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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2010 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 2010

To amend the National and Community Service Act of 1990 to establish a 
 Corporation for National Service, enhance opportunities for national 
  service, and provide national service educational awards to persons 
         participating in such service, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 6, 1993

Mr. Martinez (for himself, Mr. Ford of Michigan, Mr. Owens, Mr. Kildee, 
   Mr. Clay, Mr. Miller of California, Mr. Murphy, Mr. Williams, Mr. 
 Sawyer, Mr. Payne of New Jersey, Mrs. Unsoeld, Mrs. Mink, Mr. Andrews 
of New Jersey, Mr. Reed, Mr. Roemer, Mr. Engel, Mr. Becerra, Mr. Scott, 
 Mr. Gene Green of Texas, Ms. Woolsey, Mr. Romero-Barcelo, Mr. Klink, 
Ms. English of Arizona, Mr. Strickland, Mr. de Lugo, Mr. Faleomavaega, 
 Mr. Baesler, Mr. Underwood, Mr. Gunderson, Mr. Hoekstra, Mr. McCurdy, 
 Mr. Shays, Mr. Abercrombie, Mr. Ackerman, Mr. Bacchus of Florida, Mr. 
   Barlow, Mr. Beilenson, Mr. Bereuter, Mr. Berman, Mr. Bevill, Mr. 
Bilbray, Mr. Blute, Mr. Boucher, Mr. Brewster, Mr. Browder, Mr. Bryant, 
 Mr. Carr, Mr. Chapman, Mr. Clement, Mr. Cooper, Mr. Coppersmith, Mr. 
 Costello, Mr. Cramer, Mr. Darden, Mr. Deal, Ms. DeLauro, Mr. Derrick, 
 Mr. Dickey, Mr. Dicks, Mr. English of Oklahoma, Ms. Eshoo, Mr. Fazio, 
Mr. Fields of Louisiana, Mr. Filner, Mr. Fish, Mr. Flake, Mr. Frank of 
 Massachusetts, Mr. Pete Geren of Texas, Mr. Gilman, Mr. Gillmor, Mr. 
  Gordon, Mr. Hayes, Mr. Hefner, Mr. Hinchey, Mr. Hochbrueckner, Mr. 
 Holden, Mr. Horn, Mr. Houghton, Mr. Hoyer, Mr. Hughes, Mr. Jefferson, 
  Mr. Johnson of Georgia, Mr. Kennedy, Mrs. Kennelly, Mr. Klein, Mr. 
LaFalce, Mr. Lancaster, Mr. Lantos, Mr. LaRocco, Mr. Lazio, Mr. Leach, 
 Mr. Lewis of Florida, Mr. Lewis of Georgia, Mr. Lipinski, Mrs. Lloyd, 
Mrs. Lowey, Mr. McDermott, Mr. McHale, Mr. Machtley, Mrs. Maloney, Mr. 
    Manton, Mr. Mazzoli, Mr. Menendez, Mr. Mfume, Mr. Mollohan, Mr. 
  Montgomery, Mr. Moran, Mrs. Morella, Mr. Murtha, Mr. Oberstar, Mr. 
 Orton, Mr. Payne of Virginia, Ms. Pelosi, Mr. Penny, Mr. Peterson of 
 Minnesota, Mr. Poshard, Mr. Price of North Carolina, Mr. Richardson, 
   Mr. Rose, Ms. Schenk, Mr. Serrano, Ms. Shepherd, Mr. Skelton, Mr. 
Slattery, Ms. Slaughter, Ms. Snowe, Mr. Spratt, Mr. Stokes, Mr. Studds, 
Mr. Stupak, Mr. Swett, Mr. Swift, Mr. Tanner, Mr. Tauzin, Mrs. Thurman, 
 Mr. Torkildsen, Mr. Torres, Mr. Upton, Ms. Velazquez, Mr. Vento, Mr. 
  Volkmer, Ms. Waters, Mr. Watt, Mr. Waxman, Mr. Wheat, and Mr. Wise) 
 introduced the following bill; which was referred to the Committee on 
                          Education and Labor

_______________________________________________________________________

                                 A BILL

 
To amend the National and Community Service Act of 1990 to establish a 
 Corporation for National Service, enhance opportunities for national 
  service, and provide national service educational awards to persons 
         participating in such service, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``National Service 
Trust Act of 1993''.
    (b) Table of Contents.--The table of contents is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purpose.
                TITLE I--PROGRAMS AND RELATED PROVISIONS

                          Subtitle A--Programs

Sec. 101. Federal investment in support of national service.
Sec. 102. National Service Trust and provision of national service 
                            educational awards.
Sec. 103. School-based and community-based service-learning programs.
Sec. 104. Quality and innovation activities.
                     Subtitle B--Related Provisions

Sec. 111. Definitions.
Sec. 112. Authority to make State grants.
Sec. 113. Family and medical leave.
Sec. 114. Reports.
Sec. 115. Nondiscrimination.
Sec. 116. Notice, hearing, and grievance procedures.
Sec. 117. Nondisplacement.
Sec. 118. Evaluation.
Sec. 119. Engagement of participants.
Sec. 120. Contingent extension.
Sec. 121. Repeals.
                         TITLE II--ORGANIZATION

Sec. 201. State Commissions on National Service.
Sec. 202. Interim authorities of the Corporation for National Service 
                            and ACTION Agency.
Sec. 203. Final authorities of the Corporation for National Service.
                       TITLE III--REAUTHORIZATION

         Subtitle A--National and Community Service Act of 1990

Sec. 301. Authorization of appropriations.
           Subtitle B--Domestic Volunteer Service Act of 1973

Sec. 311. Short title; references.
            Chapter 1--VISTA and Other Anti-Poverty Programs

Sec. 321. Purpose of the VISTA program.
Sec. 322. Selection and assignment of VISTA volunteers.
Sec. 323. Terms and periods of service.
Sec. 324. Support for VISTA volunteers.
Sec. 325. Participation of younger and older persons.
Sec. 326. Literacy activities.
Sec. 327. Applications for assistance.
Sec. 328. Repeal of authority for student community service programs.
Sec. 329. University year for VISTA.
Sec. 330. Authority to establish and operate special volunteer and 
                            demonstration programs.
Sec. 331. Technical and financial assistance.
Sec. 332. Elimination of separate authority for drug abuse programs.
               Chapter 2--National Senior Volunteer Corps

Sec. 341. National Senior Volunteer Corps.
Sec. 342. The Retired and Senior Volunteer Program.
Sec. 343. Operation of the Retired and Senior Volunteer Program.
Sec. 344. Services under the Foster Grandparent Program.
Sec. 345. Stipends for low-income volunteers.
Sec. 346. Participation of non-low-income persons under parts B and C.
Sec. 347. Conditions of grants and contracts.
Sec. 348. Evaluation of the Senior Companion Program.
Sec. 349. Agreements with other Federal agencies.
Sec. 350. Programs of national significance.
Sec. 351. Adjustments to Federal financial assistance.
Sec. 352. Demonstration programs.
                       Chapter 3--Administration

Sec. 361. Purpose of agency.
Sec. 362. Authority of the Director.
Sec. 363. Compensation for volunteers.
Sec. 364. Repeal of report.
Sec. 365. Application of Federal law.
Sec. 366. Evaluation of programs.
Sec. 367. Nondiscrimination provisions.
Sec. 368. Elimination of separate requirements for setting regulations.
Sec. 369. Clarification of role of Inspector General.
Sec. 370. Copyright protection.
Sec. 371. Center for research and training.
Sec. 372. Deposit requirement credit for service as a volunteer.
    Chapter 4--Authorization of Appropriations and Other Amendments

Sec. 381. Authorization of appropriations for title I.
Sec. 382. Authorization of appropriations for title II.
Sec. 383. Authorization of appropriations for title IV.
Sec. 384. Conforming amendments; compensation for VISTA FECA claimants.
Sec. 385. Repeal of authority.
                     Chapter 5--General Provisions

Sec. 391. Technical and conforming amendments.
Sec. 392. Effective date.
             TITLE IV--TECHNICAL AND CONFORMING AMENDMENTS

Sec. 401. Definition of Director. 
Sec. 402. References to ACTION and the ACTION Agency.
Sec. 403. Definitions.
Sec. 404. References to the Commission on National and Community 
                            Service.
Sec. 405. References to Directors of the Commission on National and 
                            Community Service.
Sec. 406. Effective date.

SEC. 2. FINDINGS AND PURPOSE.

    (a) In General.--Section 2 of the National and Community Service 
Act of 1990 (42 U.S.C. 12501) is amended to read as follows:

``SEC. 2. FINDINGS AND PURPOSE.

    ``(a) Findings.--The Congress finds the following:
            ``(1) Throughout the United States, there are pressing 
        unmet human, educational, environmental, and public safety 
        needs.
            ``(2) Americans desire to affirm common responsibilities 
        and shared values that transcend race, religion, or region.
            ``(3) The rising costs of post-secondary education are 
        putting higher education out of reach for an increasing number 
        of citizens.
            ``(4) Americans of all ages can improve their communities 
        and become better citizens through service to the United 
        States.
            ``(5) Nonprofit organizations, local governments, States, 
        and the Federal Government are already supporting a wide 
        variety of national service programs that deliver needed 
        services in a cost-effective manner.
    ``(b) Purposes.--It is the purpose of this Act to--
            ``(1) meet the unmet human, educational, environmental, and 
        public safety needs of the United States, without displacing 
        existing workers;
            ``(2) renew the ethic of civic responsibility and the 
        spirit of community throughout the United States;
            ``(3) expand educational opportunity by rewarding 
        individuals who participate in national service with an 
        increased ability to pursue higher education or job training;
            ``(4) encourage citizens of the United States, regardless 
        of age or income, to engage in full-time or part-time national 
        service;
            ``(5) reinvent government to eliminate duplication, support 
        locally established initiatives, require measurable goals for 
        performance, and offer flexibility in meeting those goals;
            ``(6) build on the existing organizational service 
        infrastructure of Federal, State, and local programs and 
        agencies to expand full-time and part-time service 
        opportunities for all citizens; and
            ``(7) provide tangible benefits to the communities in which 
        national service is performed.''.
    (b) Table of Contents.--Section 1(b) of the National and Community 
Service Act of 1990 (Public Law 101-610; 104 Stat. 3127) is amended by 
striking the item relating to section 2 and inserting the following new 
item:

``Sec. 2. Findings and purpose.''.

                TITLE I--PROGRAMS AND RELATED PROVISIONS

                          Subtitle A--Programs

SEC. 101. FEDERAL INVESTMENT IN SUPPORT OF NATIONAL SERVICE.

    (a) Assistance Program Authorized.--Subtitle C of title I of the 
National and Community Service Act of 1990 (42 U.S.C. 12541 et seq.) is 
amended to read as follows:

              ``Subtitle C--National Service Trust Program

                ``PART I--INVESTMENT IN NATIONAL SERVICE

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

    ``(a) Provision of Assistance.--The Corporation for National 
Service may make grants to States, subdivisions of States, Indian 
tribes, public and private not-for-profit organizations, and 
institutions of higher education for the purpose of assisting the 
recipients of the grants--
            ``(1) to carry out full- or part-time national service 
        programs, including summer programs, described in section 
        122(a); and
            ``(2) to make grants in support of other national service 
        programs described in section 122(a) that are carried out by 
        other entities.
    ``(b) Agreements With Federal Agencies.--The Corporation may enter 
into a contract or cooperative agreement with another Federal agency to 
support a national service program carried out by the agency. The 
support provided by the Corporation pursuant to the contract or 
cooperative agreement may include the transfer to the Federal agency of 
funds available to the Corporation under this subtitle. A Federal 
agency receiving assistance under this subsection shall not be required 
to satisfy the matching funds requirements specified in subsection (e). 
However, the supplementation requirements specified in section 173 
shall apply with respect to the Federal national service programs 
supported with such assistance.
    ``(c) Provision of Approved National Service Positions.--As part of 
the provision of assistance under subsections (a) and (b), the 
Corporation shall--
            ``(1) approve the provision of national service educational 
        awards described in subtitle D for the participants who serve 
        in national service programs carried out using such assistance; 
        and
            ``(2) deposit in the National Service Trust established in 
        section 145(a) an amount equal to the product of--
                    ``(A) the value of a national service educational 
                award under section 147; and
                    ``(B) the total number of approved national service 
                positions to be provided.
    ``(d) Five Percent Limitation on Administrative Costs.--
            ``(1) Limitation.--Not more than 5 percent of the amount of 
        assistance provided to the original recipient of a grant or 
        transfer of assistance under subsection (a) or (b) for a fiscal 
        year may be used to pay for administrative costs incurred by--
                    ``(A) the recipient of the assistance; and
                    ``(B) national service programs carried out or 
                supported with the assistance.
            ``(2) Rules on use.--The Corporation may by rule prescribe 
        the manner and extent to which--
                    ``(A) assistance provided under subsection (a) or 
                (b) may be used to cover administrative costs; and
                    ``(B) that portion of the assistance available to 
                cover administrative costs should be distributed 
                between--
                            ``(i) the original recipient of the grant 
                        or transfer of assistance under such 
                        subsection; and
                            ``(ii) national service programs carried 
                        out or supported with the assistance.
    ``(e) Matching Funds Requirements.--
            ``(1) Requirements.--Except as provided in section 140, the 
        Federal share of the cost of carrying out a national service 
        program that receives the assistance under subsection (a), 
        whether the assistance is provided directly or as a subgrant 
        from the original recipient of the assistance, may not exceed 
        75 percent of such cost.
            ``(2) Calculation.--In providing for the remaining share of 
        the cost of carrying out a national service program, the 
        program--
                    ``(A) shall provide for such share through a 
                payment in cash or in kind, fairly evaluated, including 
                facilities, equipment, or services; and
                    ``(B) may provide for such share through State 
                sources, local sources, or other Federal sources (other 
                than the use of funds made available under the national 
                service laws).
            ``(3) Waiver.--The Corporation may waive in whole or in 
        part the requirements of paragraph (1) with respect to a 
        national service program in any fiscal year if the Corporation 
        determines that such a waiver would be equitable due to a lack 
        of available financial resources at the local level.

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

    ``(a) Eligible National Service Programs.--The recipient of a grant 
under section 121(a) and each Federal agency receiving assistance under 
section 121(b) shall use the assistance, directly or through subgrants 
to other entities, to carry out full- or part-time national service 
programs, including summer programs, that address unmet human, 
educational, environmental, or public safety needs. Subject to 
subsection (b)(1), these national service programs may include the 
following types of national service programs:
            ``(1) A community corps program that meets unmet human, 
        educational, environmental, or public safety needs and promotes 
        greater community unity through the use of organized teams of 
        participants of varied social and economic backgrounds, skill 
        levels, physical capabilities, ages, ethnic backgrounds, or 
        genders.
            ``(2) A youth corps program, such as a conservation corps 
        or youth service corps (including a conservation corps or youth 
        service corps that performs service on Federal or other public 
        lands or on Indian lands), that--
                    ``(A) undertakes meaningful full-time service 
                projects with visible benefits to a community, 
                including natural resource, urban renovation, or human 
                services projects;
                    ``(B) includes as participants youths and young 
                adults between the ages of 16 and 25, inclusive, 
                including out-of-school youths and other disadvantaged 
                youths who are between those ages; and
                    ``(C) provides those participants who are youths 
                and young adults with--
                            ``(i) crew-based, highly structured, and 
                        adult-supervised work experience, life skills, 
                        education, career guidance and counseling, 
                        employment training, and support services; and
                            ``(ii) the opportunity to develop 
                        citizenship values and skills through service 
                        to their community and the United States.
            ``(3) A program that provides specialized training to 
        individuals in service-learning and places the individuals 
        after such training in positions, including positions as 
        service-learning coordinators, to facilitate service-learning 
        in programs eligible for funding under part I subtitle B.
            ``(4) A service program that is targeted at specific unmet 
        human, educational, environmental, or public safety needs and 
        that--
                    ``(A) recruits individuals with special skills or 
                provides specialized preservice training to enable 
                participants to be placed individually or in teams in 
                positions in which the participants can meet such unmet 
                needs; and
                    ``(B) brings participants together for additional 
                training and other activities designed to foster civic 
                responsibility, increase the skills of participants, 
                and improve the quality of the service provided.
            ``(5) An individualized placement program that includes 
        regular group activities, such as leadership training and 
        special service projects.
            ``(6) A campus-based program that is designed to provide 
        substantial service in a community during the school term and 
        during summer or other vacation periods through the use of--
                    ``(A) students who are attending an institution of 
                higher education, including students supported by work-
                study funds under part C of title IV of the Higher 
                Education Act of 1965 (42 U.S.C. 2751 et seq.);
                    ``(B) teams composed of such students; or
                    ``(C) teams composed of a combination of such 
                students and community residents.
            ``(7) A preprofessional training program in which students 
        enrolled in an institution of higher education--
                    ``(A) receive training in specified fields, which 
                may include classes containing service-learning;
                    ``(B) perform service related to such training 
                outside the classroom during the school term and during 
                summer or other vacation periods; and
                    ``(C) agree to provide service upon graduation to 
                meet unmet human, educational, environmental, or public 
                safety needs related to such training.
            ``(8) A professional corps program that recruits and places 
        qualified participants in positions--
                    ``(A) as teachers, nurses, police officers, early 
                childhood development staff, or other professionals 
                providing service to meet educational, human, 
                environmental, or public safety needs in communities 
                with an inadequate number of such professionals;
                    ``(B) that may include a salary in excess of the 
                maximum living allowance authorized in subsection 
                (a)(3) of section 140, as provided in subsection (c) of 
                such section; and
                    ``(C) that are sponsored by public or private not-
                for-profit employers who agree to pay 100 percent of 
                the salaries and benefits (other than any national 
                service educational award under subtitle D) of the 
                participants.
            ``(9) A program in which economically disadvantaged 
        individuals who are between the ages of 16 and 24 years of age, 
        inclusive, are provided with opportunities to perform service 
        that, while enabling such individuals to obtain the education 
        and employment skills necessary to achieve economic self-
        sufficiency, will help their communities meet--
                    ``(A) the housing needs of low-income families and 
                the homeless; and
                    ``(B) the need for community facilities in low-
                income areas.
            ``(10) A national service entrepreneur program that 
        identifies, recruits, and trains gifted young adults of all 
        backgrounds and assists them in designing solutions to 
        community problems.
            ``(11) An intergenerational program that combines students, 
        out-of-school youths, and older adults as participants to 
        provide needed community services.
            ``(12) Such other national service programs addressing 
        unmet human, educational, environmental, or public safety needs 
        as the Corporation may designate.
    ``(b) Qualification Criteria to Determine Eligibility.--
            ``(1) Establishment by corporation.--The Corporation shall 
        establish qualification criteria for different types of 
        national service programs for the purpose of determining 
        whether a particular national service program should be 
        considered to be a national service program eligible to receive 
        assistance or approved national service positions under this 
        subtitle.
            ``(2) Consultation.--In establishing qualification criteria 
        under paragraph (1), the Corporation shall consult with 
        organizations and individuals who are experts regarding 
        national service or regarding the delivery of human, 
        educational, environmental, or public safety services to 
        communities or persons.
            ``(3) Application to subgrants.--The qualification criteria 
        established by the Corporation under paragraph (1) shall also 
        be used by each recipient of assistance under section 121(a) 
        that uses any portion of the assistance to conduct a grant 
        program to support other national service programs.
    ``(c) National Service Priorities.--
            ``(1) Establishment by corporation.--In order to 
        concentrate national efforts on meeting certain unmet human, 
        educational, environmental, or public safety needs and to 
        achieve the other purposes of this Act, the Corporation may 
        establish, and periodically alter, priorities regarding the 
        types of national service programs to be assisted under section 
        121 and the purposes for which such assistance may be used.
            ``(2) Notice to applicants.--The Corporation shall provide 
        advance notice to potential applicants of any national service 
        priorities to be in effect under this subsection for a fiscal 
        year. The notice shall specifically include--
                    ``(A) a description of any alteration made in the 
                priorities since the previous notice; and
                    ``(B) a description of the national service 
                programs that are designated by the Corporation under 
                section 133(d)(2) as eligible for priority 
                consideration in the next competitive distribution of 
                assistance under section 121(a).
            ``(3) Application to subgrants.--Any national service 
        priorities established by the Corporation under this subsection 
        shall also be used by each recipient of funds under section 
        121(a) that uses any portion of the assistance to conduct a 
        grant program to support other national service programs.

``SEC. 123. TYPES OF NATIONAL SERVICE POSITIONS ELIGIBLE FOR APPROVAL 
              FOR NATIONAL SERVICE EDUCATIONAL AWARDS.

    ``The Corporation may approve of any of the following service 
positions as an approved national service position that includes the 
national service educational award described in subtitle D as one of 
the benefits to be provided for successful service in the position:
            ``(1) A position for a participant in a national service 
        program described in section 122(a) that receives assistance 
        under subsection (a) or (b) of section 121.
            ``(2) A position for a participant in a program that--
                    ``(A) is carried out by a State, a subdivision of a 
                State, an Indian tribe, a public or private not-for-
                profit organization, an institution of higher 
                education, or a Federal agency; and
                    ``(B) would be eligible to receive assistance under 
                section 121(a), based on criteria established by the 
                Corporation, but has not applied for such assistance.
            ``(3) A position involving service as a VISTA volunteer 
        under title I of the Domestic Volunteer Service Act of 1973 (42 
        U.S.C. 4951 et seq.).
            ``(4) A position facilitating service-learning in a program 
        described in section 122(a)(3) that is eligible for assistance 
        under part I of subtitle B.
            ``(5) A position for a participant in the Civilian 
        Community Corps under subtitle E.
            ``(6) A position involving service as a crew leader in a 
        youth corps program or a similar position supporting a national 
        service program that receives an approved national service 
        position.
            ``(7) Such other national service positions as the 
        Corporation considers to be appropriate.

``SEC. 124. TYPES OF PROGRAM ASSISTANCE.

    ``(a) Planning Assistance.--The Corporation may provide assistance 
under section 121 to a qualified applicant that submits an application 
under section 130 for the planning of a national service program. 
Assistance provided in accordance with this subsection may cover a 
period of not more than 1 year.
    ``(b) Operational Assistance.--The Corporation may provide 
assistance under section 121 to a qualified applicant that submits an 
application under section 130 for the establishment, operation, or 
expansion of a national service program. Assistance provided in 
accordance with this subsection may cover a period of not more than 3 
years, but may be renewed by the Corporation upon consideration of a 
new application under section 130.
    ``(c) Replication Assistance.--The Corporation may provide 
assistance under section 121 to a qualified applicant that submits an 
application under section 130 for the expansion of a proven national 
service program to another geographical location. Assistance provided 
in accordance with this subsection may cover a period of not more than 
3 years, but may be renewed by the Corporation upon consideration of a 
new application under section 130.
    ``(d) Application to Subgrants.--The requirements of this section 
shall apply to any State or other applicant receiving assistance under 
section 121 that proposes to conduct a grant program using the 
assistance to support other national service programs.

``SEC. 125. TRAINING AND TECHNICAL ASSISTANCE.

    ``(a) Training Programs.--The Corporation may conduct, directly or 
by grant or contract, appropriate training programs regarding national 
service in order to--
            ``(1) improve the ability of national service programs 
        assisted under section 121 to meet human, educational, 
        environmental, or public safety needs in communities--
                    ``(A) where services are needed most; and
                    ``(B) where programs do not currently exist or are 
                currently too limited to meet community needs;
            ``(2) promote leadership development in such programs;
            ``(3) improve the instructional and programmatic quality of 
        such programs to build an ethic of civic responsibility;
            ``(4) develop the management and budgetary skills of 
        program operators; and
            ``(5) provide for or improve the training provided to the 
        participants in such programs.
    ``(b) Technical Assistance.--The Corporation may make appropriate 
technical assistance available to States, labor organizations, 
organizations operated by young adults, and other entities described in 
section 121 that desire--
            ``(1) to develop national service programs; or
            ``(2) to apply for assistance under such section or under a 
        grant program conducted using assistance provided under such 
        section.

``SEC. 126. OTHER SPECIAL ASSISTANCE.

    ``(a) Support for State Commissions.--
            ``(1) Assistance authorized.--The Corporation may make 
        assistance available to assist a State to establish or operate 
        the State Commission on National Service required to be 
        established by the State under section 178.
            ``(2) Amount of assistance.--The amount of assistance that 
        may be provided to a State Commission under this subsection, 
        together with other Federal funds available to establish or 
        operate the State Commission, may not exceed--
                    ``(A) 85 percent of the total cost to establish or 
                operate the State Commission for the first year for 
                which the State Commission receives assistance under 
                this subsection; and
                    ``(B) such smaller percentage of such cost as the 
                Corporation may establish for the second, third, and 
                fourth years of such assistance in order to ensure that 
                the Federal share does not exceed 50 percent of such 
                costs for the fifth year, and any subsequent year, for 
                which the State Commission receives assistance under 
                this subsection.
    ``(b) Disaster Service.--The Corporation may undertake activities 
to involve youth corps programs described in section 122(a)(2) and 
other programs that receive assistance under the national service laws 
in disaster relief efforts.
    ``(c) Challenge Grants for National Service Programs.--
            ``(1) Assistance authorized.--The Corporation may make 
        challenge grants under this subsection to a national service 
        program that receives assistance under section 121. The 
        Corporation shall develop criteria for the selection of 
        challenge grant recipients so as to make the grants widely 
        available to a variety of high-quality national service 
        programs.
            ``(2) Amount of assistance.--A challenge grant under this 
        subsection may provide not more than $1 of assistance under 
        this subsection for each $1 in cash raised by the national 
        service program from private sources in excess of amounts 
        required to be provided by the program to satisfy matching 
        funds requirements under section 121(e). The Corporation shall 
        establish a ceiling on the amount of assistance that may be 
        provided to a national service program under this subsection.

              ``PART II--APPLICATION AND APPROVAL PROCESS

``SEC. 129. PROVISION OF ASSISTANCE AND APPROVED NATIONAL SERVICE 
              POSITIONS BY COMPETITIVE AND OTHER MEANS.

    ``(a) Allotments of Assistance and Approved Positions to States and 
Indian Tribes.--
            ``(1) 33\1/3\ percent allotment of assistance.--Of the 
        funds allocated by the Corporation for provision of assistance 
        under subsections (a) and (b) of section 121 for a fiscal year, 
        the Corporation shall make a grant under section 121(a) (and a 
        corresponding allotment of approved national service positions) 
        to each of the several States, the District of Columbia, and 
        the Commonwealth of Puerto Rico that has an application 
        approved by the Corporation under section 133. The amount 
        allotted as a grant to each such State under this paragraph for 
        a fiscal year shall be equal to the amount that bears the same 
        ratio to 33\1/3\ percent of the allocated funds for that fiscal 
        year as the population of the State bears to the total 
        population of the several States, the District of Columbia, and 
        the Commonwealth of Puerto Rico.
            ``(2) One percent allotment of assistance.--Of the funds 
        allocated by the Corporation for provision of assistance under 
        subsections (a) and (b) of section 121 for a fiscal year, the 
        Corporation shall reserve 1 percent of the allocated funds for 
        grants under section 121(a) to Indian tribes, the Virgin 
        Islands, Guam, American Samoa, and the Commonwealth of the 
        Northern Mariana Islands, to be allotted by the Corporation on 
        a competitive basis in accordance with their respective needs. 
        Palau shall also be eligible for a grant under this paragraph 
        from the 1 percent allotment until such time as the Compact of 
        Free Association with Palau is ratified.
            ``(3) Effect of failure to apply.--If a State or Indian 
        tribe fails to apply for, or fails to give notice to the 
        Corporation of its intent to apply for, an allotment under this 
        subsection, the Corporation shall use the amount that would 
        have been allotted under this subsection to the State or Indian 
        tribe--
                    ``(A) to make grants (and provide approved national 
                service positions in connection with such grants) to 
                other eligible entities under section 121 that propose 
                to carry out national service programs in the State or 
                on behalf of the Indian tribe; and
                    ``(B) after making grants under paragraph (1), to 
                make a reallotment to other States and Indian tribes 
                with approved applications under section 130.
    ``(b) Reservation of Approved Positions.--
            ``(1) Number reserved.--Except as provided in paragraph 
        (2), the Corporation shall ensure that each individual selected 
        during a fiscal year for assignment as a VISTA volunteer under 
        title I of the Domestic Volunteer Service Act of 1973 (42 
        U.S.C. 4951 et seq.) or as a participant in the Civilian 
        Community Corps Demonstration Program under subtitle E shall 
        receive the national service educational award described in 
        subtitle D if the individual satisfies the eligibility 
        requirements for the award. Funds for approved national service 
        positions required by this paragraph for a fiscal year shall be 
        deducted from the total funding for approved national service 
        positions to be available for distribution under subsections 
        (a) and (d) for that fiscal year.
            ``(2) Exception.--If the total number of approved national 
        service positions to be available for distribution under 
        subsections (a) and (d) for a fiscal year does not exceed 200 
        percent of the number of such positions that would be required 
        to satisfy paragraph (1) for that fiscal year, the Corporation 
        shall not reserve the national service educational award for 
        individuals described in such paragraph who are selected during 
        that fiscal year.
    ``(c) Reservation for Special Assistance.--Subject to section 
501(a)(2), of the funds allocated by the Corporation for provision of 
assistance under subsections (a) and (b) of section 121 for a fiscal 
year, the Corporation may reserve such amount as the Corporation 
considers to be appropriate for the purpose of making assistance 
available under sections 125 and 126. However, the Corporation may not 
reserve more than $10,000,000 for a fiscal year for challenge grants 
under section 126(c).
    ``(d) Competitive Distribution of Remaining Funds and Approved 
Positions.--
            ``(1) State competition.--Of the funds allocated by the 
        Corporation for provision of assistance under subsections (a) 
        and (b) of section 121 for a fiscal year, the Corporation shall 
        use not less than 33\1/3\ percent of the allocated funds to 
        make grants to States on a competitive basis under section 
        121(a).
            ``(2) Federal agencies and other applicants.--The 
        Corporation shall distribute on a competitive basis to 
        subdivisions of States, Indian tribes, public and private not-
        for-profit organizations (including labor organizations), 
        institutions of higher education, and Federal agencies the 
        remainder of the funds allocated by the Corporation for 
        provision of assistance under section 121 for a fiscal year, 
        after operation of paragraph (1) and subsections (a) and (c).
            ``(3) Limitations.--The Corporation may limit the 
        categories of eligible applicants for assistance under 
        paragraph (2) consistent with the priorities established by the 
        Corporation under section 133(d)(2).
    ``(e) Application Required.--The allotment of assistance and 
approved national service positions to a State or Indian tribe under 
subsection (a), and the competitive distribution of assistance and 
approved national service positions under subsection (d), shall be made 
by the Corporation only pursuant to an application submitted by a State 
or other applicant under section 130 and approved by the Corporation 
under section 133.
    ``(f) Distribution of Approved Positions Subject to Available 
Funds.--The Corporation may not distribute approved national service 
positions under this section for a fiscal year in excess of the number 
of such positions for which the Corporation has sufficient available 
funds in the National Service Trust for that fiscal year to satisfy the 
maximum possible obligations to be incurred by the United States to 
provide the national service educational award corresponding to service 
in these positions.
    ``(g) Sponsorship of Approved National Service Positions.--
            ``(1) Sponsorship authorized.--The Corporation may enter 
        into agreements with persons or entities who offer to sponsor 
        national service positions for which the person or entity will 
        be responsible for supplying the funds necessary to provide a 
        national service educational award. The distribution of these 
        approved national service positions shall be made pursuant to 
        the agreement, and the creation of these positions shall not be 
        taken into consideration in determining the number of approved 
        national service positions to be available for distribution 
        under this section.
            ``(2) Deposit of contribution.--Funds provided pursuant to 
        an agreement under paragraph (1) and any other funds 
        contributed to the Corporation to support the activities of the 
        Corporation under the national service laws shall be deposited 
        in the National Service Trust established in section 145 until 
        such time as the funds are needed.

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

    ``(a) Time, Manner, and Content of Application.--To be eligible to 
receive assistance under section 121 and approved national service 
positions for participants who serve in the national service programs 
to be carried out using the assistance, a State, subdivision of a 
State, Indian tribe, public or private not-for-profit organization, 
institution of higher education, or Federal agency shall prepare and 
submit to the Corporation an application at such time, in such manner, 
and containing such information as the Corporation may reasonably 
require.
    ``(b) Types of Application Information.--In order to have adequate 
information upon which to consider an application under section 133, 
the Corporation may require the following information to be provided in 
an application submitted under subsection (a):
            ``(1) A description of the national service programs 
        proposed to be carried out directly by the applicant using 
        assistance provided under section 121.
            ``(2) A description of the national service programs that 
        are selected by the applicant to receive a grant from 
        assistance requested under section 121 and a description of the 
        process and criteria by which the programs were selected.
            ``(3) A description of other funding sources to be used, or 
        sought to be used, for the national service programs referred 
        to in paragraphs (1) and (2), and, if the application is 
        submitted for the purpose of seeking a renewal of assistance, a 
        description of the success of the programs in reducing their 
        reliance on Federal funds.
            ``(4) A description of the extent to which the projects to 
        be conducted using the assistance will address unmet human, 
        educational, environmental, or public safety needs and produce 
        a direct benefit for the community in which the projects are 
        performed.
            ``(5) A description of the plan to be used to recruit 
        participants, including economically disadvantaged youth, for 
        the national service programs referred to in paragraphs (1) and 
        (2).
            ``(6) A description of the manner in which the national 
        service programs referred to in paragraphs (1) and (2) build on 
        existing programs, including Federal programs;
            ``(7) A description of the manner in which the national 
        service programs referred to in paragraphs (1) and (2) will 
        involve participants--
                    ``(A) in projects that build an ethic of civic 
                responsibility and produce a positive change in the 
                lives of participants through training and 
                participation in meaningful service experiences and 
                opportunities for reflection on such experiences; and
                    ``(B) in leadership positions in implementing and 
                evaluating the program.
            ``(8) Measurable goals for the national service programs 
        referred to in paragraphs (1) and (2), and a strategy to 
        achieve such goals, in terms of--
                    ``(A) the impact to be made in meeting unmet human, 
                educational, environmental, or public safety needs; and
                    ``(B) the service experience to be provided to 
                participants in the programs.
            ``(9) A description of the manner and extent to which the 
        national service programs referred to in paragraphs (1) and (2) 
        conform to the national service priorities established by the 
        Corporation under section 122(c).
            ``(10) A description of the past experience of the 
        applicant in operating a comparable program or in conducting a 
        grant program in support of other comparable programs.
            ``(11) A description of the type and number of proposed 
        service positions in which participants will receive the 
        national service educational award described in subtitle D and 
        a description of the manner in which approved national service 
        positions will be apportioned by the applicant.
            ``(12) A description of the manner and extent to which 
        participants, representatives of the community served, 
        community-based agencies with a demonstrated record of 
        experience in providing services, and labor organizations 
        contributed to the development of the national service programs 
        referred to in paragraphs (1) and (2), including the identity 
        of the individual representing the labor organization who was 
        consulted and the nature of the consultation.
            ``(13) Such other information as the Corporation may 
        reasonably require.
    ``(c) Application to Receive Only Approved National Service 
Positions.--
            ``(1) Applicability of subsection.--This subsection shall 
        apply in the case of an application in which--
                    ``(A) the applicant is not seeking assistance under 
                subsection (a) or (b) of section 121, but requests 
                national service educational awards for individuals 
                serving in service positions described in section 123; 
                or
                    ``(B) the applicant requests national service 
                educational awards for service positions described in 
                section 123, but the positions are not positions in a 
                national service program described in section 122(a) 
                for which assistance may be provided under subsection 
                (a) or (b) of section 121.
            ``(2) Special application requirements.--For the 
        applications described in paragraph (1), the Corporation shall 
        establish special application requirements in order to 
        determine--
                    ``(A) whether the service positions meet unmet 
                human, educational, environmental, or public safety 
                needs and meet the criteria for assistance under this 
                subtitle; and
                    ``(B) whether the Corporation should approve the 
                positions as approved national service positions that 
                include the national service educational award 
                described in subtitle D as one of the benefits to be 
                provided for successful service in the position.
    ``(d) Special Rule for State Applicants.--
            ``(1) Submission by state commission.--The application of a 
        State for approved national service positions or for a grant 
        under section 121(a) shall be submitted by the State 
        Commission.
            ``(2) Competitive selection.--The application of a State 
        shall contain an assurance that all assistance provided under 
        section 121(a) to the State will be used to support national 
        service programs that were selected by the State on a 
        competitive basis.
            ``(3) Assistance to nonstate entities.--The application of 
        a State shall also contain an assurance that not less than 60 
        percent of the assistance will be used to make grants in 
        support of national service programs other than national 
        service programs carried out by a State agency. The Corporation 
        may permit a State to deviate from the percentage specified by 
        this subsection if the State has not received a sufficient 
        number of acceptable applications to comply with the 
        percentage.
    ``(e) Special Rule for Certain Service Sponsors.--In the case of an 
applicant that proposes to serve as the service sponsor, the 
application shall include the written concurrence of any local labor 
organization representing employees of the applicant who are engaged in 
the same or substantially similar work as that proposed to be carried 
out.
    ``(f) Limitation on Same Project in Multiple Applications.--The 
Corporation shall reject an application submitted under this section if 
a project proposed to be conducted using assistance requested by the 
applicant is already described in another application pending before 
the Corporation.

``SEC. 131. NATIONAL SERVICE PROGRAM ASSISTANCE  REQUIREMENTS.

    ``(a) Impact on Communities.--An application submitted under 
section 130 shall include an assurance by the applicant that any 
national service program carried out by the applicant using assistance 
provided under section 121 and any national service program supported 
by a grant made by the applicant using such assistance will--
            ``(1) address unmet human, educational, environmental, or 
        public safety needs through services that provide a direct 
        benefit to the community in which the service is preformed; and
            ``(2) comply with the nonduplication and nondisplacement 
        requirements of section 177.
    ``(b) Impact on Participants.--An application submitted under 
section 130 shall also include an assurance by the applicant that any 
national service program carried out by the applicant using assistance 
provided under section 121 and any national service program supported 
by a grant made by the applicant using such assistance will--
            ``(1) provide participants in the national service program 
        with the training, skills, and knowledge necessary for the 
        projects that participants are called upon to perform; and
            ``(2) provide support services to participants, such as the 
        provision of appropriate information and support--
                    ``(A) to those participants who are completing a 
                term of service and making the transition to other 
                educational and career opportunities; and
                    ``(B) to those participants who are school dropouts 
                in order to assist those participants in earning the 
                equivalent of a high school diploma.
    ``(c) Consultation.--An application submitted under section 130 
shall also include an assurance by the applicant that any national 
service program carried out by the applicant using assistance provided 
under section 121 and any national service program supported by a grant 
made by the applicant using such assistance will--
            ``(1) provide in the design, recruitment, and operation of 
        the program for broad-based input from the community served, 
        community-based agencies with a demonstrated record of 
        experience in providing services, and local labor organizations 
        representing employees of service sponsors;
            ``(2) prior to the placement of participants, consult with 
        any local labor organization representing employees in the area 
        who are engaged in the same or similar work as that proposed to 
        be carried out by such program to ensure compliance with the 
        nondisplacement requirements specified in section 177; and
            ``(3) in the case of a program that is not funded through a 
        State, consult with and coordinate activities with the State 
        Commission for the State in which the program operates.
    ``(d) Evaluation and Performance Goals.--
            ``(1) In general.--An application submitted under section 
        130 shall also include an assurance by the applicant that the 
        applicant will--
                    ``(A) arrange for an independent evaluation of any 
                national service program carried out using assistance 
                provided to the applicant under section 121;
                    ``(B) develop measurable performance goals and 
                evaluation methods (such as the use of surveys of 
                participants and persons served), which are to be used 
                as part of such evaluation to determine the impact of 
                the program--
                            ``(i) on communities and persons served by 
                        the projects performed by the program;
                            ``(ii) on participants who take part in the 
                        projects; and
                            ``(iii) in such other areas as the 
                        Corporation may require; and
                    ``(C) cooperate with any evaluation activities 
                undertaken by the Corporation.
            ``(2) Alternative evaluation requirements.--The Corporation 
        may establish alternative evaluation requirements for national 
        service programs based upon the amount of assistance received 
        under section 121 or received by a grant made by a recipient of 
        assistance under such section. The determination of whether a 
        national service program is covered by this paragraph shall be 
        made in such manner as the Corporation may prescribe.
    ``(e) Living Allowances and Other Inservice Benefits.--Except as 
provided in section 140(c), an application submitted under section 124 
shall also include an assurance by the applicant that the applicant 
will--
            ``(1) provide a living allowance and other benefits 
        specified in section 140 to participants in any national 
        service program carried out by the applicant using assistance 
        provided under section 121; and
            ``(2) require that each national service program that 
        receives a grant from the applicant using such assistance will 
        also provide a living allowance and other benefits specified in 
        section 140 to participants in the program.
    ``(f) Selection of Participants From Individuals Recruited by 
Corporation or State Commissions.--The Corporation may also require an 
assurance by the applicant that any national service program carried 
out by the applicant using assistance provided under section 121 and 
any national service program supported by a grant made by the applicant 
using such assistance will select a portion of the participants for the 
program from among prospective participants recruited by the 
Corporation or State Commissions under section 138(d). The Corporation 
may specify a minimum percentage of participants to be selected from 
the national leadership pool established under section 138(e) and may 
vary the percentage for different types of national service programs.

``SEC. 132. INELIGIBLE SERVICE CATEGORIES.

    ``An application submitted to the Corporation under section 130 
shall include an assurance by the applicant that any national service 
program carried out using assistance provided under section 121 and any 
approved national service position provided to an applicant will not be 
used to perform service that provides a direct benefit to any--
            ``(1) business organized for profit;
            ``(2) labor union;
            ``(3) partisan political organization; or
            ``(4) organization engaged in religious activities, unless 
        such service does not involve the use of assistance provided 
        under section 121 or participants to give religious 
        instruction, conduct worship services, or engage in any form of 
        proselytization.

``SEC. 133. CONSIDERATION OF APPLICATIONS.

    ``(a) Corporation Consideration of Certain Criteria.--The 
Corporation shall apply the criteria described in subsections (c) and 
(d) in determining whether--
            ``(1) to approve an application submitted under section 130 
        and provide assistance under section 121 to the applicant; and
            ``(2) to approve service positions described in the 
        application as national service positions that include the 
        national service educational award described in subtitle D and 
        provide such approved national service positions to the 
        applicant.
    ``(b) Application to Subgrants.--A State or other entity that uses 
assistance provided under section 121(a) to support national service 
programs selected on a competitive basis to receive a share of the 
assistance shall use the criteria described in subsections (c) and (d) 
when considering an application submitted by a national service program 
to receive a portion of such assistance or an approved national service 
position. The application of the State or other entity under section 
130 shall contain a certification that the State or other entity 
complied with these criteria in the selection of national service 
programs to receive assistance.
    ``(c) Assistance Criteria.--The criteria required to be applied in 
evaluating applications submitted under section 130 are as follows:
            ``(1) The quality of the national service program proposed 
        to be carried out directly by the applicant or supported by a 
        grant from the applicant.
            ``(2) The innovative aspects of the national service 
        program, and the feasibility of replicating the program.
            ``(3) The sustainability of the national service program, 
        based on evidence such as the existence--
                    ``(A) of strong and broad-based community support 
                for the program; and
                    ``(B) of multiple funding sources or private 
                funding for the program.
            ``(4) The quality of the leadership of the national service 
        program, the past performance of the program, and the extent to 
        which the program builds on existing programs.
            ``(5) The extent to which participants of the national 
        service program are recruited from among residents of the 
        communities in which projects are to be conducted, and the 
        extent to which participants and community residents are 
        involved in the design, leadership, and operation of the 
        program.
            ``(6) The extent to which projects would be conducted in 
        areas where they are needed most, such as--
                    ``(A) communities designated as enterprise zones or 
                redevelopment areas, targeted for special economic 
                incentives, or otherwise identifiable as having high 
                concentrations of low-income people;
                    ``(B) areas that are environmentally distressed; or
                    ``(C) areas adversely affected by reductions in 
                defense spending or the closure or realignment of 
                military installations.
            ``(7) In the case of applicants other than States, the 
        extent to which the application is consistent with the 
        application under section 130 of the State in which the 
        projects would be conducted.
            ``(8) Such other criteria as the Corporation considers to 
        be appropriate.
    ``(d) Other Considerations.--
            ``(1) Geographic diversity.--The Corporation shall ensure 
        that recipients of assistance provided under section 121 are 
        geographically diverse and include projects to be conducted in 
        those urban and rural areas in a State with the highest rates 
        of poverty.
            ``(2) Priorities.--The Corporation may designate, under 
        such criteria as may be established by the Corporation, certain 
        national service programs or types of national service programs 
        described in section 122(a) for priority consideration in the 
        competitive distribution of funds under section 129(d)(2). In 
        designating national service programs to receive priority, the 
        Corporation may include--
                    ``(A) national service programs carried out by 
                another Federal agency;
                    ``(B) national service programs that conform to the 
                national service priorities in effect under section 
                122(c);
                    ``(C) innovative national service programs;
                    ``(D) national service programs that are well 
                established in one or more States at the time of the 
                application and are proposed to be expanded to 
                additional States using assistance provided under 
                section 121;
                    ``(E) grant programs in support of other national 
                service programs if the grant programs are to be 
                conducted by not-for-profit organizations with a 
                demonstrated and extensive expertise in the provision 
                of services to meet human, educational, environmental, 
                or public safety needs; and
                    ``(F) professional corps programs described in 
                section 122(a)(8).
    ``(e) Rejection of State Applications.--
            ``(1) Notification of state applicants.--If the Corporation 
        rejects an application submitted by a State Commission under 
        section 130 for funds described in section 129(a)(1), the 
        Corporation shall promptly notify the State Commission of the 
        reasons for the rejection of the application.
            ``(2) Resubmission and reconsideration.--The Corporation 
        shall provide a State Commission notified under paragraph (1) 
        with a reasonable opportunity to revise and resubmit the 
        application. At the request of the State Commission, the 
        Corporation shall provide technical assistance to the State 
        Commission as part of the resubmission process. The Corporation 
        shall promptly reconsider an application resubmitted under this 
        paragraph.
            ``(3) Reallotment.--The amount of any State's allotment 
        under section 129(a) for a fiscal year that the Corporation 
        determines will not be provided for that fiscal year shall be 
        available for distribution by the Corporation as provided in 
        paragraph (3) of such subsection.

               ``PART III--NATIONAL SERVICE PARTICIPANTS

``SEC. 137. DESCRIPTION OF PARTICIPANTS.

    ``(a) In General.--For purposes of this subtitle, an individual 
shall be considered to be a participant in a national service program 
carried out using assistance provided under section 121 if the 
individual--
            ``(1) meets such eligibility requirements as may be 
        established by the program;
            ``(2) is selected by the program to serve in a position 
        with the program;
            ``(3) will serve in the program for a term of service 
        specified in section 139 to be performed before, during, or 
        after attendance at an institution of higher education;
            ``(4) is 17 years of age or older at the time the 
        individual begins the term of service;
            ``(5) has received a high school diploma or its equivalent 
        or agrees to obtain a high school diploma or its equivalent and 
        the individual did not drop out of an elementary or secondary 
        school to enroll in the program; and
            ``(6) is a citizen of the United States or lawfully 
        admitted for permanent residence.
    ``(b) Special Rules for Certain Youth Programs.--An individual 
shall be considered to be a participant in a youth corps program 
described in section 122(a)(2) or a program described in section 
122(a)(9) that is carried out with assistance provided under section 
121(a) if the individual--
            ``(1) satisfies the requirements specified in subsection 
        (a), except paragraph (4) of such subsection; and
            ``(2) is between the ages of 16 and 25, inclusive, at the 
        time the individual begins the term of service.

``SEC. 138. SELECTION OF NATIONAL SERVICE PARTICIPANTS.

    ``(a) Selection Process.--Subject to subsections (b) and (c) and 
section 131(f), the actual recruitment and selection of an individual 
to serve in a national service program receiving assistance under 
section 121 or to fill an approved national service position shall be 
conducted by the State, subdivision of a State, Indian tribe, public or 
private not-for-profit organization, institution of higher education, 
Federal agency, or other entity to which the assistance and approved 
national service positions are provided.
    ``(b) Nondiscrimination and Nonpolitical Selection of 
Participants.--The recruitment and selection of individuals to serve in 
national service programs receiving assistance under section 121 or to 
fill approved national service positions shall be consistent with the 
requirements of section 175.
    ``(c) Second Term.--Acceptance into a national service program to 
serve a second term of service under section 139 shall only be 
available to individuals who perform satisfactorily in their first term 
of service.
    ``(d) Recruitment and Placement.--The Corporation and each State 
Commission shall establish a system to recruit individuals who desire 
to perform national service and to assist the placement of these 
individuals in approved national service positions, including positions 
available under title I of the Domestic Volunteer Service Act of 1973 
(42 U.S.C. 4951). The Corporation and State Commissions shall 
disseminate information regarding available approved national service 
positions through cooperation with secondary schools, institutions of 
higher education, employment service offices, and other appropriate 
entities, particularly those organizations that provide outreach to 
disadvantaged youths.
    ``(e) National Leadership Pool.--
            ``(1) Selection and training.--From among individuals 
        recruited under subsection (d), the Corporation may select 
        individuals with significant leadership potential, as 
        determined by the Corporation, to receive special training to 
        enhance their leadership ability. The leadership training shall 
        be provided by the Corporation directly or through a grant or 
        contract.
            ``(2) Emphasis on certain individuals.--In selecting 
        individuals to receive leadership training under this 
        subsection, the Corporation shall make special efforts to 
        select individuals who have served in the Peace Corps, as VISTA 
        volunteers, or as participants in national service programs 
        receiving assistance under section 121.
            ``(3) Assignment.--At the request of a program that 
        receives assistance under the national service laws, the 
        Corporation may assign an individual who receives leadership 
        training under paragraph (1) to work with the program in a 
        leadership position and carry out assignments not otherwise 
        performed by regular participants. An individual assigned to a 
        program shall be considered to be a participant of the program.

``SEC. 139. TERMS OF SERVICE.

    ``(a) In General.--As a condition of receiving a national service 
education award under subtitle D, a participant in an approved national 
service position shall be required to perform full- or part-time 
national service for at least one term of service specified in 
subsection (b).
    ``(b) Term of Service.--
            ``(1) Full-time service.--An individual performing full-
        time national service in an approved national service position 
        shall agree to participate in the program sponsoring the 
        position for not less than 1,700 hours during a period of not 
        less than 9 months and not more than 1 year.
            ``(2) Part-time service.--Except as provided in paragraph 
        (3), an individual performing part-time national service in an 
        approved national service position shall agree to participate 
        in the program sponsoring the position for not less than 1,700 
        hours during a period of not less than 1 year and not more than 
        2 years.
            ``(3) Reduction in hours of part-time service.--The 
        Corporation may reduce the number of hours required to be 
        served to successfully complete part-time national service to a 
        level determined by the Corporation, except that any reduction 
        in the required term of service shall include a corresponding 
        reduction in the amount of any national service educational 
        award that may be available under subtitle D with regard to 
        that service.
    ``(c) Release From Completing Term of Service.--
            ``(1) Release authorized.--A recipient of assistance under 
        section 121 or a program sponsoring an approved national 
        service position may release a participant from completing a 
        term of service in the position--
                    ``(A) for compelling personal circumstances as 
                demonstrated by the participant; or
                    ``(B) for cause.
            ``(2) Effect of release.--If the released participant was 
        serving in an approved national service position, the 
        participant may receive a portion of the national service 
        educational award corresponding to that service in the manner 
        provided in section 147(b), except that a participant released 
        for cause may not receive any portion of the national service 
        educational award.

``SEC. 140. LIVING ALLOWANCES FOR NATIONAL SERVICE PARTICIPANTS.

    ``(a) Provision of Living Allowance.--
            ``(1) Living allowance permitted.--Subject to paragraph 
        (3), a national service program carried out using assistance 
        provided under section 121 shall provide to each participant in 
        the program a living allowance in such an amount as may be 
        established by the program.
            ``(2) Limitation on federal share.--The amount of the 
        annual living allowance provided under paragraph (1) that may 
        be paid using assistance provided under section 121 and using 
        any other Federal funds shall not exceed the lesser of--
                    ``(A) 85 percent of the total average annual 
                subsistence allowance provided to VISTA volunteers 
                under section 105 of the Domestic Volunteer Service Act 
                of 1973 (42 U.S.C. 4955); and
                    ``(B) 85 percent of the annual living allowance 
                established by the national service program involved.
            ``(3) Maximum living allowance.--Except as provided in 
        subsection (c), the total amount of an annual living allowance 
        that may be provided to a participant in a national service 
        program shall not exceed 200 percent of the average annual 
        subsistence allowance provided to VISTA volunteers under 
        section 105 of the Domestic Volunteer Service Act of 1973 (42 
        U.S.C. 4955).
            ``(4) Proration of living allowance.--The amount provided 
        as a living allowance under this subsection shall be prorated 
        in the case of a participant who is authorized to serve a 
        reduced term of service under section 139(b)(3).
            ``(5) Treatment of living allowance.--The amount provided 
        as a living allowance under this subsection, up to the maximum 
        living allowance authorized by paragraph (3), shall not be 
        taken into account in determining the need or eligibility of 
        any person for benefits or assistance, or the amount of such 
        benefits or assistance, under any Federal, State, or local 
        program financed in whole or in part with Federal funds. 
        Nothing in the preceding sentence shall be construed to exclude 
        amounts received as a living allowance from gross income under 
        section 61 of the Internal Revenue Code of 1986 (26 U.S.C. 61).
    ``(b) Coverage of Certain Employment-Related Taxes.--To the extent 
a national service program that receives assistance under section 121 
is subject, with respect to the participants in the program, to the 
taxes imposed on an employer under sections 3111 and 3301 of the 
Internal Revenue Code of 1986 (26 U.S.C. 3111, 3301) and taxes imposed 
on an employer under a workmen's compensation act, the assistance 
provided to the program under section 121 shall include an amount 
sufficient to cover 85 percent of such taxes based upon the lesser of--
            ``(1) the total average annual subsistence allowance 
        provided to VISTA volunteers under section 105 of the Domestic 
        Volunteer Service Act of 1973 (42 U.S.C. 4955); and
            ``(2) the annual living allowance established by the 
        program.
    ``(c) Exception From Maximum Living Allowance for Certain 
Assistance.--A professional corps program described in section 
122(a)(8) that desires to provide a living allowance in excess of the 
maximum allowance authorized in subsection (a)(3) may still apply for 
such assistance, except that--
            ``(1) any assistance provided to the applicant under 
        section 121 may not be used to pay for any portion of the 
        allowance;
            ``(2) the applicant shall apply for such assistance only by 
        submitting an application to the Corporation for assistance on 
        a competitive basis; and
            ``(3) the national service program must be operated 
        directly by the applicant and must meet urgent, unmet human, 
        educational, environmental, or public safety needs, as 
        determined by the Corporation.
    ``(d) Health Insurance.--A State or other recipient of assistance 
under section 121 shall provide a basic health care policy for each 
full-time participant in a national service program carried out or 
supported using the assistance if the participant is not otherwise 
covered by a health care policy. Not more than 85 percent of the cost 
of a premium shall be provided by the Corporation, with the remaining 
cost paid by the entity receiving assistance under section 121. The 
Corporation shall establish minimum standards that all plans must meet 
in order to qualify for payment under this part, any circumstances in 
which an alternative health care policy may be substituted for the 
basic health care policy, and mechanisms to prohibit participants from 
dropping existing coverage.
    ``(e) Child Care.--
            ``(1) Availability.--A State or other recipient of 
        assistance under section 121 shall--
                    ``(A) make child care available for children of 
                each full-time participant who serves in a national 
                service program carried out or supported by the 
                recipient using the assistance, including individuals 
                who need such child care in order to participate in the 
                program; or
                    ``(B) provide a child care allowance to each full-
                time participant in a national service program who 
                needs such assistance in order to participate in the 
                program.
            ``(2) Guidelines.--The Corporation shall establish 
        guidelines regarding the circumstances under which child care 
        must be made available under this subsection and the value of 
        any allowance to be provided.
    ``(f) Waiver of Limitation on Federal Share.--The Corporation may 
waive in whole or in part the limitation on the Federal share specified 
in this section with respect to a particular national service program 
in any fiscal year if the Corporation determines that such a waiver 
would be equitable due to a lack of available financial resources at 
the local level.

``SEC. 141. NATIONAL SERVICE EDUCATIONAL AWARDS.

    ``(a) Eligibility Generally.--A participant in a national service 
program carried out using assistance provided to an applicant under 
section 121 shall be eligible for the national service educational 
award described in subtitle D if the participant--
            ``(1) serves in an approved national service position; and
            ``(2) satisfies the eligibility requirements specified in 
        section 146 with respect to service in that approved national 
        service position.
    ``(b) Special Rule for VISTA Volunteers.--A VISTA volunteer who 
serves in an approved national service position shall be ineligible for 
a national service educational award if the VISTA volunteer accepts the 
stipend authorized under section 105(a)(1) of the Domestic Volunteer 
Service Act of 1973 (42 U.S.C. 4955(a)(1).''.
    (b) Table of Contents.--Section 1(b) of the National and Community 
Service Act of 1990 (Public Law 101-610; 104 Stat. 3127) is amended by 
striking the items relating to subtitle C of title I of such Act and 
inserting the following new items:

              ``Subtitle C--National Service Trust Program

                ``Part I--Investment in National Service

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

``Sec. 129. Provision of assistance and approved national service 
                            positions by competitive and other means.
``Sec. 130. Application for assistance and approved national service 
                            positions.
``Sec. 131. National service program assistance requirements.
``Sec. 132. Ineligible service categories.
``Sec. 133. Consideration of applications.
               ``Part III--National Service Participants

``Sec. 137. Description of participants.
``Sec. 138. Selection of national service participants.
``Sec. 139. Required terms of service of national service participants.
``Sec. 140. Living allowances for national service participants.
``Sec. 141. National service educational awards.''.

SEC. 102. NATIONAL SERVICE TRUST AND PROVISION OF NATIONAL SERVICE 
              EDUCATIONAL AWARDS.

    (a) Establishment of Trust; Provision of Awards.--Subtitle D of 
title I of the National and Community Service Act of 1990 (42 U.S.C. 
12571 et seq.) is amended to read as follows:

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

``SEC. 145. ESTABLISHMENT OF THE NATIONAL SERVICE TRUST.

    ``(a) Establishment.--There is established in the Treasury of the 
United States an account to be known as the National Service Trust. The 
Trust shall consist of--
            ``(1) from the amounts appropriated to the Corporation and 
        made available to carry out this subtitle pursuant to section 
        501(a)(1), such amounts as the Corporation may designate to be 
        available for the payment of--
                    ``(A) national service educational awards; and
                    ``(B) interest expenses pursuant to subsection (e);
            ``(2) any amounts received by the Corporation as gifts, 
        bequests, devise, or otherwise pursuant to section 192(a)(2); 
        and
            ``(3) the interest on, and proceeds from the sale or 
        redemption of, any obligations held by the Trust.
    ``(b) Investment of Trust.--It shall be the duty of the Secretary 
of the Treasury to invest in full the amounts appropriated to the 
Trust. Except as otherwise expressly provided in instruments concerning 
a gift, bequest, devise, or other donation and agreed to by the 
Corporation, such investments may be made only in interest-bearing 
obligations of the United States or in obligations guaranteed as to 
both principal and interest by the United States. For such purpose, 
such obligations may be acquired (1) on original issue at the issue 
price, or (2) by purchase of outstanding obligations at the 
marketplace. Any obligation acquired by the Trust may be sold by the 
Secretary at the market price.
    ``(c) Expenditures From Trust.--Amounts in the Trust shall be 
available for payments of national service educational awards in 
accordance with section 148.
    ``(d) Reports to Congress on Receipts and Expenditures.--The 
Corporation shall submit an annual report to the Congress on the 
financial status of the Trust. Such report shall--
            ``(1) specify the amount deposited to the Trust from the 
        most recent appropriation to the Corporation, the amount 
        received by the Corporation as gifts or bequest during the 
        period covered by the report, and any amounts obtained by the 
        Trust pursuant to subsection (a)(3);
            ``(2) identify the number of individuals who are currently 
        performing service to qualify, or have qualified, for national 
        service educational awards;
            ``(3) identify the number of individuals whose ability to 
        claim national service educational awards during the period 
        covered by the report--
                    ``(A) has been reduced pursuant to section 147(b); 
                or
                    ``(B) has lapsed pursuant to section 146(d); and
            ``(4) estimate the number of additional approved national 
        service positions which the Corporation will be able to make 
        available under subtitle C on the basis of any accumulated 
        surplus in the Trust above the amount required to provide 
        national service educational awards to individuals identified 
        under paragraph (2), including any amounts available as a 
        result of the circumstances referred to in paragraph (3).

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

    ``(a) Eligible Individuals.--An individual shall receive a national 
service educational award from the National Service Trust if the 
individual--
            ``(1) successfully completes the required term of service 
        described in subsection (b) in an approved national service 
        position;
            ``(2) was 17 years of age or older at the time the 
        individual began serving in the approved national service 
        position or was an out-of-school youth serving in an approved 
        national service position with a youth corps program described 
        in section 122(a)(2) or a program described in section 
        122(a)(9);
            ``(3) has received a high school diploma, or the equivalent 
        of such diploma, at the time the individual uses the national 
        service educational award; and
            ``(4) is a citizen of the United States or lawfully 
        admitted for permanent residence.
    ``(b) Term of Service.--The term of service for an approved 
national service position shall not be less than the full- or part-time 
term of service specified in section 139(b).
    ``(c) Limitation on Number of Terms of Service for Awards.--
Although an individual may serve more than 2 terms of service described 
in subsection (b) in an approved national service position, the 
individual shall receive a national service educational award from the 
National Service Trust only on the basis of the first and second of 
such terms of service.
    ``(d) Time for Use of Educational Award.--
            ``(1) Five-year requirement.--An individual eligible to 
        receive a national service educational award under this section 
        may not use such award after the end of the 5-year period 
        beginning on the date the individual completes the term of 
        service in an approved national service position that is the 
        basis of the award.
            ``(2) Exception.--The Corporation may extend the period 
        within which an individual may use a national service 
        educational award if the Corporation determines that the 
        individual--
                    ``(A) was unavoidably prevented from using the 
                national service educational award during the original 
                5-year period; or
                    ``(B) performed another term of service in an 
                approved national service position during that period.

``SEC. 147. DETERMINATION OF THE AMOUNT OF THE NATIONAL SERVICE 
              EDUCATIONAL AWARD.

    ``(a) Amount Generally.--Except as provided in subsection (b), an 
individual described in section 146(a) who successfully completes a 
required term of service in an approved national service position shall 
receive a national service educational award having a value equal to 
$5,000 for each of not more than 2 of such terms of service.
    ``(b) Award for Partial Completion of Service.--If an individual 
serving in an approved national service position is released in 
accordance with section 139(c)(1)(A) from completing the term of 
service agreed to by the individual, the Corporation may provide the 
individual with that portion of the national service educational award 
approved for the individual that corresponds to the quantity of the 
term of service actually completed by the individual.

``SEC. 148. DISBURSEMENT OF NATIONAL SERVICE EDUCATIONAL AWARDS.

    ``(a) In General.--Amounts in the Trust shall be available--
            ``(1) to repay student loans in accordance with subsection 
        (b);
            ``(2) to pay all or part of the cost of attendance at an 
        institution of higher education in accordance with subsection 
        (c);
            ``(3) to pay expenses incurred in participating in an 
        approved school-to-work program in accordance with subsection 
        (d); and
            ``(4) to pay interest expenses in accordance with 
        regulations prescribed pursuant to subsection (e).
    ``(b) Use of Educational Award to Repay Outstanding Student 
Loans.--
            ``(1) Application by eligible individuals.--An eligible 
        individual under section 146 who desires to apply his or her 
        national service educational award to the repayment of 
        qualified student loans shall submit, in a manner prescribed by 
        the Corporation, an application to the Corporation that--
                    ``(A) identifies, or permits the Corporation to 
                identify readily, the holder or holders of such loans;
                    ``(B) indicates, or permits the Corporation to 
                determine readily, the amounts of principal and 
                interest outstanding on the loans; and
                    ``(C) contains or is accompanied by such other 
                information as the Corporation may require.
            ``(2) Disbursement of repayments.--Upon receipt of an 
        application from an eligible individual of an application that 
        complies with paragraph (1), the Corporation shall, as promptly 
        as practicable consistent with paragraph (5), disburse the 
        amount of the national service educational award to which the 
        eligible individual is entitled. Such disbursement shall be 
        made by check or other means that is payable to the holder of 
        the loan and requires the endorsement or other certification by 
        the eligible individual.
            ``(3) Application of disbursed amounts.--If the amount 
        disbursed under paragraph (2) is less than the principal and 
        accrued interest on any qualified student loan, such amount 
        shall first be applied to the repayment of principal.
            ``(4) Reports by holders.--Any holder receiving a loan 
        payment pursuant to this subsection shall submit to the 
        Corporation such information as the Corporation may require to 
        verify that such payment was applied in accordance with this 
        subsection and any regulations prescribed to carry out this 
        subsection.
            ``(5) Authority to aggregate payments.--The Corporation 
        may, by regulation, provide for the aggregation of payments to 
        holders under this subsection.
            ``(6) Definition of qualified student loans.--The term 
        `qualified student loans' means--
                    ``(A) any loan made, insured, or guaranteed 
                pursuant to title IV of the Higher Education Act of 
                1965 (20 U.S.C. 1070 et seq.), other than a loan to a 
                parent of a student pursuant to section 428B of such 
                Act (20 U.S.C. 1078-2); and
                    ``(B) any loan made pursuant to title VII or VIII 
                of the Public Health Service Act (42 U.S.C. 292a et 
                seq.).
            ``(7) Definition of holder.--The term `holder' with respect 
        to any eligible loan means the original lender or, if the loan 
        is subsequently sold, transferred, or assigned to some other 
        person, and such other person acquires a legally enforceable 
        right to receive payments from the borrower, such other person.
    ``(c) Use of Educational Awards to Pay Current Educational 
Expenses.--
            ``(1) Application by eligible individual.-- An eligible 
        individual under section 146 who desires to apply his or her 
        national service educational award to the payment of current 
        educational expenses shall, on a form prescribed by the 
        Corporation, submit an application to the institution of higher 
        education in which the student will be enrolled that contains 
        such information as the Corporation may require to verify the 
        individual's eligibility.
            ``(2) Submission of requests for payment by institutions.--
        An institution of higher education that receives one or more 
        applications that comply with paragraph (1) shall submit to the 
        Corporation a statement, in a manner prescribed by the 
        Corporation, that--
                    ``(A) identifies each eligible individual filing an 
                application under paragraph (1) for a disbursement of 
                the individual's national service educational award 
                under this subsection;
                    ``(B) specifies the amounts for which such eligible 
                individuals are, consistent with paragraph (6), 
                qualified for disbursement under this subsection;
                    ``(C) certifies that (i) the institution of higher 
                education has in effect a program participation 
                agreement under section 487 of the Higher Education Act 
                of 1965 (20 U.S.C. 1094), and (ii) the institution's 
                eligibility to participate in any of the programs under 
                title IV of such Act (20 U.S.C. 1070 et seq.) has not 
                been limited, suspended, or terminated; and
                    ``(D) contains such provisions concerning financial 
                compliance as the Corporation may require.
            ``(3) Disbursement of payments.--Upon receipt of a 
        statement from an institution of higher education that complies 
        with paragraph (2), the Corporation shall, subject to paragraph 
        (4), disburse the total amount of the national service 
        educational awards for which eligible individuals who have 
        submitted applications to that institution under paragraph (1) 
        are qualified. Such disbursement shall be made by check or 
        other means that is payable to the institution and requires the 
        endorsement or other certification by the eligible individual.
            ``(4) Multiple disbursements required.--The total amount 
        required to be disbursed to an institution of higher education 
        under paragraph (3) for any period of enrollment shall be 
        disbursed by the Corporation in 2 or more installments, none of 
        which exceeds \1/2\ of such total amount. The interval between 
        the first and second such installment shall not be less than 
        \1/2\ of such period of enrollment, except as necessary to 
        permit the second installment to be paid at the beginning of 
        the second semester, quarter, or similar division of such 
        period of enrollment.
            ``(5) Refund rules.--The Corporation shall, by regulation, 
        provide for the refund to the Corporation (and the crediting to 
        the national service educational award of an eligible 
        individual) of amounts disbursed to institutions for the 
        benefit of eligible individuals who withdraw or otherwise fail 
        to complete the period of enrollment for which the assistance 
        was provided. Such regulations shall be consistent with the 
        fair and equitable refund policies required of institutions 
        pursuant to section 484B of the Higher Education Act of 1965 
        (20 U.S.C. 1091b). Amounts refunded to the Trust pursuant to 
        this paragraph may be used by the Corporation to fund 
        additional approved national service positions under subtitle 
        C.
            ``(6) Maximum award.--The portion of an eligible 
        individual's total available national service educational award 
        that may be disbursed under this subsection for any period of 
        enrollment shall not exceed the difference between--
                    ``(A) the eligible individual's cost of attendance 
                for such period of enrollment, determined in accordance 
                with section 472 of the Higher Education Act of 1965 
                (20 U.S.C. 1087ll); and
                    ``(B) the sum of (i) the student's estimated 
                financial assistance for such period under part A of 
                title IV of such Act (20 U.S.C. 1070 et seq.), and (ii) 
                the student's veterans' education benefits, determined 
                in accordance with section 480(c) of such Act (20 
                U.S.C. 1087vv(c)).
    ``(d) Use of Educational Award to Participate in Approved School-
to-Work Programs.--The Corporation shall by regulation provide for the 
payment of national service educational awards to permit eligible 
individuals to participate in school-to-work programs approved by the 
Secretaries of Labor and Education.
    ``(e) Interest Payments During Forbearance on Loan Repayment.--The 
Corporation may provide by regulation for the payment on behalf of an 
eligible individual of interest that accrues during a period for which 
such individual has obtained forbearance in the repayment of a 
qualified student loan (as defined in subsection (b)(6)), if the 
eligible individual successfully completes his or her required term of 
service (as determined under section 146(b)). Such regulations shall be 
prescribed after consultation with the Secretary of Education.
    ``(f) Treatment of Benefits.--Notwithstanding any other provision 
of law, national service awards and other benefits received under this 
section shall not be taken into account in determining the need or 
eligibility of any person for benefits or assistance, or the amount of 
such benefits or assistance, under any Federal, State, or local program 
financed in whole or in part with Federal funds. The amount of any 
national service award or other benefits received under this section 
shall not be considered income for purposes of the Internal Revenue 
Code of 1986.
    ``(g) Definition of Institution of Higher Education.--
Notwithstanding section 101 of this Act, for purposes of this section 
the term `institution of higher education' has the meaning provided by 
section 481(a) of the Higher Education Act of 1965 (20 U.S.C. 
1088(a)).''.
    (b) Table of Contents.--Section 1(b) of the National and Community 
Service Act of 1990 (Public Law 101-610; 104 Stat. 3127) is amended by 
striking the items relating to subtitle D of title I of such Act and 
inserting the following new items:

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

``Sec. 145. Establishment of the National Service Trust.
``Sec. 146. Individuals eligible to receive a national service 
                            educational award from the Trust.
``Sec. 147. Determination of the amount of the national service 
                            educational award.
``Sec. 148. Disbursement of national service educational awards.''.
    (c) Conforming Amendments.--
            (1) Eligibility for subsidized stafford loans.--Section 
        428(a)(2)(C)(i) of the Higher Education Act of 1965 (20 U.S.C. 
        1078(a)(2)(C)(i)) is amended by inserting after ``parts C and E 
        of this title,'' the following: ``any national service 
        educational award such student will receive under subtitle D of 
        title I of the National and Community Service Act of 1990 (42 
        U.S.C. 12751 et seq.),''.
            (2) Forbearance in the collection of stafford loans.--
        Section 428 of the Higher Education Act of 1965 is amended--
                    (A) in subsection (b)(1)--
                            (i) by redesignating subparagraphs (W), 
                        (X), and (Y) as subparagraphs (X), (Y), and 
                        (Z), respectively; and
                            (ii) by inserting immediately after 
                        subparagraph (V) the following new 
                        subparagraph:
                    ``(W)(i) provides that, upon written request, a 
                lender shall grant a borrower forbearance on such terms 
                as are otherwise consistent with the regulations of the 
                Secretary, during periods in which the borrower is 
                serving in a national service position, for which he or 
                she receives a national service educational award under 
                the National Service Trust Act of 1993;
                    ``(ii) provides that clauses (iii) and (iv) of 
                subparagraph (V) shall also apply to a forbearance 
                granted under this subparagraph; and
                    ``(iii) provides that interest shall continue to 
                accrue on a loan for which a borrower receives 
                forbearance under this subparagraph and shall be 
                capitalized or paid by the borrower;''; and
                    (B) in subsection (c)(3)(A), by striking 
                ``subsection (b)(1)(V)'' and inserting ``subsection 
                (b)(1) (V) and (W)''.
            (3) Eligibility for stafford loan forgiveness.--Section 
        428J of the Higher Education Act of 1965 (20 U.S.C. 1078-10) is 
        amended--
                    (A) in subsection (b)(1), is amended by striking 
                ``October 1, 1992'' and inserting ``October 1, 1989'';
                    (B) in subsection (c), by adding at the end the 
                following new paragraph:
            ``(5) Ineligibility of national service educational award 
        recipients.--No student borrower may, for the same volunteer 
        service, receive a benefit under both this section and subtitle 
        D of title I of the National and Community Service Act of 1990 
        (42 U.S.C. 12751 et seq.).''; and
                    (C) by adding at the end the following new 
                subsection:
    ``(h) Treatment of Benefits.--Notwithstanding any other provision 
of law, the amount of any loan repaid by the Secretary under this 
section shall not be taken into account in determining the need or 
eligibility of any person for benefits or assistance, or the amount of 
such benefits or assistance, under any Federal, State, or local program 
financed in whole or in part with Federal funds. The amount of any loan 
repaid by the Secretary under this section shall not be considered 
income for purposes of the Internal Revenue Code of 1986.''.
            (4) Eligibility for perkins loan forgiveness.--Section 
        465(a) of the Higher Education Act of 1965 (20 U.S.C. 
        1087ee(a)) is amended by adding at the end the following new 
        paragraph:
            ``(6) No borrower may, for the same volunteer service, 
        receive a benefit under both this section and subtitle D of 
        title I of the National and Community Service Act of 1990 (42 
        U.S.C. 12751 et seq.).''.
            (5) Impact on general needs analysis.--Section 480(j) of 
        such Act (20 U.S.C. 1087vv(j)) is amended by adding at the end 
        the following new paragraph:
            ``(3) Notwithstanding paragraph (1), any national service 
        educational award such student will receive under subtitle D of 
        title I of the National and Community Service Act of 1990 (42 
        U.S.C. 12751 et seq.) shall not be taken into account in 
        determining estimated financial assistance not received under 
        this title.''.

SEC. 103. SCHOOL-BASED AND COMMUNITY-BASED SERVICE-LEARNING PROGRAMS.

    (a) Amendments to Serve-America Programs.--
            (1) Purpose.--The purpose of this subsection is to improve 
        the Serve-America programs established under part I of subtitle 
        B of the National and Community Service Act of 1990, and to 
        enable the Corporation for National Service, and the entities 
        receiving financial assistance under such part, to--
                    (A) work with teachers in elementary schools and 
                secondary schools within a community, and with 
                community-based agencies, to create and offer service-
                learning opportunities for all school-age youth;
                    (B) educate teachers, and faculty providing teacher 
                training and retraining, about service-learning, and 
                incorporate service-learning opportunities into 
                classroom teaching to strengthen academic learning;
                    (C) coordinate the work of adult volunteers who 
                work with elementary and secondary schools as part of 
                their community service activities; and
                    (D) work with employers in the communities to 
                ensure that projects introduce the students to various 
                careers and expose the students to needed further 
                education and training.
            (2) Programs.--Subtitle B of title I of the National and 
        Community Service Act of 1990 (42 U.S.C. 12501 et seq.) is 
        amended by striking the subtitle heading and all that follows 
        through the end of part I and inserting the following:

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

                    ``PART I--SERVE-AMERICA PROGRAMS

            ``Subpart A--School-Based Programs for Students

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

    ``(a) Use of Funds.--The Corporation, in consultation with the 
Secretary of Education, may make grants under section 112(b)(1), and 
allotments under subsections (a) and (b)(2) of section 112, to States 
and Indian tribes to pay for the Federal share of--
            ``(1) planning and building the capacity of the States or 
        Indian tribes (which may be accomplished through grants or 
        contracts with qualified organizations) to implement school-
        based service-learning programs, including--
                    ``(A) providing training for teachers, supervisors, 
                personnel from community-based agencies (particularly 
                with regard to the utilization of participants), and 
                trainers, to be conducted by qualified individuals or 
                organizations that have experience with service-
                learning;
                    ``(B) developing service-learning curricula to be 
                integrated into academic programs, including the age-
                appropriate learning component described in section 
                114(d)(5)(B);
                    ``(C) forming local partnerships described in 
                paragraph (2) or (4) to develop school-based service-
                learning programs in accordance with this subpart;
                    ``(D) devising appropriate methods for research and 
                evaluation of the educational value of service-learning 
                and the effect of service-learning activities on 
                communities; and
                    ``(E) establishing effective outreach and 
                dissemination of information to ensure the broadest 
                possible involvement of community-based agencies with 
                demonstrated effectiveness in working with school-age 
                youth in their communities;
            ``(2) implementing, operating, or expanding school-based 
        service-learning programs, which may include paying for the 
        cost of the recruitment, training, supervision, placement, 
        salaries, and benefits of service-learning coordinators, 
        through State distribution of Federal funds made available 
        under this subpart to projects operated by local partnerships 
        among--
                    ``(A) local educational agencies; and
                    ``(B) one or more community partners that--
                            ``(i) shall include a public or private 
                        not-for-profit organization that will make 
                        projects available for participants, who shall 
                        be students; and
                            ``(ii) may include a private for-profit 
                        business or private elementary or secondary 
                        school;
            ``(3) planning of school-based service-learning programs 
        through State distribution of Federal funds made available 
        under this subpart to local educational agencies, which 
        planning may include paying for the cost of--
                    ``(A) the salaries and benefits of service-learning 
                coordinators; or
                    ``(B) the recruitment, training, supervision, and 
                placement of service-learning coordinators who are 
                participants in a program under subtitle C or receive a 
                national service educational award under subtitle D,
        who will identify the community partners described in paragraph 
        (2)(B) and assist in the design and implementation of a program 
        described in paragraph (2); and
            ``(4) implementing, operating, or expanding school-based 
        service-learning programs involving adult volunteers to utilize 
        service-learning to improve the education of students through 
        State distribution of Federal funds made available under this 
        part to local partnerships among--
                    ``(A) local educational agencies; and
                    ``(B) one or more--
                            ``(i) public or private not-for-profit 
                        organizations;
                            ``(ii) other educational agencies; or
                            ``(iii) private for-profit businesses,
        that coordinate and operate projects for participants, who 
        shall be students.
    ``(b) Duties of Service-Learning Coordinator.--A service-learning 
coordinator referred to in paragraph (2) or (3) of subsection (a) shall 
provide services to a local educational agency by--
            ``(1) expanding the awareness of teachers of the potential 
        of service-learning in strengthening the educational 
        achievement, leadership development, and substantive learning, 
        of students;
            ``(2) providing technical assistance and information to, 
        and facilitating the training of, teachers who want to use 
        service-learning in their classrooms;
            ``(3) assisting local partnerships described in subsection 
        (a) in the planning, development, and execution of service-
        learning projects;
            ``(4) recruiting and supervising adult volunteers, or 
        individuals who are participants in a program under subtitle C 
        or receive a national service educational award under subtitle 
        D, to expand service-learning opportunities; and
            ``(5) coordinating the activities of the service-learning 
        coordinator with the activities of the committee described in 
        section 114(d)(1), and, where appropriate, assisting the 
        committee.
    ``(c) Related Expenses.--A partnership, local educational agency, 
or other qualified organization that receives financial assistance 
under this subpart may, in carrying out the activities described in 
subsection (a), use such assistance to pay for the Federal share of 
reasonable costs related to the supervision of participants, program 
administration, transportation, insurance, evaluations, and for other 
reasonable expenses related to the activities.

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

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

``SEC. 111B. AUTHORITY TO ASSIST PUBLIC OR PRIVATE NOT-FOR-PROFIT 
              ORGANIZATIONS.

    ``(a) In General.--The Corporation may make a grant under section 
112(b)(1) to a public or private not-for-profit organization that--
            ``(1) has experience with service-learning;
            ``(2) was in existence 1 year before the date on which the 
        organization submitted an application under section 114(a); and
            ``(3) meets such other criteria as the Chairperson may 
        establish.
    ``(b) Use of Funds.--Such an organization may use a grant made 
under subsection (a) to make grants to partnerships described in 
paragraph (2) or (4) of section 111(a) to implement, operate, or expand 
school-based service-learning programs as described in such section and 
provide technical assistance and training to appropriate persons.

``SEC. 112. GRANTS AND ALLOTMENTS.

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

``SEC. 113. STATE OR TRIBAL APPLICATIONS.

    ``(a) Submission.--To be eligible to receive a grant under section 
112(b)(1), an allotment under subsection (a) or (b)(2) of section 112, 
a reallotment under section 112(c), or a grant under section 112(d), a 
State, acting through the State educational agency, or an Indian tribe, 
shall prepare, submit to the Corporation, and obtain approval of, an 
application at such time and in such manner as the Chairperson may 
reasonably require.
    ``(b) Contents.--An application that is submitted under subsection 
(a) with respect to service-learning programs described in section 111 
shall include--
            ``(1) a 3-year strategic plan, or a revision of a 
        previously approved 3-year strategic plan, for promoting 
        service-learning through the programs, which plan shall contain 
        such information as the Chairperson may reasonably require, 
        such as--
                    ``(A) a description of the goals to be attained in 
                promoting service-learning through such programs;
                    ``(B) a description of the resources and 
                organization needed to achieve the goals of such 
                programs within elementary schools and secondary 
                schools; and
                    ``(C) a description of the manner in which--
                            ``(i) such programs and the activities to 
                        be carried out under such programs relate to 
                        the goals described in subparagraph (A);
                            ``(ii) the applicant will evaluate the 
                        success of the programs and the extent of 
                        community involvement in the programs, and 
                        measure the extent to which the programs meet 
                        the goals described in subparagraph (A);
                            ``(iii) in reviewing applications submitted 
                        under section 114(c), the applicant has ranked 
                        the applications according to the criteria 
                        described in section 115(b), has considered the 
                        factors described in section 115(a), and has 
                        reviewed the applications in a manner that 
                        ensured the equitable treatment of all such 
                        applications;
                            ``(iv) the programs will be coordinated 
                        with--
                                    ``(I) the education reform efforts 
                                of the applicant;
                                    ``(II) other efforts to meet the 
                                National Education Goals;
                                    ``(III) other service activities in 
                                the State or serving the Indian tribe; 
                                and
                                    ``(IV) other education programs, 
                                training programs, social service 
                                programs, and appropriate programs that 
                                serve school-age youth, that are 
                                authorized under Federal law;
                            ``(v) the applicant will disseminate 
                        information, conduct outreach, and take other 
                        measures, to encourage cooperative efforts 
                        among the local educational agencies, local 
                        government agencies, community-based agencies, 
                        State agencies, and private for-profit 
                        businesses that will carry out the service-
                        learning programs proposed by the applicant, to 
                        develop and provide projects, including those 
                        that involve the participation of urban, 
                        suburban, and rural students working together;
                            ``(vi) the applicant will promote 
                        appropriate projects in such programs for 
                        economically disadvantaged students, students 
                        with limited basic skills, students in foster 
                        care who are becoming too old for foster care, 
                        students of limited-English proficiency, 
                        homeless students, and students with 
                        disabilities;
                            ``(vii) service-learning training and 
                        technical assistance will be provided through 
                        the programs--
                                    ``(I) to State and local 
                                educational agency personnel, federally 
                                assisted education specialists in the 
                                State or serving the Indian tribe, and 
                                local recipients of grants under this 
                                subpart, to raise the awareness of 
                                service-learning among such personnel, 
                                specialists, and recipients; and
                                    ``(II) by qualified and experienced 
                                individuals employed by the State or 
                                Indian tribe or through grants or 
                                contracts with such individuals;
                            ``(viii) a service-learning network will be 
                        established for the State or Indian tribe, 
                        comprised of expert teachers and administrators 
                        who have carried out successful service-
                        learning activities within the State or serving 
                        the Indian tribe; and
                            ``(ix) the applicant will use payments from 
                        sources described in section 116(a)(2)(B) to 
                        expand projects for students through the 
                        programs proposed by the applicant;
            ``(2) assurances that--
                    ``(A) the applicant will keep such records and 
                provide such information to the Corporation with 
                respect to the programs as may be required for fiscal 
                audits and program evaluation; and
                    ``(B) the applicant will comply with the 
                nonduplication and nondisplacement requirements of 
                section 177; and
            ``(3) such additional information as the Chairperson may 
        reasonably require.

``SEC. 114. LOCAL APPLICATIONS.

    ``(a) Application to Corporation to Make Grants for School-Based 
Service-Learning Programs.--
            ``(1) In general.--To be eligible to receive a grant in 
        accordance with section 111B(a) to make grants relating to 
        school-based service-learning programs described in section 
        111(a)(2), a grantmaking entity shall prepare, submit to the 
        Corporation, and obtain approval of, an application.
            ``(2) Submission.--Such application shall be submitted at 
        such time and in such manner, and shall contain such 
        information, as the Chairperson may reasonably require. Such 
        application shall include a proposal to assist such programs in 
        more than 1 State.
    ``(b) Direct Application to Corporation to Carry Out School-Based 
Service-Learning Programs in Nonparticipating States.--To be eligible 
to receive a grant from the Corporation in the circumstances described 
in section 111A to carry out an activity described in such section, a 
partnership or agency described in such section shall prepare, submit 
to the Corporation, and obtain approval of, an application. Such 
application shall be submitted at such time and in such manner, and 
shall contain such information, as the Chairperson may reasonably 
require.
    ``(c) Application to State or Indian Tribe to Receive Assistance to 
Carry Out School-Based Service-Learning Programs.--
            ``(1) In general.--Any--
                    ``(A) qualified organization that desires to 
                receive financial assistance under this subpart from a 
                State or Indian tribe for an activity described in 
                section 111(a)(1);
                    ``(B) partnership described in section 111(a)(2) 
                that desires to receive such assistance from a State, 
                Indian tribe, or grantmaking entity for an activity 
                described in section 111(a)(2);
                    ``(C) agency described in section 111(a)(3) that 
                desires to receive such assistance from a State or 
                Indian tribe for an activity described in such section; 
                or
                    ``(D) partnership described in section 111(a)(4) 
                that desires to receive such assistance from a State or 
                Indian tribe for an activity described in such section,
        to be carried out through a service-learning program described 
        in section 111, shall prepare, submit to the State educational 
        agency, Indian tribe, or grantmaking entity, and obtain 
        approval of, an application for the program.
            ``(2) Submission.--Such application shall be submitted at 
        such time and in such manner, and shall contain such 
        information, as the agency, tribe, or entity may reasonably 
        require.
    ``(d) Contents of Application.--An application that is submitted 
under subsection (a), (b), or (c) with respect to a service-learning 
program described in section 111 shall, at a minimum, contain a 
proposal that includes--
            ``(1) information specifying the membership and role of an 
        established advisory committee, consisting of representatives 
        of community-based agencies including service recipients, 
        students, parents, teachers, administrators, representatives of 
        agencies that serve school-age youth or older adults, school 
        board members, representatives of local labor organizations, 
        and representatives of business, that will provide advice with 
        respect to the program;
            ``(2) a description of--
                    ``(A) the goals of the program which shall include 
                goals that are quantifiable and demonstrate any 
                benefits from the program to participants and the 
                community;
                    ``(B) service-learning projects to be provided 
                under the program, and evidence that participants will 
                make a sustained commitment to service in the projects;
                    ``(C) the manner in which participants in the 
                program were or will be involved in the design and 
                operation of the program;
                    ``(D) training for supervisors, teachers, service 
                sponsors, and participants in the program;
                    ``(E) the manner in which exemplary service will be 
                recognized under the program; and
                    ``(F) any resources that will permit continuation 
                of the program, if needed, after the assistance 
                received under this subpart for the program has ended;
            ``(3) information that shall include--
                    ``(A) a disclosure of whether or not the 
                participants will receive academic credit for 
                participation in the program;
                    ``(B) the expected number of participants in the 
                program and the hours of service that such participants 
                will provide individually and as a group;
                    ``(C) the proportion of expected participants in 
                the program who are economically disadvantaged, 
                including participants with disabilities; and
                    ``(D) any role of adult volunteers in implementing 
                the program, and the manner in which such volunteers 
                will be recruited;
            ``(4) in the case of an application submitted by a local 
        partnership, a written agreement, between the members of the 
        local partnership, stating that the program was jointly 
        developed by the members and that the program will be jointly 
        executed by the members; and
            ``(5) assurances that--
                    ``(A) prior to the placement of a participant, the 
                entity carrying out the program will consult with any 
                local labor organization representing employees in the 
                area who are engaged in the same or similar work as 
                that proposed to be carried out by such program, to 
                prevent the displacement and protect the rights of such 
                employees;
                    ``(B) the entity carrying out the program will 
                develop an age-appropriate learning component for 
                participants in the program that shall include a chance 
                for participants to analyze and apply their service 
                experiences; and
                    ``(C) the entity carrying out the program will 
                comply with the nonduplication and nondisplacement 
                requirements of section 177 and grievance procedure 
                requirements of section 176(f).

``SEC. 115. CONSIDERATION OF APPLICATIONS.

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

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

    ``(a) In General.--To the extent consistent with the number of 
students in the State or Indian tribe or in the school district of the 
local educational agency involved who are enrolled in private not-for-
profit elementary and secondary schools, such State, Indian tribe, or 
agency shall (after consultation with appropriate private school 
representatives) make provision--
            ``(1) for the inclusion of services and arrangements for 
        the benefit of such students so as to allow for the equitable 
        participation of such students in the programs implemented to 
        carry out the objectives and provide the benefits described in 
        this subpart; and
            ``(2) for the training of the teachers of such students so 
        as to allow for the equitable participation of such teachers in 
        the programs implemented to carry out the objectives and 
        provide the benefits described in this subpart.
    ``(b) Waiver.--If a State, Indian tribe, or local educational 
agency is prohibited by law from providing for the participation of 
students or teachers from private not-for-profit schools as required by 
subsection (a), or if the Corporation determines that a State, Indian 
tribe, or local educational agency substantially fails or is unwilling 
to provide for such participation on an equitable basis, the 
Chairperson shall waive such requirements and shall arrange for the 
provision of services to such students and teachers. Such waivers shall 
be subject to consultation, withholding, notice, and judicial review 
requirements in accordance with paragraphs (3) and (4) of section 
1017(b) of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 2727(b)).

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

    ``(a) Share.--
            ``(1) In general.--The Federal share attributable to this 
        subpart of the cost of carrying out a program for which a grant 
        or allotment is made under this subpart may not exceed--
                    ``(A) 90 percent of the total cost of the program 
                for the first year for which the program receives 
                assistance under this subpart;
                    ``(B) 80 percent of the total cost of the program 
                for the second year for which the program receives 
                assistance under this subpart;
                    ``(C) 70 percent of the total cost of the program 
                for the third year for which the program receives 
                assistance under this subpart; and
                    ``(D) 50 percent of the total cost of the program 
                for the fourth year, and for any subsequent year, for 
                which the program receives assistance under this 
                subpart.
            ``(2) Calculation.--In providing for the remaining share of 
        the cost of carrying out such a program, each recipient of 
        assistance under this subpart--
                    ``(A) shall provide for such share through a 
                payment in cash or in kind, fairly evaluated, including 
                facilities, equipment, or services; and
                    ``(B) may provide for such share through State 
                sources, local sources, or Federal sources (other than 
                funds made available under the national service laws).
    ``(b) Waiver.--The Chairperson may waive the requirements of 
subsection (a) in whole or in part with respect to any such program in 
any fiscal year if the Corporation determines that such a waiver would 
be equitable due to a lack of available financial resources at the 
local level.

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

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

``SEC. 116B. DEFINITIONS.

    ``As used in this subpart:
            ``(1) Grantmaking entity.--The term `grantmaking entity' 
        means an organization described in section 111B(a).
            ``(2) School-based.--The term `school-based' means based in 
        an elementary school or a secondary school.
            ``(3) Student.--Notwithstanding section 101(28), the term 
        `student' means an individual who is enrolled in an elementary 
        or secondary school on a full- or part-time basis.

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

``SEC. 117. DEFINITIONS.

    ``As used in this subpart:
            ``(1) Community-based service program.--The term 
        `community-based service program' means a program described in 
        section 117A(b)(1)(A).
            ``(2) Grantmaking entity.--The term `grantmaking entity' 
        means a qualified organization that--
                    ``(A) submits an application under section 117C(a) 
                to make grants to qualified organizations; and
                    ``(B) was in existence 1 year before the date on 
                which the organization submitted the application.
            ``(3) Qualified organization.--The term `qualified 
        organization' means a public or private not-for-profit 
        organization with experience working with school-age youth that 
        meets such criteria as the Chairperson may establish.

``SEC. 117A. GENERAL AUTHORITY.

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

``SEC. 117B. STATE APPLICATIONS.

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

``SEC. 117C. LOCAL APPLICATIONS.

    ``(a) Application to Corporation to Make Grants for Community-Based 
Service Programs.--To be eligible to receive a grant from the 
Corporation under section 117A(a) to make grants under section 
117A(b)(1), a grantmaking entity shall prepare, submit to the 
Corporation, and obtain approval of, an application that proposes a 
community-based service program to be carried out through grants made 
to qualified organizations. Such application shall be submitted at such 
time and in such manner, and shall contain such information, as the 
Chairperson may reasonably require.
    ``(b) Direct Application to Corporation to Carry Out Community-
Based Service Programs.--To be eligible to receive a grant from the 
Corporation under section 117A(a) to implement, operate, expand, or 
replicate a community service program, a qualified organization shall 
prepare, submit to the Corporation, and obtain approval of, an 
application that proposes a community-based service program to be 
carried out at multiple sites, or that proposes an innovative 
community-based service program. Such application shall be submitted at 
such time and in such manner, and shall contain such information, as 
the Chairperson may reasonably require.
    ``(c) Application to State Commission or Grantmaking Entity to 
Receive Grants to Carry Out Community-Based Service Programs.--To be 
eligible to receive a grant from a State Commission or grantmaking 
entity under section 117A(b)(1), a qualified organization shall 
prepare, submit to the Commission or entity, and obtain approval of, an 
application. Such application shall be submitted at such time and in 
such manner, and shall contain such information, as the Commission or 
entity may reasonably require.
    ``(d) Requirements of Application.--An application submitted under 
subsection (a), (b), or (c) shall, at a minimum, contain--
            ``(1) a description of any community-based service program 
        proposed to be implemented, operated, expanded, or replicated 
        directly by the applicant using assistance provided under this 
        subpart;
            ``(2) a description of any grant program proposed to be 
        conducted by the applicant with assistance provided under this 
        subpart to support a community-based service program;
            ``(3) a proposal for carrying out the community-based 
        service program that describes the manner in which the entity 
        carrying out the program will--
                    ``(A) provide preservice and inservice training, 
                for supervisors and participants, that will be 
                conducted by qualified individuals, or qualified 
                organizations, that have experience in community-based 
                service programs;
                    ``(B) include economically disadvantaged 
                individuals as participants in the program proposed by 
                the applicant;
                    ``(C) provide an age-appropriate service-learning 
                component described in section 114(d)(5)(B);
                    ``(D) conduct an appropriate evaluation of the 
                program;
                    ``(E) provide for appropriate community involvement 
                in the program;
                    ``(F) provide service experiences that promote 
                leadership abilities among participants in the program, 
                including experiences that involve such participants in 
                program design;
                    ``(G) involve participants in projects approved by 
                community-based agencies;
                    ``(H) establish and measure progress toward the 
                goals of the program; and
                    ``(I) organize participants in the program into 
                teams, with team leaders who may be participants in a 
                program under subtitle C or individuals who receive a 
                national service educational award under subtitle D; 
                and
            ``(4) an assurance that the entity carrying out the program 
        proposed by the applicant will comply with the nonduplication 
        and nondisplacement provisions of section 177 and grievance 
        procedure requirements of section 176(f).

``SEC. 117D. CONSIDERATION OF APPLICATIONS.

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

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

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

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

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

                       ``Subpart C--Clearinghouse

``SEC. 118. SERVICE-LEARNING CLEARINGHOUSE.

    ``(a) In General.--The Corporation shall provide financial 
assistance, from funds appropriated to carry out subtitle H, to 
agencies described in subsection (b) to establish a clearinghouse, 
which shall carry out activities, either directly or by arrangement 
with another such entity, with respect to information about service-
learning.
    ``(b) Public and Private Not-For-Profit Agencies.--Public and 
private not-for-profit agencies that have extensive experience with 
service-learning, including use of adult volunteers to foster service-
learning, shall be eligible to receive assistance under subsection (a).
    ``(c) Function of Clearinghouse.--An entity that receives 
assistance under subsection (a) may--
            ``(1) assist entities carrying out State or local service-
        learning programs with needs assessments and planning;
            ``(2) conduct research and evaluations concerning service-
        learning;
            ``(3)(A) provide leadership development and training to 
        State and local service-learning program administrators, 
        supervisors, service sponsors, and participants; and
            ``(B) provide training to persons who can provide the 
        leadership development and training described in subparagraph 
        (A);
            ``(4) facilitate communication among entities carrying out 
        service-learning programs and participants in such programs;
            ``(5) provide information, curriculum materials, and 
        technical assistance relating to planning and operation of 
        service-learning programs, to States and local entities 
        eligible to receive financial assistance under this title;
            ``(6)(A) gather and disseminate information on successful 
        service-learning programs, components of such successful 
        programs, innovative youth skills curricula related to service-
        learning, and service-learning projects; and
            ``(B) coordinate the activities of the Clearinghouse with 
        appropriate entities to avoid duplication of effort;
            ``(7) make recommendations to State and local entities on 
        quality controls to improve the quality of service-learning 
        programs;
            ``(8) assist organizations in recruiting, screening, and 
        placing service-learning coordinators; and
            ``(9) carry out such other activities as the Chairperson 
        determines to be appropriate.''.
    (b) Higher Education Innovative Projects.--Subtitle B of title I of 
the National and Community Service Act of 1990 (42 U.S.C. 12531 et 
seq.) is amended by striking part II and inserting the following:

 ``PART II--HIGHER EDUCATION INNOVATIVE PROGRAMS FOR COMMUNITY SERVICE

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

    ``(a) Purpose.--It is the purpose of this part to expand 
participation in community service by supporting innovative community 
service programs carried out through institutions of higher education, 
acting as civic institutions to meet the human, educational, 
environmental, or public safety needs of neighboring communities.
    ``(b) General Authority.--The Corporation, in consultation with the 
Secretary of Education, is authorized to make grants to, and enter into 
contracts with, institutions of higher education (including a 
combination of such institutions), and partnerships comprised of such 
institutions and of other public agencies or not-for-profit private 
organizations, to pay for the Federal share of the cost of--
            ``(1) enabling such an institution or partnership to create 
        or expand an organized community service program that--
                    ``(A) engenders a sense of social responsibility 
                and commitment to the community in which the 
                institution is located; and
                    ``(B) provides projects for participants, who shall 
                be students, faculty, administration, or staff of the 
                institution, or residents of the community;
            ``(2) supporting student-initiated and student-designed 
        community service projects through the program;
            ``(3) facilitating the integration of community service 
        carried out under the program into academic curricula, 
        including integration of clinical programs into the curriculum 
        for students in professional schools, so that students can 
        obtain credit for their community service projects;
            ``(4) supplementing the funds available to carry out work-
        study programs under part C of title IV of the Higher Education 
        Act of 1965 (42 U.S.C. 2751 et seq.) to support service-
        learning and community service through the community service 
        program;
            ``(5) strengthening the service infrastructure within 
        institutions of higher education in the United States through 
        the program; and
            ``(6) providing for the training of teachers, prospective 
        teachers, related education personnel, and community leaders in 
        the skills necessary to develop, supervise, and organize 
        service-learning.
    ``(c) Federal Share.--
            ``(1) Share.--
                    ``(A) In general.--The Federal share of the cost of 
                carrying out a community service project for which a 
                grant or contract is awarded under this part may not 
                exceed 50 percent.
                    ``(B) Calculation.--Each recipient of assistance 
                under this part shall comply with section 116(a)(2).
            ``(2) Waiver.--The Chairperson may waive the requirements 
        of paragraph (1), in whole or in part, as provided in section 
        116(b).
    ``(d) Application for Grant.--
            ``(1) Submission.--To receive a grant or enter into a 
        contract under this part, an institution or partnership 
        described in subsection (b) shall prepare, submit to the 
        Corporation, and obtain approval of, an application at such 
        time and in such manner as the Chairperson may reasonably 
        require.
            ``(2) Contents.--An application submitted under paragraph 
        (1) shall contain--
                    ``(A) such information as the Chairperson may 
                reasonably require, such as a description of--
                            ``(i) the proposed program to be 
                        established with assistance provided under the 
                        grant or contract;
                            ``(ii) the human, educational, 
                        environmental, or public safety service that 
                        participants will perform and the community 
                        need that will be addressed under such program;
                            ``(iii) whether or not students will 
                        receive academic credit for community service 
                        projects under the program;
                            ``(iv) the procedure for training 
                        supervisors and participants and for 
                        supervising and organizing participants in such 
                        program;
                            ``(v) the procedures to ensure that the 
                        program includes the age-appropriate learning 
                        component described in section 114(d)(5)(B);
                            ``(vi) the roles played by students and 
                        community members, including service 
                        recipients, in the design and implementation of 
                        the program; and
                            ``(vii) the budget for the program;
                    ``(B) assurances that--
                            ``(i) prior to the placement of a 
                        participant, the applicant will consult with 
                        any local labor organization representing 
                        employees in the area who are engaged in the 
                        same or similar work as that proposed to be 
                        carried out by such program, to prevent the 
                        displacement and protect the rights of such 
                        employees; and
                            ``(ii) the applicant will comply with the 
                        nonduplication and nondisplacement provisions 
                        of section 177 and grievance procedure 
                        requirements of section 176(f); and
                    ``(C) such other assurances as the Chairperson may 
                reasonably require.
    ``(e) Priority.--
            ``(1) In general.--In making grants and entering into 
        contracts under subsection (b), the Corporation shall give 
        priority to applicants that submit applications containing 
        proposals that--
                    ``(A) demonstrate the commitment of the institution 
                of higher education, other than by demonstrating the 
                commitment of the students, to supporting the community 
                service projects carried out under the program;
                    ``(B) specify the manner in which the institution 
                will promote faculty, administration, and staff 
                participation in the community service projects;
                    ``(C) specify the manner in which the institution 
                will provide service to the community through organized 
                programs, including, where appropriate, clinical 
                programs for students in professional schools;
                    ``(D) describe any partnership that will 
                participate in the community service projects, such as 
                a partnership comprised of--
                            ``(i) the institution;
                            ``(ii)(I) a community-based agency;
                            ``(II) a local government agency; or
                            ``(III) a not-for-profit entity that serves 
                        or involves school-age youth or older adults; 
                        and
                            ``(iii) a student organization;
                    ``(E) demonstrate community involvement in the 
                development of the proposal;
                    ``(F) specify that the institution will use such 
                assistance to strengthen the service infrastructure in 
                institutions of higher education; or
                    ``(G) with respect to projects involving delivery 
                of service, specify projects that involve leadership 
                development of school-age youth.
            ``(2) Determination.--In giving priority to applicants 
        under paragraph (1), the Corporation shall give increased 
        priority to such an applicant for each characteristic described 
        in subparagraphs (A) through (G) of paragraph (1) that is 
        reflected in the application submitted by the applicant.
    ``(f) National Service Educational Award.--A participant in a 
program funded under this part shall be eligible for the national 
service educational award described in subtitle D, if the participant 
served in an approved national service position.
    ``(g) Definition.--Notwithstanding section 101(28), as used in this 
part, the term `student' means an individual who is enrolled in an 
institution of higher education on a full- or part-time basis.

                     ``PART III--GENERAL PROVISIONS

``SEC. 120. AVAILABILITY OF APPROPRIATIONS.

    ``Of the aggregate amount appropriated to carry out this subtitle 
for each fiscal year--
            ``(1) a sum equal to 75 percent of such aggregate amount 
        shall be available to carry out part I, of which--
                    ``(A) 85 percent of such sum shall be available to 
                carry out subpart A; and
                    ``(B) 15 percent of such sum shall be available to 
                carry out subpart B; and
            ``(2) a sum equal to 25 percent of such aggregate amount 
        shall be available to carry out part II.''.
    (c) Table of Contents.--Section 1(b) of the National and Community 
Service Act of 1990 (Public Law 101-610; 104 Stat. 3127) is amended by 
striking the items relating to subtitle B of title I of such Act and 
inserting the following:

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

            ``subpart a--school-based programs for students
``Sec. 111. Authority to assist States and Indian tribes.
``Sec. 111A. Authority to assist local applicants in nonparticipating 
                            States.
``Sec. 111B. Authority to assist public or private not-for-profit 
                            organizations.
``Sec. 112. Grants and allotments.
``Sec. 113. State or tribal applications.
``Sec. 114. Local applications.
``Sec. 115. Consideration of applications.
``Sec. 115A. Participation of students and teachers from private 
                            schools.
``Sec. 116. Federal, State, and local contributions.
``Sec. 116A. Limitations on uses of funds.
``S``subpart b--community-based service programs for school-age youth
``Sec. 117. Definitions.
``Sec. 117A. General authority.
``Sec. 117B. State applications.
``Sec. 117C. Local applications.
``Sec. 117D. Consideration of applications.
``Sec. 117E. Federal, State, and local contributions.
``Sec. 117F. Limitation``subpart c--clearinghouse
``Sec. 118. Service-learning clearinghouse.
 ``Part II--Higher Education Innovative Programs for Community Service

``Sec. 119. Higher education innovative programs for community service.
                     ``Part III--General Provisions

``Sec. 120. Availability of appropriations.''.

SEC. 104. QUALITY AND INNOVATION ACTIVITIES.

    (a) Repeal.--Subtitle E of title I of the National and Community 
Service Act of 1990 (42 U.S.C. 12591 et seq.) is repealed.
    (b) Transfer.--Title I of the National and Community Service Act of 
1990 is amended--
            (1) by redesignating subtitle H (42 U.S.C. 12653 et seq.) 
        as subtitle E;
            (2) by inserting subtitle E (as redesignated by paragraph 
        (1) of this subsection) after subtitle D; and
            (3) by redesignating sections 195 through 195O as sections 
        151 through 166, respectively.
    (c) Investment for Quality and Innovation.--Title I of the National 
and Community Service Act of 1990 (as amended by subsection (b) of this 
section) is amended by adding at the end the following new subtitle:

          ``Subtitle H--Investment for Quality and Innovation

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

    ``(a) Methods of Conducting Activities.--The Corporation may carry 
out this section directly or through grants, contracts, and cooperative 
agreements with other entities.
    ``(b) Innovation and Quality Improvement.--
            ``(1) Activities.--The Corporation may undertake activities 
        to improve the quality of national service programs and to 
        support innovative and model programs, including--
                    ``(A) programs under subtitle B or C for rural 
                youth;
                    ``(B) employer-based retiree programs;
                    ``(C) intergenerational programs;
                    ``(D) programs involving individuals with 
                disabilities as participants providing service; and
                    ``(E) programs sponsored by Governors.
            ``(2) Intergenerational program.--An intergenerational 
        program referred to in paragraph (1)(C) may include a program 
        in which older adults provide services to children who 
        participate in Head Start programs.
    ``(c) Summer Programs.--The Corporation may support service 
programs intended to be carried out between May 1 and October 1, except 
that such a program may also include a year-round component.
    ``(d) Community-Based Agencies.--The Corporation may provide 
training and technical assistance and other assistance to service 
sponsors and other community-based agencies that provide volunteer 
placements in order to improve the ability of such agencies to use 
participants and other volunteers in a manner that results in high-
quality service and a positive service experience for the participants 
and volunteers.
    ``(e) Improve Ability To Apply for Assistance.--The Corporation may 
provide training and technical assistance to individuals, programs, 
local labor organizations, State educational agencies, State 
commissions, local educational agencies, local governments, community-
based agencies, and other entities to enable them to apply for funding 
under one of the national service laws, to conduct high-quality 
programs, to evaluate such programs, and for other purposes.
    ``(f) National Service Fellowships.--The Corporation may award 
national service fellowships.
    ``(g) Conferences and Materials.--The Corporation may organize and 
hold conferences, and prepare and publish materials, to disseminate 
information and promote the sharing of information among programs for 
the purpose of improving the quality of programs and projects.
    ``(h) Peace Corps and VISTA Training.--The Corporation may provide 
training assistance to selected individuals who volunteer to serve in 
the Peace Corps or a program authorized under title I of the Domestic 
Volunteer Service Act of 1973 (42 U.S.C. 4951 et seq.). The training 
shall be provided as part of the course of study of the individual at 
an institution of higher education, shall involve service-learning, and 
shall cover appropriate skills that the individual will use in the 
Peace Corps or VISTA.
    ``(i) Promotion and Recruitment.--The Corporation may conduct a 
campaign to solicit funds for the National Service Trust and other 
programs and activities authorized under the national service laws and 
to promote and recruit participants for programs that receive 
assistance under the national service laws.
    ``(j) Training.--The Corporation may support national and regional 
participant and supervisor training, including leadership training and 
training in specific types of service and in building the ethic of 
civic responsibility.
    ``(k) Research.--The Corporation may support research on national 
service, including service-learning.
    ``(l) Intergenerational Support.--The Corporation may assist 
programs in developing a service component that combines students, out-
of-school youths, and older adults as participants to provide needed 
community services.
    ``(m) Planning Coordination.--The Corporation may coordinate 
community-wide planning among programs and projects.
    ``(n) Youth Leadership.--The Corporation may support activities to 
enhance the ability of youth and young adults to play leadership roles 
in national service.
    ``(o) National Program Identity.--The Corporation may support the 
development and dissemination of materials, including training 
materials, and arrange for uniforms and insignia, designed to promote 
unity and shared features among programs that receive assistance under 
the national service laws.
    ``(p) Service-Learning.--The Corporation shall support innovative 
programs and activities that promote service-learning.

``SEC. 198A. CLEARINGHOUSES.

    ``(a) Assistance.--The Corporation shall provide assistance to 
appropriate entities to establish one or more clearinghouses, including 
the clearinghouse described in section 118.
    ``(b) Application.--To be eligible to receive assistance under 
subsection (a), an entity shall submit an application to the 
Corporation at such time, in such manner, and containing such 
information as the Corporation may require.
    ``(c) Function of Clearinghouses.--An entity that receives 
assistance under subsection (a) may--
            ``(1) assist entities carrying out State or local community 
        service programs with needs assessments and planning;
            ``(2) conduct research and evaluations concerning community 
        service;
            ``(3)(A) provide leadership development and training to 
        State and local community service program administrators, 
        supervisors, and participants; and
            ``(B) provide training to persons who can provide the 
        leadership development and training described in subparagraph 
        (A);
            ``(4) facilitate communication among entities carrying out 
        community service programs and participants;
            ``(5) provide information, curriculum materials, technical 
        assistance relating to planning and operation of community 
        service programs, to States and local entities eligible to 
        receive funds under this title;
            ``(6)(A) gather and disseminate information on successful 
        community service programs, components of such successful 
        programs, innovative youth skills curriculum, and community 
        service projects; and
            ``(B) coordinate the activities of the clearinghouse with 
        appropriate entities to avoid duplication of effort;
            ``(7) make recommendations to State and local entities on 
        quality controls to improve the delivery of community service 
        programs and on changes in the programs under this title; and
            ``(8) carry out such other activities as the Chairperson 
        determines to be appropriate.''.

``SEC. 198B. PRESIDENTIAL AWARDS FOR SERVICE.

    ``(a) Presidential Awards.--
            ``(1) In general.--The President, acting through the 
        Corporation, may make Presidential awards for service to 
        individuals providing significant service, and to outstanding 
        service programs.
            ``(2) Individuals and programs.--Notwithstanding section 
        101(17)--
                    ``(A) an individual receiving an award under this 
                subsection need not be a participant in a program 
                authorized under this Act; and
                    ``(B) a program receiving an award under this 
                subsection need not be a program authorized under this 
                Act.
            ``(3) Nature of award.--In making an award under this 
        section to an individual or program, the President, acting 
        through the Corporation--
                    ``(A) is authorized to incur necessary expenses for 
                the honorary recognition of the individual or program; 
                and
                    ``(B) is not authorized to make a cash award to 
                such individual or program.
    ``(b) Information.--The President, acting through the Corporation, 
shall ensure that information concerning individuals and programs 
receiving awards under this section is widely disseminated.''.
    (d) Table of Contents.--
            (1) Civilian community corps.--Section 1(b) of the National 
        and Community Service Act of 1990 (Public Law 101-610; 104 
        Stat. 3127) is amended by striking the items relating to 
        subtitle E of title I of such Act and inserting the following:

                 ``Subtitle E--Civilian Community Corps

``Sec. 151.  Purpose.
``Sec. 152. Establishment of Civilian Community Corps Demonstration 
                            Program.
``Sec. 153. National service program.
``Sec. 154. Summer national service program.
``Sec. 155. Civilian Community Corps.
``Sec. 156. Training.
``Sec. 157. Service projects.
``Sec. 158. Authorized benefits for Corps personnel under Federal law.
``Sec. 159. Administrative provisions.
``Sec. 160. Status of Corps members and Corps personnel under Federal 
                            law.
``Sec. 161. Contract and grant authority.
``Sec. 162. Responsibilities of other departments.
``Sec. 163. Advisory board.
``Sec. 164. Annual evaluation.
``Sec. 165. Funding limitation.
``Sec. 166. Definitions.''.
            (2) Quality and innovation.--Section 1(b) of the National 
        and Community Service Act of 1990 (Public Law 101-610; 104 
        Stat. 3127) is amended by striking the items relating to 
        subtitle H of title I of such Act and inserting the following:

          ``Subtitle H--Investment for Quality and Innovation

``Sec. 198. Additional corporation activities to support national 
                            service.
``Sec. 198A. Clearinghouses.
``Sec. 198B. Presidential awards for service.''.
    (e) Technical and Conforming Amendments.--
            (1) National defense authorization act for fiscal year 
        1993.--
                    (A) Section 1091(f)(2) of the National Defense 
                Authorization Act for Fiscal Year 1993 (Public Law 102-
                484) is amended by striking ``195G'' and inserting 
                ``158''.
                    (B) Paragraphs (1) and (2) of section 1092(b), and 
                sections 1092(c), 1093(a), and 1094(a) of such Act are 
                amended by striking ``195A'' and inserting ``152''.
                    (C) Sections 1091(f)(2), 1092(b)(1), and 1094(a), 
                and subsections (a) and (c) of section 1095 of such Act 
                are amended by striking ``subtitle H'' and inserting 
                ``subtitle E''.
                    (D) Section 1094(b)(1) and subsections (b) and 
                (c)(1) of section 1095 of such Act are amended by 
                striking ``subtitles B, C, D, E, F, and G'' and 
                inserting ``subtitles B, C, D, F, G, and H''.
            (2) National and community service act of 1990.--
                    (A) Section 153(a) of such Act (as redesignated in 
                subsection (b)(3) of this section) (42 U.S.C. 
                12653b(a)) is amended by striking ``195A(a)'' and 
                inserting ``152(a)''.
                    (B) Section 154(a) of such Act (as redesignated in 
                subsection (b)(3) of this section) (42 U.S.C. 
                12653c(a)) is amended by striking ``195A(a)'' and 
                inserting ``152(a)''.
                    (C) Section 155 of such Act (as redesignated in 
                subsection (b)(3) of this section) (42 U.S.C. 12653d) 
                is amended--
                            (i) in subsection (a), by striking 
                        ``195H(c)(1)'' and inserting ``159(c)(1)'';
                            (ii) in subsection (c)(2), by striking 
                        ``195H(c)(2)'' and inserting ``159(c)(2)''; and
                            (iii) in subsection (d)(3), by striking 
                        ``195K(a)(3)'' and inserting ``162(a)(3)''.
                    (D) Section 156 of such Act (as redesignated in 
                subsection (b)(3) of this section) (42 U.S.C. 12653e) 
                is amended--
                            (i) in subsection (c)(1), by striking 
                        ``195H(c)(2)'' and inserting ``159(c)(2)''; and
                            (ii) in subsection (d), by striking 
                        ``195K(a)(3)'' and inserting ``162(a)(3)''.
                    (E) Section 159 of such Act (as redesignated in 
                subsection (b)(3) of this section) (42 U.S.C. 12653h) 
                is amended--
                            (i) in subsection (a)--
                                    (I) by striking ``195A'' and 
                                inserting ``152''; and
                                    (II) by striking ``195'' and 
                                inserting ``151''; and
                            (ii) in subsection (c)(2)(C)(i), by 
                        striking ``195K(a)(2)'' and inserting ``section 
                        162(a)(2)''.
                    (F) Section 161(b)(1)(B) of such Act (as 
                redesignated in subsection (b)(3) of this section) (42 
                U.S.C. 12653j(b)(1)(B)) is amended by striking 
                ``195K(a)(3)'' and inserting ``162(a)(3)''.
                    (G) Section 162(a)(2)(A) of such Act (as 
                redesignated in subsection (b)(3) of this section) (42 
                U.S.C. 12653k(a)(2)(A)) is amended by striking 
                ``195(3)'' and inserting ``151(3)''.
                    (H) Section 166 of such Act (as redesignated in 
                subsection (b)(3) of this section) (42 U.S.C. 12653o) 
                is amended--
                            (i) in paragraph (2), by striking ``195D'' 
                        and inserting ``155'';
                            (ii) in paragraph (8), by striking ``195A'' 
                        and inserting ``152'';
                            (iii) in paragraph (10), by striking 
                        ``195D(d)'' and inserting ``155(d)''; and
                            (iv) in paragraph (11), by striking 
                        ``195D(c)'' and inserting ``155(c)''.
    (f) Extension of Authority to Conduct Civilian Community Corps.--
Section 1092(c) of the National Defense Authorization Act for Fiscal 
Year 1993 (Public Law 102-484; 106 Stat. 2534), as amended by 
subsection (e)(1) of this section, is further amended by adding at the 
end the following new sentence: ``The amount made available for the 
Civilian Community Corps Demonstration Program pursuant to this 
subsection shall remain available for expenditure during fiscal years 
1993 and 1994.''.
    (g) Additional Amendment Regarding Civilian Community Corps.--
Section 158 of the National and Community Service Act of 1990 (as 
redesignated in subsection (b)(3) of this section) (42 U.S.C. 12653g) 
is amended by striking subsections (f), (g), and (h) and inserting the 
following new subsections:
    ``(f) National Service Educational Awards.--A Corps member who 
successfully completes a period of agreed service in the Corps may 
receive the national service educational award described in subtitle D 
if the Corps member--
            ``(1) serves in an approved national service position; and
            ``(2) satisfies the eligibility requirements specified in 
        section 146 with respect to service in that approved national 
        service position.
    ``(g) Alternative Benefit.--If a Corps member who successfully 
completes a period of agreed service in the Corps is ineligible for the 
national service educational award described in subtitle D, the 
Director may provide for the provision of a suitable alternative 
benefit for the Corps member.''.

                     Subtitle B--Related Provisions

SEC. 111. DEFINITIONS.

    (a) In General.--Section 101 of the National and Community Service 
Act of 1990 (42 U.S.C. 12511) is amended to read as follows:

``SEC. 101. DEFINITIONS.

    ``For purposes of this title:
            ``(1) Adult volunteer.--The term `adult volunteer' means an 
        individual, such as an older adult, an individual with a 
        disability, a parent, or an employee of a business or public or 
        private not-for-profit agency, who--
                    ``(A) works without financial remuneration in an 
                educational institution to assist students or out-of-
                school youth; and
                    ``(B) is beyond the age of compulsory school 
                attendance in the State in which the educational 
                institution is located.
            ``(2) Approved national service position.--The term 
        `approved national service position' means a national service 
        position designated by the Corporation as a position that 
        includes a national service educational award described in 
        section 147 as one of the benefits to be provided for 
        successful service in the position.
            ``(3) Carry out.--The term `carry out', when used in 
        connection with a national service program described in section 
        122, means the planning, establishment, operation, expansion, 
        or replication of the program.
            ``(4) Chairperson.--The term `Chairperson' means the 
        Chairperson and Director of the Corporation appointed under 
        section 193.
            ``(5) Community-based agency.--The term `community-based 
        agency' means a private not-for-profit organization that is 
        representative of a community and that is engaged in meeting 
        human, educational, environmental, or public safety community 
        needs.
            ``(6) Corporation.--The term `Corporation' means the 
        Corporation for National Service established under section 191.
            ``(7) Economically disadvantaged.--The term `economically 
        disadvantaged' means, with respect to an individual, an 
        individual who is determined by the Chairperson to be low-
        income according to the latest available data from the 
        Department of Commerce.
            ``(8) Elementary school.--The term `elementary school' has 
        the same meaning given such term in section 1471(8) of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        2891(8)).
            ``(9) Indian.--The term `Indian' means a person who is a 
        member of an Indian tribe.
            ``(10) Indian lands.--The term `Indian lands' means any 
        real property owned by an Indian tribe, any real property held 
        in trust by the United States for an Indian or Indian tribe, 
        and any real property held by an Indian or Indian tribe that is 
        subject to restrictions on alienation imposed by the United 
        States.
            ``(11) Indian tribe.--The term `Indian tribe' means an 
        Indian tribe, band, nation, or other organized group or 
        community, including any Native village, Regional Corporation, 
        or Village Corporation, as defined in subsection (c), (g), or 
        (j), respectively, of section 3 of the Alaska Native Claims 
        Settlement Act (43 U.S.C. 1602 (c), (g), or (j)), that is 
        recognized as eligible for the special programs and services 
        provided by the United States under Federal law to Indians 
        because of their status as Indians.
            ``(12) Institution of higher education.--The term 
        `institution of higher education' has the same meaning given 
        such term in section 1201(a) of the Higher Education Act of 
        1965 (20 U.S.C. 1141(a)).
            ``(13) Local educational agency.--The term `local 
        educational agency' has the same meaning given such term in 
        section 1471(12) of the Elementary and Secondary Education Act 
        of 1965 (20 U.S.C. 2891(12)).
            ``(14) National service laws.--The term `national service 
        laws' means this Act and the Domestic Volunteer Service Act of 
        1973 (42 U.S.C. 4950 et seq.).
            ``(15) Out-of-school youth.--The term `out-of-school youth' 
        means an individual who--
                    ``(A) has not attained the age of 27;
                    ``(B) has not completed college or the equivalent 
                thereof; and
                    ``(C) is not enrolled in an elementary or secondary 
                school or institution of higher education.
            ``(16) Participant.--
                    ``(A) In general.--The term `participant' means--
                            ``(i) for purposes of subtitle C, an 
                        individual in an approved national service 
                        position; and
                            ``(ii) for purposes of any other provision 
                        of this Act, an individual enrolled in a 
                        program that receives assistance under this 
                        title.
                    ``(B) Rule.--A participant shall not be considered 
                to be an employee of the program in which the 
                participant is enrolled.
            ``(17) Partnership program.--The term `partnership program' 
        means a program through which an adult volunteer, a public or 
        private not-for-profit agency, an institution of higher 
        education, or a business assists a local educational agency.
            ``(18) Program.--The term `program', except when used as 
        part of the term `academic program', means a program described 
        in section 111(a) (other than a program referred to in 
        paragraph (3)(B) of such section), 117A(a), 119(b)(1), or 
        122(a), in paragraph (1) or (2) of section 152(b), or in 
        section 198.
            ``(19) Project.--The term `project' means an activity, 
        carried out through a program that receives assistance under 
        this title, that results in a specific identifiable service or 
        improvement that otherwise would not be done with existing 
        funds, and that does not duplicate the routine services or 
        functions of the employer to whom participants are assigned.
            ``(20) School-age youth.--The term `school-age youth' means 
        an individual between the ages of 5 and 17, inclusive.
            ``(21) Secondary school.--The term `secondary school' has 
        the same meaning given such term in section 1471(21) of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        2891(21)).
            ``(22) Service-learning.--The term `service-learning' means 
        a method--
                    ``(A) under which students or participants learn 
                and develop through active participation in 
                thoughtfully organized service that--
                            ``(i) is conducted in and meets the needs 
                        of a community;
                            ``(ii) is coordinated with an elementary 
                        school, secondary school, institution of higher 
                        education, or community service program, and 
                        with the community; and
                            ``(iii) helps foster civic responsibility; 
                        and
                    ``(B) that--
                            ``(i) is integrated into and enhances the 
                        academic curriculum of the students, or the 
                        educational components of the community service 
                        program in which the participants are enrolled; 
                        and
                            ``(ii) provides structured time for the 
                        students or participants to reflect on the 
                        service experience.
            ``(23) Service-learning coordinator.--The term `service-
        learning coordinator' means an individual who provides services 
        as described in section subsection (a)(3) or (b) of section 
        111.
            ``(24) Service sponsor.--The term `service sponsor' means 
        an organization, or other entity, that has been selected to 
        provide a placement for a participant.
            ``(25) State.--The term `State' means each of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands, Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands. The term also 
        includes Palau, until such time as the Compact of Free 
        Association is ratified.
            ``(26) State commission.--The term `State Commission' means 
        a State Commission on National Service maintained by a State 
        pursuant to section 178. Except when used in section 178, the 
        term includes an alternative administrative entity for a State 
        approved by the Corporation under such section to act in lieu 
        of a State Commission.
            ``(27) State educational agency.--The term `State 
        educational agency' has the same meaning given such term in 
        section 1471(23) of the Elementary and Secondary Education Act 
        of 1965 (20 U.S.C. 2891(23)).
            ``(28) Student.--The term `student' means an individual who 
        is enrolled in an elementary or secondary school or institution 
        of higher education on a full- or part-time basis.''.
    (b) Technical and Conforming Amendments.--
            (1) Section 182(a)(2) of the National and Community Service 
        Act of 1990 (42 U.S.C 12642(a)(2)) is amended by striking 
        ``adult volunteer and partnership'' each place the term appears 
        and inserting ``partnership''.
            (2) Section 182(a)(3) of the National and Community Service 
        Act of 1990 (42 U.S.C 12642(a)(3)) is amended by striking 
        ``adult volunteer and partnership'' and inserting 
        ``partnership''.
            (3) Section 441(c)(2) of the Higher Education Act of 1965 
        (42 U.S.C. 2751(c)(2)) is amended by striking ``service 
        opportunities or youth corps as defined in section 101 of the 
        National and Community Service Act of 1990, and service in the 
        agencies, institutions and activities designated in section 
        124(a) of the National and Community Service Act of 1990'' and 
        inserting ``a project, as defined in section 101(19) of the 
        National and Community Service Act of 1990 (42 U.S.C. 
        12511(18))''.
            (4) Section 1122(a)(2)(C) of the Higher Education Act of 
        1965 (20 U.S.C. 1137a(a)(2)(C)) is amended by striking ``youth 
        corps as defined in section 101(30) of the National and 
        Community Service Act of 1990'' and inserting ``youth corps 
        programs, as described in section 122(a)(1) of the National and 
        Community Service Act of 1990''.
            (5) Section 1201(p) of the Higher Education Act of 1965 (20 
        U.S.C. 1141(p)) is amended by striking ``section 101(22) of the 
        National and Community Service Act of 1990'' and inserting 
        ``section 101(22) of the National and Community Service Act of 
        1990 (42 U.S.C. 12511(21))''.

SEC. 112. AUTHORITY TO MAKE STATE GRANTS.

    Section 102 of the National and Community Service Act of 1990 (42 
U.S.C. 12512) is repealed.

SEC. 113. FAMILY AND MEDICAL LEAVE.

    (a) In General.--Section 171 of the National and Community Service 
Act of 1990 (42 U.S.C. 12631) is amended to read as follows:

``SEC. 171. FAMILY AND MEDICAL LEAVE.

    ``(a) Participants in Private, State, and Local Projects.--For 
purposes of title I of the Family and Medical Leave Act of 1993 (29 
U.S.C. 2601 et seq.), if--
            ``(1) a participant has provided service for the period 
        required by section 101(2)(A)(i) (29 U.S.C. 2611(2)(A)(i)), and 
        has met the hours of service requirement of section 
        101(2)(A)(ii), of such Act with respect to a project; and
            ``(2) the service sponsor of the project is an employer 
        described in section 101(4) of such Act (other than an 
        employing agency within the meaning of subchapter V of chapter 
        63 of title 5, United States Code),
the participant shall be considered to be an eligible employee of the 
service sponsor.
    ``(b) Participants in Federal Projects.--For purposes of subchapter 
V of chapter 63 of title 5, United States Code, if--
            ``(1) a participant has provided service for the period 
        required by section 6381(1)(B) of such title with respect to a 
        project; and
            ``(2) the service sponsor of the project is an employing 
        agency within the meaning of such subchapter,
the participant shall be considered to be an employee of the service 
sponsor.''.
    (b) Table of Contents.--Section 1(b) of the National and Community 
Service Act of 1990 (Public Law 101-610; 104 Stat. 3127) is amended by 
striking the item relating to section 171 of such Act and inserting the 
following:

``Sec. 171. Family and medical leave.''.

SEC. 114. REPORTS.

    Section 172 of the National and Community Service Act of 1990 (42 
U.S.C. 12632) is amended--
            (1) in subsection (a)(3)(A), by striking ``sections 177 and 
        113(9)'' and inserting ``section 177''; and
            (2) in subsection (b)(1), by striking ``this title'' and 
        inserting ``the national service laws''.

SEC. 115. NONDISCRIMINATION.

    Section 175 of the National and Community Service Act of 1990 (42 
U.S.C. 12635) is amended to read as follows:

``SEC. 175. NONDISCRIMINATION.

    ``(a) In General.--
            ``(1) Basis.--An individual with responsibility for the 
        operation of a project that receives assistance under this 
        title shall not discriminate against a participant in, or 
        member of the staff of, such project on the basis of race, 
        color, national origin, sex, age, or political affiliation of 
        such participant or member, or on the basis of disability, if 
        the participant or member is a qualified individual with a 
        disability.
            ``(2) Definition.--As used in paragraph (1), the term 
        `qualified individual with a disability' has the meaning given 
        the term in section 101(8) of the Americans with Disabilities 
        Act of 1990 (42 U.S.C. 12111(8)).
    ``(b) Federal Financial Assistance.--Any assistance provided under 
this title shall constitute Federal financial assistance for purposes 
of title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.), 
title IX of the Education Amendments of 1972 (20 U.S.C. 1681 et seq.), 
section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), and the 
Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.).
    ``(c) Religious Discrimination.--
            ``(1) In general.--Except as provided in paragraph (2), an 
        individual with responsibility for the operation of a project 
        that receives assistance under this title shall not 
        discriminate on the basis of religion against a participant in 
        such project or a member of the staff of such project who is 
        paid with funds received under this title.
            ``(2) Exception.--Paragraph (1) shall not apply to the 
        employment, with assistance provided under this title, of any 
        member of the staff, of a project that receives assistance 
        under this title, who was employed with the organization 
        operating the project on the date the grant under this title 
        was awarded.
    ``(d) Rules and Regulations.--The Chairperson shall promulgate 
rules and regulations to provide for the enforcement of this section 
that shall include provisions for summary suspension of assistance for 
not more than 30 days, on an emergency basis, until notice and an 
opportunity to be heard can be provided.''.

SEC. 116. NOTICE, HEARING, AND GRIEVANCE PROCEDURES.

    (a) Decertification of Positions.--Section 176(a) of the National 
and Community Service Act of 1990 (42 U.S.C. 12636(a)) is amended--
            (1) in paragraph (1), by inserting ``, or revoke the 
        designation of positions, related to the grant or contract, as 
        approved national service positions,'' before ``whenever the 
        Commission''; and
            (2) in paragraph (2)(B), by inserting ``or revoked'' after 
        ``terminated''.
    (b) Construction.--Section 176(e) of such Act (42 U.S.C. 12636(e)) 
is amended by adding before the period the following ``, other than 
assistance provided pursuant to this Act''.
    (c) Grievance Procedure.--Section 176(f) of such Act is amended to 
read as follows:
    ``(f) Grievance Procedure.--
            ``(1) In general.--A State or local applicant that receives 
        assistance under this title shall establish and maintain a 
        procedure for the filing and adjudication of grievances from 
        participants, labor organizations, and other interested 
        individuals concerning projects that receive assistance under 
        this title, including grievances regarding proposed placements 
        of such participants in such projects.
            ``(2) Deadline for grievances.--Except for a grievance that 
        alleges fraud or criminal activity, a grievance shall be made 
        not later than 1 year after the date of the alleged occurrence 
        of the event that is the subject of the grievance.
            ``(3) Deadline for hearing and decision.--
                    ``(A) Hearing.--A hearing on any grievance 
                conducted under this subsection shall be conducted not 
                later than 30 days after the filing of such grievance.
                    ``(B) Decision.--A decision on any such grievance 
                shall be made not later than 60 days after the filing 
                of such grievance.
            ``(4) Arbitration.--
                    ``(A) In general.--
                            ``(i) Jointly selected arbitrator.--In the 
                        event of a decision on a grievance that is 
                        adverse to the party who filed such grievance, 
                        or 60 days after the filing of such grievance 
                        if no decision has been reached, such party 
                        shall be permitted to submit such grievance to 
                        binding arbitration before a qualified 
                        arbitrator who is jointly selected and 
                        independent of the interested parties.
                            ``(ii) Appointed arbitrator.--If the 
                        parties cannot agree on an arbitrator, the 
                        Chairperson shall appoint an arbitrator from a 
                        list of qualified arbitrators within 15 days 
                        after receiving a request for such appointment 
                        from one of the parties to the grievance.
                    ``(B) Deadline for proceeding.--An arbitration 
                proceeding shall be held not later than 45 days after 
                the request for such arbitration proceeding, or, if the 
                arbitrator is appointed by the Chairperson in 
                accordance with subparagraph (A)(ii), not later than 30 
                days after the appointment of such arbitrator.
                    ``(C) Deadline for decision.--A decision concerning 
                a grievance shall be made not later than 30 days after 
                the date such arbitration proceeding begins.
                    ``(D) Cost.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the cost of an arbitration 
                        proceeding shall be divided evenly between the 
                        parties to the arbitration.
                            ``(ii) Exception.--If a participant, labor 
                        organization, or other interested individual 
                        described in paragraph (1) prevails under a 
                        binding arbitration proceeding, the State, 
                        local agency, public or private not-for-profit 
                        organization, or partnership of such agencies 
                        and organizations, that is a party to such 
                        grievance shall pay the total cost of such 
                        proceeding and the attorneys' fees of such 
                        participant, labor organization, or individual, 
                        as the case may be.
            ``(5) Proposed placement.--If a grievance is filed 
        regarding a proposed placement of a participant in a project 
        that receives assistance under this title, such placement shall 
        not be made unless the placement is consistent with the 
        resolution of the grievance pursuant to this subsection.
            ``(6) Remedies.--Remedies for a grievance filed under this 
        subsection include--
                    ``(A) suspension of payments for assistance under 
                this title;
                    ``(B) termination of such payments;
                    ``(C) prohibition of the placement described in 
                paragraph (5); and
                    ``(D) in a case in which the grievance involves a 
                violation of subsection (a) or (b) of section 177 and 
                the employer of the displaced employee is the recipient 
                of assistance under this title--
                            ``(i) reinstatement of the displaced 
                        employee to the position held by such employee 
                        prior to displacement;
                            ``(ii) payment of lost wages and benefits 
                        of the displaced employee;
                            ``(iii) reestablishment of other relevant 
                        terms, conditions, and privileges of employment 
                        of the displaced employee; and
                            ``(iv) such equitable relief as is 
                        necessary to correct any violation of 
                        subsection (a) or (b) of section 177 or to make 
                        the displaced employee whole.
            ``(7) Enforcement.--Suits to enforce arbitration awards 
        under this section may be brought in any district court of the 
        United States having jurisdiction of the parties, without 
        regard to the amount in controversy and without regard to the 
        citizenship of the parties.''.

SEC. 117. NONDISPLACEMENT.

    Section 177(b)(3) of the National and Community Service Act of 1990 
(42 U.S.C. 12637(b)(3)) is amended--
            (1) in subparagraph (B), to read as follows:
                    ``(B) Supplantation of hiring.--A participant in 
                any program receiving assistance under this title shall 
                not perform any services or duties, or engage in 
                activities, that--
                            ``(i) will supplant the hiring of employed 
                        workers; or
                            ``(ii) are services, duties, or activities 
                        with respect to which an individual has recall 
                        rights pursuant to a collective bargaining 
                        agreement or applicable personnel 
                        procedures.''; and
            (2) in subparagraph (C)(iii), to read as follows:
                            ``(iii) employee who--
                                    ``(I) is subject to a reduction in 
                                force; or
                                    ``(II) has recall rights pursuant 
                                to a collective bargaining agreement or 
                                applicable personnel procedures;''.

SEC. 118. EVALUATION.

    Section 179 of the National and Community Service Act of 1990 (42 
U.S.C 12639) is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``this title'' and inserting ``the national 
                service laws''; and
                    (B) in paragraph (2)--
                            (i) in the matter preceding subpargraph 
                        (A), by striking ``for purposes of the reports 
                        required by subsection (j),'' and inserting 
                        ``with respect to the programs authorized under 
                        subtitle C''; and
                            (ii) in subparagraph (A), by striking 
                        ``older American volunteer programs'' and 
                        inserting ``National Senior Volunteer Corps 
                        programs'';
            (2) in subsection (g)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``subtitle D'' and inserting ``subtitle C''; 
                and
                    (B) in paragraphs (3) and (9), by striking ``older 
                American volunteer programs'' and inserting ``National 
                Senior Volunteer Corps programs''; and
            (3) by striking subsections (i) and (j).

SEC. 119. ENGAGEMENT OF PARTICIPANTS.

    Section 180 of the National and Community Service Act of 1990 (42 
U.S.C. 12640) is amended by striking ``post-service benefits'' and 
inserting ``national service educational awards''.

SEC. 120. CONTINGENT EXTENSION.

    (a) In General.--Section 181 of the National and Community Service 
Act of 1990 (42 U.S.C. 12641) is amended to read as follows:

``SEC. 181. CONTINGENT EXTENSION.

    ``Section 414 of the General Education Provisions Act (20 U.S.C. 
1226a) shall apply to this Act.''.
    (b) Table of Contents.--Section 1(b) of the National and Community 
Service Act of 1990 (Public Law 101-610; 104 Stat. 3127) is amended by 
striking the item relating to sections 181 of such Act and inserting 
the following:

``Sec. 181. Contingent extension.''.

SEC. 121. REPEALS.

    (a) In General.--Subtitle F of title I of the National and 
Community Service Act of 1990 (42 U.S.C. 12631 et seq.) is amended--
            (1) by repealing sections 183, 185, and 186; and
            (2) by redesignating section 184 as section 183.
    (b) Table of Contents.--Section 1(b) of the National and Community 
Service Act of 1990 (Public Law 101-610; 104 Stat. 3127) is amended by 
striking the items relating to sections 183, 184, and 185 of such Act 
and inserting the following:

``Sec. 183. Drug-free workplace requirements.''.

                         TITLE II--ORGANIZATION

SEC. 201. STATE COMMISSIONS ON NATIONAL SERVICE.

    (a) Composition and Duties of State Commissions.--Subtitle F of 
title I of the National and Community Service Act of 1990 is amended by 
striking section 178 (42 U.S.C. 12638) and inserting the following new 
section:

``SEC. 178. STATE COMMISSIONS ON NATIONAL SERVICE.

    ``(a) Existence Required.--
            ``(1) State commission.--Except as provided in paragraph 
        (2), to be eligible to receive a grant or allotment under 
        subtitle B or C or to receive a distribution of approved 
        national service positions under subtitle C, a State shall 
        maintain a State Commission on National Service that satisfies 
        the requirements of this section.
            ``(2) Alternative administrative entity.--The chief 
        executive officer of a State may apply to the Corporation for 
        approval to use an alternative administrative entity to carry 
        out the duties otherwise entrusted to a State Commission under 
        this Act. The chief executive officer shall ensure that any 
        alternative administrative entity used in lieu of a State 
        Commission still provides for the individuals described in 
        paragraphs (1) and (2) of subsection (c) to play a significant 
        policy-making role in carrying out the duties otherwise 
        entrusted to a State Commission, including the submission of 
        applications on behalf of the State under sections 117B and 
        130.
    ``(b) Appointment and Size.--Except as provided in subsection 
(c)(3), the members of a State Commission for a State shall be 
appointed by the chief executive officer of the State. A State 
Commission shall consist of not less than 7 voting members and not more 
than 13 voting members.
    ``(c) Composition and Membership.--
            ``(1) Required members.--The State Commission for a State 
        shall include as voting members at least one representative 
        from each of the following categories:
                    ``(A) A national service program, such as a youth 
                corps program, a service program for school-age youth, 
                and a program in which older Americans are 
                participants.
                    ``(B) Local governments in the State.
                    ``(C) Local labor organizations.
            ``(2) Sources of other members.--The State Commission for a 
        State may include as voting members the following:
                    ``(A) Representatives of community-based 
                organizations.
                    ``(B) Members selected from among participants in 
                service programs who are youths.
                    ``(C) Members selected from among educators.
                    ``(D) Members selected from among experts in the 
                delivery of human, educational, environmental, or 
                public safety services to communities and persons.
                    ``(E) Representatives of businesses and business 
                groups.
            ``(3) Corporation representative.--The representative of 
        the Corporation designated under section 195(b) for a State 
        shall be a voting member of the State Commission for that 
        State.
            ``(4) Ex officio state representatives.--The chief 
        executive officer of a State may appoint as nonvoting ex 
        officio members of the State Commission for the State 
        representatives selected from among officers and employees of 
        State agencies operating community service, youth service, 
        education, social service, senior service, and job training 
        programs.
            ``(5) Limitation on number of state employees as members.--
        The number of voting members of a State Commission selected 
        under paragraph (1) or (2) who are officers or employees of the 
        State may not exceed 25 percent (reduced to the nearest whole 
        number) of the total membership of the State Commission.
    ``(d) Miscellaneous Matters.--
            ``(1) Membership balance.--The chief executive officer of a 
        State shall ensure that the membership of the State Commission 
        for the State is balanced according to race, ethnic background, 
        age, and gender. Not more than 50 percent of the voting members 
        of a State Commission, plus one additional member, may be from 
        the same political party.
            ``(2) Terms.--Each member of the State Commission for a 
        State shall serve for a term of 3 years, except that the chief 
        executive officer of a State shall initially appoint a portion 
        of the members to terms of 1 year and 2 years.
            ``(3) Vacancies.--As vacancies occur on a State Commission, 
        new members shall be appointed by the chief executive of the 
        State and serve for the remainder of the term for which the 
        predecessor of such member was appointed. The vacancy shall not 
        affect the power of the remaining members to execute the duties 
        of the State Commission.
            ``(4) Compensation.--A member of a State Commission shall 
        not receive any additional compensation by reason of service on 
        the State Commission, except that the State may authorize the 
        reimbursement of travel expenses, including a per diem in lieu 
        of subsistence, in the same manner as other employees serving 
        intermittently in the service of the State.
            ``(5) Chairperson.--The voting members of a State 
        Commission shall elect one of the voting members to serve as 
        chairperson of the State Commission.
    ``(e) Duties of a State Commission.--The State Commission for a 
State shall be responsible for the following duties:
            ``(1) Preparation of a national service plan for the State 
        that--
                    ``(A) covers a 3-year period;
                    ``(B) is updated annually; and
                    ``(C) contains such information as the State 
                Commission considers to be appropriate or as the 
                Corporation may require.
            ``(2) Preparation of the applications of the State under 
        sections 117B and 130 for financial assistance.
            ``(3) Assistance in the preparation of the application of 
        the State educational agency for assistance under section 113.
            ``(4) Preparation of the application of the State under 
        section 130 for the approval of service positions that include 
        the national service educational award described in subtitle D.
            ``(5) Assistance in the provision of health care and child 
        care benefits under section 140 to participants in national 
        service programs that receive assistance under section 121.
            ``(6) Development of a State system for the recruitment and 
        placement of participants in national service programs that 
        receive assistance under section 121 and dissemination of 
        information concerning national service programs that receive 
        assistance and approved national service positions.
            ``(7) Administration of the grant program in support of 
        national service programs that is conducted by the State using 
        assistance provided to the State under section 121, including 
        selection, oversight, and evaluation of grant recipients.
            ``(8) Development of projects, training methods, curriculum 
        materials, and other materials and activities related to 
        national service programs that receive assistance directly from 
        the Corporation or from the State using assistance provided 
        under section 121.
    ``(f) Activity Ineligible for Assistance.--A State Commission may 
not directly carry out any national service program that receives 
assistance under section 121.
    ``(g) Delegation.--Subject to such requirements as the Corporation 
may prescribe, a State Commission may delegate nonpolicymaking duties 
to a State agency or public or private not-for-profit organization.
    ``(h) Approval of State Commission or Alternative.--
            ``(1) Submission to corporation.--The chief executive 
        officer for a State shall notify the Corporation of the 
        establishment or designation of the State Commission for the 
        State. The notification shall include a description of--
                    ``(A) the composition and membership of the State 
                Commission; and
                    ``(B) the authority of the State Commission 
                regarding national service activities carried out by 
                the State.
            ``(2) Approval of alternative administrative entity.--Any 
        use of an alternative administrative entity to carry out the 
        duties of a State Commission shall be subject to the approval 
        of the Corporation.
            ``(3) Rejection.--The Corporation may reject a State 
        Commission if the Corporation determines that the composition, 
        membership, or duties of the State Commission do not comply 
        with the requirements of this section. The Corporation shall 
        reject a request to use an alternative administrative entity in 
        lieu of a State Commission if the Corporation determines that 
        use of the alternative administrative entity does not allow the 
        individuals described in paragraphs (1) and (2) of subsection 
        (c) to play a significant policy-making role in carrying out 
        the duties otherwise entrusted to a State Commission. If the 
        Corporation rejects a State Commission or alternative 
        administrative entity under this paragraph, the Corporation 
        shall promptly notify the State of the reasons for the 
        rejection.
            ``(4) Resubmission and reconsideration.--The Corporation 
        shall provide a State notified under paragraph (3) with a 
        reasonable opportunity to revise the rejected State Commission 
        or alternative administrative entity. At the request of the 
        State, the Corporation shall provide technical assistance to 
        the State as part of the revision process. The Corporation 
        shall promptly reconsider any resubmission of a notification 
        under paragraph (1) or application to use an alternative 
        administrative entity under paragraph (2).
            ``(5) Subsequent changes.--This subsection shall also apply 
        to any change in the composition or duties of a State 
        Commission or an alternative administrative entity made after 
        approval of the State Commission or the alternative 
        administrative entity.''.
    (b) Table of Contents.--Section 1(b) of the National and Community 
Service Act of 1990 (Public Law 101-610; 104 Stat. 3127) is amended by 
striking the item relating to section 178 and inserting the following 
new item:

``Sec. 178. State Commissions on National Service.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.
    (d) Transitional Provisions.--
            (1) Use of alternatives to state commission.--If a State 
        does not have a State Commission on National Service that 
        satisfies the requirements specified in section 178 of the 
        National and Community Services Act of 1990, as amended by 
        subsection (a), the Corporation for National Service may 
        authorize the chief executive of the State to use an existing 
        agency of the State to perform the duties otherwise reserved to 
        a State Commission under subsection (e) of such section.
            (2) Application of subsection.--This subsection shall apply 
        only during the 1-year period beginning on the date of the 
        enactment of this Act.

SEC. 202. INTERIM AUTHORITIES OF THE CORPORATION FOR NATIONAL SERVICE 
              AND ACTION AGENCY.

    (a) National and Community Service Act of 1990.--Subtitle G of 
title I of the National and Community Service Act of 1990 (42 U.S.C. 
12651) is amended to read as follows:

             ``Subtitle G--Corporation for National Service

``SEC. 191. CORPORATION FOR NATIONAL SERVICE.

    ``There is established a Corporation for National Service that 
shall administer the programs established under this Act. The 
Corporation shall be a Government corporation, as defined in section 
103 of title 5, United States Code.

``SEC. 192. BOARD OF DIRECTORS.

    ``(a) Composition.--
            ``(1) In general.--There shall be in the Corporation a 
        Board of Directors (referred to in this subtitle as the 
        `Board') that shall be composed of--
                    ``(A) 11 members, including the Chairperson 
                appointed under section 193, to be appointed by the 
                President, by and with the advice and consent of the 
                Senate; and
                    ``(B) the ex officio members described in paragraph 
                (4).
            ``(2) Qualifications.--To the maximum extent practicable, 
        the President shall appoint members--
                    ``(A) who have extensive experience in volunteer 
                and service programs, including programs funded under 
                one of the national service laws, and in State 
                government;
                    ``(B) who represent a broad range of viewpoints;
                    ``(C) who are experts in the delivery of human, 
                educational, environmental, or public safety services;
                    ``(D) so that the Board shall be diverse according 
                to race, ethnicity, age, and gender; and
                    ``(E) so that no more than 6 appointed members of 
                the Board are from a single political party.
            ``(3) Initial members.--No fewer than 8 of the members 
        first appointed to the Board after the date of enactment of 
        this section shall be appointed from among individuals who 
        served on the Board of Directors of the Commission on National 
        and Community Service.
            ``(4) Ex officio members.--The Secretary of Education, the 
        Secretary of Health and Human Services, the Secretary of Labor, 
        the Secretary of the Interior, the Secretary of Agriculture, 
        the Secretary of Housing and Urban Development, the Secretary 
        of Defense, the Attorney General, the Director of the Peace 
        Corps, and the Administrator of the Environmental Protection 
        Agency shall serve as ex officio nonvoting members of the 
        Board.
    ``(b) Terms.--Each appointed member of the Board shall serve for a 
term of 3 years, except that 4 of the members first appointed to the 
Board after the date of enactment of this section shall serve for a 
term of 1 year and 4 shall serve for a term of 2 years, as designated 
by the President.
    ``(c) Vacancies.--As vacancies occur on the Board, new members 
shall be appointed by the President, by and with the advice and consent 
of the Senate, and serve for the remainder of the term for which the 
predecessor of such member was appointed. The vacancy shall not affect 
the power of the remaining members to execute the duties of the Board.

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

    ``(a) Meetings.--The Board shall meet not less than 3 times each 
year. The Board shall hold additional meetings if 6 members of the 
Board request such meetings in writing.
    ``(b) Quorum.--A majority of the appointed members of the Board 
shall constitute a quorum.
    ``(c) Officers.--
            ``(1) Vice chairperson.--The Board shall elect a Vice 
        Chairperson from among its membership. The Vice Chairperson may 
        conduct meetings of the Board in the absence of the 
        Chairperson.
            ``(2) Other officers.--The Board may elect from among its 
        membership such additional officers of the Board as the Board 
        determines to be appropriate.
    ``(d) Inspector General Oversight Committee.--The Board shall 
establish an Inspector General oversight committee (referred to in this 
subtitle as the `oversight committee'). Such committee shall be 
comprised of the Vice Chairperson and two members selected by the Vice 
Chairperson. The Chairperson shall not serve on the oversight 
committee.
    ``(e) Expenses.--While away from their homes or regular places of 
business on the business of the Board, members of such Board shall be 
allowed travel expenses, including per diem in lieu of subsistence, at 
rates authorized for employees of agencies under subchapter I of 
chapter 57 of title 5, United States Code, for persons employed 
intermittently in the Government service.
    ``(f) Special Government Employees.--For purposes of the provisions 
of chapter 11 of part I of title 18, United States Code, and any other 
provision of Federal law, a member of the Board (to whom such 
provisions would not otherwise apply except for this subsection) shall 
be a special Government employee.
    ``(g) Status of Members.--
            ``(1) Tort claims.--For the purposes of the tort claims 
        provisions of chapter 171 of title 28, United States Code, a 
        member of the Board shall be considered to be a Federal 
        employee.
            ``(2) Other claims.--A member of the Board has no personal 
        liability under Federal law with respect to any claim arising 
        out of or resulting from any act or omission by such person, 
        within the scope of the service of the member on the Board, in 
        connection with any transaction involving the provision of 
        financial assistance by the Corporation. This paragraph shall 
        not be construed to limit personal liability for criminal acts 
        or omissions, willful or malicious misconduct, acts or 
        omissions for private gain, or any other act or omission 
        outside the scope of the service of such member on the Board.
            ``(3) Effect on other law.--This subsection shall not be 
        construed--
                    ``(A) to affect any other immunities and 
                protections that may be available to such member under 
                applicable law with respect to such transactions;
                    ``(B) to affect any other right or remedy against 
                the Corporation, against the United States under 
                applicable law, or against any person other than a 
                member of the Board participating in such transactions; 
                or
                    ``(C) to limit or alter in any way the immunities 
                that are available under applicable law for Federal 
                officials and employees not described in this 
                subsection.
    ``(h) Duties.--The Board shall--
            ``(1) make such grants and allotments, enter into such 
        contracts, award such other financial assistance, make such 
        payments (in lump sum or installments, and in advance or by way 
        of reimbursement, and in the case of financial assistance 
        otherwise authorized under this Act, with necessary adjustments 
        on account of overpayments and underpayments), and designate 
        such positions as approved national service positions as are 
        necessary or appropriate to carry out this Act;
            ``(2) prepare a strategic plan every 3 years, and annual 
        updates of the plan, for the Corporation with respect to the 
        grants, allotments, contracts, assistance, and payments 
        described in paragraph (1), and with respect to such standards, 
        policies, procedures, programs, and initiatives as are 
        necessary or appropriate to carry out this Act;
            ``(3) make recommendations with respect to the regulations 
        established under section 195(a)(3)(B)(i);
            ``(4)(A) review the actions of the Chairperson with respect 
        to the personnel of the Corporation, and with respect to the 
        standards, policies, procedures, programs, and initiatives; and
            ``(B) inform the Chairperson of any aspects of the actions 
        of the Chairperson that are not in compliance with the annual 
        strategic plan described in paragraph (2) or the 
        recommendations described in paragraph (3), or are not 
        consistent with the objectives of this Act;
            ``(5) receive, and act on, the reports issued by the 
        Inspector General of the Corporation;
            ``(6) arrange for the evaluation of programs established 
        under this Act, in accordance with section 179;
            ``(7) provide for research with respect to national and 
        community service programs, including service-learning 
        programs;
            ``(8) advise the President and the Congress concerning 
        developments in national and community service that merit the 
        attention of the President and the Congress;
            ``(9) disseminate information regarding the programs and 
        initiatives of the Corporation; and
            ``(10) carry out any other activities determined to be 
        appropriate by the Chairperson.
    ``(i) Administration.--The Federal Advisory Committee Act (5 U.S.C. 
App.) shall not apply with respect to the Board.

``SEC. 193. CHAIRPERSON AND DIRECTOR.

    ``(a) Appointment.--The Corporation shall be headed by an 
individual who shall serve as Chairperson of the Board and as Director 
of the Corporation, and who shall be appointed by the President, by and 
with the advice and consent of the Senate.
    ``(b) Compensation.--The Chairperson shall be compensated at the 
rate provided for level III of the Executive Schedule under section 
5314 of title 5, United States Code.
    ``(c) Regulations.--The Chairperson shall prescribe such rules and 
regulations as are necessary or appropriate to carry out this Act.

``SEC. 193A. AUTHORITIES AND DUTIES OF THE CHAIRPERSON.

    ``(a) General Powers and Duties.--The Chairperson shall be 
responsible for the exercise of the powers and the discharge of the 
duties of the Corporation that are not reserved to the Board, and shall 
have authority and control over all personnel of the Corporation.
    ``(b) Duties.--In addition to the duties conferred on the 
Chairperson under any other provision of this Act, the Chairperson 
shall--
            ``(1) submit a proposal to the Board regarding, and 
        establish, such standards, policies, and procedures, as are 
        necessary or appropriate to carry out this Act;
            ``(2) establish and administer such programs and 
        initiatives as the Chairperson, acting on the recommendation of 
        the Board, may determine to be necessary or appropriate to 
        carry out this Act;
            ``(3) consult with appropriate Federal agencies in 
        administering such programs and initiatives;
            ``(4) on the recommendation of the Board, suspend or 
        terminate payments and positions described in section 
        192A(h)(1), in accordance with section 176;
            ``(5) prepare and submit to the Board an annual report, and 
        such interim reports as may be necessary, describing the major 
        actions of the Chairperson with respect to the personnel of the 
        Corporation, and with respect to such standards, policies, 
        procedures, programs, and initiatives;
            ``(6) notify, and provide an explanation to, the Board 
        regarding any substantial differences between the actions of 
        the Chairperson and the strategic plan described in section 
        192A(h)(2); and
            ``(7) prepare and submit to the appropriate committees of 
        Congress an annual report, and such interim reports as may be 
        necessary, describing--
                    ``(A) the services referred to in paragraph (1), 
                and the money and property referred to in paragraph 
                (2), of section 196(a) that have been accepted by the 
                Corporation; and
                    ``(B) the manner in which the Corporation used or 
                disposed of such services, money, and property.
    ``(c) Powers.--In addition to the authority conferred on the 
Chairperson under any other provision of this Act, the Chairperson 
may--
            ``(1) establish, alter, consolidate, or discontinue such 
        organizational units or components within the Corporation as 
        the Chairperson considers necessary or appropriate;
            ``(2) with the approval of the President--
                    ``(A) arrange with and reimburse the heads of other 
                Federal agencies for the performance of any of the 
                provisions of this Act; and
                    ``(B) as necessary or appropriate--
                            ``(i) delegate any of the functions of the 
                        Chairperson under this Act, or, with the 
                        permission of the Board, any of the functions 
                        of the Board under this Act, to such heads of 
                        Federal agencies; and
                            ``(ii) authorize the redelegation of such 
                        functions,
                subject to provisions to assure the maximum possible 
                liaison between the Corporation and such other agencies 
                at all operating levels;
            ``(3) with their consent, utilize the services and 
        facilities of Federal agencies with or without reimbursement, 
        and, with the consent of any State, or political subdivision of 
        a State, accept and utilize the services and facilities of the 
        agencies of such State or subdivisions without reimbursement;
            ``(4) allocate and expend, or transfer to other Federal 
        agencies for expenditure, funds made available under this Act, 
        including expenditure for construction, repairs, and capital 
        improvements;
            ``(5) disseminate, without regard to the provisions of 
        section 3204 of title 39, United States Code, data and 
        information, in such form as the Chairperson shall determine to 
        be appropriate to public agencies, private organizations, and 
        the general public;
            ``(6) collect or compromise all obligations to or held by 
        the Chairperson and all legal or equitable rights accruing to 
        the Chairperson in connection with the payment of obligations 
        in accordance with chapter 37 of title 31, United States Code 
        (commonly known as the `Federal Claims Collection Act of 
        1966');
            ``(7) expend funds made available for purposes of this Act, 
        without regard to any other law or regulation, for rent of 
        buildings and space in buildings and for repair, alteration, 
        and improvement of buildings and space in buildings rented by 
        the Chairperson;
            ``(8) file a civil action in any court of record of a State 
        having general jurisdiction or in any district court of the 
        United States, with respect to a claim arising under this Act;
            ``(9) exercise the authorities of the Corporation under 
        section 196; and
            ``(10) generally perform such functions and take such steps 
        consistent with the objectives and provisions of this Act, as 
        the Chairperson determines to be necessary or appropriate to 
        carry out such provisions.
    ``(d) Delegation.--
            ``(1) Definition.--As used in this subsection, the term 
        `function' means any duty, obligation, power, authority, 
        responsibility, right, privilege, activity, or program.
            ``(2) In general.--Except as otherwise prohibited by law or 
        provided in this Act, the Chairperson may delegate any function 
        under this Act, and authorize such successive redelegations of 
        such function as may be necessary or appropriate. No delegation 
        of a function by the Chairperson under this subsection or under 
        any other provision of this Act shall relieve such Chairperson 
        of responsibility for the administration of such function.
            ``(3) Function of board.--The Chairperson may not delegate 
        a function of the Board without the permission of the Board.
    ``(e) Actions.--In an action described in subsection (c)(8)--
            ``(1) a district court referred to in such subsection shall 
        have jurisdiction of such a civil action without regard to the 
        amount in controversy;
            ``(2) such an action brought by the Chairperson shall 
        survive notwithstanding any change in the person occupying the 
        office of Chairperson or any vacancy in that office;
            ``(3) no attachment, injunction, garnishment, or other 
        similar process, mesne or final, shall be issued against the 
        Chairperson or the Board or property under the control of the 
        Chairperson or the Board; and
            ``(4) nothing in this section shall be construed to except 
        litigation arising out of activities under this Act from the 
        application of sections 509, 517, 547, and 2679 of title 28, 
        United States Code.

``SEC. 194. OFFICERS.

    ``(a) Managing Directors.--
            ``(1) In general.--There shall be in the Corporation 2 
        Managing Directors, who shall be appointed by the President, by 
        and with the advice and consent of the Senate.
            ``(2) Compensation.--The Managing Directors shall be 
        compensated at the rate provided for level IV of the Executive 
        Schedule under section 5315 of title 5, United States Code.
            ``(3) Duties.--
                    ``(A) Federal programs.--One of the Managing 
                Directors shall be primarily responsible for the 
                Federal programs carried out by the Corporation.
                    ``(B) Investment programs.--The other Managing 
                Director shall be primarily responsible for the 
                financial assistance programs carried out by the 
                Corporation.
    ``(b) Inspector General.--
            ``(1) Office.--There shall be in the Corporation an Office 
        of the Inspector General.
            ``(2) Appointment.--
                    ``(A) In general.--The Office shall be headed by an 
                Inspector General, appointed by the President, by and 
                with the consent of the Senate.
                    ``(B) Reporting.--The Inspector General shall 
                report directly to the oversight committee.
            ``(3) Compensation.--The Inspector General shall be 
        compensated at the rate provided for level IV of the Executive 
        Schedule under section 5315 of title 5, United States Code.
            ``(4) Duties.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), for purposes of the Inspector General 
                Act of 1978 (5 U.S.C. App.)--
                            ``(i) the Corporation shall be considered 
                        to be a designated Federal entity, as defined 
                        in section 8E(2) of such Act; and
                            ``(ii) except as provided in paragraph 
                        (2)(A), the oversight committee shall be 
                        considered to be the head of the designated 
                        Federal entity, as defined in section 8E(4) of 
                        such Act.
                    ``(B) Program fraud.--For purposes of chapter 38 of 
                title 31, United States Code (commonly known as the 
                `Program Fraud Civil Remedies Act of 1986')--
                            ``(i) the Corporation shall be considered 
                        to be an authority, as defined in section 
                        3801(a)(1) of such Act;
                            ``(ii) the oversight committee shall be 
                        considered to be an authority head, as defined 
                        in section 3801(a)(2) of such Act; and
                            ``(iii) the Inspector General shall be 
                        considered to be an investigating official, as 
                        defined in section 3801(a)(4) of such Act.
    ``(c) Chief Financial Officer.--
            ``(1) Office.--There shall be in the Corporation a Chief 
        Financial Officer, who shall be appointed by the President, by 
        and with the advice and consent of the Senate.
            ``(2) Compensation.--The Chief Financial Officer shall be 
        compensated at the rate provided for level IV of the Executive 
        Schedule under section 5315 of title 5, United States Code.
            ``(3) Duties.--The Chief Financial Officer shall--
                    ``(A) report directly to the Chairperson regarding 
                financial management matters;
                    ``(B) oversee all financial management activities 
                relating to the programs and operations of the 
                Corporation;
                    ``(C) develop and maintain an integrated accounting 
                and financial management system for the Corporation, 
                including financial reporting and internal controls;
                    ``(D) develop and maintain any joint financial 
                management systems with the Department of Education 
                necessary to carry out the programs of the Corporation; 
                and
                    ``(E) direct, manage, and provide policy guidance 
                and oversight of the financial management personnel, 
                activities, and operations of the Corporation.

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

    ``(a) Employees.--
            ``(1) In general.--The Chairperson may appoint and 
        determine the compensation of such employees as the Chairperson 
        determines to be necessary to carry out the duties of the 
        Corporation.
            ``(2) Terms.--
                    ``(A) Initial term.--
                            ``(i) Length of term.--Such an employee 
                        shall be appointed for an initial term that 
                        shall not exceed 5 years.
                            ``(ii) Probation period.--The Chairperson 
                        shall take such action, including the issuance 
                        of rules, regulations, and directives, as shall 
                        provide, as nearly as conditions of good 
                        administration warrant, for a 1-year period of 
                        probation before such an appointment becomes 
                        final.
                    ``(B) Appointment extensions.--The appointment of 
                an employee may be extended if the Chairperson 
                determines that such an extension is necessary to 
                ensure the continuity of functions under this Act.
                    ``(C) Appointment in the competitive service after 
                employment in the corporation.--
                            ``(i) Employees with not less than 3 years 
                        of employment.--If an employee, other than a 
                        representative described in section 195(b), is 
                        separated from the Corporation (other than by 
                        removal for cause), and has been continuously 
                        employed by the Corporation for a period of not 
                        less than 3 years, such period shall be treated 
                        as a period of service in the competitive 
                        service for purposes of chapter 33 of title 5, 
                        United States Code.
                            ``(ii) Employees with not less than 1 but 
                        less than 3 years of employment.--If an 
                        employee, other than a representative described 
                        in section 195(b), is separated from the 
                        Corporation (other than by removal for cause), 
                        and has been continuously employed by the 
                        Corporation for a period of not less than 1 
                        year, but less than 3 years, such period shall 
                        be treated as a period of service in the 
                        competitive service for purposes of chapter 33 
                        of title 5, United States Code, until the date 
                        that is 3 years after the date of separation.
                            ``(iii) Definition.--As used in this 
                        subparagraph, the term `competitive service' 
                        has the meaning given the term in section 2102 
                        of title 5, United States Code.
            ``(3) Appointment and compensation.--
                    ``(A) In general.--Except as provided in 
                subparagraphs (B)(iv) and (C)(ii), the Chairperson may 
                appoint and determine the compensation of employees 
                under this subsection without regard to the provisions 
                of title 5, United States Code, governing appointments 
                in the competitive service, and without regard to the 
                provisions of chapter 51 and subchapter III of chapter 
                53 of such title relating to classification and General 
                Schedule pay rates.
                    ``(B) Corporation selection and compensation 
                systems.--
                            ``(i) Establishment of system.--The 
                        Chairperson, after consultation with the 
                        Director of the Office of Personnel Management 
                        and after reviewing the recommendations of the 
                        Board under section 192A(h)(3), shall issue 
                        regulations establishing selection and 
                        compensation systems for the Corporation. In 
                        issuing such regulations, the Chairperson shall 
                        take into consideration the need for 
                        flexibility in such a system.
                            ``(ii) Application.--The Chairperson shall 
                        appoint and determine the compensation of 
                        employees referred to in paragraph (1), other 
                        than representatives described in section 
                        195(b), in accordance with the selection and 
                        compensation systems referred to in clause (i).
                            ``(iii) Selection system.--The selection 
                        system shall provide for the selection of such 
                        an employee for such a position--
                                    ``(I) through a competitive 
                                process; and
                                    ``(II) on the basis of the 
                                qualifications of applicants and the 
                                requirements of the position.
                            ``(iv) Compensation system.--The 
                        compensation system shall include a scheme for 
                        the classification of positions in the 
                        Corporation. The system shall require that the 
                        compensation of such an employee be determined 
                        based in part on the job performance of the 
                        employee, and in a manner consistent with the 
                        principles described in section 5301 of title 
                        5, United States Code. The rate of compensation 
                        for each employee compensated through the 
                        system shall not exceed the annual rate of 
                        basic pay payable for level IV of the Executive 
                        Schedule under section 5315 of title 5, United 
                        States Code.
                    ``(C) Selection and compensation of corporation 
                representatives.--
                            ``(i) In general.--The Chairperson may 
                        appoint and determine the compensation of 
                        representatives described in section 195(b) 
                        without regard to the selection and 
                        compensation systems described in subparagraph 
                        (B).
                            ``(ii) Limitation on compensation.--The 
                        rate of compensation for each representative 
                        described in section 195(b) shall not exceed 
                        the maximum rate of basic pay payable for GS-15 
                        of the General Schedule under section 5332 of 
                        title 5, United States Code.
    ``(b) Corporation Representative in Each State.--
            ``(1) Designation of representative.--The Corporation shall 
        designate 1 employee of the Corporation for each State or group 
        of States to serve as the representative of the Corporation in 
        the State or States and to assist the Corporation in carrying 
        out the activities described in this Act in the State or 
        States.
            ``(2) Duties.--The representative designated under this 
        subsection for a State or group of States shall serve as the 
        liaison between--
                    ``(A) the Corporation and the State Commission that 
                is established in the State or States; and
                    ``(B) the Corporation and any subdivision of a 
                State, Indian tribe, public or private nonprofit 
                organization, or institution of higher education, in 
                the State or States, that is awarded a grant under 
                section 121 directly from the Corporation.
            ``(3) Member of state commission.--The representative 
        designated under this subsection for a State or group of States 
        shall also serve as a voting member of the State Commission 
        established in the State or States.
    ``(c) Consultants.--The Chairperson may procure the temporary and 
intermittent services of experts and consultants and compensate the 
experts and consultants in accordance with section 3109(b) of title 5, 
United States Code.
    ``(d) Details of Personnel.--The head of any Federal department or 
agency may detail on a reimbursable basis, or on a nonreimbursable 
basis for not to exceed 180 calendar days during any fiscal year, as 
agreed upon by the Chairperson and the head of the Federal agency, any 
of the personnel of that department or agency to the Corporation to 
assist the Corporation in carrying out the duties of the Corporation 
under this Act. Any detail shall not interrupt or otherwise affect the 
civil service status or privileges of the Federal employee.
    ``(e) Advisory Committees.--
            ``(1) Establishment.--The Chairperson, acting upon the 
        recommendation of the Board, may establish advisory committees 
        in the Corporation to advise the Board with respect to national 
        service issues, such as the type of programs to be established 
        or assisted under the national service laws, priorities and 
        criteria for such programs, and methods of conducting outreach 
        for, and evaluation of, such programs.
            ``(2) Composition.--Such an advisory committee shall be 
        composed of members appointed by the Chairperson, with such 
        qualifications as the Chairperson may specify.
            ``(3) Expenses.--Members of such an advisory committee may 
        be allowed travel expenses as described in section 192A(e).
            ``(4) Staff.--The Chairperson is authorized to appoint and 
        fix the compensation of such staff as the Chairperson 
        determines to be necessary to carry out the functions of the 
        advisory committee, in accordance with subsection (a)(3)(A), 
        and without regard to the selection and compensation systems 
        described in subsection (a)(3)(B). Such compensation shall not 
        exceed the rate described in subsection (a)(3)(C)(ii).

``SEC. 196. ADMINISTRATION.

    ``(a) Donations.--
            ``(1) Services.--
                    ``(A) Volunteers.--Notwithstanding section 1342 of 
                title 31, United States Code, the Corporation may 
                solicit and accept the voluntary services of 
                individuals to assist the Corporation in carrying out 
                the duties of the Corporation under this Act, and may 
                provide to such individuals the travel expenses 
                described in section 192A(e).
                    ``(B) Limitation.--Such a volunteer shall not be 
                considered to be a Federal employee and shall not be 
                subject to the provisions of law relating to Federal 
                employment, including those relating to hours of work, 
                rates of compensation, leave, unemployment 
                compensation, and Federal employee benefits, except 
                that--
                            ``(i) for the purposes of the tort claims 
                        provisions of chapter 171 of title 28, United 
                        States Code, a volunteer under this subtitle 
                        shall be considered to be a Federal employee; 
                        and
                            ``(ii) for the purposes of subchapter I of 
                        chapter 81 of title 5, United States Code, 
                        relating to compensation to Federal employees 
                        for work injuries, volunteers under this 
                        subtitle shall be considered to be employees, 
                        as defined in section 8101(1)(B) of title 5, 
                        United States Code, and the provisions of such 
                        subchapter shall apply.
            ``(2) Property.--The Corporation may solicit, accept, use, 
        and dispose of, in furtherance of the purposes of this Act, 
        donations of any money or property, real, personal, or mixed, 
        tangible or intangible, received by gift, devise, bequest, or 
        otherwise.
            ``(3) Rules.--The Chairperson shall establish written rules 
        setting forth the criteria to ensure that the solicitation or 
        acceptance of contributions of money or property, real, 
        personal, or mixed, tangible or intangible, received by gift, 
        device, bequest, or otherwise (pursuant to paragraph (2)) will 
        not reflect unfavorably upon the ability of the Corporation or 
        any employee of the Corporation to carry out the 
        responsibilities or official duties of the Corporation in a 
        fair and objective manner, or compromise the integrity of the 
        programs of the Corporation or any official involved in such 
        programs.
            ``(4) Disposition.--Upon completion of the use by the 
        Corporation of any property described in paragraph (2), such 
        completion shall be reported to the General Services 
        Administration and such property shall be disposed of in 
        accordance with title II of the Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 481 et seq.).
            ``(5) Volunteer.--As used in this subsection, the term 
        `volunteer' does not include a participant.
    ``(b) Contracts.--Subject to the Federal Property and 
Administrative Services Act of 1949, the Corporation may enter into 
contracts, and cooperative and interagency agreements, with Federal and 
State agencies, private firms, institutions, and individuals to conduct 
activities necessary to carry out the duties of the Corporation under 
this Act.''.
    (b) Domestic Volunteer Service Act of 1973.--Section 401 of the 
Domestic Volunteer Service Act of 1973 (42 U.S.C. 5041) is amended by 
inserting after the second sentence the following: ``The Director shall 
report directly to the Chairperson of the Corporation for National 
Service.''.
    (c) Transfer of Functions of Commission on National and Community 
Service.--
            (1) Definitions.--For purposes of this subsection, unless 
        otherwise provided or indicated by the context, each term 
        specified in section 203(c)(1) shall have the meaning given the 
        term in such section.
            (2) Transfer of functions.--There are transferred to the 
        Corporation the functions that the Board of Directors or 
        Executive Director of the Commission on National and Community 
        Service exercised before the effective date of this subsection 
        (including all related functions of any officer or employee of 
        the Commission).
            (3) Application.--The provisions of paragraphs (3) through 
        (10) of section 203(c) shall apply with respect to the transfer 
        described in paragraph (2), except that--
                    (A) for purposes of such application, references to 
                the term ``ACTION Agency'' shall be deemed to be 
                references to the Corporation; and
                    (B) paragraph (10) of such section shall not 
                preclude the transfer of the members of the Board of 
                Directors of the Commission to the Corporation if, on 
                the effective date of this subsection, the Board of 
                Directors of the Corporation has not been confirmed.
    (d) Continuing Performance of Certain Functions.--The individuals 
who, on the day before the date of enactment of this Act, are 
performing any of the functions required by section 190 of the National 
and Community Service Act of 1990 (42 U.S.C. 12651), as in effect on 
such date, to be performed by the members of the Board of Directors of 
the Commission on National and Community Service may, subject to 
section 193A of the National and Community Service Act of 1990, as 
added by subsection (a) of this section, continue to perform such 
functions until the date on the Board of Directors of the Corporation 
for National Service conducts the first meeting of the Board. The 
service of such individuals as members of the Board of Directors of 
such Commission, and the employment of such individuals as special 
government employees, shall terminate on such date.
    (e) Job Search Assistance.--The Chairperson shall establish a 
program to provide, or shall seek to enter into a memorandum of 
understanding with the Director of the Office of Personnel Management 
to provide, job search and related assistance to employees of the 
ACTION agency who are not transferred to the Corporation for National 
Service under section 203(c).
    (f) Government Corporation Control.--
            (1) Wholly owned government corporation.--Section 9101(3) 
        of title 31, United States Code, is amended by inserting after 
        subparagraph (D) the following:
                    ``(E) the Corporation for National Service.''.
            (2) Audits.--Section 9105(a)(1) of title 31, United States 
        Code, is amended by inserting ``, or under other Federal law,'' 
        before ``or by an independent''.
    (g) Disposal of Property.--Section 203(k) of the Federal Property 
and Administrative Services Act of 1949 (40 U.S.C. 484(k)) is amended 
by adding at the end the following:
    ``(5)(A) Under such regulations as the Administrator may prescribe, 
the Administrator is authorized, in the discretion of the 
Administrator, to assign to the Chairperson of the Corporation for 
National Service for disposal such surplus property as is recommended 
by the Chairperson as being needed for national service activities.
    ``(B) Subject to the disapproval of the Administrator, within 30 
days after notice to the Administrator by the Chairperson of a proposed 
transfer of property for such activities, the Chairperson, through such 
officers or employees of the Corporation as the Chairperson may 
designate, may sell, lease, or donate such property to any entity that 
receives financial assistance under the National and Community Service 
Act of 1990 for such activities.
    ``(C) In fixing the sale or lease value of such property, the 
Chairperson shall comply with the requirements of paragraph (1)(C).''.
    (h) Table of Contents.--Section 1(b) of the National and Community 
Service Act of 1990 (Public Law 101-610; 104 Stat. 3127) is amended by 
striking the items relating to subtitle G of title I of such Act and 
inserting the following:

             ``Subtitle G--Corporation for National Service

``Sec. 191. Corporation for National Service.
``Sec. 192. Board of Directors.
``Sec. 192A. Authorities and duties of the Board of Directors.
``Sec. 193. Chairperson and Director.
``Sec. 193A. Authorities and duties of the Chairperson. 
``Sec. 194. Officers.
``Sec. 195. Employees, consultants, and other personnel.
``Sec. 196. Administration.''.
    (i) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall take effect on October 1, 
        1993.
            (2) Establishment and appointment authorities.--Sections 
        191, 192, and 193 of the National and Community Service Act of 
        1990, as added by subsection (a), shall take effect on the date 
        of enactment of this Act.

SEC. 203. FINAL AUTHORITIES OF THE CORPORATION FOR NATIONAL SERVICE.

    (a) National and Community Service Act of 1990.--
            (1) Application.--Subtitle I of the National and Community 
        Service Act of 1990 (as amended by section 202 of this Act) is 
        amended in section 191, paragraphs (2) and (4) of section 
        192A(h), section 193(c), subsections (b), (c) (other than 
        paragraph (8)), and (d) of section 193A, subsections (a), (b), 
        and (d) of section 195, and subsections (a) and (b) of section 
        196, by striking ``this Act'' each place the term appears and 
        inserting ``the national service laws''.
            (2) Grants.--Section 192A(h) of the National and Community 
        Service Act of 1990 (as added by section 202 of this Act) is 
        amended--
                    (A) by striking ``and'' at the end of paragraph 
                (9);
                    (B) by redesignating paragraph (10) as paragraph 
                (11); and
                    (C) by inserting after paragraph (9) the following:
            ``(10) notwithstanding any other provision of law, make 
        grants to or contracts with Federal or other public departments 
        or agencies and private nonprofit organizations for the 
        assignment or referral of volunteers under the provisions of 
        the Domestic Volunteer Service Act of 1973 (except as provided 
        in section 108 of the Domestic Volunteer Service Act of 1973), 
        which may provide that the agency or organization shall pay all 
        or a part of the costs of the program; and''.
    (b) Authorities of ACTION Agency.--Sections 401 and 402 of the 
Domestic Volunteer Service Act of 1973 (42 U.S.C. 5041 and 5042) are 
repealed.
    (c) Transfer of Functions From ACTION Agency.--
            (1) Definitions.--For purposes of this subsection, unless 
        otherwise provided or indicated by the context--
                    (A) the term ``Chairperson'' means the Chairperson 
                of the Corporation;
                    (B) the term ``Corporation'' means the Corporation 
                for National Service, established under section 191 of 
                the National and Community Service Act of 1990;
                    (C) the term ``Federal agency'' has the meaning 
                given to the term ``agency'' by section 551(1) of title 
                5, United States Code;
                    (D) the term ``function'' means any duty, 
                obligation, power, authority, responsibility, right, 
                privilege, activity, or program; and
                    (E) the term ``office'' includes any office, 
                administration, agency, institute, unit, organizational 
                entity, or component thereof.
            (2) Transfer of functions.--There are transferred to the 
        Corporation such functions as the President determines to be 
        appropriate that the Director of the ACTION Agency exercised 
        before the effective date of this subsection (including all 
        related functions of any officer or employee of the ACTION 
        Agency).
            (3) Determinations of certain functions by the office of 
        management and budget.--If necessary, the Office of Management 
        and Budget shall make any determination of the functions that 
        are transferred under paragraph (2).
            (4) Reorganization.--The Chairperson is authorized to 
        allocate or reallocate any function transferred under paragraph 
        (2) among the officers of the Corporation.
            (5) Transfer and allocations of appropriations and 
        personnel.--Except as otherwise provided in this subsection, 
        the personnel employed in connection with, and the assets, 
        liabilities, contracts, property, records, and unexpended 
        balances of appropriations, authorizations, allocations, and 
        other funds employed, used, held, arising from, available to, 
        or to be made available in connection with the functions 
        transferred by this subsection, subject to section 1531 of 
        title 31, United States Code, shall be transferred to the 
        Corporation. Unexpended funds transferred pursuant to this 
        paragraph shall be used only for the purposes for which the 
        funds were originally authorized and appropriated.
            (6) Incidental transfer.--The Director of the Office of 
        Management and Budget, at such time or times as the Director 
        shall provide, is authorized to make such determinations as may 
        be necessary with regard to the functions transferred by this 
        subsection, and to make such additional incidental dispositions 
        of personnel, assets, liabilities, grants, contracts, property, 
        records, and unexpended balances of appropriations, 
        authorizations, allocations, and other funds held, used, 
        arising from, available to, or to be made available in 
        connection with such functions, as may be necessary to carry 
        out the provisions of this subsection. The Director of the 
        Office of Management and Budget shall provide for the 
        termination of the affairs of all entities terminated by this 
        subsection and for such further measures and dispositions as 
        may be necessary to effectuate the purposes of this subsection.
            (7) Effect on personnel.--
                    (A) In general.--Except as otherwise provided by 
                this subsection, the transfer pursuant to this 
                subsection of full-time personnel (except special 
                Government employees) and part-time personnel holding 
                permanent positions shall not cause any such employee 
                to be separated or reduced in grade or compensation, or 
                to have the benefits of the employee reduced, for 1 
                year after the date of transfer of such employee under 
                this subsection.
                    (B) Executive schedule positions.--Except as 
                otherwise provided in this subsection, any person who, 
                on the day preceding the effective date of this 
                subsection, held a position compensated in accordance 
                with the Executive Schedule prescribed in chapter 53 of 
                title 5, United States Code, and who, without a break 
                in service, is appointed in the Corporation to a 
                position having duties comparable to the duties 
                performed immediately preceding such appointment shall 
                continue to be compensated in such new position at not 
                less than the rate provided for such previous position, 
                for the duration of the service of such person in such 
                new position.
                    (C) Termination of certain positions.--Positions 
                whose incumbents are appointed by the President, by and 
                with the advice and consent of the Senate, the 
                functions of which are transferred by this subsection, 
                shall terminate on the effective date of this 
                subsection.
            (8) Savings provisions.--
                    (A) Continuing effect of legal documents.--All 
                orders, determinations, rules, regulations, permits, 
                agreements, grants, contracts, certificates, licenses, 
                registrations, privileges, and other administrative 
                actions--
                            (i) that have been issued, made, granted, 
                        or allowed to become effective by the 
                        President, any Federal agency or official 
                        thereof, or by a court of competent 
                        jurisdiction, in the performance of functions 
                        that are transferred under this subsection; and
                            (ii) that are in effect at the time this 
                        subsection takes effect, or were final before 
                        the effective date of this subsection and are 
                        to become effective on or after the effective 
                        date of this subsection,
                shall continue in effect according to their terms until 
                modified, terminated, superseded, set aside, or revoked 
                in accordance with law by the President, the 
                Chairperson, or other authorized official, a court of 
                competent jurisdiction, or by operation of law.
                    (B) Proceedings not affected.--The provisions of 
                this subsection shall not affect any proceedings, 
                including notices of proposed rulemaking, or any 
                application for any license, permit, certificate, or 
                financial assistance pending before the ACTION Agency 
                at the time this subsection takes effect, with respect 
                to functions transferred by this subsection but such 
                proceedings and applications shall be continued. Orders 
                shall be issued in such proceedings, appeals shall be 
                taken therefrom, and payments shall be made pursuant to 
                such orders, as if this subsection had not been 
                enacted, and orders issued in any such proceedings 
                shall continue in effect until modified, terminated, 
                superseded, or revoked by a duly authorized official, 
                by a court of competent jurisdiction, or by operation 
                of law. Nothing in this subparagraph shall be deemed to 
                prohibit the discontinuance or modification of any such 
                proceeding under the same terms and conditions and to 
                the same extent that such proceeding could have been 
                discontinued or modified if this subsection had not 
                been enacted.
                    (C) Suits not affected.--The provisions of this 
                subsection shall not affect suits commenced before the 
                effective date of this subsection, and in all such 
                suits, proceedings shall be had, appeals taken, and 
                judgments rendered in the same manner and with the same 
                effect as if this subsection had not been enacted.
                    (D) Nonabatement of actions.--No suit, action, or 
                other proceeding commenced by or against the ACTION 
                Agency, or by or against any individual in the official 
                capacity of such individual as an officer of the ACTION 
                Agency, shall abate by reason of the enactment of this 
                subsection.
                    (E) Administrative actions relating to promulgation 
                of regulations.--Any administrative action relating to 
                the preparation or promulgation of a regulation by the 
                ACTION Agency relating to a function transferred under 
                this subsection may be continued by the Corporation 
                with the same effect as if this subsection had not been 
                enacted.
            (9) Severability.--If a provision of this subsection or its 
        application to any person or circumstance is held invalid, 
        neither the remainder of this subsection nor the application of 
        the provision to other persons or circumstances shall be 
        affected.
            (10) Transition.--Prior to, or after, any transfer of a 
        function under this subsection, the Chairperson is authorized 
        to utilize--
                    (A) the services of such officers, employees, and 
                other personnel of the ACTION Agency with respect to 
                functions that will be or have been transferred to the 
                Corporation by this subsection; and
                    (B) funds appropriated to such functions for such 
                period of time as may reasonably be needed to 
                facilitate the orderly implementation of this 
                subsection.
    (d) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), this 
        section, and the amendments made by this section, shall take 
        effect--
                    (A) 18 months after the date of enactment of this 
                Act; or
                    (B) on such earlier date as the President shall 
                determine to be appropriate and announce by 
                proclamation published in the Federal Register.
            (2) Transition.--Subsection (c)(10) shall take effect on 
        the date of enactment of this Act.

                       TITLE III--REAUTHORIZATION

         Subtitle A--National and Community Service Act of 1990

SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

    Section 501 of the National and Community Service Act of 1990 (42 
U.S.C. 12681) is amended to read as follows:

``SEC. 501. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Title I.--
            ``(1) Subtitle b.--There are authorized to be appropriated 
        to provide financial assistance under subtitle B of title I, 
        $45,000,000 for fiscal year 1994, and such sums as may be 
        necessary for each of the fiscal years 1995 through 1998.
            ``(2) Subtitles c, d, and h.--There are authorized to be 
        appropriated to provide financial assistance under subtitles C 
        and H of title I, and to provide national service educational 
        awards under subtitle D of title I, $389,000,000 for fiscal 
        year 1994, and such sums as may be necessary for each of the 
        fiscal years 1995 through 1998. Of the funds appropriated under 
        this paragraph for a fiscal year, not more than 15 percent of 
        such funds may be made available to provide financial 
        assistance for activities in subtitle H, section 125, or 
        section 126.
            ``(3) Administration.--There are authorized to be 
        appropriated for the administration of this Act such sums as 
        may be necessary for each of the fiscal years 1994 through 
        1998.
    ``(b) Title III.--There are authorized to be appropriated to carry 
out title III $5,000,000 for each of the fiscal years 1994 through 
1998.
    ``(c) Availability of Appropriations.--Funds appropriated under 
this section shall remain available until expended.''.

           Subtitle B--Domestic Volunteer Service Act of 1973

SEC. 311. SHORT TITLE; REFERENCES.

    (a) Short Title.--This subtitle may be cited as the ``Domestic 
Volunteer Service Act Amendments of 1993''.
    (b) References.--Except as otherwise specifically provided, 
whenever in this subtitle an amendment or repeal is expressed in terms 
of an amendment to, or repeal of, a section or other provision, the 
reference shall be considered to be made to a section or other 
provision of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4950 
et seq.).

            CHAPTER 1--VISTA AND OTHER ANTI-POVERTY PROGRAMS

SEC. 321. PURPOSE OF THE VISTA PROGRAM.

    The last sentence of section 101 (42 U.S.C. 4951) is amended to 
read as follows: ``In addition, the objectives of this part are to 
generate the commitment of private sector resources, to encourage 
volunteer service at the local level, and to strengthen local agencies 
and organizations to carry out the purpose of this part.''.

SEC. 322. SELECTION AND ASSIGNMENT OF VISTA VOLUNTEERS.

    (a) Volunteer Assignments.--Section 103(a) (42 U.S.C. 4953(a)) is 
amended--
            (1) in the matter preceding paragraph (1), by striking ``a 
        public'' and inserting ``public'';
            (2) in paragraph (2), by striking ``and'' at the end;
            (3) in paragraph (3), by striking ``illiterate or 
        functionally illiterate youth and other individuals,'';
            (4) in paragraph (5), by striking ``and'' at the end;
            (5) in paragraph (6)--
                    (A) by striking ``or the Community Economic'' and 
                inserting ``the Community Economic'';
                    (B) by inserting ``or other similar Acts,'' after 
                ``1981,''; and
                    (C) by striking the period and inserting ``; and''; 
                and
            (6) by adding at the end the following new paragraph:
            ``(7) in strengthening, supplementing, and expanding 
        efforts to address the problem of illiteracy throughout the 
        United States.''.
    (b) Recruitment Procedures.--Section 103(b) (42 U.S.C. 4953(b)) is 
amended--
            (1) by striking paragraphs (2), (4), (5) and (6);
            (2) by redesignating paragraphs (3) and (7) as paragraphs 
        (2) and (3), respectively;
            (3) in paragraph (2) (as redesignated in paragraph (2) of 
        this subsection), by striking ``paragraph (7)'' and inserting 
        ``paragraph (3)''; and
            (4) in paragraph (3) (as redesignated in paragraph (2) of 
        this subsection)--
                    (A) in subparagraph (A), by striking ``paragraph 
                (4)'' and inserting ``paragraph (2)'';
                    (B) by striking subparagraphs (B), (C), and (E);
                    (C) by redesignating subparagraphs (D) and (F) as 
                subparagraphs (C) and (D), respectively; and
                    (D) by inserting after subparagraph (A) the 
                following new subparagraph:
    ``(B) A sponsoring organization may recruit volunteers for service 
under this part, subject to final approval by the Director.''.
    (c) Public Awareness and Recruitment.--Subsection (c) of section 
103 (42 U.S.C. 4953(c)) is amended--
            (1) in paragraph (1), to read as follows:
    ``(1)(A) The Director shall conduct national and local public 
awareness and recruitment activities in order to meet the volunteer 
goals of the program. Such activities shall be coordinated with 
recruitment authorized under subtitle C or E of the National and 
Community Service Act of 1990 and may include public service 
announcements, advertisements, publicity on loan deferments and 
cancellations available to VISTA volunteers, maintenance of a toll-free 
telephone system, and provision of technical assistance for the 
recruitment of volunteers to programs and projects receiving assistance 
under this part.
    ``(B) The Director shall take steps to recruit individuals 18 
through 27 years of age, 55 years of age and older, recent graduates of 
institutions of higher education, and special skilled volunteers and to 
promote diverse participation in the program.'';
            (2) in paragraph (3), by adding at the end the following 
        new sentence: ``In addition, the Director shall take steps to 
        provide opportunities for returned Peace Corps volunteers to 
        serve in the VISTA program.'';
            (3) by striking paragraphs (4), (5), and (6); and
            (4) by adding at the end the following new paragraph:
    ``(4) From the amounts appropriated under section 501(a) for fiscal 
year 1994 and each subsequent fiscal year, the Director shall obligate 
such sums as may be necessary for the purpose of carrying out this 
subsection in such fiscal year.''.
    (d) Coordination With Other Federal Agencies.--Section 103 (42 
U.S.C. 4953) is amended by adding at the end the following new 
subsection:
    ``(h) The Director is encouraged to enter into agreements with 
other Federal agencies to use VISTA volunteers in furtherance of 
program objectives that are consistent with the purposes described in 
section 101.''.

SEC. 323. TERMS AND PERIODS OF SERVICE.

    (a) Clarification and Periods of Service.--Subsection (b) of 
section 104 (42 U.S.C. 4954(b)) is amended to read as follows:
    ``(b)(1) Volunteers serving under this part may be enrolled 
initially for periods of service of not less than 1 year, nor more than 
2 years, except as provided in paragraph (2) or subsection (e).
    ``(2) Volunteers serving under this part may be enrolled for 
periods of service of less than 1 year if the Director determines, on 
an individual basis, that a period of service of less than 1 year is 
necessary to meet a critical scarce skill need.
    ``(3) Volunteers serving under this part may be reenrolled for 
periods of service in a manner to be determined by the Director. No 
volunteer shall serve for more than a total of 5 years under this 
part.''.
    (b) Summer Program.--Section 104 (42 U.S.C. 4954) is amended by 
adding at the end the following new subsection:
    ``(e)(1) Notwithstanding any other provision of this part, the 
Director may enroll full-time VISTA summer associates in a program for 
the summer months only, under such terms and conditions as the Director 
shall determine to be appropriate. Such individuals shall be assigned 
to projects that meet the criteria set forth in section 103(a).
    ``(2) In preparing reports relating to programs under this Act, the 
Director shall report on participants, costs, and accomplishments under 
the summer program separately.
    ``(3) The limitation on funds appropriated for grants and 
contracts, as contained in section 108, shall not apply to the summer 
program.''.

SEC. 324. SUPPORT FOR VISTA VOLUNTEERS.

    (a) Postservice Stipend.--Section 105(a)(1) (42 U.S.C. 4955(a)(1)) 
is amended--
            (1) by inserting ``(A)'' after ``(a)(1)''; and
            (2) by striking the second sentence and inserting the 
        following:
    ``(B) Such stipend shall not exceed $95 per month in fiscal year 
1994, but shall be set at a minimum of $125 per month during the 
service of the volunteer after October 1, 1994, assuming the 
availability of funds to accomplish this increase. The Director may 
provide a stipend of a minimum of $200 per month in the case of persons 
who have served as volunteers under this part for at least 1 year and 
who, in accordance with standards established in such regulations as 
the Director shall prescribe, have been designated volunteer leaders on 
the basis of experience and special skills and a demonstrated 
leadership among volunteers.
    ``(C) The Director shall not provide a stipend under this 
subsection to an individual who elects to receive a national service 
education award under subtitle D of title I of the National and 
Community Service Act of 1990.''.
    (b) Subsistence Allowance.--Section 105(b) (42 U.S.C. 4955(b)) is 
amended--
            (1) in paragraph (3)--
                    (A) by striking subparagraph (A);
                    (B) in subparagraph (B), by striking the 
                subparagraph designation; and
                    (C) by adding at the end the following new 
                sentence: ``The Director shall review such adjustments 
                on an annual basis to ensure that the adjustments are 
                current.''; and
            (2) by striking paragraph (4).

SEC. 325. PARTICIPATION OF YOUNGER AND OLDER PERSONS.

    Section 107 (42 U.S.C. 4957) is amended to read as follows:

``SEC. 107. PARTICIPATION OF YOUNGER AND OLDER PERSONS.

    ``In carrying out this part and part C, the Director shall take 
necessary steps, including the development of special projects, where 
appropriate, to encourage the fullest participation of individuals 18 
through 27 years of age, and individuals 55 years of age and older, in 
the various programs and activities authorized under such parts.''.

SEC. 326. LITERACY ACTIVITIES.

    Section 109 (42 U.S.C. 4959) is amended--
            (1) in subsection (g)--
                    (A) by striking paragraph (1); and
                    (B) by striking the paragraph designation of 
                paragraph (2); and
            (2) in subsection (h), by striking paragraph (3).

SEC. 327. APPLICATIONS FOR ASSISTANCE.

    Section 110 (42 U.S.C. 4960) is amended to read as follows:

``SEC. 110. APPLICATIONS FOR ASSISTANCE.

    ``In reviewing an application for assistance under this part, the 
Director shall not deny such assistance to any project or program, or 
any public or private nonprofit organization, solely on the basis of 
the duration of the assistance such project, program, or organization 
has received under this part prior to the date of submission of the 
application. The Director shall grant assistance under this part on the 
basis of merit and to accomplish the goals of the VISTA program, and 
shall consider the needs and requirements of projects in existence on 
such date as well as potential new projects.''.

SEC. 328. REPEAL OF AUTHORITY FOR STUDENT COMMUNITY SERVICE PROGRAMS.

    Part B of title I (42 U.S.C. 4971 et seq.) is amended by repealing 
section 114 (42 U.S.C. 4974).

SEC. 329. UNIVERSITY YEAR FOR VISTA.

    (a) Program Title.--Part B of title I (42 U.S.C. 4971 et seq.) is 
amended--
            (1) in the part heading to read as follows:

                 ``Part B--University Year for VISTA'';

            (2) by striking ``University Year for ACTION'' each place 
        that such term appears in such part and inserting ``University 
        Year for VISTA'';
            (3) by striking ``UYA'' each place that such term appears 
        in such part and inserting ``UYV''; and
            (4) in section 112 (42 U.S.C. 4972) by striking the section 
        heading and inserting the following new section heading:

      ``authority to operate university year for vista program''.

    (b) Special Conditions.--Section 113(a) (42 U.S.C. 4973(a)) is 
amended--
            (1) by striking ``of not less than the duration of an 
        academic year'' and inserting ``of not less than the duration 
        of an academic semester or its equivalent''; and
            (2) by adding at the end the following new sentence: 
        ``Volunteers may receive a living allowance and such other 
        support or allowances as the Director determines to be 
        appropriate.''.

SEC. 330. AUTHORITY TO ESTABLISH AND OPERATE SPECIAL VOLUNTEER AND 
              DEMONSTRATION PROGRAMS.

    Section 122 (42 U.S.C. 4992) is amended to read as follows:

``SEC. 122. AUTHORITY TO ESTABLISH AND OPERATE SPECIAL VOLUNTEER AND 
              DEMONSTRATION PROGRAMS.

    ``(a) In General.--The Director is authorized to conduct special 
volunteer programs for demonstration programs, or award grants to or 
enter into contracts with public or nonprofit organizations to carry 
out such programs. Such programs shall encourage wider volunteer 
participation on a full-time, part-time, or short-term basis to further 
the purpose of this part, and identify particular segments of the 
poverty community that could benefit from volunteer and other 
antipoverty efforts.
    ``(b) Assignment and Support of Volunteers.--The assignment of 
volunteers under this section, and the provision of support for such 
volunteers, including any subsistence allowances and stipends, shall be 
on such terms and conditions as the Director shall determine to be 
appropriate, but shall not exceed the level of support provided under 
section 105. Projects using volunteers who do not receive stipends may 
also be supported under this section.
    ``(c) Criteria and Priorities.--In carrying out this section and 
section 123, the Director shall establish criteria and priorities for 
awarding grants and entering into contracts under this part in each 
fiscal year. No grant or contract exceeding $100,000 shall be made 
under this part unless the recipient of the grant or contractor has 
been selected by a competitive process that includes public 
announcement of the availability of funds for such grant or contract, 
general criteria for the selection of recipients or contractors, and a 
description of the application process and application review 
process.''.

SEC. 331. TECHNICAL AND FINANCIAL ASSISTANCE.

    Section 123 (42 U.S.C. 4993) is amended to read as follows:

``SEC. 123. TECHNICAL AND FINANCIAL ASSISTANCE.

    ``The Director may provide technical and financial assistance to 
Federal agencies, State and local governments and agencies, private 
nonprofit organizations, employers, and other private organizations 
that utilize or desire to utilize volunteers in carrying out the 
purpose of this part.''.

SEC. 332. ELIMINATION OF SEPARATE AUTHORITY FOR DRUG ABUSE PROGRAMS.

    Section 124 (42 U.S.C. 4994) is repealed.

               CHAPTER 2--NATIONAL SENIOR VOLUNTEER CORPS

SEC. 341. NATIONAL SENIOR VOLUNTEER CORPS.

    (a) Title Heading.--The heading for title II is amended to read as 
follows:

             ``TITLE II--NATIONAL SENIOR VOLUNTEER CORPS''.

    (b) References.--
            (1) Section 200(1) (42 U.S.C. 5000(1)) is amended by 
        striking ``Older American Volunteer Programs'' and inserting 
        ``National Senior Volunteer Corps''.
            (2) The heading for section 221 (42 U.S.C. 5021) is amended 
        by striking ``older american volunteer programs'' and inserting 
        ``national senior volunteer corps''.
            (3) Section 224 (42 U.S.C. 5024) is amended--
                    (A) in the section heading by striking ``older 
                american volunteer programs'' and inserting ``national 
                senior volunteer corps''; and
                    (B) by striking ``volunteer projects for Older 
                Americans'' and inserting ``National Senior Volunteer 
                Corps projects''.
            (4) Section 205(c) of the Older Americans Amendments of 
        1975 (Public Law 94-135; 89 Stat. 727; 42 U.S.C. 5001 note) is 
        amended by striking ``national older American volunteer 
        programs'' each place the term appears and inserting ``National 
        Senior Volunteer Corps programs''.

SEC. 342. THE RETIRED AND SENIOR VOLUNTEER PROGRAM.

    (a) Part Heading.--The heading for part A of title II is amended by 
striking ``Retired Senior Volunteer Program'' and inserting ``Retired 
and Senior Volunteer Program''.
    (b) References.--Section 200 (42 U.S.C. 5000) is amended by 
striking ``retired senior volunteer program'' each place that such term 
appears in such section and the Act and inserting ``Retired and Senior 
Volunteer Program''.

SEC. 343. OPERATION OF THE RETIRED AND SENIOR VOLUNTEER PROGRAM.

    (a) Eligibility for Participants in the Program.--Section 201(a) 
(42 U.S.C. 5001(a)) is amended--
            (1) in the matter preceding paragraph (1), by inserting 
        ``and older working persons'' after ``retired persons''; and
            (2) in paragraph (2), by striking ``aged sixty'' and 
        inserting ``age 55''.
    (b) Deletion of Requirement for State Agency Review.--Section 201 
(42 U.S.C. 5001) is amended--
            (1) by striking subsection (c); and
            (2) by redesignating subsection (d) as subsection (c).

SEC. 344. SERVICES UNDER THE FOSTER GRANDPARENT PROGRAM.

    Section 211(a) (42 U.S.C. 5011(a)) is amended by striking ``, 
including services'' and all that follows through ``with special 
needs.'' and inserting a period and the following: ``Such services may 
include services by individuals serving as foster grandparents to 
children who are receiving care in hospitals, who are residing in homes 
for dependent and neglected children, or who are receiving services 
provided by day care centers, schools, Head Start projects, or any of a 
variety of other establishments and institutions providing services for 
children with special or exceptional needs. Individual foster 
grandparents may provide person-to-person services to one or more 
children, depending on the needs of the project and local site.''.

SEC. 345. STIPENDS FOR LOW-INCOME VOLUNTEERS.

    Section 211(d) (42 U.S.C. 5011(d)) is amended in the second 
sentence by striking ``Any stipend or allowance provided under this 
subsection shall not be less than $2.20 per hour until October 1, 1990, 
$2.35 per hour during fiscal year 1991, and $2.50 per hour on and after 
October 1, 1992,'' and inserting ``Any stipend or allowance provided 
under this section shall not be less than $2.45 per hour on and after 
October 1, 1993, and shall be adjusted once prior to December 31, 1997, 
to account for inflation, as determined by the Director and rounded to 
the nearest five cents,''.

SEC. 346. PARTICIPATION OF NON-LOW-INCOME PERSONS UNDER PARTS B AND C.

    Subsection (f) of section 211(f) (42 U.S.C. 5011(f)) is amended to 
read as follows:
    ``(f) Individuals who are not low-income persons may serve as 
volunteers under parts B and C, in accordance with such regulations as 
the Director shall issue, at the discretion of the local project. Such 
individuals shall not receive any allowance, stipend, or other 
financial support for such service except reimbursement for 
transportation, meals, and out-of-pocket expenses related to such 
service.''.

SEC. 347. CONDITIONS OF GRANTS AND CONTRACTS.

    Section 212 (42 U.S.C. 5012) is repealed.

SEC. 348. EVALUATION OF THE SENIOR COMPANION PROGRAM.

    Section 213(c) (42 U.S.C. 5013(c)) is amended by striking paragraph 
(3).

SEC. 349. AGREEMENTS WITH OTHER FEDERAL AGENCIES.

    Section 221(a) (42 U.S.C. 5021(a)) is amended--
            (1) by striking ``(1)'' and inserting ``(1)(A)''; and
            (2) by adding at the end the following:
            ``(2) The Director is encouraged to enter into agreements 
        with--
                    ``(A) the Department of Health and Human Services 
                to--
                            ``(i) involve retired or senior volunteers 
                        and foster grandparents in Head Start projects; 
                        and
                            ``(ii) promote in-home care in cooperation 
                        with the Administration on Aging;
                    ``(B) the Department of Education to promote 
                intergenerational tutoring and mentoring for at-risk 
                children; and
                    ``(C) the Environmental Protection Agency to 
                support conservation efforts.''.

SEC. 350. PROGRAMS OF NATIONAL SIGNIFICANCE.

    Section 225 (42 U.S.C. 5025) is amended--
            (1) in subsection (a)--
                    (A) by striking paragraph (1) and inserting the 
                following new paragraph:
    ``(1) The Director is authorized to make grants under parts A, B, 
and C to support programs that address national problems that are also 
of local concern. The Director may, in any fiscal year, determine which 
programs of national significance will receive priority in that 
year.'';
                    (B) in paragraph (2)(B), by striking ``paragraph 
                (10)'' and inserting ``paragraphs (10) and (12)''; and
                    (C) in paragraph (2)(C), by striking ``and (10)'' 
                and inserting ``(10), (12), (15), and (16)'';
            (2) in subsection (b), by adding at the end the following 
        new paragraphs:
            ``(12) Programs that address environmental needs.
            ``(13) Programs that reach out to organizations not 
        previously involved in addressing local needs, such as labor 
        unions and profit-making organizations.
            ``(14) Programs that provide for ethnic outreach.
            ``(15) Programs that support criminal justice activities.
            ``(16) Programs that involve older volunteers working with 
        young people in apprenticeship programs.''; and
            (3) in subsection (d), by striking paragraph (1) and 
        inserting the following new paragraph:
    ``(1) Except as provided in paragraph (2), from the amounts 
appropriated under subsection (a), (b), (c), or (d) of section 502, for 
each fiscal year there shall be available to the Director such sums as 
may be necessary to make grants under subsection (a).''.

SEC. 351. ADJUSTMENTS TO FEDERAL FINANCIAL ASSISTANCE.

    Section 226 (42 U.S.C. 5026) is amended--
            (1) in subsection (a)(1)--
                    (A) in subparagraph (A), by striking ``(A)''; and
                    (B) by striking subparagraph (B); and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``(1)''; and
                    (B) by striking paragraph (2).

SEC. 352. DEMONSTRATION PROGRAMS.

    Title II is amended by adding at the end the following new part:

                    ``Part E--Demonstration Programs

``SEC. 231. AUTHORITY OF DIRECTOR.

    ``(a) In General.--The Director is authorized to make grants to or 
enter into contracts with public or nonprofit organizations, including 
organizations funded under part A, B, or C, for the purposes of 
demonstrating innovative activities involving older Americans as 
volunteers. The Director may support under this part both volunteers 
receiving stipends and volunteers not receiving stipends.
    ``(b) Activities.--An organization that receives a grant or enters 
into a contract under subsection (a) may use funds made available 
through the grant or contract for activities such as--
            ``(1) linking youth groups and older American organizations 
        in volunteer activities;
            ``(2) involving older volunteers in programs and activities 
        different from those currently supported in the community; and
            ``(3) testing whether older American volunteer programs may 
        contribute to new objectives or certain national priorities.

``SEC. 232. PROHIBITION.

    ``The Director may not reduce the activities, projects, or 
volunteers funded under the other parts of this title in order to 
support projects under this part.''.

                       CHAPTER 3--ADMINISTRATION

SEC. 361. PURPOSE OF AGENCY.

    Section 401 (42 U.S.C. 5041) is amended--
            (1) by inserting after the first sentence the following: 
        ``This Agency shall also promote the coordination of volunteer 
        efforts among Federal, State, and local agencies and 
        organizations, exchange technical assistance information among 
        them, and provide technical assistance to other nations 
        concerning domestic volunteer programs within their 
        countries.''; and
            (2) by striking ``Older American Volunteer Programs'' each 
        place the term appears and inserting ``National Senior 
        Volunteer Corps''.

SEC. 362. AUTHORITY OF THE DIRECTOR.

    Section 402 (42 U.S.C. 5042) is amended in paragraphs (5) and (6) 
by inserting ``solicit and'' before ``accept'' in each such paragraph.

SEC. 363. COMPENSATION FOR VOLUNTEERS.

    Section 404 (42 U.S.C. 5044) is amended--
            (1) in subsection (c), by inserting ``from such volunteers 
        or from beneficiaries'' after ``compensation'';
            (2) by striking subsection (f); and
            (3) by redesignating subsection (g) as subsection (f).

SEC. 364. REPEAL OF REPORT.

    Section 407 (42 U.S.C. 5047) is repealed.

SEC. 365. APPLICATION OF FEDERAL LAW.

    Section 415(b)(4)(A) (42 U.S.C. 5055(b)(4)(A)) is amended by 
striking ``a grade GS-7 employee'' and inserting ``an employee at grade 
GS-5 of the General Schedule under section 5332 of title 5, United 
States Code''.

SEC. 366. EVALUATION OF PROGRAMS.

    Section 416 (42 U.S.C. 5056) is amended--
            (1) in subsection (a)--
                    (A) in the first sentence, by striking ``(including 
                the VISTA Literacy Corps which shall be evaluated as a 
                separate program at least once every 3 years)''; and
                    (B) in the second sentence, by striking ``at least 
                once every 3 years'' and inserting ``periodically'';
            (2) in subsection (b) to read as follows:
    ``(b) In carrying out evaluations of programs under this Act, the 
Director shall create appropriate management information systems that 
will summarize information on volunteer activities and accomplishments 
across the programs supported under this Act. The Director shall 
periodically prepare and submit to the appropriate committees of 
Congress a report containing such information.''; and
            (3) by striking subsections (d), (e), (f), and (g).

SEC. 367. NONDISCRIMINATION PROVISIONS.

    Section 417 (42 U.S.C. 5057) is amended to read as follows:

``SEC. 417. NONDISCRIMINATION PROVISIONS.

    ``(a) In General.--
            ``(1) Basis.--An individual with responsibility for the 
        operation of a program that receives assistance under this Act 
        shall not discriminate against a participant in, or member of 
        the staff of, such program on the basis of race, color, 
        national origin, sex, age, or political affiliation of such 
        participant or member, or on the basis of disability, if the 
        participant or member is a qualified individual with a 
        disability.
            ``(2) Definition.--As used in paragraph (1), the term 
        `qualified individual with a disability' has the meaning given 
        the term in section 101(8) of the Americans with Disabilities 
        Act of 1990 (42 U.S.C. 12111(8)).
    ``(b) Federal Financial Assistance.--Any assistance provided under 
this Act shall constitute Federal financial assistance for purposes of 
title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.), 
title IX of the Education Amendments of 1972 (20 U.S.C. 1681 et seq.), 
section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), and the 
Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.).
    ``(c) Religious Discrimination.--
            ``(1) In general.--Except as provided in paragraph (2), an 
        individual with responsibility for the operation of a program 
        that receives assistance under this Act shall not discriminate 
        on the basis of religion against a participant in such program 
        or a member of the staff of such program who is paid with funds 
        received under this Act.
            ``(2) Exception.--Paragraph (1) shall not apply to the 
        employment, with assistance provided under this Act, of any 
        member of the staff, of a program that receives assistance 
        under this Act, who was employed with the organization 
        operating the program on the date the grant under this Act was 
        awarded.
    ``(d) Rules and Regulations.--The Director shall promulgate rules 
and regulations to provide for the enforcement of this section that 
shall include provisions for summary suspension of assistance for not 
more than 30 days, on an emergency basis, until notice and an 
opportunity to be heard can be provided.''.

SEC. 368. ELIMINATION OF SEPARATE REQUIREMENTS FOR SETTING REGULATIONS.

    Section 420 (42 U.S.C. 5060) is repealed.

SEC. 369. CLARIFICATION OF ROLE OF INSPECTOR GENERAL.

    Section 422 (42 U.S.C. 5062) is amended--
            (1) in subsection (a), by inserting ``or the Inspector 
        General'' after ``Director''; and
            (2) in subsection (b), by inserting ``, the Inspector 
        General,'' after ``Director'' each place that such term 
        appears.

SEC. 370. COPYRIGHT PROTECTION.

    Title IV is amended by adding at the end, the following new 
section:

``SEC. 425. PROTECTION AGAINST IMPROPER USE.

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

SEC. 371. CENTER FOR RESEARCH AND TRAINING.

    Title IV (as amended by section 370 of this Act) is further amended 
by adding at the end the following new section:

``SEC. 426. CENTER FOR RESEARCH AND TRAINING.

    ``The Director may establish, directly or by grant or contract, a 
Center for Research and Training on Volunteerism to carry out research 
concerning the impact of volunteerism on individuals, organizations, 
and communities, provide training to help improve programs across the 
United States, and carry out such other functions as the Director 
determines to be appropriate.''.

SEC. 372. DEPOSIT REQUIREMENT CREDIT FOR SERVICE AS A VOLUNTEER.

    (a) Civil Service Retirement System.--
            (1) Creditable service.--Section 8332(j) of title 5, United 
        States Code, is amended--
                    (A) in paragraph (1)--
                            (i) in the first sentence, by inserting 
                        ``the period of an individual's services as a 
                        full-time volunteer enrolled in a program of at 
                        least 1 year in duration under part A, B, or C 
                        of title I of the Domestic Volunteer Service 
                        Act of 1973,'' after ``Economic Opportunity Act 
                        of 1964,'';
                            (ii) in the second sentence, by inserting 
                        ``, as a full-time volunteer enrolled in a 
                        program of at least 1 year in duration under 
                        part A, B, or C of title I of the Domestic 
                        Volunteer Service Act of 1973,'' after 
                        ``Economic Opportunity Act of 1964,''; and
                            (iii) in the last sentence--
                                    (I) by inserting ``or under the 
                                Domestic Volunteer Service Act of 
                                1973'' after ``Economic Opportunity Act 
                                of 1964''; and
                                    (II) by inserting ``or the Director 
                                of ACTION, as appropriate,'' after 
                                ``Director of the Office of Economic 
                                Opportunity''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(3) The provisions of paragraph (1) relating to credit 
        for service as a volunteer or volunteer leader under the 
        Economic Opportunity Act of 1964 or the Domestic Volunteer 
        Service Act of 1973 shall not apply to any period of service as 
        a volunteer or volunteer leader of an employee or Member with 
        respect to which the employee or Member has made the deposit 
        with interest, if any, required by section 8334(l).''.
            (2) Deductions, contributions, and deposits.--
                    (A) In general.--Section 8334 of title 5, United 
                States Code, is amended by adding at the end the 
                following new subsection:
    ``(l)(1) Each employee or Member who has performed service as a 
volunteer or volunteer leader under part A of title VIII of the 
Economic Opportunity Act of 1964, or as a full-time volunteer enrolled 
in a program of at least 1 year in duration under part A, B, or C of 
title I of the Domestic Volunteer Service Act of 1973, before the date 
of the separation from service on which the entitlement to any annuity 
under this subchapter is based may pay, in accordance with such 
regulations as the Office of Personnel Management shall issue, to the 
agency by which the employee is employed or, in the case of a Member or 
a congressional employee, to the Secretary of the Senate or the Clerk 
of the House of Representatives, as appropriate, an amount equal to 7 
percent of the readjustment allowance paid to the employee or Member 
under title VIII of the Economic Opportunity Act of 1964 or title I of 
the Domestic Volunteer Service Act of 1973 for each period of service 
as such a volunteer or volunteer leader.
    ``(2) Any deposit made under paragraph (1) more than 2 years after 
the later of--
            ``(A) the date of enactment of this subsection; or
            ``(B) the date on which the employee or Member making the 
        deposit first becomes an employee or Member,
shall include interest on such amount, computed and compounded annually 
beginning on the date of the expiration of the 2-year period. The 
interest rate that is applicable in computing interest in any year 
under this paragraph shall be equal to the interest rate that is 
applicable for such year under subsection (e).
    ``(3) Any payment received by an agency, the Secretary of the 
Senate, or the Clerk of the House of Representatives under this 
subsection shall be immediately remitted to the Office of Personnel 
Management for deposit in the Treasury of the United States to the 
credit of the Fund.
    ``(4) The Director shall furnish such information to the Office of 
Personnel Management as the Office may determine to be necessary for 
the administration of this subsection.''.
                    (B) Conforming amendment.--Section 8334(e) of title 
                5, United States Code, is amended in paragraphs (1) and 
                (2) by striking ``or (k)'' each place that such term 
                appears and inserting ``(k), or (l)''.
    (b) Federal Employees Retirement System.--
            (1) Creditable service.--Section 8411 of title 5, United 
        States Code, is amended--
                    (A) in subsection (b)(3), by striking ``subsection 
                (f)'' and inserting ``subsection (f) or (h)''; and
                    (B) by adding at the end the following new 
                subsection:
    ``(h) An employee or Member shall be allowed credit for service as 
a volunteer or volunteer leader under part A of title VIII of the 
Economic Opportunity Act of 1964, or as a full-time volunteer enrolled 
in a program of at least 1 year in duration under part A, B, or C of 
title I of the Domestic Volunteer Service Act of 1973, performed at any 
time prior to the separation from service on which the entitlement to 
any annuity under this subchapter is based if the employee or Member 
has made a deposit with interest, if any, with respect to such service 
under section 8422(f).''.
            (2) Deductions, contributions.--Section 8422 of title 5, 
        United States Code, is amended by adding at the end the 
        following new subsection:
    ``(f)(1) Each employee or Member who has performed service as a 
volunteer or volunteer leader under part A of title VIII of the 
Economic Opportunity Act of 1964, or as a full-time volunteer enrolled 
in a program of at least 1 year in duration under part A, B, or C of 
title I of the Domestic Volunteer Service Act of 1973, before the date 
of the separation from service on which the entitlement to any annuity 
under this subchapter, or subchapter V of this chapter, is based may 
pay, in accordance with such regulations as the Office of Personnel 
Management shall issue, to the agency by which the employee is employed 
or, in the case of a Member or a congressional employee, to the 
Secretary of the Senate or the Clerk of the House of Representatives, 
as appropriate, an amount equal to 3 percent of the readjustment 
allowance paid to the employee or Member under title VIII of the 
Economic Opportunity Service Act of 1964 or title I of the Domestic 
Volunteer Service Act of 1973 for each period of service as such a 
volunteer or volunteer leader.
    ``(2) Any deposit made under paragraph (1) more than 2 years after 
the later of--
            ``(A) the date of enactment of this subsection, or
            ``(B) the date on which the employee or Member making the 
        deposit first becomes an employee or Member,
shall include interest on such amount computed and compounded annually 
beginning on the date of the expiration of the 2-year period. The 
interest rate that is applicable in computing interest in any year 
under this paragraph shall be equal to the interest rate that is 
applicable for such year under section 8334(e).
    ``(3) Any payment received by an agency, the Secretary of the 
Senate, or the Clerk of the House of Representatives under this 
subsection shall be immediately remitted to the Office of Personnel 
Management for deposit in the Treasury of the United States to the 
credit of the Fund.
    ``(4) The Director shall furnish such information to the Office of 
Personnel Management as the Office may determine to be necessary for 
the administration of this subsection.''.
    (c) Applicability and Other Provisions.--
            (1) Applicability.--
                    (A) Timing.--The amendments made by subsections (a) 
                and (b) shall apply with respect to credit for service 
                as a volunteer or volunteer leader under the Economic 
                Opportunity Act of 1964 or the Domestic Volunteer 
                Service Act of 1973 to individuals who are entitled to 
                an annuity on the basis of a separation from service 
                occurring before, on, or after the effective date of 
                this Act.
                    (B) Separation.--In the case of any individual 
                whose entitlement to an annuity is based on a 
                separation from service occurring before the date of 
                enactment of this Act, any increase in such 
                individual's annuity on the basis of a deposit made 
                pursuant to section 8334(l) or section 8442(f) of title 
                5, United States Code, as amended by this Act, shall be 
                effective only with respect to annuity payments payable 
                for calendar months beginning after the date of 
                enactment of this Act.
            (2) Action to inform individuals.--The Director of the 
        Office of Personnel Management shall take such action as may be 
        necessary and appropriate to inform individuals entitled to 
        credit under this section for service as a volunteer or 
        volunteer leader, or to have any annuity recomputed, or to make 
        a deposit under this section, of such entitlement.

    CHAPTER 4--AUTHORIZATION OF APPROPRIATIONS AND OTHER AMENDMENTS

SEC. 381. AUTHORIZATION OF APPROPRIATIONS FOR TITLE I.

    Section 501 (42 U.S.C. 5081) is amended to read as follows:

``SEC. 501. NATIONAL VOLUNTEER ANTIPOVERTY PROGRAMS.

    ``(a) Authorizations.--
            ``(1) Volunteers in service to america.--There are 
        authorized to be appropriated to carry out part A of title I, 
        excluding sections 104(e) and 109, $40,000,000 for fiscal year 
        1994, and such sums as may be necessary for each of the fiscal 
        years 1995 through 1998.
            ``(2) Summer program.--There are authorized to be 
        appropriated to carry out section 104(e), such sums as may be 
        necessary for each of the fiscal years 1994 through 1998.
            ``(3) Literacy activities.--There are authorized to be 
        appropriated to carry out section 109, such sums as may be 
        necessary for each of the fiscal years 1994 through 1998.
            ``(4) University year for vista.--There are authorized to 
        be appropriated to carry out part B of title I, such sums as 
        may be necessary for each of the fiscal years 1994 through 
        1998.
            ``(5) Special volunteer programs.--There are authorized to 
        be appropriated to carry out part C of title I, excluding 
        section 125, such sums as may be necessary for each of the 
        fiscal years 1994 through 1998.
            ``(6) Literacy challenge grants.--There are authorized to 
        be appropriated to carry out section 125, such sums as may be 
        necessary for each of the fiscal years 1994 through 1998.
    ``(b) Subsistence.--The minimum level of an allowance for 
subsistence required under section 105(b)(2), to be provided to each 
volunteer under title I, may not be reduced or limited in order to 
provide for an increase in the number of volunteer service years under 
part A of title I.
    ``(c) Limitation.--No part of the funds appropriated to carry out 
part A of title I may be used to provide volunteers or assistance to 
any program or project authorized under part B or C of title I, or 
under title II, unless the program or project meets the antipoverty 
criteria of part A of title I.
    ``(d) Availability.--Amounts appropriated for part A of title I 
shall remain available for obligation until the end of the fiscal year 
following the fiscal year for which the amounts were appropriated.
    ``(e) Volunteer Service Requirement.--
            ``(1) Volunteer service years.--Of the amounts appropriated 
        under this section for parts A, B, and C of title I, including 
        section 125, there shall first be available for part A of title 
        I, including sections 104(e) and 109, an amount not less than 
        the amount necessary to provide 3,700 volunteer service years 
        in fiscal year 1994, 4,000 volunteer service years in fiscal 
        year 1995, 4,500 volunteer service years in fiscal year 1996, 
        5,500 volunteer service years in fiscal year 1997, and 7,500 
        volunteer service years in fiscal year 1998.
            ``(2) Plan.--If the Director determines that funds 
        appropriated to carry out part A, B, or C of title I are 
        insufficient to provide for the years of volunteer service 
        required by paragraph (1), the Director shall submit a plan to 
        the relevant authorizing and appropriations committees of 
        Congress that will detail what is necessary to fully meet this 
        requirement.''.

SEC. 382. AUTHORIZATION OF APPROPRIATIONS FOR TITLE II.

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

``SEC. 502. NATIONAL SENIOR VOLUNTEER CORPS.

    ``(a) Retired and Senior Volunteer Program.--There are authorized 
to be appropriated to carry out part A of title II, $35,800,000 for 
fiscal year 1994, and such sums as may be necessary for each of the 
fiscal years 1995 through 1998.
    ``(b) Foster Grandparent Program.--There are authorized to be 
appropriated to carry out part B of title II, $68,800,000 for fiscal 
year 1994, and such sums as may be necessary for each of the fiscal 
years 1995 through 1998.
    ``(c) Senior Companion Program.--There are authorized to be 
appropriated to carry out part C of title II, $31,700,000 for fiscal 
year 1994, and such sums as may be necessary for each of the fiscal 
years 1995 through 1998.
    ``(d) Demonstration Programs.--There are authorized to be 
appropriated to carry out part E of title II, such sums as may be 
necessary for each of the fiscal years 1994 through 1998.''.

SEC. 383. AUTHORIZATION OF APPROPRIATIONS FOR TITLE IV.

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

``SEC. 504. ADMINISTRATION AND COORDINATION.

    ``(a) In General.--For each of the fiscal years 1994 through 1998, 
there are authorized to be appropriated for the administration of this 
Act as provided for in title IV, 20 percent of the total amount 
appropriated under sections 501 and 502 with respect to such year.
    ``(b) Evaluation and Center for Research and Training.--For each of 
the fiscal years 1994 through 1998, the Director is authorized to 
expend not less than one-half of 1 percent, and not more than 1 
percent, from the amounts appropriated under sections 501 and 502, for 
the purposes prescribed in sections 416 and 426.''.

SEC. 384. CONFORMING AMENDMENTS; COMPENSATION FOR VISTA FECA CLAIMANTS.

    Section 8143(b) of title 5, United States Code, is amended by 
striking ``GS-7'' and inserting ``GS-5 of the General Schedule under 
section 5332 of title 5, United States Code''.

SEC. 385. REPEAL OF AUTHORITY.

    Title VII (42 U.S.C. 5091 et seq.) is repealed.

                     CHAPTER 5--GENERAL PROVISIONS

SEC. 391. TECHNICAL AND CONFORMING AMENDMENTS.

    The Domestic Volunteer Service Act of 1973 (42 U.S.C. 4950 et seq.) 
is amended by striking ``That this Act'' and all that follows through 
the end of the table of contents and inserting the following:

``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    ``(a) Short Title.--This Act may be cited as the `Domestic 
Volunteer Service Act of 1973'.
    ``(b) Table of Contents.--The table of contents is as follows:

``Sec. 1. Short title; table of contents.
``Sec. 2. Volunteerism policy.
           ``TITLE I--NATIONAL VOLUNTEER ANTIPOVERTY PROGRAMS

               ``Part A--Volunteers in Service to America

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

``Sec. 111. Statement of purpose.
``Sec. 112. Authority to operate University Year for VISTA program.
``Sec. 113. Special conditions.
                  ``Part C--Special Volunteer Programs

``Sec. 121. Statement of purpose.
``Sec. 122. Authority to establish and operate special volunteer and 
                            demonstration programs.
``Sec. 123. Technical and financial assistance for improvement of 
                            volunteer programs.
``Sec. 125. Literacy challenge grants.
              ``TITLE II--NATIONAL SENIOR VOLUNTEER CORPS

``Sec. 200. Statement of purposes.
             ``Part A--Retired and Senior Volunteer Program

``Sec. 201. Grants and contracts for volunteer service projects.
                  ``Part B--Foster Grandparent Program

``Sec. 211. Grants and contracts for volunteer service projects.
                   ``Part C--Senior Companion Program

``Sec. 213. Grants and contracts for volunteer service projects.
                      ``Part D--General Provisions

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

``Sec. 231. Authority of Director.
``Sec. 232. Prohibition.
              ``TITLE IV--ADMINISTRATION AND COORDINATION

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

``Sec. 501. National volunteer antipoverty programs.
``Sec. 502. National Senior Volunteer Corps.
``Sec. 504. Administration and coordination.
``Sec. 505. Availability of appropriations.
           ``TITLE VI--AMENDMENTS TO OTHER LAWS AND REPEALERS

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

SEC. 392. EFFECTIVE DATE.

    This subtitle shall become effective on October 1, 1993.

             TITLE IV--TECHNICAL AND CONFORMING AMENDMENTS

SEC. 401. DEFINITION OF DIRECTOR.

    Section 421 of the Domestic Volunteer Service Act of 1973 (42 
U.S.C. 5061) is amended by striking paragraph (1) and inserting the 
following new paragraph:
            ``(1) the term `Director' means the Chairperson and 
        Director of the Corporation for National Service appointed 
        under section 193 of the National and Community Services Act of 
        1990;''.

SEC. 402. REFERENCES TO ACTION AND THE ACTION AGENCY.

    (a) Domestic Volunteer Service Act of 1973.--
            (1) Section 2(b) of the Domestic Volunteer Service Act of 
        1973 (42 U.S.C. 4950(b)) is amended--
                    (A) by striking ``ACTION, the Federal domestic 
                volunteer agency,'' and inserting ``this Act''; and
                    (B) by striking ``ACTION'' and inserting ``the 
                Corporation for National Service''.
            (2) Section 125(b) of such Act (42 U.S.C. 4995(b)) is 
        amended by striking ``the ACTION Agency'' and inserting ``the 
        Corporation''.
            (3) Section 225(e) of such Act (42 U.S.C. 5025(e)) is 
        amended by striking ``the ACTION Agency'' and inserting ``the 
        Corporation''.
            (4) Section 403(a) of such Act (42 U.S.C. 5043(a) is 
        amended--
                    (A) by striking ``the ACTION Agency'' the first 
                place it appears and inserting ``the Corporation under 
                this Act''; and
                    (B) by striking ``the ACTION Agency'' the second 
                place it appears and inserting ``the Corporation''.
            (5) Section 408 of such Act (42 U.S.C. 5048) is amended by 
        striking ``the ACTION Agency'' and inserting ``the 
        Corporation''.
            (6) Section 421(11) of such Act (as added by section 403 of 
        this Act) is further amended by striking ``ACTION'' and 
        inserting ``the Corporation''.
            (7) Section 425 of such Act (as added by section 370 of 
        this Act) is further amended by striking ``ACTION'' and 
        inserting ``the Corporation''.
    (b) Civil Service Retirement System.--Section 8332(j)(1) of title 
5, United States Code (as amended by section 372(a)(1)(A)(iii)(II) of 
this Act) is amended by striking ``the Director of ACTION'' and 
inserting ``the Chairperson of the Corporation for National Service''.
    (c) Inspector General.--Section 8E(a)(2) of the Inspector General 
Act of 1978 (5 U.S.C. App.) is amended--
            (1) by striking ``ACTION,''; and
            (2) by inserting ``the Corporation for National Service 
        (except as provided in section 194(b) of the National and 
        Community Service Act of 1990),'' after ``the Consumer Product 
        Safety Commission,''.
    (d) Public Housing Security.--Section 207(c) of the Public Housing 
Security Demonstration Act of 1978 (Public Law 95-557; 92 Stat. 2093; 
12 U.S.C. 1701z-6 note) is amended--
            (1) in paragraph (3)(ii), by striking ``ACTION'' and 
        inserting ``the Corporation for National Service''; and
            (2) in paragraph (4), by striking ``ACTION'' and inserting 
        ``the Corporation for National Service''.
    (e) National Forest Volunteers.--Section 1 of the Volunteers in the 
National Forests Act of 1972 (16 U.S.C. 558a) is amended by striking 
``ACTION'' and inserting ``the Corporation for National Service''.
    (f) Peace Corps.--Section 2A of the Peace Corps Act (22 U.S.C. 
2501-1) is amended by inserting after ``the ACTION Agency'' the 
following: ``, the successor to the ACTION Agency,''.
    (g) Indian Economic Development.--Section 502 of the Indian 
Financing Act of 1974 (25 U.S.C. 1542) is amended by striking ``ACTION 
Agency'' and inserting ``the Corporation for National Service''.
    (h) Older Americans.--The Older Americans Act of 1965 is amended--
            (1) in section 202(c)(1) (42 U.S.C. 3012(c)(1)), by 
        striking ``the Director of the ACTION Agency'' and inserting 
        ``the Corporation for National Service'';
            (2) in section 203(a)(1) (42 U.S.C. 3013(a)(1)), by 
        striking ``the ACTION Agency'' and inserting ``the Corporation 
        for National Service''; and
            (3) in section 422(b)(12)(C) (42 U.S.C. 3035a(b)(12)(C)), 
        by striking ``the ACTION Agency'' and inserting ``the 
        Corporation for National Service''.
    (i) VISTA Service Extension.--Section 101(c)(1) of the Domestic 
Volunteer Service Act Amendments of 1989 (Public Law 101-204; 103 Stat. 
1810; 42 U.S.C. 4954 note) is amended by striking ``Director of the 
ACTION Agency'' and inserting ``Chairperson of the Corporation for 
National Service''.
    (j) Aging Resource Specialists.--Section 205(c) of the Older 
Americans Amendments of 1975 (Public Law 94-135; 89 Stat. 727; 42 
U.S.C. 5001 note) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``the ACTION Agency,'' and 
                inserting ``the Corporation for National Service,''; 
                and
                    (B) by striking ``the Director of the ACTION 
                Agency'' and inserting ``the Chairperson of the 
                Corporation'';
            (2) in paragraph (2)(A), by striking ``ACTION Agency'' and 
        inserting ``Corporation''; and
            (3) in paragraph (3), by striking subparagraph (A) and 
        inserting the following new subparagraph:
            ``(A) the term `Corporation' means the Corporation for 
        National Service established by section 191 of the National and 
        Community Service Act of 1990.''.
    (k) Promotion of Photovoltaic Energy.--Section 11(a) of the Solar 
Photovoltaic Energy Research, Development, and Demonstration Act of 
1978 (42 U.S.C. 5590) is amended by striking ``the Director of 
ACTION,''.
    (l) Coordinating Council on Juvenile Justice.--Section 206(a)(1) of 
the Juvenile Justice and Delinquency Prevention Act of 1974 (42 U.S.C. 
5616(a)(1)) is amended by striking ``the Director of the ACTION 
Agency'' and inserting ``the Chairperson of the Corporation for 
National Service''.
    (m) Energy Conservation.--Section 413(b)(1) of the Energy 
Conservation and Production Act (42 U.S.C. 6863(b)(1)) is amended by 
striking ``the Director of the ACTION Agency,''.
    (n) Interagency Council on the Homeless.--Section 202(a) of the 
Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11312(a)) is 
amended by striking paragraph (12) and inserting the following new 
paragraph:
            ``(12) The Chairperson of the Corporation for National 
        Service, or the designee of the Chairperson.''.
    (o) Anti-Drug Abuse.--Section 3601 of the Anti-Drug Abuse Act of 
1988 (42 U.S.C. 11851) is amended by striking paragraph (6) and 
inserting the following new paragraph:
            ``(6) the term `Director' means the Chairperson and 
        Director of the Corporation for National Service,''.
    (p) Administration on Children, Youth, and Families.--Section 
916(b) of the Claude Pepper Young Americans Act of 1990 (42 U.S.C. 
12312(b)) is amended by striking ``the Director of the ACTION Agency'' 
and inserting ``the Chairperson of the Corporation for National 
Service''.

SEC. 403. DEFINITIONS.

    Section 421 of the Domestic Volunteer Service Act of 1973 (42 
U.S.C. 5061) is amended--
            (1) by striking ``and'' at the end of paragraph (6);
            (2) by striking the period at the end of paragraph (7) and 
        inserting a semicolon; and
            (3) by adding at the end the following new paragraphs:
            ``(8) the term `Corporation' means the Corporation for 
        National Service established under section 191 of the National 
        and Community Service Act of 1990;
            ``(9) the term `foster grandparent' means a volunteer in 
        the Foster Grandparent Program;
            ``(10) the term `Foster Grandparent Program' means the 
        program established under part B of title II;
            ``(11) the term `Inspector General' means the Inspector 
        General of ACTION;
            ``(12) the term `national senior volunteer' means a 
        volunteer in the National Senior Volunteer Corps;
            ``(13) the term `National Senior Volunteer Corps' means the 
        programs established under parts A, B, C, and E of title II;
            ``(14) the term `Retired and Senior Volunteer Program' 
        means the program established under part A of title II;
            ``(15) the term `retired or senior volunteer' means a 
        volunteer in the Retired and Senior Volunteer Program;
            ``(16) the term `senior companion' means a volunteer in the 
        Senior Companion Program;
            ``(17) the term `Senior Companion Program' means the 
        program established under part C of title II;
            ``(18) the terms `VISTA' and `Volunteers in Service to 
        America' mean the program established under part A of title I; 
        and
            ``(19) the term `VISTA volunteer' means a volunteer in 
        VISTA.''.

SEC. 404. REFERENCES TO THE COMMISSION ON NATIONAL AND COMMUNITY 
              SERVICE.

    (a) National Defense Authorization Act for Fiscal Year 1993.--
            (1) Section 1092(b) of the National Defense Authorization 
        Act for Fiscal Year 1993 (42 U.S.C. 12653a note) is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``Commission on National 
                        Community Service'' and inserting ``Corporation 
                        for National Service''; and
                            (ii) by striking ``Commission shall 
                        prepare'' and inserting ``Board of Directors of 
                        the Corporation shall prepare''; and
                    (B) in paragraph (2), by striking ``Board of 
                Directors of the Commission on National and Community 
                Service'' and inserting ``Board of Directors of the 
                Corporation for National Service''.
            (2) Section 1093(a) of such Act (42 U.S.C. 12653a note) is 
        amended by striking ``the Board of Directors and Executive 
        Director of the Commission on National and Community Service'' 
        and inserting ``the Board of Directors and Chairperson of the 
        Corporation for National Service''.
            (3) Section 1094 of such Act (Public Law 102-484; 106 Stat. 
        2535) is amended--
                    (A) in the title, by striking ``commission on 
                national and community service'' and inserting 
                ``corporation for national service'';
                    (B) in subsection (a)--
                            (i) in the heading, by striking 
                        ``Commission'' and inserting ``Corporation'';
                            (ii) in the first sentence, by striking 
                        ``Commission on National and Community 
                        Service'' and inserting ``Corporation for 
                        National Service''; and
                            (iii) in the second sentence, by striking 
                        ``The Commission'' and inserting ``The 
                        Chairperson of the Corporation''; and
                    (C) in subsection (b)--
                            (i) in paragraph (1), by striking ``Board 
                        of Directors of the Commission on National and 
                        Community Service'' and inserting ``Chairperson 
                        of the Corporation for National Service''; and
                            (ii) in paragraph (2), by striking ``the 
                        Commission'' and inserting ``the Chairperson of 
                        the Corporation for National Service''.
            (4) Section 1095 of such Act (Public Law 102-484; 106 Stat. 
        2535) is amended in the heading for subsection (b) by striking 
        ``Commission on National and Community Service'' and inserting 
        ``Corporation for National Service''.
            (5) Section 2(b) of such Act (Public Law 102-484; 106 Stat. 
        2315) is amended by striking the item relating to section 1094 
        of such Act and inserting the following:

``Sec. 1094. Other programs of the Corporation for National Service.''.
    (b) National and Community Service Act of 1990.--
            (1) Sections 159(b)(2) (as redesignated in section 
        104(b)(3) of this Act) and 165 (as redesignated in section 
        104(b)(3) of this Act), subsections (a) and (b) of section 172, 
        sections 176(a) and 177(c), and subsections (a), (b), and (d) 
        through (h) of section 179, of the National and Community 
        Service Act of 1990 (42 U.S.C. 12653h(b)(2), 12653n, 12632 (a) 
        and (b), 12636(a), 12637(c), and 12639 (a), (b), and (d) 
        through (h)) are each amended by striking the term 
        ``Commission'' each place the term appears and inserting 
        ``Corporation''.
            (2) Sections 152, 157(b)(2), 159(b), 162(a)(2)(C), 164, and 
        166(1) of such Act (in each case, as redesignated in section 
        104(b)(3) of this Act) (42 U.S.C. 12653a, 12653f(b)(2), 
        12653h(b), 12653k(a)(2)(C), 12653m, and 12653o(1)) are each 
        amended by striking ``Commission on National and Community 
        Service'' and inserting ``Corporation''.
            (3) Section 163(b)(9) of such Act (as redesignated in 
        section 104(b)(3) of this Act) (42 U.S.C. 12635l(b)(9)) is 
        amended by striking ``Chair of the Commission on National and 
        Community Service'' and inserting ``Chairperson''.
            (4) Section 303(a) of such Act (42 U.S.C. 12662(a)) is 
        amended--
                    (A) by striking ``The President'' and inserting 
                ``The President, acting through the Corporation,'';
                    (B) by inserting ``in furtherance of activities 
                under section 302'' after ``section 501(b)''; and
                    (C) by striking ``the President'' both places it 
                appears and inserting ``the Corporation''.

SEC. 405. REFERENCES TO DIRECTORS OF THE COMMISSION ON NATIONAL AND 
              COMMUNITY SERVICE.

    (a) Chairperson.--
            (1) Section 159(a) of such Act (as redesignated in section 
        104(b)(3) of this Act) (42 U.S.C. 12653h(b)) is amended--
                    (A) by striking ``Board.--The Board'' and inserting 
                ``Supervision.--The Chairperson'';
                    (B) by striking ``the Board'' in the matter 
                preceding the paragraphs and in paragraph (1) and 
                inserting ``the Chairperson''; and
                    (C) by striking ``the Director'' in paragraph (1) 
                and inserting ``the Board''.
            (2) Section 159(b) of such Act (as redesignated in section 
        104(b)(3) of this Act) (42 U.S.C. 12653h(b)) is amended by 
        striking ``(b)'' and all that follows through ``Commission on 
        National and Community Service'' and inserting ``(b) Monitoring 
        and Coordination.--The Chairperson''.
            (3) Section 159(c)(1) (as redesignated in section 104(b)(3) 
        of this Act) (12653h(c)(1)) is amended--
                    (A) in subparagraph (A), by striking ``the Board, 
                in consultation with the Executive Director,'' and 
                inserting ``Chairperson''; and
                    (B) in subparagraph (B)(iii), by striking ``the 
                Board through the Executive Director''.
            (4) Section 166(6) (as redesignated in section 104(b)(3) of 
        this Act) (42 U.S.C. 12653o(6)) is amended--
                    (A) by striking paragraph (6); and
                    (B) by redesignating paragraphs (7) through (11) as 
                paragraphs (6) through (10), respectively.
    (b) Director of Civilian Community Corps.--Sections 155(a), 
157(b)(1)(A), 158(a), 159(c)(1)(A), and 163(a) (in each case, as 
redesignated in section 104(b)(3) of this Act) of the National and 
Community Service Act of 1990 (42 U.S.C. 12653d(a), 12653f(b)(1)(A), 
12653g(a), 12653h(c)(1)(A), and 12653l(a)) are amended by striking 
``Director of Civilian Community Corps'' each place the term appears 
and inserting ``Director''.

SEC. 406. EFFECTIVE DATE.

    (a) ACTION.--The amendments made by sections 401 and 402 (except 
subsection (c)(2)) shall take effect on the effective date of section 
203.
    (b) Commission.--The amendments made by section 402(c)(2), and 
sections 403 through 405, will take effect on October 1, 1993.

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