Edward M. Kennedy Serve America Act/Title I/Subtitle D

Subtitle D—Amendments to Subtitle D (National Service Trust and Provision of National Service Educational Awards)

Sec. 1401. Availability of funds in the National Service Trust.

(a) Subtitle Heading—

The subtitle heading for subtitle D of title I is amended to read as follows:

`Subtitle D—National Service Trust and Provision of Educational Awards'.

(b) Establishment of Trust—

Section 145 (42 U.S.C. 12601) is amended—

(1) in subsection (a)—

(A) in paragraph (1)—

(i) in the matter preceding subparagraph (A), by striking `pursuant to section 501(a)(2)'; and

(ii) in subparagraph (A), by inserting after `national service educational awards' the following: `, summer of service educational awards, and silver scholar educational awards';

(B) in paragraph (2)—

(i) by striking `pursuant to section 196(a)(2)' and inserting `pursuant to section 196(a)(2), if the terms of such donations direct that the donated amounts be deposited in the National Service Trust'; and

(ii) by striking `and' at the end;

(C) by redesignating paragraph (3) as paragraph (4); and

(D) by inserting after paragraph (2) the following:

`(3) any amounts recovered by the Corporation pursuant to section 146A; and';

(2) in subsection (c), by striking `for payments of national service educational awards in accordance with section 148.' and inserting `for—

`(1) payments of national service educational awards, summer of service educational awards, and silver scholar educational awards in accordance with section 148; and

`(2) payments of interest in accordance with section 148(e).'; and

(3) in subsection (d)—

(A) in the subsection heading, by striking `Congress' and inserting `the Authorizing Committees';

(B) in the matter preceding paragraph (1), by striking `the Congress' and inserting `the authorizing committees';

(C) in paragraphs (2), (3), and (4), by inserting `, summer of service educational awards, or silver scholar awards' after `national service educational awards' each place the term appears; and

(D) in paragraph (4)—

(i) by inserting `, additional approved summer of service positions, and additional approved silver scholar positions' after `additional approved national service positions'; and

(ii) by striking `under subtitle C'.

Sec. 1402. Individuals eligible to receive an educational award from the Trust.

Section 146 (42 U.S.C. 12602) is amended—

(1) by striking the section heading and inserting the following:

`SEC. 146. INDIVIDUALS ELIGIBLE TO RECEIVE AN EDUCATIONAL AWARD FROM THE TRUST.'; and

(2) in subsection (a)—

(A) in the matter preceding paragraph (1)—

(i) by inserting `, summer of service educational award, or silver scholar educational award' after `national service educational award'; and

(ii) by striking `if the individual' and inserting `if the organization responsible for the individual's supervision in a national service program certifies that the individual';

(B) by striking paragraphs (1), (2), and (3) and inserting the following:

`(1) met the applicable eligibility requirements for the approved national service position, approved silver scholar position, or approved summer of service position, as appropriate, in which the individual served;

`(2)(A) for a full-time or part-time national service educational award, successfully completed the required term of service described in subsection (b)(1) in the approved national service position;

`(B) for a partial educational award in accordance with section 139(c)—

`(i) satisfactorily performed prior to being granted a release for compelling personal circumstances under such section; and

`(ii) completed at least 15 percent of the required term of service described in subsection (b) for the approved national service position;

`(C) for a summer of service educational award, successfully completed the required term of service described in subsection (b)(2) in an approved summer of service position, as certified through a process determined by the Corporation through regulations consistent with section 138(f); or

`(D) for a silver scholar educational award, successfully completed the required term of service described in subsection (b)(3) in an approved silver scholar position, as certified through a process determined by the Corporation through regulations consistent with section 138(f); and'.

(C) by redesignating paragraph (4) as paragraph (3);

(3) in subsection (b)—

(A) by striking `The term' and inserting the following:

`(1) APPROVED NATIONAL SERVICE POSITION— The term'; and

(B) by adding at the end the following:

`(2) APPROVED SUMMER OF SERVICE POSITION— The term of service for an approved summer of service position shall not be less than 100 hours of service during the summer months.

`(3) APPROVED SILVER SCHOLAR POSITION— The term of service for an approved silver scholar position shall be not less than 350 hours during a 1-year period.';

(4) by striking subsection (c) and inserting the following:

`(c) Limitation on Receipt of National Service Educational Awards— An individual may not receive, through national service educational awards and silver scholar educational awards, more than an amount equal to the aggregate value of 2 such awards for full-time service. The value of summer of service educational awards that an individual receives shall have no effect on the aggregate value of the national service educational awards the individual may receive.';

(5) in subsection (d)—

(A) in paragraph (1)—

(i) by striking `SEVEN-YEAR REQUIREMENT' and inserting `IN GENERAL';

(ii) by striking `An' and inserting `Subject to paragraph (2), an';

(iii) by inserting `or a silver scholar educational award' after `national service educational award';

(iv) by inserting `or an approved silver scholar position, as applicable,' after `approved national service position'; and

(v) by adding at the end the following: `Subject to paragraph (2), an individual eligible to receive a summer of service educational award under this section may not use such award after the end of the 10-year period beginning on the date the individual completes the term of service in an approved summer of service position that is the basis of the award.';

(B) in paragraph (2)—

(i) in the matter preceding subparagraph (A) and in subparagraph (A), by inserting `, summer of service educational award, or silver scholar educational award' after `national service educational award';

(ii) in subparagraph (A), by inserting `, or 10-year period, as appropriate' after `7-year period'; and

(iii) in subparagraph (B), by inserting `, approved summer of service position, or approved silver scholar position' after `approved national service position'; and

(C) by adding at the end the following:

`(3) TERM FOR TRANSFERRED EDUCATIONAL AWARDS— For purposes of applying paragraphs (1) and (2)(A) to an individual who is eligible to receive an educational award as a designated individual (as defined in section 148(f)(8)), references to a seven-year period shall be considered to be references to a 10-year period that begins on the date the individual who transferred the educational award to the designated individual completed the term of service in the approved national service position or approved silver scholar position that is the basis of the award.'; and

(6) in subsection (e)(1)—

(A) by inserting after `qualifying under this section' the following: `or under section 119(c)(8)'; and

(B) by inserting after `to receive a national service educational award' the following: `, a summer of service educational award, or a silver scholar educational award'.

Sec. 1403. Certifications.

The Act is amended by adding after section 146 (42 U.S.C. 12602) the following:

``SEC. 146A. CERTIFICATIONS OF SUCCESSFUL COMPLETION OF TERMS OF SERVICE.

``(a) Certifications—

``In making any authorized disbursement from the National Service Trust in regard to an eligible individual (including disbursement for a designated individual, as defined in section 148(f)(8), due to the service of an eligible individual) under section 146 who served in an approved national service position, an approved summer of service position, or an approved silver scholar position, the Corporation shall rely on a certification. The certification shall be made by the entity that selected the individual for and supervised the individual in the approved national service position in which such individual successfully completed a required term of service, in a national service program.

``(b) Effect of Erroneous Certifications—

``If the Corporation determines that the certification under subsection (a) is erroneous or incorrect, the Corporation shall assess against the national service program a charge for the amount of any associated payment or potential payment from the National Service Trust. In assessing the amount of the charge, the Corporation shall consider the full facts and circumstances surrounding the erroneous or incorrect certification.´´.

Sec. 1404. Determination of the amount of the educational award.

Section 147 (42 U.S.C. 12603) is amended—

(1) by striking the section heading and inserting the following:

`SEC. 147. DETERMINATION OF THE AMOUNT OF THE EDUCATIONAL AWARD.'; and

(2) by amending subsection (a) to read as follows:

`(a) Amount for Full-Time National Service— Except as provided in subsection (c), an individual described in section 146(a) who successfully completes a required term of full-time national service in an approved national service position shall receive a national service educational award having a value equal to the maximum amount of a Federal Pell Grant under section 401 of the Higher Education Act of 1965 (20 U.S.C. 1070a) that a student eligible for such Grant may receive in the aggregate (without regard to whether the funds are provided through discretionary or mandatory appropriations), for the award year for which the national service position is approved by the Corporation.';

(3) in subsection (b), by striking `, for each of not more than 2 of such terms of service,'; and

(4) by adding at the end the following:

`(d) Amount for Summer of Service— An individual described in section 146(a) who successfully completes a required summer of service term shall receive a summer of service educational award having a value, for each of not more than 2 of such terms of service, equal to $500 (or, at the discretion of the Chief Executive Officer, equal to $750 in the case of a participant who is economically disadvantaged).

`(e) Amount for Silver Scholars— An individual described in section 146(a) who successfully completes a required silver scholar term shall receive a silver scholar educational award having a value of $1,000.'.

Sec. 1405. Disbursement of educational awards.

Section 148 (42 U.S.C. 12604) is amended—

(1) by striking the section heading and inserting the following:

`SEC. 148. DISBURSEMENT OF EDUCATIONAL AWARDS.';

(2) in subsection (a)—

(A) in paragraph (2), by striking `cost of attendance' and inserting `cost of attendance or other educational expenses';

(B) in paragraph (3), by striking `and';

(C) by redesignating paragraph (4) as paragraph (5); and

(D) by inserting after paragraph (3) the following:

`(4) to pay expenses incurred in enrolling in an educational institution or training establishment that is approved under chapter 36 of title 38, United States Code, or other applicable provisions of law, for offering programs of education, apprenticeship, or on-job training for which educational assistance may be provided by the Secretary of Veterans Affairs; and';

(3) in subsection (b)—

(A) in paragraph (1), by inserting after `the national service educational award of the individual' the following: `, an eligible individual under section 146(a) who served in a summer of service program and desires to apply that individual's summer of service educational award, or an eligible individual under section 146(a) who served in a silver scholar program and desires to apply that individual's silver scholar educational award,';

(B) in paragraph (2), by inserting after `the national service educational award' the following: `, the summer of service educational award, or the silver scholar educational award, as applicable,';

(C) in paragraph (5), by inserting after `the national service educational award' the following: `, the summer of service educational award, or the silver scholar educational award, as applicable'; and

(D) in paragraph (7)—

(i) in subparagraph (A), by striking `and' at the end;

(ii) in subparagraph (B), by striking the period and inserting `; and'; and

(iii) by adding at the end the following:

`(C) any loan (other than a loan described in subparagraph (A) or (B)) determined by an institution of higher education to be necessary to cover a student's educational expenses and made, insured, or guaranteed by—

`(i) an eligible lender, as defined in section 435 of the Higher Education Act of 1965 (20 U.S.C. 1085);

`(ii) the direct student loan program under part D of title IV of such Act (20 U.S.C. 1087a et seq.);

`(iii) a State agency; or

`(iv) a lender otherwise determined by the Corporation to be eligible to receive disbursements from the National Service Trust.';

(4) in subsection (c)—

(A) in paragraph (1), by inserting after `national service educational award' the following: `, an eligible individual under section 146(a) who desires to apply the individual's summer of service educational award, or an eligible individual under section 146(a) who served in a silver scholar program and desires to apply that individual's silver scholar educational award,';

(B) in paragraph (2)—

(i) in subparagraph (A), by inserting after `national service educational award' the following: `, summer of service educational award, or silver scholar educational award, as applicable,'; and

(ii) in subparagraph (C)(iii), by inserting after `national service educational awards' the following: `, summer of service educational awards, or silver scholar educational awards, as applicable,';

(C) in paragraph (3), by inserting after `national service educational awards' the following: `summer of service educational awards, or silver scholar educational awards';

(D) in paragraph (5)—

(i) in the first sentence, by inserting after `national service educational award' the following: `, summer of service educational award, or silver scholar educational award, as applicable,'; and

(ii) in the third sentence, by inserting before the period the following: `, additional approved summer of service positions, and additional approved silver scholar positions'; and

(E) in paragraph (6)—

(i) in the matter preceding subparagraph (A), by inserting after `national service educational award' the following: `, summer of service educational award, or silver scholar educational award';

(ii) in subparagraph (A), by inserting `and other educational expenses' after `cost of attendance'; and

(iii) by striking subparagraph (B) and inserting the following:

`(B) the student's estimated financial assistance for such period under part A of title IV of such Act (20 U.S.C. 1070 et seq.).';

(5) in subsection (d), by inserting after `national service educational awards' the following: `, summer of service educational awards, and silver scholar educational awards';

(6) in subsection (e), by striking `subsection (b)(6)' and inserting `subsection (b)(7)';

(7) in subsection (f)—

(A) by striking `Director' and inserting `Chief Executive Officer'; and

(B) by inserting `, summer of service educational award, or silver scholar educational award, as appropriate,' after `national service educational award';

(8) by redesignating subsections (f) and (g) as subsections (g) and (h) respectively; and

(9) by inserting after subsection (e) the following:

`(f) Transfer of Educational Awards-

`(1) IN GENERAL— An individual who is eligible to receive a national service educational award or silver scholar educational award due to service in a program described in paragraph (2) may elect to receive the award (in the amount described in the corresponding provision of section 147) and transfer the award to a designated individual. Subsections (b), (c), and (d) shall apply to the designated individual in lieu of the individual who is eligible to receive the national service educational award or silver scholar educational award, except that amounts refunded to the account under subsection (c)(5) on behalf of a designated individual may be used by the Corporation to fund additional placements in the national service program in which the eligible individual who transferred the national service educational award or silver scholar educational award participated for such award.

`(2) CONDITIONS FOR TRANSFER— An educational award may be transferred under this subsection if—

`(A)(i) the award is a national service educational award for service in a national service program that receives a grant under subtitle C; and

`(ii) before beginning the term of service involved, the eligible individual is age 55 or older; or

`(B) the award is a silver scholarship educational award under section 198C(a).

`(3) MODIFICATION OR REVOCATION-

`(A) IN GENERAL— An individual transferring an educational award under this subsection may, on any date on which a portion of the educational award remains unused, modify or revoke the transfer of the educational award with respect to that portion.

`(B) NOTICE— A modification or revocation of the transfer of an educational award under this paragraph shall be made by the submission of written notice to the Corporation.

`(4) PROHIBITION ON TREATMENT OF TRANSFERRED AWARD AS MARITAL PROPERTY— An educational award transferred under this subsection may not be treated as marital property, or the asset of a marital estate, subject to division in a divorce or other civil proceeding.

`(5) DEATH OF TRANSFEROR— The death of an individual transferring an educational award under this subsection shall not affect the use of the educational award by the child, foster child, or grandchild to whom the educational award is transferred if such educational award is transferred prior to the death of the individual.

`(6) PROCEDURES TO PREVENT WASTE, FRAUD, OR ABUSE— The Corporation shall establish requirements to prevent waste, fraud, or abuse in connection with the transfer of an educational award and to protect the integrity of the educational award under this subsection.

`(7) TECHNICAL ASSISTANCE— The Corporation may, as appropriate, provide technical assistance, to individuals and eligible entities carrying out national service programs, concerning carrying out this subsection.

`(8) DEFINITION OF A DESIGNATED INDIVIDUAL— In this subsection, the term `designated individual' is an individual—

`(A) whom an individual who is eligible to receive a national service educational award or silver scholar educational award due to service in a program described in paragraph (2) designates to receive the educational award;

`(B) who meets the eligibility requirements of paragraphs (3) and (4) of section 146(a); and

`(C) who is a child, foster child, or grandchild of the individual described in subparagraph (A).'.

Sec. 1406. Approval process for approved positions.

(a) In General—

Subtitle D of title I (42 U.S.C. 12601 et seq.) is amended by adding at the end the following new section:

`SEC. 149. APPROVAL PROCESS FOR APPROVED POSITIONS.

`(a) Timing and Recording Requirements-

`(1) IN GENERAL— Notwithstanding subtitles C, D, and H, and any other provision of law, in approving a position as an approved national service position, an approved summer of service position, or an approved silver scholar position, the Corporation—

`(A) shall approve the position at the time the Corporation—

`(i) enters into an enforceable agreement with an individual participant to serve in a program carried out under subtitle E of title I of this Act, section 198B or 198C(a), or under title I of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4951 et seq.), a summer of service program described in section 119(c)(8), or a silver scholarship program described in section 198C(a); or

`(ii) except as provided in clause (i), awards a grant to (or enters into a contract or cooperative agreement with) an entity to carry out a program for which such a position is approved under section 123; and

`(B) shall record as an obligation an estimate of the net present value of the national service educational award, summer of service educational award, or silver scholar educational award associated with the position, based on a formula that takes into consideration historical rates of enrollment in such a program, and of earning and using national service educational awards, summer of service educational awards, or silver scholar educational awards, as appropriate, for such a program and remain available.

`(2) FORMULA— In determining the formula described in paragraph (1)(B), the Corporation shall consult with the Director of the Congressional Budget Office.

`(3) CERTIFICATION REPORT— The Chief Executive Officer of the Corporation shall annually prepare and submit to the authorizing committees a report that contains a certification that the Corporation is in compliance with the requirements of paragraph (1).

`(4) APPROVAL— The requirements of this subsection shall apply to each approved national service position, approved summer of service position, or approved silver scholarship position that the Corporation approves—

`(A) during fiscal year 2010; and

`(B) during any subsequent fiscal year.

`(b) Reserve Account-

`(1) ESTABLISHMENT AND CONTENTS-

`(A) ESTABLISHMENT— Notwithstanding subtitles C, D, and H, and any other provision of law, within the National Service Trust established under section 145, the Corporation shall establish a reserve account.

`(B) CONTENTS— To ensure the availability of adequate funds to support the awards of approved national service positions, approved summer of service positions, and approved silver scholar positions, for each fiscal year, the Corporation shall place in the account—

`(i) during fiscal year 2010, a portion of the funds that were appropriated for fiscal year 2010 or a previous fiscal year under section 501 of this Act or section 501 of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 5081), were made available to carry out subtitle C, D, or E of this title, section 198B or 198C(a), subtitle A of title I of the Domestic Volunteer Service Act of 1973, or summer of service programs described in section 119(c)(8), and remain available; and

`(ii) during fiscal year 2011 or a subsequent fiscal year, a portion of the funds that were appropriated for that fiscal year under section 501 of this Act or section 501 of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 5081), were made available to carry out subtitle C, D, or E of this title, section 198B or 198C(a), subtitle A of title I of the Domestic Volunteer Service Act of 1973, or summer of service programs described in section 119(c)(8), and remain available.

`(2) OBLIGATION— The Corporation shall not obligate the funds in the reserve account until the Corporation—

`(A) determines that the funds will not be needed for the payment of national service educational awards associated with previously approved national service positions, summer of service educational awards associated with previously approved summer of service positions, and silver scholar educational awards associated with previously approved silver scholar positions; or

`(B) obligates the funds for the payment of national service educational awards for such previously approved national service positions, summer of service educational awards for such previously approved summer of service positions, or silver scholar educational awards for such previously approved silver scholar positions, as applicable.

`(c) Audits— The accounts of the Corporation relating to the appropriated funds for approved national service positions, approved summer of service positions, and approved silver scholar positions, and the records demonstrating the manner in which the Corporation has recorded estimates described in subsection (a)(1)(B) as obligations, shall be audited annually by independent certified public accountants or independent licensed public accountants certified or licensed by a regulatory authority of a State or other political subdivision of the United States in accordance with generally accepted auditing standards. A report containing the results of each such independent audit shall be included in the annual report required by subsection (a)(3).

`(d) Availability of Amounts— Except as provided in subsection (b), all amounts included in the National Service Trust under paragraphs (1), (2), and (3) of section 145(a) shall be available for payments of national service educational awards, summer of service educational awards, or silver scholar educational awards under section 148.'.

(b) Conforming Repeal—

The Strengthen AmeriCorps Program Act (42 U.S.C. 12605) is repealed.