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FOIA Number: 2013-0661-F FOIA MARKER This is not a textual record. This is used as an administrative marker by the William J. Clinton Presidential Library Staff. Collection/Record Group: Clinton Presidential Records Subgroup/Office of Origin: National Service Series/Staff Member: Shirley Sagawa Subseries: OA/ID Number: 1290 FolderID: Folder Title: Part 3, Subtitle B [1] Stack: Row: Section: Shelf: Position: S 66 2 6 1 A BILL To amend the National and Community Service Act of 1990 to establish a Corporation for National Service, enhance opportunities for national service, and provide national service educational awards to persons participating in such service, and for other purposes. 1 Be it enacted by the Senate and House of Representa- 2 tives of the United States of America in Congress assembled, 3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 4 (a) SHORT TITLE.-This Act may be cited as the 5 "National Service Trust Act of 1993". 6 (b) TABLE OF CONTENTS.-The table of contents is 7 as follows: Sec. 1. Short title; table of contents. Sec. 2. Findings and purpose. TITLE I-PROGRAMS AND RELATED PROVISIONS Subtitle A-Programs Sec. 101. Federal investment in support of national service. Sec. 102. National Service Trust and provision of national service educational awards. Sec. 103. School-based and community-based service-learning programs. Sec. 104. Quality and innovation activities. Subtitle B-Related Provisions Sec. 111. Definitions. Sec. 112. Authority to make State grants. Sec. 113. Family and medical leave. Sec. 114. Reports. Sec. 115. Nondiscrimination. Sec. 116. Notice, hearing, and grievance procedures. Sec. 117. Nondisplacement. Sec. 118. Evaluation. Sec. 119. Engagement of participants. Sec. 120. Contingent extension. 2 Sec. 121. Repeals. TITLE II-ORGANIZATION Sec. 201. State Commissions on National Service. Sec. 202. Interim authorities of the Corporation for National Service and AC- TION Agency. Sec. 203. Final authorities of the Corporation for National Service. TITLE III-REAUTHORIZATION Subtitle A-National and Community Service Act of 1990 Sec. 301. Authorization of appropriations. Subtitle B-Domestic Volunteer Service Act of 1973 Sec. 311. Short title; references. CHAPTER 1-VISTA AND OTHER ANTI-POVERTY PROGRAMS Sec. 321. Purpose of the VISTA program. Sec. 322. Selection and assignment of VISTA volunteers. Sec. 323. Terms and periods of service. Sec. 324. Support for VISTA volunteers. Sec. 325. Participation of younger and older persons. Sec. 326. Literacy activities. Sec. 327. Applications for assistance. Sec. 328. Repeal of authority for student community service programs. Sec. 329. University year for VISTA. Sec. 330. Authority to establish and operate special volunteer and demonstra- tion programs. Sec. 331. Technical and financial assistance. Sec. 332. Elimination of separate authority for drug abuse programs. CHAPTER 2-NATIONAL SENIOR VOLUNTEER CORPS Sec. 341. National Senior Volunteer Corps. Sec. 342. The Retired and Senior Volunteer Program. Sec. 343. Operation of the Retired and Senior Volunteer Program. Sec. 344. Services under the Foster Grandparent Program. Sec. 345. Stipends for low-income volunteers. Sec. 346. Participation of non-low-income persons under parts B and C. Sec. 347. Conditions of grants and contracts. Sec. 348. Evaluation of the Senior Companion Program. Sec. 349. Agreements with other Federal agencies. Sec. 350. Programs of national significance. Sec. 351. Adjustments to Federal financial assistance. Sec. 352. Demonstration programs. CHAPTER 3-ADMINISTRATION Sec. 361. Purpose of agency. Sec. 362. Authority of the Director. Sec. 363. Compensation for volunteers. Sec. 364. Repeal of report. Sec. 365. Application of Federal law. Sec. 366. Evaluation of programs. 3 Sec. 367. Nondiscrimination provisions. Sec. 368. Elimination of separate requirements for setting regulations. Sec. 369. Clarification of role of Inspector General. Sec. 370. Copyright protection. Sec. 371. Center for research and training. Sec. 372. Deposit requirement credit for service as a volunteer. CHAPTER 4-AUTHORIZATION OF APPROPRIATIONS AND OTHER AMENDMENTS Sec. 381. Authorization of appropriations for title I. Sec. 382. Authorization of appropriations for title II. Sec. 383. Authorization of appropriations for title IV. Sec. 384. Conforming amendments; compensation for VISTA FECA claimants. Sec. 385. Repeal of authority. CHAPTER 5-GENERAL PROVISIONS Sec. 391. Technical and conforming amendments. Sec. 392. Effective date. TITLE IV-TECHNICAL AND CONFORMING AMENDMENTS Sec. 401. Definition of Director. Sec. 402. References to ACTION and the ACTION Agency. Sec. 403. Definitions. Sec. 404. References to the Commission on National and Community Service. Sec. 405. References to Directors of the Commission on National and Commu- nity Service. Sec. 406. Effective date. 1 SEC. 2. FINDINGS AND PURPOSE. 2 (a) IN GENERAL.-Section 2 of the National and 3 Community Service Act of 1990 (42 U.S.C. 12501) is 4 amended to read as follows: 5 "SEC. 2. FINDINGS AND PURPOSE. 6 "(a) FINDINGS.-The Congress finds the following: 7 "(1) Throughout the United States, there are 8 pressing unmet human, educational, environmental, 9 and public safety needs. 10 "(2) Americans desire to affirm common re- 11 sponsibilities and shared values that transcend race, 12 religion, or region. 4 1 "(3) The rising costs of post-secondary edu- 2 cation are putting higher education out of reach for 3 an increasing number of citizens. 4 "(4) Americans of all ages can improve their 5 communities and become better citizens through 6 service to the United States. 7 "(5) Nonprofit organizations, local govern- 8 ments, States, and the Federal Government are al- 9 ready supporting a wide variety of national service 10 programs that deliver needed services in a cost-effec- 11 tive manner. 12 "(b) PURPOSES.-It is the purpose of this Act to- 13 "(1) meet the unmet human, educational, envi- 14 ronmental, and public safety needs of the United 15 States, without displacing existing workers; 16 "(2) renew the ethic of civic responsibility and 17 the spirit of community throughout the United 18 States; 19 "(3) expand educational opportunity by reward- 20 ing individuals who participate in national service 21 with an increased ability to pursue higher education 22 or job training; 23 "(4) encourage citizens of the United States, 24 regardless of age or income, to engage in full-time 25 or part-time national service; 5 1 "(5) reinvent government to eliminate duplica- 2 tion, support locally established initiatives, require 3 measurable goals for performance, and offer flexibil- 4 ity in meeting those goals; 5 "(6) build on the existing organizational service 6 infrastructure of Federal, State, and local programs 7 and agencies to expand full-time and part-time serv- 8 ice opportunities for all citizens; and 9 "(7) provide tangible benefits to the commu- 10 nities in which national service is performed.". 11 (b) TABLE OF CONTENTS.-Section 1(b) of the Na- 12 tional and Community Service Act of 1990 (Public Law 13 101-610; 104 Stat. 3127) is amended by striking the item 14 relating to section 2 and inserting the following new item: "Sec. 2. Findings and purpose.". 15 TITLE I-PROGRAMS AND 16 RELATED PROVISIONS 17 Subtitle A-Programs 18 SEC. 101. FEDERAL INVESTMENT IN SUPPORT OF NA- 19 TIONAL SERVICE. 20 (a) ASSISTANCE PROGRAM AUTHORIZED.-Subtitle C 21 of title I of the National and Community Service Act of 22 1990 (42 U.S.C. 12541 et seq.) is amended to read as 23 follows: 6 1 "Subtitle C-National Service Trust 2 Program 3 "PART I-INVESTMENT IN NATIONAL SERVICE 4 "SEC. 121. AUTHORITY TO PROVIDE ASSISTANCE AND AP- 5 PROVED NATIONAL SERVICE POSITIONS. 6 "(a) PROVISION OF ASSISTANCE.-The Corporation 7 for National Service may make grants to States, subdivi- 8 sions of States, Indian tribes, public and private not-for- 9 profit organizations, and institutions of higher education 10 for the purpose of assisting the recipients of the grants- 11 "(1) to carry out full- or part-time national 12 service programs, including summer programs, de- 13 scribed in section 122(a); and 14 "(2) to make grants in support of other na- 15 tional service programs described in section 122(a) 16 that are carried out by other entities. 17 "(b) AGREEMENTS WITH FEDERAL AGENCIES.-The 18 Corporation may enter into a contract or cooperative 19 agreement with another Federal agency to support a na- 20 tional service program carried out by the agency. The sup- 21 port provided by the Corporation pursuant to the contract 22 or cooperative agreement may include the transfer to the 23 Federal agency of funds available to the Corporation 24 under this subtitle. A Federal agency receiving assistance 25 under this subsection shall not be required to satisfy the 7 1 matching funds requirements specified in subsection (e). 2 However, the supplementation requirements specified in 3 section 173 shall apply with respect to the Federal na- 4 tional service programs supported with such assistance. 5 "(c) PROVISION OF APPROVED NATIONAL SERVICE 6 POSITIONS.-As part of the provision of assistance under 7 subsections (a) and (b), the Corporation shall- 8 "(1) approve the provision of national service 9 educational awards described in subtitle D for the 10 participants who serve in national service programs 11 carried out using such assistance; and 12 "(2) deposit in the National Service Trust es- 13 tablished in section 145(a) an amount equal to the 14 product of- 15 "(A) the value of a national service edu- 16 cational award under section 147; and 17 "(B) the total number of approved national 18 service positions to be provided. 19 "(d) FIVE PERCENT LIMITATION ON ADMINISTRA- 20 TIVE COSTS.- 21 "(1) LIMITATION.-Not more than 5 percent of 22 the amount of assistance provided to the original re- 23 cipient of a grant or transfer of assistance under 24 subsection (a) or (b) for a fiscal year may be used 25 to pay for administrative costs incurred by- 8 1 "(A) the recipient of the assistance; and 2 "(B) national service programs carried out 3 or supported with the assistance. 4 "(2) RULES ON USE.-The Corporation may by 5 rule prescribe the manner and extent to which- 6 "(A) assistance provided under subsection 7 (a) or (b) may be used to cover administrative 8 costs; and 9 "(B) that portion of the assistance avail- 10 able to cover administrative costs should be dis- 11 tributed between- 12 "(i) the original recipient of the grant 13 or transfer of assistance under such sub- 14 section; and 15 "(ii) national service programs carried 16 out or supported with the assistance. 17 "(e) MATCHING FUNDS REQUIREMENTS.- 18 "(1) REQUIREMENTS.-Excpt as provided in 19 section 140, the Federal share of the cost of carry- 20 ing out a national service program that receives the 21 assistance under subsection (a), whether the assist- 22 ance is provided directly or as a subgrant from the 23 original recipient of the assistance, may not exceed 24 75 percent of such cost. 9 1 "(2) CALCULATION.-In providing for the re- 2 maining share of the cost of carrying out a national 3 service program, the program- 4 "(A) shall provide for such share through 5 a payment in cash or in kind, fairly evaluated, 6 including facilities, equipment, or services; and 7 "(B) may provide for such share through 8 State sources, local sources, or other Federal 9 sources (other than the use of funds made 10 available under the national service laws). 11 "(3) WAIVER.-The Corporation may waive in 12 whole or in part the requirements of paragraph (1) 13 with respect to a national service program in any fis- 14 cal year if the Corporation determines that such a 15 waiver would be equitable due to a lack of available 16 financial resources at the local level. 17 "SEC. 122. TYPES OF NATIONAL SERVICE PROGRAMS ELIGI- 18 BLE FOR PROGRAM ASSISTANCE. 19 "(a) ELIGIBLE NATIONAL SERVICE PROGRAMS.- 20 The recipient of a grant under section 121(a) and each 21 Federal agency receiving assistance under section 121(b) 22 shall use the assistance, directly or through subgrants to 23 other entities, to carry out full- or part-time national serv- 24 ice programs, including summer programs, that address 25 unmet human, educational, environmental, or public safe- 10 1 ty needs. Subject to subsection (b)(1), these national serv- 2 ice programs may include the following types of national 3 service programs: 4 "(1) A community corps program that meets 5 unmet human, educational, environmental, or public 6 safety needs and promotes greater community unity 7 through the use of organized teams of participants 8 of varied social and economic backgrounds, skill lev- 9 els, physical capabilities, ages, ethnic backgrounds, 10 or genders. 11 "(2) A youth corps program, such as a con- 12 servation corps or youth service corps (including a 13 conservation corps or youth service corps that per- 14 forms service on Federal or other public lands or on 15 Indian lands), that- 16 "(A) undertakes meaningful full-time serv- 17 ice projects with visible benefits to a commu- 18 nity, including natural resource, urban renova- 19 tion, or human services projects; 20 "(B) includes as participants youths and 21 young adults between the ages of 16 and 25, in- 22 clusive, including out-of-school youths and other 23 disadvantaged youths who are between those 24 ages; and 11 1 "(C) provides those participants who are 2 youths and young adults with- 3 "(i) crew-based, highly structured, 4 and adult-supervised work experience, life 5 skills, education, career guidance and 6 counseling, employment training, and sup- 7 port services; and 8 "(ii) the opportunity to develop citi- 9 zenship values and skills through service to 10 their community and the United States. 11 "(3) A program that provides specialized train- 12 ing to individuals in service-learning and places the 13 individuals after such training in positions, including 14 positions as service-learning coordinators, to facili- 15 tate service-learning in programs eligible for funding 16 under part I subtitle B. 17 "(4) A service program that is targeted at spe- 18 cific unmet human, educational, environmental, or 19 public safety needs and that- 20 "(A) recruits individuals with special skills 21 or provides specialized preservice training to en- 22 able participants to be placed individually or in 23 teams in positions in which the participants can 24 meet such unmet needs; and 12 1 "(B) brings participants together for addi- 2 tional training and other activities designed to 3 foster civic responsibility, increase the skills of 4 participants, and improve the quality of the 5 service provided. 6 "(5) An individualized placement program that 7 includes regular group activities, such as leadership 8 training and special service projects. 9 "(6) A campus-based program that is designed 10 to provide substantial service in a community during 11 the school term and during summer or other vaca- 12 tion periods through the use of- 13 "(A) students who are attending an insti- 14 tution of higher education, including students 15 supported by work-study funds under part C of 16 title IV of the Higher Education Act of 1965 17 (42 U.S.C. 2751 et seq.); 18 "(B) teams composed of such students; or 19 "(C) teams composed of a combination of 20 such students and community residents. 21 "(7) A preprofessional training program in 22 which students enrolled in an institution of higher 23 education- 13 1 "(A) receive training in specified fields, 2 which may include classes containing service- 3 learning; 4 "(B) perform service related to such train- 5 ing outside the classroom during the school 6 term and during summer or other vacation peri- 7 ods; and 8 "(C) agree to provide service upon gradua- 9 tion to meet unmet human, educational, envi- 10 ronmental, or public safety needs related to 11 such training. 12 "(8) A professional corps program that recruits 13 and places qualified participants in positions- 14 "(A) as teachers, nurses, police officers, 15 early childhood development staff, or other pro- 16 fessionals providing service to meet educational, 17 human, environmental, or public safety needs in 18 communities with an inadequate number of 19 such professionals; 20 "(B) that may include a salary in excess of 21 the maximum living allowance authorized in 22 subsection (a)(3) of section 140, as provided in 23 subsection (c) of such section; and 24 "(C) that are sponsored by public or pri- 25 vate not-for-profit employers who agree to pay 14 1 100 percent of the salaries and benefits (other 2 than any national service educational award 3 under subtitle D) of the participants. 4 "(9) A program in which economically dis- 5 advantaged individuals who are between the ages of 6 16 and 24 years of age, inclusive, are provided with 7 opportunities to perform service that, while enabling 8 such individuals to obtain the education and employ- 9 ment skills necessary to achieve economic self-suffi- 10 ciency, will help their communities meet- 11 "(A) the housing needs of low-income fam- 12 ilies and the homeless; and 13 "(B) the need for community facilities in 14 low-income areas. 15 "(10) A national service entrepreneur program 16 that identifies, recruits, and trains gifted young 17 adults of all backgrounds and assists them in de- 18 signing solutions to community problems. 19 "(11) An intergenerational program that com- 20 bines students, out-of-school youths, and older 21 adults as participants to provide needed community 22 services. 23 "(12) Such other national service programs ad- 24 dressing unmet human, educational, environmental, 15 1 or public safety needs as the Corporation may des- 2 ignate. 3 "(b) QUALIFICATION CRITERIA TO DETERMINE ELI- 4 GIBILITY.- 5 "(1) ESTABLISHMENT BY CORPORATION.-The 6 Corporation shall establish qualification criteria for 7 different types of national service programs for the 8 purpose of determining whether a particular national 9 service program should be considered to be a na- 10 tional service program eligible to receive assistance 11 or approved national service positions under this 12 subtitle. 13 "(2) CONSULTATION.-In establishing qualifica- 14 tion criteria under paragraph (1), the Corporation 15 shall consult with organizations and individuals who 16 are experts regarding national service or regarding 17 the delivery of human, educational, environmental, 18 or public safety services to communities or persons. 19 "(3) APPLICATION TO SUBGRANTS.-The quali- 20 fication criteria established by the Corporation under 21 paragraph (1) shall also be used by each recipient of 22 assistance under section 121(a) that uses any por- 23 tion of the assistance to conduct a grant program to 24 support other national service programs. 25 "(c) NATIONAL SERVICE PRIORITIES.- 16 1 "(1) ESTABLISHMENT BY CORPORATION.-In 2 order to concentrate national efforts on meeting cer- 3 tain unmet human, educational, environmental, or 4 public safety needs and to achieve the other pur- 5 poses of this Act, the Corporation may establish, 6 and periodically alter, priorities regarding the types 7 of national service programs to be assisted under 8 section 121 and the purposes for which such assist- 9 ance may be used. 10 "(2) NOTICE TO APPLICANTS.-The Corpora- 11 tion shall provide advance notice to potential appli- 12 cants of any national service priorities to be in effect 13 under this subsection for a fiscal year. The notice 14 shall specifically include— 15 "(A) a description of any alteration made 16 in the priorities since the previous notice; and 17 "(B) a description of the national service 18 programs that are designated by the Corpora- 19 tion under section 133(d)(2) as eligible for pri- 20 ority consideration in the next competitive dis- 21 tribution of assistance under section 121(a). 22 "(3) APPLICATION TO SUBGRANTS.-Any na- 23 tional service priorities established by the Corpora- 24 tion under this subsection shall also be used by each 25 recipient of funds under section 121(a) that uses 17 1 any portion of the assistance to conduct a grant pro- 2 gram to support other national service programs. 3 "SEC. 123. TYPES OF NATIONAL SERVICE POSITIONS ELIGI- 4 BLE FOR APPROVAL FOR NATIONAL SERVICE 5 EDUCATIONAL AWARDS. 6 "The Corporation may approve of any of the follow- 7 ing service positions as an approved national service posi- 8 tion that includes the national service educational award 9 described in subtitle D as one of the benefits to be pro- 10 vided for successful service in the position: 11 "(1) A position for a participant in a national 12 service program described in section 122(a) that re- 13 ceives assistance under subsection (a) or (b) of sec- 14 tion 121. 15 "(2) A position for a participant in a program 16 that- 17 "(A) is carried out by a State, a subdivi- 18 sion of a State, an Indian tribe, a public or pri- 19 vate not-for-profit organization, an institution 20 of higher education, or a Federal agency; and 21 "(B) would be eligible to receive assistance 22 under section 121(a), based on criteria estab- 23 lished by the Corporation, but has not applied 24 for such assistance. 18 1 "(3) A position involving service as a VISTA 2 volunteer under title I of the Domestic Volunteer 3 Service Act of 1973 (42 U.S.C. 4951 et seq.). 4 "(4) A position facilitating service-learning in a 5 program described in section 122(a)(3) that is eligi- 6 ble for assistance under part I of subtitle B. 7 "(5) A position for a participant in the Civilian 8 Community Corps under subtitle E. 9 "(6) A position involving service as a crew lead- 10 er in a youth corps program or a similar position 11 supporting a national service program that receives 12 an approved national service position. 13 "(7) Such other national service positions as 14 the Corporation considers to be appropriate. 15 "SEC. 124. TYPES OF PROGRAM ASSISTANCE. 16 "(a) PLANNING ASSISTANCE.-The Corporation may 17 provide assistance under section 121 to a qualified appli- 18 cant that submits an application under section 130 for the 19 planning of a national service program. Assistance pro- 20 vided in accordance with this subsection may cover a pe- 21 riod of not more than 1 year. 22 "(b) OPERATIONAL ASSISTANCE.-The Corporation 23 may provide assistance under section 121 to a qualified 24 applicant that submits an application under section 130 25 for the establishment, operation, or expansion of a na- 19 1 tional service program. Assistance provided in accordance 2 with this subsection may cover a period of not more than 3 3 years, but may be renewed by the Corporation upon con- 4 sideration of a new application under section 130. 5 "(c) REPLICATION ASSISTANCE.-The Corporation 6 may provide assistance under section 121 to a qualified 7 applicant that submits an application under section 130 8 for the expansion of a proven national service program to 9 another geographical location. Assistance provided in ac- 10 cordance with this subsection may cover a period of not 11 more than 3 years, but may be renewed by the Corpora- 12 tion upon consideration of a new application under section 13 130. 14 "(d) APPLICATION TO SUBGRANTS.-The require- 15 ments of this section shall apply to any State or other 16 applicant receiving assistance under section 121 that pro- 17 poses to conduct a grant program using the assistance to 18 support other national service programs. 19 "SEC. 125. TRAINING AND TECHNICAL ASSISTANCE. 20 "(a) TRAINING PROGRAMS.-The Corporation may 21 conduct, directly or by grant or contract, appropriate 22 training programs regarding national service in order to- 23 "(1) improve the ability of national service pro- 24 grams assisted under section 121 to meet human, 20 1 educational, environmental, or public safety needs in 2 communities- 3 "(A) where services are needed most; and 4 "(B) where programs do not currently 5 exist or are currently too limited to meet com- 6 munity needs; 7 "(2) promote leadership development in such 8 programs; 9 "(3) improve the instructional and pro- 10 grammatic quality of such programs to build an 11 ethic of civic responsibility; 12 "(4) develop the management and budgetary 13 skills of program operators; and 14 "(5) provide for or improve the training pro- 15 vided to the participants in such programs. 16 "(b) TECHNICAL ASSISTANCE.-The Corporation 17 may make appropriate technical assistance available to 18 States, labor organizations, organizations operated by 19 young adults, and other entities described in section 121 20 that desire- 21 "(1) to develop national service programs; or 22 "(2) to apply for assistance under such section or 23 under a grant program conducted using assistance pro- 24 vided under such section. 21 1 "SEC. 126. OTHER SPECIAL ASSISTANCE. 2 "(a) SUPPORT FOR STATE COMMISSIONS.- 3 "(1) ASSISTANCE AUTHORIZED.-The Corpora- 4 tion may make assistance available to assist a State 5 to establish or operate the State Commission on Na- 6 tional Service required to be established by the State 7 under section 178. 8 "(2) AMOUNT OF ASSISTANCE.-The amount of 9 assistance that may be provided to a State Commis- 10 sion under this subsection, together with other Fed- 11 eral funds available to establish or operate the State 12 Commission, may not exceed— 13 "(A) 85 percent of the total cost to estab- 14 lish or operate the State Commission for the 15 first year for which the State Commission re- 16 ceives assistance under this subsection; and 17 "(B) such smaller percentage of such cost 18 as the Corporation may establish for the sec- 19 ond, third, and fourth years of such assistance 20 in order to ensure that the Federal share does 21 not exceed 50 percent of such costs for the fifth 22 year, and any subsequent year, for which the 23 State Commission receives assistance under this 24 subsection. 25 "(b) DISASTER SERVICE.-The Corporation may un- 26 dertake activities to involve youth corps programs de- 22 1 scribed in section 122(a)(2) and other programs that re- 2 ceive assistance under the national service laws in disaster 3 relief efforts. 4 "(c) CHALLENGE GRANTS FOR NATIONAL SERVICE 5 PROGRAMS.- 6 "(1) ASSISTANCE AUTHORIZED.-The Corpora- 7 tion may make challenge grants under this sub- 8 section to a national service program that receives 9 assistance under section 121. The Corporation shall 10 develop criteria for the selection of challenge grant 11 recipients so as to make the grants widely available 12 to a variety of high-quality national service pro- 13 grams. 14 "(2) AMOUNT OF ASSISTANCE.-A challenge 15 grant under this subsection may provide not more 16 than $1 of assistance under this subsection for each 17 $1 in cash raised by the national service program 18 from private sources in excess of amounts required 19 to be provided by the program to satisfy matching 20 funds requirements under section 121(e). The Cor- 21 poration shall establish a ceiling on the amount of 22 assistance that may be provided to a national service 23 program under this subsection. 23 1 "PART II-APPLICATION AND APPROVAL 2 PROCESS 3 "SEC. 129. PROVISION OF ASSISTANCE AND APPROVED NA- 4 TIONAL SERVICE POSITIONS BY COMPETI- 5 TIVE AND OTHER MEANS. 6 "(a) ALLOTMENTS OF ASSISTANCE AND APPROVED 7 POSITIONS TO STATES AND INDIAN TRIBES.- 8 "(1) 33½ PERCENT ALLOTMENT OF ASSIST- 9 ANCE.-Of the funds allocated by the Corporation 10 for provision of assistance under subsections (a) and 11 (b) of section 121 for a fiscal year, the Corporation 12 shall make a grant under section 121(a) (and a cor- 13 responding allotment of approved national service 14 positions) to each of the several States, the District 15 of Columbia, and the Commonwealth of Puerto Rico 16 that has an application approved by the Corporation 17 under section 133. The amount allotted as a grant 18 to each such State under this paragraph for a fiscal 19 year shall be equal to the amount that bears the 20 same ratio to 33½ percent of the allocated funds for 21 that fiscal year as the population of the State bears 22 to the total population of the several States, the Dis- 23 trict of Columbia, and the Commonwealth of Puerto 24 Rico. 25 "(2) ONE PERCENT ALLOTMENT OF ASSIST- 26 ANCE.-Of the funds allocated by the Corporation 24 1 for provision of assistance under subsections (a) and 2 (b) of section 121 for a fiscal year, the Corporation 3 shall reserve 1 percent of the allocated funds for 4 grants under section 121(a) to Indian tribes, the 5 Virgin Islands, Guam, American Samoa, and the 6 Commonwealth of the Northern Mariana Islands, to 7 be allotted by the Corporation on a competitive basis 8 in accordance with their respective needs. Palau 9 shall also be eligible for a grant under this para- 10 graph from the 1 percent allotment until such time 11 as the Compact of Free Association with Palau is 12 ratified. 13 "(3) EFFECT OF FAILURE TO APPLY.-If a 14 State or Indian tribe fails to apply for, or fails to 15 give notice to the Corporation of its intent to apply 16 for, an allotment under this subsection, the Corpora- 17 tion shall use the amount that would have been al- 18 lotted under this subsection to the State or Indian 19 tribe— 20 "(A) to make grants (and provide ap- 21 proved national service positions in connection 22 with such grants) to other eligible entities 23 under section 121 that propose to carry out na- 24 tional service programs in the State or on be- 25 half of the Indian tribe; and 25 1 "(B) after making grants under paragraph 2 (1), to make a reallotment to other States and 3 Indian tribes with approved applications under 4 section 130. 5 "(b) RESERVATION OF APPROVED POSITIONS.- 6 "(1) NUMBER RESERVED.-Except as provided 7 in paragraph (2), the Corporation shall ensure that 8 each individual selected during a fiscal year for as- 9 signment as a VISTA volunteer under title I of the 10 Domestic Volunteer Service Act of 1973 (42 U.S.C. 11 4951 et seq.) or as a participant in the Civilian 12 Community Corps Demonstration Program under 13 subtitle E shall receive the national service edu- 14 cational award described in subtitle D if the individ- 15 ual satisfies the eligibility requirements for the 16 award. Funds for approved national service positions 17 required by this paragraph for a fiscal year shall be 18 deducted from the total funding for approved na- 19 tional service positions to be available for distribu- 20 tion under subsections (a) and (d) for that fiscal 21 year. 22 "(2) EXCEPTION.-If the total number of ap- 23 proved national service positions to be available for 24 distribution under subsections (a) and (d) for a fis- 25 cal year does not exceed 200 percent of the number 26 1 of such positions that would be required to satisfy 2 paragraph (1) for that fiscal year, the Corporation 3 shall not reserve the national service educational 4 award for individuals described in such paragraph 5 who are selected during that fiscal year. 6 "(c) RESERVATION FOR SPECIAL ASSISTANCE.-Sub- 7 ject to section 501(a)(2), of the funds allocated by the 8 Corporation for provision of assistance under subsections 9 (a) and (b) of section 121 for a fiscal year, the Corpora- 10 tion may reserve such amount as the Corporation consid- 11 ers to be appropriate for the purpose of making assistance 12 available under sections 125 and 126. However, the Cor- 13 poration may not reserve more than $10,000,000 for a 14 fiscal year for challenge grants under section 126(c). 15 "(d) COMPETITIVE DISTRIBUTION OF REMAINING 16 FUNDS AND APPROVED POSITIONS.- 17 "(1) STATE COMPETITION.-Of the funds allo- 18 cated by the Corporation for provision of assistance 19 under subsections (a) and (b) of section 121 for a 20 fiscal year, the Corporation shall use not less than 21 33½ percent of the allocated funds to make grants 22 to States on a competitive basis under section 23 121(a). 24 "(2) FEDERAL AGENCIES AND OTHER APPLI- 25 CANTS.-The Corporation shall distribute on a com- 27 1 petitive basis to subdivisions of States, Indian tribes, 2 public and private not-for-profit organizations (in- 3 cluding labor organizations), institutions of higher 4 education, and Federal agencies the remainder of 5 the funds allocated by the Corporation for provision 6 of assistance under section 121 for a fiscal year, 7 after operation of paragraph (1) and subsections (a) 8 and (c). 9 "(3) LIMITATIONS.-The Corporation may limit 10 the categories of eligible applicants for assistance 11 under paragraph (2) consistent with the priorities 12 established by the Corporation under section 13 133(d)(2). 14 "(e) APPLICATION REQUIRED.-The allotment of as- 15 sistance and approved national service positions to a State 16 or Indian tribe under subsection (a), and the competitive 17 distribution of assistance and approved national service 18 positions under subsection (d), shall be made by the Cor- 19 poration only pursuant to an application submitted by a 20 State or other applicant under section 130 and approved 21 by the Corporation under section 133. 22 "(f) DISTRIBUTION OF APPROVED POSITIONS SUB- 23 JECT TO AVAILABLE FUNDS.-The Corporation may not 24 distribute approved national service positions under this 25 section for a fiscal year in excess of the number of such 28 1 positions for which the Corporation has sufficient available 2 funds in the National Service Trust for that fiscal year 3 to satisfy the maximum possible obligations to be incurred 4 by the United States to provide the national service edu- 5 cational award corresponding to service in these positions. 6 "(g) SPONSORSHIP OF APPROVED NATIONAL SERV- 7 ICE POSITIONS.- 8 "(1) SPONSORSHIP AUTHORIZED.-The Cor- 9 poration may enter into agreements with persons or 10 entities who offer to sponsor national service posi- 11 tions for which the person or entity will be respon- 12 sible for supplying the funds necessary to provide a 13 national service educational award. The distribution 14 of these approved national service positions shall be 15 made pursuant to the agreement, and the creation 16 of these positions shall not be taken into consider- 17 ation in determining the number of approved na- 18 tional service positions to be available for distribu- 19 tion under this section. 20 "(2) DEPOSIT OF CONTRIBUTION.-Funds pro- 21 vided pursuant to an agreement under paragraph 22 (1) and any other funds contributed to the Corpora- 23 tion to support the activities of the Corporation 24 under the national service laws shall be deposited in 29 1 the National Service Trust established in section 2 145 until such time as the funds are needed. 3 "SEC. 130. APPLICATION FOR ASSISTANCE AND APPROVED 4 NATIONAL SERVICE POSITIONS. 5 "(a) TIME, MANNER, AND CONTENT OF APPLICA- 6 TION.-To be eligible to receive assistance under section 7 121 and approved national service positions for partici- 8 pants who serve in the national service programs to be 9 carried out using the assistance, a State, subdivision of 10 a State, Indian tribe, public or private not-for-profit orga- 11 nization, institution of higher education, or Federal agen- 12 cy shall prepare and submit to the Corporation an applica- 13 tion at such time, in such manner, and containing such 14 information as the Corporation may reasonably require. 15 "(b) TYPES OF APPLICATION INFORMATION.-In 16 order to have adequate information upon which to consider 17 an application under section 133, the Corporation may re- 18 quire the following information to be provided in an appli- 19 cation submitted under subsection (a): 20 "(1) A description of the national service pro- 21 grams proposed to be carried out directly by the ap- 22 plicant using assistance provided under section 121. 23 "(2) A description of the national service pro- 24 grams that are selected by the applicant to receive 25 a grant from assistance requested under section 121 30 1 and a description of the process and criteria by 2 which the programs were selected. 3 "(3) A description of other funding sources to 4 be used, or sought to be used, for the national serv- 5 ice programs referred to in paragraphs (1) and (2), 6 and, if the application is submitted for the purpose 7 of seeking a renewal of assistance, a description of 8 the success of the programs in reducing their reli- 9 ance on Federal funds. 10 "(4) A description of the extent to which the 11 projects to be conducted using the assistance will ad- 12 dress unmet human, educational, environmental, or 13 public safety needs and produce a direct benefit for 14 the community in which the projects are performed. 15 "(5) A description of the plan to be used to re- 16 cruit participants, including economically disadvan- 17 taged youth, for the national service programs re- 18 ferred to in paragraphs (1) and (2). 19 "(6) A description of the manner in which the 20 national service programs referred to in paragraphs 21 (1) and (2) build on existing programs, including 22 Federal programs; 23 "(7) A description of the manner in which the 24 national service programs referred to in paragraphs 25 (1) and (2) will involve participants- 31 1 "(A) in projects that build an ethic of civic 2 responsibility and produce a positive change in 3 the lives of participants through training and 4 participation in meaningful service experiences 5 and opportunities for reflection on such experi- 6 ences; and 7 "(B) in leadership positions in implement- 8 ing and evaluating the program. 9 "(8) Measurable goals for the national service 10 programs referred to in paragraphs (1) and (2), and 11 a strategy to achieve such goals, in terms of- 12 "(A) the impact to be made in meeting 13 unmet human, educational, environmental, or 14 public safety needs; and 15 "(B) the service experience to be provided 16 to participants in the programs. 17 "(9) A description of the manner and extent to 18 which the national service programs referred to in 19 paragraphs (1) and (2) conform to the national serv- 20 ice priorities established by the Corporation under 21 section 122(c). 22 "(10) A description of the past experience of 23 the applicant in operating a comparable program or 24 in conducting a grant program in support of other 25 comparable programs. 32 1 "(11) A description of the type and number of 2 proposed service positions in which participants will 3 receive the national service educational award de- 4 scribed in subtitle D and a description of the man- 5 ner in which approved national service positions will 6 be apportioned by the applicant. 7 "(12) A description of the manner and extent 8 to which participants, representatives of the commu- 9 nity served, community-based agencies with a dem- 10 onstrated record of experience in providing services, 11 and labor organizations contributed to the develop- 12 ment of the national service programs referred to in 13 paragraphs (1) and (2), including the identity of the 14 individual representing the labor organization who 15 was consulted and the nature of the consultation. 16 "(13) Such other information as the Corpora- 17 tion may reasonably require. 18 "(c) APPLICATION TO RECEIVE ONLY APPROVED NA- 19 TIONAL SERVICE POSITIONS.- 20 "(1) APPLICABILITY OF SUBSECTION.-This 21 subsection shall apply in the case of an application 22 in which- 23 "(A) the applicant is not seeking assist- 24 ance under subsection (a) or (b) of section 121, 25 but requests national service educational 33 1 awards for individuals serving in service posi- 2 tions described in section 123; or 3 "(B) the applicant requests national serv- 4 ice educational awards for service positions de- 5 scribed in section 123, but the positions are not 6 positions in a national service program de- 7 scribed in section 122(a) for which assistance 8 may be provided under subsection (a) or (b) of 9 section 121. 10 "(2) SPECIAL APPLICATION REQUIREMENTS.- 11 For the applications described in paragraph (1), the 12 Corporation shall establish special application re- 13 quirements in order to determine— 14 "(A) whether the service positions meet 15 unmet human, educational, environmental, or 16 public safety needs and meet the criteria for as- 17 sistance under this subtitle; and 18 "(B) whether the Corporation should ap- 19 prove the positions as approved national service 20 positions that include the national service edu- 21 cational award described in subtitle D as one of 22 the benefits to be provided for successful service 23 in the position. 24 "(d) SPECIAL RULE FOR STATE APPLICANTS.- 34 1 "(1) SUBMISSION BY STATE COMMISSION.-The 2 application of a State for approved national service 3 positions or for a grant under section 121(a) shall 4 be submitted by the State Commission. 5 "(2) COMPETITIVE SELECTION.-The applica- 6 tion of a State shall contain an assurance that all 7 assistance provided under section 121(a) to the 8 State will be used to support national service pro- 9 grams that were selected by the State on a competi- 10 tive basis. 11 "(3) ASSISTANCE TO NONSTATE ENTITIES.- 12 The application of a State shall also contain an as- 13 surance that not less than 60 percent of the assist- 14 ance will be used to make grants in support of na- 15 tional service programs other than national service 16 programs carried out by a State agency. The Cor- 17 poration may permit a State to deviate from the per- 18 centage specified by this subsection if the State has 19 not received a sufficient number of acceptable appli- 20 cations to comply with the percentage. 21 "(e) SPECIAL RULE FOR CERTAIN SERVICE SPON- 22 SORS.-In the case of an applicant that proposes to serve 23 as the service sponsor, the application shall include the 24 written concurrence of any local labor organization rep- 25 resenting employees of the applicant who are engaged in 35 1 the same or substantially similar work as that proposed 2 to be carried out. 3 "(f) LIMITATION ON SAME PROJECT IN MULTIPLE 4 APPLICATIONS.-The Corporation shall reject an applica- 5 tion submitted under this section if a project proposed to 6 be conducted using assistance requested by the applicant 7 is already described in another application pending before 8 the Corporation. 9 "SEC. 131. NATIONAL SERVICE PROGRAM ASSISTANCE RE- 10 QUIREMENTS. 11 "(a) IMPACT ON COMMUNITIES.-An application sub- 12 mitted under section 130 shall include an assurance by 13 the applicant that any national service program carried 14 out by the applicant using assistance provided under sec- 15 tion 121 and any national service program supported by 16 a grant made by the applicant using such assistance will- 17 "(1) address unmet human, educational, envi- 18 ronmental, or public safety needs through services 19 that provide a direct benefit to the community in 20 which the service is preformed; and 21 "(2) comply with the nonduplication and 22 nondisplacement requirements of section 177. 23 "(b) IMPACT ON PARTICIPANTS.-An application 24 submitted under section 130 shall also include an assur- 25 ance by the applicant that any national service program 36 1 carried out by the applicant using assistance provided 2 under section 121 and any national service program sup- 3 ported by a grant made by the applicant using such assist- 4 ance will- 5 "(1) provide participants in the national service 6 program with the training, skills, and knowledge 7 necessary for the projects that participants are 8 called upon to perform; and 9 "(2) provide support services to participants, 10 such as the provision of appropriate information and 11 support- 12 "(A) to those participants who are com- 13 pleting a term of service and making the transi- 14 tion to other educational and career opportuni- 15 ties; and 16 "(B) to those participants who are school 17 dropouts in order to assist those participants in 18 earning the equivalent of a high school diploma. 19 "(c) CONSULTATION.-An application submitted 20 under section 130 shall also include an assurance by the 21 applicant that any national service program carried out 22 by the applicant using assistance provided under section 23 121 and any national service program supported by a 24 grant made by the applicant using such assistance will- 37 1 "(1) provide in the design, recruitment, and op- 2 eration of the program for broad-based input from 3 the community served, community-based agencies 4 with a demonstrated record of experience in provid- 5 ing services, and local labor organizations represent- 6 ing employees of service sponsors; 7 "(2) prior to the placement of participants, con- 8 sult with any local labor organization representing 9 employees in the area who are engaged in the same 10 or similar work as that proposed to be carried out 11 by such program to ensure compliance with the 12 nondisplacement requirements specified in section 13 177; and 14 "(3) in the case of a program that is not fund- 15 ed through a State, consult with and coordinate ac- 16 tivities with the State Commission for the State in 17 which the program operates. 18 "(d) EVALUATION AND PERFORMANCE GOALS.- 19 "(1) IN GENERAL.-An application submitted 20 under section 130 shall also include an assurance by 21 the applicant that the applicant will- 22 "(A) arrange for an independent evalua- 23 tion of any national service program carried out 24 using assistance provided to the applicant under 25 section 121; 38 1 "(B) develop measurable performance 2 goals and evaluation methods (such as the use 3 of surveys of participants and persons served), 4 which are to be used as part of such evaluation 5 to determine the impact of the program- 6 "(i) on communities and persons 7 served by the projects performed by the 8 program; 9 "(ii) on participants who take part in 10 the projects; and 11 "(iii) in such other areas as the Cor- 12 poration may require; and 13 "(C) cooperate with any evaluation activi- 14 ties undertaken by the Corporation. 15 "(2) ALTERNATIVE EVALUATION REQUIRE- 16 MENTS.-The Corporation may establish alternative 17 evaluation requirements for national service pro- 18 grams based upon the amount of assistance received 19 under section 121 or received by a grant made by 20 a recipient of assistance under such section. The de- 21 termination of whether a national service program is 22 covered by this paragraph shall be made in such 23 manner as the Corporation may prescribe. 24 "(e) LIVING ALLOWANCES AND OTHER INSERVICE 25 BENEFITS.-Except as provided in section 140(c), an ap- 39 1 plication submitted under section 124 shall also include 2 an assurance by the applicant that the applicant will- 3 "(1) provide a living allowance and other bene- 4 fits specified in section 140 to participants in any 5 national service program carried out by the appli- 6 cant using assistance provided under section 121; 7 and 8 "(2) require that each national service program 9 that receives a grant from the applicant using such 10 assistance will also provide a living allowance and 11 other benefits specified in section 140 to participants 12 in the program. 13 "(f) SELECTION OF PARTICIPANTS FROM INDIVID- 14 UALS RECRUITED BY CORPORATION OR STATE COMMIS- 15 SIONS.-The Corporation may also require an assurance 16 by the applicant that any national service program carried 17 out by the applicant using assistance provided under sec- 18 tion 121 and any national service program supported by 19 a grant made by the applicant using such assistance will 20 select a portion of the participants for the program from 21 among prospective participants recruited by the Corpora- 22 tion or State Commissions under section 138(d). The Cor- 23 poration may specify a minimum percentage of partici- 24 pants to be selected from the national leadership pool es- 40 1 tablished under section 138(e) and may vary the percent- 2 age for different types of national service programs. 3 "SEC. 132. INELIGIBLE SERVICE CATEGORIES. 4 "An application submitted to the Corporation under 5 section 130 shall include an assurance by the applicant 6 that any national service program carried out using assist- 7 ance provided under section 121 and any approved na- 8 tional service position provided to an applicant will not be 9 used to perform service that provides a direct benefit to 10 any- 11 "(1) business organized for profit; 12 "(2) labor union; 13 "(3) partisan political organization; or 14 "(4) organization engaged in religious activities, 15 unless such service does not involve the use of assist- 16 ance provided under section 121 or participants to 17 give religious instruction, conduct worship services, 18 or engage in any form of proselytization. 19 "SEC. 133. CONSIDERATION OF APPLICATIONS. 20 "(a) CORPORATION CONSIDERATION OF CERTAIN 21 CRITERIA.-The Corporation shall apply the criteria de- 22 scribed in subsections (c) and (d) in determining 23 whether- 41 1 "(1) to approve an application submitted under 2 section 130 and provide assistance under section 3 121 to the applicant; and 4 "(2) to approve service positions described in 5 the application as national service positions that in- 6 clude the national service educational award de- 7 scribed in subtitle D and provide such approved na- 8 tional service positions to the applicant. 9 "(b) APPLICATION TO SUBGRANTS.-A State or 10 other entity that uses assistance provided under section 11 121(a) to support national service programs selected on 12 a competitive basis to receive a share of the assistance 13 shall use the criteria described in subsections (c) and (d) 14 when considering an application submitted by a national 15 service program to receive a portion of such assistance or 16 an approved national service position. The application of 17 the State or other entity under section 130 shall contain 18 a certification that the State or other entity complied with 19 these criteria in the selection of national service programs 20 to receive assistance. 21 "(c) ASSISTANCE CRITERIA.-The criteria required 22 to be applied in evaluating applications submitted under 23 section 130 are as follows: 42 1 "(1) The quality of the national service pro- 2 gram proposed to be carried out directly by the ap- 3 plicant or supported by a grant from the applicant. 4 "(2) The innovative aspects of the national 5 service program, and the feasibility of replicating the 6 program. 7 "(3) The sustainability of the national service 8 program, based on evidence such as the existence- 9 "(A) of strong and broad-based community 10 support for the program; and 11 "(B) of multiple funding sources or private 12 funding for the program. 13 "(4) The quality of the leadership of the na- 14 tional service program, the past performance of the 15 program, and the extent to which the program 16 builds on existing programs. 17 "(5) The extent to which participants of the na- 18 tional service program are recruited from among 19 residents of the communities in which projects are to 20 be conducted, and the extent to which participants 21 and community residents are involved in the design, 22 leadership, and operation of the program. 23 "(6) The extent to which projects would be con- 24 ducted in areas where they are needed most, such 25 as- 43 1 "(A) communities designated as enterprise 2 zones or redevelopment areas, targeted for spe- 3 cial economic incentives, or otherwise identifi- 4 able as having high concentrations of low-in- 5 come people; 6 "(B) areas that are environmentally dis- 7 tressed; or 8 "(C) areas adversely affected by reductions 9 in defense spending or the closure or realign- 10 ment of military installations. 11 "(7) In the case of applicants other than 12 States, the extent to which the application is consist- 13 ent with the application under section 130 of the 14 State in which the projects would be conducted. 15 "(8) Such other criteria as the Corporation con- 16 siders to be appropriate. 17 "(d) OTHER CONSIDERATIONS. 18 "(1) GEOGRAPHIC DIVERSITY.-The Corpora- 19 tion shall ensure that recipients of assistance pro- 20 vided under section 121 are geographically diverse 21 and include projects to be conducted in those urban 22 and rural areas in a State with the highest rates of 23 poverty. 24 "(2) PRIORITIES.-The Corporation may des- 25 ignate, under such criteria as may be established by 44 1 the Corporation, certain national service programs 2 or types of national service programs described in 3 section 122(a) for priority consideration in the com- 4 petitive distribution of funds under section 5 129(d)(2). In designating national service programs 6 to receive priority, the Corporation may include 7 "(A) national service programs carried out 8 by another Federal agency; 9 "(B) national service programs that con- 10 form to the national service priorities in effect 11 under section 122(c); 12 "(C) innovative national service programs; 13 "(D) national service programs that are 14 well established in one or more States at the 15 time of the application and are proposed to be 16 expanded to additional States using assistance 17 provided under section 121; 18 "(E) grant programs in support of other 19 national service programs if the grant programs 20 are to be conducted by not-for-profit organiza- 21 tions with a demonstrated and extensive exper- 22 tise in the provision of services to meet human, 23 educational, environmental, or public safety 24 needs; and 45 1 "(F) professional corps programs described 2 in section 122(a)(8). 3 "(e) REJECTION OF STATE APPLICATIONS.- 4 "(1) NOTIFICATION OF STATE APPLICANTS.-If 5 the Corporation rejects an application submitted by 6 a State Commission under section 130 for funds de- 7 scribed in section 129(a)(1), the Corporation shall 8 promptly notify the State Commission of the reasons 9 for the rejection of the application. 10 "(2) RESUBMISSION AND RECONSIDERATION.- 11 The Corporation shall provide a State Commission 12 notified under paragraph (1) with a reasonable op- 13 portunity to revise and resubmit the application. At 14 the request of the State Commission, the Corpora- 15 tion shall provide technical assistance to the State 16 Commission as part of the resubmission process. 17 The Corporation shall promptly reconsider an appli- 18 cation resubmitted under this paragraph. 19 "(3) REALLOTMENT.-The amount of any 20 State's allotment under section 129(a) for a fiscal 21 year that the Corporation determines will not be 22 provided for that fiscal year shall be available for 23 distribution by the Corporation as provided in para- 24 graph (3) of such subsection. 46 1 "PART III-NATIONAL SERVICE PARTICIPANTS 2 "SEC. 137. DESCRIPTION OF PARTICIPANTS. 3 "(a) IN GENERAL.-For purposes of this subtitle, an 4 individual shall be considered to be a participant in a na- 5 tional service program carried out using assistance pro- 6 vided under section 121 if the individual- 7 "(1) meets such eligibility requirements as may 8 be established by the program; 9 "(2) is selected by the program to serve in a po- 10 sition with the program; 11 "(3) will serve in the program for a term of 12 service specified in section 139 to be performed be- 13 fore, during, or after attendance at an institution of 14 higher education; 15 "(4) is 17 years of age or older at the time the 16 individual begins the term of service; 17 "(5) has received a high school diploma or its 18 equivalent or agrees to obtain a high school diploma 19 or its equivalent and the individual did not drop out 20 of an elementary or secondary school to enroll in the 21 program; and 22 "(6) is a citizen of the United States or lawfully 23 admitted for permanent residence. 24 "(b) SPECIAL RULES FOR CERTAIN YOUTH PRO- 25 GRAMS.-An individual shall be considered to be a partici- 26 pant in a youth corps program described in section 47 1 122(a)(2) or a program described in section 122(a)(9) 2 that is carried out with assistance provided under section 3 121(a) if the individual- 4 "(1) satisfies the requirements specified in sub- 5 section (a), except paragraph (4) of such subsection; 6 and 7 "(2) is between the ages of 16 and 25, inclu- 8 sive, at the time the individual begins the term of 9 service. 10 "SEC. 138. SELECTION OF NATIONAL SERVICE PARTICI- 11 PANTS. 12 "(a) SELECTION PROCESS.-Subject to subsections 13 (b) and (c) and section 131(f), the actual recruitment and 14 selection of an individual to serve in a national service pro- 15 gram receiving assistance under section 121 or to fill an 16 approved national service position shall be conducted by 17 the State, subdivision of a State, Indian tribe, public or 18 private not-for-profit organization, institution of higher 19 education, Federal agency, or other entity to which the 20 assistance and approved national service positions are pro- 21 vided. 22 "(b) NONDISCRIMINATION AND NONPOLITICAL SE- 23 LECTION OF PARTICIPANTS.-The recruitment and selec- 24 tion of individuals to serve in national service programs 25 receiving assistance under section 121 or to fill approved 48 1 national service positions shall be consistent with the re- 2 quirements of section 175. 3 "(c) SECOND ТЕRМ.-Ассерtапсе into a national 4 service program to serve a second term of service under 5 section 139 shall only be available to individuals who per- 6 form satisfactorily in their first term of service. 7 "(d) RECRUITMENT AND PLACEMENT.-The Cor- 8 poration and each State Commission shall establish a sys- 9 tem to recruit individuals who desire to perform national 10 service and to assist the placement of these individuals in 11 approved national service positions, including positions 12 available under title I of the Domestic Volunteer Service 13 Act of 1973 (42 U.S.C. 4951). The Corporation and State 14 Commissions shall disseminate information regarding 15 available approved national service positions through co- 16 operation with secondary schools, institutions of higher 17 education, employment service offices, and other appro- 18 priate entities, particularly those organizations that pro- 19 vide outreach to disadvantaged youths. 20 "(e) NATIONAL LEADERSHIP POOL.- 21 "(1) SELECTION AND TRAINING.-From among 22 individuals recruited under subsection (d), the Cor- 23 poration may select individuals with significant lead- 24 ership potential, as determined by the Corporation, 25 to receive special training to enhance their leader- 49 1 ship ability. The leadership training shall be pro- 2 vided by the Corporation directly or through a grant 3 or contract. 4 "(2) EMPHASIS ON CERTAIN INDIVIDUALs.-In 5 selecting individuals to receive leadership training 6 under this subsection, the Corporation shall make 7 special efforts to select individuals who have served 8 in the Peace Corps, as VISTA volunteers, or as par- 9 ticipants in national service programs receiving as- 10 sistance under section 121. 11 "(3) ASSIGNMENT.-At the request of a pro- 12 gram that receives assistance under the national 13 service laws, the Corporation may assign an individ- 14 ual who receives leadership training under para- 15 graph (1) to work with the program in a leadership 16 position and carry out assignments not otherwise 17 performed by regular participants. An individual as- 18 signed to a program shall be considered to be a par- 19 ticipant of the program. 20 "SEC. 139. TERMS OF SERVICE. 21 "(a) IN GENERAL.-As a condition of receiving a na- 22 tional service education award under subtitle D, a partici- 23 pant in an approved national service position shall be re- 24 quired to perform full- or part-time national service for 25 at least one term of service specified in subsection (b). 50 1 "(b) TERM OF SERVICE.- 2 "(1) FULL-TIME SERVICE.-An individual per- 3 forming full-time national service in an approved na- 4 tional service position shall agree to participate in 5 the program sponsoring the position for not less 6 than 1,700 hours during a period of not less than 7 9 months and not more than 1 year. 8 "(2) PART-TIME SERVICE.-Except as provided 9 in paragraph (3), an individual performing part-time 10 national service in an approved national service posi- 11 tion shall agree to participate in the program spon- 12 soring the position for not less than 1,700 hours 13 during a period of not less than 1 year and not more 14 than 2 years. 15 "(3) REDUCTION IN HOURS OF PART-TIME 16 SERVICE.-The Corporation may reduce the number 17 of hours required to be served to successfully com- 18 plete part-time national service to a level determined 19 by the Corporation, except that any reduction in the 20 required term of service shall include a correspond- 21 ing reduction in the amount of any national service 22 educational award that may be available under sub- 23 title D with regard to that service. 24 "(c) RELEASE FROM COMPLETING TERM OF SERV- 25 ICE.- 51 1 "(1) RELEASE AUTHORIZED.-A recipient of 2 assistance under section 121 or a program sponsor- 3 ing an approved national service position may re- 4 lease a participant from completing a term of service 5 in the position- 6 "(A) for compelling personal circumstances 7 as demonstrated by the participant; or 8 "(B) for cause. 9 "(2) EFFECT OF RELEASE.-If the released 10 participant was serving in an approved national 11 service position, the participant may receive a por- 12 tion of the national service educational award cor- 13 responding to that service in the manner provided in 14 section 147(b), except that a participant released for 15 cause may not receive any portion of the national 16 service educational award. 17 "SEC. 140. LIVING ALLOWANCES FOR NATIONAL SERVICE 18 PARTICIPANTS. 19 "(a) PROVISION OF LIVING ALLOWANCE.- 20 "(1) LIVING ALLOWANCE PERMITTED.-Subject 21 to paragraph (3), a national service program carried 22 out using assistance provided under section 121 23 shall provide to each participant in the program a 24 living allowance in such an amount as may be estab- 25 lished by the program. 52 1 "(2) LIMITATION ON FEDERAL SHARE.-The 2 amount of the annual living allowance provided 3 under paragraph (1) that may be paid using assist- 4 ance provided under section 121 and using any other 5 Federal funds shall not exceed the lesser of- 6 "(A) 85 percent of the total average an- 7 nual subsistence allowance provided to VISTA 8 volunteers under section 105 of the Domestic 9 Volunteer Service Act of 1973 (42 U.S.C. 10 4955); and 11 "(B) 85 percent of the annual living allow- 12 ance established by the national service pro- 13 gram involved. 14 "(3) MAXIMUM LIVING ALLOWANCE.-Exp 15 as provided in subsection (c), the total amount of an 16 annual living allowance that may be provided to a 17 participant in a national service program shall not 18 exceed 200 percent of the average annual subsist- 19 ence allowance provided to VISTA volunteers under 20 section 105 of the Domestic Volunteer Service Act 21 of 1973 (42 U.S.C. 4955). 22 "(4) PRORATION OF LIVING ALLOWANCE.-The 23 amount provided as a living allowance under this 24 subsection shall be prorated in the case of a partici- 53 1 pant who is authorized to serve a reduced term of 2 service under section 139(b)(3). 3 "(5) TREATMENT OF LIVING ALLOWANCE.- 4 The amount provided as a living allowance under 5 this subsection, up to the maximum living allowance 6 authorized by paragraph (3), shall not be taken into 7 account in determining the need or eligibility of any 8 person for benefits or assistance, or the amount of 9 such benefits or assistance, under any Federal, 10 State, or local program financed in whole or in part 11 with Federal funds. Nothing in the preceding sen- 12 tence shall be construed to exclude amounts received 13 as a living allowance from gross income under sec- 14 tion 61 of the Internal Revenue Code of 1986 (26 15 U.S.C. 61). 16 "(b) COVERAGE OF CERTAIN EMPLOYMENT-RELAT- 17 ED TAXES.-To the extent a national service program that 18 receives assistance under section 121 is subject, with re- 19 spect to the participants in the program, to the taxes im- 20 posed on an employer under sections 3111 and 3301 of 21 the Internal Revenue Code of 1986 (26 U.S.C. 3111, 22 3301) and taxes imposed on an employer under a work- 23 men's compensation act, the assistance provided to the 24 program under section 121 shall include an amount suffi- 54 1 cient to cover 85 percent of such taxes based upon the 2 lesser of- 3 "(1) the total average annual subsistence allow- 4 ance provided to VISTA volunteers under section 5 105 of the Domestic Volunteer Service Act of 1973 6 (42 U.S.C. 4955); and 7 "(2) the annual living allowance established by 8 the program. 9 "(c) EXCEPTION FROM MAXIMUM LIVING ALLOW- 10 ANCE FOR CERTAIN ASSISTANCE.-A professional corps 11 program described in section 122(a)(8) that desires to 12 provide a living allowance in excess of the maximum allow- 13 ance authorized in subsection (a)(3) may still apply for 14 such assistance, except that- 15 "(1) any assistance provided to the applicant 16 under section 121 may not be used to pay for any 17 portion of the allowance; 18 "(2) the applicant shall apply for such assist- 19 ance only by submitting an application to the Cor- 20 poration for assistance on a competitive basis; and 21 "(3) the national service program must be oper- 22 ated directly by the applicant and must meet urgent, 23 unmet human, educational, environmental, or public 24 safety needs, as determined by the Corporation. 55 1 "(d) HEALTH INSURANCE.-A State or other recipi- 2 ent of assistance under section 121 shall provide a basic 3 health care policy for each full-time participant in a na- 4 tional service program carried out or supported using the 5 assistance if the participant is not otherwise covered by 6 a health care policy. Not more than 85 percent of the cost 7 of a premium shall be provided by the Corporation, with 8 the remaining cost paid by the entity receiving assistance 9 under section 121. The Corporation shall establish mini- 10 mum standards that all plans must meet in order to qual- 11 ify for payment under this part, any circumstances in 12 which an alternative health care policy may be substituted 13 for the basic health care policy, and mechanisms to pro- 14 hibit participants from dropping existing coverage. 15 "(e) CHILD CARE.- 16 "(1) AVAILABILITY.-A State or other recipient 17 of assistance under section 121 shall- 18 "(A) make child care available for children 19 of each full-time participant who serves in a na- 20 tional service program carried out or supported 21 by the recipient using the assistance, including 22 individuals who need such child care in order to 23 participate in the program; or 24 "(B) provide a child care allowance to each 25 full-time participant in a national service pro- 56 1 gram who needs such assistance in order to 2 participate in the program. 3 "(2) GUIDELINES.-The Corporation shall es- 4 tablish guidelines regarding the circumstances under 5 which child care must be made available under this 6 subsection and the value of any allowance to be pro- 7 vided. 8 "(f) WAIVER OF LIMITATION ON FEDERAL SHARE.- 9 The Corporation may waive in whole or in part the limita- 10 tion on the Federal share specified in this section with 11 respect to a particular national service program in any fis- 12 cal year if the Corporation determines that such a waiver 13 would be equitable due to a lack of available financial re- 14 sources at the local level. 15 "SEC. 141. NATIONAL SERVICE EDUCATIONAL AWARDS. 16 "(a) ELIGIBILITY GENERALLY.-A participant in a 17 national service program carried out using assistance pro- 18 vided to an applicant under section 121 shall be eligible 19 for the national service educational award described in 20 subtitle D if the participant- 21 "(1) serves in an approved national service po- 22 sition; and 23 "(2) satisfies the eligibility requirements speci- 24 fied in section 146 with respect to service in that ap- 25 proved national service position. 57 1 "(b) SPECIAL RULE FOR VISTA VOLUNTEERS.-A 2 VISTA volunteer who serves in an approved national serv- 3 ice position shall be ineligible for a national service edu- 4 cational award if the VISTA volunteer accepts the stipend 5 authorized under section 105(a)(1) of the Domestic Volun- 6 teer Service Act of 1973 (42 U.S.C. 4955(a)(1)." 7 (b) TABLE OF CONTENTS.-Section 1(b) of the Na- 8 tional and Community Service Act of 1990 (Public Law 9 101-610; 104 Stat. 3127) is amended by striking the 10 items relating to subtitle C of title I of such Act and in- 11 serting 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. Required terms of service of national service participants. "Sec. 140. Living allowances for national service participants. "Sec. 141. National service educational awards.". 58 1 SEC. 102. NATIONAL SERVICE TRUST AND PROVISION OF 2 NATIONAL SERVICE EDUCATIONAL AWARDS. 3 (a) ESTABLISHMENT OF TRUST; PROVISION OF 4 AWARDS.-Subtitle D of title I of the National and Com- 5 munity Service Act of 1990 (42 U.S.C. 12571 et seq.) is 6 amended to read as follows: 7 "Subtitle D-National Service 8 Trust and Provision of National 9 Service Educational Awards 10 "SEC. 145. ESTABLISHMENT OF THE NATIONAL SERVICE 11 TRUST. 12 "(a) ESTABLISHMENT.-There is established in the 13 Treasury of the United States an account to be known 14 as the National Service Trust. The Trust shall consist 15 of- 16 "(1) from the amounts appropriated to the Cor- 17 poration and made available to carry out this sub- 18 title pursuant to section 501(a)(1), such amounts as 19 the Corporation may designate to be available for 20 the payment of- 21 "(A) national service educational awards; 22 and 23 ((B) interest expenses pursuant to sub- 24 section (e); 59 1 "(2) any amounts received by the Corporation 2 as gifts, bequests, devise, or otherwise pursuant to 3 section 192(a)(2); and 4 "(3) the interest on, and proceeds from the sale 5 or redemption of, any obligations held by the Trust. 6 "(b) INVESTMENT OF TRUST.-It shall be the duty 7 of the Secretary of the Treasury to invest in full the 8 amounts appropriated to the Trust. Except as otherwise 9 expressly provided in instruments concerning a gift, be- 10 quest, devise, or other donation and agreed to by the Cor- 11 poration, such investments may be made only in interest- 12 bearing obligations of the United States or in obligations 13 guaranteed as to both principal and interest by the United 14 States. For such purpose, such obligations may be ac- 15 quired (1) on original issue at the issue price, or (2) by 16 purchase of outstanding obligations at the marketplace. 17 Any obligation acquired by the Trust may be sold by the 18 Secretary at the market price. 19 "(c) EXPENDITURES FROM TRUST.-Amounts in the 20 Trust shall be available for payments of national service 21 educational awards in accordance with section 148. 22 "(d) REPORTS TO CONGRESS ON RECEIPTS AND Ex- 23 PENDITURES.-The Corporation shall submit an annual 24 report to the Congress on the financial status of the Trust. 25 Such report shall- 60 1 "(1) specify the amount deposited to the Trust 2 from the most recent appropriation to the Corpora- 3 tion, the amount received by the Corporation as gifts 4 or bequest during the period covered by the report, 5 and any amounts obtained by the Trust pursuant to 6 subsection (a)(3); 7 "(2) identify the number of individuals who are 8 currently performing service to qualify, or have 9 qualified, for national service educational awards; 10 "(3) identify the number of individuals whose 11 ability to claim national service educational awards 12 during the period covered by the report- 13 "(A) has been reduced pursuant to section 14 147(b); or 15 "(B) has lapsed pursuant to section 16 146(d); and 17 "(4) estimate the number of additional ap- 18 proved national service positions which the Corpora- 19 tion will be able to make available under subtitle C 20 on the basis of any accumulated surplus in the 21 Trust above the amount required to provide national 22 service educational awards to individuals identified 23 under paragraph (2), including any amounts avail- 24 able as a result of the circumstances referred to in 25 paragraph (3). 61 1 "SEC. 146. INDIVIDUALS ELIGIBLE TO RECEIVE A NATIONAL 2 SERVICE EDUCATIONAL AWARD FROM THE 3 TRUST. 4 "(a) ELIGIBLE INDIVIDUALS.-An individual shall 5 receive a national service educational award from the Na- 6 tional Service Trust if the individual- 7 "(1) successfully completes the required term of 8 service described in subsection (b) in an approved 9 national service position; 10 "(2) was 17 years of age or older at the time 11 the individual began serving in the approved na- 12 tional service position or was an out-of-school youth 13 serving in an approved national service position with 14 a youth corps program described in section 15 122(a)(2) or a program described in section 16 122(a)(9); 17 "(3) has received a high school diploma, or the 18 equivalent of such diploma, at the time the individ- 19 ual uses the national service educational award; and 20 "(4) is a citizen of the United States or lawfully 21 admitted for permanent residence. 22 "(b) TERM OF SERVICE.-The term of service for an 23 approved national service position shall not be less than 24 the full- or part-time term of service specified in section 25 139(b). 62 1 "(c) LIMITATION ON NUMBER OF TERMS OF SERV- 2 ICE FOR AWARDS.-Although an individual may serve 3 more than 2 terms of service described in subsection (b) 4 in an approved national service position, the individual 5 shall receive a national service educational award from the 6 National Service Trust only on the basis of the first and 7 second of such terms of service. 8 "(d) TIME FOR USE OF EDUCATIONAL AWARD.- 9 "(1) FIVE-YEAR REQUIREMENT.-An individual 10 eligible to receive a national service educational 11 award under this section may not use such award 12 after the end of the 5-year period beginning on the 13 date the individual completes the term of service in 14 an approved national service position that is the 15 basis of the award. 16 "(2) EXCEPTION.-The Corporation may ex- 17 tend the period within which an individual may use 18 a national service educational award if the Corpora- 19 tion determines that the individual- 20 "(A) was unavoidably prevented from 21 using the national service educational award 22 during the original 5-year period; or 23 "(B) performed another term of service in 24 an approved national service position during 25 that period. 63 1 "SEC. 147. DETERMINATION OF THE AMOUNT OF THE NA- 2 TIONAL SERVICE EDUCATIONAL AWARD. 3 "(a) AMOUNT GENERALLY.-Except as provided in 4 subsection (b), an individual described in section 146(a) 5 who successfully completes a required term of service in 6 an approved national service position shall receive a na- 7 tional service educational award having a value equal to 8 $5,000 for each of not more than 2 of such terms of serv- 9 ice. 10 "(b) AWARD FOR PARTIAL COMPLETION OF SERV- 11 ICE.-If an individual serving in an approved national 12 service position is released in accordance with section 13 139(c)(1)(A) from completing the term of service agreed 14 to by the individual, the Corporation may provide the indi- 15 vidual with that portion of the national service educational 16 award approved for the individual that corresponds to the 17 quantity of the term of service actually completed by the 18 individual. 19 "SEC. 148. DISBURSEMENT OF NATIONAL SERVICE EDU- 20 CATIONAL AWARDS. 21 "(a) IN GENERAL-Amounts in the Trust shall be 22 available— 23 "(1) to repay student loans in accordance with 24 subsection (b); 64 1 "(2) to pay all or part of the cost of attendance 2 at an institution of higher education in accordance 3 with subsection (c); 4 "(3) to pay expenses incurred in participating 5 in an approved school-to-work program in accord- 6 ance with subsection (d); and 7 "(4) to pay interest expenses in accordance with 8 regulations prescribed pursuant to subsection (e). 9 "(b) USE OF EDUCATIONAL AWARD TO REPAY OUT- 10 STANDING STUDENT LOANS.- 11 "(1) APPLICATION BY ELIGIBLE INDIVID- 12 UALS.-An eligible individual under section 146 who 13 desires to apply his or her national service edu- 14 cational award to the repayment of qualified student 15 loans shall submit, in a manner prescribed by the 16 Corporation, an application to the Corporation 17 that- 18 "(A) identifies, or permits the Corporation 19 to identify readily, the holder or holders of such 20 loans; 21 "(B) indicates, or permits the Corporation 22 to determine readily, the amounts of principal 23 and interest outstanding on the loans; and 65 1 "(C) contains or is accompanied by such 2 other information as the Corporation may re- 3 quire. 4 "(2) DISBURSEMENT OF REPAYMENTS.-Upon 5 receipt of an application from an eligible individual 6 of an application that complies with paragraph (1), 7 the Corporation shall, as promptly as practicable 8 consistent with paragraph (5), disburse the amount 9 of the national service educational award to which 10 the eligible individual is entitled. Such disbursement 11 shall be made by check or other means that is pay- 12 able to the holder of the loan and requires the en- 13 dorsement or other certification by the eligible indi- 14 vidual. 15 "(3) APPLICATION OF DISBURSED AMOUNTS.- 16 If the amount disbursed under paragraph (2) is less 17 than the principal and accrued interest on any quali- 18 fied student loan, such amount shall first be applied 19 to the repayment of principal. 20 "(4) REPORTS BY HOLDERS.-Any holder re- 21 ceiving a loan payment pursuant to this subsection 22 shall submit to the Corporation such information as 23 the Corporation may require to verify that such pay- 24 ment was applied in accordance with this subsection 66 1 and any regulations prescribed to carry out this sub- 2 section. 3 "(5) AUTHORITY TO AGGREGATE PAYMENTS.- 4 The Corporation may, by regulation, provide for the 5 aggregation of payments to holders under this sub- 6 section. 7 "(6) DEFINITION OF QUALIFIED STUDENT 8 LOANS.-The term 'qualified student loans' means— 9 "(A) any loan made, insured, or guaran- 10 teed pursuant to title IV of the Higher Edu- 11 cation Act of 1965 (20 U.S.C. 1070 et seq.), 12 other than a loan to a parent of a student pur- 13 suant to section 428B of such Act (20 U.S.C. 14 1078-2); and 15 "(B) any loan made pursuant to title VII 16 or VIII of the Public Health Service Act (42 17 U.S.C. 292a et seq.). 18 "(7) DEFINITION OF HOLDER.-The term 19 'holder' with respect to any eligible loan means the 20 original lender or, if the loan is subsequently sold, 21 transferred, or assigned to some other person, and 22 such other person acquires a legally enforceable 23 right to receive payments from the borrower, such 24 other person. 67 1 "(c) USE OF EDUCATIONAL AWARDS TO PAY CUR- 2 RENT EDUCATIONAL EXPENSES.- 3 "(1) APPLICATION BY ELIGIBLE INDIVIDUAL.- 4 An eligible individual under section 146 who desires 5 to apply his or her national service educational 6 award to the payment of current educational ex- 7 penses shall, on a form prescribed by the Corpora- 8 tion, submit an application to the institution of high- 9 er education in which the student will be enrolled 10 that contains such information as the Corporation 11 may require to verify the individual's eligibility. 12 "(2) SUBMISSION OF REQUESTS FOR PAYMENT 13 BY INSTITUTIONS.-An institution of higher edu- 14 cation that receives one or more applications that 15 comply with paragraph (1) shall submit to the Cor- 16 poration a statement, in a manner prescribed by the 17 Corporation, that- 18 "(A) identifies each eligible individual fil- 19 ing an application under paragraph (1) for a 20 disbursement of the individual's national service 21 educational award under this subsection; 22 "(B) specifies the amounts for which such 23 eligible individuals are, consistent with para- 24 graph (6), qualified for disbursement under this 25 subsection; 68 1 "(C) certifies that (i) the institution of 2 higher education has in effect a program par- 3 ticipation agreement under section 487 of the 4 Higher Education Act of 1965 (20 U.S.C. 5 1094), and (ii) the institution's eligibility to 6 participate in any of the programs under title 7 IV of such Act (20 U.S.C. 1070 et seq.) has not 8 been limited, suspended, or terminated; and 9 "(D) contains such provisions concerning 10 financial compliance as the Corporation may re- 11 quire. 12 "(3) DISBURSEMENT OF PAYMENTS.-Upon re- 13 ceipt of a statement from an institution of higher 14 education that complies with paragraph (2), the Cor- 15 poration shall, subject to paragraph (4), disburse the 16 total amount of the national service educational 17 awards for which eligible individuals who have sub- 18 mitted applications to that institution under para- 19 graph (1) are qualified. Such disbursement shall be 20 made by check or other means that is payable to the 21 institution and requires the endorsement or other 22 certification by the eligible individual. 23 "(4) MULTIPLE DISBURSEMENTS REQUIRED.- 24 The total amount required to be disbursed to an in- 25 stitution of higher education under paragraph (3) 69 1 for any period of enrollment shall be disbursed by 2 the Corporation in 2 or more installments, none of 3 which exceeds ½ of such total amount. The interval 4 between the first and second such installment shall 5 not be less than ½ of such period of enrollment, ex- 6 cept as necessary to permit the second installment to 7 be paid at the beginning of the second semester, 8 quarter, or similar division of such period of enroll- 9 ment. 10 "(5) REFUND RULES.-The Corporation shall, 11 by regulation, provide for the refund to the Corpora- 12 tion (and the crediting to the national service edu- 13 cational award of an eligible individual) of amounts 14 disbursed to institutions for the benefit of eligible in- 15 dividuals who withdraw or otherwise fail to complete 16 the period of enrollment for which the assistance 17 was provided. Such regulations shall be consistent 18 with the fair and equitable refund policies required 19 of institutions pursuant to section 484B of the 20 Higher Education Act of 1965 (20 U.S.C. 1091b). 21 Amounts refunded to the Trust pursuant to this 22 paragraph may be used by the Corporation to fund 23 additional approved national service positions under 24 subtitle C. 70 1 "(6) MAXIMUM AWARD.-The portion of an eli- 2 gible individual's total available national service edu- 3 cational award that may be disbursed under this 4 subsection for any period of enrollment shall not ex- 5 ceed the difference between- 6 "(A) the eligible individual's cost of attend- 7 ance for such period of enrollment, determined 8 in accordance with section 472 of the Higher 9 Education Act of 1965 (20 U.S.C. 108711); and 10 "(B) the sum of (i) the student's estimated 11 financial assistance for such period under part 12 A of title IV of such Act (20 U.S.C. 1070 et 13 seq.), and (ii) the student's veterans' education 14 benefits, determined in accordance with section 15 480(c) of such Act (20 U.S.C. 1087vv(c)). 16 "(d) USE OF EDUCATIONAL AWARD TO PARTICIPATE 17 IN APPROVED SCHOOL-TO-WORK PROGRAMS.-The Cor- 18 poration shall by regulation provide for the payment of 19 national service educational awards to permit eligible indi- 20 viduals to participate in school-to-work programs approved 21 by the Secretaries of Labor and Education. 22 "(e) INTEREST PAYMENTS DURING FORBEARANCE 23 ON LOAN REPAYMENT.-The Corporation may provide by 24 regulation for the payment on behalf of an eligible individ- 25 ual of interest that accrues during a period for which such 71 1 individual has obtained forbearance in the repayment of 2 a qualified student loan (as defined in subsection (b)(6)), 3 if the eligible individual successfully completes his or her 4 required term of service (as determined under section 5 146(b)). Such regulations shall be prescribed after con- 6 sultation with the Secretary of Education. 7 "(f) TREATMENT OF BENEFITS-Notwithstanding 8 any other provision of law, national service awards and 9 other benefits received under this section shall not be 10 taken into account in the determining the need or eligi- 11 bility of any person for benefits or assistance, or the 12 amount of such benefits or assistance, under any Federal, 13 State, or local program financed in whole or in part with 14 Federal funds. The amount of any national service award 15 or other benefits received under this section shall not be 16 considered income for purposes of the Internal Revenue 17 Code of 1986. 18 "(g) DEFINITION OF INSTITUTION OF HIGHER EDU- 19 CATION.-Notwithstanding section 101 of this Act, for 20 purposes of this section the term 'institution of higher 21 education' has the meaning provided by section 481(a) of 22 the Higher Education Act of 1965 (20 U.S.C. 1088(a))." 23 (b) TABLE OF CONTENTS-Section 1(b) of the Na- 24 tional and Community Service Act of 1990 (Public Law 25 101-610; 104 Stat. 3127) is amended by striking the 72 1 items relating to subtitle D of title I of such Act and in- 2 serting the following new items: "Subtitle D-National Service Trust and Provision of National Service Educational Awards "Sec. 145. Establishment of the National Service Trust. "Sec. 146. Individuals eligible to receive a national service educational award from the Trust. "Sec. 147. Determination of the amount of the national service educational award. "Sec. 148. Disbursement of national service educational awards.". 3 (c) CONFORMING AMENDMENTS.- 4 (1) ELIGIBILITY FOR SUBSIDIZED STAFFORD 5 LOANS.-Section 428(a)(2)(C)(i) of the Higher Edu- 6 cation Act of 1965 (20 U.S.C. 1078(a)(2)(C)(i)) is 7 amended by inserting after "parts C and E of this 8 title," the following: "any national service edu- 9 cational award such student will receive under sub- 10 title D of title I of the National and Community 11 Service Act of 1990 (42 U.S.C. 12751 et seq.),' 12 (2) FORBEARANCE IN THE COLLECTION OF 13 STAFFORD LOANS.-Section 428 of the Higher Edu- 14 cation Act of 1965 is amended— 15 (A) in subsection (b)(1)- 16 (i) by redesignating subparagraphs 17 (W), (X), and (Y) as subparagraphs (X), 18 (Y), and (Z), respectively; and 19 (ii) by inserting immediately after 20 subparagraph (V) the following new sub- 21 paragraph: 73 1 "(W)(i) provides that, upon written re- 2 quest, a lender shall grant a borrower forbear- 3 ance on such terms as are otherwise consistent 4 with the regulations of the Secretary, during 5 periods in which the borrower is serving in a 6 national service position, for which he or she re- 7 ceives a national service educational award 8 under the National Service Trust Act of 1993; 9 "(ii) provides that clauses (iii) and (iv) of 10 subparagraph (V) shall also apply to a forbear- 11 ance granted under this subparagraph; and 12 "(iii) provides that interest shall continue 13 to accrue on a loan for which a borrower re- 14 ceives forbearance under this subparagraph and 15 shall be capitalized or paid by the borrower;"; 16 and 17 (B) in subsection (c)(3)(A), by striking 18 "subsection (b)(1)(V)" and inserting "sub- 19 section (b)(1) (V) and (W)". 20 (3) ELIGIBILITY FOR STAFFORD LOAN FOR- 21 GIVENESS.-Section 428J of the Higher Education 22 Act of 1965 (20 U.S.C. 1078-10) is amended- 23 (A) in subsection (b)(1), is amended by 24 striking "October 1, 1992" and inserting "Oc- 25 tober 1, 1989"; 74 1 (B) in subsection (c), by adding at the end 2 the following new paragraph: 3 "(5) INELIGIBILITY OF NATIONAL SERVICE 4 EDUCATIONAL AWARD RECIPIENTS.-No student 5 borrower may, for the same volunteer service, receive 6 a benefit under both this section and subtitle D of 7 title I of the National and Community Service Act 8 of 1990 (42 U.S.C. 12751 et seq.).' and 9 (C) by adding at the end the following new 10 subsection: 11 "(h) TREATMENT OF BENEFITS.-Notwithstanding 12 any other provision of law, the amount of any loan repaid 13 by the Secretary under this section shall not be taken into 14 account in the determining the need or eligibility of any 15 person for benefits or assistance, or the amount of such 16 benefits or assistance, under any Federal, State, or local 17 program financed in whole or in part with Federal funds. 18 The amount of any loan repaid by the Secretary under 19 this section shall not be considered income for purposes 20 of the Internal Revenue Code of 1986.". 21 (4) ELIGIBILITY FOR PERKINS LOAN FORGIVE- 22 NESS.-Section 465(a) of the Higher Education Act 23 of 1965 (20 U.S.C. 1087ee(a)) is amended by add- 24 ing at the end the following new paragraph: 75 1 "(6) No borrower may, for the same volunteer 2 service, receive a benefit under both this section and 3 subtitle D of title I of the National and Community 4 Service Act of 1990 (42 U.S.C. 12751 et seq.). 5 (5) IMPACT ON GENERAL NEEDS ANALYSIS.- 6 Section 480(j) of such Act (20 U.S.C. 1087vv(j) is 7 amended by adding at the end the following new 8 paragraph: 9 "(3) Notwithstanding paragraph (1), any na- 10 tional service educational award such student will re- 11 ceive under subtitle D of title I of the National and 12 Community Service Act of 1990 (42 U.S.C. 12751 13 et seq.) shall not be taken into account in determin- 14 ing estimated financial assistance not received under 15 this title.' 16 SEC. 103. SCHOOL-BASED AND COMMUNITY-BASED SERV- 17 ICE-LEARNING PROGRAMS. 18 (a) AMENDMENTS TO SERVE-AMERICA PROGRAMS.- 19 (1) PURPOSE.-The purpose of this subsection 20 is to improve the Serve-America programs estab- 21 lished under part I of subtitle B of the National and 22 Community Service Act of 1990, and to enable the 23 Corporation for National Service, and the entities 24 receiving financial assistance under such part, to- 76 1 (A) work with teachers in elementary 2 schools and secondary schools within a commu- 3 nity, and with community-based agencies, to 4 create and offer service-learning opportunities 5 for all school-age youth; 6 (B) educate teachers, and faculty providing 7 teacher training and retraining, about service- 8 learning, and incorporate service-learning op- 9 portunities into classroom teaching to strength- 10 en academic learning; 11 (C) coordinate the work of adult volunteers 12 who work with elementary and secondary 13 schools as part of their community service ac- 14 tivities; and 15 (D) work with employers in the commu- 16 nities to ensure that projects introduce the stu- 17 dents to various careers and expose the stu- 18 dents to needed further education and training. 19 (2) PROGRAMS.-Subtitle B of title I of the Na- 20 tional and Community Service Act of 1990 (42 21 U.S.C. 12501 et seq.) is amended by striking the 22 subtitle heading and all that follows through the end 23 of part I and inserting the following: 77 1 "Subtitle B-School-Based and 2 Community-Based Service- 3 Learning Programs 4 "PART I-SERVE-AMERICA PROGRAMS 5 "Subpart A-School-Based Programs for Students 6 "SEC. 111. AUTHORITY TO ASSIST STATES AND INDIAN 7 TRIBES. 8 "(a) USE OF FUNDS.-The Corporation, in consulta- 9 tion with the Secretary of Education, may make grants 10 under section 112(b)(1), and allotments under subsections 11 (a) and (b)(2) of section 112, to States and Indian tribes 12 to pay for the Federal share of- 13 "(1) planning and building the capacity of the 14 States or Indian tribes (which may be accomplished 15 through grants or contracts with qualified organiza- 16 tions) to implement school-based service-learning 17 programs, including- 18 "(A) providing training for teachers, su- 19 pervisors, personnel from community-based 20 agencies (particularly with regard to the utiliza- 21 tion of participants), and trainers, to be con- 22 ducted by qualified individuals or organizations 23 that have experience with service-learning; 24 "(B) developing service-learning curricula 25 to be integrated into academic programs, in- 78 1 cluding the age-appropriate learning component 2 described in section 114(d)(5)(B); 3 "(C) forming local partnerships described 4 in paragraph (2) or (4) to develop school-based 5 service-learning programs in accordance with 6 this subpart; 7 "(D) devising appropriate methods for re- 8 search and evaluation of the educational value 9 of service-learning and the effect of service- 10 learning activities on communities; and 11 "(E) establishing effective outreach and 12 dissemination of information to ensure the 13 broadest possible involvement of community- 14 based agencies with demonstrated effectiveness 15 in working with school-age youth in their com- 16 munities; 17 "(2) implementing, operating, or expanding 18 school-based service-learning programs, which may 19 include paying for the cost of the recruitment, train- 20 ing, supervision, placement, salaries, and benefits of 21 service-learning coordinators, through State distribu- 22 tion of Federal funds made available under this sub- 23 part to projects operated by local partnerships 24 among- 25 "(A) local educational agencies; and 79 1 ((B) one or more community partners 2 that- 3 "(i) shall include a public or private 4 not-for-profit organization that will make 5 projects available for participants, who 6 shall be students; and 7 "(ii) may include a private for-profit 8 business or private elementary or second- 9 ary school; 10 "(3) planning of school-based service-learning 11 programs through State distribution of Federal 12 funds made available under this subpart to local 13 educational agencies, which planning may include 14 paying for the cost of- 15 "(A) the salaries and benefits of service- 16 learning coordinators; or 17 "(B) the recruitment, training, supervision, 18 and placement of service-learning coordinators 19 who are participants in a program under sub- 20 title C or receive a national service educational 21 award under subtitle D, 22 who will identify the community partners described 23 in paragraph (2)(B) and assist in the design and im- 24 plementation of a program described in paragraph 25 (2); and 80 1 "(4) implementing, operating, or expanding 2 school-based service-learning programs involving 3 adult volunteers to utilize service-learning to improve 4 the education of students through State distribution 5 of Federal funds made available under this part to 6 local partnerships among- 7 "(A) local educational agencies; and 8 "(B) one or more- 9 "(i) public or private not-for-profit or- 10 ganizations; 11 "(ii) other educational agencies; or 12 "(iii) private for-profit businesses, 13 that coordinate and operate projects for participants, 14 who shall be students. 15 "(b) DUTIES OF SERVICE-LEARNING COORDINA- 16 TOR.-A service-learning coordinator referred to in para- 17 graph (2) or (3) of subsection (a) shall provide services 18 to a local educational agency by- 19 "(1) expanding the awareness of teachers of the 20 potential of service-learning in strengthening the 21 educational achievement, leadership development, 22 and substantive learning, of students; 23 "(2) providing technical assistance and informa- 24 tion to, and facilitating the training of, teachers who 25 want to use service-learning in their classrooms; 81 1 "(3) assisting local partnerships described in 2 subsection (a) in the planning, development, and 3 execution of service-learning projects; 4 "(4) recruiting and supervising adult volun- 5 teers, or individuals who are participants in a pro- 6 gram under subtitle C or receive a national service 7 educational award under subtitle D, to expand serv- 8 ice-learning opportunities; and 9 "(5) coordinating the activities of the service- 10 learning coordinator with the activities of the com- 11 mittee described in section 114(d)(1), and, where 12 appropriate, assisting the committee. 13 "(c) RELATED EXPENSES.-A partnership, local edu- 14 cational agency, or other qualified organization that re- 15 ceives financial assistance under this subpart may, in car- 16 rying out the activities described in subsection (a), use 17 such assistance to pay for the Federal share of reasonable 18 costs related to the supervision of participants, program 19 administration, transportation, insurance, evaluations, 20 and for other reasonable expenses related to the activities. 21 "SEC. 111A. AUTHORITY TO ASSIST LOCAL APPLICANTS IN 22 NONPARTICIPATING STATES. 23 "In any fiscal year in which a State does not submit 24 an application under section 113, for an allotment under 25 subsection (a) or (b)(2) of section 112, that meets the re- 82 1 quirements of section 113 and such other requirements 2 as the Chairperson may determine to be appropriate, the 3 Corporation may use the allotment of that State to make 4 direct grants to pay for the Federal share of the cost of- 5 "(1) carrying out the activities described in 6 paragraph (2) or (4) of section 111(a), to a local 7 partnership described in such paragraph; or 8 "(2) carrying out the activities described in 9 paragraph (3) of such section, to an agency de- 10 scribed in such paragraph, 11 that is located in the State. 12 "SEC. 111B. AUTHORITY TO ASSIST PUBLIC OR PRIVATE 13 NOT-FOR-PROFIT ORGANIZATIONS. 14 "(a) IN GENERAL.-The Corporation may make a 15 grant under section 112(b)(1) to a public or private not- 16 for-profit organization that- 17 "(1) has experience with service-learning; 18 "(2) was in existence 1 year before the date on 19 which the organization submitted an application 20 under section 114(a); and 21 "(3) meets such other criteria as the Chair- 22 person may establish. 23 "(b) USE OF FUNDS.-Such an organization may use 24 a grant made under subsection (a) to make grants to part- 25 nerships described in paragraph (2) or (4) of section 83 1 111(a) to implement, operate, or expand school-based 2 service-learning programs as described in such section and 3 provide technical assistance and training to appropriate 4 persons. 5 "SEC. 112. GRANTS AND ALLOTMENTS. 6 "(a) INDIAN TRIBES AND TERRITORIES.-Of the 7 amounts appropriated to carry out this subpart for any 8 fiscal year, the Corporation shall reserve an amount of not 9 more than 1 percent for payments to Indian tribes, the 10 Virgin Islands, Guam, American Samoa, and the Com- 11 monwealth of the Northern Mariana Islands, to be allotted 12 in accordance with their respective needs. The Corporation 13 may also make payments from such amount to Palau, in 14 accordance with its needs, until such time as the Compact 15 of Free Association with Palau is ratified. 16 "(b) GRANTS AND ALLOTMENTS THROUGH 17 STATES.-The Corporation shall use the remainder of the 18 funds appropriated to carry out this subpart for any fiscal 19 year as follows: 20 "(1) GRANTS.-Except as provided in para- 21 graph (3), from 25 percent of such funds, the Cor- 22 poration may make grants, on a competitive basis, 23 to— 24 "(A) State educational agencies and Indian 25 tribes; or 84 1 "(B) as described in section 111B, to 2 grantmaking entities. 3 "(2) ALLOTMENTS.- 4 "(A) SCHOOL-AGE YOUTH.-Except as pro- 5 vided in paragraph (3), from 37.5 percent of 6 such funds, the Corporation shall allot to each 7 State an amount that bears the same ratio to 8 37.5 percent of such funds as the number of 9 school-age youth in the State bears to the total 10 number of school-age youth of all States. 11 "(B) ALLOCATION UNDER ELEMENTARY 12 AND SECONDARY EDUCATION ACT OF 1965.- 13 Except as provided in paragraph (3), from 37.5 14 percent of such funds, the Corporation shall 15 allot to each State an amount that bears the 16 same ratio to 37.5 percent of such funds as the 17 allocation to the State for the previous fiscal 18 year under chapter 1 of title I of the Elemen- 19 tary and Secondary Education Act of 1965 (20 20 U.S.C. 2711 et seq.) bears to such allocations 21 to all States. 22 "(3) MINIMUM AMOUNT.-No State shall re- 23 ceive, under paragraph (2), an allotment that is less 24 than the allotment such State received for fiscal year 25 1993 under section 112(b) of this Act, as in effect 85 1 on the day before the date of enactment of this part. 2 If the amount of funds made available in a fiscal 3 year to carry out paragraph (2) is insufficient to 4 make such allotments, the Corporation shall make 5 available sums from the 25 percent described in 6 paragraph (1) for such fiscal year to make such al- 7 lotments. 8 "(4) DEFINITION.-Notwithstanding section 9 101(25), for purposes of this subsection, the term 10 'State' means each of the several States, the District 11 of Columbia, the Commonwealth of Puerto Rico, and 12 an Indian tribe. 13 "(c) REALLOTMENT.-If the Corporation determines 14 that the allotment of a State or Indian tribe under this 15 section will not be required for a fiscal year because the 16 State or Indian tribe does not submit an application for 17 the allotment under section 113 that meets the require- 18 ments of such section and such other requirements as the 19 Chairperson may determine to be appropriate, the Cor- 20 poration shall, after making any grants under section 21 111A to a partnership or agency described in such section, 22 make any remainder of such allotment available for real- 23 lotment to such other States, and Indian tribes, with ap- 24 proved applications submitted under section 113, as the 25 Corporation may determine to be appropriate. 86 1 "(d) EXCEPTION.-Notwithstanding subsections (a) 2 and (b), if less than $20,000,000 is appropriated for any 3 fiscal year to carry out this subpart, the Corporation shall 4 award grants to States and Indian tribes, from the 5 amount SO appropriated, on a competitive basis to pay for 6 the Federal share of the activities described in section 111. 7 "SEC. 113. STATE OR TRIBAL APPLICATIONS. 8 "(a) SUBMISSION.-To be eligible to receive a grant 9 under section 112(b)(1), an allotment under subsection 10 (a) or (b)(2) of section 112, a reallotment under section 11 112(c), or a grant under section 112(d), a State, acting 12 through the State educational agency, or an Indian tribe, 13 shall prepare, submit to the Corporation, and obtain ap- 14 proval of, an application at such time and in such manner 15 as the Chairperson may reasonably require. 16 "(b) CONTENTs.-An application that is submitted 17 under subsection (a) with respect to service-learning pro- 18 grams described in section 111 shall include- 19 "(1) a 3-year strategic plan, or a revision of a 20 previously approved 3-year strategic plan, for pro- 21 moting service-learning through the programs, which 22 plan shall contain such information as the Chair- 23 person may reasonably require, such as- 87 1 "(A) a description of the goals to be at- 2 tained in promoting service-learning through 3 such programs; 4 "(B) a description of the resources and or- 5 ganization needed to achieve the goals of such 6 programs within elementary schools and second- 7 ary schools; and 8 "(C) a description of the manner in 9 which- 10 "(i) such programs and the activities 11 to be carried out under such programs re- 12 late to the goals described in subparagraph 13 (A); 14 "(ii) the applicant will evaluate the 15 success of the programs and the extent of 16 community involvement in the programs, 17 and measure the extent to which the pro- 18 grams meet the goals described in subpara- 19 graph (A); 20 "(iii) in reviewing applications submit- 21 ted under section 114(c), the applicant has 22 ranked the applications according to the 23 criteria described in section 115(b), has 24 considered the factors described in section 25 115(a), and has reviewed the applications 88 1 in a manner that ensured the equitable 2 treatment of all such applications; 3 "(iv) the programs will be coordinated 4 with- 5 "(I) the education reform efforts 6 of the applicant; 7 "(II) other efforts to meet the 8 National Education Goals; 9 "(III) other service activities in 10 the State or serving the Indian tribe; 11 and 12 "(IV) other education programs, 13 training programs, social service pro- 14 grams, and appropriate programs that 15 serve school-age youth, that are au- 16 thorized under Federal law; 17 "(v) the applicant will disseminate in- 18 formation, conduct outreach, and take 19 other measures, to encourage cooperative 20 efforts among the local educational agen- 21 cies, local government agencies, commu- 22 nity-based agencies, State agencies, and 23 private for-profit businesses that will carry 24 out the service-learning programs proposed 25 by the applicant, to develop and provide 89 1 projects, including those that involve the 2 participation of urban, suburban, and rural 3 students working together; 4 "(vi) the applicant will promote ap- 5 propriate projects in such programs for 6 economically disadvantaged students, stu- 7 dents with limited basic skills, students in 8 foster care who are becoming too old for 9 foster care, students of limited-English 10 proficiency, homeless students, and stu- 11 dents with disabilities; 12 "(vii) service-learning training and 13 technical assistance will be provided 14 through the programs- 15 "(I) to State and local edu- 16 cational agency personnel, federally 17 assisted education specialists in the 18 State or serving the Indian tribe, and 19 local recipients of grants under this 20 subpart, to raise the awareness of 21 service-learning among such person- 22 nel, specialists, and recipients; and 23 "(II) by qualified and experi- 24 enced individuals employed by the 25 State or Indian tribe or through 90 1 grants or contracts with such individ- 2 uals; 3 "(viii) a service-learning network will 4 be established for the State or Indian 5 tribe, comprised of expert teachers and ad- 6 ministrators who have carried out success- 7 ful service-learning activities within the 8 State or serving the Indian tribe; and 9 "(ix) the applicant will use payments 10 from sources described in section 11 116(a)(2)(B) to expand projects for stu- 12 dents through the programs proposed by 13 the applicant; 14 "(2) assurances that- 15 "(A) the applicant will keep such records 16 and provide such information to the Corpora- 17 tion with respect to the programs as may be re- 18 quired for fiscal audits and program evaluation; 19 and 20 "(B) the applicant will comply with the 21 nonduplication and nondisplacement require- 22 ments of section 177; and 23 "(3) such additional information as the Chair- 24 person may reasonably require. 91 1 "SEC. 114. LOCAL APPLICATIONS. 2 "(a) APPLICATION TO CORPORATION TO MAKE 3 GRANTS FOR SCHOOL-BASED SERVICE-LEARNING PRO- 4 GRAMS.- 5 "(1) IN GENERAL.-To be eligible to receive a 6 grant in accordance with section 111B(a) to make 7 grants relating to school-based service-learning pro- 8 grams described in section 111(a)(2), a grantmaking 9 entity shall prepare, submit to the Corporation, and 10 obtain approval of, an application. 11 "(2) SUBMISSION.-Such application shall be 12 submitted at such time and in such manner, and 13 shall contain such information, as the Chairperson 14 may reasonably require. Such application shall in- 15 clude a proposal to assist such programs in more 16 than 1 State. 17 "(b) DIRECT APPLICATION TO CORPORATION TO 18 CARRY OUT SCHOOL-BASED SERVICE-LEARNING PRO- 19 GRAMS IN NONPARTICIPATING STATES.-To be eligible to 20 receive a grant from the Corporation in the circumstances 21 described in section 111A to carry out an activity de- 22 scribed in such section, a partnership or agency described 23 in such section shall prepare, submit to the Corporation, 24 and obtain approval of, an application. Such application 25 shall be submitted at such time and in such manner, and 92 1 shall contain such information, as the Chairperson may 2 reasonably require. 3 "(c) APPLICATION TO STATE OR INDIAN TRIBE TO 4 RECEIVE ASSISTANCE TO CARRY OUT SCHOOL-BASED 5 SERVICE-LEARNING PROGRAMS.- 6 "(1) IN GENERAL.-Any- 7 "(A) qualified organization that desires to 8 receive financial assistance under this subpart 9 from a State or Indian tribe for an activity de- 10 scribed in section 111(a)(1); 11 "(B) partnership described in section 12 111(a)(2) that desires to receive such assistance 13 from a State, Indian tribe, or grantmaking en- 14 tity for an activity described in section 15 111(a)(2); 16 "(C) agency described in section 111(a)(3) 17 that desires to receive such assistance from a 18 State or Indian tribe for an activity described 19 in such section; or 20 "(D) partnership described in section 21 111(a)(4) that desires to receive such assistance 22 from a State or Indian tribe for an activity de- 23 scribed in such section, 24 to be carried out through a service-learning program 25 described in section 111, shall prepare, submit to 93 1 the State educational agency, Indian tribe, or 2 grantmaking entity, and obtain approval of, an ap- 3 plication for the program. 4 "(2) SUBMISSION.-Such application shall be 5 submitted at such time and in such manner, and 6 shall contain such information, as the agency, tribe, 7 or entity may reasonably require. 8 "(d) CONTENTS OF APPLICATION.-An application 9 that is submitted under subsection (a), (b), or (c) with 10 respect to a service-learning program described in section 11 111 shall, at a minimum, contain a proposal that 12 includes— 13 "(1) information specifying the membership and 14 role of an established advisory committee, consisting 15 of representatives of community-based agencies in- 16 cluding service recipients, students, parents, teach- 17 ers, administrators, representatives of agencies that 18 serve school-age youth or older adults, school board 19 members, representatives of local labor organiza- 20 tions, and representatives of business, that will pro- 21 vide advice with respect to the program; 22 "(2) a description of- 23 "(A) the goals of the program which shall 24 include goals that are quantifiable and dem- 94 1 onstrate any benefits from the program to par- 2 ticipants and the community; 3 "(B) service-learning projects to be pro- 4 vided under the program, and evidence that 5 participants will make a sustained commitment 6 to service in the projects; 7 "(C) the manner in which participants in 8 the program were or will be involved in the de- 9 sign and operation of the program; 10 "(D) training for supervisors, teachers, 11 service sponsors, and participants in the pro- 12 gram; 13 "(E) the manner in which exemplary serv- 14 ice will be recognized under the program; and 15 "(F) any resources that will permit con- 16 tinuation of the program, if needed, after the 17 assistance received under this subpart for the 18 program has ended; 19 "(3) information that shall include- 20 "(A) a disclosure of whether or not the 21 participants will receive academic credit for par- 22 ticipation in the program; 23 "(B) the expected number of participants 24 in the program and the hours of service that 95 1 such participants will provide individually and 2 as a group; 3 "(C) the proportion of expected partici- 4 pants in the program who are economically dis- 5 advantaged, including participants with disabil- 6 ities; and 7 "(D) any role of adult volunteers in imple- 8 menting the program, and the manner in which 9 such volunteers will be recruited; 10 "(4) in the case of an application submitted by 11 a local partnership, a written agreement, between 12 the members of the local partnership, stating that 13 the program was jointly developed by the members 14 and that the program will be jointly executed by the 15 members; and 16 "(5) assurances that- 17 "(A) prior to the placement of a partici- 18 pant, the entity carrying out the program will 19 consult with any local labor organization rep- 20 resenting employees in the area who are en- 21 gaged in the same or similar work as that pro- 22 posed to be carried out by such program, to 23 prevent the displacement and protect the rights 24 of such employees; 96 1 "(B) the entity carrying out the program 2 will develop an age-appropriate learning compo- 3 nent for participants in the program that shall 4 include a chance for participants to analyze and 5 apply their service experiences; and 6 "(C) the entity carrying out the program 7 will comply with the nonduplication and 8 nondisplacement requirements of section 177 9 and grievance procedure requirements of section 10 176(f). 11 "SEC. 115. CONSIDERATION OF APPLICATIONS. 12 "(a) CRITERIA FOR APPLICATIONS.-In approving 13 applications for financial assistance under subsection (a), 14 (b), (c), or (d) of section 112, the Corporation shall con- 15 sider such criteria with respect to sustainability, 16 replicability, innovation, and quality of programs under 17 this subpart as the Chairperson may by regulation specify. 18 In providing assistance under this subpart, a State edu- 19 cational agency, Indian tribe, or grantmaking entity shall 20 consider such criteria. 21 "(b) PRIORITY FOR LOCAL APPLICATIONS.- 22 "(1) IN GENERAL.-In providing assistance 23 under this subpart, a State educational agency or 24 Indian tribe, or the Corporation if section 111A or 25 111B applies, shall give priority to entities that sub- 97 1 mit applications under section 114 with respect to 2 service-learning programs described in section 111 3 that- 4 "(A) involve participants in the design and 5 operation of the program; 6 "(B) are in the greatest need of assistance, 7 such as programs targeting low-income areas; 8 "(C) involve- 9 "(i) students from public elementary 10 or secondary schools, and students from 11 private elementary or secondary schools, 12 serving together; or 13 "(ii) students of different ages, races, 14 sexes, ethnic groups, disabilities, or eco- 15 nomic backgrounds, serving together; or 16 "(D) are integrated into the academic pro- 17 gram of the participants. 18 "(c) REJECTION OF APPLICATIONS.-If the Corpora- 19 tion rejects an application submitted by a State under sec- 20 tion 113 for an allotment under subsection (b)(2) of sec- 21 tion 112, the Corporation shall promptly notify the State 22 of the reasons for the rejection of the application. The 23 Corporation shall provide the State with a reasonable op- 24 portunity to revise and resubmit the application and shall 25 provide technical assistance, if needed, to the State as part 98 1 of the resubmission process. The Corporation shall 2 promptly reconsider such resubmitted application. 3 "SEC. 115A. PARTICIPATION OF STUDENTS AND TEACHERS 4 FROM PRIVATE SCHOOLS. 5 "(a) IN GENERAL.-To the extent consistent with the 6 number of students in the State or Indian tribe or in the 7 school district of the local educational agency involved who 8 are enrolled in private not-for-profit elementary and sec- 9 ondary schools, such State, Indian tribe, or agency shall 10 (after consultation with appropriate private school rep- 11 resentatives) make provision- 12 "(1) for the inclusion of services and arrange- 13 ments for the benefit of such students SO as to allow 14 for the equitable participation of such students in 15 the programs implemented to carry out the objec- 16 tives and provide the benefits described in this sub- 17 part; and 18 "(2) for the training of the teachers of such 19 students SO as to allow for the equitable participa- 20 tion of such teachers in the programs implemented 21 to carry out the objectives and provide the benefits 22 described in this subpart. 23 "(b) WAIVER.-If a State, Indian tribe, or local edu- 24 cational agency is prohibited by law from providing for 25 the participation of students or teachers from private not- 99 1 for-profit schools as required by subsection (a), or if the 2 Corporation determines that a State, Indian tribe, or local 3 educational agency substantially fails or is unwilling to 4 provide for such participation on an equitable basis, the 5 Chairperson shall waive such requirements and shall ar- 6 range for the provision of services to such students and 7 teachers. Such waivers shall be subject to consultation, 8 withholding, notice, and judicial review requirements in 9 accordance with paragraphs (3) and (4) of section 1017(b) 10 of the Elementary and Secondary Education Act of 1965 11 (20 U.S.C. 2727(b)). 12 "SEC. 116. FEDERAL, STATE, AND LOCAL CONTRIBUTIONS. 13 "(a) SHARE.- 14 "(1) IN GENERAL.-The Federal share attrib- 15 utable to this subpart of the cost of carrying out a 16 program for which a grant or allotment is made 17 under this subpart may not exceed— 18 "(A) 90 percent of the total cost of the 19 program for the first year for which the pro- 20 gram receives assistance under this subpart; 21 "(B) 80 percent of the total cost of the 22 program for the second year for which the pro- 23 gram receives assistance under this subpart; 24 "(C) 70 percent of the total cost of the 25 program for the third year for which the pro- 100 1 gram receives assistance under this subpart; 2 and 3 "(D) 50 percent of the total cost of the 4 program for the fourth year, and for any subse- 5 quent year, for which the program receives as- 6 sistance under this subpart. 7 "(2) CALCULATION.-In providing for the re- 8 maining share of the cost of carrying out such a pro- 9 gram, each recipient of assistance under this 10 subpart- 11 "(A) shall provide for such share through 12 a payment in cash or in kind, fairly evaluated, 13 including facilities, equipment, or services; and 14 "(B) may provide for such share through 15 State sources, local sources, or Federal sources 16 (other than funds made available under the na- 17 tional service laws). 18 "(b) WAIVER.-The Chairperson may waive the re- 19 quirements of subsection (a) in whole or in part with re- 20 spect to any such program in any fiscal year if the Cor- 21 poration determines that such a waiver would be equitable 22 due to a lack of available financial resources at the local 23 level. 24 "SEC. 116A. LIMITATIONS ON USES OF FUNDS. 25 "(a) ADMINISTRATIVE Costs.- 101 1 "(1) LIMITATION.-Not more than 5 percent of 2 the amount of assistance provided to a State edu- 3 cational agency, Indian tribe, or grantmaking entity 4 that is the original recipient of a grant or allotment 5 under subsection (a), (b), (c), or (d) of section 112 6 for a fiscal year may be used to pay for administra- 7 tive costs incurred by- 8 "(A) the original recipient; or 9 "(B) the entity carrying out the service- 10 learning programs supported with the assist- 11 ance. 12 "(2) RULES ON USE.-The Chairperson may by 13 rule prescribe the manner and extent to which- 14 "(A) such assistance may be used to cover 15 administrative costs; and 16 "(B) that portion of the assistance avail- 17 able to cover administrative costs should be dis- 18 tributed between- 19 "(i) the original recipient; and 20 "(ii) the entity carrying out the serv- 21 ice-learning programs supported with the 22 assistance. 23 "(b) CAPACITY-BUILDING ACTIVITIES.-Not less 24 than 10 percent and not more than 15 percent of the 25 amount of assistance provided to a State educational 102 1 agency or Indian tribe that is the original recipient of a 2 grant or allotment under subsection (a), (b), (c), or (d) 3 of section 112 for a fiscal year may be used to build capac- 4 ity through training, technical assistance, curriculum de- 5 velopment, and coordination activities, described in section 6 111(a)(1). 7 "(c) LOCAL USES OF FUNDS.-Funds made available 8 under this subpart may not be used to pay any stipend, 9 allowance, or other financial support to any student who 10 is a participant under this subtitle, except reimbursement 11 for transportation, meals, and other reasonable out-of- 12 pocket expenses directly related to participation in a pro- 13 gram assisted under this subpart. 14 "SEC. 116B. DEFINITIONS. 15 "As used in this subpart: 16 "(1) GRANTMAKING ENTITY.-The term 17 'grantmaking entity' means an organization de- 18 scribed in section 111B(a). 19 "(2) SCHOOL-BASED.-The term 'school-based' 20 means based in an elementary school or a secondary 21 school. 22 "(3) STUDENT.-Notwithstanding section 23 101(28), the term 'student' means an individual who 24 is enrolled in an elementary or secondary school on 25 a full- or part-time basis. 103 1 "Subpart B-Community-Based Service Programs for 2 School-Age Youth 3 "SEC. 117. DEFINITIONS. 4 "As used in this subpart: 5 "(1) COMMUNITY-BASED SERVICE PROGRAM.- 6 The term 'community-based service program' means 7 a program described in section 117A(b)(1)(A). 8 "(2) GRANTMAKING ENTITY.-The term 9 'grantmaking entity' means a qualified organization 10 that- 11 "(A) submits an application under section 12 117C(a) to make grants to qualified organiza- 13 tions; and 14 "(B) was in existence 1 year before the 15 date on which the organization submitted the 16 application. 17 "(3) QUALIFIED ORGANIZATION.-The term 18 'qualified organization' means a public or private 19 not-for-profit organization with experience working 20 with school-age youth that meets such criteria as the 21 Chairperson may establish. 22 "SEC. 117A. GENERAL AUTHORITY. 23 "(a) GRANTS.-From the funds appropriated to 24 carry out this subpart for a fiscal year, the Corporation 25 may make grants to State Commissions, grantmaking en- 26 tities, and qualified organizations to pay for the Federal 104 1 share of the implementation, operation, expansion, or rep- 2 lication of community-based service programs. 3 "(b) USE OF FUNDS.- 4 "(1) STATE COMMISSIONS AND GRANTMAKING 5 ENTITIES.-A State Commission or grantmaking en- 6 tity may use a grant made under subsection (a)- 7 "(A) to make a grant to a qualified organi- 8 zation to implement, operate, expand, or rep- 9 licate a community-based service-learning pro- 10 gram that provides for meaningful human, edu- 11 cational, environmental, or public safety service 12 by participants, who shall be school-age youth; 13 or 14 "(B) to provide training and technical as- 15 sistance to such an organization. 16 "(2) QUALIFIED ORGANIZATIONS.-A qualified 17 organization, other than a grantmaking entity, may 18 use a grant made under subsection (a) to implement, 19 operate, expand, or replicate a program described in 20 paragraph (1)(A). 21 "SEC. 117B. STATE APPLICATIONS. 22 "(a) IN GENERAL.-To be eligible to receive a grant 23 under section 117A(a), a State Commission shall prepare, 24 submit to the Corporation, and obtain approval of, an ap- 25 plication. 105 1 "(b) SUBMISSION.-Such application shall be submit- 2 ted to the Corporation at such time and in such manner, 3 and shall contain such information, as the Chairperson 4 may reasonably require. 5 "(c) CONTENTS.-Such an application shall include, 6 at a minimum, a State plan that contains the descriptions, 7 proposals, and assurance described in section 117C(d) 8 with respect to each community-based service program 9 proposed to be carried out through funding distributed by 10 the State Commission under this subpart. 11 "SEC. 117C. LOCAL APPLICATIONS. 12 "(a) APPLICATION TO CORPORATION TO MAKE 13 GRANTS FOR COMMUNITY-BASED SERVICE PROGRAMS.- 14 To be eligible to receive a grant from the Corporation 15 under section 117A(a) to make grants under section 16 117A(b)(1), a grantmaking entity shall prepare, submit 17 to the Corporation, and obtain approval of, an application 18 that proposes a community-based service program to be 19 carried out through grants made to qualified organiza- 20 tions. Such application shall be submitted at such time 21 and in such manner, and shall contain such information, 22 as the Chairperson may reasonably require. 23 "(b) DIRECT APPLICATION TO CORPORATION TO 24 CARRY OUT COMMUNITY-BASED SERVICE PROGRAMS.- 25 To be eligible to receive a grant from the Corporation 106 1 under section 117A(a) to implement, operate, expand, or 2 replicate a community service program, a qualified organi- 3 zation shall prepare, submit to the Corporation, and ob- 4 tain approval of, an application that proposes a commu- 5 nity-based service program to be carried out at multiple 6 sites, or that proposes an innovative community-based 7 service program. Such application shall be submitted at 8 such time and in such manner, and shall contain such in- 9 formation, as the Chairperson may reasonably require. 10 "(c) APPLICATION TO STATE COMMISSION OR 11 GRANTMAKING ENTITY TO RECEIVE GRANTS TO CARRY 12 OUT COMMUNITY-BASED SERVICE PROGRAMS.-To be el- 13 igible to receive a grant from a State Commission or 14 grantmaking entity under section 117A(b)(1), a qualified 15 organization shall prepare, submit to the Commission or 16 entity, and obtain approval of, an application. Such appli- 17 cation shall be submitted at such time and in such man- 18 ner, and shall contain such information, as the Commis- 19 sion or entity may reasonably require. 20 "(d) REQUIREMENTS OF APPLICATION.-An applica- 21 tion submitted under subsection (a), (b), or (c) shall, at 22 a minimum, contain- 23 "(1) a description of any community-based 24 service program proposed to be implemented, oper- 107 1 ated, expanded, or replicated directly by the appli- 2 cant using assistance provided under this subpart; 3 "(2) a description of any grant program pro- 4 posed to be conducted by the applicant with assist- 5 ance provided under this subpart to support a com- 6 munity-based service program; 7 "(3) a proposal for carrying out the commu- 8 nity-based service program that describes the man- 9 ner in which the entity carrying out the program 10 will- 11 "(A) provide preservice and inservice train- 12 ing, for supervisors and participants, that will 13 be conducted by qualified individuals, or quali- 14 fied organizations, that have experience in com- 15 munity-based service programs; 16 "(B) include economically disadvantaged 17 individuals as participants in the program pro- 18 posed by the applicant; 19 "(C) provide an age-appropriate service- 20 learning component described in section 21 114(d)(5)(B); 22 "(D) conduct an appropriate evaluation of 23 the program; 24 "(E) provide for appropriate community 25 involvement in the program; 108 1 "(F) provide service experiences that pro- 2 mote leadership abilities among participants in 3 the program, including experiences that involve 4 such participants in program design; 5 "(G) involve participants in projects ap- 6 proved by community-based agencies; 7 ((H) establish and measure progress to- 8 ward the goals of the program; and 9 "(I) organize participants in the program 10 into teams, with team leaders who may be par- 11 ticipants in a program under subtitle C or indi- 12 viduals who receive a national service edu- 13 cational award under subtitle D; and 14 "(4) an assurance that the entity carrying out 15 the program proposed by the applicant will comply 16 with the nonduplication and nondisplacement provi- 17 sions of section 177 and grievance procedure re- 18 quirements of section 176(f). 19 "SEC. 117D. CONSIDERATION OF APPLICATIONS. 20 "(a) APPLICATION OF CRITERIA.-The Corporation 21 shall apply the criteria described in subsection (b) in de- 22 termining whether to approve an application submitted 23 under section 117B or under subsection (a) or (b) of sec- 24 tion 117C and to provide assistance under section 117A 25 to the applicant on the basis of the application. 109 1 "(b) ASSISTANCE CRITERIA.-In evaluating such an 2 application with respect to a program under this subpart, 3 the Corporation shall consider the criteria established for 4 national service programs under section 133(c). 5 "(c) APPLICATION TO SUBGRANTS.-A State Com- 6 mission .or grantmaking entity shall apply the criteria de- 7 scribed in subsection (b) in determining whether to ap- 8 prove an application under section 117C(c) and to make 9 a grant under section 117A(b)(1) to the applicant on the 10 basis of the application. 11 "SEC. 117E. FEDERAL, STATE, AND LOCAL CONTRIBUTIONS. 12 "(a) FEDERAL SHARE.- 13 "(1) IN GENERAL.-The Federal share attrib- 14 utable to this subpart of the cost of carrying out a 15 program for which a grant is made under this sub- 16 part may not exceed the percentage specified in sub- 17 paragraph (A), (B), (C), or (D) of section 116(a)(1), 18 as appropriate. 19 "(2) CALCULATION.-Each recipient of assist- 20 ance under this subpart shall comply with section 21 116(a)(2). 22 "(b) WAIVER.-The Chairperson may waive the re- 23 quirements of subsection (a), in whole or in part, as pro- 24 vided in section 116(b). 110 1 "SEC. 117F. LIMITATIONS ON USES OF FUNDS. 2 "(a) ADMINISTRATIVE Costs.-Not more than 5 per- 3 cent of the amount of assistance provided to a State Com- 4 mission, grantmaking entity, or qualified organization that 5 is the original recipient of a grant under section 117A(a) 6 for a fiscal year may be used to pay for administrative 7 costs incurred by- 8 "(1) the original recipient; or 9 "(2) the entity carrying out the community- 10 based service programs supported with the assist- 11 ance. 12 "(b) RULES ON USE.-The Chairperson may by rule 13 prescribe the manner and extent to which- 14 "(1) such assistance may be used to cover ad- 15 ministrative costs; and 16 "(2) that portion of the assistance available to 17 cover administrative costs should be distributed 18 between- 19 "(A) the original recipient; and 20 "(B) the entity carrying out the commu- 21 nity-based service programs supported with the 22 assistance. 23 "Subpart C-Clearinghouse 24 "SEC. 118. SERVICE-LEARNING CLEARINGHOUSE. 25 "(a) IN GENERAL.-The Corporation shall provide fi- 26 nancial assistance, from funds appropriated to carry out 111 1 subtitle H, to agencies described in subsection (b) to es- 2 tablish a clearinghouse, which shall carry out activities, 3 either directly or by arrangement with another such entity, 4 with respect to information about service-learning. 5 "(b) PUBLIC AND PRIVATE NOT-FOR-PROFIT AGEN- 6 CIES.-Public and private not-for-profit agencies that 7 have extensive experience with service-learning, including 8 use of adult volunteers to foster service-learning, shall be 9 eligible to receive assistance under subsection (a). 10 "(c) FUNCTION OF CLEARINGHOUSE.-An entity 11 that receives assistance under subsection (a) may- 12 "(1) assist entities carrying out State or local 13 service-learning programs with needs assessments 14 and planning; 15 "(2) conduct research and evaluations concern- 16 ing service-learning; 17 "(3)(A) provide leadership development and 18 training to State and local service-learning program 19 administrators, supervisors, service sponsors, and 20 participants; and 21 ((B) provide training to persons who can pro- 22 vide the leadership development and training de- 23 scribed in subparagraph (A); 112 1 "(4) facilitate communication among entities 2 carrying out service-learning programs and partici- 3 pants in such programs; 4 "(5) provide information, curriculum materials, 5 and technical assistance relating to planning and op- 6 eration of service-learning programs, to States and 7 local entities eligible to receive financial assistance 8 under this title; 9 "(6)(A) gather and disseminate information on 10 successful service-learning programs, components of 11 such successful programs, innovative youth skills 12 curricula related to service-learning, and service- 13 learning projects; and 14 "(B) coordinate the activities of the Clearing- 15 house with appropriate entities to avoid duplication 16 of effort; 17 "(7) make recommendations to State and local 18 entities on quality controls to improve the quality of 19 service-learning programs; 20 "(8) assist organizations in recruiting, screen- 21 ing, and placing service-learning coordinators; and 22 "(9) carry out such other activities as the 23 Chairperson determines to be appropriate." 24 (b) HIGHER EDUCATION INNOVATIVE PROJECTS.- 25 Subtitle B of title I of the National and Community Serv- 113 1 ice Act of 1990 (42 U.S.C. 12531 et seq.) is amended 2 by striking part II and inserting the following: 3 "PART II-HIGHER EDUCATION INNOVATIVE 4 PROGRAMS FOR COMMUNITY SERVICE 5 "SEC. 119. HIGHER EDUCATION INNOVATIVE PROGRAMS 6 FOR COMMUNITY SERVICE. 7 "(a) PURPOSE.-It is the purpose of this part to ex- 8 pand participation in community service by supporting in- 9 novative community service programs carried out through 10 institutions of higher education, acting as civic institutions 11 to meet the human, educational, environmental, or public 12 safety needs of neighboring communities. 13 "(b) GENERAL AUTHORITY.-The Corporation, in 14 consultation with the Secretary of Education, is author- 15 ized to make grants to, and enter into contracts with, in- 16 stitutions of higher education (including a combination of 17 such institutions), and partnerships comprised of such in- 18 stitutions and of other public agencies or not-for-profit 19 private organizations, to pay for the Federal share of the 20 cost of- 21 "(1) enabling such an institution or partnership 22 to create or expand an organized community service 23 program that- 114 1 "(A) engenders a sense of social respon- 2 sibility and commitment to the community in 3 which the institution is located; and 4 "(B) provides projects for participants, 5 who shall be students, faculty, administration, 6 or staff of the institution, or residents of the 7 community; 8 "(2) supporting student-initiated and student- 9 designed community service projects through the 10 program; 11 "(3) facilitating the integration of community 12 service carried out under the program into academic 13 curricula, including integration of clinical programs 14 into the curriculum for students in professional 15 schools, so that students can obtain credit for their 16 community service projects; 17 "(4) supplementing the funds available to carry 18 out work-study programs under part C of title IV of 19 the Higher Education Act of 1965 (42 U.S.C. 2751 20 et seq.) to support service-learning and community 21 service through the community service program; 22 "(5) strengthening the service infrastructure 23 within institutions of higher education in the United 24 States through the program; and 115 1 "(6) providing for the training of teachers, pro- 2 spective teachers, related education personnel, and 3 community leaders in the skills necessary to develop, 4 supervise, and organize service-learning. 5 "(c) FEDERAL SHARE.- 6 "(1) SHARE.- 7 "(A) IN GENERAL.-The Federal share of 8 the cost of carrying out a community service 9 project for which a grant or contract is awarded 10 under this part may not exceed 50 percent. 11 "(B) CALCULATION.-Each recipient of as- 12 sistance under this part shall comply with sec- 13 tion 116(a)(2). 14 "(2) WAIVER.-The Chairperson may waive the 15 requirements of paragraph (1), in whole or in part, 16 as provided in section 116(b). 17 "(d) APPLICATION FOR GRANT.- 18 "(1) SUBMISSION.-To receive a grant or enter 19 into a contract under this part, an institution or 20 partnership described in subsection (b) shall pre- 21 pare, submit to the Corporation, and obtain approval 22 of, an application at such time and in such manner 23 as the Chairperson may reasonably require. 24 "(2) CONTENTs.-An application submitted 25 under paragraph (1) shall contain- 116 1 "(A) such information as the Chairperson 2 may reasonably require, such as a description 3 of- 4 "(i) the proposed program to be es- 5 tablished with assistance provided under 6 the grant or contract; 7 "(ii) the human, educational, environ- 8 mental, or public safety service that par- 9 ticipants will perform and the community 10 need that will be addressed under such 11 program; 12 "(iii) whether or not students will re- 13 ceive academic credit for community serv- 14 ice projects under the program; 15 "(iv) the procedure for training super- 16 visors and participants and for supervising 17 and organizing participants in such pro- 18 gram; 19 "(v) the procedures to ensure that the 20 program includes the age-appropriate 21 learning component described in section 22 114(d)(5)(B); 23 "(vi) the roles played by students and 24 community members, including service re- 117 1 cipients, in the design and implementation 2 of the program; and 3 "(vii) the budget for the program; 4 "(B) assurances that- 5 "(i) prior to the placement of a partic- 6 ipant, the applicant will consult with any 7 local labor organization representing em- 8 ployees in the area who are engaged in the 9 same or similar work as that proposed to 10 be carried out by such program, to prevent 11 the displacement and protect the rights of 12 such employees; and 13 "(ii) the applicant will comply with 14 the nonduplication and nondisplacement 15 provisions of section 177 and grievance 16 procedure requirements of section 176(f); 17 and 18 "(C) such other assurances as the Chair- 19 person may reasonably require. 20 "(e) PRIORITY.- 21 "(1) IN GENERAL.-In making grants and en- 22 tering into contracts under subsection (b), the Cor- 23 poration shall give priority to applicants that submit 24 applications containing proposals that- 118 1 "(A) demonstrate the commitment of the 2 institution of higher education, other than by 3 demonstrating the commitment of the students, 4 to supporting the community service projects 5 carried out under the program; 6 "(B) specify the manner in which the insti- 7 tution will promote faculty, administration, and 8 staff participation in the community service 9 projects; 10 "(C) specify the manner in which the insti- 11 tution will provide service to the community 12 through organized programs, including, where 13 appropriate, clinical programs for students in 14 professional schools; 15 "(D) describe any partnership that will 16 participate in the community service projects, 17 such as a partnership comprised of- 18 "(i) the institution; 19 "(ii)(I) a community-based agency; 20 "(II) a local government agency; or 21 "(III) a not-for-profit entity that 22 serves or involves school-age youth or older 23 adults; and 24 "(iii) a student organization; 119 1 "(E) demonstrate community involvement 2 in the development of the proposal; 3 "(F) specify that the institution will use 4 such assistance to strengthen the service infra- 5 structure in institutions of higher education; or 6 "(G) with respect to projects involving de- 7 livery of service, specify projects that involve 8 leadership development of school-age youth. 9 "(2) DETERMINATION.-In giving priority to 10 applicants under paragraph (1), the Corporation 11 shall give increased priority to such an applicant for 12 each characteristic described in subparagraphs (A) 13 through (G) of paragraph (1) that is reflected in the 14 application submitted by the applicant. 15 "(f) NATIONAL SERVICE EDUCATIONAL AWARD.-A 16 participant in a program funded under this part shall be 17 eligible for the national service educational award de- 18 scribed in subtitle D, if the participant served in an ap- 19 proved national service position. 20 "(g) DEFINITION.-Notwithstanding section 21 101(28), as used in this part, the term 'student' means 22 an individual who is enrolled in an institution of higher 23 education on a full- or part-time basis. 120 1 "PART III-GENERAL PROVISIONS 2 "SEC. 120. AVAILABILITY OF APPROPRIATIONS. 3 "Of the aggregate amount appropriated to carry out 4 this subtitle for each fiscal year- 5 "(1) a sum equal to 75 percent of such aggre- 6 gate amount shall be available to carry out part I, 7 of which- 8 "(A) 85 percent of such sum shall be avail- 9 able to carry out subpart A; and 10 "(B) 15 percent of such sum shall be avail- 11 able to carry out subpart B; and 12 "(2) a sum equal to 25 percent of such aggre- 13 gate amount shall be available to carry out part II.". 14 (c) TABLE OF CONTENTS.-Section 1(b) of the Na- 15 tional and Community Service Act of 1990 (Public Law 16 101-610; 104 Stat. 3127) is amended by striking the 17 items relating to subtitle B of title I of such Act and in- 18 serting 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. 121 "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. "PART III-GENERAL PROVISIONS "Sec. 120. Availability of appropriations.". 1 SEC. 104. QUALITY AND INNOVATION ACTIVITIES. 2 (a) REPEAL.-Subtitle E of title I of the National 3 and Community Service Act of 1990 (42 U.S.C. 12591 4 et seq.) is repealed. 5 (b) TRANSFER.-Title I of the National and Commu- 6 nity Service Act of 1990 is amended— 7 (1) by redesignating subtitle H (42 U.S.C. 8 12653 et seq.) as subtitle E; 9 (2) by inserting subtitle E (as redesignated by 10 paragraph (1) of this subsection) after subtitle D; 11 and 12 (3) by redesignating sections 195 through 1950 13 as sections 151 through 166, respectively. 14 (c) INVESTMENT FOR QUALITY AND INNOVATION.- 15 Title I of the National and Community Service Act of 122 1 1990 (as amended by subsection (b) of this section) is 2 amended by adding at the end the following new subtitle: 3 "Subtitle H-Investment for 4 Quality and Innovation 5 "SEC. 198. ADDITIONAL CORPORATION ACTIVITIES TO SUP- 6 PORT NATIONAL SERVICE. 7 "(a) METHODS OF CONDUCTING ACTIVITIES.-The 8 Corporation may carry out this section directly or through 9 grants, contracts, and cooperative agreements with other 10 entities. 11 "(b) INNOVATION AND QUALITY IMPROVEMENT.- 12 "(1) ACTIVITIES.-The Corporation may under- 13 take activities to improve the quality of national 14 service programs and to support innovative and 15 model programs, including- 16 "(A) programs under subtitle B or C for 17 rural youth; 18 "(B) employer-based retiree programs; 19 "(C) intergenerational programs; 20 "(D) programs involving individuals with 21 disabilities as participants providing service; 22 and 23 "(E) programs sponsored by Governors. 24 "(2) INTERGENERATIONAL PROGRAM.-An 25 intergenerational program referred to in paragraph 123 1 (1)(C) may include a program in which older adults 2 provide services to children who participate in Head 3 Start programs. 4 "(c) SUMMER PROGRAMS.-The Corporation may 5 support service programs intended to be carried out be- 6 tween May 1 and October 1, except that such a program 7 may also include a year-round component. 8 "(d) COMMUNITY-BASED AGENCIES.-The Corpora- 9 tion may provide training and technical assistance and 10 other assistance to service sponsors and other community- 11 based agencies that provide volunteer placements in order 12 to improve the ability of such agencies to use participants 13 and other volunteers in a manner that results in high-qual- 14 ity service and a positive service experience for the partici- 15 pants and volunteers. 16 "(e) IMPROVE ABILITY To APPLY FOR ASSIST- 17 ANCE.-The Corporation may provide training and tech- 18 nical assistance to individuals, programs, local labor orga- 19 nizations, State educational agencies, State commissions, 20 local educational agencies, local governments, community- 21 based agencies, and other entities to enable them to apply 22 for funding under one of the national service laws, to con- 23 duct high-quality programs, to evaluate such programs, 24 and for other purposes. 124 1 "(f) NATIONAL SERVICE FELLOWSHIPS.-The Cor- 2 poration may award national service fellowships. 3 "(g) CONFERENCES AND MATERIALS.-The Corpora- 4 tion may organize and hold conferences, and prepare and 5 publish materials, to disseminate information and promote 6 the sharing of information among programs for the pur- 7 pose of improving the quality of programs and projects. 8 "(h) PEACE CORPS AND VISTA TRAINING.-The 9 Corporation may provide training assistance to selected in- 10 dividuals who volunteer to serve in the Peace Corps or a 11 program authorized under title I of the Domestic Volun- 12 teer Service Act of 1973 (42 U.S.C. 4951 et seq.). The 13 training shall be provided as part of the course of study 14 of the individual at an institution of higher education, 15 shall involve service-learning, and shall cover appropriate 16 skills that the individual will use in the Peace Corps or 17 VISTA. 18 "(i) PROMOTION AND RECRUITMENT.-The Corpora- 19 tion may conduct a campaign to solicit funds for the Na- 20 tional Service Trust and other programs and activities au- 21 thorized under the national service laws and to promote 22 and recruit participants for programs that receive assist- 23 ance under the national service laws. 24 "(j) TRAINING.-The Corporation may support na- 25 tional and regional participant and supervisor training, in- 125 1 cluding leadership training and training in specific types 2 of service and in building the ethic of civic responsibility. 3 "(k) RESEARCH.-The Corporation may support re- 4 search on national service, including service-learning. 5 "(1) INTERGENERATIONAL SUPPORT.-The Corpora- 6 tion may assist programs in developing a service compo- 7 nent that combines students, out-of-school youths, and 8 older adults as participants to provide needed community 9 services. 10 "(m) PLANNING COORDINATION.-The Corporation 11 may coordinate community-wide planning among pro- 12 grams and projects. 13 "(n) YOUTH LEADERSHIP.-The Corporation may 14 support activities to enhance the ability of youth and 15 young adults to play leadership roles in national service. 16 "(o) NATIONAL PROGRAM IDENTITY.-The Corpora- 17 tion may support the development and dissemination of 18 materials, including training materials, and arrange for 19 uniforms and insignia, designed to promote unity and 20 shared features among programs that receive assistance 21 under the national service laws. 22 "(p) SERVICE-LEARNING.-The Corporation shall 23 support innovative programs and activities that promote 24 service-learning. 126 1 "SEC. 198A. CLEARINGHOUSES. 2 "(a) ASSISTANCE.-The Corporation shall provide as- 3 sistance to appropriate entities to establish one or more 4 clearinghouses, including the clearinghouse described in 5 section 118. 6 "(b) APPLICATION.-To be eligible to receive assist- 7 ance under subsection (a), an entity shall submit an appli- 8 cation to the Corporation at such time, in such manner, 9 and containing such information as the Corporation may 10 require. 11 "(c) FUNCTION OF CLEARINGHOUSES.-An entity 12 that receives assistance under subsection (a) may- 13 "(1) assist entities carrying out State or local 14 community service programs with needs assessments 15 and planning; 16 "(2) conduct research and evaluations concern- 17 ing community service; 18 "(3)(A) provide leadership development and 19 training to State and local community service pro- 20 gram administrators, supervisors, and participants; 21 and 22 "(B) provide training to persons who can pro- 23 vide the leadership development and training de- 24 scribed in subparagraph (A); 127 1 "(4) facilitate communication among entities 2 carrying out community service programs and par- 3 ticipants; 4 "(5) provide information, curriculum materials, 5 technical assistance relating to planning and oper- 6 ation of community service programs, to States and 7 local entities eligible to receive funds under this title; 8 "(6)(A) gather and disseminate information on 9 successful community service programs, components 10 of such successful programs, innovative youth skills 11 curriculum, and community service projects; and 12 "(B) coordinate the activities of the clearing- 13 house with appropriate entities to avoid duplication 14 of effort; 15 "(7) make recommendations to State and local 16 entities on quality controls to improve the delivery of 17 community service programs and on changes in the 18 programs under this title; and 19 "(8) carry out such other activities as the 20 Chairperson determines to be appropriate.". 21 "SEC. 198B. PRESIDENTIAL AWARDS FOR SERVICE. 22 "(a) PRESIDENTIAL AWARDS.- 23 "(1) IN GENERAL.-The President, acting 24 through the Corporation, may make Presidential 128 1 awards for service to individuals providing signifi- 2 cant service, and to outstanding service programs. 3 "(2) INDIVIDUALS AND PROGRAMS.-Notwith- 4 standing section 101(17)- 5 "(A) an individual receiving an award 6 under this subsection need not be a participant 7 in a program authorized under this Act; and 8 "(B) a program receiving an award under 9 this subsection need not be a program author- 10 ized under this Act. 11 "(3) NATURE OF AWARD.-In making an award 12 under this section to an individual or program, the 13 President, acting through the Corporation- 14 "(A) is authorized to incur necessary ex- 15 penses for the honorary recognition of the indi- 16 vidual or program; and 17 "(B) is not authorized to make a cash 18 award to such individual or program. 19 "(b) INFORMATION.-The President, acting through 20 the Corporation, shall ensure that information concerning 21 individuals and programs receiving awards under this sec- 22 tion is widely disseminated." 23 (d) TABLE OF CONTENTS.- 24 (1) CIVILIAN COMMUNITY CORPS.-Section 1(b) 25 of the National and Community Service Act of 1990 129 1 (Public Law 101-610; 104 Stat. 3127) is amended 2 by striking the items relating to subtitle E of title 3 I of such Act and inserting the following: "Subtitle E-Civilian Community Corps "Sec. 151. Purpose. "Sec. 152. Establishment of Civilian Community Corps Demonstration Pro- gram. "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." 4 (2) QUALITY AND INNOVATION.-Section 1(b) 5 of the National and Community Service Act of 1990 6 (Public Law 101-610; 104 Stat. 3127) is amended 7 by striking the items relating to subtitle H of title 8 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.". 9 (e) TECHNICAL AND CONFORMING AMENDMENTS.- 10 (1) NATIONAL DEFENSE AUTHORIZATION ACT 11 FOR FISCAL YEAR 1993.- 12 (A) Section 1091(f)(2) of the National De- 13 fense Authorization Act for Fiscal Year 1993 130 1 (Public Law 102-484) is amended by striking 2 "195G" and inserting "158". 3 (B) Paragraphs (1) and (2) of section 4 1092(b), and sections 1092(c), 1093(a), and 5 1094(a) of such Act are amended by striking 6 "195A" and inserting "152". 7 (C) Sections 1091(f)(2), 1092(b)(1), and 8 1094(a), and subsections (a) and (c) of section 9 1095 of such Act are amended by striking 10 "subtitle H" and inserting "subtitle E". 11 (D) Section 1094(b)(1) and subsections (b) 12 and (c)(1) of section 1095 of such Act are 13 amended by striking "subtitles B, C, D, E, F, 14 and G" and inserting "subtitles B, C, D, F, G, 15 and H". 16 (2) NATIONAL AND COMMUNITY SERVICE ACT 17 OF 1990. 18 (A) Section 153(a) of such Act (as redesig- 19 nated in subsection (b)(3) of this section) (42 20 U.S.C. 12653b(a)) is amended by striking 21 "195A(a)" and inserting "152(a)". 22 (B) Section 154(a) of such Act (as redesig- 23 nated in subsection (b)(3) of this section) (42 24 U.S.C. 12653c(a)) is amended by striking 25 "195A(a)" and inserting "152(a)". 131 1 (C) Section 155 of such Act (as redesig- 2 nated in subsection (b)(3) of this section) (42 3 U.S.C. 12653d) is amended- 4 (i) in subsection (a), by striking 5 "195H(c)(1)" and inserting "159(c)(1)"; 6 (ii) in subsection (c)(2), by striking 7 "195H(c)(2)" and inserting 159(c)(2); 8 and 9 (iii) in subsection (d)(3), by striking 10 "195K(a)(3)" and inserting "162(a)(3)". 11 (D) Section 156 of such Act (as redesig- 12 nated in subsection (b)(3) of this section) (42 13 U.S.C. 12653e) is amended- 14 (i) in subsection (c)(1), by striking 15 "195H(c)(2)" and inserting "159(c)(2)"; 16 and 17 (ii) in subsection (d), by striking 18 "195K(a)(3)" and inserting "162(a)(3)". 19 (E) Section 159 of such Act (as redesig- 20 nated in subsection (b)(3) of this section) (42 21 U.S.C. 12653h) is amended- 22 (i) in subsection (a)- 23 (I) by striking "195A" and in- 24 serting "152"; and 132 1 (II) by striking "195" and in- 2 serting "151"; and 3 (ii) in subsection (c)(2)(C)(i), by 4 striking "195K(a)(2)" and inserting "sec- 5 tion 162(a)(2)". 6 (F) Section 161(b)(1)(B) of such Act (as 7 redesignated in subsection (b)(3) of this sec- 8 tion) (42 U.S.C. 12653j(b)(1)(B)) is amended 9 by striking "195K(a)(3)" and inserting 10 "162(a)(3)". 11 (G) Section 162(a)(2)(A) of such Act (as 12 redesignated in subsection (b)(3) of this sec- 13 tion) (42 U.S.C. 12653k(a)(2)(A)) is amended 14 by striking "195(3)" and inserting "151(3)". 15 (H) Section 166 of such Act (as redesig- 16 nated in subsection (b)(3) of this section) (42 17 U.S.C. 126530) is amended— 18 (i) in paragraph (2), by striking 19 "195D" and inserting "155"; 20 (ii) in paragraph (8), by striking 21 "195A" and inserting "152"; 22 (iii) in paragraph (10), by striking 23 "195D(d)" and inserting "155(d)"; and 24 (iv) in paragraph (11), by striking 25 "195D(c)" and inserting "155(c)". 133 1 (f) EXTENSION OF AUTHORITY TO CONDUCT CIVIL- 2 IAN COMMUNITY CORPS.-Section 1092(c) of the National 3 Defense Authorization Act for Fiscal Year 1993 (Public 4 Law 102-484; 106 Stat. 2534), as amended by subsection 5 (e)(1) of this section, is further amended by adding at the 6 end the following new sentence: "The amount made avail- 7 able for the Civilian Community Corps Demonstration 8 Program pursuant to this subsection shall remain avail- 9 able for expenditure during fiscal years 1993 and 1994." 10 (g) ADDITIONAL AMENDMENT REGARDING CIVILIAN 11 COMMUNITY CORPS.-Section 158 of the National and 12 Community Service Act of 1990 (as redesignated in sub- 13 section (b)(3) of this section) (42 U.S.C. 12653g) is 14 amended by striking subsections (f), (g), and (h) and in- 15 serting the following new subsections: 16 "(f) NATIONAL SERVICE EDUCATIONAL AWARDS.- 17 A Corps member who successfully completes a period of 18 agreed service in the Corps may receive the national serv- 19 ice educational award described in subtitle D if the Corps 20 member- 21 "(1) serves in an approved national service po- 22 sition; and 23 "(2) satisfies the eligibility requirements speci- 24 fied in section 146 with respect to service in that ap- 25 proved national service position. 134 1 "(g) ALTERNATIVE BENEFIT.-If a Corps member 2 who successfully completes a period of agreed service in 3 the Corps is ineligible for the national service educational 4 award described in subtitle D, the Director may provide 5 for the provision of a suitable alternative benefit for the 6 Corps member." 7 Subtitle B-Related Provisions 8 SEC. 111. DEFINITIONS. 9 (a) IN GENERAL-Section 101 of the National and 10 Community Service Act of 1990 (42 U.S.C. 12511) is 11 amended to read as follows: 12 "SEC. 101. DEFINITIONS. 13 "For purposes of this title: 14 "(1) ADULT VOLUNTEER.-The term 'adult vol- 15 unteer' means an individual, such as an older adult, 16 an individual with a disability, a parent, or an em- 17 ployee of a business or public or private not-for-prof- 18 it agency, who— 19 "(A) works without financial remuneration 20 in an educational institution to assist students 21 or out-of-school youth; and 22 "(B) is beyond the age of compulsory 23 school attendance in the State in which the edu- 24 cational institution is located. 135 1 "(2) APPROVED NATIONAL SERVICE POSI- 2 TION.-The term 'approved national service position' 3 means a national service position designated by the 4 Corporation as a position that includes a national 5 service educational award described in section 147 6 as one of the benefits to be provided for successful 7 service in the position. 8 "(3) CARRY OUT.-The term 'carry out', when 9 used in connection with a national service program 10 described in section 122, means the planning, estab- 11 lishment, operation, expansion, or replication of the 12 program. 13 "(4) CHAIRPERSON.-The term 'Chairperson' 14 means the Chairperson and Director of the Corpora- 15 tion appointed under section 193. 16 "(5) COMMUNITY-BASED AGENCY.-The term 17 'community-based agency' means a private not-for- 18 profit organization that is representative of a com- 19 munity and that is engaged in meeting human, edu- 20 cational, environmental, or public safety community 21 needs. 22 "(6) CORPORATION.-The term 'Corporation' 23 means the Corporation for National Service estab- 24 lished under section 191. 136 1 "(7) ECONOMICALLY DISADVANTAGED.-The 2 term 'economically disadvantaged' means, with re- 3 spect to an individual, an individual who is deter- 4 mined by the Chairperson to be low-income accord- 5 ing to the latest available data from the Department 6 of Commerce. 7 "(8) ELEMENTARY SCHOOL.-The term 'ele- 8 mentary school' has the same meaning given such 9 term in section 1471(8) of the Elementary and Sec- 10 ondary Education Act of 1965 (20 U.S.C. 2891(8)). 11 "(9) INDIAN.-The term 'Indian' means a per- 12 son who is a member of an Indian tribe. 13 (10) INDIAN LANDS.-The term 'Indian lands' 14 means any real property owned by an Indian tribe, 15 any real property held in trust by the United States 16 for an Indian or Indian tribe, and any real property 17 held by an Indian or Indian tribe that is subject to 18 restrictions on alienation imposed by the United 19 States. 20 "(11) INDIAN TRIBE.-The term 'Indian tribe' 21 means an Indian tribe, band, nation, or other orga- 22 nized group or community, including any Native vil- 23 lage, Regional Corporation, or Village Corporation, 24 as defined in subsection (c), (g), or (j), respectively, 25 of section 3 of the Alaska Native Claims Settlement 137 1 Act (43 U.S.C. 1602 (c), (g), or (j)), that is recog- 2 nized as eligible for the special programs and serv- 3 ices provided by the United States under Federal 4 law to Indians because of their status as Indians. 5 "(12) INSTITUTION OF HIGHER EDUCATION.- 6 The term 'institution of higher education' has the 7 same meaning given such term in section 1201(a) of 8 the Higher Education Act of 1965 (20 U.S.C. 9 1141(a)). 10 "(13) LOCAL EDUCATIONAL AGENCY.-The 11 term 'local educational agency' has the same mean- 12 ing given such term in section 1471(12) of the Ele- 13 mentary and Secondary Education Act of 1965 (20 14 U.S.C. 2891(12)). 15 "(14) NATIONAL SERVICE LAWS.-The term 16 'national service laws' means this Act and the Do- 17 mestic Volunteer Service Act of 1973 (42 U.S.C. 18 4950 et seq.). 19 "(15) OUT-OF-SCHOOL YOUTH.-The term 'out- 20 of-school youth' means an individual who- 21 "(A) has not attained the age of 27; 22 "(B) has not completed college or the 23 equivalent thereof; and 138 1 "(C) is not enrolled in an elementary or 2 secondary school or institution of higher edu- 3 cation. 4 (16) PARTICIPANT.- 5 "(A) IN GENERAL.-The term 'participant' 6 means— 7 "(i) for purposes of subtitle C, an in- 8 dividual in an approved national service 9 position; and 10 "(ii) for purposes of any other provi- 11 sion of this Act, an individual enrolled in 12 a program that receives assistance under 13 this title. 14 "(B) RULE.-A participant shall not be 15 considered to be an employee of the program in 16 which the participant is enrolled. 17 "(17) PARTNERSHIP PROGRAM.-The term 18 'partnership program' means a program through 19 which an adult volunteer, a public or private not-for- 20 profit agency, an institution of higher education, or 21 a business assists a local educational agency. 22 (18) PROGRAM.-The term 'program', except 23 when used as part of the term 'academic program', 24 means a program described in section 111(a) (other 25 than a program referred to in paragraph (3) (B) of 139 1 such section), 117A(a), 119(b)(1), or 122(a), in 2 paragraph (1) or (2) of section 152(b), or in section 3 198. 4 (19) PROJECT.-The term 'project' means an 5 activity, carried out through a program that receives 6 assistance under this title, that results in a specific 7 identifiable service or improvement that otherwise 8 would not be done with existing funds, and that does 9 not duplicate the routine services or functions of the 10 employer to whom participants are assigned. 11 "(20) SCHOOL-AGE YOUTH.-The term 'school- 12 age youth' means an individual between the ages of 13 5 and 17, inclusive. 14 "(21) SECONDARY SCHOOL.-The term 'second- 15 ary school' has the same meaning given such term 16 in section 1471(21) of the Elementary and Second- 17 ary Education Act of 1965 (20 U.S.C. 2891(21)). 18 "(22) SERVICE-LEARNING.-The term 'service- 19 learning' means a method- 20 "(A) under which students or participants 21 learn and develop through active participation 22 in thoughtfully organized service that- 23 "(i) is conducted in and meets the 24 needs of a community; 140 1 "(ii) is coordinated with an elemen- 2 tary school, secondary school, institution of 3 higher education, or community service 4 program, and with the community; and 5 "(iii) helps foster civic responsibility; 6 and 7 "(B) that- 8 "(i) is integrated into and enhances 9 the academic curriculum of the students, 10 or the educational components of the com- 11 munity service program in which the par- 12 ticipants are enrolled; and 13 "(ii) provides structured time for the 14 students or participants to reflect on the 15 service experience. 16 "(23) SERVICE-LEARNING COORDINATOR.-The 17 term 'service-learning coordinator' means an individ- 18 ual who provides services as described in section 19 subsection (a)(3) or (b) of section 111. 20 "(24) SERVICE SPONSOR.-The term 'service 21 sponsor' means an organization, or other entity, that 22 has been selected to provide a placement for a par- 23 ticipant. 24 "(25) STATE.-The term 'State' means each of 25 the several States, the District of Columbia, the 141 1 Commonwealth of Puerto Rico, the Virgin Islands, 2 Guam, American Samoa, and the Commonwealth of 3 the Northern Mariana Islands. The term also in- 4 cludes Palau, until such time as the Compact of 5 Free Association is ratified. 6 "(26) STATE COMMISSION.-The term 'State 7 Commission' means a State Commission on National 8 Service maintained by a State pursuant to section 9 178. Except when used in section 178, the term in- 10 cludes an alternative administrative entity for a 11 State approved by the Corporation under such sec- 12 tion to act in lieu of a State Commission. 13 "(27) STATE EDUCATIONAL AGENCY.-The 14 term 'State educational agency' has the same mean- 15 ing given such term in section 1471(23) of the Ele- 16 mentary and Secondary Education Act of 1965 (20 17 U.S.C. 2891(23)). 18 "(28) STUDENT.-The term 'student' means an 19 individual who is enrolled in an elementary or sec- 20 ondary school or institution of higher education on 21 a full- or part-time basis.". 22 (b) TECHNICAL AND CONFORMING AMENDMENTS.- 23 (1) Section 182(a)(2) of the National and Com- 24 munity Service Act of 1990 (42 U.S.C 12642(a)(2)) 25 is amended by striking "adult volunteer and partner- 142 1 ship" each place the term appears and inserting 2 "partnership". 3 (2) Section 182(a)(3) of the National and Com- 4 munity Service Act of 1990 (42 U.S.C 12642(a)(3)) 5 is amended by striking "adult volunteer and partner- 6 ship" and inserting "partnership". 7 (3) Section 441(c)(2) of the Higher Education 8 Act of 1965 (42 U.S.C. 2751(c)(2)) is amended by 9 striking "service opportunities or youth corps as de- 10 fined in section 101 of the National and Community 11 Service Act of 1990, and service in the agencies, in- 12 stitutions and activities designated in section 124(a) 13 of the National and Community Service Act of 14 1990" and inserting "a project, as defined in section 15 101(19) of the National and Community Service Act 16 of 1990 (42 U.S.C. 12511(18))". 17 (4) Section 1122(a)(2)(C) of the Higher Edu- 18 cation Act of 1965 (20 U.S.C. 1137a(a)(2)(C)) is 19 amended by striking "youth corps as defined in sec- 20 tion 101(30) of the National and Community Service 21 Act of 1990" and inserting "youth corps programs, 22 as described in section 122(a)(1) of the National 23 and Community Service Act of 1990". 24 (5) Section 1201(p) of the Higher Education 25 Act of 1965 (20 U.S.C. 1141(p)) is amended by 143 1 striking "section 101(22) of the National and Com- 2 munity Service Act of 1990" and inserting "section 3 101(22) of the National and Community Service Act 4 of 1990 (42 U.S.C. 12511(21))". 5 SEC. 112. AUTHORITY TO MAKE STATE GRANTS. 6 Section 102 of the National and Community Service 7 Act of 1990 (42 U.S.C. 12512) is repealed. 8 SEC. 113. FAMILY AND MEDICAL LEAVE. 9 (a) IN GENERAL.-Section 171 of the National and 10 Community Service Act of 1990 (42 U.S.C. 12631) is 11 amended to read as follows: 12 "SEC. 171. FAMILY AND MEDICAL LEAVE. 13 "(a) PARTICIPANTS IN PRIVATE, STATE, AND LOCAL 14 PROJECTS.-For purposes of title I of the Family and 15 Medical Leave Act of 1993 (29 U.S.C. 2601 et seq.), if- 16 "(1) a participant has provided service for the 17 period required by section 101(2)(A)(i) (29 U.S.C. 18 2611(2)(A)(i)), and has met the hours of service re- 19 quirement of section 101(2)(A)(ii), of such Act with 20 respect to a project; and 21 "(2) the service sponsor of the project is an em- 22 ployer described in section 101(4) of such Act (other 23 than an employing agency within the meaning of 24 subchapter V of chapter 63 of title 5, United States 25 Code), 144 1 the participant shall be considered to be an eligible em- 2 ployee of the service sponsor. 3 "(b) PARTICIPANTS IN FEDERAL PROJECTS.-For 4 purposes of subchapter V of chapter 63 of title 5, United 5 States Code, if- 6 "(1) a participant has provided service for the 7 period required by section 6381(1)(B) of such title 8 with respect to a project; and 9 "(2) the service sponsor of the project is an em- 10 ploying agency within the meaning of such sub- 11 chapter, 12 the participant shall be considered to be en employee of 13 the service sponsor.' 14 (b) TABLE OF CONTENTS.-Section 1(b) of the Na- 15 tional and Community Service Act of 1990 (Public Law 16 101-610; 104 Stat. 3127) is amended by striking the item 17 relating to section 171 of such Act and inserting the fol- 18 lowing: "Sec. 171. Family and medical leave.". 19 SEC. 114. REPORTS. 20 Section 172 of the National and Community Service 21 Act of 1990 (42 U.S.C. 12632) is amended- 22 (1) in subsection (a)(3)(A), by striking "sec- 23 tions 177 and 113(9)" and inserting "section 177"; 24 and 145 1 (2) in subsection (b)(1), by striking "this title" 2 and inserting "the national service laws". 3 SEC. 115. NONDISCRIMINATION. 4 Section 175 of the National and Community Service 5 Act of 1990 (42 U.S.C. 12635) is amended to read as 6 follows: 7 "SEC. 175. NONDISCRIMINATION. 8 "(a) IN GENERAL.- 9 "(1) BASIS.-An individual with responsibility 10 for the operation of a project that receives assistance 11 under this title shall not discriminate against a par- 12 ticipant in, or member of the staff of, such project 13 on the basis of race, color, national origin, sex, age, 14 or political affiliation of such participant or member, 15 or on the basis of disability, if the participant or 16 member is a qualified individual with a disability. 17 "(2) DEFINITION.-As used in paragraph (1), 18 the term 'qualified individual with a disability' has 19 the meaning given the term in section 101(8) of the 20 Americans with Disabilities Act of 1990 (42 U.S.C. 21 12111(8)). 22 "(b) FEDERAL FINANCIAL ASSISTANCE.-Any assist- 23 ance provided under this title shall constitute Federal fi- 24 nancial assistance for purposes of title VI of the Civil 25 Rights Act of 1964 (42 U.S.C. 2000d et seq.), title IX 146 1 of the Education Amendments of 1972 (20 U.S.C. 1681 2 et seq.), section 504 of the Rehabilitation Act of 1973 (29 3 U.S.C. 794), and the Age Discrimination Act of 1975 (42 4 U.S.C. 6101 et seq.). 5 "(c) RELIGIOUS DISCRIMINATION.- 6 "(1) IN GENERAL.-Except as provided in para- 7 graph (2), an individual with responsibility for the 8 operation of a project that receives assistance under 9 this title shall not discriminate on the basis of reli- 10 gion against a participant in such project or a mem- 11 ber of the staff of such project who is paid with 12 funds received under this title. 13 "(2) EXCEPTION.-Paragraph (1) shall not 14 apply to the employment, with assistance provided 15 under this title, of any member of the staff, of a 16 project that receives assistance under this title, who 17 was employed with the organization operating the 18 project on the date the grant under this title was 19 awarded. 20 "(d) RULES AND REGULATIONS.-The Chairperson 21 shall promulgate rules and regulations to provide for the 22 enforcement of this section that shall include provisions 23 for summary suspension of assistance for not more than 24 30 days, on an emergency basis, until notice and an oppor- 25 tunity to be heard can be provided." 147 1 SEC. 116. NOTICE, HEARING, AND GRIEVANCE PROCE- 2 DURES. 3 (a) DECERTIFICATION OF POSITIONS.-Section 4 176(a) of the National and Community Service Act of 5 1990 (42 U.S.C. 12636(a)) is amended- 6 (1) in paragraph (1), by inserting ", or revoke 7 the designation of positions, related to the grant or 8 contract, as approved national service positions," be- 9 fore "whenever the Commission"; and 10 (2) in paragraph (2)(B), by inserting "or re- 11 voked" after "terminated". 12 (b) CONSTRUCTION.-Section 176(e) of such Act (42 13 U.S.C. 12636(e)) is amended by adding before the period 14 the following ", other than assistance provided pursuant 15 to this Act". 16 (c) GRIEVANCE PROCEDURE.-Section 176(f) of such 17 Act is amended to read as follows: 18 "(f) GRIEVANCE PROCEDURE.- 19 "(1) IN GENERAL.-A State or local applicant 20 that receives assistance under this title shall estab- 21 lish and maintain a procedure for the filing and ad- 22 judication of grievances from participants, labor or- 23 ganizations, and other interested individuals con- 24 cerning projects that receive assistance under this 25 title, including grievances regarding proposed place- 26 ments of such participants in such projects. 148 1 "(2) DEADLINE FOR GRIEVANCES.-Excep for 2 a grievance that alleges fraud or criminal activity, a 3 grievance shall be made not later than 1 year after 4 the date of the alleged occurrence of the event that 5 is the subject of the grievance. 6 "(3) DEADLINE FOR HEARING AND DECI- 7 SION.- 8 "(A) HEARING.-A hearing on any griev- 9 ance conducted under this subsection shall be 10 conducted not later than 30 days after the fil- 11 ing of such grievance. 12 "(B) DECISION.-A decision on any such 13 grievance shall be made not later than 60 days 14 after the filing of such grievance. 15 "(4) ARBITRATION.- 16 "(A) IN GENERAL.- 17 "(i) JOINTLY SELECTED ARBITRA- 18 TOR.-In the event of a decision on a 19 grievance that is adverse to the party who 20 filed such grievance, or 60 days after the 21 filing of such grievance if no decision has 22 been reached, such party shall be per- 23 mitted to submit such grievance to binding 24 arbitration before a qualified arbitrator 149 1 who is jointly selected and independent of 2 the interested parties. 3 "(ii) APPOINTED ARBITRATOR.-If 4 the parties cannot agree on an arbitrator, 5 the Chairperson shall appoint an arbitrator 6 from a list of qualified arbitrators within 7 15 days after receiving a request for such 8 appointment from one of the parties to the 9 grievance. 10 "(B) DEADLINE FOR PROCEEDING.-An 11 arbitration proceeding shall be held not later 12 than 45 days after the request for such arbitra- 13 tion proceeding, or, if the arbitrator is ap- 14 pointed by the Chairperson in accordance with 15 subparagraph (A)(ii), not later than 30 days 16 after the appointment of such arbitrator. 17 "(C) DEADLINE FOR DECISION.-A deci- 18 sion concerning a grievance shall be made not 19 later than 30 days after the date such arbitra- 20 tion proceeding begins. 21 "(D) COST.- 22 "(i) IN GENERAL.-Except as pro- 23 vided in clause (ii), the cost of an arbitra- 24 tion proceeding shall be divided evenly be- 25 tween the parties to the arbitration. 150 1 "(ii) EXCEPTION.-If a participant, 2 labor organization, or other interested indi- 3 vidual described in paragraph (1) prevails 4 under a binding arbitration proceeding, the 5 State, local agency, public or private not- 6 for-profit organization, or partnership of 7 such agencies and organizations, that is a 8 party to such grievance shall pay the total 9 cost of such proceeding and the attorneys' 10 fees of such participant, labor organiza- 11 tion, or individual, as the case may be. 12 "(5) PROPOSED PLACEMENT.-If a grievance is 13 filed regarding a proposed placement of a partici- 14 pant in a project that receives assistance under this 15 title, such placement shall not be made unless the 16 placement is consistent with the resolution of the 17 grievance pursuant to this subsection. 18 "(6) REMEDIES.-Remedies for a grievance 19 filed under this subsection include— 20 "(A) suspension of payments for assistance 21 under this title; 22 "(B) termination of such payments; 23 "(C) prohibition of the placement described 24 in paragraph (5); and 151 1 "(D) in a case in which the grievance in- 2 volves a violation of subsection (a) or (b) of sec- 3 tion 177 and the employer of the displaced em- 4 ployee is the recipient of assistance under this 5 title 6 "(i) reinstatement of the displaced 7 employee to the position held by such em- 8 ployee prior to displacement; 9 "(ii) payment of lost wages and bene- 10 fits of the displaced employee; 11 "(iii) reestablishment of other relevant 12 terms, conditions, and privileges of employ- 13 ment of the displaced employee; and 14 "(iv) such equitable relief as is nec- 15 essary to correct any violation of sub- 16 section (a) or (b) of section 177 or to 17 make the displaced employee whole. 18 "(7) ENFORCEMENT.-Suits to enforce arbitra- 19 tion awards under this section may be brought in 20 any district court of the United States having juris- 21 diction of the parties, without regard to the amount 22 in controversy and without regard to the citizenship 23 of the parties." 152 1 SEC. 117. NONDISPLACEMENT. 2 Section 177(b)(3) of the National and Community 3 Service Act of 1990 (42 U.S.C. 12637(b)(3)) is 4 amended— 5 (1) in subparagraph (B), to read as follows: 6 "(B) SUPPLANTATION OF HIRING.-A par- 7 ticipant in any program receiving assistance 8 under this title shall not perform any services 9 or duties, or engage in activities, that- 10 "(i) will supplant the hiring of em- 11 ployed workers; or 12 "(ii) are services, duties, or activities 13 with respect to which an individual has re- 14 call rights pursuant to a collective bargain- 15 ing agreement or applicable personnel pro- 16 cedures."; and 17 (2) in subparagraph (C)(iii), to read as follows: 18 "(iii) employee who- 19 "(I) is subject to a reduction in 20 force; or 21 "(II) has recall rights pursuant 22 to a collective bargaining agreement 23 or applicable personnel procedures;". 24 SEC. 118. EVALUATION. 25 Section 179 of the National and Community Service 26 Act of 1990 (42 U.S.C 12639) is amended- 153 1 (1) in subsection (a)- 2 (A) in the matter preceding paragraph (1), 3 by striking "this title" and inserting "the na- 4 tional service laws"; and 5 (B) in paragraph (2)- 6 (i) in the matter preceding 7 subpargraph (A), by striking "for purposes 8 of the reports required by subsection (j)," 9 and inserting "with respect to the pro- 10 grams authorized under subtitle C"; and 11 (ii) in subparagraph (A), by striking 12 "older American volunteer programs" and 13 inserting "National Senior Volunteer 14 Corps programs"; 15 (2) in subsection (g)- 16 (A) in the matter preceding paragraph (1), 17 by striking "subtitle D" and inserting "subtitle 18 C"; and 19 (B) in paragraphs (3) and (9), by striking 20 "older American volunteer programs" and in- 21 serting "National Senior Volunteer Corps pro- 22 grams"; and 23 (3) by striking subsections (i) and (j). 154 1 SEC. 119. ENGAGEMENT OF PARTICIPANTS. 2 Section 180 of the National and Community Service 3 Act of 1990 (42 U.S.C. 12640) is amended by striking 4 "post-service benefits" and inserting "national service 5 educational awards". 6 SEC. 120. CONTINGENT EXTENSION. 7 (a) IN GENERAL.-Section 181 of the National and 8 Community Service Act of 1990 (42 U.S.C. 12641) is 9 amended to read as follows: 10 "SEC. 181. CONTINGENT EXTENSION. 11 "Section 414 of the General Education Provisions 12 Act (20 U.S.C. 1226a) shall apply to this Act.". 13 (b) TABLE OF CONTENTS.-Section 1(b) of the Na- 14 tional and Community Service Act of 1990 (Public Law 15 101-610; 104 Stat. 3127) is amended by striking the item 16 relating to sections 181 of such Act and inserting the fol- 17 lowing: "Sec. 181. Contingent extension." 18 SEC. 121. REPEALS. 19 (a) IN GENERAL.-Subtitle F of title I of the Na- 20 tional and Community Service Act of 1990 (42 U.S.C. 21 12631 et seq.) is amended- 22 (1) by repealing sections 183, 185, and 186; 23 and 24 (2) by redesignating section 184 as section 183. 155 1 (b) TABLE OF CONTENTS.-Section 1(b) of the Na- 2 tional and Community Service Act of 1990 (Public Law 3 101-610; 104 Stat. 3127) is amended by striking the 4 items relating to sections 183, 184, and 185 of such Act 5 and inserting the following: "Sec. 183. Drug-free workplace requirements.". 6 TITLE II-ORGANIZATION 7 SEC. 201. STATE COMMISSIONS ON NATIONAL SERVICE. 8 (a) COMPOSITION AND DUTIES OF STATE COMMIS- 9 SIONS.-Subtitle F of title I of the National and Commu- 10 nity Service Act of 1990 is amended by striking section 11 178 (42 U.S.C. 12638) and inserting the following new 12 section: 13 "SEC. 178. STATE COMMISSIONS ON NATIONAL SERVICE. 14 "(a) EXISTENCE REQUIRED.- 15 "(1) STATE COMMISSION.-Except as provided 16 in paragraph (2), to be eligible to receive a grant or 17 allotment under subtitle B or C or to receive a dis- 18 tribution of approved national service positions 19 under subtitle C, a State shall maintain a State 20 Commission on National Service that satisfies the 21 requirements of this section. 22 "(2) ALTERNATIVE ADMINISTRATIVE ENTITY.- 23 The chief executive officer of a State may apply to 24 the Corporation for approval to use an alternative 25 administrative entity to carry out the duties other- 156 1 wise entrusted to a State Commission under this 2 Act. The chief executive officer shall ensure that any 3 alternative administrative entity used in lieu of a 4 State Commission still provides for the individuals 5 described in paragraphs (1) and (2) of subsection (c) 6 to play a significant policy-making role in carrying 7 out the duties otherwise entrusted to a State Com- 8 mission, including the submission of applications on 9 behalf of the State under sections 117B and 130. 10 "(b) APPOINTMENT AND SIZE.-Except as provided 11 in subsection (c)(3), the members of a State Commission 12 for a State shall be appointed by the chief executive officer 13 of the State. A State Commission shall consist of not less 14 than 7 voting members and not more than 13 voting mem- 15 bers. 16 "(c) COMPOSITION AND MEMBERSHIP.- 17 "(1) REQUIRED MEMBERS.-The State Com- 18 mission for a State shall include as voting members 19 at least one representative from each of the follow- 20 ing categories: 21 "(A) A national service program, such as 22 a youth corps program, a service program for 23 school-age youth, and a program in which older 24 Americans are participants. 25 "(B) Local governments in the State. 157 1 "(C) Local labor organizations. 2 "(2) SOURCES OF OTHER MEMBERS.-The 3 State Commission for a State may include as voting 4 members the following: 5 "(A) Representatives of community-based 6 organizations. 7 "(B) Members selected from among par- 8 ticipants in service programs who are youths. 9 "(C) Members selected from among edu- 10 cators. 11 "(D) Members selected from among ex- 12 perts in the delivery of human, educational, en- 13 vironmental, or public safety services to commu- 14 nities and persons. 15 "(E) Representatives of businesses and 16 business groups. 17 "(3) CORPORATION REPRESENTATIVE.-The 18 representative of the Corporation designated under 19 section 195(b) for a State shall be a voting member 20 of the State Commission for that State. 21 "(4) Ex OFFICIO STATE REPRESENTATIVES.- 22 The chief executive officer of a State may appoint as 23 nonvoting ex officio members of the State Commis- 24 sion for the State representatives selected from 25 among officers and employees of State agencies op- 158 1 erating community service, youth service, education, 2 social service, senior service, and job training pro- 3 grams. 4 "(5) LIMITATION ON NUMBER OF STATE EM- 5 PLOYEES AS MEMBERS.-The number of voting 6 members of a State Commission selected under 7 paragraph (1) or (2) who are officers or employees 8 of the State may not exceed 25 percent (reduced to 9 the nearest whole number) of the total membership 10 of the State Commission. 11 "(d) MISCELLANEOUS MATTERS.- 12 "(1) MEMBERSHIP BALANCE.-The chief execu- 13 tive officer of a State shall ensure that the member- 14 ship of the State Commission for the State is bal- 15 anced according to race, ethnic background, age, 16 and gender. Not more than 50 percent of the voting 17 members of a State Commission, plus one additional 18 member, may be from the same political party. 19 "(2) TERMS.-Each member of the State Com- 20 mission for a State shall serve for a term of 3 years, 21 except that the chief executive officer of a State 22 shall initially appoint a portion of the members to 23 terms of 1 year and 2 years. 24 "(3) VACANCIES.-As vacancies occur on a 25 State Commission, new members shall be appointed 159 1 by the chief executive of the State and serve for the 2 remainder of the term for which the predecessor of 3 such member was appointed. The vacancy shall not 4 affect the power of the remaining members to exe- 5 cute the duties of the State Commission. 6 "(4) COMPENSATION.-A member of a State 7 Commission shall not receive any additional com- 8 pensation by reason of service on the State Commis- 9 sion, except that the State may authorize the reim- 10 bursement of travel expenses, including a per diem 11 in lieu of subsistence, in the same manner as other 12 employees serving intermittently in the service of the 13 State. 14 "(5) CHAIRPERSON.-The voting members of a 15 State Commission shall elect one of the voting mem- 16 bers to serve as chairperson of the State Commis- 17 sion. 18 "(e) DUTIES OF A STATE COMMISSION.-The State 19 Commission for a State shall be responsible for the follow- 20 ing duties: 21 "(1) Preparation of a national service plan for 22 the State that- 23 "(A) covers a 3-year period; 24 "(B) is updated annually; and 160 1 "(C) contains such information as the 2 State Commission considers to be appropriate 3 or as the Corporation may require. 4 "(2) Preparation of the applications of the 5 State under sections 117B and 130 for financial as- 6 sistance. 7 "(3) Assistance in the preparation of the appli- 8 cation of the State educational agency for assistance 9 under section 113. 10 "(4) Preparation of the application of the State 11 under section 130 for the approval of service posi- 12 tions that include the national service educational 13 award described in subtitle D. 14 "(5) Assistance in the provision of health care 15 and child care benefits under section 140 to partici- 16 pants in national service programs that receive as- 17 sistance under section 121. 18 "(6) Development of a State system for the re- 19 cruitment and placement of participants in national 20 service programs that receive assistance under sec- 21 tion 121 and dissemination of information concern- 22 ing national service programs that receive assistance 23 and approved national service positions. 24 "(7) Administration of the grant program in 25 support of national service programs that is con- 161 1 ducted by the State using assistance provided to the 2 State under section 121, including selection, over- 3 sight, and evaluation of grant recipients. 4 "(8) Development of projects, training methods, 5 curriculum materials, and other materials and activi- 6 ties. related to national service programs that receive 7 assistance directly from the Corporation or from the 8 State using assistance provided under section 121. 9 "(f) ACTIVITY INELIGIBLE FOR ASSISTANCE.-A 10 State Commission may not directly carry out any national 11 service program that receives assistance under section 12 121. 13 "(g) DELEGATION.-Subject to such requirements as 14 the Corporation may prescribe, a State Commission may 15 delegate nonpolicymaking duties to a State agency or pub- 16 lic or private not-for-profit organization. 17 "(h) APPROVAL OF STATE COMMISSION OR ALTER- 18 NATIVE.- 19 "(1) SUBMISSION TO CORPORATION.-The chief 20 executive officer for a State shall notify the Corpora- 21 tion of the establishment or designation of the State 22 Commission for the State. The notification shall in- 23 clude a description of- 24 "(A) the composition and membership of 25 the State Commission; and 162 1 "(B) the authority of the State Commis- 2 sion regarding national service activities carried 3 out by the State. 4 "(2) APPROVAL OF ALTERNATIVE ADMINISTRA- 5 TIVE ENTITY.-Any use of an alternative adminis- 6 trative entity to carry out the duties of a State Com- 7 mission shall be subject to the approval of the Cor- 8 poration. 9 "(3) REJECTION.-The Corporation may reject 10 a State Commission if the Corporation determines 11 that the composition, membership, or duties of the 12 State Commission do not comply with the require- 13 ments of this section. The Corporation shall reject a 14 request to use an alternative administrative entity in 15 lieu of a State Commission if the Corporation deter- 16 mines that use of the alternative administrative en- 17 tity does not allow the individuals described in para- 18 graphs (1) and (2) of subsection (c) to play a sig- 19 nificant policy-making role in carrying out the duties 20 otherwise entrusted to a State Commission. If the 21 Corporation rejects a State Commission or alter- 22 native administrative entity under this paragraph, 23 the Corporation shall promptly notify the State of 24 the reasons for the rejection. 163 1 "(4) RESUBMISSION AND RECONSIDERATION. 2 The Corporation shall provide a State notified under 3 paragraph (3) with a reasonable opportunity to re- 4 vise the rejected State Commission or alternative ad- 5 ministrative entity. At the request of the State, the 6 Corporation shall provide technical assistance to the 7 State as part of the revision process. The Corpora- 8 tion shall promptly reconsider any resubmission of a 9 notification under paragraph (1) or application to 10 use an alternative administrative entity under para- 11 graph (2). 12 "(5) SUBSEQUENT CHANGES.-This subsection 13 shall also apply to any change in the composition or 14 duties of a State Commission or an alternative ad- 15 ministrative entity made after approval of the State 16 Commission or the alternative administrative en- 17 tity.". 18 (b) TABLE OF CONTENTS.-Section 1(b) of the Na- 19 tional and Community Service Act of 1990 (Public Law 20 101-610; 104 Stat. 3127) is amended by striking the item 21 relating to section 178 and inserting the following new 22 item: "Sec. 178. State Commissions on National Service." 23 (c) EFFECTIVE DATE.-The amendments made by 24 this section shall take effect on the date of the enactment 25 of this Act. 164 1 (d) TRANSITIONAL PROVISIONS.- 2 (1) USE OF ALTERNATIVES TO STATE COMMIS- 3 SION.-If a State does not have a State Commission 4 on National Service that satisfies the requirements 5 specified in section 178 of the National and Commu- 6 nity Services Act of 1990, as amended by subsection 7 (a), the Corporation for National Service may au- 8 thorize the chief executive of the State to use an ex- 9 isting agency of the State to perform the duties oth- 10 erwise reserved to a State Commission under sub- 11 section (e) of such section. 12 (2) APPLICATION OF SUBSECTION.-This sub- 13 section shall apply only during the 1-year period be- 14 ginning on the date of the enactment of this Act. 15 SEC. 202. INTERIM AUTHORITIES OF THE CORPORATION 16 FOR NATIONAL SERVICE AND ACTION AGEN- 17 CY. 18 (a) NATIONAL AND COMMUNITY SERVICE ACT OF 19 1990.-Subtitle G of title I of the National and Commu- 20 nity Service Act of 1990 (42 U.S.C. 12651) is amended 21 to read as follows: