accomplishments of the Citizens Corps with 
regard to service in the Armed Forces during the fiscal year covered by 
such report and such recommendations as the Secretary considers 
appropriate.
    (2) In the first 5 reports submitted under subsection (a), the 
Secretary shall specify--
            (A) the anticipated number of national service positions 
        that will be available in the Armed Forces for members of the 
        Citizens Corps in the fiscal year beginning in the calendar 
        year in which such report is submitted; and
            (B) the anticipated cost of operating the Citizens Corps 
        with regard to service in the Armed Forces for such fiscal 
        year.

      TITLE III--BENEFITS FOR PARTICIPATING IN THE CITIZENS CORPS

SEC. 301. STIPEND AND SUPPORT SERVICES FOR MEMBERS OF THE CIVILIAN 
              SERVICE AND SENIOR SERVICE.

    (a) Civilian Service.--
            (1) Stipend.--The State shall provide a stipend of $100 per 
        week to each member of the Civilian Service of the Citizens 
        Corps performing service in the State (except members placed 
        with a Federal agency) while such member is in training and 
        providing full-time service during the term of service of such 
        member. If a member of the Civilian Service is placed with a 
        Federal agency, such agency shall be responsible for providing 
        a stipend of $100 per week to such member while such member is 
        in training and providing full-time service with such agency 
        during the term of service of such member.
            (2) Health coverage.--The Commission shall provide each 
        member of the Civilian Service of the Citizens Corps with 
        health insurance.
            (3) Other support.--The Commission may provide such other 
        assistance as the Commission considers necessary and 
        appropriate for a member of the Civilian Service of the 
        Citizens Corps to carry out the service obligation of such 
        member.
    (b) Senior Service.--
            (1) Hourly wage.--The State or Federal agency, as the case 
        may be, shall pay to each member of the Senior Service 
        performing service in the State or with the agency an hourly 
        wage as determined by rule by the Commission.
            (2) Other support.--The Commission may provide such other 
        assistance as the Commission considers necessary and 
        appropriate for a member of the Senior Service to carry out the 
        service obligation of such member.

SEC. 302. COMPENSATION FOR MEMBERS OF THE CITIZENS CORPS SERVING IN THE 
              ARMED FORCES.

    (a) Amount of Compensation.--Notwithstanding any other provision of 
law, a member of the Citizens Corps serving in the Armed Forces shall 
receive basic pay, basic allowance for subsistence, basic allowance for 
quarters at 66 percent of the rate applicable to other members of the 
Armed Forces with the same pay grade and years of service.
    (b) Limitations.--A member of the Citizens Corps serving in the 
Armed Forces, or a graduate of such service, shall not be eligible to 
receive benefits under chapters 106, 107, and 109 of title 10, United 
States Code, or chapters 30, 32, 34, 36, or 37 of title 38, United 
States Code, as a result of such service.

SEC. 303. EDUCATIONAL AND HOUSING BENEFITS FOR MEMBERS OF THE CIVILIAN 
              SERVICE OF THE CITIZENS CORPS.

    (a) Amount of Financial Assistance.--An individual who successfully 
completes a term of service as a member of the Civilian Service of the 
Citizens Corps shall be eligible to receive financial assistance 
pursuant to section 305 or 306 in an amount not to exceed $10,000 for 
each year of such term to assist such individual--
            (1) pursue a program of education or training at an 
        educational institution or training establishment; or
            (2) purchase or construct a dwelling to be owned and 
        occupied by such individual as the primary residence of such 
        individual.
    (b) Partial Completion of Term of Service.--If the Commission 
releases an individual from completing a term of service in the 
Civilian Service for compelling personal circumstances for just cause 
shown by such member, the Commission may provide such individual with a 
portion of the financial assistance specified in subsection (a) 
corresponding to the amount of the service obligation completed by such 
individual.

SEC. 304. EDUCATIONAL AND HOUSING BENEFITS FOR MEMBERS OF THE CITIZENS 
              CORPS SERVING IN THE ARMED FORCES.

    (a) Active Duty in the Armed Forces.--
            (1) Eligibility.--A member of the Citizens Corps serving in 
        the Armed Forces pursuant to section 103(b)(1) who is released 
        from active duty after two years of service (characterized by 
        the Secretary concerned as honorable service) on active duty 
        shall be eligible for the financial assistance specified in 
        paragraph (2) on the condition that--
                    (A) the member agrees to complete the service 
                obligation selected by such member; and
                    (B) such further service is characterized by the 
                Secretary concerned as honorable service.
            (2) Amount of benefits.--The financial assistance referred 
        to in paragraph (1) shall be provided pursuant to section 305 
        or 306 in an amount not to exceed $24,000 to assist such 
        member--
                    (A) pursue a program of education or training at an 
                educational institution or training establishment; or
                    (B) purchase or construct a dwelling to be owned 
                and occupied by such individual as the primary 
                residence of such individual.
    (b) Service in the Selected Reserve.--
            (1) Eligibility.--A member of the Citizens Corps serving in 
        a reserve component of the Armed Forces pursuant to section 
        103(b)(2) is eligible for the financial assistance specified in 
        paragraph (2)--
                    (A) after the member serves one year in the 
                Selected Reserve during which the member participates 
                satisfactorily in training as prescribed by the 
                Secretary concerned; and
                    (B) on the condition that the member agrees to 
                complete the service obligation selected by such member 
                and such service is characterized by the Secretary 
                concerned as honorable service.
            (2) Amount of benefits.--The financial assistance referred 
        to in paragraph (1) shall be provided pursuant to section 305 
        or 306 in an amount not to exceed $12,000 to assist such 
        member--
                    (A) pursue a program of education or training at an 
                educational institution or training establishment; or
                    (B) purchase or construct a dwelling to be owned 
                and occupied by such individual as the primary 
                residence of such individual.
    (c) Partial Completion of Term of Service.--If the Secretary of 
Defense releases a member of the Citizens Corps from completing a 
service obligation in the Armed Forces with an honorable discharge, the 
Secretary of Veterans Affairs may provide such member with a portion of 
the financial assistance such individual would have otherwise been 
entitled to corresponding to the amount of the service obligation 
completed by such individual.

SEC. 305. PROVISION OF EDUCATIONAL BENEFITS.

    (a) Civilian Service.--The Commission (in consultation with the 
Secretary of Veterans Affairs) shall administer the provision of 
financial assistance under section 303 for individuals pursuing a 
program of education or training at an educational institution or 
training establishment.
    (b) Service in the Armed Forces.--The Secretary of Veterans Affairs 
(in consultation with the Commission) shall administer the provision of 
financial assistance under section 304 for individuals pursuing a 
program of education or training at an educational institution or 
training establishment.
    (c) Method of Providing Assistance.--The Commission and Secretary 
shall administer the provision of educational benefits to an individual 
who is eligible for financial assistance under section 303 or 304 in 
the manner provided in sections 1663, 1670, 1671, 1673, 1674, 1676, 
1682(g), and 1683 of title 38, United States Code, and in subchapters I 
and II of chapter 36 of such title.
    (d) Use of Assistance.--Assistance provided under section 303 or 
304 as educational benefits may be used--
            (1) to pay tuition, fees, books, supplies, equipment, room 
        and board, and other costs determined by the Commission to be 
        necessary to accomplish a program of education or training at 
        an educational institution or training establishment; or
            (2) to repay student loans that are--
                    (A) incurred by or on behalf of the individual 
                eligible to receive the assistance; and
                    (B) insured or guaranteed under part B of title IV 
                of the Higher Education Act of 1965 (20 U.S.C. 1071 et 
                seq.) or made under part E of such title (20 U.S.C. 
                1087 et seq.).

SEC. 306. PROVISION OF HOUSING BENEFITS.

    (a) Civilian Service.--The Commission (in consultation with the 
Secretary of Veterans Affairs) shall--
            (1) establish a program by which an individual eligible for 
        financial assistance under section 303 may use all or part of 
        such assistance to purchase or construct a dwelling to be owned 
        and occupied by the individual as the primary residence of such 
        individual; and
            (2) monitor the implementation of such program.
    (b) Service in the Armed Forces.--The Secretary of Veterans Affairs 
(in consultation with the Commission) shall--
            (1) establish a program by which an individual eligible for 
        financial assistance under section 304 may use all or part of 
        such assistance to purchase or construct a dwelling to be owned 
        and occupied by the individual as the primary residence of such 
        individual; and
            (2) monitor the implementation of such program.

SEC. 307. TIME LIMITATION ON THE USE OF ASSISTANCE.

    (a) In General.--No assistance under section 303 or 304 may be 
provided an individual after the end of the 10-year period beginning on 
the date the term of service of such individual is completed.
    (b) Exception.--Subsection (a) shall not apply if the Secretary of 
Veterans Affairs or the Commission, as the case may be, determines on 
an individual basis that an individual was unavoidably prevented from 
using such assistance during such time period.

SEC. 308. EXCLUSION OF ASSISTANCE FROM GROSS INCOME.

    (a) Exclusion.--For purposes of section 61 of the Internal Revenue 
Code of 1986 (26 U.S.C. 61), in the case of an individual, gross income 
shall not include any amount received as assistance under section 303 
or 304.
    (b) Need Analysis for Student Assistance.--Notwithstanding 
subsection (a), amounts available as assistance under section 303 or 
304 shall be considered when determining family contribution for 
purposes of a financial need analysis under title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1070 et seq.).

SEC. 309. RECOUPMENT OF ASSISTANCE.

    (a) Failure to Complete Service Obligation in the Armed Forces.--
The Secretary of Veterans Affairs shall establish by rule a system to 
recoup financial assistance provided under section 304 and used by a 
member of the Citizens Corps serving in the Armed Forces or a reserve 
component of the Armed Forces in cases in which the individual fails to 
honorably complete the required service obligation.
    (b) Calculation and Collection.--The amount recouped under 
subsection (a) shall be calculated and collected in the manner provided 
in section 236.

SEC. 310. REPORTS.

    (a) Required.--(1) The Secretary of Veterans Affairs and the 
Commission shall submit to the Congress at least once every two years a 
joint report on the provision of financial assistance under sections 
303 and 304.
    (2) The first report required by paragraph (1) shall be submitted 
not later than January 1, 1994.
    (b) Contents of Report.--Each report submitted under subsection (a) 
shall include--
            (1) an assessment of the extent to which the financial 
        assistance provided under sections 303 and 304 is adequate to 
        induce individuals to serve in the Citizens Corps and complete 
        their terms of service;
            (2) the amount of such assistance utilized during the 
        period covered by such report; and
            (3) such recommendations for legislative changes regarding 
        the provision of such assistance to members of the Citizens 
        Corps and individuals who have successfully completed their 
        terms of service in the Citizens Corps as the Secretary and 
        Commission consider appropriate.

                   TITLE IV--MISCELLANEOUS PROVISIONS

SEC. 401. EDUCATIONAL AND HOUSING BENEFITS FOR PARTICIPANTS IN THE 
              PEACE CORPS AND VISTA.

    (a) Benefits Allowed.--Subject to subsection (b), an individual who 
is not a member of the Civilian Service of the Citizens Corps but who 
successfully completes a term of service in the Peace Corps or VISTA 
after the effective date of this Act shall be entitled to financial 
assistance under section 303 in the same manner as a member of the 
Civilian Service.
    (b) Reduction of Benefits.--The Commission shall reduce the amount 
of financial assistance available to a former Peace Corps or VISTA 
volunteer under subsection (a) to reflect the amount of compensation 
received by such volunteer over and above the stipend provided to 
members of the Civilian Service.

SEC. 402. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to the Commission to carry 
out this Act:
            (1) $ ________ for fiscal year 1994.
            (2) $ ________ for fiscal year 1995.
            (3) $ ________ for fiscal year 1996.
            (4) Such sums as may be necessary for each fiscal year 
        thereafter.

SEC. 403. EFFECTIVE DATE.

    This Act shall take effect on October 1, 1993.

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