National and Community Service Trust Act of 1993/Title I/Subtitle A

SUBTITLE A — PROGRAMS

Sec. 101. Federal Investment in Support of National Service.

(a) TRANSFER OF EXISTING SUBTITLE.—

Title I of the National and Community Service Act of 1990 (42 U.S.C. 12501 et seq.) is amended—

(1) by redesignating subtitle C (42 U.S.C. 12541 et seq.) as subtitle I;

(2) by inserting subtitle I (as redesignated by paragraph (1) of this subsection) after subtitle H; and

(3) by redesignating sections 120 through 136 as sections 199 through 199O, respectively.

(b) ASSISTANCE PROGRAM AUTHORIZED.—

Title I of the National and Community Service Act of 1990 (42 U.S.C. 12501 et seq.) is amended by inserting after subtitle B the following new subtitle:

``Subtitle C — National Service Trust Program

``Part I — Investment in National Service

``SEC. 121. AUTHORITY TO PROVIDE ASSISTANCE AND APPROVED NATIONAL SERVICE POSITIONS.

``(a) PROVISION OF ASSISTANCE.— Subject to the availability of appropriations for this purpose, the Corporation for National and Community Service may make grants to States, subdivisions of States, Indian tribes, public or private nonprofit organizations, and institutions of higher education for the purpose of assisting the recipients of the grants—

``(1) to carry out full- or part-time national service programs, including summer programs, described in section 122(a); and

``(2) to make grants in support of other national service programs described in section 122(a) that are carried out by other entities.

``(b) AGREEMENTS WITH FEDERAL AGENCIES.—

``(1) AGREEMENTS AUTHORIZED.— The Corporation may enter into a contract or cooperative agreement with another Federal agency to support a national service program carried out by the agency. The support provided by the Corporation pursuant to the contract or cooperative agreement may include the transfer to the Federal agency of funds available to the Corporation under this subtitle.

``(2) MATCHING FUNDS REQUIREMENTS.— A Federal agency receiving assistance under this subsection shall not be required to satisfy the matching funds requirements specified in subsection (e). However, the supplementation requirements specified in section 173 shall apply with respect to the Federal national service programs supported with such assistance.

``(3) CONSULTATION WITH STATE COMMISSIONS.— A Federal agency receiving assistance under this subsection shall consult with the State Commissions for those States in which projects will be conducted using such assistance in order to ensure that the projects do not duplicate projects conducted by State or local national service programs.

``(4) SUPPORT FOR OTHER NATIONAL SERVICE PROGRAMS.— A Federal agency that enters into a contract or cooperative agreement under paragraph (1) shall, in an appropriate case, enter into a contract or cooperative agreement with an entity that is carrying out a national service program in a State that is in existence in the State as of the date of the contract or cooperative agreement and is of high quality, in order to support the national service program.

``(c) PROVISION OF APPROVED NATIONAL SERVICE POSITIONS.— As part of the provision of assistance under subsections (a) and (b), the Corporation shall—

``(1) approve the provision of national service educational awards described in subtitle D for the participants who serve in national service programs carried out using such assistance; and

``(2) deposit in the National Service Trust established in section 145(a) an amount equal to the product of—

``(A) the value of a national service educational award under section 147; and

``(B) the total number of approved national service positions to be provided.

``(d) FIVE PERCENT LIMITATION ON ADMINISTRATIVE COSTS.—

``(1) LIMITATION.— Not more than 5 percent of the amount of assistance provided to the original recipient of a grant or transfer of assistance under subsection (a) or (b) for a fiscal year may be used to pay for administrative costs incurred by—

``(A) the recipient of the assistance; and

``(B) national service programs carried out or supported with the assistance.

``(2) RULES ON USE.— The Corporation may by rule prescribe the manner and extent to which—

``(A) assistance provided under subsection (a) or (b) may be used to cover administrative costs; and

``(B) that portion of the assistance available to cover administrative costs should be distributed between—

``(i) the original recipient of the grant or transfer of assistance under such subsection; and

``(ii) national service programs carried out or supported with the assistance.

``(e) MATCHING FUNDS REQUIREMENTS.—

``(1) REQUIREMENTS.— Except as provided in section 140, the Federal share of the cost of carrying out a national service program that receives the assistance under subsection (a), whether the assistance is provided directly or as a subgrant from the original recipient of the assistance, may not exceed 75 percent of such cost.

``(2) CALCULATION.— In providing for the remaining share of the cost of carrying out a national service program, the program—

``(A) shall provide for such share through a payment in cash or in kind, fairly evaluated, including facilities, equipment, or services; and

``(B) may provide for such share through State sources, local sources, or other Federal sources (other than the use of funds made available under the national service laws).

``(3) COST OF HEALTH CARE.— In providing a payment in cash under paragraph (2)(A) as part of providing for the remaining share of the cost of carrying out a national service program, the program may count not more than 85 percent of the cost of providing a health care policy described in section 140(d)(2) toward such share.

``(4) WAIVER.— The Corporation may waive in whole or in part the requirements of paragraph (1) with respect to a national service program in any fiscal year if the Corporation determines that such a waiver would be equitable due to a lack of available financial resources at the local level.

``SEC. 122. TYPES OF NATIONAL SERVICE PROGRAMS ELIGIBLE FOR PROGRAM ASSISTANCE.

``(a) ELIGIBLE NATIONAL SERVICE PROGRAMS.— The recipient of a grant under section 121(a) and each Federal agency receiving assistance under section 121(b) shall use the assistance, directly or through subgrants to other entities, to carry out full- or part-time national service programs, including summer programs, that address unmet human, educational, environmental, or public safety needs. Subject to subsection (b)(1), these national service programs may include the following types of national service programs:

``(1) A community corps program that meets unmet human, educational, environmental, or public safety needs and promotes greater community unity through the use of organized teams of participants of varied social and economic backgrounds, skill levels, physical and developmental capabilities, ages, ethnic backgrounds, or genders.

``(2) A full-time, year-round youth corps program or full-time summer youth corps program, such as a conservation corps or youth service corps (including youth corps programs under subtitle I, the Public Lands Corps established under the Public Lands Corps Act of 1993, the Urban Youth Corps established under section 106 of the National and Community Service Trust Act of 1993, and other conservation corps or youth service corps that performs service on Federal or other public lands or on Indian lands or Hawaiian home lands), that—

``(A) undertakes meaningful service projects with visible public benefits, including natural resource, urban renovation, or human services projects;

``(B) includes as participants youths and young adults between the ages of 16 and 25, inclusive, including out-of-school youths and other disadvantaged youths (such as youths with limited basic skills, youths in foster care who are becoming too old for foster care, youths of limited-English proficiency, homeless youths, and youths who are individuals with disabilities) who are between those ages; and

``(C) provides those participants who are youths and young adults with—

``(i) crew-based, highly structured, and adult-supervised work experience, life skills, education, career guidance and counseling, employment training, and support services; and

``(ii) the opportunity to develop citizenship values and skills through service to their community and the United States.

``(3) A program that provides specialized training to individuals in service-learning and places the individuals after such training in positions, including positions as service-learning coordinators, to facilitate service-learning in programs eligible for funding under part I of subtitle B.

``(4) A service program that is targeted at specific unmet human, educational, environmental, or public safety needs and that—

``(A) recruits individuals with special skills or provides specialized preservice training to enable participants to be placed individually or in teams in positions in which the participants can meet such unmet needs; and

``(B) if consistent with the purposes of the program, brings participants together for additional training and other activities designed to foster civic responsibility, increase the skills of participants, and improve the quality of the service provided.

``(5) An individualized placement program that includes regular group activities, such as leadership training and special service projects.

``(6) A campus-based program that is designed to provide substantial service in a community during the school term and during summer or other vacation periods through the use of—

``(A) students who are attending an institution of higher education, including students participating in a work-study program assisted under part C of title IV of the Higher Education Act of 1965 (42 U.S.C. 2751 et seq.);

``(B) teams composed of such students; or

``(C) teams composed of a combination of such students and community residents.

``(7) A preprofessional training program in which students enrolled in an institution of higher education—

``(A) receive training in specified fields, which may include classes containing service-learning;

``(B) perform service related to such training outside the classroom during the school term and during summer or other vacation periods; and

``(C) agree to provide service upon graduation to meet unmet human, educational, environmental, or public safety needs related to such training.

``(8) A professional corps program that recruits and places qualified participants in positions—

``(A) as teachers, nurses and other health care providers, police officers, early childhood development staff, engineers, or other professionals providing service to meet educational, human, environmental, or public safety needs in communities with an inadequate number of such professionals;

``(B) that may include a salary in excess of the maximum living allowance authorized in subsection (a)(3) of section 140, as provided in subsection (c) of such section; and

``(C) that are sponsored by public or private nonprofit employers who agree to pay 100 percent of the salaries and benefits (other than any national service educational award under subtitle D) of the participants.

``(9) A program in which economically disadvantaged individuals who are between the ages of 16 and 24 years of age, inclusive, are provided with opportunities to perform service that, while enabling such individuals to obtain the education and employment skills necessary to achieve economic self-sufficiency, will help their communities meet—

``(A) the housing needs of low-income families and the homeless; and

``(B) the need for community facilities in low-income areas.

``(10) A national service entrepreneur program that identifies, recruits, and trains gifted young adults of all backgrounds and assists them in designing solutions to community problems.

``(11) An intergenerational program that combines students, out-of-school youths, and older adults as participants to provide needed community services, including an intergenerational component for other national service programs described in this subsection.

``(12) A program that is administered by a combination of nonprofit organizations located in a low-income area, provides a broad range of services to residents of such area, is governed by a board composed in significant part of low-income individuals, and is intended to provide opportunities for individuals or teams of individuals to engage in community projects in such area that meet unaddressed community and individual needs, including projects that would—

``(A) meet the needs of low-income children and youth aged 18 and younger, such as providing after-school ``safe-places´´, including schools, with opportunities for learning and recreation; or

``(B) be directed to other important unaddressed needs in such area.

``(13) A community service program designed to meet the needs of rural communities, using teams or individual placements to address the development needs of rural communities and to combat rural poverty, including health care, education, and job training.

``(14) A program that seeks to eliminate hunger in communities and rural areas through service in projects—

``(A) involving food banks, food pantries, and nonprofit organizations that provide food during emergencies;

``(B) involving the gleaning of prepared and unprepared food that would otherwise be discarded as unusable so that the usable portion of such food may be donated to food banks, food pantries, and other nonprofit organizations;

``(C) seeking to address the long-term causes of hunger through education and the delivery of appropriate services; or

``(D) providing training in basic health, nutrition, and life skills necessary to alleviate hunger in communities and rural areas.

``(15) Such other national service programs addressing unmet human, educational, environmental, or public safety needs as the Corporation may designate.

``(b) QUALIFICATION CRITERIA TO DETERMINE ELIGIBILITY.—

``(1) ESTABLISHMENT BY CORPORATION.— The Corporation shall establish qualification criteria for different types of national service programs for the purpose of determining whether a particular national service program should be considered to be a national service program eligible to receive assistance or approved national service positions under this subtitle.

``(2) CONSULTATION.— In establishing qualification criteria under paragraph (1), the Corporation shall consult with organizations and individuals with extensive experience in developing and administering effective national service programs or regarding the delivery of human, educational, environmental, or public safety services to communities or persons.

``(3) APPLICATION TO SUBGRANTS.— The qualification criteria established by the Corporation under paragraph (1) shall also be used by each recipient of assistance under section 121(a) that uses any portion of the assistance to conduct a grant program to support other national service programs.

``(4) ENCOURAGEMENT OF INTERGENERATIONAL COMPONENTS OF PROGRAMS.— The Corporation shall encourage national service programs eligible to receive assistance or approved national service positions under this subtitle to establish, if consistent with the purposes of the program, an intergenerational component of the program that combines students, out-of-school youths, and older adults as participants to provide services to address unmet human, educational, environmental, or public safety needs.

``(c) NATIONAL SERVICE PRIORITIES.—

``(1) ESTABLISHMENT.—

``(A) BY CORPORATION.— In order to concentrate national efforts on meeting certain unmet human, educational, environmental, or public safety needs and to achieve the other purposes of this Act, the Corporation shall establish, and after reviewing the strategic plan approved under section 192A(g)(1), periodically alter priorities as appropriate regarding the types of national service programs to be assisted under subsection (b) or (d) of section 129 and the purposes for which such assistance may be used.

``(B) BY STATES.— Consistent with paragraph (4), States shall establish, and through the national service plan process described in section 178(e)(1), periodically alter priorities as appropriate regarding the national service programs to be assisted under section 129(a)(1). The State priorities shall be subject to Corporation review as part of the application process under section 130.

``(2) NOTICE TO APPLICANTS.— The Corporation shall provide advance notice to potential applicants of any national service priorities to be in effect under this subsection for a fiscal year. The notice shall specifically include—

``(A) a description of any alteration made in the priorities since the previous notice; and

``(B) a description of the national service programs that are designated by the Corporation under section 133(d)(2) as eligible for priority consideration in the next competitive distribution of assistance under section 121(a).

``(3) REGULATIONS.— The Corporation shall by regulation establish procedures to ensure the equitable treatment of national service programs that—

``(A) receive funding under this subtitle for multiple years; and

``(B) would be adversely affected by annual revisions in such national service priorities.

``(4) APPLICATION TO SUBGRANTS.— Any national service priorities established by the Corporation under this subsection shall also be used by each recipient of funds under section 121(a) that uses any portion of the assistance to conduct a grant program to support other national service programs.

``SEC. 123. TYPES OF NATIONAL SERVICE POSITIONS ELIGIBLE FOR APPROVAL FOR NATIONAL SERVICE EDUCATIONAL AWARDS.

``The Corporation may approve of any of the following service positions as an approved national service position that includes the national service educational award described in subtitle D as one of the benefits to be provided for successful service in the position:

``(1) A position for a participant in a national service program described in section 122(a) that receives assistance under subsection (a) or (b) of section 121.

``(2) A position for a participant in a program that—

``(A) is carried out by a State, a subdivision of a State, an Indian tribe, a public or private nonprofit organization, an institution of higher education, or a Federal agency; and

``(B) would be eligible to receive assistance under section 121(a), based on criteria established by the Corporation, but has not applied for such assistance.

``(3) A position involving service as a VISTA volunteer under title I of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4951 et seq.).

``(4) A position facilitating service-learning in a program described in section 122(a)(3) that is eligible for assistance under part I of subtitle B.

``(5) A position for a participant in the Civilian Community Corps under subtitle E.

``(6) A position involving service as a crew leader in a youth corps program or a similar position supporting a national service program that receives an approved national service position.

``(7) Such other national service positions as the Corporation considers to be appropriate.

``SEC. 124. TYPES OF PROGRAM ASSISTANCE.

``(a) PLANNING ASSISTANCE.— The Corporation may provide assistance under section 121 to a qualified applicant that submits an application under section 130 for the planning of a national service program. Assistance provided in accordance with this subsection may cover a period of not more than 1 year.

``(b) OPERATIONAL ASSISTANCE.— The Corporation may provide assistance under section 121 to a qualified applicant that submits an application under section 130 for the establishment, operation, or expansion of a national service program. Assistance provided in accordance with this subsection may cover a period of not more than 3 years, but may be renewed by the Corporation upon consideration of a new application under section 130.

``(c) REPLICATION ASSISTANCE.— The Corporation may provide assistance under section 121 to a qualified applicant that submits an application under section 130 for the expansion of a proven national service program to another geographical location. Assistance provided in accordance with this subsection may cover a period of not more than 3 years, but may be renewed by the Corporation upon consideration of a new application under section 130.

``(d) APPLICATION TO SUBGRANTS.— The requirements of this section shall apply to any State or other applicant receiving assistance under section 121 that proposes to conduct a grant program using the assistance to support other national service programs.

``SEC. 125. TRAINING AND TECHNICAL ASSISTANCE.

``(a) TRAINING PROGRAMS.— The Corporation may conduct, directly or by grant or contract, appropriate training programs regarding national service in order to—

``(1) improve the ability of national service programs assisted under section 121 to meet human, educational, environmental, or public safety needs in communities—

``(A) where services are needed most; and

``(B) where programs do not exist, or are too limited to meet community needs, as of the date on which the Corporation makes the grant or enters into the contract;

``(2) promote leadership development in such programs;

``(3) improve the instructional and programmatic quality of such programs to build an ethic of civic responsibility;

``(4) develop the management and budgetary skills of program operators;

``(5) provide for or improve the training provided to the participants in such programs; and

``(6) encourage national service programs to adhere to risk management procedures, including the training of participants in appropriate risk management practices.

``(b) TECHNICAL ASSISTANCE.— To the extent appropriate and necessary, the Corporation shall make technical assistance available to States, Indian tribes, labor organizations, organizations operated by young adults, organizations serving economically disadvantaged individuals, and other entities described in section 121 that desire—

``(1) to develop national service programs; or

``(2) to apply for assistance under such section or under a grant program conducted using assistance provided under such section.

``SEC. 126. OTHER SPECIAL ASSISTANCE.

``(a) SUPPORT FOR STATE COMMISSIONS.—

``(1) GRANTS AUTHORIZED.— From amounts appropriated for a fiscal year pursuant to the authorization of appropriation in section 501(a)(4), the Corporation may make a grant in an amount between $125,000 and $750,000 to a State to assist the State to establish or operate the State Commission on National and Community Service required to be established by the State under section 178.

``(2) LIMITATION ON AMOUNT OF GRANTS.— Notwithstanding the amounts specified in paragraph (1), the amount of a grant that may be provided to a State Commission under this subsection, together with other Federal funds available to establish or operate the State Commission, may not exceed—

``(A) 85 percent of the total cost to establish or operate the State Commission for the first year for which the State Commission receives assistance under this subsection; and

``(B) such smaller percentage of such cost as the Corporation may establish for the second, third, and fourth years of such assistance in order to ensure that the Federal share does not exceed 50 percent of such costs for the fifth year, and any subsequent year, for which the State Commission receives assistance under this subsection.

``(b) DISASTER SERVICE.— The Corporation may undertake activities, including activities carried out through part A of title I of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4951 et seq.), to involve in disaster relief efforts youth corps programs described in section 122(a)(2) and other programs that receive assistance under the national service laws.

``(c) CHALLENGE GRANTS FOR NATIONAL SERVICE PROGRAMS.—

``(1) ASSISTANCE AUTHORIZED.— The Corporation may make challenge grants under this subsection to national service programs that receive assistance under section 121.

``(2) SELECTION CRITERIA.— The Corporation shall develop criteria for the selection of recipients of challenge grants under this subsection, so as to make the grants widely available to a variety of programs that—

``(A) are high-quality national service programs; and

``(B) are carried out by entities with demonstrated experience in establishing and implementing projects that provide benefits to participants and communities.

``(3) AMOUNT OF ASSISTANCE.— A challenge grant under this subsection may provide not more than $1 of assistance under this subsection for each $1 in cash raised by the national service program from private sources in excess of amounts required to be provided by the program to satisfy matching funds requirements under section 121(e). The Corporation shall establish a ceiling on the amount of assistance that may be provided to a national service program under this subsection.

``Part II — Application and Approval Process

``SEC. 129. PROVISION OF ASSISTANCE AND APPROVED NATIONAL SERVICE POSITIONS BY COMPETITIVE AND OTHER MEANS.

``(a) ALLOTMENTS OF ASSISTANCE AND APPROVED POSITIONS TO STATES AND INDIAN TRIBES.—

``(1) 33 1/3 PERCENT ALLOTMENT OF ASSISTANCE TO CERTAIN STATES.— Of the funds allocated by the Corporation for provision of assistance under subsections (a) and (b) of section 121 for a fiscal year, the Corporation shall make a grant under section 121(a) (and a corresponding allotment of approved national service positions) to each of the several States, the District of Columbia, and the Commonwealth of Puerto Rico that has an application approved by the Corporation under section 133. The amount allotted as a grant to each such State under this paragraph for a fiscal year shall be equal to the amount that bears the same ratio to 33 1/3 percent of the allocated funds for that fiscal year as the population of the State bears to the total population of the several States, the District of Columbia, and the Commonwealth of Puerto Rico.

``(2) ONE PERCENT ALLOTMENT FOR CERTAIN TERRITORIES AND POSSESSIONS.— Of the funds allocated by the Corporation for provision of assistance under subsections (a) and (b) of section 121 for a fiscal year, the Corporation shall reserve 1 percent of the allocated funds for grants under section 121(a) to the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands upon approval of an application by the Corporation under section 133. Palau shall also be eligible for a grant under this paragraph from the allotment until such time as the Compact of Free Association with Palau is ratified. The amount allotted as a grant to each such territory or possession under this paragraph for a fiscal year shall be equal to the amount that bears the same ratio to 1 percent of the allocated funds for that fiscal year as the population of the territory or possession bears to the total population of such territories and possessions.

``(3) ONE PERCENT ALLOTMENT FOR INDIAN TRIBES.— Of the funds allocated by the Corporation for provision of assistance under subsections (a) and (b) of section 121 for a fiscal year, the Corporation shall reserve 1 percent of the allocated funds for grants under section 121(a) to Indian tribes, to be allotted by the Corporation on a competitive basis in accordance with their respective needs.

``(4) EFFECT OF FAILURE TO APPLY.— If a State or Indian tribe fails to apply for, or fails to give notice to the Corporation of its intent to apply for, an allotment under this subsection, the Corporation shall use the amount that would have been allotted under this subsection to the State or Indian tribe—

``(A) to make grants (and provide approved national service positions in connection with such grants) to other eligible entities under section 121 that propose to carry out national service programs in the State or on behalf of the Indian tribe; and

``(B) after making grants under subparagraph (A), to make a reallotment to other States and Indian tribes with approved applications under section 130.

``(b) RESERVATION OF APPROVED POSITIONS.— The Corporation shall ensure that each individual selected during a fiscal year for assignment as a VISTA volunteer under title I of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4951 et seq.) or as a participant in the Civilian Community Corps Demonstration Program under subtitle E shall receive the national service educational award described in subtitle D if the individual satisfies the eligibility requirements for the award. Funds for approved national service positions required by this paragraph for a fiscal year shall be deducted from the total funding for approved national service positions to be available for distribution under subsections (a) and (d) for that fiscal year.

``(c) RESERVATION FOR SPECIAL ASSISTANCE.— From amounts appropriated for a fiscal year pursuant to the authorization of appropriation in section 501(a)(2), and subject to the limitation in such section, the Corporation may reserve such amount as the Corporation considers to be appropriate for the purpose of making assistance available under sections 125 and 126. The Corporation may not reserve more than $10,000,000 for a fiscal year for disaster service under subsection (b) of section 126 or challenge grants under subsection (c) of such section.

``(d) COMPETITIVE DISTRIBUTION OF REMAINING FUNDS.—

``(1) STATE COMPETITION.— Of the funds allocated by the Corporation for provision of assistance under subsections (a) and (b) of section 121 for a fiscal year, the Corporation shall use not less than 33 1/3 percent of the allocated funds to make grants to States on a competitive basis under section 121(a).

``(2) FEDERAL AGENCIES AND OTHER APPLICANTS.— The Corporation shall distribute on a competitive basis to subdivisions of States, Indian tribes, public or private nonprofit organizations (including labor organizations), institutions of higher education, and Federal agencies the remainder of the funds allocated by the Corporation for provision of assistance under section 121 for a fiscal year, after operation of paragraph (1) and subsections (a) and (c).

``(3) LIMITATION ON DISTRIBUTION TO FEDERAL AGENCIES.— The Corporation may not provide more than 1/3 of the funds available for competitive distribution under paragraph (2) for a fiscal year to Federal agencies under section 121(b).

``(4) PRIORITY LIMITATIONS.— The Corporation may limit the categories of eligible applicants for assistance under paragraph (2) consistent with the priorities established by the Corporation under section 133(d)(2).

``(5) RESERVATION OF FUNDS FOR SUPPLEMENTAL AND OUTREACH GRANTS.—

``(A) RESERVATION.— From amounts appropriated for a fiscal year pursuant to the authorization of appropriation in section 501(a)(2), and subject to the limitation in such section, the Chief Executive Officer shall reserve an amount that is not less than 1 percent of such amounts (except that the amount reserved may not exceed $5,000,000), in order to make supplemental grants as provided in subparagraph (B) and outreach grants as provided in subparagraph (C). The amount reserved pursuant to this paragraph shall be available until expended.

``(B) GRANTS TO ASSIST ENTITIES IN PLACING APPLICANTS WHO ARE INDIVIDUALS WITH A DISABILITY.—

``(i) IN GENERAL.— The Chief Executive Officer shall make grants from a portion of the funds reserved under subparagraph (A) to entities that—

``(I) receive a grant to carry out a national service program under paragraph (1) or (2);

``(II) demonstrate that the entity has received a substantial number of applications for placement in the national service program of persons who are individuals with a disability and who require a reasonable accommodation (as defined in section 101(9) of the Americans with Disabilities Act of 1990 (42 U.S.C. 12111(9))), or auxiliary aids and services (as defined in section 3(1) of such Act (42 U.S.C. 12102(1))), in order to perform national service; and

``(III) demonstrate that additional funding would assist the national service program in placing a substantial number of such individuals with a disability as participants in projects carried out through the program.

``(ii) REQUIREMENTS.— Funds made available through such a supplemental grant under clause (i) shall be made available for the same purposes, and subject to the same requirements, as funds made available through a grant made under paragraph (1) or (2).

``(C) GRANTS FOR OUTREACH TO INDIVIDUALS WITH A DISABILITY.—

``(i) IN GENERAL.— From the portion of the funds reserved under subparagraph (A) that is not used to make grants under subparagraph (B), the Chief Executive Officer shall make grants to public or private nonprofit organizations to pay for the Federal share described in section 121(e) of—

``(I) providing information about the programs specified in section 193A(d)(10) to such individuals with a disability who desire to perform national service; and

``(II) enabling the individuals to participate in activities carried out through such programs, which may include assisting the placement of the individuals in approved national service positions.

``(ii) APPLICATION.— To be eligible to receive a grant under this subparagraph, an organization described in clause (i) shall submit an application to the Chief Executive Officer at such time, in such manner, and containing such information as the Chief Executive Officer may require.

``(e) APPLICATION REQUIRED.— The allotment of assistance and approved national service positions to a State or Indian tribe under subsection (a), and the competitive distribution of assistance under subsection (d), shall be made by the Corporation only pursuant to an application submitted by a State or other applicant under section 130 and approved by the Corporation under section 133.

``(f) APPROVAL OF POSITIONS SUBJECT TO AVAILABLE FUNDS.— The Corporation may not approve positions as approved national service positions under this subtitle for a fiscal year in excess of the number of such positions for which the Corporation has sufficient available funds in the National Service Trust for that fiscal year, taking into consideration funding needs for national service educational awards under subtitle D based on completed service. If appropriations are insufficient to provide the maximum allowable national service educational awards under subtitle D for all eligible participants, the Corporation is authorized to make necessary and reasonable adjustments to program rules.

``(g) SPONSORSHIP OF APPROVED NATIONAL SERVICE POSITIONS.—

``(1) SPONSORSHIP AUTHORIZED.— The Corporation may enter into agreements with persons or entities who offer to sponsor national service positions for which the person or entity will be responsible for supplying the funds necessary to provide a national service educational award. The distribution of these approved national service positions shall be made pursuant to the agreement, and the creation of these positions shall not be taken into consideration in determining the number of approved national service positions to be available for distribution under this section.

``(2) DEPOSIT OF CONTRIBUTION.— Funds provided pursuant to an agreement under paragraph (1) and any other funds contributed to the Corporation to support the activities of the Corporation under the national service laws shall be deposited in the National Service Trust established in section 145 until such time as the funds are needed.

``SEC. 130. APPLICATION FOR ASSISTANCE AND APPROVED NATIONAL SERVICE POSITIONS.

``(a) TIME, MANNER, AND CONTENT OF APPLICATION.— To be eligible to receive assistance under section 121 or approved national service positions for participants who serve in the national service programs to be carried out using the assistance, a State, subdivision of a State, Indian tribe, public or private nonprofit organization, institution of higher education, or Federal agency shall prepare and submit to the Corporation an application at such time, in such manner, and containing such information as the Corporation may reasonably require.

``(b) TYPES OF PERMISSIBLE APPLICATION INFORMATION.— In order to have adequate information upon which to consider an application under section 133, the Corporation may require the following information to be provided in an application submitted under subsection (a):

``(1) A description of the national service programs proposed to be carried out directly by the applicant using assistance provided under section 121.

``(2) A description of the national service programs that are selected by the applicant to receive a grant using assistance requested under section 121 and a description of the process and criteria by which the programs were selected.

``(3) A description of other funding sources to be used, or sought to be used, for the national service programs referred to in paragraphs (1) and (2), and, if the application is submitted for the purpose of seeking a renewal of assistance, a description of the success of the programs in reducing their reliance on Federal funds.

``(4) A description of the extent to which the projects to be conducted using the assistance will address unmet human, educational, environmental, or public safety needs and produce a direct benefit for the community in which the projects are performed.

``(5) A description of the plan to be used to recruit participants, including youth who are individuals with disabilities and economically disadvantaged young men and women, for the national service programs referred to in paragraphs (1) and (2).

``(6) A description of the manner in which the national service programs referred to in paragraphs (1) and (2) build on existing programs, including Federal programs.

``(7) A description of the manner in which the national service programs referred to in paragraphs (1) and (2) will involve participants—

``(A) in projects that build an ethic of civic responsibility and produce a positive change in the lives of participants through training and participation in meaningful service experiences and opportunities for reflection on such experiences; and

``(B) in leadership positions in implementing and evaluating the program.

``(8) Measurable goals for the national service programs referred to in paragraphs (1) and (2), and a strategy to achieve such goals, in terms of—

``(A) the impact to be made in meeting unmet human, educational, environmental, or public safety needs; and

``(B) the service experience to be provided to participants in the programs.

``(9) A description of the manner and extent to which the national service programs referred to in paragraphs (1) and (2) conform to the national service priorities established by the Corporation under section 122(c).

``(10) A description of the past experience of the applicant in operating a comparable program or in conducting a grant program in support of other comparable service programs.

``(11) A description of the type and number of proposed service positions in which participants will receive the national service educational award described in subtitle D and a description of the manner in which approved national service positions will be apportioned by the applicant.

``(12) A description of the manner and extent to which participants, representatives of the community served, community-based agencies with a demonstrated record of experience in providing services, and labor organizations contributed to the development of the national service programs referred to in paragraphs (1) and (2), including the identity of the individual representing each appropriate labor organization (if any) who was consulted and the nature of the consultation.

``(13) Such other information as the Corporation may reasonably require.

``(c) REQUIRED APPLICATION INFORMATION.— An application submitted under subsection (a) shall contain the following information:

``(1) A description of the jobs or positions into which participants will be placed using the assistance provided under section 121, including descriptions of specific tasks to be performed by such participants.

``(2) A description of the minimum qualifications that individuals shall meet to become participants in such programs.

``(d) APPLICATION TO RECEIVE ONLY APPROVED NATIONAL SERVICE POSITIONS.—

``(1) APPLICABILITY OF SUBSECTION.— This subsection shall apply in the case of an application in which—

``(A) the applicant is not seeking assistance under subsection (a) or (b) of section 121, but requests national service educational awards for individuals serving in service positions described in section 123; or

``(B) the applicant requests national service educational awards for service positions described in section 123, but the positions are not positions in a national service program described in section 122(a) for which assistance may be provided under subsection (a) or (b) of section 121.

``(2) SPECIAL APPLICATION REQUIREMENTS.— For the applications described in paragraph (1), the Corporation shall establish special application requirements in order to determine—

``(A) whether the service positions meet unmet human, educational, environmental, or public safety needs and meet the criteria for assistance under this subtitle; and

``(B) whether the Corporation should approve the positions as approved national service positions.

``(e) SPECIAL RULE FOR STATE APPLICANTS.—

``(1) SUBMISSION BY STATE COMMISSION.— The application of a State for approved national service positions or for a grant under section 121(a) shall be submitted by the State Commission.

``(2) COMPETITIVE SELECTION.— The application of a State shall contain an assurance that all assistance provided under section 121(a) to the State will be used to support national service programs that were selected by the State on a competitive basis. In making such competitive selections, the State shall seek to ensure the equitable allocation within the State of assistance and approved national service positions provided under this subtitle to the State taking into consideration such factors as the location of the programs applying to the State, population density, and economic distress.

``(3) ASSISTANCE TO NONSTATE ENTITIES.— The application of a State shall also contain an assurance that not less than 60 percent of the assistance will be used to make grants in support of national service programs other than national service programs carried out by a State agency. The Corporation may permit a State to deviate from the percentage specified by this subsection if the State has not received a sufficient number of acceptable applications to comply with the percentage.

``(f) SPECIAL RULE FOR CERTAIN APPLICANTS.—

``(1) WRITTEN CONCURRENCE.— In the case of a program applicant that proposes to also serve as the service sponsor, the application shall include the written concurrence of any local labor organization representing employees of the service sponsor who are engaged in the same or substantially similar work as that proposed to be carried out.

``(2) PROGRAM APPLICANT DEFINED.— For purposes of this subsection, the term ``program applicant´´ means—

``(A) a State, subdivision of a State, Indian tribe, public or private nonprofit organization, institution of higher education, or Federal agency submitting an application under this section; or

``(B) an entity applying for assistance or approved national service positions through a grant program conducted using assistance provided to a State, subdivision of a State, Indian tribe, public or private nonprofit organization, institution of higher education, or Federal agency under section 121.

``(g) LIMITATION ON SAME PROJECT IN MULTIPLE APPLICATIONS.— The Corporation shall reject an application submitted under this section if a project proposed to be conducted using assistance requested by the applicant is already described in another application pending before the Corporation.

``SEC. 131. NATIONAL SERVICE PROGRAM ASSISTANCE REQUIREMENTS.

``(a) IMPACT ON COMMUNITIES.— An application submitted under section 130 shall include an assurance by the applicant that any national service program carried out by the applicant using assistance provided under section 121 and any national service program supported by a grant made by the applicant using such assistance will—

``(1) address unmet human, educational, environmental, or public safety needs through services that provide a direct benefit to the community in which the service is performed; and

``(2) comply with the nonduplication and nondisplacement requirements of section 177 and the grievance procedure requirements of section 176(f).

``(b) IMPACT ON PARTICIPANTS.— An application submitted under section 130 shall also include an assurance by the applicant that any national service program carried out by the applicant using assistance provided under section 121 and any national service program supported by a grant made by the applicant using such assistance will—

``(1) provide participants in the national service program with the training, skills, and knowledge necessary for the projects that participants are called upon to perform;

``(2) provide support services to participants, such as the provision of appropriate information and support—

``(A) to those participants who are completing a term of service and making the transition to other educational and career opportunities; and

``(B) to those participants who are school dropouts in order to assist those participants in earning the equivalent of a high school diploma; and

``(3) provide, if appropriate, structured opportunities for participants to reflect on their service experiences.

``(c) CONSULTATION.— An application submitted under section 130 shall also include an assurance by the applicant that any national service program carried out by the applicant using assistance provided under section 121 and any national service program supported by a grant made by the applicant using such assistance will—

``(1) provide in the design, recruitment, and operation of the program for broad-based input from—

``(A) the community served and potential participants in the program; and

``(B) community-based agencies with a demonstrated record of experience in providing services and local labor organizations representing employees of service sponsors, if these entities exist in the area to be served by the program;

``(2) prior to the placement of participants, consult with the appropriate local labor organization, if any, representing employees in the area who are engaged in the same or similar work as that proposed to be carried out by such program to ensure compliance with the nondisplacement requirements specified in section 177; and

``(3) in the case of a program that is not funded through a State, consult with and coordinate activities with the State Commission for the State in which the program operates.

``(d) EVALUATION AND PERFORMANCE GOALS.—

``(1) IN GENERAL.— An application submitted under section 130 shall also include an assurance by the applicant that the applicant will—

``(A) arrange for an independent evaluation of any national service program carried out using assistance provided to the applicant under section 121 or, with the approval of the Corporation, conduct an internal evaluation of the program;

``(B) apply measurable performance goals and evaluation methods (such as the use of surveys of participants and persons served), which are to be used as part of such evaluation to determine the impact of the program—

``(i) on communities and persons served by the projects performed by the program;

``(ii) on participants who take part in the projects; and

``(iii) in such other areas as the Corporation may require; and

``(C) cooperate with any evaluation activities undertaken by the Corporation.

``(2) EVALUATION.— Subject to paragraph (3), the Corporation shall develop evaluation criteria and performance goals applicable to all national service programs carried out with assistance provided under section 121.

``(3) ALTERNATIVE EVALUATION REQUIREMENTS.— The Corporation may establish alternative evaluation requirements for national service programs based upon the amount of assistance received under section 121 or received by a grant made by a recipient of assistance under such section. The determination of whether a national service program is covered by this paragraph shall be made in such manner as the Corporation may prescribe.

``(e) LIVING ALLOWANCES AND OTHER INSERVICE BENEFITS.— Except as provided in section 140(c), an application submitted under section 130 shall also include an assurance by the applicant that the applicant will—

``(1) ensure the provision of a living allowance and other benefits specified in section 140 to participants in any national service program carried out by the applicant using assistance provided under section 121; and

``(2) require that each national service program that receives a grant from the applicant using such assistance will also provide a living allowance and other benefits specified in section 140 to participants in the program.

``(f) SELECTION OF PARTICIPANTS FROM INDIVIDUALS RECRUITED BY CORPORATION OR STATE COMMISSIONS.— The Corporation may also require an assurance by the applicant that any national service program carried out by the applicant using assistance provided under section 121 and any national service program supported by a grant made by the applicant using such assistance will select a portion of the participants for the program from among prospective participants recruited by the Corporation or State Commissions under section 138(d). The Corporation may specify a minimum percentage of participants to be selected from the national leadership pool established under section 138(e) and may vary the percentage for different types of national service programs.

``SEC. 132. INELIGIBLE SERVICE CATEGORIES.

``(a) IN GENERAL.— Except as provided in subsection (b), an application submitted to the Corporation under section 130 shall include an assurance by the applicant that any national service program carried out using assistance provided under section 121 and any approved national service position provided to an applicant will not be used to perform service that provides a direct benefit to any—

``(1) business organized for profit;

``(2) labor union;

``(3) partisan political organization;

``(4) organization engaged in religious activities, unless such service does not involve the use of assistance provided under section 121 or participants—

``(A) to give religious instruction;

``(B) to conduct worship services;

``(C) to provide instruction as part of a program that includes mandatory religious education or worship;

``(D) to construct or operate facilities devoted to religious instruction or worship or to maintain facilities primarily or inherently devoted to religious instruction or worship; or

``(E) to engage in any form of proselytization; or

``(5) nonprofit organization that fails to comply with the restrictions contained in section 501(c) of the Internal Revenue Code of 1986 (26 U.S.C. 501(c)), except that nothing in this section shall be construed to prevent participants from engaging in advocacy activities undertaken at their own initiative.

``(b) REGIONAL CORPORATION.— The requirement of subsection (a) relating to an assurance regarding direct benefits to businesses organized for profit shall not apply with respect to a Regional Corporation, as defined in section 3(g) of the Alaska Native Claims Settlement Act (43 U.S.C. 1602(g)), that is established in accordance with such Act as a for-profit corporation but that is engaging in nonprofit activities.

``SEC. 133. CONSIDERATION OF APPLICATIONS.

``(a) CORPORATION CONSIDERATION OF CERTAIN CRITERIA.— The Corporation shall apply the criteria described in subsections (c) and (d) in determining whether—

``(1) to approve an application submitted under section 130 and provide assistance under section 121 to the applicant; and

``(2) to approve service positions described in the application as national service positions that include the national service educational award described in subtitle D and provide such approved national service positions to the applicant.

``(b) APPLICATION TO SUBGRANTS.—

``(1) IN GENERAL.— A State or other entity that uses assistance provided under section 121(a) to support national service programs selected on a competitive basis to receive a share of the assistance shall use the criteria described in subsections (c) and (d) when considering an application submitted by a national service program to receive a portion of such assistance or an approved national service position.

``(2) CONTENTS.— The application of the State or other entity under section 130 shall contain—

``(A) a certification that the State or other entity used these criteria in the selection of national service programs to receive assistance;

``(B) a description of the jobs or positions into which participants will be placed using such assistance, including descriptions of specific tasks to be performed by such participants; and

``(C) a description of the minimum qualifications that individuals shall meet to become participants in such programs.

``(c) ASSISTANCE CRITERIA.— The criteria required to be applied in evaluating applications submitted under section 130 are as follows:

``(1) The quality of the national service program proposed to be carried out directly by the applicant or supported by a grant from the applicant.

``(2) The innovative aspects of the national service program, and the feasibility of replicating the program.

``(3) The sustainability of the national service program, based on evidence such as the existence—

``(A) of strong and broad-based community support for the program; and

``(B) of multiple funding sources or private funding for the program.

``(4) The quality of the leadership of the national service program, the past performance of the program, and the extent to which the program builds on existing programs.

``(5) The extent to which participants of the national service program are recruited from among residents of the communities in which projects are to be conducted, and the extent to which participants and community residents are involved in the design, leadership, and operation of the program.

``(6) The extent to which projects would be conducted in the following areas where they are needed most:

``(A) Communities designated as empowerment zones or redevelopment areas, targeted for special economic incentives, or otherwise identifiable as having high concentrations of low-income people.

``(B) Areas that are environmentally distressed.

``(C) Areas adversely affected by Federal actions related to the management of Federal lands that result in significant regional job losses and economic dislocation.

``(D) Areas adversely affected by reductions in defense spending or the closure or realignment of military installations.

``(E) Areas that have an unemployment rate greater than the national average unemployment for the most recent 12 months for which satisfactory data are available.

``(7) In the case of applicants other than States, the extent to which the application is consistent with the application under section 130 of the State in which the projects would be conducted.

``(8) Such other criteria as the Corporation considers to be appropriate.

``(d) OTHER CONSIDERATIONS.—

``(1) GEOGRAPHIC DIVERSITY.— The Corporation shall ensure that recipients of assistance provided under section 121 are geographically diverse and include projects to be conducted in those urban and rural areas in a State with the highest rates of poverty.

``(2) PRIORITIES.— The Corporation may designate, under such criteria as may be established by the Corporation, certain national service programs or types of national service programs described in section 122(a) for priority consideration in the competitive distribution of funds under section 129(d)(2). In designating national service programs to receive priority, the Corporation may include—

``(A) national service programs carried out by another Federal agency;

``(B) national service programs that conform to the national service priorities in effect under section 122(c);

``(C) innovative national service programs;

``(D) national service programs that are well established in one or more States at the time of the application and are proposed to be expanded to additional States using assistance provided under section 121;

``(E) grant programs in support of other national service programs if the grant programs are to be conducted by nonprofit organizations with a demonstrated and extensive expertise in the provision of services to meet human, educational, environmental, or public safety needs;

``(F) professional corps programs described in section 122(a)(8); and

``(G) programs that—

``(i) received funding under subtitle D of this Act, as in effect on the day before the date of enactment of this subtitle;

``(ii) the Corporation determines to meet the requirements of sections 142 (other than subsection (g)), 143, and 148 through 150 of this Act, as in effect on such day, in addition to the requirements of this subtitle; and

``(iii) include an evaluation component.

``(3) ADDITIONAL PRIORITY.— In making a competitive distribution of funds under section 129(d)(2), the Corporation may give priority consideration to a national service program that is—

``(A) proposed in an application submitted by a State Commission; and

``(B) not one of the types of programs described in paragraph (2), if the State Commission provides an adequate explanation of the reasons why it should not be a priority of such State to carry out any of such types of programs in the State.

``(4) REVIEW PANEL.— The Corporation shall—

``(A) establish panels of experts for the purpose of securing recommendations on applications submitted under section 130 for more than $250,000 in assistance, or for national service positions that would require more than $250,000 in national service educational awards; and

``(B) consider the opinions of such panels prior to making such determinations.

``(e) EMPHASIS ON AREAS MOST IN NEED.— In making assistance available under section 121 and in providing approved national service positions under section 123, the Corporation shall ensure that not less than 50 percent of the total amount of assistance to be distributed to States under subsections (a) and (d)(1) of section 129 for a fiscal year is provided to carry out or support national service programs and projects that—

``(1) are conducted in any of the areas described in subsection (c)(6) or on Federal or other public lands, to address unmet human, educational, environmental, or public safety needs in such areas or on such lands; and

``(2) place a priority on the recruitment of participants who are residents of any of such areas or Federal or other public lands.

``(f) REJECTION OF STATE APPLICATIONS.—

``(1) NOTIFICATION OF STATE APPLICANTS.— If the Corporation rejects an application submitted by a State Commission under section 130 for funds described in section 129(a)(1), the Corporation shall promptly notify the State Commission of the reasons for the rejection of the application.

``(2) RESUBMISSION AND RECONSIDERATION.— The Corporation shall provide a State Commission notified under paragraph (1) with a reasonable opportunity to revise and resubmit the application. At the request of the State Commission, the Corporation shall provide technical assistance to the State Commission as part of the resubmission process. The Corporation shall promptly reconsider an application resubmitted under this paragraph.

``(3) REALLOTMENT.— The amount of any State's allotment under section 129(a) for a fiscal year that the Corporation determines will not be provided for that fiscal year shall be available for distribution by the Corporation as provided in paragraph (3) of such subsection.

``Part III — National Service Participants

``SEC. 137. DESCRIPTION OF PARTICIPANTS.

``(a) IN GENERAL.— For purposes of this subtitle, an individual shall be considered to be a participant in a national service program carried out using assistance provided under section 121 if the individual—

``(1) meets such eligibility requirements, directly related to the tasks to be accomplished, as may be established by the program;

``(2) is selected by the program to serve in a position with the program;

``(3) will serve in the program for a term of service specified in section 139 to be performed before, during, or after attendance at an institution of higher education;

``(4) is 17 years of age or older at the time the individual begins the term of service;

``(5) has received a high school diploma or its equivalent, agrees to obtain a high school diploma or its equivalent (unless this requirement is waived based on an individual education assessment conducted by the program) and the individual did not drop out of an elementary or secondary school to enroll in the program, or is enrolled in an institution of higher education on an ability to benefit basis and is considered eligible for funds under section 484 of the Higher Education Act of 1965 (20 U.S.C. 1091); and

``(6) is a citizen or national of the United States or lawful permanent resident alien of the United States.

``(b) SPECIAL RULES FOR CERTAIN YOUTH PROGRAMS.— An individual shall be considered to be a participant in a youth corps program described in section 122(a)(2) or a program described in section 122(a)(9) that is carried out with assistance provided under section 121(a) if the individual—

``(1) satisfies the requirements specified in subsection (a), except paragraph (4) of such subsection; and

``(2) is between the ages of 16 and 25, inclusive, at the time the individual begins the term of service.

``(c) WAIVER.— The Corporation may waive the requirements of subsection (a)(5)(A) with respect to an individual if the program in which the individual seeks to become a participant conducts an independent evaluation demonstrating that the individual is incapable of obtaining a high school diploma or its equivalent.

``SEC. 138. SELECTION OF NATIONAL SERVICE PARTICIPANTS.

``(a) SELECTION PROCESS.— Subject to subsections (b) and (c) and section 131(f), the actual recruitment and selection of an individual to serve in a national service program receiving assistance under section 121 or to fill an approved national service position shall be conducted by the State, subdivision of a State, Indian tribe, public or private nonprofit organization, institution of higher education, Federal agency, or other entity to which the assistance and approved national service positions are provided.

``(b) NONDISCRIMINATION AND NONPOLITICAL SELECTION OF PARTICIPANTS.— The recruitment and selection of individuals to serve in national service programs receiving assistance under section 121 or to fill approved national service positions shall be consistent with the requirements of section 175.

``(c) SECOND TERM.— Acceptance into a national service program to serve a second term of service under section 139 shall only be available to individuals who perform satisfactorily in their first term of service.

``(d) RECRUITMENT AND PLACEMENT.— The Corporation and each State Commission shall establish a system to recruit individuals who desire to perform national service and to assist the placement of these individuals in approved national service positions, which may include positions available under titles I and II of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4951 et seq.). The Corporation and State Commissions shall disseminate information regarding available approved national service positions through cooperation with secondary schools, institutions of higher education, employment service offices, State vocational rehabilitation agencies within the meaning of the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) and other State agencies that primarily serve individuals with disabilities, and other appropriate entities, particularly those organizations that provide outreach to disadvantaged youths and youths who are individuals with disabilities.

``(e) NATIONAL LEADERSHIP POOL.—

``(1) SELECTION AND TRAINING.— From among individuals recruited under subsection (d), the Corporation may select individuals with significant leadership potential, as determined by the Corporation, to receive special training to enhance their leadership ability. The leadership training shall be provided by the Corporation directly or through a grant or contract.

``(2) EMPHASIS ON CERTAIN INDIVIDUALS.— In selecting individuals to receive leadership training under this subsection, the Corporation shall make special efforts to select individuals who have served—

``(A) in the Peace Corps;

``(B) as VISTA volunteers;

``(C) as participants in national service programs receiving assistance under section 121;

``(D) as participants in programs receiving assistance under subtitle D of the National and Community Service Act of 1990, as in effect on the day before the date of enactment of this subtitle; or

``(E) as members of the Armed Forces of the United States and who were honorably discharged from such service.

``(3) ASSIGNMENT.— At the request of a program that receives assistance under the national service laws, the Corporation may assign an individual who receives leadership training under paragraph (1) to work with the program in a leadership position and carry out assignments not otherwise performed by regular participants. An individual assigned to a program shall be considered to be a participant of the program.

``(f) EVALUATION OF SERVICE.— The Corporation shall issue regulations regarding the manner and criteria by which the service of a participant shall be evaluated to determine whether the service is satisfactory and successful for purposes of eligibility for a second term of service or a national service educational award.

``SEC. 139. TERMS OF SERVICE.

``(a) IN GENERAL.— As a condition of receiving a national service education award under subtitle D, a participant in an approved national service position shall be required to perform full- or part-time national service for at least one term of service specified in subsection (b).

``(b) TERM OF SERVICE.—

``(1) FULL-TIME SERVICE.— An individual performing full-time national service in an approved national service position shall agree to participate in the program sponsoring the position for not less than 1,700 hours during a period of not less than 9 months and not more than 1 year.

``(2) PART-TIME SERVICE.— Except as provided in paragraph (3), an individual performing part-time national service in an approved national service position shall agree to participate in the program sponsoring the position for not less than 900 hours during a period of—

``(A) not more than 2 years; or

``(B) not more than 3 years if the individual is enrolled in an institute of higher education while preforming all or a portion of the service.

``(3) REDUCTION IN HOURS OF PART-TIME SERVICE.— The Corporation may reduce the number of hours required to be served to successfully complete part-time national service to a level determined by the Corporation, except that any reduction in the required term of service shall include a corresponding reduction in the amount of any national service educational award that may be available under subtitle D with regard to that service.

``(c) RELEASE FROM COMPLETING TERM OF SERVICE.—

``(1) RELEASE AUTHORIZED.— A recipient of assistance under section 121 or a program sponsoring an approved national service position may release a participant from completing a term of service in the position—

``(A) for compelling personal circumstances as demonstrated by the participant; or

``(B) for cause.

``(2) EFFECT OF RELEASE FOR COMPELLING CIRCUMSTANCES.— If a participant eligible for release under paragraph (1)(A) is serving in an approved national service position, the recipient of assistance under section 121 or a program sponsoring an approved national service position may elect—

``(A) to grant such release and provide to the participant that portion of the national service educational award corresponding to the portion of the term of service actually completed, as provided in section 147(c); or

``(B) to permit the participant to temporarily suspend performance of the term of service for a period of up to 2 years (and such additional period as the Corporation may allow for extenuating circumstances) and, upon completion of such period, to allow return to the program with which the individual was serving in order to complete the remainder of the term of service and obtain the entire national service educational award.

``(3) EFFECT OF RELEASE FOR CAUSE.— A participant released for cause may not receive any portion of the national service educational award.

``SEC. 140. LIVING ALLOWANCES FOR NATIONAL SERVICE PARTICIPANTS.

``(a) PROVISION OF LIVING ALLOWANCE.—

``(1) LIVING ALLOWANCE REQUIRED.— Subject to paragraph (3), a national service program carried out using assistance provided under section 121 shall provide to each participant who participates on a full-time basis in the program a living allowance in an amount equal to or greater than the average annual subsistence allowance provided to VISTA volunteers under section 105 of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4955).

``(2) LIMITATION ON FEDERAL SHARE.— The amount of the annual living allowance provided under paragraph (1) that may be paid using assistance provided under section 121 and using any other Federal funds shall not exceed 85 percent of the total average annual provided to VISTA volunteers under section 105 of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4955).

``(3) MAXIMUM LIVING ALLOWANCE.— Except as provided in subsection (c), the total amount of an annual living allowance that may be provided to a participant in a national service program shall not exceed 200 percent of the average annual subsistence allowance provided to VISTA volunteers under section 105 of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4955).

``(4) PRORATION OF LIVING ALLOWANCE.— The amount provided as a living allowance under this subsection shall be prorated in the case of a participant who is authorized to serve a reduced term of service under section 139(b)(3).

``(5) WAIVER OR REDUCTION OF LIVING ALLOWANCE.— The Corporation may waive or reduce the requirement of paragraph (1) with respect to such national service program if such program demonstrates that—

``(A) such requirement is inconsistent with the objectives of the program; and

``(B) the amount of the living allowance that will be provided to each full-time participant is sufficient to meet the necessary costs of living (including food, housing, and transportation) in the area in which the program is located.

``(6) EXEMPTION.— The requirement of paragraph (1) shall not apply to any program that was in existence on the date of the enactment of the National and Community Service Trust Act of 1993.

``(b) COVERAGE OF CERTAIN EMPLOYMENT-RELATED TAXES.— To the extent a national service program that receives assistance under section 121 is subject, with respect to the participants in the program, to the taxes imposed on an employer under sections 3111 and 3301 of the Internal Revenue Code of 1986 (26 U.S.C. 3111, 3301) and taxes imposed on an employer under a workmen's compensation act, the assistance provided to the program under section 121 shall include an amount sufficient to cover 85 percent of such taxes based upon the lesser of—

``(1) the total average annual subsistence allowance provided to VISTA volunteers under section 105 of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4955); and

``(2) the annual living allowance established by the program.

``(c) EXCEPTION FROM MAXIMUM LIVING ALLOWANCE FOR CERTAIN ASSISTANCE.— A professional corps program described in section 122(a)(8) that desires to provide a living allowance in excess of the maximum allowance authorized in subsection (a)(3) may still apply for such assistance, except that—

``(1) any assistance provided to the applicant under section 121 may not be used to pay for any portion of the allowance;

``(2) the applicant shall apply for such assistance only by submitting an application to the Corporation for assistance on a competitive basis; and

``(3) the national service program shall be operated directly by the applicant and shall meet urgent, unmet human, educational, environmental, or public safety needs, as determined by the Corporation.

``(d) HEALTH INSURANCE.—

``(1) IN GENERAL.— A State or other recipient of assistance under section 121 shall provide a basic health care policy for each full-time participant in a national service program carried out or supported using the assistance, if the participant is not otherwise covered by a health care policy. Not more than 85 percent of the cost of a premium shall be provided by the Corporation, with the remaining cost paid by the entity receiving assistance under section 121. The Corporation shall establish minimum standards that all plans must meet in order to qualify for payment under this part, any circumstances in which an alternative health care policy may be substituted for the basic health care policy, and mechanisms to prohibit participants from dropping existing coverage.

``(2) OPTION.— A State or other recipient of assistance under section 121 may elect to provide from its own funds a health care policy for participants that does not meet all of the standards established by the Corporation if the fair market value of such policy is equal to or greater than the fair market value of a plan that meets the minimum standards established by the Corporation, and is consistent with other applicable laws.

``(e) CHILD CARE.—

``(1) AVAILABILITY.— A State or other recipient of assistance under section 121 shall—

``(A) make child care available for children of each full-time participant who needs child care in order to participate in a national service program carried out or supported by the recipient using the assistance; or

``(B) provide a child care allowance to each full-time participant in a national service program who needs such assistance in order to participate in the program.

``(2) GUIDELINES.— The Corporation shall establish guidelines regarding the circumstances under which child care shall be made available under this subsection and the value of any allowance to be provided.

``(f) INDIVIDUALIZED SUPPORT SERVICES.— A State or other recipient of assistance under section 121 shall provide reasonable accommodation, including auxiliary aids and services (as defined in section 3(1) of the Americans with Disabilities Act of 1990 (42 U.S.C. 12102(1))), based on the individualized need of a participant who is a qualified individual with a disability (as defined in section 101(8) of such Act (42 U.S.C. 12111(8))).

``(g) WAIVER OF LIMITATION ON FEDERAL SHARE.— The Corporation may waive in whole or in part the limitation on the Federal share specified in this section with respect to a particular national service program in any fiscal year if the Corporation determines that such a waiver would be equitable due to a lack of available financial resources at the local level.

``(h) LIMITATION ON NUMBER OF TERMS OF SERVICE FOR FEDERALLY SUBSIDIZED LIVING ALLOWANCE.— No national service program may use assistance provided under section 121, or any other Federal funds, to provide a living allowance under subsection (a), a health care policy under subsection (d), or child care or a child care allowance under subsection (e), to an individual for a third, or subsequent, term of service described in section 139(b) by the individual in a national service program carried out under this subtitle.

``SEC. 141. NATIONAL SERVICE EDUCATIONAL AWARDS.

``(a) ELIGIBILITY GENERALLY.— A participant in a national service program carried out using assistance provided to an applicant under section 121 shall be eligible for the national service educational award described in subtitle D if the participant—

``(1) serves in an approved national service position; and

``(2) satisfies the eligibility requirements specified in section 146 with respect to service in that approved national service position.

``(b) SPECIAL RULE FOR VISTA VOLUNTEERS.— A VISTA volunteer who serves in an approved national service position shall be ineligible for a national service educational award if the VISTA volunteer accepts the stipend authorized under section 105(a)(1) of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4955(a)(1)).´´.

(c) TABLE OF CONTENTS RELATED TO SUBTITLE C.—

Section 1(b) of the National and Community Service Act of 1990 (Public Law 101-610; 104 Stat. 3127) is amended by striking the items relating to subtitle C of title I of such Act and inserting the following new items:

``Subtitle C — National Service Trust Program

``Part I — Investment in National Service

``Sec. 121. Authority to provide assistance and approved national service positions.

``Sec. 122. Types of national service programs eligible for program assistance.

``Sec. 123. Types of national service positions eligible for approval for national service educational awards.

``Sec. 124. Types of program assistance.

``Sec. 125. Training and technical assistance.

``Sec. 126. Other special assistance.

``Part II — Application and Approval Process

``Sec. 129. Provision of assistance and approved national service positions by competitive and other means.

``Sec. 130. Application for assistance and approved national service positions.

``Sec. 131. National service program assistance requirements.

``Sec. 132. Ineligible service categories.

``Sec. 133. Consideration of applications.

``Part III — National Service Participants

``Sec. 137. Description of participants.

``Sec. 138. Selection of national service participants.

``Sec. 139. Terms of service.

``Sec. 140. Living allowances for national service participants.

``Sec. 141. National service educational awards.´´.

(d) LIVING ALLOWANCE UNDER SUBTITLE I.—

Section 199M(a) of the National and Community Service Act of 1990 (former section 133(a) of such Act as redesignated in subsection (a)(3) of this section) (42 U.S.C. 12553(a)) is amended by striking paragraphs (1) and (2) and inserting the following new paragraphs:

``(1) LIVING ALLOWANCE REQUIRED.— Subject to paragraph (3), each participant in a full-time youth corps program that receives assistance under this subtitle shall receive a living allowance in an amount equal to or greater than the average annual subsistence allowance provided to VISTA volunteers under section 105 of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4955).

``(2) LIMITATION ON FEDERAL SHARE.— The amount of the annual living allowance provided under paragraph (1) that may be paid using assistance provided under this subtitle, section 121, and any other Federal funds shall not exceed 85 percent of the total average annual subsistence allowance provided to VISTA volunteers under section 105 of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4955).

``(3) MAXIMUM LIVING ALLOWANCE.— The total amount of an annual living allowance that may be provided to a participant in a full-time youth corps program that receives assistance under this subtitle shall not exceed 200 percent of the average annual subsistence allowance provided to VISTA volunteers under section 105 of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4955).

``(4) WAIVER OR REDUCTION OF LIVING ALLOWANCE.— The Corporation may waive or reduce the requirement of paragraph (1) with respect to such national service program if such program demonstrates that—

``(A) such requirement is inconsistent with the objectives of the program; and

``(B) the amount of the living allowance that will be provided to each full-time participant is sufficient to meet the necessary costs of living (including food, housing, and transportation) in the area in which the program is located.

``(5) EXEMPTION.— The requirement of paragraph (1) shall not apply to any program that was in existence on the date of the enactment of the National and Community Service Trust Act of 1993.´´.

(e) TECHNICAL AND CONFORMING AMENDMENTS.—

(1) REFERENCES.—

Subtitle I of title I of the National and Community Service Act of 1990 (as so redesignated by subsection (a)(1) of this section) is amended by striking ``Commission´´ each place it appears in sections 199A, 199C, 199D, 199F, 199I, 199M, and 199N (as redesignated in subsection (a)(3) of this section) and inserting ``Corporation´´.

(2) GENERAL AUTHORITY.—

Section 199A of such Act (as redesignated in subsection (a)(3) of this section) (42 U.S.C. 12541) is amended—

(A) by striking ``under section 102´´;

(B) by striking ``, to the Secretary of the Interior, or to the Director of ACTION´´ and inserting ``or to the Secretary of the Interior´´; and

(C) by adding at the end the following new sentence: ``To the extent practicable, the Corporation shall apply the provisions of subtitle C in making grants under this section.´´.

(3) PURCHASE OF CAPITAL EQUIPMENT.—

Section 199B of such Act (as redesignated in subsection (a)(3) of this section) (42 U.S.C. 12542) is amended to read as follows:

``SEC. 199B. LIMITATION ON PURCHASE OF CAPITAL EQUIPMENT.

``Not to exceed 10 percent of the amount of assistance made available to a program agency under this subtitle shall be used for the purchase of major capital equipment.´´.

(4) STATE APPLICATION.—

Section 199C of such Act (as redesignated in subsection (a)(3) of this section) (42 U.S.C. 12543) is amended—

(A) in subsection (a)—

(i) by striking ``section 122(b)´´ and inserting ``section 199A´´; and

(ii) by striking ``, including the information required under subsection (b)´´ before the period at the end thereof; and

(B) by striking subsections (c) and (d).

(5) FOCUS OF PROGRAMS.—

Section 199D of such Act (as redesignated in subsection (a)(3) of this section) (42 U.S.C. 12544) is amended—

(A) by striking subsection (b); and

(B) by redesignating subsection (c) as subsection (b).

(6) PUBLIC LANDS.—

Section 199F(b) of such Act (as redesignated in subsection (a)(3) of this section) (42 U.S.C. 12546(b)) is amended by striking ``section 123´´ and inserting ``section 199C´´.

(7) PREFERENCE.—

Section 199I(a) of such Act (as redesignated in subsection (a)(3) of this section) (42 U.S.C. 12549) is amended by striking ``section 123´´ and inserting ``section 199C´´.

(8) OBSOLETE PROVISIONS.—

Such subtitle is further amended—

(A) by striking sections 199H and 199L (as redesignated in subsection (a)(3) of this section) (42 U.S.C. 12548, 12552); and

(B) by redesignating sections 199I, 199J, 199K, 199M, 199N, and 199O (as previosly redesignated) as sections 199H, 199I, 199J, 199K, 199L, and 199M, respectively.

(f) TABLE OF CONTENTS RELATED TO SUBTITLE I.—

Section 1(b) of the National and Community Service Act of 1990 (Public Law 101-610; 104 Stat. 3127) is amended by inserting after the item relating to section 195O the following new items:

``Subtitle I — American Conservation and Youth Corps

``Sec. 199. Short title.

``Sec. 199A. General authority.

``Sec. 199B. Limitation on purchase of capital equipment.

``Sec. 199C. State application.

``Sec. 199D. Focus of programs.

``Sec. 199E. Related programs.

``Sec. 199F. Public lands or Indian lands.

``Sec. 199G. Training and education services.

``Sec. 199H. Preference for certain projects.

``Sec. 199I. Age and citizenship criteria for enrollment.

``Sec. 199J. Use of volunteers.

``Sec. 199K. Living allowance.

``Sec. 199L. Joint programs.

``Sec. 199M. Federal and State employee status.´´.

Sec. 102. National Service Trust and Provision of National Service Educational Awards.

(a) ESTABLISHMENT OF TRUST; PROVISION OF AWARDS.—

Subtitle D of title I of the National and Community Service Act of 1990 (42 U.S.C. 12571 et seq.) is amended to read as follows:

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

``SEC. 145. ESTABLISHMENT OF THE NATIONAL SERVICE TRUST.

``(a) ESTABLISHMENT.— There is established in the Treasury of the United States an account to be known as the National Service Trust. The Trust shall consist of—

``(1) from the amounts appropriated to the Corporation and made available to carry out this subtitle pursuant to section 501(a)(2), such amounts as the Corporation may designate to be available for the payment of—

``(A) national service educational awards; and

``(B) interest expenses pursuant to section 148(e);

``(2) any amounts received by the Corporation as gifts, bequests, devises, or otherwise pursuant to section 196(a)(2); and

``(3) the interest on, and proceeds from the sale or redemption of, any obligations held by the Trust.

``(b) INVESTMENT OF TRUST.— It shall be the duty of the Secretary of the Treasury to invest in full the amounts appropriated to the Trust. Except as otherwise expressly provided in instruments concerning a gift, bequest, devise, or other donation and agreed to by the Corporation, such investments may be made only in interest-bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States. For such purpose, such obligations may be acquired on original issue at the issue price or by purchase of outstanding obligations at the market price. Any obligation acquired by the Trust may be sold by the Secretary at the market price.

``(c) EXPENDITURES FROM TRUST.— Amounts in the Trust shall be available, to the extent provided for in advance by appropriation, for payments of national service educational awards in accordance with section 148.

``(d) REPORTS TO CONGRESS ON RECEIPTS AND EXPENDITURES.— Not later than March 1 of each year, the Corporation shall submit a report to the Congress on the financial status of the Trust during the preceding fiscal year. Such report shall—

``(1) specify the amount deposited to the Trust from the most recent appropriation to the Corporation, the amount received by the Corporation as gifts, bequests, devises, or otherwise pursuant to section 196(a)(2) during the period covered by the report, and any amounts obtained by the Trust pursuant to subsection (a)(3);

``(2) identify the number of individuals who are currently performing service to qualify, or have qualified, for national service educational awards;

``(3) identify the number of individuals whose expectation to receive national service educational awards during the period covered by the report—

``(A) has been reduced pursuant to section 147(c); or

``(B) has lapsed pursuant to section 146(d); and

``(4) estimate the number of additional approved national service positions that the Corporation will be able to make available under subtitle C on the basis of any accumulated surplus in the Trust above the amount required to provide national service educational awards to individuals identified under paragraph (2), including any amounts available as a result of the circumstances referred to in paragraph (3).

``SEC. 146. INDIVIDUALS ELIGIBLE TO RECEIVE A NATIONAL SERVICE EDUCATIONAL AWARD FROM THE TRUST.

``(a) ELIGIBLE INDIVIDUALS.— An individual shall receive a national service educational award from the National Service Trust if the individual—

``(1) successfully completes the required term of service described in subsection (b) in an approved national service position;

``(2) was 17 years of age or older at the time the individual began serving in the approved national service position or was an out-of-school youth serving in an approved national service position with a youth corps program described in section 122(a)(2) or a program described in section 122(a)(9);

``(3) at the time the individual uses the national service educational award—

``(A) has received a high school diploma, or the equivalent of such diploma;

``(B) is enrolled at an institution of higher education on the basis of meeting the standard described in paragraph (1) or (2) of subsection (a) of section 484 of the Higher Education Act of 1965 (20 U.S.C. 1091) and meets the requirements of subsection (a) of such section; or

``(C) has received a waiver described in section 137(c); and

``(3) has received a high school diploma, or the equivalent of such diploma, at the time the individual uses the national service educational award, unless this requirement has been waived based on an individual education assessment conducted by the program; and

``(4) is a citizen or national of the United States or lawful permanent resident alien of the United States.

``(b) TERM OF SERVICE.— The term of service for an approved national service position shall not be less than the full- or part-time term of service specified in section 139(b).

``(c) LIMITATION ON NUMBER OF TERMS OF SERVICE FOR AWARDS.— Although an individual may serve more than 2 terms of service described in subsection (b) in an approved national service position, the individual shall receive a national service educational award from the National Service Trust only on the basis of the first and second of such terms of service.

``(d) TIME FOR USE OF EDUCATIONAL AWARD.—

``(1) SEVEN-YEAR REQUIREMENT.— An individual eligible to receive a national service educational award under this section may not use such award after the end of the 7-year period beginning on the date the individual completes the term of service in an approved national service position that is the basis of the award.

``(2) EXCEPTION.— The Corporation may extend the period within which an individual may use a national service educational award if the Corporation determines that the individual—

``(A) was unavoidably prevented from using the national service educational award during the original 7-year period; or

``(B) performed another term of service in an approved national service position during that period.

``(e) SUSPENSION OF ELIGIBILITY FOR DRUG-RELATED OFFENSES.—

``(1) IN GENERAL.— An individual who, after qualifying under this section as an eligible individual, has been convicted under any Federal or State law of the possession or sale of a controlled substance shall not be eligible to receive a national service educational award during the period beginning on the date of such conviction and ending after the interval specified in the following table:

``If convicted of:
	The possession of a controlled substance:		Ineligibility period is:
		1st conviction		1 year
		2nd conviction		2 years
		3rd conviction		indefinite
	The sale of a controlled substance:
		1st conviction		2 years
		2nd conviction		indefinite

``(2) REHABILITATION.— An individual whose eligibility has been suspended under paragraph (1) shall resume eligibility before the end of the period determined under such paragraph if the individual satisfactorily completes a drug rehabilitation program that complies with such criteria as the Corporation shall prescribe for purposes of this paragraph.

``(3) FIRST CONVICTIONS.— An individual whose eligibility has been suspended under paragraph (1) and is convicted of a first offense may resume eligibility before the end of the period determined under such paragraph if the individual demonstrates that he or she has enrolled or been accepted for enrollment in a drug rehabilitation program described in paragraph (2).

``(4) DEFINITIONS.— As used in this subsection, the term ``controlled substance´´ has the meaning given in section 102(6) of the Controlled Substances Act (21 U.S.C. 802(6)).

``(5) EFFECTIVE DATE.— This subsection shall be effective upon publication by the Corporation in the Federal Register of criteria prescribed under paragraph (2).

``(f) AUTHORITY TO ESTABLISH DEMONSTRATION PROGRAMS.— The Corporation may establish by regulation demonstration programs for the creation and evaluation of innovative volunteer and community service programs.

``SEC. 147. DETERMINATION OF THE AMOUNT OF THE NATIONAL SERVICE EDUCATIONAL AWARD.

``(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, for each of not more than 2 of such terms of service, equal to 90 percent of—

``(1) one-half of an amount equal to the aggregate basic educational assistance allowance provided in section 3015(b)(1) of title 38, United States Code (as in effect on July 28, 1993), for the period referred to in section 3013(a)(1) of such title (as in effect on July 28, 1993), for a member of the Armed Forces who is entitled to such an allowance under section 3011 of such title and whose initial obligated period of active duty is 2 years; less

``(2) one-half of the aggregate basic contribution required to be made by the member in section 3011(b) of such title (as in effect on July 28, 1993).

``(b) AMOUNT FOR PART-TIME NATIONAL SERVICE.— Except as provided in subsection (c), an individual described in section 146(a) who successfully completes a required term of part-time national service in an approved national service position shall receive a national service educational award having a value, for each of not more than 2 of such terms of service, equal to 50 percent of value of the national service educational award determined under subsection (a).

``(c) AWARD FOR PARTIAL COMPLETION OF SERVICE.— If an individual serving in an approved national service position is released in accordance with section 139(c)(1)(A) from completing the full-time or part-time term of service agreed to by the individual, the Corporation may provide the individual with that portion of the national service educational award approved for the individual that corresponds to the quantity of the term of service actually completed by the individual.

``SEC. 148. DISBURSEMENT OF NATIONAL SERVICE EDUCATIONAL AWARDS.

``(a) IN GENERAL.— Amounts in the Trust shall be available—

``(1) to repay student loans in accordance with subsection (b);

``(2) to pay all or part of the cost of attendance at an institution of higher education in accordance with subsection (c);

``(3) to pay expenses incurred in participating in an approved school-to-work program in accordance with subsection (d); and

``(4) to pay interest expenses in accordance with regulations prescribed pursuant to subsection (e).

``(b) USE OF EDUCATIONAL AWARD TO REPAY OUTSTANDING STUDENT LOANS.—

``(1) APPLICATION BY ELIGIBLE INDIVIDUALS.— An eligible individual under section 146 who desires to apply the national service educational award of the individual to the repayment of qualified student loans shall submit, in a manner prescribed by the Corporation, an application to the Corporation that—

``(A) identifies, or permits the Corporation to identify readily, the holder or holders of such loans;

``(B) indicates, or permits the Corporation to determine readily, the amounts of principal and interest outstanding on the loans;

``(C) specifies, if the outstanding balance is greater than the amount disbursed under paragraph (2), which of the loans the individual prefers to be paid by the Corporation; and

``(D) contains or is accompanied by such other information as the Corporation may require.

``(2) DISBURSEMENT OF REPAYMENTS.— Upon receipt of an application from an eligible individual of an application that complies with paragraph (1), the Corporation shall, as promptly as practicable consistent with paragraph (5), disburse the amount of the national service educational award that the eligible individual has earned. Such disbursement shall be made by check or other means that is payable to the holder of the loan and requires the endorsement or other certification by the eligible individual.

``(3) APPLICATION OF DISBURSED AMOUNTS.— If the amount disbursed under paragraph (2) is less than the principal and accrued interest on any qualified student loan, such amount shall be applied according to the specified priorities of the individual.

``(4) REPORTS BY HOLDERS.— Any holder receiving a loan payment pursuant to this subsection shall submit to the Corporation such information as the Corporation may require to verify that such payment was applied in accordance with this subsection and any regulations prescribed to carry out this subsection.

``(5) NOTIFICATION OF INDIVIDUAL.— The Corporation upon disbursing the national service educational award, shall notify the individual of the amount paid for each outstanding loan and the date of payment.

``(6) AUTHORITY TO AGGREGATE PAYMENTS.— The Corporation may, by regulation, provide for the aggregation of payments to holders under this subsection.

``(7) DEFINITION OF QUALIFIED STUDENT LOANS.— As used in this subsection, the term ``qualified student loans´´ means—

``(A) any loan made, insured, or guaranteed pursuant to title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.), other than a loan to a parent of a student pursuant to section 428B of such Act (20 U.S.C. 1078-2); and

``(B) any loan made pursuant to title VII or VIII of the Public Health Service Act (42 U.S.C. 292a et seq.).

``(8) DEFINITION OF HOLDER.— As used in this subsection, the term ``holder´´ with respect to any eligible loan means the original lender or, if the loan is subsequently sold, transferred, or assigned to some other person, and such other person acquires a legally enforceable right to receive payments from the borrower, such other person.

``(c) USE OF EDUCATIONAL AWARDS TO PAY CURRENT EDUCATIONAL EXPENSES.—

``(1) APPLICATION BY ELIGIBLE INDIVIDUAL.— An eligible individual under section 146 who desires to apply the individual's national service educational award to the payment of current full-time or part-time educational expenses shall, on a form prescribed by the Corporation, submit an application to the institution of higher education in which the student will be enrolled that contains such information as the Corporation may require to verify the individual's eligibility.

``(2) SUBMISSION OF REQUESTS FOR PAYMENT BY INSTITUTIONS.— An institution of higher education that receives one or more applications that comply with paragraph (1) shall submit to the Corporation a statement, in a manner prescribed by the Corporation, that—

``(A) identifies each eligible individual filing an application under paragraph (1) for a disbursement of the individual's national service educational award under this subsection;

``(B) specifies the amounts for which such eligible individuals are, consistent with paragraph (6), qualified for disbursement under this subsection;

``(C) certifies that—

``(i) the institution of higher education has in effect a program participation agreement under section 487 of the Higher Education Act of 1965 (20 U.S.C. 1094);

``(ii) the institution's eligibility to participate in any of the programs under title IV of such Act (20 U.S.C. 1070 et seq.) has not been limited, suspended, or terminated; and

``(iii) individuals using national service educational awards received under this subtitle to pay for educational costs do not comprise more than 15 percent of the total student population of the institution; and

``(D) contains such provisions concerning financial compliance as the Corporation may require.

``(3) DISBURSEMENT OF PAYMENTS.— Upon receipt of a statement from an institution of higher education that complies with paragraph (2), the Corporation shall, subject to paragraph (4), disburse the total amount of the national service educational awards for which eligible individuals who have submitted applications to that institution under paragraph (1) are scheduled to receive. Such disbursement shall be made by check or other means that is payable to the institution and requires the endorsement or other certification by the eligible individual.

``(4) MULTIPLE DISBURSEMENTS REQUIRED.— The total amount required to be disbursed to an institution of higher education under paragraph (3) for any period of enrollment shall be disbursed by the Corporation in 2 or more installments, none of which exceeds 1/2 of such total amount. The interval between the first and second such installment shall not be less than 1/2 of such period of enrollment, except as necessary to permit the second installment to be paid at the beginning of the second semester, quarter, or similar division of such period of enrollment.

``(5) REFUND RULES.— The Corporation shall, by regulation, provide for the refund to the Corporation (and the crediting to the national service educational award of an eligible individual) of amounts disbursed to institutions for the benefit of eligible individuals who withdraw or otherwise fail to complete the period of enrollment for which the assistance was provided. Such regulations shall be consistent with the fair and equitable refund policies required of institutions pursuant to section 484B of the Higher Education Act of 1965 (20 U.S.C. 1091b). Amounts refunded to the Trust pursuant to this paragraph may be used by the Corporation to fund additional approved national service positions under subtitle C.

``(6) MAXIMUM AWARD.— The portion of an eligible individual's total available national service educational award that may be disbursed under this subsection for any period of enrollment shall not exceed the difference between—

``(A) the eligible individual's cost of attendance for such period of enrollment, determined in accordance with section 472 of the Higher Education Act of 1965 (20 U.S.C. 1087ll); and

``(B) the sum of—

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

``(ii) the student's veterans' education benefits, determined in accordance with section 480(c) of such Act (20 U.S.C. 1087vv(c)).

``(d) USE OF EDUCATIONAL AWARD TO PARTICIPATE IN APPROVED SCHOOL-TO-WORK PROGRAMS.— The Corporation shall by regulation provide for the payment of national service educational awards to permit eligible individuals to participate in school-to-work programs approved by the Secretaries of Labor and Education.

``(e) INTEREST PAYMENTS DURING FORBEARANCE ON LOAN REPAYMENT.— The Corporation shall provide by regulation for the payment on behalf of an eligible individual of interest that accrues during a period for which such individual has obtained forbearance in the repayment of a qualified student loan (as defined in subsection (b)(6)), if the eligible individual successfully completes the individual's required term of service (as determined under section 146(b)). Such regulations shall be prescribed after consultation with the Secretary of Education.

``(f) EXCEPTION.— With the approval of the Director, an approved national service program funded under section 121, may offer participants the option of waiving their right to receive a national service educational award in order to receive an alternative post-service benefit funded by the program entirely with non-Federal funds.

``(g) DEFINITION OF INSTITUTION OF HIGHER EDUCATION.— Notwithstanding section 101 of this Act, for purposes of this section the term ``institution of higher education´´ has the meaning provided by section 481(a) of the Higher Education Act of 1965 (20 U.S.C. 1088(a)).´´.

(b) TABLE OF CONTENTS.—

Section 1(b) of the National and Community Service Act of 1990 (Public Law 101-610; 104 Stat. 3127) is amended by striking the items relating to subtitle D of title I of such Act and inserting the following new items:

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

``Sec. 145. Establishment of the National Service Trust.

``Sec. 146. Individuals eligible to receive a national service educational award from the Trust.

``Sec. 147. Determination of the amount of the national service educational award.

``Sec. 148. Disbursement of national service educational awards.´´.

(c) CONFORMING AMENDMENTS.—

(1) FORBEARANCE IN THE COLLECTION OF STAFFORD LOANS.—

Section 428 of the Higher Education Act of 1965 (20 U.S.C. 1078) is amended—

(A) in subsection (b)(1)—

(i) by redesignating subparagraphs (W), (X), and (Y) as subparagraphs (X), (Y), and (Z), respectively; and

(ii) by inserting immediately after subparagraph (V) the following new subparagraph:

``(W)(i) provides that, upon written request, a lender shall grant a borrower forbearance on such terms as are otherwise consistent with the regulations of the Secretary, during periods in which the borrower is serving in a national service position, for which the borrower receives a national service educational award under the National and Community Service Trust Act of 1993;

``(ii) provides that clauses (iii) and (iv) of subparagraph (V) shall also apply to a forbearance granted under this subparagraph; and

``(iii) provides that interest shall continue to accrue on a loan for which a borrower receives forbearance under this subparagraph and shall be capitalized or paid by the borrower;´´; and

(B) in subsection (c)(3)(A), by striking ``subsection (b)(1)(V)´´ and inserting ``subparagraphs (V) and (W) of subsection (b)(1)´´.

(2) ELIGIBILITY FOR STAFFORD LOAN FORGIVENESS.—

Section 428J of the Higher Education Act of 1965 (20 U.S.C. 1078-10) is amended—

(A) in subsection (b)(1), by striking ``October 1, 1992´´ and inserting ``October 1, 1989´´; and

(B) in subsection (c), by adding at the end the following new paragraph:

``(5) INELIGIBILITY OF NATIONAL SERVICE EDUCATIONAL AWARD RECIPIENTS.— No student borrower may, for the same volunteer service, receive a benefit under both this section and subtitle D of title I of the National and Community Service Act of 1990 (42 U.S.C. 12571 et seq.).´´.

(3) ELIGIBILITY FOR PERKINS LOAN FORGIVENESS.—

Section 465(a) of the Higher Education Act of 1965 (20 U.S.C. 1087ee(a)) is amended by adding at the end the following new paragraph:

``(6) No borrower may, for the same volunteer service, receive a benefit under both this section and subtitle D of title I of the National and Community Service Act of 1990 (42 U.S.C. 12571 et seq.).´´.

(4) DEFINITION OF INCOME.—

Section 480(a)(2) of the Higher Education Act of 1965 (20 U.S.C. 1087vv(a)(2)) is amended by inserting after ``by an individual´´ the following: ``, and no portion of a national service educational award or post-service benefit received by an individual under title I of the National and Community Service Act of 1990 (42 U.S.C. 12571 et seq.),´´.

(5) IMPACT ON GENERAL NEEDS ANALYSIS.—

Section 480(j) of the Higher Education Act of 1965 (20 U.S.C. 1087vv(j)) is amended by adding at the end the following new paragraph:

``(3) Notwithstanding paragraph (1), a national service educational award or post-service benefit under title I of the National and Community Service Act of 1990 (42 U.S.C. 12571 et seq.) shall not be treated as financial assistance for purposes of section 471(3).´´.

Sec. 103. School-based and Community-Based Service-Learning Programs.

(a) AMENDMENTS TO SERVE-AMERICA PROGRAMS.—

(1) PURPOSE.—

The purpose of this subsection is to improve the Serve-America programs established under part I of subtitle B of the National and Community Service Act of 1990, and to enable the Corporation for National and Community Service, and the entities receiving financial assistance under such part, to—

(A) work with teachers in elementary schools and secondary schools within a community, and with community-based agencies, to create and offer service-learning opportunities for all school-age youth;

(B) educate teachers, and faculty providing teacher training and retraining, about service-learning, and incorporate service-learning opportunities into classroom teaching to strengthen academic learning;

(C) coordinate the work of adult volunteers who work with elementary and secondary schools as part of their community service activities; and

(D) work with employers in the communities to ensure that projects introduce the students to various careers and expose the students to needed further education and training.

(2) PROGRAMS.—

Subtitle B of title I of the National and Community Service Act of 1990 (42 U.S.C. 12501 et seq.) is amended by striking the subtitle heading and all that follows through the end of part I and inserting the following:

``Subtitle B — School-Based and Community-Based Service-Learning Programs

``Part I — Serve-America Programs

``Subpart A — School-Based Programs for Students

``SEC. 111. AUTHORITY TO ASSIST STATES AND INDIAN TRIBES.

``(a) USE OF FUNDS.— The Corporation, in consultation with the Secretary of Education, may make grants under section 112(b)(1), and allotments under subsections (a) and (b)(2) of section 112, to States (through State educational agencies), and to Indian tribes, to pay for the Federal share of—

``(1) planning and building the capacity of the States or Indian tribes (which may be accomplished through grants or contracts with qualified organizations) to implement school-based service-learning programs, including—

``(A) providing training for teachers, supervisors, personnel from community-based agencies (particularly with regard to the utilization of participants), and trainers, to be conducted by qualified individuals or organizations that have experience with service-learning;

``(B) developing service-learning curricula to be integrated into academic programs, including the age-appropriate learning component described in section 114(d)(2);

``(C) forming local partnerships described in paragraph (2) or (4) to develop school-based service-learning programs in accordance with this subpart;

``(D) devising appropriate methods for research and evaluation of the educational value of service-learning and the effect of service-learning activities on communities; and

``(E) establishing effective outreach and dissemination of information to ensure the broadest possible involvement of community-based agencies with demonstrated effectiveness in working with school-age youth in their communities;

``(2) implementing, operating, or expanding school-based service-learning programs, which may include paying for the cost of the recruitment, training, supervision, placement, salaries, and benefits of service-learning coordinators, through State distribution of Federal funds made available under this subpart to projects operated by local partnerships among—

``(A) local educational agencies; and

``(B) one or more community partners that—

``(i) shall include a public or private nonprofit organization that—

``(I) has a demonstrated expertise in the provision of services to meet unmet human, educational, environmental, or public safety needs;

``(II) was in existence at least 1 year before the date on which the organization submitted an application under section 114; and

``(III) will make projects available for participants, who shall be students; and

``(ii) may include a private for-profit business or private elementary or secondary school;

``(3) planning of school-based service-learning programs, through State distribution of Federal funds made available under this subpart to local educational agencies, which planning may include paying for the cost of—

``(A) the salaries and benefits of service-learning coordinators; or

``(B) the recruitment, training, supervision, and placement of service-learning coordinators who are participants in a program under subtitle C or receive a national service educational award under subtitle D,

``who will identify the community partners described in paragraph (2)(B) and assist in the design and implementation of a program described in paragraph (2); and

``(4) implementing, operating, or expanding school-based service-learning programs involving adult volunteers to utilize service-learning to improve the education of students, through State distribution of Federal funds made available under this part to local partnerships among—

``(A) local educational agencies; and

``(B) one or more—

``(i) public or private nonprofit organizations;

``(ii) other educational agencies; or

``(iii) private for-profit businesses,

``that coordinate and operate projects for participants, who shall be students.

``(b) DUTIES OF SERVICE-LEARNING COORDINATOR.— A service-learning coordinator referred to in paragraph (2) or (3) of subsection (a) shall provide services to a local educational agency by—

``(1) providing technical assistance and information to, and facilitating the training of, teachers who want to use service-learning in their classrooms;

``(2) assisting local partnerships described in subsection (a) in the planning, development, and execution of service-learning projects; and

``(3) carrying out such other duties as the local educational agency may determine to be appropriate.

``(c) RELATED EXPENSES.— A partnership, local educational agency, or other qualified organization that receives financial assistance under this subpart may, in carrying out the activities described in subsection (a), use such assistance to pay for the Federal share of reasonable costs related to the supervision of participants, program administration, transportation, insurance, and evaluations, and for other reasonable expenses related to the activities.

``SEC. 111A. AUTHORITY TO ASSIST LOCAL APPLICANTS IN NONPARTICIPATING STATES.

``In any fiscal year in which a State does not submit an application under section 113, for an allotment under subsection (a) or (b)(2) of section 112, that meets the requirements of section 113 and such other requirements as the Chief Executive Officer may determine to be appropriate, the Corporation may use the allotment of that State to make direct grants to pay for the Federal share of the cost of—

``(1) carrying out the activities described in paragraph (2) or (4) of section 111(a), to a local partnership described in such paragraph; or

``(2) carrying out the activities described in paragraph (3) of such section, to an agency described in such paragraph,

``that is located in the State.

``SEC. 111B. AUTHORITY TO ASSIST PUBLIC OR PRIVATE NONPROFIT ORGANIZATIONS.

``(a) IN GENERAL.— The Corporation may make grants under section 112(b)(1) to public or private nonprofit organizations that—

``(1) have experience with service-learning;

``(2) were in existence at least 1 year before the date on which the organization submitted an application under section 114(a); and

``(3) meet such other criteria as the Chief Executive Officer may establish.

``(b) USE OF FUNDS.— Such organizations may use grants made under subsection (a) to make grants to partnerships described in paragraph (2) or (4) of section 111(a) to implement, operate, or expand school-based service-learning programs as described in such section and provide technical assistance and training to appropriate persons.

``SEC. 112. GRANTS AND ALLOTMENTS.

``(a) INDIAN TRIBES AND TERRITORIES.— Of the amounts appropriated to carry out this subpart for any fiscal year, the Corporation shall reserve an amount of not more than 3 percent for payments to Indian tribes, the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, to be allotted in accordance with their respective needs. The Corporation may also make payments from such amount to Palau, in accordance with its needs, until such time as the Compact of Free Association with Palau is ratified.

``(b) GRANTS AND ALLOTMENTS THROUGH STATES.— The Corporation shall use the remainder of the funds appropriated to carry out this subpart for any fiscal year as follows:

``(1) GRANTS.— Except as provided in paragraph (3), from 25 percent of such remainder, the Corporation may make grants, on a competitive basis, to—

``(A) States and Indian tribes; or

``(B) as described in section 111B, to grantmaking entities.

``(2) ALLOTMENTS.—

``(A) SCHOOL-AGE YOUTH.— Except as provided in paragraph (3), from 37.5 percent of such remainder, the Corporation shall allot to each State an amount that bears the same ratio to 37.5 percent of such remainder as the number of school-age youth in the State bears to the total number of school-age youth of all States.

``(B) ALLOCATION UNDER ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965.— Except as provided in paragraph (3), from 37.5 percent of such remainder, the Corporation shall allot to each State an amount that bears the same ratio to 37.5 percent of such remainder as the allocation to the State for the previous fiscal year under chapter 1 of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 2711 et seq.) bears to such allocations to all States.

``(3) MINIMUM AMOUNT.— No State shall receive, under paragraph (2), an allotment that is less than the allotment such State received for fiscal year 1993 under section 112(b) of this Act, as in effect on the day before the date of enactment of this part. If the amount of funds made available in a fiscal year to carry out paragraph (2) is insufficient to make such allotments, the Corporation shall make available sums from the 25 percent described in paragraph (1) for such fiscal year to make such allotments.

``(4) DEFINITION.— Notwithstanding section 101(26), for purposes of this subsection, the term ``State´´ means each of the several States, the District of Columbia, and the Commonwealth of Puerto Rico.

``(c) REALLOTMENT.— If the Corporation determines that the allotment of a State or Indian tribe under this section will not be required for a fiscal year because the State or Indian tribe does not submit an application for the allotment under section 113 that meets the requirements of such section and such other requirements as the Chief Executive Officer may determine to be appropriate, the Corporation shall, after making any grants under section 111A to a partnership or agency described in such section, make any remainder of such allotment available for reallotment to such other States, and Indian tribes, with approved applications submitted under section 113, as the Corporation may determine to be appropriate.

``(d) EXCEPTION.— Notwithstanding subsections (a) and (b), if less than $20,000,000 is appropriated for any fiscal year to carry out this subpart, the Corporation shall award grants to States and Indian tribes, from the amount so appropriated, on a competitive basis to pay for the Federal share of the activities described in section 111.

``SEC. 113. STATE OR TRIBAL APPLICATIONS.

``(a) SUBMISSION.— To be eligible to receive a grant under section 112(b)(1), an allotment under subsection (a) or (b)(2) of section 112, a reallotment under section 112(c), or a grant under section 112(d), a State, acting through the State educational agency, or an Indian tribe, shall prepare, submit to the Corporation, and obtain approval of, an application at such time and in such manner as the Chief Executive Officer may reasonably require.

``(b) CONTENTS.— An application that is submitted under subsection (a) with respect to service-learning programs described in section 111 shall include—

``(1) a 3-year strategic plan, or a revision of a previously approved 3-year strategic plan, for promoting service-learning through the programs, which plan shall contain such information as the Chief Executive Officer may reasonably require, including information demonstrating that the programs will be carried out in a manner consistent with the approved strategic plan;

``(2) assurances that—

``(A) the applicant will keep such records and provide such information to the Corporation with respect to the programs as may be required for fiscal audits and program evaluation; and

``(B) the applicant will comply with the nonduplication and nondisplacement requirements of section 177 and the grievance procedure requirements of section 176(f); and

``(3) such additional information as the Chief Executive Officer may reasonably require.

``SEC. 114. LOCAL APPLICATIONS.

``(a) APPLICATION TO CORPORATION TO MAKE GRANTS FOR SCHOOL-BASED SERVICE-LEARNING PROGRAMS.—

``(1) IN GENERAL.— To be eligible to receive a grant in accordance with section 111B(a) to make grants relating to school-based service-learning programs described in section 111(a), a grantmaking entity shall prepare, submit to the Corporation, and obtain approval of, an application.

``(2) SUBMISSION.— Such application shall be submitted at such time and in such manner, and shall contain such information, as the Chief Executive Officer may reasonably require. Such application shall include a proposal to assist such programs in more than 1 State.

``(b) DIRECT APPLICATION TO CORPORATION TO CARRY OUT SCHOOL-BASED SERVICE-LEARNING PROGRAMS IN NONPARTICIPATING STATES.— To be eligible to receive a grant from the Corporation in the circumstances described in section 111A to carry out an activity as described in such section, a partnership or agency described in such section shall prepare, submit to the Corporation, and obtain approval of, an application. Such application shall be submitted at such time and in such manner, and shall contain such information, as the Chief Executive Officer may reasonably require.

``(c) APPLICATION TO STATE OR INDIAN TRIBE TO RECEIVE ASSISTANCE TO CARRY OUT SCHOOL-BASED SERVICE-LEARNING PROGRAMS.—

``(1) IN GENERAL.— Any—

``(A) qualified organization that desires to receive financial assistance under this subpart from a State or Indian tribe for an activity described in section 111(a)(1);

``(B) partnership described in section 111(a)(2) that desires to receive such assistance from a State, Indian tribe, or grantmaking entity for an activity described in section 111(a)(2);

``(C) agency described in section 111(a)(3) that desires to receive such assistance from a State or Indian tribe for an activity described in such section; or

``(D) partnership described in section 111(a)(4) that desires to receive such assistance from a State or Indian tribe for an activity described in such section,

``to be carried out through a service-learning program described in section 111, shall prepare, submit to the State educational agency, Indian tribe, or grantmaking entity, and obtain approval of, an application for the program.

``(2) SUBMISSION.— Such application shall be submitted at such time and in such manner, and shall contain such information, as the agency, tribe, or entity may reasonably require.

``(d) REGULATIONS.— The Corporation shall by regulation establish standards for the information and assurances required to be contained in an application submitted under subsection (a) or (b) with respect to a service-learning program described in section 111, including, at a minimum, assurances that—

``(1) prior to the placement of a participant, the entity carrying out the program will consult with the appropriate local labor organization, if any, representing employees in the area who are engaged in the same or similar work as that proposed to be carried out by such program, to prevent the displacement and protect the rights of such employees;

``(2) the entity carrying out the program will develop an age-appropriate learning component for participants in the program that shall include a chance for participants to analyze and apply their service experiences; and

``(3) the entity carrying out the program will comply with the nonduplication and nondisplacement requirements of section 177 and the grievance procedure requirements of section 176(f).

``(e) LIMITATION ON SAME PROJECT IN MULTIPLE APPLICATIONS.— No applicant shall submit an application under section 113 or this section, and the Corporation shall reject an application that is submitted under section 113 or this section, if the application describes a project proposed to be conducted using assistance requested by the applicant and the project is already described in another application pending before the Corporation.

``SEC. 115. CONSIDERATION OF APPLICATIONS.

``(a) CRITERIA FOR APPLICATIONS.— In approving applications for financial assistance under subsection (a), (b), (c), or (d) of section 112, the Corporation shall consider such criteria with respect to sustainability, replicability, innovation, and quality of programs under this subpart as the Chief Executive Officer may by regulation specify. In providing assistance under this subpart, a State educational agency, Indian tribe, or grantmaking entity shall consider such criteria.

``(b) PRIORITY FOR LOCAL APPLICATIONS.— In providing assistance under this subpart, a State educational agency or Indian tribe, or the Corporation if section 111A or 111B applies, shall give priority to entities that submit applications under section 114 with respect to service-learning programs described in section 111 that—

``(1) involve participants in the design and operation of the program;

``(2) are in the greatest need of assistance, such as programs targeting low-income areas;

``(3) involve—

``(A) students from public elementary or secondary schools, and students from private elementary or secondary schools, serving together; or

``(B) students of different ages, races, sexes, ethnic groups, disabilities, or economic backgrounds, serving together; or

``(4) are integrated into the academic program of the participants.

``(c) REJECTION OF APPLICATIONS.— If the Corporation rejects an application submitted by a State under section 113 for an allotment under section 112(b)(2), the Corporation shall promptly notify the State of the reasons for the rejection of the application. The Corporation shall provide the State with a reasonable opportunity to revise and resubmit the application and shall provide technical assistance, if needed, to the State as part of the resubmission process. The Corporation shall promptly reconsider such resubmitted application.

``SEC. 115A. PARTICIPATION OF STUDENTS AND TEACHERS FROM PRIVATE SCHOOLS.

``(a) IN GENERAL.— To the extent consistent with the number of students in the State or Indian tribe or in the school district of the local educational agency involved who are enrolled in private nonprofit elementary and secondary schools, such State, Indian tribe, or agency shall (after consultation with appropriate private school representatives) make provision—

``(1) for the inclusion of services and arrangements for the benefit of such students so as to allow for the equitable participation of such students in the programs implemented to carry out the objectives and provide the benefits described in this subpart; and

``(2) for the training of the teachers of such students so as to allow for the equitable participation of such teachers in the programs implemented to carry out the objectives and provide the benefits described in this subpart.

``(b) WAIVER.— If a State, Indian tribe, or local educational agency is prohibited by law from providing for the participation of students or teachers from private nonprofit schools as required by subsection (a), or if the Corporation determines that a State, Indian tribe, or local educational agency substantially fails or is unwilling to provide for such participation on an equitable basis, the Chief Executive Officer shall waive such requirements and shall arrange for the provision of services to such students and teachers. Such waivers shall be subject to consultation, withholding, notice, and judicial review requirements in accordance with paragraphs (3) and (4) of section 1017(b) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 2727(b)).

``SEC. 116. FEDERAL, STATE, AND LOCAL CONTRIBUTIONS.

``(a) SHARE.—

``(1) IN GENERAL.— The Federal share attributable to this subpart of the cost of carrying out a program for which a grant or allotment is made under this subpart may not exceed—

``(A) 90 percent of the total cost of the program for the first year for which the program receives assistance under this subpart;

``(B) 80 percent of the total cost of the program for the second year for which the program receives assistance under this subpart;

``(C) 70 percent of the total cost of the program for the third year for which the program receives assistance under this subpart; and

``(D) 50 percent of the total cost of the program for the fourth year, and for any subsequent year, for which the program receives assistance under this subpart.

``(2) CALCULATION.— In providing for the remaining share of the cost of carrying out such a program, each recipient of assistance under this subpart—

``(A) shall provide for such share through a payment in cash or in kind, fairly evaluated, including facilities, equipment, or services; and

``(B) may provide for such share through State sources, local sources, or Federal sources (other than funds made available under the national service laws).

``(b) WAIVER.— The Chief Executive Officer may waive the requirements of subsection (a) in whole or in part with respect to any such program in any fiscal year if the Corporation determines that such a waiver would be equitable due to a lack of available financial resources at the local level.

``SEC. 116A. LIMITATIONS ON USES OF FUNDS.

``(a) ADMINISTRATIVE COSTS.—

``(1) LIMITATION.— Not more than 5 percent of the amount of assistance provided to a State educational agency, Indian tribe, or grantmaking entity that is the original recipient of a grant or allotment under subsection (a), (b), (c), or (d) of section 112 for a fiscal year may be used to pay for administrative costs incurred by—

``(A) the original recipient; or

``(B) the entity carrying out the service-learning programs supported with the assistance.

``(2) RULES ON USE.— The Chief Executive Officer may by rule prescribe the manner and extent to which—

``(A) such assistance may be used to cover administrative costs; and

``(B) that portion of the assistance available to cover administrative costs should be distributed between—

``(i) the original recipient; and

``(ii) the entity carrying out the service-learning programs supported with the assistance.

``(b) CAPACITY-BUILDING ACTIVITIES.—

``(1) IN GENERAL.— Except as provided in paragraph (2), not less than 10 percent and not more than 15 percent of the amount of assistance provided to a State educational agency or Indian tribe that is the original recipient of a grant or allotment under subsection (a), (b), (c), or (d) of section 112 for a fiscal year may be used to build capacity through training, technical assistance, curriculum development, and coordination activities, described in section 111(a)(1).

``(2) WAIVER.— The Chief Executive Officer may waive the requirements of paragraph (1) in order to permit an agency or a tribe to use not less than 10 percent and not more than 20 percent of such amount to build capacity as provided in paragraph (1). To be eligible to receive such a waiver such an agency or tribe shall submit an application to the Chief Executive Officer at such time, in such manner, and containing such information as the Chief Executive Officer may require.

``(c) LOCAL USES OF FUNDS.— Funds made available under this subpart may not be used to pay any stipend, allowance, or other financial support to any student who is a participant under this subtitle, except reimbursement for transportation, meals, and other reasonable out-of-pocket expenses directly related to participation in a program assisted under this subpart.

``SEC. 116B. DEFINITIONS.

``As used in this subpart:

``(1) GRANTMAKING ENTITY.— The term ``grantmaking entity´´ means an organization described in section 111B(a).

``(2) SCHOOL-BASED.— The term ``school-based´´ means based in an elementary school or a secondary school.

``(3) STUDENT.— Notwithstanding section 101(29), the term ``student´´ means an individual who is enrolled in an elementary or secondary school on a full- or part-time basis.

``Subpart B — Community-Based Service Programs for School-Age Youth

``SEC. 117. DEFINITIONS.

``As used in this subpart:

``(1) COMMUNITY-BASED SERVICE PROGRAM.— The term ``community-based service program´´ means a program described in section 117A(b)(1)(A).

``(2) GRANTMAKING ENTITY.— The term ``grantmaking entity´´ means a qualified organization that—

``(A) submits an application under section 117C(a) to make grants to qualified organizations;

``(B) was in existence at least 1 year before the date on which the organization submitted the application; and

``(C) meets such other criteria as the Chief Executive Officer shall establish.

``(3) QUALIFIED ORGANIZATION.— The term ``qualified organization´´ means a public or private nonprofit organization with experience working with school-age youth that meets such criteria as the Chief Executive Officer may establish.

``SEC. 117A. GENERAL AUTHORITY.

``(a) GRANTS.— From the funds appropriated to carry out this subpart for a fiscal year, the Corporation may make grants to State Commissions, grantmaking entities, and qualified organizations to pay for the Federal share of the implementation, operation, expansion, or replication of community-based service programs.

``(b) USE OF FUNDS.—

``(1) STATE COMMISSIONS AND GRANTMAKING ENTITIES.— A State Commission or grantmaking entity may use a grant made under subsection (a)—

``(A) to make a grant to a qualified organization to implement, operate, expand, or replicate a community-based service program that provides for meaningful human, educational, environmental, or public safety service by participants, who shall be school-age youth; or

``(B) to provide training and technical assistance to such an organization.

``(2) QUALIFIED ORGANIZATIONS.— A qualified organization, other than a grantmaking entity, may use a grant made under subsection (a) to implement, operate, expand, or replicate a program described in paragraph (1)(A).

``SEC. 117B. STATE APPLICATIONS.

``(a) IN GENERAL.— To be eligible to receive a grant under section 117A(a), a State Commission shall prepare, submit to the Corporation, and obtain approval of, an application.

``(b) SUBMISSION.— Such application shall be submitted to the Corporation at such time and in such manner, and shall contain such information, as the Chief Executive Officer may reasonably require.

``(c) CONTENTS.— Such an application shall include, at a minimum, a State plan that contains the information and assurances described in section 117C(d) with respect to each community-based service program proposed to be carried out through funding distributed by the State Commission under this subpart.

``SEC. 117C. LOCAL APPLICATIONS.

``(a) APPLICATION TO CORPORATION TO MAKE GRANTS FOR COMMUNITY-BASED SERVICE PROGRAMS.— To be eligible to receive a grant from the Corporation under section 117A(a) to make grants under section 117A(b)(1), a grantmaking entity shall prepare, submit to the Corporation, and obtain approval of, an application that proposes a community-based service program to be carried out through grants made to qualified organizations. Such application shall be submitted at such time and in such manner, and shall contain such information, as the Chief Executive Officer may reasonably require.

``(b) DIRECT APPLICATION TO CORPORATION TO CARRY OUT COMMUNITY-BASED SERVICE PROGRAMS.— To be eligible to receive a grant from the Corporation under section 117A(a) to implement, operate, expand, or replicate a community service program, a qualified organization shall prepare, submit to the Corporation, and obtain approval of, an application that proposes a community-based service program to be carried out at multiple sites, or that proposes an innovative community-based service program. Such application shall be submitted at such time and in such manner, and shall contain such information, as the Chief Executive Officer may reasonably require.

``(c) APPLICATION TO STATE COMMISSION OR GRANTMAKING ENTITY TO RECEIVE GRANTS TO CARRY OUT COMMUNITY-BASED SERVICE PROGRAMS.— To be eligible to receive a grant from a State Commission or grantmaking entity under section 117A(b)(1), a qualified organization shall prepare, submit to the Commission or entity, and obtain approval of, an application. Such application shall be submitted at such time and in such manner, and shall contain such information, as the Commission or entity may reasonably require.

``(d) REGULATIONS.— The Corporation shall by regulation establish standards for the information and assurances required to be contained in an application submitted under subsection (a) or (b) with respect to a community-based service program, including, at a minimum—

``(1) an assurance that the entity carrying out the program proposed by the applicant will comply with the nonduplication and nondisplacement provisions of section 177 and the grievance procedure requirements of section 176(f);

``(2) an assurance that the entity carrying out the program will, prior to placing a participant in the program, consult with the appropriate local labor organization, if any, representing employees in the area in which the program will be carried out that are engaged in the same or similar work as the work proposed to be carried out by the program, to prevent the displacement of such employees; and

``(3) in the case of an application submitted by a grantmaking entity, information demonstrating that the entity will make grants for a program to—

``(A) carry out activities described in section 117A(b)(1) in two or more States, under circumstances in which the activities carried out under such program can be carried out more efficiently through one program than through two or more programs; and

``(B) carry out the same activities, such as training activities or activities related to exchanging information on service experiences, through each of the projects assisted through the program.

``(e) LIMITATION ON SAME PROJECT IN MULTIPLE APPLICATIONS.— No applicant shall submit an application under section 117B or this section, and the Corporation shall reject an application that is submitted under section 117B or this section, if the application describes a project proposed to be conducted using assistance requested by the applicant and the project is already described in another application pending before the Corporation.

``SEC. 117D. CONSIDERATION OF APPLICATIONS.

``(a) APPLICATION OF CRITERIA.— The Corporation shall apply the criteria described in subsection (b) in determining whether to approve an application submitted under section 117B or under subsection (a) or (b) of section 117C and to provide assistance under section 117A to the applicant on the basis of the application.

``(b) ASSISTANCE CRITERIA.— In evaluating such an application with respect to a program under this subpart, the Corporation shall consider the criteria established for national service programs under section 133(c).

``(c) APPLICATION TO SUBGRANTS.— A State Commission or grantmaking entity shall apply the criteria described in subsection (b) in determining whether to approve an application under section 117C(c) and to make a grant under section 117A(b)(1) to the applicant on the basis of the application.

``SEC. 117E. FEDERAL, STATE, AND LOCAL CONTRIBUTIONS.

``(a) FEDERAL SHARE.—

``(1) IN GENERAL.— The Federal share attributable to this subpart of the cost of carrying out a program for which a grant is made under this subpart may not exceed the percentage specified in subparagraph (A), (B), (C), or (D) of section 116(a)(1), as appropriate.

``(2) CALCULATION.— Each recipient of assistance under this subpart shall comply with section 116(a)(2).

``(b) WAIVER.— The Chief Executive Officer may waive the requirements of subsection (a), in whole or in part, as provided in section 116(b).

``SEC. 117F. LIMITATIONS ON USES OF FUNDS.

``(a) ADMINISTRATIVE COSTS.— Not more than 5 percent of the amount of assistance provided to a State Commission, grantmaking entity, or qualified organization that is the original recipient of a grant under section 117A(a) for a fiscal year may be used to pay for administrative costs incurred by—

``(1) the original recipient; or

``(2) the entity carrying out the community-based service programs supported with the assistance.

``(b) RULES ON USE.— The Chief Executive Officer may by rule prescribe the manner and extent to which—

``(1) such assistance may be used to cover administrative costs; and

``(2) that portion of the assistance available to cover administrative costs should be distributed between—

``(A) the original recipient; and

``(B) the entity carrying out the community-based service programs supported with the assistance.

``Subpart C — Clearinghouse

``SEC. 118. SERVICE-LEARNING CLEARINGHOUSE.

``(a) IN GENERAL.— The Corporation shall provide financial assistance, from funds appropriated to carry out subtitle H, to organizations described in subsection (b) to establish a clearinghouse, which shall carry out activities, either directly or by arrangement with another such organization, with respect to information about service-learning.

``(b) PUBLIC OR PRIVATE NONPROFIT ORGANIZATIONS.— Public or private nonprofit organizations that have extensive experience with service-learning, including use of adult volunteers to foster service-learning, shall be eligible to receive assistance under subsection (a).

``(c) FUNCTION OF CLEARINGHOUSE.— An organization that receives assistance under subsection (a) may—

``(1) assist entities carrying out State or local service-learning programs with needs assessments and planning;

``(2) conduct research and evaluations concerning service-learning;

``(3)(A) provide leadership development and training to State and local service-learning program administrators, supervisors, service sponsors, and participants; and

``(B) provide training to persons who can provide the leadership development and training described in subparagraph (A);

``(4) facilitate communication among entities carrying out service-learning programs and participants in such programs;

``(5) provide information, curriculum materials, and technical assistance relating to planning and operation of service-learning programs, to States and local entities eligible to receive financial assistance under this title;

``(6) provide information regarding methods to make service-learning programs accessible to individuals with disabilities;

``(7)(A) gather and disseminate information on successful service-learning programs, components of such successful programs, innovative youth skills curricula related to service-learning, and service-learning projects; and

``(B) coordinate the activities of the Clearinghouse with appropriate entities to avoid duplication of effort;

``(8) make recommendations to State and local entities on quality controls to improve the quality of service-learning programs;

``(9) assist organizations in recruiting, screening, and placing service-learning coordinators; and

``(10) carry out such other activities as the Chief Executive Officer determines to be appropriate.´´.

(b) HIGHER EDUCATION INNOVATIVE PROJECTS.—

Subtitle B of title I of the National and Community Service Act of 1990 (42 U.S.C. 12531 et seq.) is amended by striking part II and inserting the following:

``Part II — Higher Education Innovatice Programs for Community Service

``SEC. 119. HIGHER EDUCATION INNOVATIVE PROGRAMS FOR COMMUNITY SERVICE.

``(a) PURPOSE.— It is the purpose of this part to expand participation in community service by supporting innovative community service programs carried out through institutions of higher education, acting as civic institutions to meet the human, educational, environmental, or public safety needs of neighboring communities.

``(b) GENERAL AUTHORITY.— The Corporation, in consultation with the Secretary of Education, is authorized to make grants to, and enter into contracts with, institutions of higher education (including a combination of such institutions), and partnerships comprised of such institutions and of other public or private nonprofit organizations, to pay for the Federal share of the cost of—

``(1) enabling such an institution or partnership to create or expand an organized community service program that—

``(A) engenders a sense of social responsibility and commitment to the community in which the institution is located; and

``(B) provides projects for participants, who shall be students, faculty, administration, or staff of the institution, or residents of the community;

``(2) supporting student-initiated and student-designed community service projects through the program;

``(3) strengthening the leadership and instructional capacity of teachers at the elementary, secondary, and postsecondary levels, with respect to service-learning, by—

``(A) including service-learning as a key component of the preservice teacher education of the institution; and

``(B) encouraging the faculty of the institution to use service-learning methods throughout their curriculum;

``(4) facilitating the integration of community service carried out under the program into academic curricula, including integration of clinical programs into the curriculum for students in professional schools, so that students can obtain credit for their community service projects;

``(5) supplementing the funds available to carry out work-study programs under part C of title IV of the Higher Education Act of 1965 (42 U.S.C. 2751 et seq.) to support service-learning and community service through the community service program;

``(6) strengthening the service infrastructure within institutions of higher education in the United States through the program; and

``(7) providing for the training of teachers, prospective teachers, related education personnel, and community leaders in the skills necessary to develop, supervise, and organize service-learning.

``(c) FEDERAL SHARE.—

``(1) SHARE.—

``(A) IN GENERAL.— The Federal share of the cost of carrying out a community service project for which a grant or contract is awarded under this part may not exceed 50 percent.

``(B) CALCULATION.— Each recipient of assistance under this part shall comply with section 116(a)(2).

``(2) WAIVER.— The Chief Executive Officer may waive the requirements of paragraph (1), in whole or in part, as provided in section 116(b).

``(d) APPLICATION FOR GRANT.—

``(1) SUBMISSION.— To receive a grant or enter into a contract under this part, an institution or partnership described in subsection (b) shall prepare, submit to the Corporation, and obtain approval of, an application at such time, in such manner, and containing such information and assurances as the Corporation may reasonably require. In requesting applications for assistance under this part, the Corporation shall specify such required information and assurances.

``(2) CONTENTS.— An application submitted under paragraph (1) shall contain, at a minimum—

``(A) assurances that—

``(i) prior to the placement of a participant, the applicant will consult with the appropriate local labor organization, if any, representing employees in the area who are engaged in the same or similar work as that proposed to be carried out by such program, to prevent the displacement and protect the rights of such employees; and

``(ii) the applicant will comply with the nonduplication and nondisplacement provisions of section 177 and grievance procedure requirements of section 176(f); and

``(B) such other assurances as the Chief Executive Officer may reasonably require.

``(e) PRIORITY.—

``(1) IN GENERAL.— In making grants and entering into contracts under subsection (b), the Corporation shall give priority to applicants that submit applications containing proposals that—

``(A) demonstrate the commitment of the institution of higher education, other than by demonstrating the commitment of the students, to supporting the community service projects carried out under the program;

``(B) specify the manner in which the institution will promote faculty, administration, and staff participation in the community service projects;

``(C) specify the manner in which the institution will provide service to the community through organized programs, including, where appropriate, clinical programs for students in professional schools;

``(D) describe any partnership that will participate in the community service projects, such as a partnership comprised of—

``(i) the institution;

``(ii)(I) a community-based agency;

``(II) a local government agency; or

``(III) a nonprofit entity that serves or involves school-age youth or older adults; and

``(iii) a student organization;

``(E) demonstrate community involvement in the development of the proposal;

``(F) specify that the institution will use such assistance to strengthen the service infrastructure in institutions of higher education; or

``(G) with respect to projects involving delivery of service, specify projects that involve leadership development of school-age youth.

``(2) DETERMINATION.— In giving priority to applicants under paragraph (1), the Corporation shall give increased priority to such an applicant for each characteristic described in subparagraphs (A) through (G) of paragraph (1) that is reflected in the application submitted by the applicant.

``(f) NATIONAL SERVICE EDUCATIONAL AWARD.— A participant in a program funded under this part shall be eligible for the national service educational award described in subtitle D, if the participant served in an approved national service position.

``(g) DEFINITION.— Notwithstanding section 101(29), as used in this part, the term ``student´´ means an individual who is enrolled in an institution of higher education on a full- or part-time basis.´´.

(c) TABLE OF CONTENTS.—

Section 1(b) of the National and Community Service Act of 1990 (Public Law 101-610; 104 Stat. 3127) is amended by striking the items relating to subtitle B of title I of such Act and inserting the following:

``Subtitle B — School-Based and Community-Based Service-Learning Programs

``Part I — Serve-America Programs

``SUBPART A — SCHOOL-BASED PROGRAMS FOR STUDENTS

``Sec. 111. Authority to assist States and Indian tribes.

``Sec. 111A. Authority to assist local applicants in nonparticipating States.

``Sec. 111B. Authority to assist public or private nonprofit organizations.

``Sec. 112. Grants and allotments.

``Sec. 113. State or tribal applications.

``Sec. 114. Local applications.

``Sec. 115. Consideration of applications.

``Sec. 115A. Participation of students and teachers from private schools.

``Sec. 116. Federal, State, and local contributions.

``Sec. 116A. Limitations on uses of funds.

``Sec. 116B. Definitions.

``SUBPART B — COMMUNITY-BASED SERVICE PROGRAMS FOR SCHOOL-AGE YOUTH

``Sec. 117. Definitions.

``Sec. 117A. General authority.

``Sec. 117B. State applications.

``Sec. 117C. Local applications.

``Sec. 117D. Consideration of applications.

``Sec. 117E. Federal, State, and local contributions.

``Sec. 117F. Limitations on uses of funds.

``SUBPART C — CLEARINGHOUSE

``Sec. 118. Service-learning clearinghouse.

``Part II — Higher Education Innovative Programs for Community Service

``Sec. 119. Higher education innovative programs for community service.´´.

Sec. 104. Quality and Innovation Activities.

(a) REPEAL.—

Subtitle E of title I of the National and Community Service Act of 1990 (42 U.S.C. 12591 et seq.) is repealed.

(b) TRANSFER.—

Title I of the National and Community Service Act of 1990 is amended—

(1) by redesignating subtitle H (42 U.S.C. 12653 et seq.) as subtitle E;

(2) by inserting subtitle E (as redesignated by paragraph (1) of this subsection) after subtitle D; and

(3) by redesignating sections 195 through 195O as sections 151 through 166, respectively.

(c) INVESTMENT FOR QUALITY AND INNOVATION.—

Title I of the National and Community Service Act of 1990 (as amended by subsection (b) of this section) is amended by inserting after subtitle G the following new subtitle:

``Subtitle H — Investment for Quality and Innovation

``SEC. 198. ADDITIONAL CORPORATION ACTIVITIES TO SUPPORT NATIONAL SERVICE.

``(a) METHODS OF CONDUCTING ACTIVITIES.— The Corporation may carry out this section directly (except as provided in subsection (r)) or through grants, contracts, and cooperative agreements with other entities.

``(b) INNOVATION AND QUALITY IMPROVEMENT.— The Corporation may undertake activities to improve the quality of national service programs, including service-learning programs, and to support innovative and model programs, including—

``(1) programs, including programs for rural youth, under subtitle B or C;

``(2) employer-based retiree programs;

``(3) intergenerational programs;

``(4) programs involving individuals with disabilities as participants providing service; and

``(5) programs sponsored by Governors.

``(c) SUMMER PROGRAMS.— The Corporation may support service programs intended to be carried out between May 1 and October 1, except that such a program may also include a year-round component.

``(d) COMMUNITY-BASED AGENCIES.— The Corporation may provide training and technical assistance and other assistance to service sponsors and other community-based agencies that provide volunteer placements in order to improve the ability of such agencies to use participants and other volunteers in a manner that results in high-quality service and a positive service experience for the participants and volunteers.

``(e) IMPROVE ABILITY TO APPLY FOR ASSISTANCE.— The Corporation shall provide training and technical assistance, where necessary, to individuals, programs, local labor organizations, State educational agencies, State Commissions, local educational agencies, local governments, community-based agencies, and other entities to enable them to apply for funding under one of the national service laws, to conduct high-quality programs, to evaluate such programs, and for other purposes.

``(f) NATIONAL SERVICE FELLOWSHIPS.— The Corporation may award national service fellowships.

``(g) CONFERENCES AND MATERIALS.— The Corporation may organize and hold conferences, and prepare and publish materials, to disseminate information and promote the sharing of information among programs for the purpose of improving the quality of programs and projects.

``(h) PEACE CORPS AND VISTA TRAINING.— The Corporation may provide training assistance to selected individuals who volunteer to serve in the Peace Corps or a program authorized under title I of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4951 et seq.). The training shall be provided as part of the course of study of the individual at an institution of higher education, shall involve service-learning, and shall cover appropriate skills that the individual will use in the Peace Corps or VISTA.

``(i) PROMOTION AND RECRUITMENT.— The Corporation may conduct a campaign to solicit funds for the National Service Trust and other programs and activities authorized under the national service laws and to promote and recruit participants for programs that receive assistance under the national service laws.

``(j) TRAINING.— The Corporation may support national and regional participant and supervisor training, including leadership training and training in specific types of service and in building the ethic of civic responsibility.

``(k) RESEARCH.— The Corporation may support research on national service, including service-learning.

``(l) INTERGENERATIONAL SUPPORT.— The Corporation may assist programs in developing a service component that combines students, out-of-school youths, and older adults as participants to provide needed community services.

``(m) PLANNING COORDINATION.— The Corporation may coordinate community-wide planning among programs and projects.

``(n) YOUTH LEADERSHIP.— The Corporation may support activities to enhance the ability of youth and young adults to play leadership roles in national service.

``(o) NATIONAL PROGRAM IDENTITY.— The Corporation may support the development and dissemination of materials, including training materials, and arrange for uniforms and insignia, designed to promote unity and shared features among programs that receive assistance under the national service laws.

``(p) SERVICE-LEARNING.— The Corporation shall support innovative programs and activities that promote service-learning.

``(q) NATIONAL YOUTH SERVICE DAY.—

``(1) DESIGNATION.— April 19, 1994, and April 18, 1995 are each designated as ``National Youth Service Day´´. The President is authorized and directed to issue a proclamation calling on the people of the United States to observe the day with appropriate ceremonies and activities.

``(2) FEDERAL ACTIVITIES.— In order to observe National Youth Service Day at the Federal level, the Corporation may organize and carry out appropriate ceremonies and activities.

``(3) ACTIVITIES.— The Corporation may make grants to public or private nonprofit organizations with demonstrated ability to carry out appropriate activities, in order to support such activities on National Youth Service Day.

``(r) ASSISTANCE FOR HEAD START.— The Corporation may make grants to, and enter into contracts and cooperative agreements with, public or nonprofit private agencies and organizations that receive grants or contracts under the Foster Grandparent Program (part B of title II of the Domestic Volunteer Service Act of 1973 (29 U.S.C. 5011 et seq.)), for projects of the type described in section 211(a) of such Act (29 U.S.C. 5011) operating under memoranda of agreement with the ACTION Agency, for the purpose of increasing the number of low-income individuals who provide services under such program to children who participate in Head Start programs under the Head Start Act (42 U.S.C 9831 et seq).

``SEC. 198A. CLEARINGHOUSES.

``(a) ASSISTANCE.— The Corporation shall provide assistance to appropriate entities to establish one or more clearinghouses, including the clearinghouse described in section 118.

``(b) APPLICATION.— To be eligible to receive assistance under subsection (a), an entity shall submit an application to the Corporation at such time, in such manner, and containing such information as the Corporation may require.

``(c) FUNCTION OF CLEARINGHOUSES.— An entity that receives assistance under subsection (a) may—

``(1) assist entities carrying out State or local community service programs with needs assessments and planning;

``(2) conduct research and evaluations concerning community service;

``(3)(A) provide leadership development and training to State and local community service program administrators, supervisors, and participants; and

``(B) provide training to persons who can provide the leadership development and training described in subparagraph (A);

``(4) facilitate communication among entities carrying out community service programs and participants;

``(5) provide information, curriculum materials, and technical assistance relating to planning and operation of community service programs, to States and local entities eligible to receive funds under this title;

``(6)(A) gather and disseminate information on successful community service programs, components of such successful programs, innovative youth skills curriculum, and community service projects; and

``(B) coordinate the activities of the clearinghouse with appropriate entities to avoid duplication of effort;

``(7) make recommendations to State and local entities on quality controls to improve the delivery of community service programs and on changes in the programs under this title; and

``(8) carry out such other activities as the Chief Executive Officer determines to be appropriate.

``SEC. 198B. PRESIDENTIAL AWARDS FOR SERVICE.

``(a) PRESIDENTIAL AWARDS.—

``(1) IN GENERAL.— The President, acting through the Corporation, may make Presidential awards for service to individuals providing significant service, and to outstanding service programs.

``(2) INDIVIDUALS AND PROGRAMS.— Notwithstanding section 101(19)—

``(A) an individual receiving an award under this subsection need not be a participant in a program authorized under this Act; and

``(B) a program receiving an award under this subsection need not be a program authorized under this Act.

``(3) NATURE OF AWARD.— In making an award under this section to an individual or program, the President, acting through the Corporation—

``(A) is authorized to incur necessary expenses for the honorary recognition of the individual or program; and

``(B) is not authorized to make a cash award to such individual or program.

``(b) INFORMATION.— The President, acting through the Corporation, shall ensure that information concerning individuals and programs receiving awards under this section is widely disseminated.

``SEC. 198C. MILITARY INSTALLATION CONVERSION DEMONSTRATION PROGRAMS.

``(a) PURPOSES.— The purposes of this section are to—

``(1) provide meaningful service opportunities for economically disadvantaged youth;

``(2) fully utilize military installations affected by closures or realignments;

``(3) encourage communities affected by such closures or realignments to convert the installations to community use; and

``(4) foster a sense of community pride in the youth in the community.

``(b) DEFINITIONS.— As used in this section:

``(1) AFFECTED MILITARY INSTALLATION.— The term ``affected military installation´´ means a military installation described in section 325(e)(1) of the Job Training Partnership Act (29 U.S.C. 1662d(e)(1)).

``(2) COMMUNITY.— The term ``community´´ includes a county.

``(3) CONVERT TO COMMUNITY USE.— The term ``convert to community use´´, used with respect to an affected military installation, includes—

``(A) conversion of the installation or a part of the installation to—

``(i) a park;

``(ii) a community center;

``(iii) a recreational facility; or

``(iv) a facility for a Head Start program under the Head Start Act (42 U.S.C. 9831 et seq.); and

``(B) carrying out, at the installation, a construction or economic development project that is of substantial benefit, as determined by the Chief Executive Officer, to—

``(i) the community in which the installation is located; or

``(ii) a community located within such distance of the installation as the Chief Executive Officer may determine by regulation to be appropriate.

``(4) DEMONSTRATION PROGRAM.— The term ``demonstration program´´ means a program described in subsection (c).

``(c) DEMONSTRATION PROGRAMS.—

``(1) GRANTS.— The Corporation may make grants to communities and community-based agencies to pay for the Federal share of establishing and carrying out military installation conversion demonstration programs, to assist in converting to community use affected military installations located—

``(A) within the community; or

``(B) within such distance from the community as the Chief Executive Officer may by regulation determine to be appropriate.

``(2) DURATION.— In carrying out such a demonstration program, the community or community-based agency may carry out—

``(A) a program of not less than 6 months in duration; or

``(B) a full-time summer program.

``(d) USE OF FUNDS.—

``(1) STIPEND.— A community or community-based agency that receives a grant under subsection (c) to establish and carry out a project through a demonstration program may use the funds made available through such grant to pay for a portion of a stipend for the participants in the project.

``(2) LIMITATION ON AMOUNT OF STIPEND.— The amount of the stipend provided to a participant under paragraph (1) that may be paid using assistance provided under this section and using any other Federal funds shall not exceed the lesser of—

``(A) 85 percent of the total average annual subsistence allowance provided to VISTA volunteers under section 105 of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4955); and

``(B) 85 percent of the stipend established by the demonstration program involved.

``(e) PARTICIPANTS.—

``(1) ELIGIBILITY.— A person shall be eligible to be selected as a participant in a project carried out through a demonstration program if the person is—

``(A) an economically disadvantaged individual; and

``(B)(i) a person described in section 153(b);

``(ii) a youth described in section 154(a); or

``(iii) an eligible youth described in section 423 of the Job Training Partnership Act (29 U.S.C. 1693).

``(2) PARTICIPATION.— Persons desiring to participate in such a project shall enter into an agreement with the service sponsor of the project to participate—

``(A) on a full-time or a part-time basis; and

``(B) for the duration referred to in subsection (f)(2)(C).

``(f) APPLICATION.—

``(1) IN GENERAL.— To be eligible to receive a grant under subsection (c), a community or community-based agency shall submit an application to the Chief Executive Officer at such time, in such manner, and containing such information as the Chief Executive Officer may require.

``(2) CONTENTS.— At a minimum, such application shall contain—

``(A) a description of the demonstration program proposed to be conducted by the applicant;

``(B) a proposal for carrying out the program that describes the manner in which the applicant will—

``(i) provide preservice and inservice training, for supervisors and participants, that will be conducted by qualified individuals or qualified organizations;

``(ii) conduct an appropriate evaluation of the program; and

``(iii) provide for appropriate community involvement in the program;

``(C) information indicating the duration of the program; and

``(D) an assurance that the applicant will comply with the nonduplication and nondisplacement provisions of section 177 and the grievance procedure requirements of section 176(f).

``(g) LIMITATION ON GRANT.— In making a grant under subsection (c) with respect to a demonstration program to assist in converting an affected military installation, the Corporation shall not make a grant for more than 25 percent of the total cost of the conversion.

``SEC. 198D. SPECIAL DEMONSTRATION PROJECT.

``(a) SPECIAL DEMONSTRATION PROJECT FOR THE YUKON-KUSKOKWIM DELTA OF ALASKA.— The President may award grants to, and enter into contracts with, organizations to carry out programs that address significant human needs in the Yukon-Kuskokwim delta region of Alaska.

``(b) APPLICATION.—

``(1) GENERAL REQUIREMENTS.— To be eligible to receive a grant or enter into a contract under subsection (a) with respect to a program, an organization shall submit an application to the President at such time, in such manner, and containing such information as the President may require.

``(2) CONTENTS.— The application submitted by the organization shall, at a minimum—

``(A) include information describing the manner in which the program will utilize VISTA volunteers, individuals who have served in the Peace Corps, and other qualified persons, in partnership with the local nonprofit organizations known as the Yukon-Kuskokwim Health Corporation and the Alaska Village Council Presidents;

``(B) take into consideration—

``(i) the primarily noncash economy of the region; and

``(ii) the needs and desires of residents of the local communities in the region; and

``(C) include specific strategies, developed in cooperation with the Yupi'k speaking population that resides in such communities, for comprehensive and intensive community development for communities in the Yukon-Kuskokwim delta region.´´.

(d) TABLE OF CONTENTS.—

(1) CIVILIAN COMMUNITY CORPS.—

Section 1(b) of the National and Community Service Act of 1990 (Public Law 101-610; 104 Stat. 3127) is amended by striking the items relating to subtitle E of title I of such Act and inserting the following:

``Subtitle E — Civilian Community Corps

``Sec. 151. Purpose.

``Sec. 152. Establishment of Civilian Community Corps Demonstration Program.

``Sec. 153. National service program.

``Sec. 154. Summer national service program.

``Sec. 155. Civilian Community Corps.

``Sec. 156. Training.

``Sec. 157. Service projects.

``Sec. 158. Authorized benefits for Corps members.

``Sec. 159. Administrative provisions.

``Sec. 160. Status of Corps members and Corps personnel under Federal law.

``Sec. 161. Contract and grant authority.

``Sec. 162. Responsibilities of other departments.

``Sec. 163. Advisory board.

``Sec. 164. Annual evaluation.

``Sec. 165. Funding limitation.

``Sec. 166. Definitions.´´.

(2) QUALITY AND INNOVATION.—

Section 1(b) of the National and Community Service Act of 1990 (Public Law 101-610; 104 Stat. 3127) is amended by striking the items relating to subtitle H of title I of such Act and inserting the following:

``Subtitle H — Investment for Quality and Innovation

``Sec. 198. Additional corporation activities to support national service.

``Sec. 198A. Clearinghouses.

``Sec. 198B. Presidential awards for service.

``Sec. 198C. Military installation conversion demonstration programs.

``Sec. 198D. Special demonstration project.´´.

(e) TECHNICAL AND CONFORMING AMENDMENTS.—

(1) NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1993.—

(A) Section 1091(f)(2) of the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102-484) is amended by striking ``195G´´ and inserting ``158´´.

(B) Paragraphs (1) and (2) of section 1092(b), and sections 1092(c), 1093(a), and 1094(a) of such Act are amended by striking ``195A´´ and inserting ``152´´.

(C) Sections 1091(f)(2), 1092(b)(1), and 1094(a), and subsections (a) and (c) of section 1095 of such Act are amended by striking ``subtitle H´´ and inserting ``subtitle E´´.

(D) Section 1094(b)(1) and subsections (b) and (c)(1) of section 1095 of such Act are amended by striking ``subtitles B, C, D, E, F, and G´´ and inserting ``subtitles B, C, D, F, G, and H´´.

(2) NATIONAL AND COMMUNITY SERVICE ACT OF 1990.—

(A) Section 153(a) of the National and Community Service Act of 1990 (as redesignated in subsection (b)(3) of this section) (42 U.S.C. 12653b(a)) is amended by striking ``195A(a)´´ and inserting ``152(a)´´.

(B) Section 154(a) of such Act (as redesignated in subsection (b)(3) of this section) (42 U.S.C. 12653c(a)) is amended by striking ``195A(a)´´ and inserting ``152(a)´´.

(C) Section 155 of such Act (as redesignated in subsection (b)(3) of this section) (42 U.S.C. 12653d) is amended—

(i) in subsection (a), by striking ``195H(c)(1)´´ and inserting ``159(c)(1)´´;

(ii) in subsection (c)(2), by striking ``195H(c)(2)´´ and inserting ``159(c)(2)´´; and

(iii) in subsection (d)(3), by striking ``195K(a)(3)´´ and inserting ``162(a)(3)´´.

(D) Section 156 of such Act (as redesignated in subsection (b)(3) of this section) (42 U.S.C. 12653e) is amended—

(i) in subsection (c)(1), by striking ``195H(c)(2)´´ and inserting ``159(c)(2)´´; and

(ii) in subsection (d), by striking ``195K(a)(3)´´ and inserting ``162(a)(3)´´.

(E) Section 159 of such Act (as redesignated in subsection (b)(3) of this section) (42 U.S.C. 12653h) is amended—

(i) in subsection (a)—

(I) by striking ``195A´´ and inserting ``152´´; and

(II) in paragraph (2), by striking ``195´´ and inserting ``151´´; and

(ii) in subsection (c)(2)(C)(i), by striking ``195K(a)(2)´´ and inserting ``section 162(a)(2)´´.

(F) Section 161(b)(1)(B) of such Act (as redesignated in subsection (b)(3) of this section) (42 U.S.C. 12653j(b)(1)(B)) is amended by striking ``195K(a)(3)´´ and inserting ``162(a)(3)´´.

(G) Section 162(a)(2)(A) of such Act (as redesignated in subsection (b)(3) of this section) (42 U.S.C. 12653k(a)(2)(A)) is amended by striking ``195(3)´´ and inserting ``151(3)´´.

(H) Section 166 of such Act (as redesignated in subsection (b)(3) of this section) (42 U.S.C. 12653o) is amended—

(i) in paragraph (2), by striking ``195D´´ and inserting ``155´´;

(ii) in paragraph (8), by striking ``195A´´ and inserting ``152´´;

(iii) in paragraph (10), by striking ``195D(d)´´ and inserting ``155(d)´´; and

(iv) in paragraph (11), by striking ``195D(c)´´ and inserting ``155(c)´´.

(f) EXTENSION OF AUTHORITY TO CONDUCT CIVILIAN COMMUNITY CORPS.—

Section 1092(c) of the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102-484; 106 Stat. 2534), as amended by subsection (e)(1) of this section, is further amended by adding at the end the following new sentence: ``The amount made available for the Civilian Community Corps Demonstration Program pursuant to this subsection shall remain available for expenditure during fiscal years 1993 and 1994.´´.

(g) ADDITIONAL AMENDMENT REGARDING CIVILIAN COMMUNITY CORPS.—

Section 158 of the National and Community Service Act of 1990 (as redesignated in subsection (b)(3) of this section) (42 U.S.C. 12653g) is amended by striking subsections (f), (g), and (h) and inserting the following new subsections:

``(f) NATIONAL SERVICE EDUCATIONAL AWARDS.— A Corps member who successfully completes a period of agreed service in the Corps may receive the national service educational award described in subtitle D if the Corps member—

``(1) serves in an approved national service position; and

``(2) satisfies the eligibility requirements specified in section 146 with respect to service in that approved national service position.

``(g) ALTERNATIVE BENEFIT.— If a Corps member who successfully completes a period of agreed service in the Corps is ineligible for the national service educational award described in subtitle D, the Director may provide for the provision of a suitable alternative benefit for the Corps member.´´.

Sec. 105. Public Land Corps.

Public Law 91-378 (16 U.S.C. 1701-1706; commonly known as the Youth Conservation Corps Act of 1970) is amended—

(1) by inserting before section 1 the following:

``TITLE I—YOUTH CONSERVATION CORPS´´;

(2) by striking ``Act´´ each place it appears and inserting ``title´´;

(3) by redesignating sections 1 through 6 as sections 101 through 106, respectively;

(4) in section 102 (as so redesignated), by inserting ``in this title´´ after ``hereinafter´´ in subsection (a);

(5) in section 104 (as so redesignated), by striking ``section 6´´ in subsection (d) and inserting ``section 106´´; and

(6) by adding at the end the following new title:

``TITLE II — PUBLIC LANDS CORPS

``SEC. 201. SHORT TITLE.

``This title may be cited as the ``Public Lands Corps Act of 1993´´.

``SEC. 202. CONGRESSIONAL FINDINGS AND PURPOSE.

``(a) FINDINGS.— The Congress finds the following:

``(1) Conserving or developing natural and cultural resources and enhancing and maintaining environmentally important lands and waters through the use of the Nation's young men and women in a Public Lands Corps can benefit those men and women by providing them with education and work opportunities, furthering their understanding and appreciation of the natural and cultural resources, and providing a means to pay for higher education or to repay indebtedness they have incurred to obtain higher education while at the same time benefiting the Nation's economy and its environment.

``(2) Many facilities and natural resources located on eligible service lands are in disrepair or degraded and in need of labor intensive rehabilitation, restoration, and enhancement work which cannot be carried out by Federal agencies at existing personnel levels.

``(3) Youth conservation corps have established a good record of restoring and maintaining these kinds of facilities and resources in a cost effective and efficient manner, especially when they have worked in partnership arrangements with government land management agencies.

``(b) PURPOSE.— It is the purpose of this title to—

``(1) perform, in a cost-effective manner, appropriate conservation projects on eligible service lands where such projects will not be performed by existing employees;

``(2) assist governments and Indian tribes in performing research and public education tasks associated with natural and cultural resources on eligible service lands;

``(3) expose young men and women to public service while furthering their understanding and appreciation of the Nation's natural and cultural resources;

``(4) expand educational opportunities by rewarding individuals who participate in national service with an increased ability to pursue higher education or job training; and

``(5) stimulate interest among the Nation's young men and women in conservation careers by exposing them to conservation professionals in land managing agencies.

``SEC. 203. DEFINITIONS.

``For purposes of this title:

``(1) APPROPRIATE CONSERVATION PROJECT.— The term ``appropriate conservation project´´ means any project for the conservation, restoration, construction or rehabilitation of natural, cultural, historic, archaeological, recreational, or scenic resources.

``(2) CORPS AND PUBLIC LANDS CORPS.— The terms ``Corps´´ and ``Public Lands Corps´´ mean the Public Lands Corps established under section 204.

``(3) ELIGIBLE SERVICE LANDS.— The term ``eligible service lands´´ means public lands, Indian lands, and Hawaiian home lands.

``(4) HAWAIIAN HOME LANDS.— The term ``Hawaiian home lands´´ means all lands given the status of Hawaiian home lands under section 204 of the Hawaiian Homes Commission Act, 1920 (42 Stat. 110), or under the corresponding provision of the Constitution of the State of Hawaii adopted under section 4 of the Act entitled ``An Act to provide for the admission of the State of Hawaii into the Union´´, approved March 18, 1959 (Public Law 86-3; 73 Stat. 5).

``(5) INDIAN.— The term ``Indian´´ means a person who—

``(A) is a member of an Indian tribe; or

``(B) is a ``Native´´, as defined in section 3(b) of the Alaska Native Claims Settlement Act (43 U.S.C. 1602(b)).

``(6) INDIAN LANDS.— The term ``Indian lands´´ means—

``(A) any Indian reservation;

``(B) any public domain Indian allotments;

``(C) any former Indian reservation in the State of Oklahoma;

``(D) any land held by incorporated Native groups, regional corporations, and village corporations under the Alaska Native Claims Settlement Act (43 U.S.C. 1701 et seq.); and

``(E) any land held by dependent Indian communities within the borders of the United States whether within the original or subsequently acquired territory thereof, and whether within or without the limits of a State.

``(7) INDIAN TRIBE.— The term ``Indian tribe´´ means an Indian tribe, band, nation, or other organized group or community, including any Native village, Regional Corporation, or Village Corporation, as defined in subsection (c), (g), or (j), respectively, of section 3 of the Alaska Native Claims Settlement Act (43 U.S.C. 1602 (c), (g), or (j)), that is recognized as eligible for the special programs and services provided by the United States under Federal law to Indians because of their status as Indians.

``(8) PUBLIC LANDS.— The term ``public lands´´ means any lands or waters (or interest therein) owned or administered by the United States, except that such term does not include any Indian lands.

``(9) QUALIFIED YOUTH OR CONSERVATION CORPS.— The term ``qualified youth or conservation corps´´ means any program established by a State or local government, by the governing body of any Indian tribe, or by a nonprofit organization that—

``(A) is capable of offering meaningful, full-time, productive work for individuals between the ages of 16 and 25, inclusive, in a natural or cultural resource setting;

``(B) gives participants a mix of work experience, basic and life skills, education, training, and support services; and

``(C) provides participants with the opportunity to develop citizenship values and skills through service to their community and the United States.

``(10) RESOURCE ASSISTANT.— The term ``resource assistant´´ means a resource assistant selected under section 206.

``(11) STATE.— The term ``State´´ means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin Islands of the United States, American Samoa, and the Commonwealth of the Northern Mariana Islands.

``SEC. 204. PUBLIC LANDS CORPS PROGRAM.

``(a) ESTABLISHMENT OF PUBLIC LANDS CORPS.— There is hereby established in the Department of the Interior and the Department of Agriculture a Public Lands Corps.

``(b) PARTICIPANTS.— The Corps shall consist of individuals between the ages of 16 and 25, inclusive, who are enrolled as participants in the Corps by the Secretary of the Interior or the Secretary of Agriculture. To be eligible for enrollment in the Corps, an individual shall satisfy the criteria specified in section 137(b) of the National and Community Service Act of 1990. The Secretaries may enroll such individuals in the Corps without regard to the civil service and classification laws, rules, or regulations of the United States. The Secretaries may establish a preference for the enrollment in the Corps of individuals who are economically, physically, or educationally disadvantaged.

``(c) QUALIFIED YOUTH OR CONSERVATION CORPS.— The Secretary of the Interior and the Secretary of Agriculture are authorized to enter into contracts and cooperative agreements with any qualified youth or conservation corps to perform appropriate conservation projects referred to in subsection (d).

``(d) PROJECTS TO BE CARRIED OUT.— The Secretary of the Interior and the Secretary of Agriculture may each utilize the Corps or any qualified youth or conservation corps to carry out appropriate conservation projects which such Secretary is authorized to carry out under other authority of law on public lands. Appropriate conservation projects may also be carried out under this title on Indian lands with the approval of the Indian tribe involved and on Hawaiian home lands with the approval of the Department of Hawaiian Home Lands of the State of Hawaii. The Secretaries may also authorize appropriate conservation projects and other appropriate projects to be carried out on Federal, State, local, or private lands as part of disaster prevention or relief efforts in response to an emergency or major disaster declared by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.).

``(e) PREFERENCE FOR CERTAIN PROJECTS.— In selecting appropriate conservation projects to be carried out under this title, the Secretary of the Interior and the Secretary of Agriculture shall give preference to those projects which—

``(1) will provide long-term benefits to the public;

``(2) will instill in the enrollee involved a work ethic and a sense of public service;

``(3) will be labor intensive;

``(4) can be planned and initiated promptly; and

``(5) will provide academic, experiential, or environmental education opportunities.

``(f) CONSISTENCY.— Each appropriate conservation project carried out under this title on eligible service lands shall be consistent with the provisions of law and policies relating to the management and administration of such lands, with all other applicable provisions of law, and with all management, operational, and other plans and documents which govern the administration of the area.

``SEC. 205. CONSERVATION CENTERS.

``(a) ESTABLISHMENT AND USE.— The Secretary of the Interior and the Secretary of Agriculture are each authorized to provide such quarters, board, medical care, transportation, and other services, facilities, supplies, and equipment as such Secretary deems necessary in connection with the Public Lands Corps and appropriate conservation projects carried out under this title and to establish and use conservation centers owned and operated by such Secretary for purposes of the Corps and such projects. The Secretaries shall establish basic standards of health, nutrition, sanitation, and safety for all conservation centers established under this section and shall assure that such standards are enforced. Where necessary or appropriate, the Secretaries may enter into contracts and other appropriate arrangements with State and local government agencies and private organizations for the management of such conservation centers.

``(b) LOGISTICAL SUPPORT.— The Secretary of the Interior and the Secretary of Agriculture may make arrangements with the Secretary of Defense to have logistical support provided by the Armed Forces to the Corps and any conservation center established under this section, where feasible. Logistical support may include the provision of temporary tent shelters where needed, transportation, and residential supervision.

``(c) USE OF MILITARY INSTALLATIONS.— The Secretary of the Interior and the Secretary of Agriculture may make arrangements with the Secretary of Defense to identify military installations and other facilities of the Department of Defense and, in consultation with the adjutant generals of the State National Guards, National Guard facilities that may be used, in whole or in part, by the Corps for training or housing Corps participants.

``SEC. 206. RESOURCE ASSISTANTS.

``(a) AUTHORIZATION.— The Secretary of the Interior and the Secretary of Agriculture are each authorized to provide individual placements of resource assistants with any Federal land managing agency under the jurisdiction of such Secretary to carry out research or resource protection activities on behalf of the agency. To be eligible for selection as a resource assistant, an individual must be at least 17 years of age. The Secretaries may select resource assistants without regard to the civil service and classification laws, rules, or regulations of the United States. The Secretaries shall give a preference to the selection of individuals who are enrolled in an institution of higher education or are recent graduates from an institution of higher education, with particular attention given to ensure full representation of women and participants from historically black, Hispanic, and Native American schools.

``(b) USE OF EXISTING NONPROFIT ORGANIZATIONS.— Whenever one or more existing nonprofit organizations can provide, in the judgment of the Secretary of the Interior or the Secretary of Agriculture, appropriate recruitment and placement services to fulfill the requirements of this section, the Secretary may implement this section through such existing organizations. Participating nonprofit organizations shall contribute to the expenses of providing and supporting the resource assistants, through private sources of funding, at a level equal to 25 percent of the total costs of each participant in the Resource Assistant program who has been recruited and placed through that organization. Any such participating nonprofit conservation service organization shall be required, by the respective land managing agency, to submit an annual report evaluating the scope, size, and quality of the program, including the value of work contributed by the Resource Assistants, to the mission of the agency.

``SEC. 207. LIVING ALLOWANCES AND TERMS OF SERVICE.

``(a) LIVING ALLOWANCES.— The Secretary of the Interior and the Secretary of Agriculture shall provide each participant in the Public Lands Corps and each resource assistant with a living allowance in an amount not to exceed the maximum living allowance authorized by section 140(a)(3) of the National and Community Service Act of 1990 for participants in a national service program assisted under subtitle C of title I of such Act.

``(b) TERMS OF SERVICE.— Each participant in the Corps and each resource assistant shall agree to participate in the Corps or serve as a resource assistant, as the case may be, for such term of service as may be established by the Secretary enrolling or selecting the individual.

``SEC. 208. NATIONAL SERVICE EDUCATIONAL AWARDS.

``(a) EDUCATIONAL BENEFITS AND AWARDS.— If a participant in the Public Lands Corps or a resource assistant also serves in an approved national service position designated under subtitle C of title I of the National and Community Service Act of 1990, the participant or resource assistant shall be eligible for a national service educational award in the manner prescribed in subtitle D of such title upon successfully complying with the requirements for the award. The period during which the national service educational award may be used, the purposes for which the award may be used, and the amount of the award shall be determined as provided under such subtitle.

``(b) FORBEARANCE IN THE COLLECTION OF STAFFORD LOANS.— For purposes of section 428 of the Higher Education Act of 1965, in the case of borrowers who are either participants in the Corps or resource assistants, upon written request, a lender shall grant a borrower forbearance on such terms as are otherwise consistent with the regulations of the Secretary of Education, during periods in which the borrower is serving as such a participant or a resource assistant.

``SEC. 209. NONDISPLACEMENT.

``The nondisplacement requirements of section 177 of the National and Community Service Act of 1990 shall be applicable to all activities carried out by the Public Lands Corps, to all activities carried out under this title by a qualified youth or conservation corps, and to the selection and service of resource assistants.

``SEC. 210. FUNDING.

``(a) COST SHARING.—

``(1) PROJECTS BY QUALIFIED YOUTH OR CONSERVATION CORPS.— The Secretary of the Interior and the Secretary of Agriculture are each authorized to pay not more than 75 percent of the costs of any appropriate conservation project carried out pursuant to this title on public lands by a qualified youth or conservation corps. The remaining 25 percent of the costs of such a project may be provided from nonfederal sources in the form of funds, services, facilities, materials, equipment, or any combination of the foregoing. No cost sharing shall be required in the case of any appropriate conservation project carried out on Indian lands or Hawaiian home lands under this title.

``(2) PUBLIC LANDS CORPS PROJECTS.— The Secretary of the Interior and the Secretary of Agriculture are each authorized to accept donations of funds, services, facilities, materials, or equipment for the purposes of operating the Public Lands Corps and carrying out appropriate conservation projects by the Corps. However, nothing in this title shall be construed to require any cost sharing for any project carried out directly by the Corps.

``(b) FUNDS AVAILABLE UNDER NATIONAL AND COMMUNITY SERVICE ACT.— In order to carry out the Public Lands Corps or to support resource assistants and qualified youth or conservation corps under this title, the Secretary of the Interior and the Secretary of Agriculture shall be eligible to apply for and receive assistance under section 121(b) of the National and Community Service Act of 1990.´´.

Sec. 106. Urban Youth Corps.

(a) FINDINGS.—

The Congress finds the following:

(1) The rehabilitation, reclamation, and beautification of urban public housing, recreational sites, youth and senior centers, and public roads and public works facilities through the efforts of young people in the United States in an Urban Youth Corps can benefit these youths, while also benefiting their communities, by—

(A) providing them with education and work opportunities;

(B) furthering their understanding and appreciation of the challenges faced by individuals residing in urban communities; and

(C) providing them with a means to pay for higher education or to repay indebtedness they have incurred to obtain higher education.

(2) A significant number of housing units for low-income individuals in urban areas has become substandard and unsafe and the deterioration of urban roadways, mass transit systems, and transportation facilities in the United States have contributed to the blight encountered in many cities in the United States.

(3) As a result, urban housing, public works, and transportation resources are in need of labor intensive rehabilitation, reclamation, and beautification work that has been neglected in the past and cannot be adequately carried out by Federal, State, and local government at existing personnel levels.

(4) Urban youth corps have established a good record of rehabilitating, reclaiming, and beautifying these kinds of resources in a cost-efficient manner, especially when they have worked in partnership with government housing, public works, and transportation authorities and agencies.

(b) PURPOSE.—

It is the purpose of this section—

(1) to perform, in a cost-effective manner, appropriate service projects to rehabilitate, reclaim, beautify, and improve public housing and public works and transportation facilities and resources in urban areas suffering from high rates of poverty where work will not be performed by existing employees;

(2) to assist government housing, public works, and transportation authorities and agencies;

(3) to expose young people in the United States to public service while furthering their understanding and appreciation of their community;

(4) to expand educational opportunity for individuals who participate in the Urban Youth Corps established by this section by providing them with an increased ability to pursue postsecondary education or job training; and

(5) to stimulate interest among young people in the United States in lifelong service to their communities and the United States.

(c) DEFINITIONS.—

For purposes of this section:

(1) APPROPRIATE SERVICE PROJECT.—

The term ``appropriate service project´´ means any project for the rehabilitation, reclamation, or beautification of urban public housing and public works and transportation resources or facilities.

(2) CORPS AND URBAN YOUTH CORPS.—

The term ``Corps´´ and ``Urban Youth Corps´´ mean the Urban Youth Corps established under subsection (d)(1).

(3) QUALIFIED URBAN YOUTH CORPS.—

The term ``qualified urban youth corps´´ means any program established by a State or local government or by a nonprofit organization that—

(A) is capable of offering meaningful, full-time, productive work for individuals between the ages of 16 and 25, inclusive, in an urban or public works or transportation setting;

(B) gives participants a mix of work experience, basic and life skills, education, training, and support services; and

(C) provides participants with the opportunity to develop citizenship values and skills through service to their communities and the United States.

(4) SECRETARY.—

The term ``Secretary´´ means the Secretary of Housing and Urban Development or the Secretary of Transportation.

(5) STATE.—

The term ``State´´ means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin Islands of the United States, American Samoa, and the Commonwealth of the Northern Mariana Islands.

(d) ESTABLISHMENT OF URBAN YOUTH CORPS.—

(1) ESTABLISHMENT.—

There is hereby established in the Department of Housing and Urban Development and the Department of Transportation an Urban Youth Corps. The Corps shall consist of individuals between the ages of 16 and 25, inclusive, who are enrolled as participants in the Corps by the Secretary of Housing and Urban Development and the Secretary of Transportation. To be eligible for enrollment in the Corps, an individual shall satisfy the criteria specified in section 139(b) of the National and Community Service Act of 1990. The Secretaries may enroll such individuals in the Corps without regard to the civil service and classification laws, rules, or regulations of the United States. The Secretaries may establish a preference for the enrollment in the Corps of individuals who are economically, physically, or educationally disadvantaged.

(2) USE OF QUALIFIED URBAN YOUTH CORPS.—

The Secretaries are authorized to enter into contracts and cooperative agreements with any qualified urban youth corps to perform appropriate service projects described in paragraph (3). As part of the Urban Youth Corps established in the Department of Transportation, the Secretary of Transportation may make grants to States (and through States to local governments) for the purpose of establishing, operating, or supporting qualified urban youth corps that will perform appropriate service projects relating to transportation resources or facilities.

(3) SERVICE PROJECTS.—

The Secretaries may each utilize the Corps or any qualified urban youth corps to carry out appropriate service projects that the Secretary involved is authorized to carry out under other authority of law involving public housing projects or public works resources or facilities.

(4) PREFERENCE FOR CERTAIN PROJECTS.—

In selecting an appropriate service project to be carried out under this section, the Secretaries shall give a preference to those projects which—

(A) will provide long-term benefits to the public;

(B) will instill in the participant a work ethic and a sense of public service;

(C) will be labor intensive;

(D) can be planned and initiated promptly; and

(E) will provide academic, experiential, or community education opportunities.

(5) CONSISTENCY.—

Each appropriate service project carried out under this section in any public housing project or public works resource or facility shall be consistent with the provisions of law and policies relating to the management and administration of such projects, facilities, or resources, with all other applicable provisions of law, and with all management, operational, and other plans and documents which govern the administration of such projects, facilities, or resources.

(e) LIVING ALLOWANCES.—

The Secretaries shall provide each participant in the Urban Youth Corps with a living allowance in an amount not to exceed the maximum living allowance authorized by section 140(a)(3) of the National and Community Service Act of 1990 for participants in a national service program assisted under subtitle C of title I of such Act.

(f) TERMS OF SERVICE.—

Each participant in the Urban Youth Corps shall agree to participate in the Corps for a term of service established by the Secretary involved, consistent with the terms of service required under section 139(b) of the National and Community Service Act of 1990 for participants in a national service program assisted under subtitle C of title I of such Act.

(g) EDUCATIONAL AWARDS.—

(1) ELIGIBILITY.—

Each participant in the Urban Youth Corps shall be eligible for a national service educational award in the manner prescribed in subtitle D of title I of the National and Community Service Act of 1990 if such participant complies with such requirements as may be established under this subtitle by the Secretary involved respecting eligibility for the award. The period during which the award may be used, the purposes for which the award may be used, and the amount of the award shall be determined as provided under such subtitle.

(2) FORBEARANCE IN THE COLLECTION OF STAFFORD LOANS.—

For purposes of section 428 of the Higher Education Act of 1965, in the case of borrowers who are participants in the Urban Youth Corps, upon written request, a lender shall grant a borrower forbearance on such terms as are otherwise consistent with the regulations of the Secretary of Education, during periods in which the borrower is serving as such a participant and eligible for a national service educational award under paragraph (1).

(h) NONDISPLACEMENT.—

The nondisplacement requirements of section 177 of the National and Community Service Act of 1990 shall be applicable to all activities carried out by the Urban Youth Corps and to all activities carried out under this section by a qualified urban youth corps.

(i) COST SHARING.—

(1) PROJECTS BY QUALIFIED URBAN YOUTH CORPS.—

The Secretaries are each authorized to pay not more than 75 percent of the costs of any appropriate service project carried out pursuant to this section by a qualified urban youth corps. The remaining 25 percent of the costs of such a project may be provided from nonfederal sources in the form of funds, services, facilities, materials, equipment, or any combination of the foregoing.

(2) DONATIONS.—

The Secretaries are each authorized to accept donations of funds, services, facilities, materials, or equipment for the purposes of operating the Urban Youth Corps and carrying out appropriate service projects by the Corps. However, nothing in this section shall be construed to require any cost sharing for any project carried out directly by the Corps.

(3) FUNDS AVAILABLE UNDER NATIONAL AND COMMUNITY SERVICE ACT.—

In order to carry out the Urban Youth Corps or to support qualified urban youth corps under this section, the Secretaries shall be eligible to apply for and receive assistance under section 121(b) of the National and Community Service Act of 1990.