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‘‘(ii) 
CONTENT
AND
CONSIDER-
ATIONS.—In issuing such regulations, the
President shall—
‘‘(I) establish appropriate ap-
pointment and compensation mecha-
nisms for the representatives described
in subsection (b); and
‘‘(II) take into consideration the
need for flexibility in such a system.
‘‘(iii) APPOINTMENT SYSTEM.—The ap-
pointment system shall require that the ap-
pointment of such an employee be—
‘‘(I) on the basis of the qualifica-
tions of applicants and the require-
ments of the position, in accordance
with the merit system principles set
forth in section 2301(b) of title 5,
United States Code; and
‘‘(II) through a competitive proc-
ess.
‘‘(iv) COMPENSATION SYSTEM.—
‘‘(I) 
IN
GENERAL.—The 
com-
pensation 
system 
shall 
include 
a
scheme for the classification of posi-
tions in the Corporation. The system
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shall require that the compensation of
such an employee be determined based
in part on the job performance of the
employee, and in a manner consistent
with the principles described in section
5301 of title 5, United States Code.
‘‘(II) LIMITATION
ON
EMPLOYEE
COMPENSATION.—The rate of com-
pensation for each employee com-
pensated through the system shall not
exceed the annual rate of basic pay
payable for level IV of the Executive
Schedule under section 5315 of title 5,
United States Code.
‘‘(III) LIMITATION ON COMPENSA-
TION OF REPRESENTATIVE.—The rate
of pay for a representative described in
subsection (b) shall not exceed the max-
imum rate of basic pay payable for
grade GS–13 of the General Schedule
under section 5332 of title 5, United
States Code.
‘‘(5) RETENTION OF CIVIL SERVICE RIGHTS.—
‘‘(A) RETENTION OF COMPETITIVE SERVICE
RIGHTS.—An individual who—
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‘‘(i) was an employee of ACTION or
the Commission on National and Commu-
nity Service who served under a permanent
appointment on the day before the date of
enactment of this subtitle in—
‘‘(I) a position in the competitive
service; or
‘‘(II) a career appointee position
in the Senior Executive Service;
‘‘(ii) is transferred to the Corporation
under section 202(c) or 203(c) of the Na-
tional and Community Service Trust Act of
1993; and
‘‘(iii) accepts a position established
under paragraph (4) in the Corporation,
shall be appointed to a position in the competi-
tive service of the Corporation.
‘‘(B) DURATION OF POSITION IN COMPETI-
TIVE SERVICE.—During the period of employ-
ment of such an employee in a position, the posi-
tion shall be a position in the competitive serv-
ice. After such period of employment, the posi-
tion shall be a position in the excepted service
unless the President appoints an individual to
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such position in accordance with the provisions
described in subsection (a)(2).
‘‘(C) ESTABLISHMENT OF POSITIONS.—With
respect to a position vacancy or a position to be
established in the Corporation, the President—
‘‘(i) shall select the individual to be
appointed to such position in accordance
with the regulations promulgated under
paragraph (4);
‘‘(ii) if the individual to be appointed
to the position is an individual described in
subparagraph (A), shall establish the posi-
tion as a position in the competitive service;
and
‘‘(iii) if the individual to be so ap-
pointed is not an individual described in
subparagraph (A)—
‘‘(I) may establish the position as
a position in the excepted service; and
‘‘(II) in an exceptional case in
which the individual, immediately
prior to accepting the position, served
under a permanent appointment in a
position described in subclause (I) or
(II) of subparagraph (A)(i), may es-
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tablish the position as a position in the
competitive service,
in any case in which an individual described in
subparagraph (A) is an employee of the Corpora-
tion and is eligible to be appointed to such posi-
tion.
‘‘(D) DEFINITIONS.—As used in this para-
graph:
‘‘(i) COMPETITIVE SERVICE.—The term
‘competitive service’ has the meaning given
the term in section 2102 of title 5, United
States Code.
‘‘(ii) EXCEPTED
SERVICE.—The term
‘excepted service’ has the meaning given the
term in section 2103 of title 5, United
States Code.
‘‘(iii) SENIOR EXECUTIVE SERVICE.—
The term ‘Senior Executive Service’ has the
meaning given the term in section 2101a of
title 5, United States Code.
‘‘(b) 
CORPORATION
REPRESENTATIVE
IN
EACH
STATE.—
‘‘(1) DESIGNATION
OF
REPRESENTATIVE.—The
Corporation shall designate 1 employee of the Cor-
poration for each State or group of States to serve as
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the representative of the Corporation in the State or
States and to assist the Corporation in carrying out
the activities described in this Act in the State or
States.
‘‘(2) DUTIES.—The representative designated
under this subsection for a State or group of States
shall serve as the liaison between—
‘‘(A) the Corporation and the State Com-
mission that is established in the State or States;
‘‘(B) the Corporation and any subdivision
of a State, Indian tribe, public or private non-
profit organization, or institution of higher edu-
cation, in the State or States, that is awarded a
grant under section 121 directly from the Cor-
poration; and
‘‘(C) the State Commission and the Cor-
poration employee responsible for volunteer serv-
ice programs in the State, if the employee is not
the representative described in paragraph (1) for
the State.
‘‘(3) MEMBER OF STATE COMMISSION.—The rep-
resentative designated under this subsection for a
State or group of States shall also serve as an ex
officio nonvoting member of the State Commission es-
tablished in the State or States.
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‘‘(c) CONSULTANTS.—The President may procure the
temporary and intermittent services of experts and consult-
ants and compensate the experts and consultants in accord-
ance with section 3109(b) of title 5, United States Code.
‘‘(d) DETAILS OF PERSONNEL.—The head of any Fed-
eral department or agency may detail on a reimbursable
basis, or on a nonreimbursable basis for not to exceed 180
calendar days during any fiscal year, as agreed upon by
the President and the head of the Federal agency, any of
the personnel of that department or agency to the Corpora-
tion to assist the Corporation in carrying out the duties
of the Corporation under this Act. Any detail shall not in-
terrupt or otherwise affect the civil service status or privi-
leges of the Federal employee.
‘‘(e) ADVISORY COMMITTEES.—
‘‘(1) ESTABLISHMENT.—The President, acting
upon the recommendation of the Board, may establish
advisory committees in the Corporation to advise the
Board with respect to national service issues, such as
the type of programs to be established or assisted
under the national service laws, priorities and cri-
teria for such programs, and methods of conducting
outreach for, and evaluation of, such programs.
‘‘(2) COMPOSITION.—Such an advisory commit-
tee shall be composed of members appointed by the
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President, with such qualifications as the President
may specify.
‘‘(3) EXPENSES.—Members of such an advisory
committee may be allowed travel expenses as described
in section 192A(d).
‘‘(4) STAFF.—The President is authorized to ap-
point and fix the compensation of such staff as the
President determines to be necessary to carry out the
functions of the advisory committee, in accordance
with subsection (a)(2), and without regard to the se-
lection and compensation systems described in sub-
section (a)(4)(B). Such compensation shall not exceed
the rate described in subsection (a)(4)(B)(iv)(III).
‘‘SEC. 196. ADMINISTRATION.
‘‘(a) DONATIONS.—
‘‘(1) SERVICES.—
‘‘(A) VOLUNTEERS.—Notwithstanding sec-
tion 1342 of title 31, United States Code, the
Corporation may solicit and accept the vol-
untary services of individuals to assist the Cor-
poration in carrying out the duties of the Cor-
poration under this Act, and may provide to
such individuals the travel expenses described in
section 192A(d).
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‘‘(B) LIMITATION.—Such a volunteer shall
not be considered to be a Federal employee and
shall not be subject to the provisions of law relat-
ing to Federal employment, including those re-
lating to hours of work, rates of compensation,
leave, unemployment compensation, and Federal
employee benefits, except that—
‘‘(i) for the purposes of the tort claims
provisions of chapter 171 of title 28, United
States Code, a volunteer under this subtitle
shall be considered to be a Federal em-
ployee;
‘‘(ii) for the purposes of subchapter I of
chapter 81 of title 5, United States Code,
relating to compensation to Federal employ-
ees for work injuries, volunteers under this
subtitle shall be considered to be employees,
as defined in section 8101(1)(B) of title 5,
United States Code, and the provisions of
such subchapter shall apply; and
‘‘(iii) for purposes of the provisions of
chapter 11 of part I of title 18, United
States Code, such a volunteer (to whom such
provisions would not otherwise apply except
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for this subsection) shall be a special Gov-
ernment employee.
‘‘(C) INHERENTLY
GOVERNMENTAL
FUNC-
TION.—
‘‘(i) IN GENERAL.—Such a volunteer
shall not carry out an inherently govern-
mental function.
‘‘(ii) REGULATIONS.—The President
shall promulgate regulations to carry out
this subparagraph.
‘‘(iii) 
INHERENTLY
GOVERNMENTAL
FUNCTION.—As used in this subparagraph,
the term ‘inherently governmental function’
means any activity that is so intimately re-
lated to the public interest as to mandate
performance by an officer or employee of the
Federal Government, including an activity
that requires either the exercise of discretion
in applying the authority of the Govern-
ment or the use of value judgment in mak-
ing a decision for the Government.
‘‘(2) PROPERTY.—
‘‘(A) IN GENERAL.—The Corporation may
solicit, accept, hold, administer, use, and dispose
of, in furtherance of the purposes of this Act, do-
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nations of any money or property, real, per-
sonal, or mixed, tangible or intangible, received
by gift, devise, bequest, or otherwise. Donations
accepted under this subparagraph shall be used
as nearly as possible in accordance with the
terms, if any, of such donation.
‘‘(B) TAX.—For purposes of Federal in-
come, estate, and gift taxes, money or property
accepted under subparagraph (A) shall be con-
sidered to be a gift, devise, or bequest to, or for
the use of, the United States.
‘‘(C) RULES.—The President shall establish
written rules to ensure that the solicitation, ac-
ceptance, holding, administration, and use of
property described in subparagraph (A)—
‘‘(i) will not reflect unfavorably upon
the ability of the Corporation, or of any of-
ficer or employee of the Corporation, to
carry out the responsibilities or official du-
ties of the Corporation in a fair and objec-
tive manner; and
‘‘(ii) will not compromise the integrity
of the programs of the Corporation or any
official or employee of the Corporation in-
volved in such programs.
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‘‘(D) DISPOSITION.—Upon completion of
the use by the Corporation of any property ac-
cepted pursuant to subparagraph (A) (other than
money or monetary proceeds from sales of prop-
erty so accepted), such completion shall be re-
ported to the General Services Administration
and such property shall be disposed of in accord-
ance with title II of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C.
481 et seq.).
‘‘(3) VOLUNTEER.—As used in this subsection,
the term ‘volunteer’ does not include a participant.
‘‘(b) CONTRACTS.—Subject to the Federal Property
and Administrative Services Act of 1949, the Corporation
may enter into contracts, and cooperative and interagency
agreements, with Federal and State agencies, private firms,
institutions, and individuals to conduct activities necessary
to assist the Corporation in carrying out the duties of the
Corporation under this Act.
‘‘(c) OFFICE OF MANAGEMENT AND BUDGET.—Appro-
priate circulars of the Office of Management and Budget
shall apply to the Corporation.’’.
(b) DOMESTIC VOLUNTEER SERVICE ACT OF 1973.—
Section 401 of the Domestic Volunteer Service Act of 1973
(42 U.S.C. 5041) is amended by inserting after the second
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sentence the following: ‘‘The Director shall report directly
to the President of the Corporation for National and Com-
munity Service.’’.
(c) TRANSFER
OF FUNCTIONS
OF COMMISSION
ON
NATIONAL AND COMMUNITY SERVICE.—
(1) DEFINITIONS.—For purposes of this sub-
section, unless otherwise provided or indicated by the
context, each term specified in section 203(c)(1) shall
have the meaning given the term in such section.
(2) TRANSFER OF FUNCTIONS.—There are trans-
ferred to the Corporation the functions that the Board
of Directors or Executive Director of the Commission
on National and Community Service exercised before
the effective date of this subsection (including all re-
lated functions of any officer or employee of the Com-
mission).
(3) APPLICATION.—The provisions of paragraphs
(3) through (10) of section 203(c) shall apply with re-
spect to the transfer described in paragraph (2), ex-
cept that—
(A) for purposes of such application, ref-
erences to the term ‘‘ACTION Agency’’ shall be
deemed to be references to the Commission on
National and Community Service; and
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(B) paragraph (10) of such section shall not
preclude the transfer of the members of the Board
of Directors of the Commission to the Corpora-
tion if, on the effective date of this subsection, the
Board of Directors of the Corporation has not
been confirmed.
(d) CONTINUING PERFORMANCE OF CERTAIN FUNC-
TIONS.—The individuals who, on the day before the date
of enactment of this Act, are performing any of the func-
tions required by section 190 of the National and Commu-
nity Service Act of 1990 (42 U.S.C. 12651), as in effect
on such date, to be performed by the members of the Board
of Directors of the Commission on National and Commu-
nity Service may, subject to section 193A of the National
and Community Service Act of 1990, as added by subsection
(a) of this section, continue to perform such functions until
the date on the Board of Directors of the Corporation for
National and Community Service conducts the first meeting
of the Board. The service of such individuals as members
of the Board of Directors of such Commission, and the
employment of such individuals as special government
employees, shall terminate on such date.
(e) JOB SEARCH ASSISTANCE.—The President of the
Corporation shall establish a program to provide, or shall
seek to enter into a memorandum of understanding with
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the Director of the Office of Personnel Management to pro-
vide, job search and related assistance to employees of the
ACTION agency who are not transferred to the Corporation
for National and Community Service under section 203(c).
The President of the Corporation shall make available funds
appropriated under section 501(a)(4) of the National and
Community Service Act of 1990 in order to provide such
assistance.
(f) GOVERNMENT CORPORATION CONTROL.—
(1) WHOLLY
OWNED
GOVERNMENT
CORPORA-
TION.—Section 9101(3) of title 31, United States
Code, is amended by inserting after subparagraph
(D) the following:
‘‘(E) the Corporation for National and
Community Service.’’.
(2) AUDITS.—Section 9105(a)(1) of title 31,
United States Code, is amended by inserting ‘‘, or
under other Federal law,’’ before ‘‘or by an independ-
ent’’.
(g) DISPOSAL OF PROPERTY.—Section 203(k) of the
Federal Property and Administrative Services Act of 1949
(40 U.S.C. 484(k)) is amended by adding at the end the
following:
‘‘(5)(A) Under such regulations as the Administrator
may prescribe, the Administrator is authorized, in the dis-
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cretion of the Administrator, to assign to the President of
the Corporation for National and Community Service for
disposal such surplus property as is recommended by the
President as being needed for national service activities.
‘‘(B) Subject to the disapproval of the Administrator,
within 30 days after notice to the Administrator by the
President of the Corporation for National and Community
Service of a proposed transfer of property for such activi-
ties, the President, through such officers or employees of the
Corporation as the President may designate, may sell, lease,
or donate such property to any entity that receives finan-
cial assistance under the National and Community Service
Act of 1990 for such activities.
‘‘(C) In fixing the sale or lease value of such property,
the President of the Corporation for National and Commu-
nity Service shall comply with the requirements of para-
graph (1)(C).’’.
(h) INSPECTOR GENERAL.—
(1) SPECIAL PROVISIONS IN INSPECTOR GENERAL
ACT OF 1978.—The Inspector General Act of 1978 (5
U.S.C. App.) is amended by redesignating sections 8E
and 8F as sections 8F and 8G, respectively, and in-
serting after section 8D the following new section: