I
103D CONGRESS
1ST SESSION
H. R. 1193
To establish a program of voluntary national service for young people and
senior citizens.
IN THE HOUSE OF REPRESENTATIVES
MARCH 3, 1993
Mrs. KENNELLY introduced the following bill; which was referred jointly to
the Committees on Armed Services, Education and Labor, Veterans’ Af-
fairs, Ways and Means, and Foreign Affairs
A BILL
To establish a program of voluntary national service for
young people and senior citizens.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘National Voluntary
Service and Educational Opportunity Act of 1993’’.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Purposes.
Sec. 4. Definitions.
TITLE I—ESTABLISHMENT OF THE CITIZENS CORPS
Sec. 101. Establishment of the Citizens Corps.
Sec. 102. Individuals eligible to serve in the Citizens Corps.
Sec. 103. Terms of service.
Sec. 104. Types of national and community service.
Sec. 105. Application to serve in the Citizens Corps.
TITLE II—ADMINISTRATION OF THE CITIZENS CORPS
Subtitle A—Administration of the Civilian Service and Senior Service
Sec. 201. Administration of the Civilian Service and Senior Service.
Sec. 202. Duties of the Commission.
Sec. 203. Eligibility for general grants.
Sec. 204. Allocation of funds.
Sec. 205. Reports.
Subtitle B—Provision of National Service Positions for Members of the
Civilian Service and Senior Service
Sec. 221. National service plans and volunteer service areas.
Sec. 222. Establishment of national service councils.
Sec. 223. Duties of national service councils.
Sec. 224. Volunteer recruitment and placement plan.
Sec. 225. Review and approval of plan.
Sec. 226. Service sponsors.
Subtitle C—Deferred Placement of Members of the Civilian Service
Sec. 231. Deferred Placement Program.
Sec. 232. Eligibility to participate in Deferred Placement Program.
Sec. 233. Acceptance.
Sec. 234. Limitation on the use of assistance and reduction of subsequent as-
sistance.
Sec. 235. Placement.
Sec. 236. Breach of contract.
Subtitle D—Administration of the Citizens Corps With Regard to Service in
the Armed Forces
Sec. 241. Administration of the Citizens Corps with regard to service in the
Armed Forces.
Sec. 242. Deferred enlistment.
Sec. 243. Reports.
TITLE III—BENEFITS FOR PARTICIPATING IN THE CITIZENS
CORPS
Sec. 301. Stipend and support services for members of the Civilian Service and
Senior Service.
Sec. 302. Compensation for members of the Citizens Corps serving in the
Armed Forces.
Sec. 303. Educational and housing benefits for members of the Civilian Service
of the Citizens Corps.
Sec. 304. Educational and housing benefits for members of the Citizens Corps
serving in the Armed Forces.
Sec. 305. Provision of educational benefits.
Sec. 306. Provision of housing benefits.
Sec. 307. Time limitation on the use of assistance.
Sec. 308. Exclusion of assistance from gross income.
Sec. 309. Recoupment of assistance.
Sec. 310. Reports.
TITLE IV—MISCELLANEOUS PROVISIONS
Sec. 401. Educational and housing benefits for participants in the Peace Corps
and VISTA.
Sec. 402. Authorization of appropriations.
Sec. 403. Effective date.
SEC. 3. PURPOSES.
The purposes of this Act are—
(1) to renew the ethic of civic obligation in the
United States and spread
the
responsibilities
of
citizenship more equitably;
(2) to expand opportunities for young people in
the United States to—
(A) pursue educational, vocational, and
professional objectives after secondary school;
and
(B) purchase affordable housing;
(3) to mobilize young people and senior Ameri-
cans to deal with pressing social problems in the
United States, including health, education, literacy,
child care, hunger, housing, and homelessness;
(4) to give senior Americans the opportunity to
use their special skills and experience to—
(A) provide national service; and
(B) assist the Commission on National and
Community Service and national service coun-
cils in administering national service programs;
(5) to strengthen national defense by—
(A) encouraging more young people to vol-
unteer for service in the active and reserve com-
ponents of the Armed Forces;
(B) making the composition of the Armed
Forces more representative of the country at
large; and
(C) assisting the Armed Forces in meeting
their personnel goals; and
(6) to give young people the experience, self-dis-
cipline, and self-confidence they need to overcome
barriers to opportunity.
SEC. 4. DEFINITIONS.
For purposes of this Act:
(1) The term ‘‘active duty’’ has the meaning
given to such term in section 101(22) of title 10,
United States Code.
(2) The term ‘‘area’’ means a volunteer service
area.
(3) The term ‘‘Armed Forces’’ has the meaning
given to such term in section 101(4) of title 10,
United States Code.
(4) The term ‘‘Citizens Corps’’ means the na-
tional service program established under section
101.
(5) The term ‘‘Commission’’ means the Com-
mission on National and Community Service estab-
lished under section 190 of the National and Com-
munity Service Act of 1990 (42 U.S.C. 12651).
(6) The term ‘‘community service’’ means serv-
ice of the type described in section 104(a) and such
other services essential and necessary to the commu-
nity as the Corporation, by rule, may prescribe.
(7) The term ‘‘council’’ means a national serv-
ice council.
(8) The term ‘‘Deferred Placement Program’’
means the deferred placement program for members
of the Civilian Service established in subtitle C of
title II.
(9) The term ‘‘educational institution’’ means a
vocational school (including a technical school) or in-
stitution of higher learning.
(10) The
term
‘‘Governor’’
means
the
chief executive officer of a State.
(11) The term ‘‘Individual Ready Reserve’’
means that portion of the Ready Reserve not in a
Selected Reserve.
(12) The term ‘‘institution of higher learning’’
has the meaning given to such term in section
1652(f) of title 38, United States Code.
(13) The term ‘‘local government’’ means a
general purpose political subdivision of a State which
has the power to levy taxes and spend funds, as well
as general corporate and police powers.
(14) The term ‘‘nonprofit organization’’ means
an organization—
(A) described in section 501(c) of the In-
ternal Revenue Code of 1986 (26 U.S.C.
501(c)); and
(B) exempt from taxation under section
501(a) of such Code (26 U.S.C. 501(a)).
(15) The term ‘‘program of education or train-
ing’’ means any curriculum or any combination of
unit courses or subjects pursued at an educational
institution or training establishment which is gen-
erally accepted as necessary to fulfill requirements
for the attainment of a predetermined and identified
educational, professional, or vocational objective.
Such term also means any curriculum of unit
courses or subject pursued at an educational institu-
tion or training establishment which fulfills require-
ments for the attainment of more than one predeter-
mined and identified educational, professional, or vo-
cational objective if the objectives pursued are gen-
erally recognized as being reasonably related to a
single career field.
(16) The term ‘‘Ready Reserve’’ means the
Ready Reserve described in section 268(a) of title
10, United States Code.
(17) The term ‘‘reserve component’’ has the
meaning given to such term in 101(24) of title 37,
United States Code.
(18) The term ‘‘school dropout’’ has the mean-
ing established for such term by the Secretary of
Education under section 6201(a) of the Elementary
and Secondary Education Act of 1964 (20 U.S.C.
3271(a)).
(19) The term ‘‘Secretary concerned’’ has the
meaning given to such term in section 101(8) of title
10, United States Code.
(20) The term ‘‘senior’’ means an individual
who is age 65 or over and willing to work full- or
part-time in national service.
(21) The term ‘‘Selected Reserve’’ means the
Selected Reserve described in section 268(b) of title
10, United States Code.
(22) The term ‘‘State’’ means any of the sev-
eral States, the District of Columbia, American
Samoa, the Federated States of Micronesia, Guam,
the Republic of the Marshall Islands, the Common-
wealth of the Northern Mariana Islands; the
Commonwealth
of
Puerto
Rico,
Palau,
and
the
Virgin Islands.
(23) The term ‘‘training establishment’’ has the
meaning given to such term in section 1652(e) of
title 38, United States Code.
(24) The term ‘‘vocational school’’ has the
meaning given to such term in section 435(c) of the
Higher Education Act of 1965 (20 U.S.C. 1085(c)).
TITLE I—ESTABLISHMENT OF
THE CITIZENS CORPS
SEC. 101. ESTABLISHMENT OF THE CITIZENS CORPS.
There is hereby established a Citizens Corps which
shall provide the following national service options:
(1) Civilian Service.
(2) Service in the Armed Forces.
(3) Senior Service.
SEC. 102. INDIVIDUALS ELIGIBLE TO SERVE IN THE CITI-
ZENS CORPS.
(a) CIVILIAN SERVICE.—
(1) ELIGIBILITY.—An individual may serve in
the Civilian Service of the Citizens Corps if such in-
dividual—
(A) is age 17 or over;
(B) has received a high school diploma or
its equivalent or is a school dropout; and
(C) is a citizen of the United States or
lawfully admitted for permanent residence.
(2) SPECIAL RULE FOR SCHOOL DROPOUTS.—
An individual who is a school dropout may serve in
the Civilian Service of the Citizens Corps only if the
individual enters into an agreement with a national
service council to pursue a course of study, approved
by the appropriate State agency, designed to result
in the individual earning the equivalent of a high
school
diploma
during
the
term
of
service
of
the individual.
(b) SERVICE IN THE ARMED FORCES.—Subject to
the then existing personnel requirements of the Armed
Forces, an individual shall be eligible to enlist for service
in the Armed Forces as a member of the Citizens Corps
if such individual—
(1) has received a high school diploma or its
equivalent;
(2) satisfies the applicable requirements for en-
listment in the Armed Forces specified in chapter 31
of title 10, United States Code; and
(3) satisfies such other eligibility criteria estab-
lished by the Secretary of Defense by rule.
(c) SENIOR SERVICE.—An individual may serve in
the Senior Service of the Citizens Corps if such individ-
ual—
(1) is a senior; and
(2) meets the eligibility criteria for service in
the Senior Service established by the Commission.
SEC. 103. TERMS OF SERVICE.
(a) CIVILIAN SERVICE.—
(1) ONE-YEAR TERM.—An individual serving in
the Civilian Service of the Citizens Corps shall agree
to perform full-time national service in such service
for a one-year term.
(2) EXTENSION.—A member of the Civilian
Service of the Citizens Corps serving a one-year
term of service may request the extension of such
term for an additional year. The Commission shall
issue rules specifying the procedure for making and
considering such a request.
(b) SERVICE IN THE ARMED FORCES.—An individual
enlisting for service in the Armed Forces as a member
of the Citizens Corps shall select one of
the
following
service obligations in the Armed Forces:
(1) Two years of active duty in the Armed
Forces, two years in the Selected Reserve of a re-
serve component, and four years in the Individual
Ready Reserve.
(2) Eight
years
in
the
Selected
Reserve
of
a reserve component.
(c) SENIOR SERVICE.—An Individual may serve in
the Senior Service of the Citizens Corps—
(1) for such period of time as allowed by the
Commission; and
(2) for either full- or part-time service.
SEC. 104. TYPES OF NATIONAL AND COMMUNITY SERVICE.
(a) CIVILIAN SERVICE AND SENIOR SERVICE.—An
individual serving in the Civilian Service or Senior Service
of the Citizens Corps may perform national service to meet
the unmet service needs of a State, local government or
other community. Such national service may include the
following types of service:
(1) Educational service, such as literacy pro-
grams, Head Start, tutorial assistance, and service
in schools, libraries, and adult education centers.
(2) Human service, such as—
(A) service in hospitals, hospices, clinics,
community health centers, homes for the elder-
ly, and child-care centers; and
(B) service in programs to assist the elder-
ly, poor, and homeless, including programs to
build, restore, and maintain housing for the
poor and homeless.
(3) Conservation service, such as service in pro-
grams to conserve, maintain, and restore natural re-
sources in the urban and rural environment, provide
recreational opportunities, and encourage community
betterment or beautification.
(4) Public Safety service in support of the
criminal justice system, including police, courts,
prisons, and border patrol.
(5) Service in existing national programs, such
as referral and placement in the Peace Corps and
VISTA.
(b) SERVICE IN THE ARMED FORCES.—The Sec-
retary of Defense shall designate by rule appropriate na-
tional service positions for members of the Citizens Corps
serving in the Armed Forces.
SEC. 105. APPLICATION TO SERVE IN THE CITIZENS CORPS.
(a) CIVILIAN SERVICE AND SENIOR SERVICE.—
(1) APPLICATION.—To serve in the Civilian or
Senior Service of the Citizens Corps, an individual
shall submit an application to a national service
council established under section 222 for a volunteer
service area in the State in which the applicant is
a resident. The application shall be in such form and
containing such information as the Commission shall
require by rule.
(2) RESIDENCY REQUIREMENTS.—For purposes
of paragraph (1), an individual shall be considered
a resident of a State if such individual has resided
in such State for the majority of the 1-year period
immediately preceding the date of such application.
The Corporation on an individual basis may waive
this residency requirement.
(3) PLACEMENT.—Upon the receipt of an appli-
cation, the national service council may place the ap-
plicant in a national service position in the area tak-
ing into consideration the preference and skills of
the applicant and the needs of the area. If the area
does not have a national service position available
for the applicant, or the council determines (after
consultation with the applicant) that the applicant is
better qualified for a position outside of the area,
the council may refer the applicant for placement to
another national service council or a Federal, State,
or local government agency accepting members of
the Citizens Corps.
(4) MEMBERS TREATED AS VOLUNTEERS.—For
purposes of Federal laws authorizing a Federal
agency to accept the services of a volunteer, an ap-
plicant placed with an agency described in para-
graph (3) shall be considered to be a volunteer.
(b) SERVICE IN THE ARMED FORCES.—The Sec-
retary of Defense shall establish a system to enlist individ-
uals for service in the Armed Forces as members of the
Citizens Corps.
TITLE II—ADMINISTRATION OF
THE CITIZENS CORPS
Subtitle A—Administration of the
Civilian Service and Senior Service
SEC. 201. ADMINISTRATION OF THE CIVILIAN SERVICE AND
SENIOR SERVICE.
The Commission on National and Community Service
shall be responsible for administering the Civilian Service
and Senior Service of the Citizens Corps.
SEC. 202. DUTIES OF THE COMMISSION.
(a) ESTABLISHMENT OF POLICY AND OVERSIGHT
RESPONSIBILITIES.—The Corporation shall by rule—
(1) establish the types and amounts of allow-
ances and support authorized for
members
of
the
Civilian and Senior Services under section 301;
(2) specify the types of national service activi-
ties appropriate for members of the Civilian and
Senior Services;
(3) establish a procedure to monitor the provi-
sion of financial assistance under title III to assure
that—
(A) graduates of the Citizens Corps faith-
fully completed their terms of service
before
receiving such assistance; and
(B) members of the Citizens Corps receiv-
ing such assistance during their terms of serv-
ice faithfully perform national service;
(4) establish a procedure for examining the ef-
fect that national service under this Act has on the
availability and terms of employment of employees in
the
volunteer
service
area
where
such
service
is performed; and
(5) establish the rates of pay, eligibility criteria,
and terms of service
for
members
of
the
Sen-
ior Service.
(b) GENERAL GRANTS.—Pursuant to the allocation
formulas specified in section 204, the Commission shall
make grants to States to assist such States—
(1) in paying stipends and wages under section
301;
(2) in providing and administering national
service opportunities in each State for members of
the Civilian and Senior Services; and
(3) in making grants to national service coun-
cils in each State to carry out their duties under this
Act.
(c) SUPPLEMENTAL GRANTS.—
(1) AUTHORITY TO PROVIDE.—The Commission
may make grants during a fiscal year—
(A) to a State which the Commission de-
termines has an unusual increase in the number
of members of the Civilian and Senior Services
(excluding members serving with Federal agen-
cies) in such State for such fiscal year; and
(B) to a Federal agency to assist such
agency in accepting or placing members of the
Civilian and Senior Services for such fiscal
year.
(2) ELIGIBILITY.—To be eligible for a grant
under paragraph (1), a Federal agency or State
shall submit to the Commission an application—
(A) in such form and at such time as the
Commission may require by rule;
(B) containing, in the case of an applica-
tion submitted by a State, the assurances speci-
fied in section 203(c); and
(C) containing such other information as
the Commission may require by rule.
(d) OTHER DUTIES.—
(1) 
INFORMATION.—The 
Commission 
shall
serve as a source for information on national service
opportunities in the United States.
(2) PLACEMENT
ASSISTANCE.—The Commis-
sion shall assist a State in placing applicants outside
of such State if the State is unable to place the ap-
plicant in a position in the State and shall assist
Federal agencies in acquiring participants for na-
tional service positions in the Federal Government.
(3) INVESTIGATIONS.—The Commission shall
receive and investigate claims of abuses in the place-
ment of participants or the administration of
national
service
opportunities
by
a
State,
na-
tional service council, or service provider.
(4) ACADEMIC CREDIT.—The Commission shall
encourage institutions of higher education to confer
appropriate academic credit to members of the Citi-
zens Corps who successfully complete their term of
service.
(e) RECORDS.—The Commission shall keep accurate
and complete records of its activities and transactions.
Such records shall be made available for audit and exam-
ination by the Comptroller General of the United States
or
duly
authorized
representatives
of
the
Comp-
troller General.
SEC. 203. ELIGIBILITY FOR GENERAL GRANTS.
(a) APPLICATION REQUIRED.—To be eligible for a
grant under section 202(b), a State shall submit to the
Commission an application describing—
(1) each volunteer service area in such State;
(2) the method by which members of the Civil-
ian and Senior Services will be placed in national
service positions in the State;
(3) the anticipated number of such members
during such term;
(4) the training and support services that will
be provided such members; and
(5) the method by which service sponsors will
be selected and the requirements imposed on such
sponsors.
(b) COPIES OF MATERIALS.—A State shall include
in an application submitted under subsection (a) copies
of all volunteer recruitment and placement plans prepared
for the State for the period covered by the application.
(c) ASSURANCES.—An application submitted under
subsection (a) shall contain assurances by the State that
for the period covered by the application—
(1) the State will use non-Federal funds to pay
not less than 25 percent of the cost (including the
cost of stipends, wages, and allowances provided by
the State under section 301) of providing and ad-
ministering national service positions in the State
for members of the Civilian and Senior Services
(other than members placed with Federal agencies);
and
(2) the State will maintain State expenditures
for community service programs operated by the
State on the effective date of this Act at a level
equal to not less than the average level of such ex-
penditures maintained by the State for the two-fis-
cal-year period immediately preceding the effective
date of this Act.
(d) TIME AND FORM.—An application under sub-
section (a) shall be in such form and shall be submitted
at such time as the Commission may require and shall
contain such other information as the Commission consid-
ers to be appropriate.
(e) EXCEPTION
TO MATCHING FUNDS REQUIRE-
MENT.—A State may offset against the matching funds
requirement specified in subsection (c)(1) not more than
50 percent of the administrative costs incurred by the
State in administering community service programs for
young people operated by the State on the effective date
of this Act.
(f) WAIVER OF REQUIREMENT TO MAINTAIN EX-
PENDITURES.—The Commission may, upon the request of
a State, waive the requirement specified in subsection
(c)(2) that the State maintain expenditures for community
service programs if the Commission determines that ex-
traordinary economic conditions in the State justify the
waiver.
SEC. 204. ALLOCATION OF FUNDS.
(a) TRANSITIONAL ALLOCATIONS.—For each fiscal
year during the five-year period beginning on the effective
date of this Act, the Commission shall make a grant to
an eligible State in an amount that bears the same ratio
to the sums appropriated for grants under section 202(b)
for such fiscal year as the anticipated average number of
members in the Civilian and Senior Services (as deter-
mined by the Commission and excluding anticipated mem-
bers serving with Federal agencies) in such State for such
fiscal year bears to the anticipated average number of
such members in all States for such fiscal year.
(b) SUBSEQUENT ALLOCATIONS.—For each fiscal
year beginning after the end of the five-year period re-
ferred to in subsection (a), the Commission shall make a
grant to an eligible State in an amount that bears the
same ratio to the sums appropriated for grants under sec-
tion 202(b) for such fiscal year as the average number
of members in the Civilian and Senior Services (excluding
members serving with Federal agencies) in such State for
the preceding fiscal year bears to the average number of
such members in all States for the preceding fiscal year.
SEC. 205. REPORTS.
(a) REQUIRED.—On or before May 15 of each cal-
endar year, the Commission shall submit to the President
a report on the operation of the Civilian Service and the
Senior Service of the Citizens Corps and the activities of
the Commission during the preceding fiscal year. The
President shall
transmit
a
copy
of
the
report
to
the Congress.
(b) CONTENT OF REPORT.—
(1) IN GENERAL.—Each report shall include a
comprehensive and detailed description of the oper-
ations, activities, financial condition, and accom-
plishments of the Commission under this Act during
the fiscal year covered
by
such
report
and
such recommendations as the Commission considers
appropriate.
(2) SPECIAL REQUIREMENTS FOR INITIAL RE-
PORTS.—In the first five reports submitted under
subsection (a), the Commission shall specify—
(A) the anticipated number of national
service positions that will be available for mem-
bers of the Civilian Service and Senior Service
of the Citizens Corps in the fiscal year begin-
ning in the calendar year in which such report
is submitted; and
(B) the anticipated cost of operating the
Civilian Service and Senior Service
for
such
fiscal year.
Subtitle B—Provision of National
Service Positions for Members
of the Civilian Service and Sen-
ior Service
SEC. 221. NATIONAL SERVICE PLANS AND VOLUNTEER
SERVICE AREAS.
(a) NATIONAL SERVICE PLAN.—The Governor of
each State shall prepare a national service plan for the
State, which shall specify priorities in the State for provid-
ing national service opportunities for members of the
Civilian and Senior Services of the Citizens Corps.
(b) VOLUNTEER SERVICE AREAS.—Pursuant to the
plan prepared under subsection (a), the Governor shall
designate volunteer service areas for the State, each of
which—
(1) is comprised of the State or one or more ju-
risdictions of units of general local government;
(2) will promote effective provision of national
services; and
(3) is
consistent
with
other
designated
areas in which related services are
provided
under
other Federal or State programs.
(c) CONSULTATION.—Before preparing the national
service plan or designating (or redesignating) a volunteer
service area, the Governor shall consult with—
(1) appropriate State and local government offi-
cials;
(2) representatives of community service organi-
zations, educational institutions, business organiza-
tions, and organized labor; and
(3) other affected persons or organizations in
the area.
(d) REDESIGNATION.—
(1) TWO YEAR DELAY.—Effective after the end
of the two-year period beginning on the date the
Governor first designates volunteer service areas
under subsection (b), the Governor may redesignate
such areas in accordance with such subsection.
(2) SPECIAL
RULE.—Notwithstanding para-
graph (1), the Governor shall consider making such
a redesignation at the request of the Commission.
SEC. 222. ESTABLISHMENT OF NATIONAL SERVICE COUN-
CILS.
(a) COMPOSITION OF LOCAL COUNCILS.—There shall
be a national service council for each volunteer service
area established under section 221. A council shall consist
of—
(1) representatives of nonprofit community
service organizations in the area who have substan-
tial management or policy responsibility with such
organizations;
(2) representatives of local governments;
(3) representatives of educational agencies and
institutions, business concerns, rehabilitation agen-
cies, community-based organizations, and economic
development agencies in the area; and
(4) representatives of organized labor.
(b) CHAIRPERSON.—The members of a council shall
select one of the members to serve as chairperson of the
council.
(c) SELECTION OF MEMBERS.—
(1) 
EDUCATION
REPRESENTATIVES.—Edu-
cation representatives on a council shall be selected
from among individuals recommended by local edu-
cational agencies, vocational education institutions,
institutions of higher learning, or general organiza-
tions of such agencies or institutions, and by private
and proprietary schools or general organizations of
such schools, within the area.
(2) LABOR
REPRESENTATIVES.—Labor rep-
resentatives on a council shall be recommended by
recognized State and local labor organizations or
appropriate building trades councils.
(3) OTHER
MEMBERS.—The remaining mem-
bers of a council shall be selected from individuals
recommended by interested organizations.
(d) METHOD OF SELECTION.—
(1) SINGLE LOCAL GOVERNMENT.—In any case
in which there is only one unit of local government
in the volunteer service area, the chief executive offi-
cer of such unit shall appoint members to the coun-
cil from the individuals recommended under sub-
section (c).
(2) MULTIPLE LOCAL GOVERNMENTS.—In any
case in which there are two or more such units of
local government in the area, the chief executive offi-
cers of such units shall appoint members to the
council from the individuals so recommended in ac-
cordance with an agreement entered into by such
units of general local government. In the absence of
such an agreement, the
appointments
shall
be
made by the Governor from the individuals so
recommended.
(e) NUMBER OF MEMBERS.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the number of members of a council shall
be determined by the council.
(2) INITIAL SELECTION.—The initial number of
members of a council shall be determined—
(A) by the chief executive officer in the
case described in subsection (d)(1);
(B) by the chief executive officers in ac-
cordance with the agreement in the
case
described in subsection (d)(2); or
(C) by the Governor in the absence of such
agreement.
(f) TERMS.—Members shall be appointed for fixed
and staggered terms and may serve until their successors
are appointed. Any vacancy in the membership of the
council shall be filled in the same manner as the original
appointment. Any member of the council may be removed
by the council for cause in
accordance
with
procedures
established by the council.
(g) CERTIFICATION OF COUNCIL.—
(1) IN GENERAL.—The Governor shall certify a
council if the Governor determines that its composi-
tion and appointments are consistent with the provi-
sions of this section. Such certification shall be made
or denied within 30 days after the date on which the
Governor receives a list of council members and any
supporting documentation the Governor considers
necessary.
(2) FAILURE TO CERTIFY.—If the Governor de-
nies certification, the Governor shall—
(A) inform the chief executive officer or of-
ficers submitting the list and documentation of
the reasons for denial; and
(B) provide for the review of any revised
list and documentation.
(3) EFFECT OF CERTIFICATION.—Upon certifi-
cation, a council shall be convened within 30 days by
the officer or officers who made the appointments to
such council under subsection (d) and may receive
funds, consistent with section 224, to carry out the
duties of the council under this Act.
SEC. 223. DUTIES OF NATIONAL SERVICE COUNCILS.
(a) RECRUITMENT
AND PLACEMENT
OF VOLUN-
TEERS.—A national service council shall—
(1) accept applications from individuals seeking
to serve in the Civilian Service and Senior Service of
the Citizens Corps; and
(2) place such individuals in national service po-
sitions consistent with the volunteer recruitment and
placement plan of such council and section 104.
(b) PREPARATION AND IMPLEMENTATION OF VOL-
UNTEER RECRUITMENT
AND PLACEMENT PLAN.—The
council shall be responsible for preparing and implement-
ing the volunteer recruitment and placement plan required
under section 224.
(c) OVERSIGHT.—The council shall provide policy
guidance for, and exercise oversight (including review,
monitoring, auditing, and evaluation) with respect to ac-
tivities under the volunteer recruitment and placement
plan for the volunteer service area of such council.
(d) OTHER DUTIES.—
(1) BUDGET.—In accordance with the volunteer
recruitment and placement plan, a council shall pre-
pare and approve a budget for operation of the
council.
(2) STAFF.—A council may hire staff or con-
tract for services from nonprofit organizations. In
hiring staff, a council is encouraged to include mem-
bers of the Senior Service of the Citizens Corps.
(3) GIFTS.—A council may solicit and accept
contributions and grant funds
from
public
and
private sources.
SEC. 224. VOLUNTEER RECRUITMENT AND PLACEMENT
PLAN.
(a) CONDITION FOR RECEIVING FUNDS.—Funds ap-
propriated for a fiscal year may not be provided under
this Act to a national service council unless the council
is certified pursuant to section 222(g). Such funds shall
be provided only pursuant to an approved volunteer re-
cruitment and placement plan prepared by such council
for a period of two fiscal years, including the fiscal year
for which such funds are provided.
(b) PREPARATION OF PLAN.—When preparing a vol-
unteer recruitment and placement plan, a council shall
consult the national service plan for the State prepared
by the Governor under section 221.
(c) CONTENTS OF PLAN.—Each volunteer recruit-
ment and placement plan shall—
(1) identify the national service council that will
administer the plan and is to be the grant recipient
of funds from the State;
(2) describe the national services to be pro-
vided, including the extent such services reflect the
priorities contained in the national service plan for
the State;
(3) contain procedures for recruiting and plac-
ing members of the Citizens Corps;
(4) describe the support services to be provided
to members of the Citizens Corps, including the
types of assistance to be provided to members who
are school dropouts to assist such members earn the
equivalent of a high school diploma;
(5) contain procedures, consistent with section
226, for selecting service sponsors, including proce-
dures for council consideration of the past perform-
ance of each service sponsor in national services or
related activities, fiscal accountability, and ability to
meet performance standards;
(6) contain the budget for the council for the
two-fiscal year period covered by such plan;
(7) contain fiscal control, accounting, audit and
debt collection procedures that assure the proper
distribution and accounting of funds received under
this Act; and
(8) provide for the council to submit to the
Governor an annual report that includes a descrip-
tion of—
(A) activities conducted during the fiscal
year covered by such report;
(B) service sponsors in the volunteer serv-
ice area;
(C) members of the Citizens Corps placed
by such council, including the number of mem-
bers who are school dropouts; and
(D) the extent to which the activities ex-
ceeded or failed to meet relevant performance
standards established by the Commission.
(d) MODIFICATION OF PLAN.—If changes in the na-
tional service needs of the volunteer service area, funding,
or other factors require substantial deviation from an ap-
proved plan, the national service council may submit a
modification of such plan, which shall be subject to review
in accordance with section 225.
SEC. 225. REVIEW AND APPROVAL OF PLAN.
(a) PUBLICATION OF PROPOSED PLAN.—Not later
than 120 days before the beginning of the two-fiscal year
period covered by a proposed volunteer recruitment and
placement plan, the council shall—
(1) publish the proposed plan or a summary
thereof; and
(2) make such plan available for public review
and comment.
(b) SUBMISSION OF PLAN.—Not later than 80 days
before the beginning of the 2-fiscal year period covered
by a proposed volunteer recruitment and placement plan,
the council shall submit such plan to the Governor. Any
modification of such plan shall be published and submitted
to the Governor not later than 80 days before it is to be
effective.
(c) REVIEW.—
(1) CONDITIONS
FOR
APPROVAL.—The Gov-
ernor shall approve the volunteer recruitment and
placement plan (or modification thereof) unless the
Governor finds that—
(A) corrective measures for deficiencies
found in audits or in meeting performance
standards from previous years have not been
taken or are not being acceptably implemented;
(B) the council does not have the capacity
to administer the funds;
(C) there are inadequate safeguards for
the protection of funds received; or
(D) the plan (or modification) does not
comply with this Act or a rule of the Commis-
sion.
(2) TIME
FOR
REVIEW.—The Governor shall
approve or disapprove a volunteer recruitment and
placement plan (or modification) within 30 days
after
the
date
that
the
plan
(or
modifica-
tion)
is submitted.
(3) EFFECT OF DISAPPROVAL.—If the Governor
disapproves a plan, the Governor shall—
(A) inform the council of the reasons for
such disapproval;
(B) provide for the review of any revised
plan; and
(C) take such steps as the Governor con-
siders necessary to provide for the recruitment
and placement of members of the Civilian and
Senior Services in the volunteer service area
affected by such disapproval.
SEC. 226. SERVICE SPONSORS.
(a) SELECTION OF SERVICE SPONSORS.—Subject to
subsection (b), in placing a member of the Civilian Service
or Senior Service of the Citizens Corps with a public agen-
cy or public or nonprofit organization, the council shall
give primary consideration to the effectiveness of the agen-
cy or organization in delivering community services and
shall give appropriate consideration to the extent to which
the agency or organization is a community-based service
sponsor. The council shall determine the effectiveness of
an agency or organization on the basis of the agency’s or
organization’s demonstrated performance with regard to
attaining performance goals, reducing costs, and retaining
members of the Citizen Corps placed with such agency or
organization.
(b) PREVENTION OF WORKER DISPLACEMENT.—In
placing a member of the Civilian Service or Senior Service
of the Citizens Corps with a public agency or public or
nonprofit organization, the council shall take appropriate
measures to assure that such placement shall not result
in—
(1) the displacement of any currently employed
worker or position (including partial displacement
such as a reduction in the hours of nonovertime
work, wages, or employment benefits), or result in
the impairment of existing contracts for services or
collective bargaining agreements;
(2) such member filling a position with such
agency or organization when—
(A) any other individual is on layoff from
the same or any equivalent position with such
agency or organization; or
(B) the employer has terminated the em-
ployment of any regular employee or otherwise
reduced the work force of such employer with
the effect of filling the vacancy so created with
such member; or
(3) any infringement of the opportunities of any
currently employed individual for promotion.
(c) GRIEVANCE PROCEDURE.—
(1) ESTABLISHMENT.—Each State shall estab-
lish and maintain a grievance procedure for resolv-
ing complaints by regular employees or their rep-
resentatives that the placement of a member of the
Civilian Corps or Senior Corps under this Act vio-
lates any of the prohibitions described in subsection
(b).
(2) APPEAL.—A decision of the State under
such procedure may be appealed to the Commission
for investigation and such action as the Commission
may find necessary.
(d) PAYMENTS BY PRIVATE NONPROFIT ORGANIZA-
TION.—
(1) IN
GENERAL.—The Commission may re-
quire a private nonprofit organization to pay to the
Commission an amount not to exceed $1000 per
year for each member of the Civilian Service or Sen-
ior Service placed in a national service position with
such organization.
(2) REDUCTION
IN
PAYMENT.—The Commis-
sion may reduce the payment required under para-
graph (1) to reflect national service provided—
(A) for a period of less than a full year; or
(B) in the case of a member of the Senior
Service, as part-time service.
(3) SHARING
PAYMENTS.—The Commission
shall share any payment received under paragraph
(1) or (2) with the State that provides the stipend
or wage to the member of the Citizen Corps so
placed with a private nonprofit organization. The
share paid to the State shall correspond to the
matching funds requirement for the State as speci-
fied in section 203 and adjusted to reflect any offset
under such section.
Subtitle C—Deferred Placement of
Members of the Civilian Service
SEC. 231. DEFERRED PLACEMENT PROGRAM.
The Commission shall establish a special program for
members of the Civilian Service under which individuals
who are eligible to serve in the Civilian Service of the Citi-
zens Corps under section 102(a) may, before placement
for a term of service, receive the financial assistance pro-
vided to members of the Civilian Service under section 303
to assist such individuals pursue a program of education
or training at an educational institution or training
establishment.
SEC. 232. ELIGIBILITY TO PARTICIPATE IN DEFERRED
PLACEMENT PROGRAM.
(a) INDIVIDUALS ELIGIBLE.—An individual shall be
eligible for selection as a participant in the Deferred
Placement Program if the individual—
(1) has received a high school diploma or its
equivalent and otherwise meets the eligibility
requirements contained in section 102(a); and
(2) is accepted for enrollment, or is enrolled, as
a full-time student—
(A) in an accredited (as determined by the
Commission) educational institution or training
establishment in a State; and
(B) in a program of education or training
offered by such institution or establishment and
approved by the Commission.
(b) APPLICATION.—An individual seeking selection
for the Deferred Placement Program shall submit an ap-
plication to participate in the Program and agree to enter
into a written contract (described in subsection (c))—
(1) to accept financial assistance provided
under this subtitle to assist such individual in such
program of education or training; and
(2) upon the completion of such program of
education or training, to serve as a member of Civil-
ian Service for the term of service corresponding to
the amount of financial assistance received.
(c) ELEMENTS OF CONTRACT.—Subject to subsection
(d), the written contract between the Commission and an
individual selected to participate in the Deferred
Placement Program shall contain—
(1) an agreement by the Commission—
(A) to provide the participant with finan-
cial assistance not to exceed $20,000 during the
period in which such participant is pursuing a
program of education or training described in
subsection (a)(2)(B); and
(B) to accept (subject to the availability of
appropriated funds for carrying out this sub-
title) the participant into the Civilian Service of
the Citizens Corps; and
(2) an agreement by the participant—
(A) to accept provision of such financial
assistance;
(B) to maintain enrollment in a program
of education or training described in subsection
(a)(2)(B) until the participant completes the
program;
(C) while enrolled in such program of edu-
cation or training, to maintain an acceptable
level of academic standing (as determined under
rules of the Commission by the educational in-
stitution or training establishment offering such
program); and
(D) to serve as a member of the Civilian
Service for a time period equal to one year if
the assistance provided is $10,000 or less or
two years if the assistance provided is more
than $10,000; and
(3) a statement of the damages to which the
United States is entitled under section 236 for the
breach of the contract.
(d) CONTRACTS SUBJECT TO AVAILABLE FUNDS.—
Any financial obligation of the United States arising out
of a contract entered into under this section and any obli-
gation of the participant which is conditioned thereon, is
contingent upon funds being appropriated for assistance
under this subtitle.
(e) INFORMATION PROVIDED BY THE COMMISSION.—
In disseminating application forms and contract forms to
individuals desiring to participate in the Program, the
Commission shall include with such forms a fair summary
of the rights and liabilities of an individual whose applica-
tion is approved (and whose contract is accepted) by the
Commission, including a clear explanation of the damages
to which the United States is entitled under section 236
in the case of the breach of the contract.
(f) APPLICATION AND CONTRACT FORMS.—The ap-
plication form, contract form, and all other information
furnished by the Commission under this subtitle shall be
written in a manner calculated to be understood by the
average individual applying to participate in the Program.
The Commission shall make such application forms, con-
tract forms, and other information available to individuals
desiring to participate in the Program on a date suffi-
ciently early to ensure that such individuals have adequate
time to carefully review and evaluate such forms and
information.
SEC. 233. ACCEPTANCE.
(a) ACCEPTANCE.—(1) An individual shall become a
participant in the Deferred Placement Program only upon
the approval by the Commission of an application submit-
ted by the individual under section 232 and the acceptance
by the Commission of the contract signed by the individual
under such section. Upon the acceptance of an individual
to participate in the Deferred Placement Program, the
Commission shall promptly provide written notice of such
acceptance to such individual.
(b) SELECTION PROCESS.—The Commission shall es-
tablish by rule uniform criteria for the selection on a com-
petitive basis of individuals to participate in the Program.
SEC. 234. LIMITATION ON THE USE OF ASSISTANCE AND RE-
DUCTION OF SUBSEQUENT ASSISTANCE.
(a) LIMITATION
ON
THE USE
OF ASSISTANCE.—
Financial assistance provided under this subtitle—
(1) may be used by the participant solely for
the purposes described in section 305(d); and
(2) may not be used to purchase or construct
a dwelling to be owned and occupied by such partici-
pant as the primary residence of such participant.
(b) REDUCTION OF SUBSEQUENT ASSISTANCE.—Any
financial assistance provided under section 303 to a par-
ticipant in the Program after the completion of the term
of service of such participant shall be reduced by the
amount of assistance provided to such participant under
this subtitle.
SEC. 235. PLACEMENT.
Upon the completion of a program of education or
training described in section 232(a)(2)(B) by a participant
in the Program, the Commission shall—
(1) refer the participant to a national service
council or a Federal, State, or local agency accepting
members of the Citizens Corps; and
(2) acting through such entity, place the partic-
ipant in a national service position taking into con-
sideration the preference and skills of the partici-
pant.
SEC. 236. BREACH OF CONTRACT.
(a) BREACH DURING A PROGRAM OF EDUCATION OR
TRAINING.—An individual who is selected to participate
in the Deferred Placement Program and who enters into
a written contract with the Commission under section 232
shall be considered to be in violation of the contract if
the participant—
(1) fails to maintain a status as a full-time
student;
(2) fails to maintain an acceptable level of aca-
demic standing in the educational institution or
training establishment in which the participant is
enrolled (such level to be determined by the institu-
tion or establishment under rules issued by the
Commission);
(3) is dismissed from such educational institu-
tion for disciplinary reasons;
(4) voluntarily terminates the program of edu-
cation or training described in section 232(a)(2)(B)
for which the participant is provided assistance
under such contract, before the completion of such
program; or
(5) fails to accept payment, or instructs the
educational institution or training establishment in
which the individual is enrolled not to accept pay-
ment, in whole or in part, of assistance provided
under such contract;
(b) REPAYMENT REQUIRED.—In lieu of any service
obligation arising under a contract entered into under sec-
tion 232, an individual described in subsection (a) shall
be liable to the United States for the amount which has
been paid to the individual, or on behalf of the individual,
under the contract and interest on such amount at the
rate described in subsection (c).
(c) BREACH AFTER COMPLETING A PROGRAM OF
EDUCATION OR TRAINING.—If (for any reason not speci-
fied in subsection (a)) an individual fails either to begin
the term of service in the Citizens Corps agreed to by the
individual or to complete such term of service, the United
States shall be entitled to recover from the individual an
amount determined in accordance with the formula
A=3y(t-s/t)
in which—
(1) ‘‘A’’ is the amount the United States is en-
titled to recover;
(2) ‘‘Y’’ is the sum of the amounts paid under
this subtitle to or on behalf of the individual and the
interest on such amounts which would be payable if
at the time the amounts were paid they were loans
bearing interest at the maximum legal prevailing
rate, as determined by the Treasurer of the United
States;
(3) ‘‘t’’ is the total number of months in the in-
dividual’s term of service; and
(4) ‘‘s’’ is the number of months of such term
of service served by the individual.
(d) PAYMENT OF AMOUNTS.—
(1) TIME FOR PAYMENT.—Any amount that the
United States is entitled to recover under this sec-
tion shall, within the one-year period beginning on
the date of the breach of the written contract (or
such longer period beginning on such date as speci-
fied by the Commission), be paid to the United
States.
(2) EXCESSIVE
DELAY.—If any amount de-
scribed in paragraph (1) is delinquent for three or
more months, the Commission shall, for the purpose
of recovering such amount—
(A) utilize collection agencies contracted
with by the Administrator of the General
Services Administration; or
(B) enter into contracts for the recovery of
such damages with collection agencies selected
by the Commission.
(3) 
CONDITIONS
OF
COLLECTION
CON-
TRACTS.—Each contract referred to in paragraph
(2) shall provide that the contractor will submit to
the Commission not less than once every 180 days
a status report on the success of the contractor in
collecting such damages. Section 3718 of title 31,
United States Code, shall apply to any such contract
to the extent not inconsistent with this subsection.
(e) DISCLOSURE OF DELINQUENT PAYMENTS.—To
the extent not otherwise prohibited by law, the Commis-
sion shall disclose to all appropriate credit reporting agen-
cies information relating to amounts of more than $100
that—
(1) the United States is entitled to recover
under this section; and
(2) are delinquent by more than 60 days or
such longer period as is determined by the
Commission.
Subtitle D—Administration of the
Citizens Corps With Regard to
Service in the Armed Forces
SEC. 241. ADMINISTRATION OF THE CITIZENS CORPS WITH
REGARD TO SERVICE IN THE ARMED FORCES.
(a) RESPONSIBILITY OF SECRETARY OF DEFENSE.—
The Secretary of Defense shall be responsible for admin-
istering the Citizens Corps with regard to service by mem-
bers of the Citizens Corps in the Armed Forces.
(b) RULEMAKING.—Not later than 60 days after the
date of the enactment of this Act, the Secretary shall issue
rules to carry out this subtitle.
SEC. 242. DEFERRED ENLISTMENT.
(a) SENIOR RESERVE OFFICERS’ TRAINING CORPS
PROGRAM.—The Secretary concerned, in consultation
with the Secretary of Defense, shall expand the Senior Re-
serve Officers’ Training Corps program under chapter 103
of title 10, United States Code, so that a certain number
of the individuals (as determined by the Secretary con-
cerned) who are eligible to enlist for service in the Armed
Forces as a member of the Citizens Corps under section
102(b) may, before performing a service obligation se-
lected under section 103(b), receive the financial assist-
ance provided to members of the Citizens Corps under sec-
tion 304 to assist such individuals pursue a program of
education or training at an educational institution or
training establishment.
(b) OPERATION OF PROGRAM.—The Secretary con-
cerned shall operate the Senior Reserve Officers’ Training
Corps Program with regard to individuals referred to in
subsection (a) in the manner provided in subtitle C.
SEC. 243. REPORTS.
(a) REQUIRED.—On or before May 15 of each cal-
endar year, the Secretary of Defense shall submit to the
President a report describing the operation of the Citizen
Corps with regard to service in the Armed Forces and the
activities of the Secretary in administering such service
during the fiscal year ending September 30 of the preced-
ing calendar year, and the President shall transmit such
report to the Congress.
(b) CONTENT OF REPORT.—(1) Each report shall in-
clude a comprehensive and detailed description of the op-
erations, activities, financial condition, and accomplish-
ments of the Citizens Corps with regard to service in the
Armed Forces during the fiscal year covered by such re-
port and such recommendations as the Secretary considers
appropriate.
(2) In the first 5 reports submitted under subsection
(a), the Secretary shall specify—
(A) the anticipated number of national service
positions that will be available in the Armed Forces
for members of the Citizens Corps in the fiscal year
beginning in the calendar year in which such report
is submitted; and
(B) the anticipated cost of operating the Citi-
zens Corps with regard to service in the Armed
Forces for such fiscal year.
TITLE III—BENEFITS FOR PAR-
TICIPATING IN THE CITIZENS
CORPS
SEC. 301. STIPEND AND SUPPORT SERVICES FOR MEMBERS
OF THE CIVILIAN SERVICE AND SENIOR
SERVICE.
(a) CIVILIAN SERVICE.—
(1) STIPEND.—The State shall provide a sti-
pend of $100 per week to each member of the Civil-
ian Service of the Citizens Corps performing service
in the State (except members placed with a Federal
agency) while such member is in training and pro-
viding full-time service during the term of service of
such member. If a member of the Civilian Service is
placed with a Federal agency, such agency shall be
responsible for providing a stipend of $100 per week
to such member while such member is in training
and providing full-time service with such agency
during the term of service of such member.
(2) HEALTH
COVERAGE.—The Commission
shall provide each member of the Civilian Service of
the Citizens Corps with health insurance.
(3) OTHER
SUPPORT.—The Commission may
provide such other assistance as the Commission
considers necessary and appropriate for a member of
the Civilian Service of the Citizens Corps to carry
out the service obligation of such member.
(b) SENIOR SERVICE.—
(1) HOURLY
WAGE.—The State or Federal
agency, as the case may be, shall pay to each mem-
ber of the Senior Service performing service in the
State or with the agency an hourly wage as deter-
mined by rule by the Commission.
(2) OTHER
SUPPORT.—The Commission may
provide such other assistance as the Commission
considers necessary and appropriate for a member of
the Senior Service to carry out the service obligation
of such member.
SEC. 302. COMPENSATION FOR MEMBERS OF THE CITIZENS
CORPS SERVING IN THE ARMED FORCES.
(a) AMOUNT OF COMPENSATION.—Notwithstanding
any other provision of law, a member of the Citizens Corps
serving in the Armed Forces shall receive basic pay, basic
allowance for subsistence, basic allowance for quarters at
66 percent of the rate applicable to other members of the
Armed Forces with the same pay grade and years of
service.
(b) LIMITATIONS.—A member of the Citizens Corps
serving in the Armed Forces, or a graduate of such serv-
ice, shall not be eligible to receive benefits under chapters
106, 107, and 109 of title 10, United States Code, or
chapters 30, 32, 34, 36, or 37 of title 38, United States
Code, as a result of such service.
SEC. 303. EDUCATIONAL AND HOUSING BENEFITS FOR
MEMBERS OF THE CIVILIAN SERVICE OF THE
CITIZENS CORPS.
(a) AMOUNT OF FINANCIAL ASSISTANCE.—An indi-
vidual who successfully completes a term of service as a
member of the Civilian Service of the Citizens Corps shall
be eligible to receive financial assistance pursuant to sec-
tion 305 or 306 in an amount not to exceed $10,000 for
each year of such term to assist such individual—
(1) pursue a program of education or training
at an educational institution or training establish-
ment; or
(2) purchase or construct a dwelling to be
owned and occupied by such individual as the
primary residence of such individual.
(b) PARTIAL COMPLETION OF TERM OF SERVICE.—
If the Commission releases an individual from completing
a term of service in the Civilian Service for compelling per-
sonal circumstances for just cause shown by such member,
the Commission may provide such individual with a por-
tion of the financial assistance specified in subsection (a)
corresponding to the amount of the service obligation
completed by such individual.
SEC. 304. EDUCATIONAL AND HOUSING BENEFITS FOR
MEMBERS OF THE CITIZENS CORPS SERVING
IN THE ARMED FORCES.
(a) ACTIVE DUTY IN THE ARMED FORCES.—
(1) ELIGIBILITY.—A member of the Citizens
Corps serving in the Armed Forces pursuant to sec-
tion 103(b)(1) who is released from active duty after
two years of service (characterized by the Secretary
concerned as honorable service) on active duty shall
be eligible for the financial assistance specified in
paragraph (2) on the condition that—
(A) the member agrees to complete the
service obligation selected by such member; and
(B) such further service is characterized by
the Secretary concerned as honorable service.
(2) AMOUNT OF BENEFITS.—The financial as-
sistance referred to in paragraph (1) shall be pro-
vided pursuant to section 305 or 306 in an amount
not to exceed $24,000 to assist such member—
(A) pursue a program of education or
training at an educational institution or train-
ing establishment; or
(B) purchase or construct a dwelling to be
owned and occupied by such individual as the
primary residence of such individual.
(b) SERVICE IN THE SELECTED RESERVE.—
(1) ELIGIBILITY.—A member of the Citizens
Corps serving in a reserve component of the Armed
Forces pursuant to section 103(b)(2) is eligible for
the financial assistance specified in paragraph (2)—
(A) after the member serves one year in
the Selected Reserve during which the member
participates satisfactorily in training as pre-
scribed by the Secretary concerned; and
(B) on the condition that the member
agrees to complete the service obligation se-
lected by such member and such service is char-
acterized by the Secretary concerned as honor-
able service.
(2) AMOUNT OF BENEFITS.—The financial as-
sistance referred to in paragraph (1) shall be pro-
vided pursuant to section 305 or 306 in an amount
not to exceed $12,000 to assist such member—
(A) pursue a program of education or
training at an educational institution or train-
ing establishment; or
(B) purchase or construct a dwelling to be
owned and occupied by such individual as the
primary residence of such individual.
(c) PARTIAL COMPLETION OF TERM OF SERVICE.—
If the Secretary of Defense releases a member of the Citi-
zens Corps from completing a service obligation in the
Armed Forces with an honorable discharge, the Secretary
of Veterans Affairs may provide such member with a por-
tion of the financial assistance such individual would have
otherwise been entitled to corresponding to the amount of
the service obligation completed by such individual.
SEC. 305. PROVISION OF EDUCATIONAL BENEFITS.
(a) CIVILIAN SERVICE.—The Commission (in con-
sultation with the Secretary of Veterans Affairs) shall ad-
minister the provision of financial assistance under section
303 for individuals pursuing a program of education or
training at an educational institution or training establish-
ment.
(b) SERVICE IN THE ARMED FORCES.—The Sec-
retary of Veterans Affairs (in consultation with the Com-
mission) shall administer the provision of financial assist-
ance under section 304 for individuals pursuing a program
of education or training at an educational institution or
training establishment.
(c) METHOD
OF
PROVIDING
ASSISTANCE.—The
Commission and Secretary shall administer the provision
of educational benefits to an individual who is eligible for
financial assistance under section 303 or 304 in the man-
ner provided in sections 1663, 1670, 1671, 1673, 1674,
1676, 1682(g), and 1683 of title 38, United States Code,
and in subchapters I and II of chapter 36 of such title.
(d) USE OF ASSISTANCE.—Assistance provided under
section 303 or 304 as educational benefits may be used—
(1) to pay tuition, fees, books, supplies, equip-
ment, room and board, and other costs determined
by the Commission to be necessary to accomplish a
program of education or training at an educational
institution or training establishment; or
(2) to repay student loans that are—
(A) incurred by or on behalf of the individ-
ual eligible to receive the assistance; and
(B) insured or guaranteed under part B of
title IV of the Higher Education Act of 1965
(20 U.S.C. 1071 et seq.) or made under part E
of such title (20 U.S.C. 1087 et seq.).
SEC. 306. PROVISION OF HOUSING BENEFITS.
(a) CIVILIAN SERVICE.—The Commission (in con-
sultation with the Secretary of Veterans Affairs) shall—
(1) establish a program by which an individual
eligible for financial assistance under section 303
may use all or part of such assistance to purchase
or construct a dwelling to be owned and occupied by
the individual as the primary residence of such indi-
vidual; and
(2) monitor the implementation of such pro-
gram.
(b) SERVICE IN THE ARMED FORCES.—The Sec-
retary of Veterans Affairs (in consultation with the
Commission) shall—
(1) establish a program by which an individual
eligible for financial assistance under section 304
may use all or part of such assistance to purchase
or construct a dwelling to be owned and occupied by
the individual as the primary residence of such
individual; and
(2) monitor the implementation of such pro-
gram.
SEC. 307. TIME LIMITATION ON THE USE OF ASSISTANCE.
(a) IN GENERAL.—No assistance under section 303
or 304 may be provided an individual after the end of the
10-year period beginning on the date the term of service
of such individual is completed.
(b) EXCEPTION.—Subsection (a) shall not apply if
the Secretary of Veterans Affairs or the Commission, as
the case may be, determines on an individual basis that
an individual was unavoidably prevented from using such
assistance during such time period.
SEC. 308. EXCLUSION OF ASSISTANCE FROM GROSS IN-
COME.
(a) EXCLUSION.—For purposes of section 61 of the
Internal Revenue Code of 1986 (26 U.S.C. 61), in the case
of an individual, gross income shall not include any
amount received as assistance under section 303 or 304.
(b) NEED ANALYSIS FOR STUDENT ASSISTANCE.—
Notwithstanding subsection (a), amounts available as as-
sistance under section 303 or 304 shall be considered
when determining family contribution for purposes of a
financial need analysis under title IV of the Higher
Education Act of 1965 (20 U.S.C. 1070 et seq.).