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gious instruction or worship, or engage in any form
of proselytization; or
‘‘(5) organization that expends more than 20
percent of the annual budget of the organization, or
whose primary purpose is, to influence public policy
or engage in legislative advocacy activities.
‘‘(b) ADVOCACY ACTIVITIES.—Nothing in this section
shall be construed to prevent participants from engaging
in advocacy activities undertaken at their own initiative.
‘‘(c) REGIONAL CORPORATION.—The requirement of
subsection (a) relating to an assurance regarding direct
benefits to businesses organized for profit shall not apply
with respect to a Regional Corporation, as defined in sec-
tion 3(g) of the Alaska Native Claims Settlement Act (43
U.S.C. 1602(g)), that is established in accordance with such
Act as a for-profit corporation but that is engaging in not-
for-profit activities.
‘‘(d) PROHIBITION ON CERTAIN POLITICAL ACTIVI-
TIES.—
‘‘(1) IN GENERAL.—Except as provided in sub-
section (b) and paragraph (2), an application sub-
mitted to the Corporation under section 130 shall in-
clude an assurance by the applicant that any na-
tional service program carried out using assistance
provided under section 121 and any approved na-
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tional service position provided to an applicant will
not be used to—
‘‘(A) provide political seminars, training,
instruction, lectures, classes, or speeches; or
‘‘(B) assist political organizations, partisan
organizations, or political appointees.
‘‘(2) POLITICAL APPOINTEES.—The requirement
of paragraph (1) relating to an assurance regarding
speeches shall not apply to political appointees who
are responsible for the administration of a national
service program.
‘‘(3) ENFORCEMENT.—If the Corporation deter-
mines that a national service program has failed to
comply with the assurances provided under para-
graph (1), the Corporation shall—
‘‘(A) prohibit the program from recruiting
or selecting individuals to participate in the pro-
gram during the 2-year period beginning on the
date the Corporation determines the noncompli-
ance commenced; and
‘‘(B) direct the program to terminate the
employment of the supervisors determined to be
involved in the noncompliance.
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‘‘SEC. 133. CONSIDERATION OF APPLICATIONS.
‘‘(a) CORPORATION CONSIDERATION OF CERTAIN CRI-
TERIA.—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.—
‘‘(1) IN GENERAL.—A State or other entity that
uses assistance provided under section 121(a) to sup-
port national service programs selected on a competi-
tive 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.
‘‘(2) CONTENTS.—The application of the State or
other entity under section 130 shall contain—
‘‘(A) a certification that the State or other
entity complied with these criteria in the selec-
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tion of national service programs to receive as-
sistance;
‘‘(B) a description of the jobs or positions
into which participants will be placed using
such assistance, including descriptions of specific
tasks to be performed by such participants; and
‘‘(C) a description of the minimum quali-
fications that individuals shall meet to become
participants in such programs.
‘‘(c) ASSISTANCE CRITERIA.—The criteria required to
be applied in evaluating applications submitted under sec-
tion 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.
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‘‘(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 exist-
ing programs.
‘‘(5) The extent to which participants of the na-
tional service program are recruited from among resi-
dents of the communities in which projects are to be
conducted, and the extent to which participants and
community residents are involved in the design, lead-
ership, and operation of the program.
‘‘(6) The extent to which projects would be con-
ducted in areas where such projects 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 percentages or concentrations of
low-income individuals;
‘‘(B) areas that are environmentally dis-
tressed;
‘‘(C) areas adversely affected by reductions
in defense spending or the closure or realignment
of military installations; and
‘‘(D) areas—
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‘‘(i) that have experienced a substan-
tial reduction in population, as determined
by the Corporation; and
‘‘(ii) with high numbers or percentages
of economically disadvantaged older adults.
‘‘(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 con-
siders 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 in-
clude projects to be conducted in those urban and
rural areas in a State with the highest rates of
poverty.
‘‘(2) PRIORITIES.—
‘‘(A) IN GENERAL.—The Corporation may
designate, under such criteria as may be estab-
lished by the Corporation, certain national serv-
ice programs or types of national service pro-
grams described in section 122(a) for priority
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consideration in the competitive distribution of
funds under section 129(d)(2).
‘‘(B) PROGRAMS DESIGNATED TO RECEIVE
PRIORITY.—In designating national service pro-
grams to receive priority, the Corporation may
include—
‘‘(i) national service programs carried
out by another Federal agency;
‘‘(ii) national service programs that
conform to the national service priorities in
effect under section 122(c);
‘‘(iii) innovative national service pro-
grams;
‘‘(iv) national service programs that
are well established in one or more States at
the time of the application and are pro-
posed to be expanded to additional States
using assistance provided under section 121;
‘‘(v) grant programs in support of
other national service programs if the grant
programs are to be conducted by not-for-
profit organizations (including community
action agencies) with a demonstrated and
extensive expertise in the provision of serv-
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ices to meet human, educational, environ-
mental, or public safety needs;
‘‘(vi) professional corps programs de-
scribed in section 122(a)(8); and
‘‘(vii) programs that—
‘‘(I) received funding under sub-
title D of this Act, as in effect on the
day before the date of enactment of this
subtitle;
‘‘(II) the Corporation determines
to meet the requirements of sections
142 (other than subsection (g)), 143,
and 148 through 150 of this Act, as in
effect on such day, in addition to the
requirements of this subtitle; and
‘‘(III) include an evaluation com-
ponent.
‘‘(C) EXCEPTION.—In making a competitive
distribution of funds under section 129(d)(2), the
President may give priority consideration to a
national service program that is—
‘‘(i) proposed in an application sub-
mitted by a State Commission; and
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‘‘(ii) not one of the types of programs
described in clauses (i) through (vi) of sub-
paragraph (B),
if the State Commission provides an adequate
explanation of the reasons why it should not be
a priority of such State to carry out any of such
types of programs in the State.
‘‘(3) REVIEW PANEL.—The President shall—
‘‘(A) establish panels of experts for the pur-
pose of securing recommendations on applica-
tions submitted under section 130 for more than
$100,000 in assistance, or for national service
positions that would require more than $100,000
in national service educational awards; and
‘‘(B) consider the opinions of such panels
prior to making such determinations.
‘‘(e) EMPHASIS ON AREAS MOST IN NEED.—In mak-
ing assistance available under section 121 and in providing
approved national service positions under section 123, the
Corporation shall ensure that not less than 50 percent of
the total amount of assistance to be distributed to States
under subsections (a) and (d)(1) of section 129 for a fiscal
year is provided to carry out or support national service
programs and projects that—
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‘‘(1) are conducted in areas described in any of
subparagraphs (A) through (D) of subsection (c)(6) or
on Federal or other public lands, to address unmet
human, educational, environmental, or public safety
needs in such areas or on such lands; and
‘‘(2) place a priority on the recruitment of par-
ticipants who are residents of areas described in any
of subparagraphs (A) through (D) of subsection (c)(6)
or Federal or other public lands.
‘‘(f) 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 de-
scribed 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 op-
portunity to revise and resubmit the application. At
the request of the State Commission, the Corporation
shall provide technical assistance to the State Com-
mission as part of the resubmission process. The Cor-
poration shall promptly reconsider an application re-
submitted under this paragraph.
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‘‘(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 na-
tional service program carried out using assistance pro-
vided under section 121 if the individual—
‘‘(1) meets such eligibility requirements, directly
related to the tasks to be accomplished, as may be es-
tablished by the program;
‘‘(2) is selected by the program to serve in a po-
sition with the program;
‘‘(3) will serve in the program for a term of serv-
ice 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)(A)(i) has received a high school diploma or
its equivalent; or
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‘‘(ii) 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; or
‘‘(B)(i) is enrolled at an institution of higher
education on the basis of meeting the standard de-
scribed in paragraph (1) or (2) of section 484(d) of
the Higher Education Act of 1965 (20 U.S.C.
1091(d)); and
‘‘(ii) meets the requirements of section 484(a) of
such Act; and
‘‘(6) is a citizen of the United States or lawfully
admitted for permanent residence.
‘‘(b) SPECIAL RULES
FOR CERTAIN YOUTH PRO-
GRAMS.—An individual shall be considered to be a partici-
pant 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 sub-
section (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.
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‘‘(c) WAIVER.—The Corporation may waive the re-
quirements of subsection (a)(5)(A) with respect to an indi-
vidual if the program in which the individual seeks to be-
come a participant conducts an independent evaluation
demonstrating that the individual is incapable of obtaining
a high school diploma or its equivalent.
‘‘SEC. 138. SELECTION OF NATIONAL SERVICE PARTICI-
PANTS.
‘‘(a) SELECTION PROCESS.—Subject to subsections (b)
and (c) and section 131(f), the actual recruitment and selec-
tion 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 SELEC-
TION 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 serv-
ice program to serve a second term of service under section
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139 shall only be available to individuals who perform sat-
isfactorily in their first term of service.
‘‘(d) RECRUITMENT AND PLACEMENT.—The Corpora-
tion and each State Commission shall establish a system
to recruit individuals who desire to perform national serv-
ice and to assist the placement of these individuals in ap-
proved national service positions, including positions avail-
able under title I of the Domestic Volunteer Service Act of
1973 (42 U.S.C. 4951). The Corporation and State Com-
missions shall disseminate information regarding available
approved national service positions through cooperation
with secondary schools, institutions of higher education, em-
ployment service offices, State vocational rehabilitation
agencies within the meaning of the Rehabilitation Act of
1973 and other State agencies that primarily serve individ-
uals with disabilities, and other appropriate entities, par-
ticularly those organizations that provide outreach to eco-
nomically disadvantaged youths or youths who are individ-
uals with disabilities.
‘‘(e) NATIONAL LEADERSHIP POOL.—
‘‘(1) SELECTION AND TRAINING.—From among
individuals recruited under subsection (d), the Cor-
poration may select individuals with significant lead-
ership potential, as determined by the Corporation, to
receive special training to enhance their leadership
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ability. The leadership training shall be provided by
the Corporation directly or through a grant or con-
tract.
‘‘(2) EMPHASIS ON CERTAIN INDIVIDUALS.—In
selecting individuals to receive leadership training
under this subsection, the Corporation shall make spe-
cial efforts to select individuals who have served—
‘‘(A) in the Peace Corps;
‘‘(B) as VISTA volunteers;
‘‘(C) as participants in national service
programs receiving assistance under section 121;
or
‘‘(D) as participants in programs receiving
assistance under subtitle D of the National and
Community Service Act of 1990, as in effect on
the day before the date of enactment of this sub-
title.
‘‘(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
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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 na-
tional service educational award under subtitle D, a partic-
ipant in an approved national service position shall be re-
quired 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 per-
forming full-time national service in an approved na-
tional service position shall agree to participate in
the program sponsoring the position for not less than
1,700 hours during a period of not less than 9 months
and not more than 1 year.
‘‘(2) PART-TIME SERVICE.—Except as provided
in paragraph (3), an individual performing part-
time national service in an approved national service
position shall agree to participate in the program
sponsoring the position for not less than 900 hours
during a period of—
‘‘(A) not more than 2 years; or
‘‘(B) not more than 3 years if the individ-
ual is enrolled in an institution of higher edu-
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cation while performing all or a majority of the
hours of such service.
‘‘(3) REDUCTION IN HOURS OF PART-TIME SERV-
ICE.—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 re-
quired term of service shall include a corresponding
reduction in the amount of any national service edu-
cational award that may be available under subtitle
D with regard to that service.
‘‘(c) RELEASE FROM COMPLETING TERM OF SERV-
ICE.—
‘‘(1) RELEASE AUTHORIZED.—A recipient of as-
sistance 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 par-
ticipant was serving in an approved national service
position, the participant may receive a portion of the
national service educational award corresponding to
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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 assist-
ance 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 volun-
teers under section 105 of the Domestic Volunteer
Service Act of 1973 (42 U.S.C. 4955); and
‘‘(B) 85 percent of the annual living allow-
ance established by the national service program
involved.
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‘‘(3) MAXIMUM LIVING ALLOWANCE.—Except as
provided in subsection (c), the total amount of an an-
nual living allowance that may be provided to a par-
ticipant in a national service program shall not ex-
ceed 200 percent of the average annual subsistence al-
lowance 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 partici-
pant who is authorized to serve a reduced term of
service under section 139(b)(3).
‘‘(b) COVERAGE OF CERTAIN EMPLOYMENT-RELATED
TAXES.—To the extent a national service program that re-
ceives 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 Inter-
nal 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 allow-
ance provided to VISTA volunteers under section 105
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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 liv-
ing allowance in excess of the maximum allowance author-
ized 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 shall be oper-
ated directly by the applicant and shall meet urgent,
unmet human, educational, environmental, or public
safety needs, as determined by the Corporation.
‘‘(d) HEALTH INSURANCE.—
‘‘(1) IN GENERAL.—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
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using the assistance if the participant is not other-
wise 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 shall meet in order to qualify for payment
under this part, any circumstances in which an alter-
native health care policy may be substituted for the
basic health care policy, and mechanisms to prohibit
participants from dropping existing coverage.
‘‘(2) OPTION.—A State or other recipient of as-
sistance under section 121 may elect to provide from
the funds of the State or recipient a health care policy
for participants that does not meet all of the stand-
ards established by the Corporation if the fair market
value of such policy is equal to or greater than the
fair market value of a plan that meets the minimum
standards established by the Corporation, and is con-
sistent with other applicable laws.
‘‘(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 needs child
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care in order to participate in a national service
program carried out or supported by the recipi-
ent using the assistance; or
‘‘(B) provide a child care allowance to each
full-time participant in a national service pro-
gram who needs such assistance in order to par-
ticipate in the program.
‘‘(2) GUIDELINES.—The Corporation shall estab-
lish guidelines regarding the circumstances under
which child care shall be made available under this
subsection and the value of any allowance to be pro-
vided.
‘‘(f) WAIVER OF LIMITATION ON FEDERAL SHARE.—
The Corporation may waive in whole or in part the limita-
tion on the Federal share specified in this section with re-
spect 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 re-
sources at the local level.
‘‘(g) LIMITATION ON NUMBER OF TERMS OF SERVICE
FOR FEDERALLY SUBSIDIZED LIVING ALLOWANCE.—No
national service program may use assistance provided
under section 121, or any other Federal funds, to provide
a living allowance under subsection (a), a health care policy
under subsection (d), or child care or a child care allowance
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under subsection (e), to an individual for a third, or subse-
quent, term of service described in section 139(b) by the in-
dividual in a national service program carried out under
this subtitle.
‘‘SEC. 141. NATIONAL SERVICE EDUCATIONAL AWARDS.
‘‘(a) ELIGIBILITY GENERALLY.—A participant in a
national service program carried out using assistance pro-
vided to an applicant under section 121 shall be eligible
for the national service educational award described in sub-
title D if the participant—
‘‘(1) serves in an approved national service posi-
tion; and
‘‘(2) satisfies the eligibility requirements speci-
fied in section 146 with respect to service in that ap-
proved national service position.
‘‘(b) SPECIAL RULE FOR VISTA VOLUNTEERS.—A
VISTA volunteer who serves in an approved national serv-
ice position shall be ineligible for a national service edu-
cational award if the VISTA volunteer accepts the stipend
authorized under section 105(a)(1) of the Domestic Volun-
teer Service Act of 1973 (42 U.S.C. 4955(a)(1).’’.
(b) TABLE OF CONTENTS.—Section 1(b) of the Na-
tional and Community Service Act of 1990 (Public Law
101–610; 104 Stat. 3127) is amended by striking the items
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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 posi-
tions.
‘‘Sec. 122. Types of national service programs eligible for program assistance.
‘‘Sec. 123. Types of national service positions eligible for approval for national
service educational awards.
‘‘Sec. 124. Types of program assistance.
‘‘Sec. 125. Training and technical assistance.
‘‘Sec. 126. Other special assistance.
‘‘PART II—APPLICATION AND APPROVAL PROCESS
‘‘Sec. 129. Provision of assistance and approved national service positions by
competitive and other means.
‘‘Sec. 130. Application for assistance and approved national service positions.
‘‘Sec. 131. National service program assistance requirements.
‘‘Sec. 132. Ineligible service categories.
‘‘Sec. 133. Consideration of applications.
‘‘PART III—NATIONAL SERVICE PARTICIPANTS
‘‘Sec. 137. Description of participants.
‘‘Sec. 138. Selection of national service participants.
‘‘Sec. 139. Terms of service.
‘‘Sec. 140. Living allowances for national service participants.
‘‘Sec. 141. National service educational awards.’’.
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 Commu-
nity Service Act of 1990 (42 U.S.C. 12571 et seq.) is amend-
ed to read as follows:
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‘‘Subtitle D—National Service Trust
and Provision of National Serv-
ice 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 Cor-
poration and made available to carry out this subtitle
pursuant to section 501(a)(2), such amounts as the
Corporation may designate to be available for the
payment of—
‘‘(A) national service educational awards;
and
‘‘(B) interest expenses pursuant to sub-
section 148(e);
‘‘(2) any amounts received by the Corporation as
gifts, bequests, devise, or otherwise pursuant to section
196(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
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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 obliga-
tions 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 origi-
nal issue at the issue price, or (2) by purchase of outstand-
ing 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, to the extent provided for in ad-
vance by appropriation, for payments of national service
educational awards in accordance with section 148.
‘‘(d) REPORTS TO CONGRESS ON RECEIPTS AND EX-
PENDITURES.—The Corporation shall submit an annual re-
port 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 Corpora-
tion, 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);
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‘‘(2) identify the number of individuals who are
currently performing service to qualify, or have quali-
fied, for national service educational awards;
‘‘(3) identify the number of individuals whose
expectation to receive 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 edu-
cational awards to individuals identified under para-
graph (2), including any amounts available as a re-
sult 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 be
eligible to receive a national service educational award from
the National Service Trust if the individual—
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‘‘(1) successfully completes the required term of
service described in subsection (b) in an approved na-
tional service position;
‘‘(2) was 17 years of age or older at the time the
individual began serving in the approved national
service position or was an out-of-school youth serving
in an approved national service position with a youth
corps program described in section 122(a)(2) or a
program described in section 122(a)(9);
‘‘(3) at the time the individual uses the national
service educational award—
‘‘(A) has received a high school diploma, or
the equivalent of such diploma;
‘‘(B)(i) is enrolled at an institution of high-
er education on the basis of meeting the standard
described in paragraph (1) or (2) of section
484(d) of the Higher Education Act of 1965 (20
U.S.C. 1091(d)); and
‘‘(ii) meets the requirements of section
484(a) of such Act; or
‘‘(C) has received a waiver described in sec-
tion 137(c); and
‘‘(4) is a citizen of the United States or lawfully
admitted for permanent residence.
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‘‘(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 re-
ceive a national service educational award from the Na-
tional 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 na-
tional service educational award if the Corporation
determines that the individual—
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‘‘(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 NA-
TIONAL SERVICE EDUCATIONAL AWARD.
‘‘(a) AMOUNTS 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 education award having a value, for each of not
more than 2 of such term of service, equal to 90 percent
of—
‘‘(1) one-half of the aggregate minimum basic
educational assistance allowance calculated under sec-
tions 3013(d)(1) and 3015(b)(1) of title 38, United
States Code (as in effect on July 28, 1993), for a
member of the Armed Forces who is entitled to such
an allowance under section 3011 of such title and
whose initial obligation period of active duty is two
years; less
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‘‘(2) one-half of the aggregate basic contribution
required to be made by the member under section
3011(b) of such title (as in effect on July 28, 1993).
‘‘(b) AWARD FOR PARTIAL COMPLETION OF SERV-
ICE.—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 individ-
ual 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 EDU-
CATIONAL 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
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‘‘(4) to pay interest expenses in accordance with
regulations prescribed pursuant to subsection (e).
‘‘(b) USE OF EDUCATIONAL AWARD TO REPAY OUT-
STANDING STUDENT LOANS.—
‘‘(1) APPLICATION BY ELIGIBLE INDIVIDUALS.—
An eligible individual under section 146 who desires
to apply the national service educational award of the
individual to the repayment of qualified student loans
shall submit, in a manner prescribed by the Corpora-
tion, 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;
‘‘(C) specifies the qualified student loan to
which the individual desires to apply the na-
tional service educational award, in any case in
which the total of the amounts described in sub-
paragraph (B) is greater than the amount of the
national service educational award to which the
individual is entitled; and
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‘‘(D) contains or is accompanied by such
other information as the Corporation may re-
quire.
‘‘(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 con-
sistent with paragraph (5), disburse the amount of
the national service educational award that the par-
ticipant has earned. 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 cer-
tification 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 quali-
fied student loan, such amount shall first be applied
to the repayment of principal. In a case described in
paragraph (1)(C), such amount shall be applied to
the loan described in paragraph (1)(C).
‘‘(4) REPORTS BY HOLDERS.—Any holder receiv-
ing 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
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any regulations prescribed to carry out this sub-
section.
‘‘(5) AUTHORITY TO AGGREGATE PAYMENTS.—
The Corporation may, by regulation, provide for the
aggregation of payments to holders under this sub-
section.
‘‘(6) NOTIFICATION.—On disbursing a national
service educational award to which an individual is
entitled under paragraph (2) and applying the award
to a loan, the Corporation shall notify the individual
of the amount disbursed for each such loan and the
date of the disbursal.
‘‘(7) DEFINITIONS.—As used in this subsection:
‘‘(A) QUALIFIED STUDENT LOAN.—The term
‘qualified student loan’ means—
‘‘(i) any loan made, insured, or guar-
anteed 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 stu-
dent pursuant to section 428B of such Act
(20 U.S.C. 1078–2); and
‘‘(ii) any loan made pursuant to title
VII or VIII of the Public Health Service Act
(42 U.S.C. 292a et seq.).
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‘‘(B) HOLDER.—The term ‘holder’ with re-
spect to any eligible loan means the original
lender or, if the loan is subsequently sold, trans-
ferred, 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 the national service educational award of the
individual to the payment of full-time or part-time
educational expenses, that have been incurred by the
individual prior to the service of the individual under
subtitle C, shall, on a form prescribed by the Corpora-
tion, submit an application to the institution of high-
er education in which the student will be enrolled that
contains such information as the Corporation may re-
quire 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
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a statement, in a manner prescribed by the Corpora-
tion, that—
‘‘(A) identifies each eligible individual fil-
ing 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 para-
graph (6), qualified for disbursement under this
subsection;
‘‘(C) certifies that—
‘‘(i) the institution of higher education
has in effect a program participation agree-
ment under section 487 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1094);
‘‘(ii) the institution’s eligibility to par-
ticipate 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
‘‘(iii) individuals using national serv-
ice educational awards received under this
subtitle to pay for educational costs do not
comprise more than 15 percent of the total
student population of the institution; and
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‘‘(D) contains such provisions concerning
financial compliance as the Corporation may
require.
‘‘(3) DISBURSEMENT OF PAYMENTS.—Upon re-
ceipt of a statement from an institution of higher
education that complies with paragraph (2), the Cor-
poration shall, subject to paragraph (4), disburse the
total amount of the national service educational
awards for which eligible individuals who have sub-
mitted applications to that institution under para-
graph (1) are scheduled to receive. 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 insti-
tution 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 nec-
essary to permit the second installment to be paid at
the beginning of the second semester, quarter, or simi-
lar division of such period of enrollment.
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‘‘(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 pur-
suant 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 eligi-
ble individual’s total available national service edu-
cational award that may be disbursed under this sub-
section for any period of enrollment shall not exceed
the difference between—
‘‘(A) the eligible individual’s cost of attend-
ance for such period of enrollment, determined in
accordance with section 472 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1087ll); and
‘‘(B) the sum of—
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‘‘(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 sec-
tion 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 Cor-
poration shall by regulation provide for the payment of na-
tional service educational awards to permit eligible individ-
uals 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 reg-
ulation for the payment on behalf of an eligible individual
of interest that accrues during a period for which such indi-
vidual has obtained forbearance in the repayment of a
qualified student loan (as defined in subsection (b)(7)), if
the eligible individual successfully completes the required
term of service (as determined under section 146(b)) of the
individual. Such regulations shall be prescribed after con-
sultation with the Secretary of Education.
‘‘(f) EXCEPTION.—
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‘‘(1) OPTION.—With the approval of the Presi-
dent, a national service program that receives assist-
ance under section 121 may offer to each participant
in the program the option of—
‘‘(A) waiving the right of the participant to
receive a national service educational award;
and
‘‘(B) receiving an alternative post-service
benefit.
‘‘(2) SOURCES OF FUNDING.—In providing for
the alternative post-service benefit, the program may
not use funds made available under this Act or any
other Federal law.
‘‘(g) DEFINITION OF INSTITUTION OF HIGHER EDU-
CATION.—Notwithstanding section 101 of this Act, for pur-
poses of this section the term ‘institution of higher edu-
cation’ 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 Na-
tional 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.
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‘‘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 Edu-
cation Act of 1965 (20 U.S.C. 1078(a)(2)(C)(i)) is
amended by inserting ‘‘any national service edu-
cational award such student will receive under sub-
title D of title I of the National and Community
Service Act of 1990 (42 U.S.C. 12751 et seq.),’’ after
‘‘parts C and E of this title,’’.
(2) FORBEARANCE IN THE COLLECTION OF STAF-
FORD 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 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 serv-
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ice position, for which the borrower receives a
national service educational award under the
National and Community Service Trust Act of
1993;
‘‘(ii) provides that clauses (iii) and (iv) of
subparagraph (V) shall also apply to a forbear-
ance 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 ‘‘subpara-
graphs (V) and (W) of subsection (b)(1)’’.
(3) ELIGIBILITY FOR STAFFORD LOAN FORGIVE-
NESS.—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 ‘‘Octo-
ber 1, 1989’’; and
(B) in subsection (c), by adding at the end
the following new paragraph:
‘‘(5) INELIGIBILITY OF NATIONAL SERVICE EDU-
CATIONAL AWARD RECIPIENTS.—No student borrower
may, for the same volunteer service, receive a benefit
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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.).’’.
(4) ELIGIBILITY FOR PERKINS LOAN FORGIVE-
NESS.—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.—Sec-
tion 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 SERV-
ICE-LEARNING PROGRAMS.
(a) AMENDMENTS TO SERVE-AMERICA PROGRAMS.—
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(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 Com-
munity Service Act of 1990, and to enable the Cor-
poration for National and Community Service, and
the entities receiving financial assistance under such
part, to—
(A) work with teachers in elementary
schools and secondary schools within a commu-
nity, and with community-based agencies, to cre-
ate 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 oppor-
tunities 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 commu-
nities to ensure that projects introduce the stu-
dents to various careers and expose the students
to needed further education and training.
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(2) PROGRAMS.—Subtitle B of title I of the Na-
tional and Community Service Act of 1990 (42
U.S.C. 12501 et seq.) is amended by striking the sub-
title 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 consulta-
tion with the Secretary of Education, may make grants
under section 112(b)(1), and allotments under subsections
(a) and (b)(2) of section 112, to States (through State edu-
cational agencies), and to Indian tribes, to pay for the Fed-
eral share of—
‘‘(1) planning and building the capacity of the
States or Indian tribes (which may be accomplished
through grants or contracts with qualified organiza-
tions) to implement school-based service-learning pro-
grams, including—
‘‘(A) providing training for teachers, super-
visors, personnel from community-based agencies
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(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, includ-
ing the age-appropriate learning component de-
scribed in section 114(d)(1)(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 re-
search and evaluation of the educational value of
service-learning and the effect of service-learning
activities on communities; and
‘‘(E) establishing effective outreach and dis-
semination of information to ensure the broadest
possible involvement of community-based agen-
cies 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, train-
ing, supervision, placement, salaries, and benefits of
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service-learning coordinators, through State distribu-
tion of Federal funds made available under this sub-
part 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—
‘‘(I) has demonstrated expertise in
the provision of services to meet
human, educational, environmental, or
public safety needs;
‘‘(II) was in existence 1 year be-
fore the date on which the organization
submitted an application under section
114; and
‘‘(III) will make projects available
for participants, who shall be students;
and
‘‘(ii) may include a private for-profit
business or private elementary or secondary
school;
‘‘(3) planning of school-based service-learning
programs through State distribution of Federal funds
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made available under this subpart to local edu-
cational agencies, which planning may include pay-
ing 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 sub-
title 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 im-
plementation 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 or-
ganizations;
‘‘(ii) other educational agencies; or
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‘‘(iii) private for-profit businesses,
that coordinate and operate projects for participants,
who shall be students.
‘‘(b) RELATED EXPENSES.—A partnership, local edu-
cational agency, or other qualified organization that re-
ceives financial assistance under this subpart may, in car-
rying 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 admin-
istration, 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 re-
quirements of section 113 and such other requirements as
the President may determine to be appropriate, the Cor-
poration 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
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‘‘(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 President
may establish.
‘‘(b) USE OF FUNDS.—Such an organization may use
a grant made under subsection (a) to make grants to part-
nerships described in paragraph (2) or (4) of section 111(a)
to implement, operate, or expand school-based service-learn-
ing programs as described in such section and provide tech-
nical 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 fis-
cal year, the Corporation shall reserve an amount of not
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more than 3 percent for payments to Indian tribes, the Vir-
gin Islands, Guam, American Samoa, and the Common-
wealth 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 appro-
priated 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) States and Indian tribes; or
‘‘(B) as described in section 111B, to
grantmaking entities.
‘‘(2) ALLOTMENTS.—
‘‘(A) SCHOOL-AGE YOUTH.—Except as pro-
vided 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.
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‘‘(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 chap-
ter 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(27), 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.
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‘‘(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 President
may determine to be appropriate, the Corporation shall,
after making any grants under section 111A to a partner-
ship or agency described in such section, make any remain-
der of such allotment available for reallotment to such other
States, and Indian tribes, with approved applications sub-
mitted under section 113, as the Corporation may deter-
mine 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 Fed-
eral 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 pre-
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pare, submit to the Corporation, and obtain approval of,
an application at such time and in such manner as the
President may reasonably require.
‘‘(b) CONTENTS.—An application that is submitted
under subsection (a) with respect to service-learning pro-
grams described in section 111 shall include—
‘‘(1) a 3-year strategic plan, or a revision of a
previously approved 3-year strategic plan, for pro-
moting service-learning through the programs, which
plan shall contain such information as the President
may reasonably require, including information dem-
onstrating that the programs will be carried out in a
manner consistent with the approved strategic plan;
‘‘(2) assurances that—
‘‘(A) the applicant will keep such records
and provide such information to the Corporation
with respect to the programs as may be required
for fiscal audits and program evaluation; and
‘‘(B) the applicant will comply with the
nonduplication and nondisplacement require-
ments of section 177 and the grievance procedure
requirements of section 176(f); and
‘‘(3) such additional information as the Presi-
dent may reasonably require.
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‘‘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 pro-
grams 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 President may
reasonably require.
‘‘(b) DIRECT
APPLICATION
TO
CORPORATION
TO
CARRY
OUT
SCHOOL-BASED
SERVICE-LEARNING
PRO-
GRAMS 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 sub-
mitted at such time and in such manner, and shall contain
such information, as the President may reasonably require.
‘‘(c) APPLICATION TO STATE OR INDIAN TRIBE TO RE-
CEIVE ASSISTANCE TO CARRY OUT SCHOOL-BASED SERV-
ICE-LEARNING PROGRAMS.—
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‘‘(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 de-
scribed 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 en-
tity 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 de-
scribed 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 ap-
plication for the program.
‘‘(2) SUBMISSION.—Such application shall be
submitted at such time and in such manner, and
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shall contain such information, as the agency, tribe,
or entity may reasonably require.
‘‘(d) REGULATIONS.—The Corporation shall by regula-
tion establish standards for the information and assurances
required to be contained in an application submitted under
subsection (a) or (b) with respect to a service-learning pro-
gram described in section 111, including, at a minimum—
‘‘(1) assurances that—
‘‘(A) prior to the placement of a partici-
pant, the entity carrying out the program will
consult with any local labor organization rep-
resenting 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 em-
ployees;
‘‘(B) the entity carrying out the program
will develop an age-appropriate learning compo-
nent 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
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‘‘SEC. 115. CONSIDERATION OF APPLICATIONS.
‘‘(a) CRITERIA FOR APPLICATIONS.—In approving ap-
plications 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 President may by regulation specify. In providing as-
sistance under this subpart, a State educational agency,
Indian tribe, or grantmaking entity shall consider such
criteria.
‘‘(b) PRIORITY FOR LOCAL APPLICATIONS.—In provid-
ing assistance under this subpart, a State educational agen-
cy or Indian tribe, or the Corporation if section 111A or
111B applies, shall give priority to entities that submit ap-
plications under section 114 with respect to service-learning
programs described in section 111 that—
‘‘(1) involve participants in the design and oper-
ation of the program;
‘‘(2) are in the greatest need of assistance, such
as programs targeting low-income areas;
‘‘(3) involve—
‘‘(A) students from public elementary or
secondary schools, and students from private ele-
mentary or secondary schools, serving together;
or
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‘‘(B) students of different ages, races, sexes,
ethnic groups, disabilities, or economic back-
grounds, serving together; or
‘‘(4) are integrated into the academic program of
the participants.
‘‘(c) REJECTION OF APPLICATIONS.—If the Corpora-
tion rejects an application submitted by a State under sec-
tion 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 tech-
nical assistance, if needed, to the State as part of the resub-
mission 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 sec-
ondary schools, such State, Indian tribe, or agency shall
(after consultation with appropriate private school rep-
resentatives) make provision—
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‘‘(1) for the inclusion of services and arrange-
ments 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 stu-
dents 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 edu-
cational 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 Cor-
poration determines that a State, Indian tribe, or local edu-
cational agency substantially fails or is unwilling to pro-
vide for such participation on an equitable basis, the Presi-
dent 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 para-
graphs (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.—
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‘‘(1) IN
GENERAL.—The Federal share attrib-
utable 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 pro-
gram for the first year for which the program re-
ceives assistance under this subpart;
‘‘(B) 80 percent of the total cost of the pro-
gram for the second year for which the program
receives assistance under this subpart;
‘‘(C) 70 percent of the total cost of the pro-
gram for the third year for which the program
receives assistance under this subpart; and
‘‘(D) 50 percent of the total cost of the pro-
gram for the fourth year, and for any subsequent
year, for which the program receives assistance
under this subpart.
‘‘(2) CALCULATION.—In providing for the re-
maining share of the cost of carrying out such a pro-
gram, each recipient of assistance under this sub-
part—
‘‘(A) shall provide for such share through a
payment in cash or in kind, fairly evaluated, in-
cluding facilities, equipment, or services; and
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‘‘(B) may provide for such share through
State sources, local sources, or Federal sources
(other than funds made available under the na-
tional service laws).
‘‘(b) WAIVER.—The President may waive the require-
ments 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 edu-
cational 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 President may by
rule prescribe the manner and extent to which—
‘‘(A) such assistance may be used to cover
administrative costs; and
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‘‘(B) that portion of the assistance available
to cover administrative costs should be distrib-
uted between—
‘‘(i) the original recipient; and
‘‘(ii) the entity carrying out the serv-
ice-learning programs supported with the
assistance.
‘‘(b) CAPACITY-BUILDING ACTIVITIES.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), not less than 10 percent and not more than
15 percent of the amount of assistance provided to a
State educational agency or Indian tribe that is the
original recipient of a grant or allotment under sub-
section (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 co-
ordination activities, described in section 111(a)(1).
‘‘(2) WAIVER.—The President may waive the re-
quirements of paragraph (1) in order to permit an
agency or a tribe to use not less than 10 percent and
not more than 25 percent of such amount to build ca-
pacity as provided in paragraph (1). To be eligible to
receive such a waiver such an agency or tribe shall
submit an application to the President at such time,
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in such manner, and containing such information as
the President may require.
‘‘(c) LOCAL USES OF FUNDS.—Funds made available
under this subpart may not be used to pay any stipend,
allowance, or other financial support to any student who
is a participant under this subtitle, except reimbursement
for transportation, meals, and other reasonable out-of-pock-
et 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(30), 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:
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‘‘(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 organiza-
tions;
‘‘(B) was in existence 1 year before the date
on which the organization submitted the applica-
tion;
‘‘(C) has experience with service-learning;
and
‘‘(D) meets such other criteria as the Presi-
dent shall establish.
‘‘(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
President 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,
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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 en-
tity may use a grant made under subsection (a)—
‘‘(A) to make a grant to a qualified organi-
zation to implement, operate, expand, or rep-
licate a community-based service program that
provides for meaningful human, educational, en-
vironmental, or public safety service by partici-
pants, who shall be school-age youth; or
‘‘(B) to provide training and technical as-
sistance 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.
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‘‘(b) SUBMISSION.—Such application shall be submit-
ted to the Corporation at such time and in such manner,
and shall contain such information, as the President may
reasonably require.
‘‘(c) CONTENTS.—Such an application shall include,
at a minimum, a State plan that contains the information
and assurance described in section 117C(d) with respect to
each community-based service program proposed to be car-
ried out through funding distributed by the State Commis-
sion under this subpart.
‘‘SEC. 117C. LOCAL APPLICATIONS.
‘‘(a) APPLICATION TO CORPORATION TO MAKE GRANTS
FOR COMMUNITY-BASED SERVICE PROGRAMS.—To be eligi-
ble 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 Corpora-
tion, and obtain approval of, an application that proposes
a community-based service program to be carried out
through grants made to qualified organizations. Such ap-
plication shall be submitted at such time and in such man-
ner, and shall contain such information, as the President
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
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section 117A(a) to implement, operate, expand, or replicate
a community service program, a qualified organization
shall prepare, submit to the Corporation, and obtain ap-
proval of, an application that proposes a community-based
service program to be carried out at multiple sites, or that
proposes a model or 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 President may reasonably require.
‘‘(c) 
APPLICATION
TO
STATE
COMMISSION
OR
GRANTMAKING ENTITY TO RECEIVE GRANTS TO CARRY
OUT COMMUNITY-BASED SERVICE PROGRAMS.—To be eli-
gible 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 appli-
cation shall be submitted at such time and in such manner,
and shall contain such information, as the Commission or
entity may reasonably require.
‘‘(d) REGULATIONS.—The Corporation shall by regula-
tion establish standards for the information and assurances
required to be contained in an application submitted under
subsection (a) or (b) with respect to a service-learning pro-
gram described in section 117, including, at a minimum—
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‘‘(1) an assurance that the entity carrying out
the program proposed by the applicant will comply
with the nonduplication and nondisplacement provi-
sions of section 177 and the grievance procedure re-
quirements of section 176(f);
‘‘(2) an assurance that the entity carrying out
the program will, prior to placing a participant in
the program, consult with any local labor organiza-
tion representing employees in the area in which the
program will be carried out that are engaged in the
same or similar work as the work proposed to be car-
ried out by the program, to prevent the displacement
of such employees; and
‘‘(3) in the case of an application submitted by
a grantmaking entity, information demonstrating
that the entity will make grants for a program to—
‘‘(A) carry out activities described in sec-
tion 117A(b)(1) in two or more States, under
circumstances in which the activities carried out
under such program can be carried out more effi-
ciently through one program than through two or
more programs; and
‘‘(B) carry out the same activities, such as
training activities or activities related to ex-
changing information on service experiences,
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through each of the projects assisted through the
program.
‘‘(e) LIMITATION ON SAME PROJECT IN MULTIPLE AP-
PLICATIONS.—No applicant shall submit an application
under section 117B or this section, and the Corporation
shall reject an application that is submitted under section
117B or this section, if the application describes a project
proposed to be conducted using assistance requested by the
applicant and the project is already described in another
application pending before the Corporation.
‘‘SEC. 117D. CONSIDERATION OF APPLICATIONS.
‘‘(a) APPLICATION
OF CRITERIA.—The Corporation
shall apply the criteria described in subsection (b) in deter-
mining 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 appli-
cant 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 Commis-
sion or grantmaking entity shall apply the criteria de-
scribed in subsection (b) in determining whether to approve
an application under section 117C(c) and to make a grant
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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 attrib-
utable to this subpart of the cost of carrying out a
program for which a grant is made under this sub-
part may not exceed the percentage specified in sub-
paragraph (A), (B), (C), or (D) of section 116(a)(1),
as appropriate.
‘‘(2) CALCULATION.—Each recipient of assist-
ance under this subpart shall comply with section
116(a)(2).
‘‘(b) WAIVER.—The President may waive the require-
ments 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 per-
cent of the amount of assistance provided to a State Com-
mission, 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
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‘‘(2) the entity carrying out the community-
based service programs supported with the assistance.
‘‘(b) RULES ON USE.—The President may by rule pre-
scribe the manner and extent to which—
‘‘(1) such assistance may be used to cover admin-
istrative costs; and
‘‘(2) that portion of the assistance available to
cover administrative costs should be distributed be-
tween—
‘‘(A) the original recipient; and
‘‘(B) the entity carrying out the commu-
nity-based service programs supported with the
assistance.
‘‘Subpart C—Clearinghouse
‘‘SEC. 118. SERVICE-LEARNING CLEARINGHOUSE.
‘‘(a) IN GENERAL.—The Corporation shall provide fi-
nancial assistance, from funds appropriated to carry out
subtitle H, to agencies described in subsection (b) to estab-
lish 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 AGEN-
CIES.—Public and private not-for-profit agencies that have
extensive experience with service-learning, including use of
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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 concern-
ing 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 pro-
vide the leadership development and training de-
scribed in subparagraph (A);
‘‘(4) facilitate communication among entities
carrying out service-learning programs and partici-
pants in such programs;
‘‘(5) provide information, curriculum materials,
and technical assistance relating to planning and op-
eration of service-learning programs, to States and
local entities eligible to receive financial assistance
under this title;
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‘‘(6)(A) gather and disseminate information on
successful service-learning programs, components of
such successful programs, innovative youth skills cur-
ricula related to service-learning, and service-learning
projects; and
‘‘(B) coordinate the activities of the Clearing-
house 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 Presi-
dent 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 strik-
ing 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 ex-
pand participation in community service by supporting in-
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novative 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 con-
sultation 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 insti-
tutions), and partnerships comprised of such institutions
and of other public agencies or not-for-profit private orga-
nizations, 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 responsibil-
ity 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 com-
munity;
‘‘(2) supporting student-initiated and student-de-
signed community service projects through the pro-
gram;
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‘‘(3) strengthening the leadership and instruc-
tional capacity of teachers at the elementary, second-
ary, and post secondary levels, with respect to service-
learning, by—
‘‘(A) including service-learning as a key
component of the preservice teacher education of
the institution; and
‘‘(B) encouraging the faculty of the institu-
tion to use service-learning methods throughout
their curriculum;
‘‘(4) 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;
‘‘(5) 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 serv-
ice through the community service program;
‘‘(6) strengthening the service infrastructure
within institutions of higher education in the United
States through the program; and
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‘‘(7) providing for the training of teachers, pro-
spective 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 as-
sistance under this part shall comply with sec-
tion 116(a)(2).
‘‘(2) WAIVER.—The President may waive the re-
quirements of paragraph (1), in whole or in part, as
provided in section 116(b).
‘‘(d) APPLICATION FOR GRANT.—
‘‘(1) SUBMISSION.—To receive a grant or enter
into a contract under this part, an institution or
partnership described in subsection (b) shall prepare,
submit to the Corporation, and obtain approval of,
an application at such time, in such manner, and
containing such information as the Corporation may
reasonably require. In requesting applications for as-
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sistance under this part, the Corporation shall specify
such required information.
‘‘(2) 
CONTENTS.—An 
application 
submitted
under paragraph (1) shall, at a minimum, contain—
‘‘(A) assurances that—
‘‘(i) prior to the placement of a partic-
ipant, the applicant will consult with any
local labor organization representing em-
ployees in the area who are engaged in the
same or similar work as that proposed to be
carried out by such program, to prevent the
displacement and protect the rights of such
employees; and
‘‘(ii) the applicant will comply with
the nonduplication and nondisplacement
provisions of section 177 and the grievance
procedure requirements of section 176(f);
and
‘‘(B) such other assurances as the President
may reasonably require.
‘‘(e) PRIORITY.—
‘‘(1) IN GENERAL.—In making grants and enter-
ing into contracts under subsection (b), the Corpora-
tion shall give priority to applicants that submit ap-
plications containing proposals that—
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‘‘(A) demonstrate the commitment of the in-
stitution of higher education, other than by dem-
onstrating the commitment of the students, to
supporting the community service projects car-
ried out under the program;
‘‘(B) specify the manner in which the insti-
tution will promote faculty, administration, and
staff participation in the community service
projects;
‘‘(C) specify the manner in which the insti-
tution 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;
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‘‘(E) demonstrate community involvement
in the development of the proposal;
‘‘(F) specify that the institution will use
such assistance to strengthen the service infra-
structure in institutions of higher education; or
‘‘(G) with respect to projects involving de-
livery of service, specify projects that involve
leadership development of school-age youth.
‘‘(2) DETERMINATION.—In giving priority to ap-
plicants 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 applica-
tion 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 na-
tional service position.
‘‘(g) DEFINITION.—Notwithstanding section 101(30),
as used in this part, the term ‘student’ means an individual
who is enrolled in an institution of higher education on
a full- or part-time basis.’’.
(c) TABLE OF CONTENTS.—Section 1(b) of the Na-
tional and Community Service Act of 1990 (Public Law
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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
‘‘PART I—SERVE-AMERICA PROGRAMS
‘‘SUBPART A—SCHOOL-BASED PROGRAMS FOR STUDENTS
‘‘Sec. 111. Authority to assist States and Indian tribes.
‘‘Sec. 111A. Authority to assist local applicants in nonparticipating States.
‘‘Sec. 111B. Authority to assist public or private 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.
‘‘Sec. 116B. Definitions.
‘‘SUBPART B—COMMUNITY-BASED SERVICE PROGRAMS FOR SCHOOL-AGE YOUTH
‘‘Sec. 117. Definitions.
‘‘Sec. 117A. General authority.
‘‘Sec. 117B. State applications.
‘‘Sec. 117C. Local applications.
‘‘Sec. 117D. Consideration of applications.
‘‘Sec. 117E. Federal, State, and local contributions.
‘‘Sec. 117F. Limitations on uses of funds.
‘‘SUBPART C—CLEARINGHOUSE
‘‘Sec. 118. Service-learning clearinghouse.
‘‘PART II—HIGHER EDUCATION INNOVATIVE PROGRAMS FOR COMMUNITY
SERVICE
‘‘Sec. 119. Higher education innovative programs for community service.’’.
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 Commu-
nity Service Act of 1990 is amended—
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(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 SUP-
PORT NATIONAL SERVICE.
‘‘(a) METHODS
OF CONDUCTING ACTIVITIES.—The
Corporation may carry out this section directly or through
grants, contracts, and cooperative agreements with other en-
tities.
‘‘(b) INNOVATION AND QUALITY IMPROVEMENT.—
‘‘(1) ACTIVITIES.—The Corporation may under-
take activities to improve the quality of national serv-
ice programs and to support innovative and model
programs, including—
‘‘(A) programs, including programs for
rural youth, under subtitle B or C;
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‘‘(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 sup-
port 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 Corpora-
tion 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-qual-
ity service and a positive service experience for the partici-
pants and volunteers.
‘‘(e) IMPROVE ABILITY TO APPLY FOR ASSISTANCE.—
The Corporation shall provide training and technical as-
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sistance, where necessary, to individuals, programs, local
labor organizations, State educational agencies, State Com-
missions, 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 Cor-
poration may award national service fellowships.
‘‘(g) CONFERENCES AND MATERIALS.—The Corpora-
tion 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 Cor-
poration may provide training assistance to selected indi-
viduals who volunteer to serve in the Peace Corps or a pro-
gram 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 indi-
vidual 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 Corpora-
tion may conduct a campaign to solicit funds for the Na-
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tional Service Trust and other programs and activities au-
thorized 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 na-
tional 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 re-
search on national service, including service-learning.
‘‘(l) INTERGENERATIONAL SUPPORT.—The Corpora-
tion may assist programs in developing a service compo-
nent that combines students, out-of-school youths, and older
adults as participants to provide needed community serv-
ices.
‘‘(m) PLANNING COORDINATION.—The Corporation
may coordinate community-wide planning among pro-
grams 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 Corpora-
tion may support the development and dissemination of
materials, including training materials, and arrange for
uniforms and insignia, designed to promote unity and
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shared features among programs that receive assistance
under the national service laws.
‘‘(p) SERVICE-LEARNING.—The Corporation shall sup-
port innovative programs and activities that promote serv-
ice-learning.
‘‘(q) NATIONAL YOUTH SERVICE DAY.—
‘‘(1) DESIGNATION.—April 19, 1994, and April
18, 1995 are each designated as ‘National Youth
Service Day’. The President of the United States is
authorized and directed to issue a proclamation call-
ing on the people of the United States to observe the
day with appropriate ceremonies and activities.
‘‘(2) FEDERAL ACTIVITIES.—In order to observe
National Youth Service Day at the Federal level, the
Corporation may organize and carry out appropriate
ceremonies and activities.
‘‘(3) ACTIVITIES.—The Corporation may make
grants to not-for-profit organizations with dem-
onstrated ability to carry out appropriate activities,
in order to support such activities on National Youth
Service Day.
‘‘SEC. 198A. CLEARINGHOUSES.
‘‘(a) ASSISTANCE.—The Corporation shall provide as-
sistance to appropriate entities to establish one or more
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clearinghouses, including the clearinghouse described in sec-
tion 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 con-
taining 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 concern-
ing community service;
‘‘(3)(A) provide leadership development and
training to State and local community service pro-
gram administrators, supervisors, and participants;
and
‘‘(B) provide training to persons who can pro-
vide the leadership development and training de-
scribed in subparagraph (A);
‘‘(4) facilitate communication among entities
carrying out community service programs and par-
ticipants;
‘‘(5) provide information, curriculum materials,
technical assistance relating to planning and oper-
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ation 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 cur-
riculum, and community service projects; and
‘‘(B) coordinate the activities of the clearing-
house 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 Presi-
dent determines to be appropriate.
‘‘SEC. 198B. PRESIDENTIAL AWARDS FOR SERVICE.
‘‘(a) PRESIDENTIAL AWARDS.—
‘‘(1) IN GENERAL.—The President of the United
States, acting through the Corporation, may make
Presidential awards for service to individuals provid-
ing significant service, and to outstanding service
programs.
‘‘(2) INDIVIDUALS
AND
PROGRAMS.—Notwith-
standing section 101(20)—
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‘‘(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 of the United States, acting through the
Corporation—
‘‘(A) is authorized to incur necessary ex-
penses for the honorary recognition of the indi-
vidual or program; and
‘‘(B) is not authorized to make a cash
award to such individual or program.
‘‘(b) INFORMATION.—The President of the United
States, acting through the Corporation, shall ensure that
information concerning individuals and programs receiv-
ing awards under this section is widely disseminated.
‘‘SEC. 198C. MILITARY INSTALLATION CONVERSION DEM-
ONSTRATION PROGRAMS.
‘‘(a) PURPOSES.—The purposes of this section are to—
‘‘(1) provide meaningful training and paid em-
ployment to economically disadvantaged youth;
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‘‘(2) fully utilize military installations affected
by closures or realignments;
‘‘(3) encourage communities affected by such clo-
sures or realignments to convert the installations to
community use; and
‘‘(4) foster a sense of community pride in the
youth in the community.
‘‘(b) DEFINITIONS.—As used in this section:
‘‘(1) AFFECTED
MILITARY
INSTALLATION.—The
term ‘affected military installation’ means a military
installation described in section 325(e)(1) of the Job
Training Partnership Act (29 U.S.C. 1662d(e)(1)).
‘‘(2) COMMUNITY.—The term ‘community’ in-
cludes a county.
‘‘(3) CONVERT TO COMMUNITY USE.—The term
‘convert to community use’, used with respect to an
affected military installation, includes—
‘‘(A) conversion of the installation or a part
of the installation to—
‘‘(i) a park;
‘‘(ii) a community center;
‘‘(iii) a recreational facility; or
‘‘(iv) a facility for a Head Start pro-
gram under the Head Start Act (42 U.S.C.
9831 et seq.); and
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‘‘(B) carrying out, at the installation, a
construction or economic development project
that is of substantial benefit, as determined by
the President, to—
‘‘(i) the community in which the in-
stallation is located; or
‘‘(ii) a community located within such
distance of the installation as the President
may determine by regulation to be appro-
priate.
‘‘(4) 
DEMONSTRATION
PROGRAM.—The 
term
‘demonstration program’ means a program described
in subsection (c).
‘‘(c) DEMONSTRATION PROGRAMS.—
‘‘(1) GRANTS.—The Corporation may make
grants to communities and community-based agencies
to pay for the Federal share of establishing and car-
rying out military installation conversion demonstra-
tion programs, to assist in converting to community
use affected military installations located—
‘‘(A) within the community; or
‘‘(B) within such distance from the commu-
nity as the President may by regulation deter-
mine to be appropriate.
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‘‘(2) DURATION.—In carrying out such a dem-
onstration program, the community or community-
based agency may carry out—
‘‘(A) a program of not less than 6 months
in duration; or
‘‘(B) a full-time summer program.
‘‘(d) USE OF FUNDS.—
‘‘(1) SALARY.—A community or community-
based agency that receives a grant under subsection
(c) to establish and carry out a project through a
demonstration program may use the funds made
available through such grant to pay for a portion of
the salary of the participants in the project.
‘‘(2) LIMITATION ON AMOUNT OF SALARY.—The
amount of the salary provided to a participant under
paragraph (1) that may be paid using assistance pro-
vided under this section 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 volun-
teers under section 105 of the Domestic Volunteer
Service Act of 1973 (42 U.S.C. 4955); and
‘‘(B) 85 percent of the salary established by
the demonstration program involved.
‘‘(e) PARTICIPANTS.—
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‘‘(1) ELIGIBILITY.—A person shall be eligible to
be selected as a participant in a project carried out
through a demonstration program if the person is—
‘‘(A) an economically disadvantaged indi-
vidual; and
‘‘(B)(i) a person described in section 153(b);
‘‘(ii) a youth described in section 154(a); or
‘‘(iii) an eligible youth described in section
423 of the Job Training Partnership Act (29
U.S.C. 1693).
‘‘(2) PARTICIPATION.—Persons desiring to par-
ticipate in such a project shall enter into an agree-
ment with the service sponsor of the project to partici-
pate—
‘‘(A) on a full-time or a part-time basis;
and
‘‘(B) for the duration referred to in sub-
section (f)(2)(C).
‘‘(f) APPLICATION.—
‘‘(1) IN GENERAL.—To be eligible to receive a
grant under subsection (c), a community or commu-
nity-based agency shall submit an application to the
President at such time, in such manner, and contain-
ing such information as the President may require.
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gram to assist in converting an affected military installa-
tion, the Corporation shall not make a grant for more than
25 percent of the total cost of the conversion.’’.
(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.
‘‘Sec. 198C. Military installation conversion demonstration programs.’’.
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(e) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) NATIONAL
DEFENSE
AUTHORIZATION
ACT
FOR FISCAL YEAR 1993.—
(A) Section 1091(f)(2) of the National De-
fense 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 ‘‘sub-
title 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 the National and
Community Service Act of 1990 (as redesignated
in subsection (b)(3) of this section) (42 U.S.C.
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12653b(a)) is amended by striking ‘‘195A(a)’’
and inserting ‘‘152(a)’’.
(B) Section 154(a) of such Act (as redesig-
nated 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 redesig-
nated 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)’’.
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(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 insert-
ing ‘‘152’’; and
(II) in paragraph (2), by striking
‘‘195’’ and inserting ‘‘151’’; and
(ii) in subsection (c)(2)(C)(i), by strik-
ing ‘‘195K(a)(2)’’ and inserting ‘‘section
162(a)(2)’’.
(F) Section 161(b)(1)(B) of such Act (as re-
designated in subsection (b)(3) of this section)
(42 U.S.C. 12653j(b)(1)(B)) is amended by strik-
ing ‘‘195K(a)(3)’’ and inserting ‘‘162(a)(3)’’.
(G) Section 162(a)(2)(A) of such Act (as re-
designated 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 redesig-
nated in subsection (b)(3) of this section) (42
U.S.C. 12653o) is amended—
(i) in paragraph (2), by striking
‘‘195D’’ and inserting ‘‘155’’;
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(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 De-
fense 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 ex-
penditure during fiscal years 1993 and 1994.’’.
(g) PARTICIPANTS.—
(1) NATIONAL SERVICE PROGRAM.—Section 153
of the National and Community Service Act of 1990
(as redesignated in subsection (b)(3) of this section)
(42 U.S.C. 12653b) is amended—
(A) by striking subsection (d); and
(B) by redesignating subsection (e) as sub-
section (d).
(2) SUMMER
NATIONAL
SERVICE
PROGRAM.—
Section 154 of the National and Community Service
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Act of 1990 (as redesignated in subsection (b)(3) of
this section) (42 U.S.C. 12653c) is amended—
(A) by striking subsection (b); and
(B) by redesignating subsection (c) as sub-
section (b).
(h) ADDITIONAL AMENDMENT REGARDING CIVILIAN
COMMUNITY CORPS.—Section 158 of the National and
Community Service Act of 1990 (as redesignated in sub-
section (b)(3) of this section) (42 U.S.C. 12653g) is amend-
ed 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 edu-
cational award described in subtitle D if the Corps mem-
ber—
‘‘(1) serves in an approved national service posi-
tion; and
‘‘(2) satisfies the eligibility requirements speci-
fied in section 146 with respect to service in that ap-
proved 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
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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 for which the Corporation
has approved the provision of a national service edu-
cational award described in section 147 as one of the
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benefits to be provided for successful service in the po-
sition.
‘‘(3) CARRY OUT.—The term ‘carry out’, when
used in connection with a national service program
described in section 122, means the planning, estab-
lishment, operation, expansion, or replication of the
program.
‘‘(4) COMMUNITY
ACTION
AGENCY.—The term
‘community action agency’ means an entity or orga-
nization referred to in section 675(c)(2)(A) of the
Community Services Block Grant Act (42 U.S.C.
9904(c)(2)(A)).
‘‘(5) COMMUNITY-BASED
AGENCY.—The term
‘community-based agency’ means a private not-for-
profit organization, including a church or other reli-
gious entity, 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 and Community
Service established under section 191.
‘‘(7) ECONOMICALLY DISADVANTAGED.—The term
‘economically disadvantaged’ means, with respect to
an individual, an individual who is determined by
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the President to be low-income according to the latest
available data from the Department of Commerce.
‘‘(8) ELEMENTARY SCHOOL.—The term ‘elemen-
tary 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, or is a ‘Native’,
as defined in section 3(b) of the Alaska Native Claims
Settlement Act (43 U.S.C. 1602(b)).
‘‘(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—
‘‘(A) an Indian tribe, band, nation, or other
organized group or community, including—
‘‘(i) any Native village, as defined in
section 3(c) of the Alaska Native Claims
Settlement Act (43 U.S.C. 1602(c)), whether
organized traditionally or pursuant to the
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Act of June 18, 1934 (commonly known as
the ‘Indian Reorganization Act’; 48 Stat.
984, chapter 576; 25 U.S.C 461 et seq.); and
‘‘(ii) any Regional Corporation or Vil-
lage Corporation, as defined in subsection
(g) or (j), respectively, of section 3 of the
Alaska Native Claims Settlement Act (43
U.S.C. 1602 (g) or (j)),
that is recognized as eligible for the special pro-
grams and services provided by the United
States under Federal law to Indians because of
their status as Indians; and
‘‘(B) any tribal organization controlled,
sanctioned, or chartered by an entity described
in subparagraph (A).
‘‘(12) INDIVIDUAL WITH A DISABILITY.—Except
as provided in section 175(a), the term ‘individual
with a disability’ has the meaning given the term in
section 7(8) of the Rehabilitation Act of 1973 (29
U.S.C. 706(8)).
‘‘(13) 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)).
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‘‘(14) LOCAL EDUCATIONAL AGENCY.—The term
‘local educational agency’ has the same meaning
given such term in section 1471(12) of the Elemen-
tary and Secondary Education Act of 1965 (20
U.S.C. 2891(12)).
‘‘(15) NATIONAL SERVICE LAWS.—The term ‘na-
tional service laws’ means this Act and the Domestic
Volunteer Service Act of 1973 (42 U.S.C. 4950 et
seq.).
‘‘(16) 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 equiv-
alent thereof; and
‘‘(C) is not enrolled in an elementary or
secondary school or institution of higher edu-
cation.
‘‘(17) PARTICIPANT.—
‘‘(A) IN GENERAL.—The term ‘participant’
means—
‘‘(i) for purposes of subtitle C, an indi-
vidual in an approved national service po-
sition; and
‘‘(ii) for purposes of any other provi-
sion of this Act, an individual enrolled in
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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.
‘‘(18) PARTNERSHIP PROGRAM.—The term ‘part-
nership program’ means a program through which an
adult volunteer, a public or private not-for-profit
agency, an institution of higher education, or a busi-
ness assists a local educational agency.
‘‘(19) PRESIDENT.—The term ‘President’, except
when used as part of the term ‘President of the
United States’ means the President of the Corporation
appointed under section 193.
‘‘(20) 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 para-
graph (1) or (2) of section 152(b), or in section 198.
‘‘(21) 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
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not duplicate the routine services or functions of the
employer to whom participants are assigned.
‘‘(22) SCHOOL-AGE
YOUTH.—The term ‘school-
age youth’ means—
‘‘(A) individuals between the ages of 5 and
17, inclusive; and
‘‘(B) children with disabilities, as defined
in section 602(a)(1) of the Individuals with Dis-
abilities Education Act, who receive services
under part B of such Act.
‘‘(23) SECONDARY SCHOOL.—The term ‘second-
ary 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)).
‘‘(24) 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 elemen-
tary school, secondary school, institution of
higher education, or community service pro-
gram, and with the community; and
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‘‘(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 commu-
nity service program in which the partici-
pants are enrolled; and
‘‘(ii) provides structured time for the
students or participants to reflect on the
service experience.
‘‘(25) SERVICE-LEARNING
COORDINATOR.—The
term ‘service-learning coordinator’ means an individ-
ual who provides services as described in section
111(a)(3).
‘‘(26) SERVICE
SPONSOR.—The term ‘service
sponsor’ means an organization, or other entity, that
has been selected to provide a placement for a partici-
pant.
‘‘(27) STATE.—The term ‘State’ means each of
the several States, the District of Columbia, the Com-
monwealth of Puerto Rico, the Virgin Islands, Guam,
American Samoa, and the Commonwealth of the
Northern Mariana Islands. The term also includes
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Palau, until such time as the Compact of Free Asso-
ciation is ratified.
‘‘(28) STATE
COMMISSION.—The term ‘State
Commission’ means a State Commission on National
and Community Service maintained by a State pur-
suant 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.
‘‘(29) STATE EDUCATIONAL AGENCY.—The term
‘State educational agency’ has the same meaning
given such term in section 1471(23) of the Elemen-
tary and Secondary Education Act of 1965 (20
U.S.C. 2891(23)).
‘‘(30) STUDENT.—The term ‘student’ means an
individual who is enrolled in an elementary or sec-
ondary 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 Com-
munity Service Act of 1990 (42 U.S.C 12642(a)(2))
is amended by striking ‘‘adult volunteer and partner-
ship’’ each place the term appears and inserting
‘‘partnership’’.
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(2) Section 182(a)(3) of the National and Com-
munity Service Act of 1990 (42 U.S.C 12642(a)(3))
is amended by striking ‘‘adult volunteer and partner-
ship’’ 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 de-
fined in section 101 of the National and Community
Service Act of 1990, and service in the agencies, insti-
tutions 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(21) of the National and Community Service Act
of 1990 (42 U.S.C. 12511(18))’’.
(4) Section 1122(a)(2)(C) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1137a(a)(2)(C)) is
amended by striking ‘‘youth corps as defined in sec-
tion 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(24)
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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 Med-
ical 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 re-
quirement of section 101(2)(A)(ii), of such Act with
respect to a project; and
‘‘(2) the service sponsor of the project is an em-
ployer described in section 101(4) of such Act (other
than an employing agency within the meaning of sub-
chapter V of chapter 63 of title 5, United States
Code),
the participant shall be considered to be an eligible em-
ployee of the service sponsor.
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‘‘(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 em-
ploying agency within the meaning of such sub-
chapter,
the participant shall be considered to be en employee of the
service sponsor.’’.
(b) TABLE OF CONTENTS.—Section 1(b) of the Na-
tional 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’’;
(2) in subsection (b)—
(A) by striking ‘‘REPORT TO CONGRESS’’;
and inserting ‘‘REPORT TO CONGRESS BY COR-
PORATION’’; and
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(B) in paragraph (1), by striking ‘‘this
title’’ and inserting ‘‘the national service laws’’;
and
(3) by adding at the end the following:
‘‘(c) REPORT TO CONGRESS BY SECRETARY OF DE-
FENSE.—
‘‘(1) STUDY.—The Secretary of Defense shall an-
nually conduct a study of the effect of the programs
carried out under this title on recruitment for the
Armed Forces.
‘‘(2) REPORT.—The Secretary of Defense shall
annually submit a report to the appropriate commit-
tees of Congress containing the findings of the study
described in paragraph (1) and such recommenda-
tions for legislative and administrative reform as the
Secretary may determine to be appropriate.’’.
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 par-
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ticipant 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 mem-
ber 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 assist-
ance provided under this title shall constitute Federal fi-
nancial 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.), and shall constitute Federal financial
assistance to an education program or activity for purposes
of the Education Amendments of 1972 (20 U.S.C. 1681 et
seq.).
‘‘(c) RELIGIOUS DISCRIMINATION.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), an individual with responsibility for the
operation of a project that receives assistance under
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this title shall not discriminate on the basis of reli-
gion against a participant in such project or a mem-
ber 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 President shall
promulgate rules and regulations to provide for the enforce-
ment of this section that shall include provisions for sum-
mary 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 PROCE-
DURES.
(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
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contract, as approved national service positions,’’ be-
fore ‘‘whenever the Commission’’; and
(2) in paragraph (2)(B), by inserting ‘‘or re-
voked’’ 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 adju-
dication of grievances from participants, labor orga-
nizations, and other interested individuals concerning
projects that receive assistance under this title, in-
cluding 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.—
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‘‘(A) HEARING.—A hearing on any griev-
ance 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
ARBITRA-
TOR.—In the event of a decision on a griev-
ance 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 arbitra-
tion before a qualified arbitrator who is
jointly selected and independent of the in-
terested parties.
‘‘(ii) APPOINTED ARBITRATOR.—If the
parties cannot agree on an arbitrator, the
President shall appoint an arbitrator from
a list of qualified arbitrators within 15
days after receiving a request for such ap-
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pointment from one of the parties to the
grievance.
‘‘(B) DEADLINE FOR PROCEEDING.—An ar-
bitration proceeding shall be held not later than
45 days after the request for such arbitration
proceeding, or, if the arbitrator is appointed by
the President in accordance with subparagraph
(A)(ii), not later than 30 days after the appoint-
ment 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 pro-
ceeding begins.
‘‘(D) COST.—
‘‘(i) IN GENERAL.—Except as provided
in clause (ii), the cost of an arbitration pro-
ceeding shall be divided evenly between the
parties to the arbitration.
‘‘(ii) EXCEPTION.—If a participant,
labor organization, or other interested indi-
vidual 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
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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 place-
ment 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 in-
volves a violation of subsection (a) or (b) of sec-
tion 177 and the employer of the displaced em-
ployee is the recipient of assistance under this
title—
‘‘(i) reinstatement of the displaced em-
ployee to the position held by such employee
prior to displacement;
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‘‘(ii) payment of lost wages and bene-
fits of the displaced employee;
‘‘(iii) reestablishment of other relevant
terms, conditions, and privileges of employ-
ment of the displaced employee; and
‘‘(iv) such equitable relief as is nec-
essary to correct any violation of subsection
(a) or (b) of section 177 or to make the dis-
placed employee whole.
‘‘(7) ENFORCEMENT.—Suits to enforce arbitra-
tion 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 con-
troversy 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 par-
ticipant 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 em-
ployed workers; or
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(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 in-
serting ‘‘National Senior Volunteer Corps pro-
grams’’;
(3) by striking subsections (i) and (j); and
(4) by adding at the end the following:
‘‘(i) INDEPENDENT EVALUATION AND REPORT OF DE-
MOGRAPHICS OF NATIONAL SERVICE PARTICIPANTS AND
COMMUNITIES.—
‘‘(1) INDEPENDENT EVALUATION.—
‘‘(A) IN GENERAL.—The Corporation shall,
on an annual basis, arrange for an independent
evaluation of the programs assisted under sub-
title C.
‘‘(B) PARTICIPANTS.—
‘‘(i) IN GENERAL.—The entity conduct-
ing such evaluation shall determine the de-
mographic characteristics of the partici-
pants in such programs.
‘‘(ii) CHARACTERISTICS.—The entity
shall determine, for the year covered by the
evaluation, the total number of participants
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in the programs, and the number of partici-
pants within the programs in each State,
by sex, age, economic background, education
level, ethnic group, disability classification,
and geographic region.
‘‘(iii) CATEGORIES.—The Corporation
shall determine appropriate categories for
analysis of each of the characteristics re-
ferred to in clause (ii) for purposes of such
an evaluation.
‘‘(C) COMMUNITIES.—In conducting the
evaluation, the entity shall determine the
amount of assistance provided under section 121
during the year that has been expended for
projects conducted under the programs in areas
described in section 133(c)(6).
‘‘(2) REPORT.—The entity conducting the eval-
uation shall submit a report to the President, Con-
gress, the Corporation, and each State Commission
containing the results of the evaluation—
‘‘(A) with respect to the evaluation covering
the year beginning on the date of enactment of
this subsection, not later than 18 months after
such date; and
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‘‘(B) with respect to the evaluation covering
each subsequent year, not later than 18 months
after the first day of each such year.’’.
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 edu-
cational 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 Na-
tional 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. AUDITS.
(a) IN GENERAL.—Section 183 of the National and
Community Service Act of 1990 (42 U.S.C. 12643) is
amended to read as follows:
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‘‘SEC. 183. RIGHTS OF ACCESS, EXAMINATION, AND COPY-
ING.
‘‘(a) COMPTROLLER GENERAL.—The Comptroller Gen-
eral, or any of the duly authorized representatives of the
Comptroller General, shall have access to, and the right to
examine and copy, any books, documents, papers, records,
and other recorded information in any form—
‘‘(1) within the possession or control of the Cor-
poration or any State or local government, Indian
tribe, or public or private not-for-profit organization
receiving assistance directly or indirectly under this
Act; and
‘‘(2) that the Comptroller General, or his rep-
resentative, considers necessary to the performance of
an evaluation, audit, or review.
‘‘(b) CHIEF FINANCIAL OFFICER.—The Chief Finan-
cial Officer of the Corporation shall have access to, and the
right to examine and copy, any books, documents, papers,
records, and other recorded information in any form—
‘‘(1) within the possession or control of the Cor-
poration or any State or local government, Indian
tribe, or public or private not-for-profit organization
receiving assistance directly or indirectly under this
Act; and
‘‘(2) that relate to the duties of the Chief Finan-
cial Officer.’’.
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(b) TABLE OF CONTENTS.—Section 1(b) of the Na-
tional and Community Service Act of 1990 (Public Law
101–610; 104 Stat. 3127) is amended by striking the item
relating to section 183 of such Act and inserting the
following:
‘‘Sec. 183. Rights of access, examination, and copying.’’.
SEC. 122. 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 by repealing sections 185 and 186.
(b) TABLE OF CONTENTS.—Section 1(b) of the Na-
tional and Community Service Act of 1990 (Public Law
101–610; 104 Stat. 3127) is amended by striking the item
relating to section 185 of such Act.
SEC. 123. EFFECTIVE DATE.
This title, and the amendments made by this title,
shall take effect on October 1, 1993.
TITLE II—ORGANIZATION
SEC. 201. STATE COMMISSIONS ON NATIONAL AND COMMU-
NITY SERVICE.
(a) COMPOSITION AND DUTIES OF STATE COMMIS-
SIONS.—Subtitle F of title I of the National and Commu-
nity Service Act of 1990 is amended by striking section 178
(42 U.S.C. 12638) and inserting the following new section:
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‘‘SEC. 178. STATE COMMISSIONS ON NATIONAL AND COM-
MUNITY 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 dis-
tribution of approved national service positions under
subtitle C, a State shall maintain a State Commis-
sion on National and Community Service that satis-
fies 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 ad-
ministrative entity to carry out the duties otherwise
entrusted to a State Commission under this Act. The
chief executive officer shall ensure that any alter-
native administrative entity used in lieu of a State
Commission still provides for the individuals de-
scribed in paragraph (1), and some of the individuals
described in paragraph (2), of subsection (c) to play
a significant policymaking role in carrying out the
duties otherwise entrusted to a State Commission, in-
cluding 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
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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 25 voting
members.
‘‘(c) COMPOSITION AND MEMBERSHIP.—
‘‘(1) REQUIRED MEMBERS.—The State Commis-
sion for a State shall include as voting members at
least one representative from each of the following cat-
egories:
‘‘(A) Individuals between the ages of 16 and
25 who are participants or supervisors in pro-
grams.
‘‘(B) National service programs, such as
youth corps programs.
‘‘(C) School-based or community-based pro-
grams for school-age youth.
‘‘(D) Programs in which older adults are
participants.
‘‘(E) Local and State governmental entities
in the State, including the State educational
agency (from which at least one such member
shall be appointed).
‘‘(F) Local labor organizations.
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‘‘(2) SOURCES OF OTHER MEMBERS.—The State
Commission for a State may include as voting mem-
bers the following:
‘‘(A) Representatives of community-based
organizations or community-based agencies, in-
cluding community action agencies.
‘‘(B) Members selected from among partici-
pants in service programs who are youths.
‘‘(C) Members selected from among local
educators.
‘‘(D) Members selected from among experts
in the delivery of human, educational, environ-
mental, or public safety services to communities
and persons.
‘‘(E) Representatives of businesses and busi-
ness groups.
‘‘(F) Representatives of Indian tribes.
‘‘(G) Representatives of groups serving eco-
nomically disadvantaged individuals.
‘‘(H) Members selected from among out-of-
school youth or other at-risk youth.
‘‘(I) Members selected from among older
adults who are volunteers or participants in na-
tional service programs.
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‘‘(3) CORPORATION REPRESENTATIVE.—The rep-
resentative of the Corporation designated under sec-
tion 195(b) for a State shall be an ex officio
nonvoting member of the State Commission or alter-
native administrative entity for that State.
‘‘(4) EX
OFFICIO
STATE
REPRESENTATIVES.—
The chief executive officer of a State shall appoint, as
an ex officio nonvoting member of the State Commis-
sion for the State, the Corporation employee respon-
sible for volunteer service programs in the State, if
such employee is not the representative described in
paragraph (3). The chief executive officer may ap-
point, as ex officio nonvoting members of the State
Commission for the State, representatives selected
from among officers and employees of State agencies
operating community service, youth service, edu-
cation, social service, senior service, and job training
programs.
‘‘(5) LIMITATION ON NUMBER OF STATE EMPLOY-
EES 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 num-
ber) of the total membership of the State Commission.
‘‘(d) MISCELLANEOUS MATTERS.—
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‘‘(1) MEMBERSHIP BALANCE.—The chief execu-
tive officer of a State shall ensure, to the maximum
extent practicable, that the membership of the State
Commission for the State is diverse with respect to
race, ethnicity, age, gender, and disability character-
istics. Not more than 50 percent of the voting mem-
bers of a State Commission, plus one additional mem-
ber, may be from the same political party.
‘‘(2) TERMS.—Each member of the State Com-
mission 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 remain-
der of the term for which the predecessor of such mem-
ber 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 or alternative administrative entity shall
not receive any additional compensation by reason of
service on the State Commission or alternative ad-
ministrative entity, except that the State may author-
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ize the reimbursement of travel expenses, including a
per diem in lieu of subsistence, in the same manner
as other employees serving intermittently in the serv-
ice of the State.
‘‘(5) CHAIRPERSON.—The voting members of a
State Commission shall elect one of the voting mem-
bers to serve as chairperson of the State Commission.
‘‘(e) DUTIES OF A STATE COMMISSION.—The State
Commission or alternative administrative entity for a State
shall be responsible for the following duties:
‘‘(1) Preparation of a national service plan for
the State that may build on any comprehensive State
plan submitted pursuant to regulations issued under
the National and Community Service Act of 1990,
and that—
‘‘(A) covers a 3-year period;
‘‘(B) is updated annually;
‘‘(C) contains such information as the State
Commission or alternative administrative entity
considers to be appropriate or as the Corporation
may require; and
‘‘(D) ensures outreach to diverse commu-
nity-based agencies that serve underrepresented
populations, by—
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‘‘(i) using established networks, and
registries, at the State level; or
‘‘(ii) establishing such networks and
registries.
‘‘(2) Preparation of the applications of the State
under sections 117B and 130 for financial assistance,
in such a manner as to ensure that any decision re-
garding whether to include a program in the applica-
tion shall be made on the basis of the criteria de-
scribed in section 133(c), applied in a fair and equi-
table manner by an impartial decisionmaker.
‘‘(3) Assistance in the preparation of the appli-
cation 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 partici-
pants in national service programs that receive assist-
ance under section 121.
‘‘(6) Development of a State system for the re-
cruitment and placement of participants in national
service programs that receive assistance under section
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121 and dissemination of information concerning na-
tional service programs that receive assistance and
approved national service positions.
‘‘(7) Administration of the grant program in
support of national service programs that is con-
ducted 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 activi-
ties related to national service programs that receive
assistance directly from the Corporation (to be made
available in a case in which such a program requests
such a project, method, material, or activity) or from
the State using assistance provided under section 121,
for use by programs that request such projects, meth-
ods, materials, and activities.
‘‘(f) ACTIVITY INELIGIBLE FOR ASSISTANCE.—A State
Commission or alternative administrative entity may not
directly carry out any national service program that re-
ceives 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.
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‘‘(h) APPROVAL OF STATE COMMISSION OR ALTER-
NATIVE.—
‘‘(1) SUBMISSION TO CORPORATION.—The chief
executive officer for a State shall notify the Corpora-
tion of the establishment or designation of the State
Commission or use of an alternative administrative
entity for the State. The notification shall include a
description of—
‘‘(A) the composition and membership of the
State Commission or alternative administrative
entity; and
‘‘(B) the authority of the State Commission
or alternative administrative entity regarding
national service activities carried out by the
State.
‘‘(2) APPROVAL
OF
ALTERNATIVE
ADMINISTRA-
TIVE ENTITY.—Any designation of a State Commis-
sion or use of an alternative administrative entity to
carry out the duties of a State Commission shall be
subject to the approval of the Corporation, which shall
not be unreasonably withheld. The Corporation shall
approve an alternative administrative entity if such
entity provides for individuals described in subsection
(c) to play a significant policymaking role in carry-
ing out the duties otherwise entrusted to a State Com-
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mission, including the duties described in paragraphs
(1) through (4) of subsection (e).
‘‘(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 may reject a request to
use an alternative administrative entity in lieu of a
State Commission if the Corporation determines that
the entity does not provide for individuals described
in subsection (c) to play a significant policymaking
role as described in paragraph (2). If the Corporation
rejects a State Commission or alternative administra-
tive 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 adminis-
trative entity. At the request of the State, the Cor-
poration shall provide technical assistance to the
State as part of the revision process. The Corporation
shall promptly reconsider any resubmission of a noti-
fication under paragraph (1) or application to use an
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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 ad-
ministrative entity made after approval of the State
Commission or the alternative administrative entity.
‘‘(6) RIGHTS, BENEFITS, AND SUPPORT.—An al-
ternative administrative entity approved by the Cor-
poration under this subsection shall have the same
rights as a State Commission, and shall receive from
the Corporation the same benefits and support as the
Corporation provides to a State Commission.
‘‘(i) COORDINATION.—
‘‘(1) COORDINATION WITH OTHER STATE AGEN-
CIES.—The State Commission or alternative adminis-
trative entity for a State shall coordinate the activi-
ties of the Commission or entity under this Act with
the activities of other State agencies that administer
Federal financial assistance programs under the
Community Services Block Grant Act (42 U.S.C.
9901 et seq.) or other appropriate Federal financial
assistance programs.
‘‘(2) COORDINATION WITH VOLUNTEER SERVICE
PROGRAMS.—
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‘‘(A) IN GENERAL.—The State Commission
or alternative administrative entity for a State
shall coordinate functions of the Commission or
entity (including recruitment, public awareness,
and training activities) with such functions of
any division of ACTION, or of the Corporation,
that carries out volunteer service programs in
the State.
‘‘(B) AGREEMENT.—In coordinating func-
tions under this paragraph, such Commission or
entity, and such division, may enter into an
agreement to—
‘‘(i) carry out such a function jointly;
‘‘(ii) to assign responsibility for such a
function to the Commission or entity; or
‘‘(iii) to assign responsibility for such
a function to the division.
‘‘(C) INFORMATION.—The State Commission
or alternative entity for a State, and the head of
any such division, shall exchange information
about—
‘‘(i) the programs carried out in the
State by the Commission, entity, or divi-
sion, as appropriate; and
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‘‘(ii) opportunities to coordinate ac-
tivities.
‘‘(j) LIABILITY.—
‘‘(1) LIABILITY OF STATE.—Except as provided
in paragraph (2)(B), a State shall agree to assume li-
ability with respect to any claim arising out of or re-
sulting from any act or omission by a member of the
State Commission or alternative administrative en-
tity of the State, within the scope of the service of the
member on the State Commission or alternative ad-
ministrative entity.
‘‘(2) OTHER CLAIMS.—
‘‘(A) IN GENERAL.—A member of the State
Commission or alternative administrative entity
shall have no personal liability 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 State Com-
mission or alternative administrative entity.
‘‘(B) LIMITATION.—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
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the service of such member on the State Commis-
sion or alternative administrative entity.
‘‘(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 mem-
ber under applicable law with respect to such
service;
‘‘(B) to affect any other right or remedy
against the State under applicable law, or
against any person other than a member of the
State Commission or alternative administrative
entity; or
‘‘(C) to limit or alter in any way the im-
munities that are available under applicable law
for State officials and employees not described in
this subsection.’’.
(b) TABLE OF CONTENTS.—Section 1(b) of the Na-
tional 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 and Community Service.’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall take effect on October 1, 1993.
(d) TRANSITIONAL PROVISIONS.—
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(1) USE OF ALTERNATIVES TO STATE COMMIS-
SION.—If a State does not have a State Commission
on National and Community Service that satisfies the
requirements specified in section 178 of the National
and Community Service Act of 1990, as amended by
subsection (a), the Corporation for National and
Community 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 Com-
mission under subsection (e) of such section.
(2) APPLICATION
OF
SUBSECTION.—This sub-
section shall apply only during the 1-year period be-
ginning on the date of the enactment of this Act.
SEC. 202. INTERIM AUTHORITIES OF THE CORPORATION
FOR
NATIONAL AND COMMUNITY 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:
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‘‘Subtitle G—Corporation for
National and Community Service
‘‘SEC. 191. CORPORATION FOR NATIONAL AND COMMUNITY
SERVICE.
‘‘There is established a Corporation for National and
Community Service that shall administer the programs es-
tablished under this Act. The Corporation shall be a Gov-
ernment 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 Cor-
poration a Board of Directors (referred to in this sub-
title as the ‘Board’) that shall be composed of—
‘‘(A) 15 members, including an individual
between the ages of 16 and 25 who—
‘‘(i) has served in a school-based or
community-based service-learning program;
or
‘‘(ii) is a participant or a supervisor
in a program,
to be appointed by the President of the United
States, by and with the advice and consent of the
Senate;
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‘‘(B) the President of the Corporation, who
shall serve as an ex officio nonvoting member;
and
‘‘(C) the ex officio nonvoting members de-
scribed in paragraph (3).
‘‘(2) QUALIFICATIONS.—To the maximum extent
practicable, the President of the United States shall
appoint members—
‘‘(A) who have extensive experience in vol-
unteer or service activities, such as—
‘‘(i) activities funded under the na-
tional service laws; and
‘‘(ii) Federal financial assistance ac-
tivities, such as—
‘‘(I) activities under the Head
Start Act (42 U.S.C. 9831 et seq.);
‘‘(II) activities under the Commu-
nity Services Block Grant Act (42
U.S.C. 9901 et seq.); or
‘‘(III) antipoverty activities under
other Federal law;
that have a volunteer or service focus;
‘‘(B) who represent a broad range of view-
points;
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‘‘(C) who are experts in the delivery of
human, educational, environmental, or public
safety services, or are experts in the delivery of
services by veterans;
‘‘(D) that include at least one representative
of local educators and at least one representative
of community-based agencies;
‘‘(E) so that the Board shall be diverse with
respect to race, ethnicity, age, gender, and dis-
ability characteristics; and
‘‘(F) so that no more than 8 appointed
members of the Board are from a single political
party.
‘‘(3) EX OFFICIO MEMBERS.—The Secretary of
Veterans Affairs, the Secretary of Education, the Sec-
retary 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 Ad-
ministrator of the Environmental Protection Agency
shall serve as ex officio nonvoting members of the
Board.
‘‘(b) OFFICERS.—
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‘‘(1) CHAIRPERSON AND VICE CHAIRPERSON.—
The Board shall elect a Chairperson and a Vice
Chairperson from among its membership.
‘‘(2) OTHER OFFICERS.—The Board may elect
from among its membership such additional officers
of the Board as the Board determines to be appro-
priate.
‘‘(c) TERMS.—Each appointed member of the Board
shall serve for a term of 3 years, except that 5 of the mem-
bers first appointed to the Board after the date of enactment
of this section shall serve for a term of 1 year and 5 shall
serve for a term of 2 years, as designated by the President
of the United States.
‘‘(d) VACANCIES.—As vacancies occur on the Board,
new members shall be appointed by the President of the
United States, 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 exe-
cute 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
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at the call of the Chairperson of the Board, or 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) AUTHORITIES OF OFFICERS.—
‘‘(1) CHAIRPERSON.—The Chairperson of the
Board may call and conduct meetings of the Board.
‘‘(2) VICE CHAIRPERSON.—The Vice Chairperson
of the Board may conduct meetings of the Board in
the absence of the Chairperson.
‘‘(d) EXPENSES.—While away from their homes or reg-
ular places of business on the business of the Board, mem-
bers of such Board shall be allowed travel expenses, includ-
ing 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 intermit-
tently in the Government service.
‘‘(e) SPECIAL GOVERNMENT EMPLOYEES.—For pur-
poses 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.
‘‘(f) STATUS OF MEMBERS.—
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‘‘(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 consid-
ered to be a Federal employee.
‘‘(2) OTHER CLAIMS.—A member of the Board
shall have 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 provi-
sion of financial assistance by the Corporation. This
paragraph shall not be construed to limit personal li-
ability for criminal acts or omissions, willful or mali-
cious 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 mem-
ber 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 per-
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son other than a member of the Board partici-
pating in such transactions; or
‘‘(C) to limit or alter in any way the im-
munities that are available under applicable law
for Federal officials and employees not described
in this subsection.
‘‘(g) DUTIES.—The Board shall—
‘‘(1) review and approve the strategic plan de-
scribed in section 193A(b)(1), and annual updates of
the plan;
‘‘(2) review and approve the proposal described
in section 193A(b)(2)(A), with respect to the grants,
allotments, contracts, financial assistance, payment,
and positions referred to in such section;
‘‘(3) review and approve the proposal described
in section 193A(b)(3)(A), regarding the regulations,
standards, policies, procedures, programs, and initia-
tives referred to in such section;
‘‘(4) review and approve the evaluation plan de-
scribed in section 193A(b)(4)(A);
‘‘(5)(A) review, and advise the President regard-
ing, the actions of the President with respect to the
personnel of the Corporation, and with respect to such
standards, policies, procedures, programs, and initia-
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tives as are necessary or appropriate to carry out this
Act; and
‘‘(B) inform the President of any aspects of the
actions of the President that are not in compliance
with the annual strategic plan referred to in para-
graph (1), the proposals referred to in paragraphs (2)
and (3), or the plan referred to in paragraph (4), or
are not consistent with the objectives of this Act;
‘‘(6) receive any report as provided under section
8E (b), (c), or (d) of the Inspector General Act of
1978;
‘‘(7) make recommendations relating to a pro-
gram of research for the Corporation with respect to
national and community service programs, including
service-learning programs;
‘‘(8) advise the President of the United States
and the Congress concerning developments in national
and community service that merit the attention of the
President of the United States and the Congress;
‘‘(9) ensure effective dissemination of informa-
tion regarding the programs and initiatives of the
Corporation; and
‘‘(10) prepare and make recommendations to the
Congress and the President of the United States for
changes in this Act resulting from the studies and
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demonstrations the President of the Corporation is re-
quired to carry out under section 193A(b)(10), which
recommendations shall be submitted to the Congress
and President of the United States not later than
September 30, 1995.
‘‘(h) ADMINISTRATION.—The Federal Advisory Com-
mittee Act (5 U.S.C. App.) shall not apply with respect to
the Board.
‘‘SEC. 193. PRESIDENT.
‘‘(a) APPOINTMENT.—The Corporation shall be headed
by an individual who shall serve as President of the Cor-
poration, and who shall be appointed by the President of
the United States, by and with the advice and consent of
the Senate.
‘‘(b) COMPENSATION.—The President shall be com-
pensated at the rate provided for level III of the Executive
Schedule under section 5314 of title 5, United States Code.
‘‘(c) REGULATIONS.—The President shall prescribe
such rules and regulations as are necessary or appropriate
to carry out this Act.
‘‘SEC. 193A. AUTHORITIES AND DUTIES OF THE PRESIDENT.
‘‘(a) GENERAL POWERS AND DUTIES.—The President
shall be responsible for the exercise of the powers and the
discharge of the duties of the Corporation that are not re-
served to the Board, and shall have authority and control
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over all personnel of the Corporation, except as provided
in section 194(b)(4).
‘‘(b) DUTIES.—In addition to the duties conferred on
the President under any other provision of this Act, the
President shall—
‘‘(1) prepare and submit to the Board a strategic
plan every 3 years, and annual updates of the plan,
for the Corporation with respect to the major func-
tions and operations of the Corporation;
‘‘(2)(A) prepare and submit to the Board a pro-
posal with respect to such grants and allotments, con-
tracts, other financial assistance, and designation of
positions as approved national service positions, as
are necessary or appropriate to carry out this Act;
and
‘‘(B) after receiving and reviewing an approved
proposal under section 192A(g)(2), 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 assist-
ance otherwise authorized under this Act, with nec-
essary adjustments on account of overpayments and
underpayments), and designate such positions as ap-
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proved national service positions as are necessary or
appropriate to carry out this Act;
‘‘(3)(A) prepare and submit to the Board a pro-
posal regarding, the regulations established under sec-
tion 195(a)(4)(B)(i), and such other standards,
policies, procedures, programs, and initiatives as are
necessary or appropriate to carry out this Act; and
‘‘(B) after receiving and reviewing an approved
proposal under section 192A(g)(3)—
‘‘(i) establish such standards, policies, and
procedures as are necessary or appropriate to
carry out this Act; and
‘‘(ii) establish and administer such pro-
grams and initiatives as are necessary or appro-
priate to carry out this Act;
‘‘(4)(A) prepare and submit to the Board a plan
for the evaluation of programs established under this
Act, in accordance with section 179; and
‘‘(B) after receiving an approved proposal under
section 192A(g)(4)—
‘‘(i) establish measurable performance goals
and objectives for such programs, in accordance
with section 179; and
‘‘(ii) provide for periodic evaluation of such
programs to assess the manner and extent to
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which the programs achieve the goals and objec-
tives, in accordance with such section;
‘‘(5) consult with appropriate Federal agencies
in administering the programs and initiatives;
‘‘(6) suspend or terminate payments and posi-
tions described in paragraph (2)(B), in accordance
with section 176;
‘‘(7) prepare and submit to the Board an annual
report, and such interim reports as may be necessary,
describing the major actions of the President with re-
spect to the personnel of the Corporation, and with
respect to such standards, policies, procedures, pro-
grams, and initiatives;
‘‘(8) inform the Board of, and provide an expla-
nation to the Board regarding, any substantial dif-
ferences regarding the implementation of this Act be-
tween—
‘‘(A) the actions of the President; and
‘‘(B)(i) the strategic plan approved by the
Board under section 192A(g)(1);
‘‘(ii) the proposals approved by the Board
under paragraph (2) or (3) of section 192A(g);
or
‘‘(iii) the evaluation plan approved by the
Board under section 192A(g)(4);
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‘‘(9) prepare and submit to the appropriate com-
mittees of Congress an annual report, and such in-
terim 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;
‘‘(B) the manner in which the Corporation
used or disposed of such services, money, and
property; and
‘‘(C) information on the results achieved by
the programs funded under this Act during the
year preceding the year in which the report is
prepared; and
‘‘(10) provide for studies and demonstrations
that evaluate, and prepare and submit to the Board
by June 30, 1995 a report containing recommenda-
tions regarding, issues related to—
‘‘(A) the administration and organization
of programs authorized under the national serv-
ice laws or under Public Law 91–378 (referred
to in this subparagraph as ‘service programs’),
including—
‘‘(i) whether the State and national
priorities designed to meet the unmet
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human, education, environmental, or public
safety needs described in section 122(c)(1)
are being addressed by this Act;
‘‘(ii) the manner in which—
‘‘(I) educational and other out-
comes 
of 
both 
stipended 
and
nonstipended service and service-learn-
ing are defined and measured in such
service programs; and
‘‘(II) such outcomes should be de-
fined and measured in such service
programs;
‘‘(iii) whether stipended service pro-
grams, and service programs providing edu-
cational benefits in return for service,
should focus on economically disadvantaged
individuals or at-risk youth or whether such
programs should include a mix of individ-
uals, including individuals from middle-
and upper-income families;
‘‘(iv) the role and importance of sti-
pends and educational benefits in achieving
desired outcomes in the service programs;
‘‘(v) the potential for cost savings and
coordination of support and oversight serv-
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ices from combining functions performed by
ACTION State offices and State Commis-
sions;
‘‘(vi) the implications of the results
from such studies and demonstrations for
authorized funding levels for the service pro-
grams; and
‘‘(vii) other issues that the Director de-
termines to be relevant to the administra-
tion and organization of the service pro-
grams; and
‘‘(B) the number, potential consolidation,
and future organization of national service or
domestic volunteer service programs that are au-
thorized under Federal law, including VISTA,
service corps assisted under subtitle C and other
programs authorized by this Act, programs ad-
ministered by the Public Health Service, the De-
partment of Defense, or other Federal agencies,
programs regarding teacher corps, and programs
regarding work-study and higher education loan
forgiveness or forbearance programs authorized
by the Higher Education Act of 1965 related to
community service.
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‘‘(c) POWERS.—In addition to the authority conferred
on the President under any other provision of this Act, the
President may—
‘‘(1) establish, alter, consolidate, or discontinue
such organizational units or components within the
Corporation as the President considers necessary or
appropriate, consistent with Federal law, and shall,
to the maximum extent practicable, consolidate such
units or components of the division of the Corporation
that carries out volunteer service programs and the
division of the Corporation that carries out financial
assistance programs as may be appropriate to enable
the two divisions to coordinate common support func-
tions, such as recruiting, public awareness, or train-
ing functions;
‘‘(2) with the approval of the President of the
United States, arrange with and reimburse the heads
of other Federal agencies for the performance of any
of the provisions of this Act;
‘‘(3) with their consent, utilize the services and
facilities of Federal agencies with or without reim-
bursement, and, with the consent of any State, or po-
litical subdivision of a State, accept and utilize the
services and facilities of the agencies of such State or
subdivisions without reimbursement;
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‘‘(4) allocate and expend funds made available
under this Act, including expenditure for construc-
tion, repairs, and capital improvements;
‘‘(5) disseminate, without regard to the provi-
sions of section 3204 of title 39, United States Code,
data and information, in such form as the President
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 President and all legal or equitable rights
accruing to the President in connection with the pay-
ment 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 for rent of buildings and space in buildings
and for repair, alteration, and improvement of build-
ings and space in buildings rented by the President;
‘‘(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;
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‘‘(10) consolidate the reports to Congress required
under this Act, and the report required under section
9106 of title 31, United States Code, into a single re-
port, and submit the report to Congress on an annual
basis; and
‘‘(11) generally perform such functions and take
such steps consistent with the objectives and provi-
sions of this Act, as the President 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, ac-
tivity, or program.
‘‘(2) IN GENERAL.—Except as otherwise prohib-
ited by law or provided in this Act, the President
may delegate any function under this Act, and au-
thorize such successive redelegations of such function
as may be necessary or appropriate. No delegation of
a function by the President under this subsection or
under any other provision of this Act shall relieve
such President of responsibility for the administra-
tion of such function.
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‘‘(3) FUNCTION OF BOARD.—The President may
not delegate a function of the Board without the per-
mission of the Board.
‘‘(e) ACTIONS.—In an action described in subsection
(c)(8)—
‘‘(1) a district court referred to in such sub-
section shall have jurisdiction of such a civil action
without regard to the amount in controversy;
‘‘(2) such an action brought by the President
shall survive notwithstanding any change in the per-
son occupying the office of President or any vacancy
in that office;
‘‘(3) no attachment, injunction, garnishment, or
other similar process, mesne or final, shall be issued
against the President or the Board or property under
the control of the President 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 Cor-
poration 2 Managing Directors, who shall be ap-
pointed by the President of the United States, by and
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with the advice and consent of the Senate, and who
shall report to the President.
‘‘(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) VOLUNTEER
SERVICE
PROGRAMS.—
One of the Managing Directors shall be pri-
marily responsible for the volunteer service pro-
grams carried out by the Corporation.
‘‘(B) INVESTMENT
PROGRAMS.—The other
Managing Director shall be primarily respon-
sible for the financial assistance programs car-
ried out by the Corporation.
‘‘(b) INSPECTOR GENERAL.—
‘‘(1) OFFICE.—There shall be in the Corporation
an Office of the Inspector General.
‘‘(2) APPOINTMENT.—The Office shall be headed
by an Inspector General, appointed in accordance
with the Inspector General Act of 1978.
‘‘(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.
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‘‘(c) CHIEF FINANCIAL OFFICER.—
‘‘(1) OFFICE.—There shall be in the Corporation
a Chief Financial Officer, who shall be appointed by
the President of the United States, by and with the
advice and consent of the Senate.
‘‘(2) COMPENSATION.—The Chief Financial Offi-
cer 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 President regard-
ing financial management matters;
‘‘(B) oversee all financial management ac-
tivities 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 report-
ing and internal controls;
‘‘(D) develop and maintain any joint finan-
cial management systems with the Department
of Education necessary to carry out the pro-
grams of the Corporation; and
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‘‘(E) direct, manage, and provide policy
guidance and oversight of the financial manage-
ment personnel, activities, and operations of the
Corporation.
‘‘SEC. 195. EMPLOYEES, CONSULTANTS, AND OTHER PER-
SONNEL.
‘‘(a) EMPLOYEES.—
‘‘(1) IN GENERAL.—Except as provided in sec-
tion 194(b)(4), it is within the exclusive discretion of
the President to appoint and determine the compensa-
tion of such employees as the President determines to
be necessary to carry out the duties of the Corpora-
tion.
‘‘(2) CIVIL SERVICE PROTECTIONS.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), the provisions of title 5, Unit-
ed States Code, shall apply with respect to the
Corporation and the employees of the Corpora-
tion.
‘‘(B) APPOINTMENT AND COMPENSATION.—
Except as provided in section 194(b)(4), it is
within the exclusive discretion of the President to
appoint and determine the compensation of em-
ployees under this subsection without regard to
the provisions of title 5, United States Code, gov-
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erning 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 (other than the provisions described in
clauses (iii) and (iv) of paragraph (4)(B)).
‘‘(3) APPOINTMENT IN THE COMPETITIVE SERV-
ICE AFTER EMPLOYMENT IN THE CORPORATION.—
‘‘(A) EMPLOYEES WITH NOT LESS THAN 3
YEARS OF EMPLOYMENT.—If an employee, other
than a representative described in subsection (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.
‘‘(B) EMPLOYEES WITH NOT LESS THAN 1
BUT LESS THAN 3 YEARS OF EMPLOYMENT.—If
an employee, other than a representative de-
scribed in subsection (b), is separated from the
Corporation (other than by removal for cause),
and has been continuously employed by the Cor-
poration for a period of not less than 1 year, but
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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.
‘‘(C) DEFINITION.—As used in this para-
graph, the term ‘competitive service’ has the
meaning given the term in section 2102 of title
5, United States Code.
‘‘(4) APPOINTMENT AND COMPENSATION.—
‘‘(A) IN GENERAL.—The Chairperson shall
appoint and determine the compensation of em-
ployees referred to in paragraph (1), in accord-
ance with the appointment and compensation
systems referred to in subparagraph (B).
‘‘(B) CORPORATION APPOINTMENT AND COM-
PENSATION SYSTEMS.—
‘‘(i) ESTABLISHMENT
OF
SYSTEM.—
The President, after reviewing the approved
proposal 
of 
the 
Board 
under 
section
192A(g)(3) and after obtaining the approval
of the Director of the Office of Personnel
Management, shall issue regulations estab-
lishing appointment and compensation sys-
tems for the Corporation.