[Congressional Record (Bound Edition), Volume 149 (2003), Part 11]
[Senate]
[Pages 15006-15026]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. LEAHY (for himself, Mr. Inouye, and Mr. Bingaman):
  S. 1271. A bill to enhance the criminal penalties for illegal 
trafficking of archaeological resources, and for other purposes; to the 
Committee on Energy and Natural Resources.
  Mr. LEAHY. Mr. President, I rise today to introduce the Enhanced 
Protection of Our Cultural Heritage Act. This legislation was reported 
last year by the Energy Committee, and I hope that this year it will 
become law. The bill would increase the maximum penalties for 
violations of three existing statutes that protect the cultural and 
archaeological history of the American people, particularly Native 
Americans. The United States Sentencing Commission asked Congress last 
year to make these statutory changes, which would complement the 
Commission's strengthening of Federal sentencing guidelines to ensure 
more stringent penalties for criminals who steal from our public lands. 
Senator Inouye joins me as a cosponsor.
  This bill will increase the maximum penalties for the Archaeological 
Resources Protection Act, ARPA, 16 USC Sec. 470ee, the Native American 
Graves Protection and Repatriation Act, NAGPRA, 18 USC Sec. 1170, and 
for 18 USC Sec. 1163, which prohibits theft from Indian Tribal 
Organizations. All three statutes currently impose a 5-year maximum 
sentence, and each includes a lower maximum for a first offense of the 
statute and/or a violation of the statute involving property of less 
than a specified value. This bill would create a 10-year maximum 
sentence for each statute. In response to comments from the 
administration last year, the bill retains misdemeanor offenses for 
relatively minor offenses.
  The increased maximum sentences would be consistent with similar 
Federal statutes. For example, the 1994 law proscribing museum theft 
carries a 10-year maximum sentence, as do the general statutes 
punishing theft and the destruction of Government property. Moreover, 
increasing the maximum sentences will give judges and the Sentencing 
Commission greater discretion to impose punishments appropriate to the 
amount of destruction a defendant has done.
  Making these changes will also enable the Sentencing Commission's 
2002 sentencing guidelines to be fully implemented. The Commission has 
increased sentencing guidelines for cultural heritage crimes, but the 
statutory maximum penalties contained in current law will prevent 
judges from issuing sentences in the upper range of the new guidelines. 
The 2002 guidelines had the enthusiastic support of the Justice and 
Interior Departments, the Society for American Archeology, the National 
Trust for Historic Preservation, numerous Native American nations, and 
many others. Congress should take the steps necessary to see the 
guidelines take full effect.
  Two of the three laws this bill amends protect Native American lands 
and property. The third, ARPA, protects both public and Indian lands, 
and provides significant protection to my State of Vermont. For 
example, ARPA can be used to prosecute those who would steal artifacts 
from the wrecked military vessels at the bottom of Lake Champlain that 
date to the Revolutionary War and the War of 1812. U.S. Attorneys can 
also use ARPA to prosecute criminals who take items that are at least 
100 years old from a protected site on Vermont state property without a 
permit, and then transport those goods into another state. In addition, 
ARPA protects artifacts found on the approximately 5 percent of Vermont 
land that is Federal property, land that includes many ``ghost towns'' 
that have long been abandoned but are an important part of our history.
  Those who would pillage the rich cultural heritage of this nation and 
its people are committing serious crimes. These artifacts are the 
legacy of all Americans and should not be degraded as garage sale 
commodities or as fodder for private enrichment.
  I would like to thank a number of people for their help and advice 
about this legislation. Charlie Tetzlaff, as well as the rest of the 
staff at the Sentencing Commission, helped us understand the importance 
of this issue, and made protecting our cultural heritage a priority 
when he served as United States Attorney for Vermont. Art Cohn, the 
director of the Lake Champlain Maritime Museum, and Giovanna Peebles, 
Vermont's State Archeologist, were very helpful in explaining how our 
laws protect the cultural heritage of Vermont and the rest of the 
nation, and I am grateful for their support for this bill.
  Passage of this legislation would demonstrate Congress' commitment to 
preserving our Nation's history and our cultural heritage. I urge my 
colleagues to support this common-sense initiative.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1271

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Enhanced Protection of Our 
     Cultural Heritage Act of 2003''.

     SEC. 2. ENHANCED PENALTIES FOR CULTURAL HERITAGE CRIMES.

       (a) Enhanced Penalty for Embezzlement and Theft From Indian 
     Tribal Organizations.--Section 1163 of title 18, United 
     States Code, is amended by striking ``five years'' and 
     inserting ``10 years''.
       (b) Enhanced Penalty for Illegal Trafficking in Native 
     American Human Remains and Cultural Items.--Section 1170 of 
     title 18, United States Code, is amended--
       (1) in subsection (a), by striking ``or imprisoned not more 
     than 12 months, or both, and in the case of second or 
     subsequent violation, be fined in accordance with this title, 
     or imprisoned not more than 5 years'' and inserting 
     ``imprisoned not more than 10 years''; and
       (2) in subsection (b), by striking ``imprisoned not more 
     than one year'' and all that follows through the end of the 
     subsection and inserting ``imprisoned not more than 10 years, 
     or both; but if the sum of the commercial and archaeological 
     value of the cultural items involved and the cost of 
     restoration and repair of such items does not exceed $500, 
     such person shall be fined in accordance with this title, 
     imprisoned not more than 1 year, or both.''.
       (c) Enhanced Penalty for Archaeological Resources.--Section 
     6(d) of the Archaeological Resources Protection Act of 1979 
     (16 U.S.C. 470ee(d)) is amended by striking ``not more than 
     $10,000'' and all that follows through the end of the 
     subsection and inserting ``in accordance with title 18, 
     United States Code, imprisoned not more than 10 years, or 
     both; but if the sum of the commercial and archaeological 
     value of the archaeological resources involved and the cost 
     of restoration and repair of such resources does not exceed 
     $500, such person shall be fined in accordance with title 18, 
     United States Code, imprisoned not more than 1 year, or 
     both.''.
                                 ______
                                 
      By Mr. CORZINE (for himself, Mr. Bayh, Mrs. Clinton, and Mr. 
        Kennedy):
  S. 1272. A bill to amend the Occupational Safety and Health Act of 
1970 to

[[Page 15007]]

modify the provisions relating to citations and penalties; to the 
Committee on Health, Education, Labor and Pensions.
  Mr. CORZINE. Mr. President, I rise to introduce the ``Wrongful Death 
Accountability Act,'' legislation that would, among other things, 
increase the maximum criminal penalty for those who willfully violate 
workplace safety laws and cause the death of an employee.
  Unbelievably, under existing law, that crime is a misdemeanor, and 
carries a maximum prison sentence of just 6 months. This legislation 
would increase the penalty for this most egregious workplace crime to 
10 years--making it a felony. The bill also would increase the penalty 
associated with lying to an OSHA inspector from 6 months to 1 year, and 
would increase the penalty for illegally giving advance warning of an 
upcoming inspection from 6 months to 2 years.
  In recent months, this Congress has focused on a shocking succession 
of corporate scandals: Enron, Tyco, WorldCom, to name a few. These 
revelations of corporate abuse raised the ire and indignation of the 
American people. But corporate abuses can sometimes go further than 
squandering employee pension funds and costing shareholder value. 
Sometimes, corporate abuses can cost lives.
  My legislation is based on the simple premise that going to work 
should not carry a death sentence. Annually, more than 6,000 Americans 
are killed on the job, and some 50,000 more die from work-related 
illnesses. Many of those deaths--deaths that leave wives without 
husbands, brothers without sisters, and children without parents--are 
completely preventable.
  Earlier this year, the New York Times published an eye-opening, 
multi-part series that documented the failure of the Federal government 
to prosecute violators of workplace safety laws. The articles were 
deeply disturbing to anyone concerned about the health and well being 
of workers in America, detailing one company's pattern of recklessly 
disregarding basic safety rules. The authors linked at least nine 
employee deaths in five states--New York, New Jersey, Ohio, Alabama, 
and Texas--over a 7-year period with the failure of a single company, 
McWane Foundry, to follow established workplace safety regulations. 
Three of those deaths were judged to have been caused by deliberate and 
willful violations of federal safety rules.
  As a result of that article and a subsequent criminal investigation, 
McWane has begun to clean up its act. But no one should be deluded. 
McWane is not the only company with a record of putting employees at 
risk. Others--although still the clear minority--continue to flout 
workplace safety rules and jeopardize the health and well being of 
workers.
  The administration recognized that there was a problem and recently 
announced its ``enhanced enforcement policy,'' a small step in the 
right direction. But more needs to be done, and I have requested the 
support of Secretary Henshaw, Administrator of OSHA, for my 
legislation.
  While many factors contribute to the unsafe working environment that 
exists at certain jobsites, one easily remedied factor is an 
ineffective regime of criminal penalties. The criminal statutes 
associated with OSHA have been on the books since the 1970s, but--over 
time--the deterrence value of these important workplace safety laws has 
eroded substantially. With the maximum jail sentence a paltry 6 months, 
Federal prosecutors have only a minimal incentive to spend time and 
resources prosecuting renegade employers. According to a recent 
analysis, since the Occupational Safety and Health Act was enacted, 
only 11 employers who caused the death of a worker on the job were 
incarcerated.
  The logic behind this legislation is simple. The bill will increase 
the incentive for prosecutors to hold renegade employers accountable 
for endangering the lives of their workers and, thereby, help ensure 
that OSHA criminal penalties cannot be safely ignored. This will 
provide the OSHA criminal statute with sufficient teeth to deter the 
small percentage of bad actors who knowingly and willfully place their 
employees at risk.
  I urge my colleagues to support this important piece of legislation 
and ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1272

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Wrongful Death 
     Accountability Act.''

     SEC. 2. OSHA CRIMINAL PENALTIES.

       Section 17 of the Occupational Safety and Health Act of 
     1970 (29 U.S.C. 666) is amended--
       (1) in subsection (e)--
       (A) by striking ``fine of not more than $10,000'' and 
     inserting ``fine in accordance with section 3571 of title 18, 
     United States Code,'';
       (B) by striking ``six months'' and inserting ``10 years'';
       (B) by striking ``fine of not more than $20,000'' and 
     inserting ``fine in accordance with section 3571 of title 18, 
     United States Code,'';
       (C) by striking ``one year'' and inserting ``20 years''; 
     and
       (E) by inserting ``under this subsection or subsection 
     (i)'' after ``first conviction of such person'';
       (2) in subsection (f), by striking ``fine of not more than 
     $1,000 or by imprisonment for not more than six months,'' and 
     inserting ``fine in accordance with section 3571 of title 18, 
     United States Code, or by imprisonment for not more than 2 
     years,''; and
       (3) in subsection (g), by striking ``fine of not more than 
     $10,000, or by imprisonment for not more than six months,'' 
     and inserting ``fine in accordance with section 3571 of title 
     18, United States Code, or by imprisonment for not more than 
     1 year,''.
                                 ______
                                 
      By Mr. KENNEDY (for himself, Mr. Daschle, Mr. Jeffords, Mr. 
        Edwards, Mr. Reed, Mrs. Clinton, Mrs. Murray, Mr. Bingaman, Mr. 
        Dodd, and Mr. Harkin):
  S. 1273. A bill to provide for a study to ensure that students are 
not adversely affected by changes to the needs analysis tables, and to 
require the Secretary of Education to consult with the Advisory 
Committee on Student Financial Assistance regarding such changes; to 
the Committee on Health, Education, Labor, and Pensions.
  Mr. KENNEDY. Mr. President, it is a privilege to join my colleagues, 
Senator Daschle, Senator Jeffords, Senator Edwards, Senator Reed, 
Senator Clinton, Senator Murray, Senator Bingaman and Senator Dodd, to 
introduce legislation to amend the Higher Education Act to require a 
feasibility and impact study on the recent changes in the state and 
local tax tables that are the basis for determining need-based aid for 
college students.
  The bill will direct GAO to complete a study in consultation with the 
Advisory Committee on Student Financial Assistance within 90 days, well 
in advance of the 04-05 academic year when these changes would take 
effect. The advisory committee is a non-partisan board appointed by the 
President, which oversees college financial aid. Any future changes in 
the tables would have to be considered in consultation with the 
Advisory Committee.
  When decisions are made that affect the cost of college, it is 
important for Congress to understand the factors that influenced that 
decision and the practical impact of those decisions on students. In 
light of the slumping economy, State budget crises, and rising college 
costs, the Department's proposed changes come at a very difficult time 
for students and their families. Raising the cost of tuition by a few 
hundred dollars may well mean that qualified students can no longer 
afford college. It is our responsibility to see that any such changes 
are made for sound reasons.
  I also urge the Department of Education to work with Congress in the 
future in making these decisions, so that all of us in the House and 
Senate will have a reasonable opportunity to consider such changes 
before they are made.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

[[Page 15008]]



                                S. 1273

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. STUDY AND CONSULTATION.

       (a) Study.--In order to ensure that students are not 
     adversely affected by the proposed changes to the tables used 
     in the Federal Needs Analysis Methodology to determine a 
     student's expected family contribution for the award year 
     2004-2005 under part F of title IV of the Higher Education 
     Act of 1965 (20 U.S.C. 1087kk et seq.), the Comptroller 
     General, in consultation with the Advisory Committee on 
     Student Financial Assistance, shall conduct a study of such 
     proposed changes that shall include an examination of the 
     impact of such changes on students. A report of the findings 
     of the study shall be transmitted to the Secretary of 
     Education and the appropriate committees of Congress not 
     later than 90 days after the date of enactment of this Act.
       (b) Consultation.--Section 478 of the Higher Education Act 
     of 1965 (20 U.S.C. 1087rr) is amended by adding at the end 
     the following:
       ``(i) Consultation Required.--Prior to publishing any 
     notice or promulgating any regulation with respect to updated 
     tables under this section, the Secretary shall consult with 
     the Advisory Committee on Student Financial Assistance 
     regarding such updated tables.''.
                                 ______
                                 
      By Mr. KENNEDY (for himself, Mr. McCain, Mr. Bayh, Ms. Mikulski, 
        and Mr. Rockefeller):
  S. 1274. A bill to reauthorize and reform the national laws; to the 
Committee on Health, Education, Labor, and Pensions.
  Mr. KENNEDY. Mr. President, it is a privilege to join my colleagues 
in introducing legislation to reauthorize the Corporation for National 
Service. In 1993 the bipartisan National Service Act created a new 
program to give citizens of all ages the opportunity to serve their 
communities. Our goal now is to work with the administration to promote 
and expand service through the State commissions and the extensive 
system of national organizations that recruit, train and place 
volunteers and mentors. The legislation we are introducing, the Call to 
Service Act, will reauthorize the Corporation for National Service and 
keep these programs on track to achieve this goal.
  Over 250,000 Americans have given a year of service in communities 
across the country, tutoring young people, connecting people to health 
care, and building stronger communities. Through the AmeriCorps model, 
we can give more young people the support they need to dedicate a year 
of their lives to service. These are active citizens, and our country 
will benefit immensely from the lessons we learn in serving others.
  Community service knows no age limits. Thousands of older Americans 
volunteer to tutor young people or support others in living 
independently, or serve in local agencies. Senior citizens are a 
valuable resource in every community, and service gives them an 
effective way to continue to be involved in the communities they helped 
to build. The Foster Grandparent, Senior Companion, and RSVP programs, 
enable seniors to contribute every day to their communities.
  The Learn and Serve programs enable young men and women to learn 
early in their lives that serving others is important, and that service 
is a basic responsibility of citizenship. Children learn the value of 
community service, and build habits of service that last a lifetime. 
Service learning programs for elementary and secondary students provide 
hands-on experiences to supplement traditional school curriculums. The 
evidence is irrefutable. Service learning works. When students help 
others in their communities, they do better academically in school too.
  In terms of cost effectiveness, the Federal Learn and Serve America 
program is an excellent investment. In the 2001-2002 school year more 
than 800,000 students across the country from grades K through 12 had 
the opportunity to serve their community, raise their academic 
achievement, and develop social skills. In Massachusetts, over 86,000 
students of all ages currently participate in Learn and Serve programs.
  Our bill strengthens our commitment to service by increasing the 
number of volunteers in AmeriCorps, lowering the age for senior service 
from 60 to 55 and increasing the authorization for Learn and Serve. In 
addition, our bill creates a new service opportunity for high school 
students. After completing 300 hours of service to their community, 
high school students will earn a $1,000 award to use on college. This 
increases the critical service to communities, builds the habit of 
serving in young people and sets them on track to continue their 
education.
  I hope that my colleagues will support this legislation.
  I ask unanimous consent that the text of this bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1274

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Call to 
     Service Act''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

   TITLE I--AMENDMENTS TO NATIONAL AND COMMUNITY SERVICE ACT OF 1990

Sec. 1001. References.

                     Subtitle A--General Provisions

Sec. 1101. Purposes of Act.
Sec. 1102. Definitions.

                      Subtitle B--Service-Learning

Sec. 1201. School-based allotments.
Sec. 1202. Higher education provisions.
Sec. 1203. Community-based programs, training, and other initiatives.
Sec. 1204. Service-learning clearinghouse.

               Subtitle C--National Service Trust Program

Sec. 1301. Prohibition on grants to Federal agencies; limits on 
              Corporation costs.
Sec. 1302. E-Corps and technical amendments to types of programs.
Sec. 1303. Types of positions.
Sec. 1304. Training and technical assistance.
Sec. 1305. Assistance to State Commissions; challenge grants.
Sec. 1306. Allocation of assistance to States and other eligible 
              entities.
Sec. 1307. Additional authority.
Sec. 1308. State selection of programs.
Sec. 1309. Consideration of applications.
Sec. 1310. Description of participants.
Sec. 1311. Reference to Federal agency.
Sec. 1312. Terms of service.
Sec. 1313. Adjustments to living allowance.

 Subtitle D--National Service Trust and Provision of National Service 
                           Educational Awards

Sec. 1401. Availability of funds in the National Service Trust.
Sec. 1402. Individuals eligible to receive a national service 
              educational award from the Trust.
Sec. 1403. Determination of the amount of national service educational 
              awards.
Sec. 1404. Disbursement of national service educational awards.
Sec. 1405. Additional uses of national service trust amounts.

             Subtitle E--National Civilian Community Corps

Sec. 1501. Purpose.
Sec. 1502. National Civilian Community Corps.
Sec. 1503. Program components.
Sec. 1504. Eligible participants.
Sec. 1505. Summer national service program.
Sec. 1506. Team leaders.
Sec. 1507. Consultation with State Commissions.
Sec. 1508. Permanent cadre.
Sec. 1509. Contract and grant authority.
Sec. 1510. Other departments.
Sec. 1511. Repeal of authority for advisory board and funding 
              limitation.
Sec. 1512. Definitions.
Sec. 1513. Terminology.

                 Subtitle F--Administrative Provisions

Sec. 1601. Family and medical leave.
Sec. 1602. Additional prohibitions on use of funds.
Sec. 1603. Notice, hearing, and grievance procedures.
Sec. 1604. Resolution of displacement complaints.
Sec. 1605. State Commissions on National and Community Service.
Sec. 1606. Evaluation and accountability.
Sec. 1607. Technical amendment.
Sec. 1608. Additional administrative provisions.

       Subtitle G--Corporation for National and Community Service

Sec. 1701. Terms of office.
Sec. 1702. Board of Directors authorities and duties.
Sec. 1703. Peer reviewers.
Sec. 1704. Officers.
Sec. 1705. Nonvoting members; personal services contracts.
Sec. 1706. Donated services.

           Subtitle H--Investment for Quality and Innovation

Sec. 1801. Technical amendments to subtitle H.

[[Page 15009]]

Sec. 1802. Clearinghouses.
Sec. 1803. Repeal of special demonstration project.

                   Subtitle I--Additional Authorities

Sec. 1901. America's Promise: The Alliance for Youth.

                 Subtitle J--Points of Light Foundation

Sec. 1911. Purposes.
Sec. 1912. Board of Directors.
Sec. 1913. Grants to the Foundation.

              Subtitle K--Authorization of Appropriations

Sec. 1921. Authorization.

   TITLE II--AMENDMENTS TO THE DOMESTIC VOLUNTEER SERVICE ACT OF 1973

Sec. 2001. References.

          Subtitle A--National Volunteer Antipoverty Programs

Sec. 2101. Purpose.
Sec. 2102. Purpose of the VISTA program.
Sec. 2103. Applications.
Sec. 2104. Terms and periods of service.
Sec. 2105. Sections repealed.
Sec. 2106. Redesignation.
Sec. 2107. University Year for VISTA Program.
Sec. 2108. Conforming amendment.

               Subtitle B--National Senior Service Corps

Sec. 2201. Change in name.
Sec. 2202. Purpose.
Sec. 2203. Grants and contracts for volunteer service projects.
Sec. 2204. Foster Grandparent Program grants.
Sec. 2205. Senior Companion Program grants.
Sec. 2206. Technical amendments.
Sec. 2207. Programs of national significance.
Sec. 2208. Additional provisions.

              Subtitle C--Administration and Coordination

Sec. 2301. Nondisplacement.
Sec. 2302. Definitions.
Sec. 2303. Protection against improper use.
Sec. 2304. Income verification.
Sec. 2305. Sections repealed.
Sec. 2306. Redesignations.

              Subtitle D--Authorization of Appropriations

Sec. 2401. Authorization of appropriations for VISTA and other 
              purposes.
Sec. 2402. Authorization of appropriations for National Senior Service 
              Corps.
Sec. 2403. Administration and coordination.
Sec. 2404. Redesignations.

                  TITLE III--AMENDMENTS TO OTHER LAWS

Sec. 3001. Inspector General Act of 1978.

          TITLE IV--TECHNICAL AMENDMENTS TO TABLES OF CONTENTS

Sec. 4001. Table of contents for the National and Community Service Act 
              of 1990.
Sec. 4002. Table of contents for the Domestic Volunteer Service Act of 
              1973.

             TITLE V--EFFECTIVE DATE AND SENSE OF CONGRESS

Sec. 5001. Effective date.
Sec. 5002. Service assignments and agreements.
Sec. 5003. Sense of Congress.
Sec. 5004. Recruitment and application materials in languages other 
              than English.

   TITLE I--AMENDMENTS TO NATIONAL AND COMMUNITY SERVICE ACT OF 1990

     SEC. 1001. REFERENCES.

       Except as otherwise specifically provided, whenever in this 
     title an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a provision, the reference shall 
     be considered to be made to a provision of the National and 
     Community Service Act of 1990 (42 U.S.C. 12501 et seq.).

                     Subtitle A--General Provisions

     SEC. 1101. PURPOSES OF ACT.

       Section 2(b) (42 U.S.C. 12501(b)) is amended--
       (1) in paragraph (7), by striking ``citizens; and'' and 
     inserting ``citizens;'';
       (2) in paragraph (8), by striking the period and inserting 
     a semicolon; and
       (3) by adding at the end the following:
       ``(9) expand and strengthen service-learning programs to 
     improve the education of children and youth and to maximize 
     the benefits of national and community service;
       ``(10) support efforts to assist the nonprofit sector in 
     becoming more effective in meeting the unmet human, 
     educational, environmental, and public safety needs of the 
     United States; and
       ``(11) assist in coordinating and strengthening Federal and 
     other citizen service opportunities, including opportunities 
     for participation in homeland security preparedness and 
     response, including training for limited duration national 
     service.''.

     SEC. 1102. DEFINITIONS.

       Section 101 (42 U.S.C. 12511) is amended--
       (1) in paragraph (13), by striking ``section 101(a) of the 
     Higher Education Act of 1965'' and inserting ``sections 
     101(a) and 102(a)(1) of the Higher Education Act of 1965'';
       (2) in paragraph (19), by striking ``section 198, 198C, or 
     198D'' and inserting ``section 198 or 198C''; and
       (3) in paragraph (21)(B)--
       (A) by striking ``section 602(a)(1)'' and inserting 
     ``section 602(3)''; and
       (B) by striking ``20 U.S.C. 1401(a)(1)'' and inserting ``20 
     U.S.C. 1401(3)''.

                      Subtitle B--Service-Learning

     SEC. 1201. SCHOOL-BASED ALLOTMENTS.

       Part I of subtitle B of title I (42 U.S.C. 12521 et seq.) 
     is amended to read as follows:

    ``PART I--PROGRAMS FOR ELEMENTARY AND SECONDARY SCHOOL STUDENTS

                   ``Subpart A--Programs for Students

     ``SEC. 111. ASSISTANCE TO STATES AND INDIAN TRIBES.

       ``(a) Allotments to States, Territories, and Indian 
     Tribes.--The Corporation, after consultation with the 
     Secretary of Education, may make allotments to State 
     educational agencies (including such educational agencies of 
     States described in section 112(a)) and Indian tribes to pay 
     for the Federal share of--
       ``(1) planning and building the capacity within the State 
     or tribe to implement service-learning programs that are 
     based principally in elementary schools and secondary 
     schools, including--
       ``(A) providing high-quality 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, consistent 
     with State or local student academic achievement standards, 
     to be integrated into academic programs, including an age-
     appropriate learning component that provides participants an 
     opportunity to analyze and apply their service experiences;
       ``(C) forming local partnerships described in paragraph (2) 
     or (4)(E) 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, professional development, training, 
     supervision, placement, salaries, and benefits of service-
     learning coordinators, through distribution by State 
     educational agencies and Indian tribes of Federal funds made 
     available under this subpart to projects operated by local 
     partnerships among--
       ``(A) local educational agencies; and
       ``(B) 1 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; and
       ``(II) will make projects available for participants, who 
     shall be students;

       ``(ii) may include an Indian tribe; and
       ``(iii) may include a private for-profit business or 
     private elementary school or secondary school;
       ``(3) planning of school-based service-learning programs, 
     through distribution by State educational agencies and Indian 
     tribes 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, professional development, training, 
     supervision, and placement of service-learning coordinators 
     (who may be participants in a program under subtitle C or 
     eligible to 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); or
       ``(4) implementing, operating, or expanding school-based 
     service-learning programs to utilize service-learning to 
     improve the education of students, through distribution by 
     State educational agencies and Indian tribes of Federal funds 
     made available under this subpart to--
       ``(A) local educational agencies;
       ``(B) public or private nonprofit organizations;
       ``(C) other educational agencies;
       ``(D) Indian tribes; or
       ``(E) partnerships of local educational agencies and 
     entities described in subparagraphs (B), (C), and (D).
       ``(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 recipient of 
     financial assistance under this subpart that may include--
       ``(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

[[Page 15010]]

       ``(3) carrying out such other duties as the recipient of 
     financial assistance under this subpart may determine to be 
     appropriate.
       ``(c) Related Expenses.--A recipient of 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 of other 
     reasonable expenses related to the activities.

     ``SEC. 112. ALLOTMENTS.

       ``(a) Indian Tribes and Territories.--Of the funds 
     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.
       ``(b) Allotments To States.--After reserving an amount 
     under subsection (a), the Corporation shall use the remainder 
     of the funds appropriated for any fiscal year to carry out 
     this subpart as follows:
       ``(1) Allotments.--
       ``(A) School-age youth.--The Corporation shall allot to 
     each State an amount that bears the same ratio to 50 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.--The Corporation shall allot to each State an 
     amount that bears the same ratio to 50 percent of such 
     remainder as the allocation to the State for the previous 
     fiscal year under part A of title I of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.) 
     bears to the total of such allocations to all States.
       ``(2) Definition.--Notwithstanding section 101(26), in 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 did 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 make such 
     allotment available for reallotment in accordance with 
     subsections (a) and (b) to such other States and Indian 
     tribes, with approved applications submitted under section 
     113, as the Corporation may determine to be appropriate.

     ``SEC. 113. APPLICATIONS.

       ``To be eligible to receive an allotment under this 
     subpart, a State or Indian tribe shall submit an application 
     to the Corporation at such time, in such manner, and 
     containing such information as the Chief Executive Officer 
     may reasonably require, including--
       ``(1) a proposal for a 3-year plan promoting service-
     learning through the programs described in section 111, which 
     shall contain such information as the Chief Executive Officer 
     may reasonably require, including how the applicant will 
     integrate service opportunities into the academic program of 
     the participants;
       ``(2) information, in applicable cases, about the 
     applicant's efforts to--
       ``(A) include in the programs opportunities for students, 
     enrolled in schools or other programs providing elementary or 
     secondary education under State law, to participate in 
     service-learning programs and ensure that such service-
     learning programs include opportunities for such students to 
     serve together;
       ``(B) involve participants in the design and operation of 
     the programs;
       ``(C) promote service-learning in areas of greatest need, 
     including low-income areas; and
       ``(D) ensure that students of different ages, races, sexes, 
     ethnic groups, disabilities, and economic backgrounds have 
     opportunities to serve together; and
       ``(3) assurances that the applicant will comply with the 
     nonduplication and nondisplacement requirements of section 
     177 and the grievance procedure requirements of section 
     176(f).

     ``SEC. 114. CONSIDERATION OF APPLICATIONS.

       ``In considering applications under this subpart, the 
     Corporation shall use criteria that include those approved by 
     the Chief Executive Officer, after consideration of criteria 
     recommended by the Board of Directors.

     ``SEC. 115. FEDERAL, STATE, AND LOCAL CONTRIBUTIONS.

       ``(a) Federal Share.--
       ``(1) In general.--The Federal share of the cost of 
     carrying out a program for which an allotment is made under 
     this subpart may not exceed 50 percent of the total cost of 
     carrying out the program.
       ``(2) Non-federal contribution.--In providing for the 
     remaining share of the cost of carrying out such a program, 
     each recipient of an allotment 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 or 
     local sources.
       ``(b) Waiver.--The Chief Executive Officer may waive the 
     requirements of subsection (a) in whole or in part with 
     respect to any such program for 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. 116. LIMITATIONS ON USES OF FUNDS.

       ``(a) Limitation.--Not more than 5 percent of the amount of 
     assistance provided to a State or Indian tribe that is the 
     original recipient of an allotment under subsection (a), (b), 
     or (c) of section 112 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 service-learning 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 shall be distributed between--
       ``(A) the original recipient; and
       ``(B) the entity carrying out the service-learning programs 
     supported with the assistance.

           ``Subpart B--Community Corps Demonstration Program

     ``SEC. 118. DEMONSTRATION PROGRAM.

       ``(a) In General.--The Corporation, after consultation with 
     the Secretary of Education, shall establish and carry out a 
     Community Corps Demonstration Program.
       ``(b) Grant Program Authorized.--In carrying out the 
     program, the Corporation shall make grants on a competitive 
     basis to eligible entities, for planning, implementing, 
     operating, or expanding school-based service-learning 
     programs, operated in partnership with nonprofit 
     organizations or educational agencies, that--
       ``(1) require all students, as a condition of secondary 
     school graduation, to complete a substantial service 
     experience; and
       ``(2) provide high-quality opportunities to meet such 
     requirement through--
       ``(A) 1 or more mandatory service-learning courses in an 
     academic curriculum;
       ``(B) service-learning programs that--
       ``(i) require students to perform service after school, on 
     weekends, or during summer vacations; and
       ``(ii) utilize appropriately trained adults to identify 
     service opportunities for students within the community 
     involved, to disseminate information about such 
     opportunities, and to ensure that students have substantial 
     structured opportunities for reflection on their service 
     experiences;
       ``(C) service-learning programs that enroll students in 
     teams or corps after school, on weekends, or during summer 
     vacations; or
       ``(D) other types of service-learning programs approved by 
     the Corporation.
       ``(c) Applications.--To be eligible to receive a grant 
     under this section, an entity shall prepare, submit to the 
     Corporation, and obtain approval of, an application at such 
     time and in such manner as the Corporation may reasonably 
     require. Such application shall include a 5-year strategic 
     plan for developing high-quality opportunities of the type 
     specified in subsection (b).
       ``(d) Eligible Entity.--To be eligible to receive a grant 
     under this section, an entity shall be--
       ``(1) a State, acting through the State educational agency;
       ``(2) an Indian tribe;
       ``(3) a local educational agency; or
       ``(4) a nonprofit organization meeting such requirements as 
     the Corporation may specify, acting in partnership with 1 or 
     more States, Indian tribes, or local educational agencies.
       ``(e) Priorities.--In awarding grants under this section, 
     the Secretary shall give priority to applicants with programs 
     that--
       ``(1) meet unmet human, educational, environmental, or 
     public safety needs;
       ``(2) foster an ethic of civic responsibility, personal 
     character development, and leadership skills;
       ``(3) serve jurisdictions or portions of jurisdictions 
     having a high percentage of low-income families; or
       ``(4) meet such other criteria as the Corporation may by 
     regulation specify.
       ``(f) Report.--Not later than 2 years after the date of 
     enactment of the Call to Service Act, the Corporation shall 
     submit a report to Congress regarding the degree to which 
     programs carried out under this section have succeeded in 
     meeting the goals specified in paragraphs (1) and (2) of 
     subsection (e).
       ``(g) Funding.--From funds appropriated to carry out this 
     part for fiscal years 2003 through 2007, the Corporation 
     shall reserve not less than $12,000,000 for each fiscal year 
     to carry out this section.''.

     SEC. 1202. HIGHER EDUCATION PROVISIONS.

       Section 119 (42 U.S.C. 12561) is amended--
       (1) by striking subsection (c) and inserting the following:
       ``(c) Federal, State, and Local Contributions.--
       ``(1) Federal share.--

[[Page 15011]]

       ``(A) In general.--The Federal share of the cost described 
     in subsection (b) may not exceed 50 percent.
       ``(B) Non-federal contribution.--In providing for the 
     remaining share of the cost, each recipient of a grant or 
     contract under this part--
       ``(i) shall provide for such share through a payment in 
     cash or in kind, fairly evaluated, including facilities, 
     equipment, or services; and
       ``(ii) may provide for such share through State sources or 
     local sources.
       ``(2) Waiver.--The Chief Executive Officer may waive the 
     requirements of paragraph (1) in whole or in part with 
     respect to any such program for 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.''; and
       (2) by striking subsections (e) through (g) and inserting 
     the following:
       ``(e) Federal Work-Study.--To be eligible for assistance 
     under this part, an institution of higher education shall 
     demonstrate that the institution meets the minimum 
     requirements under section 443(b)(2)(B) of the Higher 
     Education Act of 1965 (42 U.S.C. 2753(b)(2)(B)) relating to 
     the participation in community service activities of students 
     participating in work-study programs, or has received a 
     waiver of those requirements from the Secretary of Education.
       ``(f) Priority.--In making grants and entering into 
     contracts under subsection (b), the Corporation--
       ``(1) shall give priority to an applicant that submits an 
     application containing a proposal that--
       ``(A) demonstrates the commitment of the institution of 
     higher education involved, other than by demonstrating the 
     commitment of the students, to supporting the community 
     service projects carried out through the program;
       ``(B) specifies the manner in which the institution will 
     promote faculty, administration, and staff participation in 
     the community service projects;
       ``(C) specifies 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) describes 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) demonstrates community involvement in the development 
     of the proposal;
       ``(F) describes research designed to identify best 
     practices and other methods to improve service-learning;
       ``(G) specifies that the institution will use the 
     assistance made available through such a grant or contract to 
     strengthen the service infrastructure in institutions of 
     higher education; or
       ``(H) with respect to a project involving delivery of 
     services, specifies a project that involves leadership 
     development of school-age youth;
       ``(2) shall give priority to an institution or partnership 
     that can demonstrate a commitment to community service 
     through measures such as--
       ``(A) carrying out ongoing community service projects 
     involving students or facility;
       ``(B) exceeding the requirements of section 443(b)(2)(B) of 
     the Higher Education Act of 1965 (20 U.S.C. 2753(b)(2)(B)) 
     relating to the percentage of certain work-study funds used 
     for community service; or
       ``(C) carrying out integrated service-learning programs or 
     training teachers and community leaders in service-learning; 
     and
       ``(3) shall, to the extent practicable, give special 
     consideration to applicants who are historically Black 
     colleges or universities, Hispanic-serving institutions, and 
     tribally controlled colleges or universities.
       ``(g) Definitions.--In this part:
       ``(1) Hispanic-serving institution.--The term `Hispanic-
     serving institution' has the meaning given the term in 
     section 502(a) of the Higher Education Act of 1965 (20 U.S.C. 
     1101a(a)).
       ``(2) Historically black college or university.--The term 
     `historically Black college or university' means a part B 
     institution, as defined in section 322 of the Higher 
     Education Act of 1965 (20 U.S.C. 1061).
       ``(3) Student.--Notwithstanding section 101, the term 
     `student' means an individual who is enrolled in an 
     institution of higher education on a full- or part-time 
     basis.
       ``(4) Tribally controlled college or university.--The term 
     `tribally controlled college or university' has the meaning 
     given the term in section 2 of the Tribally Controlled 
     College or University Assistance Act of 1978 (25 U.S.C. 
     1801).''.

     SEC. 1203. COMMUNITY-BASED PROGRAMS, TRAINING, AND OTHER 
                   INITIATIVES.

       Subtitle B of title I (42 U.S.C. 12521 et seq.) is amended 
     by adding at the end the following:

 ``PART III--COMMUNITY-BASED PROGRAMS, TRAINING, AND OTHER INITIATIVES

     ``SEC. 120. COMMUNITY-BASED PROGRAMS, TRAINING, AND OTHER 
                   INITIATIVES.

       ``(a) In General.--From the funds appropriated to carry out 
     this part for a fiscal year, the Corporation may make grants 
     to, or enter into contracts or cooperative agreements with, 
     eligible entities.
       ``(b) Eligible Entities.--To be eligible to receive 
     assistance under this part, an entity shall be--
       ``(1) a public or private nonprofit organization, a State 
     educational agency, a State Commission, or an institution of 
     higher education; or
       ``(2) a consortium of entities described in paragraph (1).
       ``(c) Authorized Activities.--An entity that receives 
     assistance under this part may use the assistance to--
       ``(1) conduct community-based programs that provide for 
     meaningful human, educational, environmental, or public 
     safety service by school-age youth;
       ``(2) provide training or technical assistance to support 
     service-learning;
       ``(3) involve students in emergency preparedness and 
     homeland security activities;
       ``(4) promote the recognition of students who perform 
     outstanding community service and schools that have 
     implemented outstanding service-learning programs; and
       ``(5) carry out demonstration programs, research, and 
     evaluation related to service-learning.
       ``(d) Limitation on Federal Share of Community-Based 
     Activity Costs.--
       ``(1) Federal share.--
       ``(A) In general.--Except as provided in paragraph (3), the 
     Federal share of the cost of carrying out an activity for 
     which a grant is made, or a contract or cooperative agreement 
     is entered into, under this part may not exceed 50 percent of 
     the total cost of carrying out the program.
       ``(B) Non-federal contribution.--In providing for the 
     remaining share of the cost of carrying out such an activity, 
     each recipient of assistance under this part--
       ``(i) shall provide for such share through a payment in 
     cash or in kind, fairly evaluated, including facilities, 
     equipment, or services; and
       ``(ii) may provide for such share through State sources or 
     local sources.
       ``(2) Waiver.--The Chief Executive Officer may waive the 
     requirements of paragraph (1) in whole or in part with 
     respect to any such program for 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.
       ``(3) Exemption.--The requirements of paragraph (1) shall 
     not apply to an entity that receives a grant or enters into a 
     contract or cooperative agreement to provide training or 
     technical assistance, promote recognition, or carry out 
     demonstration programs, research, or evaluation under this 
     part.''.

     SEC. 1204. SERVICE-LEARNING CLEARINGHOUSE.

       Subtitle B of title I (42 U.S.C. 12521 et seq.), as amended 
     by section 1203, is further amended by adding at the end the 
     following:

                        ``PART IV--CLEARINGHOUSE

     ``SEC. 120A. SERVICE-LEARNING CLEARINGHOUSE.

       ``(a) In General.--The Corporation shall provide financial 
     assistance, from funds appropriated under section 501(a)(2) 
     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

[[Page 15012]]

       ``(B) coordinate the activities of the clearinghouse 
     established in accordance with subsection (a) 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.''.

               Subtitle C--National Service Trust Program

     SEC. 1301. PROHIBITION ON GRANTS TO FEDERAL AGENCIES; LIMITS 
                   ON CORPORATION COSTS.

       Section 121 (42 U.S.C. 12571) is amended--
       (1) in subsection (b)--
       (A) in the subsection heading, by inserting ``Restrictions 
     on'' before ``Agreements With Federal Agencies'';
       (B) in paragraph (1)--
       (i) in the first sentence, by striking ``by the agency.'' 
     and inserting ``by the agency, including programs of the 
     Public Lands Corps and Urban Youth Corps as described in 
     section 122(a)(2).''; and
       (ii) by striking the second sentence;
       (C) by striking paragraph (2) and inserting the following:
       ``(2) Prohibition on grants.--The Corporation may not 
     provide a grant under this section to a Federal agency.''; 
     and
       (D) in paragraph (3)--
       (i) by striking ``receiving assistance under this 
     subsection'' and inserting ``operating a national service 
     program under such a contract or agreement''; and
       (ii) by striking ``using such assistance'' and inserting 
     ``under the contract or agreement'';
       (2) in subsection (c), in the matter preceding paragraph 
     (1), by striking ``assistance under subsections (a) and (b)'' 
     and inserting ``assistance under subsection (a)''; and
       (3) in subsection (d)--
       (A) in paragraph (1), by striking ``or (b)''; and
       (B) in paragraph (2)(A), by striking ``or (b)''.

     SEC. 1302. E-CORPS AND TECHNICAL AMENDMENTS TO TYPES OF 
                   PROGRAMS.

       Section 122 (42 U.S.C. 12572) is amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1), by striking 
     ``and each Federal agency receiving assistance under section 
     121(b)'';
       (B) in paragraph (9), by striking ``between the ages of 16 
     and 24 years of age'' and inserting ``age 16 through 25'';
       (C) by redesignating paragraph (15) as paragraph (19); and
       (D) by inserting after paragraph (14) the following:
       ``(15) An E-Corps program that involves participants who 
     provide service in a community by developing and assisting in 
     carrying out technology programs.
       ``(16) A program that engages citizens in public safety, 
     public health, homeland security, and disaster relief and 
     preparedness activities.
       ``(17) A program (including an initiative or a partnership 
     program) that seeks to expand the number of young people with 
     mentors, either through provision of direct mentoring 
     services or through activities that build the capacity of 
     mentoring organizations to serve more young people.
       ``(18) A community service program that--
       ``(A) enables secondary school students to carry out 
     service activities in their communities during the summer or 
     throughout the year;
       ``(B) may be a residential program;
       ``(C) is administered by a political subdivision of a 
     State, a secondary school, an institution of higher 
     education, a community-based agency, or a faith-based 
     organization; and
       ``(D) is carried out in a low-income rural or urban 
     area.'';
       (2) in subsection (c)(1)--
       (A) in subparagraph (A)--
       (i) by striking ``after reviewing the strategic plan 
     approved under section 192A(g)(1)'' and inserting ``after 
     reviewing the strategic plan approved under section 
     192A(g)(2)''; and
       (ii) by striking ``subsection (b) or (d) of''; and
       (B) in subparagraph (B), by striking ``section 129(a)(1)'' 
     and inserting ``section 129(f)''; and
       (3) by adding at the end the following:
       ``(d) High School Degree Required for Tutors.--The 
     Corporation shall require that recipients of assistance under 
     this subtitle or subtitle A of title I of the Domestic 
     Volunteer Service Act of 1973 (42 U.S.C. 4951 et seq.) to 
     operate tutoring programs involving elementary school or 
     secondary school students shall certify that each individual 
     serving in an approved national service position as a tutor 
     in such a program has obtained a high school diploma or its 
     recognized equivalent, or is enrolled in a program leading to 
     obtaining a high school diploma.
       ``(e) Literacy Programs.--
       ``(1) Programs.--Literacy programs that receive assistance 
     under this subtitle or subtitle A of title I of the Domestic 
     Volunteer Service Act of 1973 shall be based on 
     scientifically based reading research and provide instruction 
     based on the essential components of reading instruction as 
     defined in section 1208 of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6368).
       ``(2) Training required for reading tutors.--The 
     Corporation shall require that recipients of assistance under 
     this subtitle or subtitle A of title I of the Domestic 
     Volunteer Service Act of 1973 to operate tutoring in reading 
     programs shall provide training to participants serving in 
     approved national service positions as tutors in such 
     programs that incorporates the recommendations of the 
     National Reading Panel.
       ``(f) Citizenship Training.--The Corporation shall 
     establish requirements, after consultation with State 
     Commissions, for recipients of assistance under this subtitle 
     or subtitle A of title I of the Domestic Volunteer Service 
     Act of 1973 that--
       ``(1) relate to the promotion of citizenship and civic 
     engagement among individuals serving in approved national 
     service positions; and
       ``(2) are consistent with the principles on which 
     citizenship programs administered by the Immigration and 
     Naturalization Service are based.
       ``(g) Oath.--Any oath given under this subtitle shall be 
     consistent with the principles of the Federal oath of office 
     as provided in section 3331 of title 5, United States Code.
       ``(h) Consultation.--The Corporation shall consult with the 
     Secretary of Homeland Security to determine ways of promoting 
     homeland security, including providing disaster relief and 
     preparedness activities, and promoting public health and 
     public safety, through national service programs carried out 
     under this subtitle.''.

     SEC. 1303. TYPES OF POSITIONS.

       Section 123 (42 U.S.C. 12573) is amended--
       (1) in paragraph (1), by striking ``subsection (a) or (b) 
     of section 121'' and inserting ``section 121(a)'';
       (2) in paragraph (2)(A), by striking ``an institution of 
     higher education, or a Federal agency'' and inserting ``or an 
     institution of higher education''; and
       (3) in paragraph (5), by inserting ``National'' before 
     ``Civilian Community Corps''.

     SEC. 1304. TRAINING AND TECHNICAL ASSISTANCE.

       Section 125 (42 U.S.C. 12575) is amended by adding at the 
     end the following:
       ``(c) Underserved Areas and Populations.--In complying with 
     the requirements of this section, the Corporation shall 
     ensure that the training and technical assistance needs of 
     programs that focus on and provide service opportunities for 
     underserved rural and urban areas and populations are 
     addressed.''.

     SEC. 1305. ASSISTANCE TO STATE COMMISSIONS; CHALLENGE GRANTS.

       Section 126 (42 U.S.C. 12576) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``between $125,000 and 
     $750,000'' and inserting ``not less than $200,000 and not 
     more than $1,000,000''; and
       (B) by striking paragraph (2) and inserting the following:
       ``(2) Matching requirement.--In making a grant to a State 
     under this subsection, the Corporation shall require the 
     State to provide matching funds in the following amounts:
       ``(A) First $100,000.--For the first $100,000 of the grant 
     amount provided by the Corporation, the State shall not be 
     required to provide matching funds.
       ``(B) Amounts greater than $100,000.--If the grant amount 
     provided by the Corporation is more than $100,000, for the 
     portion of the grant amount that is more than $100,000 and 
     not more than $200,000, the State shall provide $1 from non-
     Federal sources for every $2 provided by the Corporation 
     through the grant.
       ``(C) Amounts greater than $200,000.--If the grant amount 
     provided by the Corporation is more than $200,000, for the 
     portion of the grant amount that is more than $200,000, the 
     State shall provide $1 from non-Federal sources for every $1 
     provided by the Corporation through the grant.
       ``(D) Waiver or alteration of requirements.--The 
     Corporation may waive or alter the matching fund requirements 
     described in subparagraphs (B) and (C) for a State if the 
     State is under serious budget constraints.''; and
       (2) in subsection (c)--
       (A) in paragraph (1), by striking ``to national service 
     programs that receive assistance under section 121'' and 
     inserting ``to recipients of assistance for programs 
     supported under section 121 that expand service and 
     volunteering by increasing and strengthening the capacity of 
     community-based agencies (including increasing and 
     strengthening that capacity through the use of regional 
     organizations that facilitate the involvement of small 
     community groups) or by promoting high-quality teaching 
     programs serving low-income students''; and
       (B) by striking paragraph (3) and inserting the following:
       ``(3) Amount of assistance.--
       ``(A) Matching funds.--For a challenge grant made under 
     this subsection, a recipient described in paragraph (1) shall 
     provide (in addition to any amounts required to be provided 
     by the recipient to satisfy other matching funds requirements 
     under this subtitle)--

[[Page 15013]]

       ``(i) for an initial 3-year grant period, not less than $1 
     in cash from private sources for every $1 of Federal funds 
     provided under the grant; and
       ``(ii) for a subsequent grant period, not less than $2 in 
     cash from private sources for every $1 of Federal funds 
     provided under the grant.
       ``(B) Application.--The Corporation may permit the use of 
     local or State funds as matching funds under subparagraph (A) 
     if the Corporation determines that such use would be 
     equitable due to a lack of available funds from private 
     sources at the local level.
       ``(C) Limit on amount.--The Corporation shall establish a 
     ceiling on the amount of assistance that may be provided to a 
     recipient for a challenge grant made under this 
     subsection.''.

     SEC. 1306. ALLOCATION OF ASSISTANCE TO STATES AND OTHER 
                   ELIGIBLE ENTITIES.

       Section 129 (42 U.S.C. 12581) is amended to read as 
     follows:

     ``SEC. 129. PROVISION OF ASSISTANCE AND APPROVED NATIONAL 
                   SERVICE POSITIONS.

       ``(a) AmeriCorps Positions.--The Corporation, after 
     consultation with members of the Committee on Appropriations 
     of the House of Representatives and the Committee on 
     Appropriations of the Senate shall increase, by 25,000 each 
     year, the number of approved national service positions, with 
     priority given to increasing the number of such positions for 
     individuals performing full-time national service. Of the 
     approved national service positions provided for a fiscal 
     year, not more than 30 percent may be positions for which the 
     participants are eligible to receive national service 
     educational awards and no other benefits for service in the 
     positions.
       ``(b) One Percent for Allotments for Certain Territories.--
       ``(1) In general.--Of the funds allocated by the 
     Corporation for provision of assistance under section 121(a) 
     for a fiscal year, the Corporation shall reserve 1 percent 
     for grants to the United States Virgin Islands, Guam, 
     American Samoa, and the Commonwealth of the Northern Mariana 
     Islands. The Corporation may make such a grant from an 
     allotment made under paragraph (2).
       ``(2) Allotments.--The Corporation shall allot to each 
     territory described in paragraph (1) for a fiscal year an 
     amount that bears the same ratio to 1 percent of the 
     allocated funds for that fiscal year as the population of the 
     territory bears to the total population of such territories.
       ``(c) Not Less Than One Percent for Competitive Grants for 
     Indian Tribes.--Of the funds allocated by the Corporation for 
     provision of assistance under section 121(a) for a fiscal 
     year, the Corporation shall reserve not less than 1 percent 
     for grants to Indian tribes, awarded by the Corporation on a 
     competitive basis in accordance with their respective needs.
       ``(d) Not Less Than 20 Percent for National Grants.--Of the 
     funds allocated by the Corporation for provision of 
     assistance under section 121(a) for a fiscal year, the 
     Corporation shall reserve not less than 20 percent for grants 
     to nonprofit organizations to operate a program in 2 or more 
     States.
       ``(e) Not More Than 33 Percent for State Competitive 
     Grants.--Of the funds allocated by the Corporation for 
     provision of assistance under section 121(a) for a fiscal 
     year, the Corporation shall reserve not more than 33 percent 
     for grants to States, awarded by the Corporation on a 
     competitive basis for innovative activities.
       ``(f) 45 Percent for Allotments for Certain States.--
       ``(1) Grants.--Using the funds allocated by the Corporation 
     for provision of assistance under section 121(a) for a fiscal 
     year, the Corporation shall make a grant, from an allotment 
     made under paragraph (2), to each of the several States, the 
     District of Columbia, and the Commonwealth of Puerto Rico.
       ``(2) Allotments.--The Corporation shall allot to each such 
     State for a fiscal year an amount that bears the same ratio 
     to 45 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, subject to paragraph (3).
       ``(3) Minimum amount.--Notwithstanding paragraph (2), the 
     minimum grant made available to each eligible State under 
     paragraph (1) for each fiscal year shall be not less than 
     $500,000.
       ``(g) Adjustments.--
       ``(1) Reservation of funds.--Notwithstanding subsections 
     (e) and (f), the Corporation shall ensure that the 
     Corporation reserves an aggregate amount of funds for 
     allotments to States under subsection (f) for a fiscal year 
     that is not less than the total amount of funds provided to 
     all States described in subsection (f) for allotments under 
     this subtitle for fiscal year 2002.
       ``(2) Formula grants.--In order to meet the requirements of 
     paragraph (1) during a fiscal year for which the aggregate 
     amount of funds for allotments to States under subsection (f) 
     is less than the total amount of funds provided to all States 
     described in subsection (f) for allotments under this 
     subtitle for fiscal year 2002, the Corporation shall reduce 
     the amount available for State competitive grants under 
     subsection (e).
       ``(h) Effect of Failure To Apply.--If a State (including a 
     territory described in subsection (b)) fails to apply for, or 
     fails to give notice to the Corporation of its intent to 
     apply for an allotment under subsection (b) or (f), the 
     Corporation may use the amount that would have been allotted 
     under subsection (b) or (f) to the State to--
       ``(1) make grants (including providing approved national 
     service positions in connection with such grants) under 
     section 121 to other eligible entities that propose to carry 
     out national service programs in the State; and
       ``(2) make grants under section 121(a) from allotments made 
     in accordance with subsections (b) and (f)(2) to other States 
     with approved applications submitted under section 130.
       ``(i) Application Required.--The Corporation may provide 
     assistance and approved national service positions to a 
     recipient under section 121 only pursuant to an application 
     submitted by a State or other applicant under section 130.
       ``(j) 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 number of 
     national service educational awards under subtitle D for all 
     eligible participants, the Corporation is authorized to make 
     necessary and reasonable adjustments to program rules.
       ``(k) Sponsorship of Approved National Service Positions.--
       ``(1) Sponsorship authorized.--The Corporation may enter 
     into an agreement with a person or entity who offers to 
     sponsor national service positions and be responsible for 
     supplying the funds necessary to provide national service 
     educational awards for the positions. The distribution of 
     those approved national service positions shall be made 
     pursuant to the agreement, and the creation of those 
     positions shall not be taken into consideration in 
     determining the number of approved national service positions 
     to be available for distribution under section 121.
       ``(2) Deposit of contribution.--Funds provided pursuant to 
     an agreement under paragraph (1) shall be deposited in the 
     National Service Trust established in section 145 until such 
     time as the funds are needed.
       ``(l) Reservation of Funds for Special Assistance.--From 
     amounts appropriated for a fiscal year pursuant to section 
     501(a)(2) and subject to the limitations 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.
       ``(m) Reservation of Funds To Increase the Participation of 
     Individuals With Disabilities.--From amounts appropriated for 
     a fiscal year pursuant to section 501(a)(2) and subject to 
     the limitations in section 501(a)(2)(B), the Corporation 
     shall reserve a portion that is not less than 1 percent of 
     such amounts (except that the portion reserved may not exceed 
     $10,000,000), for the purpose of making grants under section 
     121(a) to public or private nonprofit organizations to 
     increase the participation of individuals with disabilities 
     in national service and for demonstration activities in 
     furtherance of this purpose.''.

     SEC. 1307. ADDITIONAL AUTHORITY.

       Part II of subtitle C of title I (42 U.S.C. 12581 et seq.) 
     is amended by inserting after section 129 the following:

     ``SEC. 129A. EDUCATION AWARDS PROGRAM.

       ``(a) In General.--From amounts appropriated for a fiscal 
     year pursuant to section 501(a)(2) and consistent with the 
     restriction in subsection (b), the Corporation may provide 
     operational assistance to programs that receive approved 
     national service positions but do not otherwise receive funds 
     under section 121(a).
       ``(b) Limit on Corporation Grant Funds.--Operational 
     assistance provided under this section may not exceed $400 
     per individual enrolled in an approved national service 
     position.
       ``(c) Inapplicable Provisions.--The following provisions 
     shall not apply to programs that receive operational 
     assistance under this section:
       ``(1) The limitation on administrative costs under section 
     121(d).
       ``(2) The matching funds requirements under sections 121(e) 
     and 140.
       ``(3) The living allowance and other benefits under 
     sections 131(e) and section 140 (other than individualized 
     support services for disabled members under section 
     140(f)).''.

     SEC. 1308. STATE SELECTION OF PROGRAMS.

       Section 130 (42 U.S.C. 12582) is amended--
       (1) in subsection (a), by striking ``the national service 
     programs to be carried out using the assistance'' and all 
     that follows through ``or Federal agency'' and inserting 
     ``national service programs under this subtitle, an 
     applicant'';
       (2) in subsection (b)(11), by striking ``receive'' and 
     inserting ``be eligible to receive'';
       (3) in subsection (c)(1), by striking ``jobs or'';

[[Page 15014]]

       (4) in subparagraphs (A) and (B) of subsection (d)(1), by 
     striking ``subsection (a) or (b) of section 121'' and 
     inserting ``section 121(a) (other than operational assistance 
     described in section 129A)'';
       (5) in subsection (e)--
       (A) by striking paragraph (2); and
       (B) by redesignating paragraph (3) as paragraph (2);
       (6) in subsection (f)--
       (A) in paragraph (1), by striking ``a program applicant'' 
     and inserting ``an applicant'';
       (B) in paragraph (2)--
       (i) in the paragraph heading, by striking ``Program 
     applicant'' and inserting ``Applicant''; and
       (ii) in the matter preceding subparagraph (A), by striking 
     ``program applicant'' and inserting ``applicant''; and
       (C) by striking ``institution of higher education, or 
     Federal agency'' and inserting ``or institution of higher 
     education'' each place it appears; and
       (7) in subsection (g), by striking the period and inserting 
     ``or is already receiving financial assistance from the 
     Corporation.''.

     SEC. 1309. CONSIDERATION OF APPLICATIONS.

       Section 133 (42 U.S.C. 12585) is amended--
       (1) in subsection (b)(2)(B), by striking ``jobs or'';
       (2) in subsection (c)--
       (A) by redesignating paragraph (8) as paragraph (9); and
       (B) by inserting after paragraph (7) the following:
       ``(8) If applicable, as determined by the Corporation, the 
     extent to which the program generates the involvement of 
     volunteers.'';
       (3) in subsection (d)--
       (A) in paragraph (1), by striking ``to be conducted in 
     those urban and rural areas in a State with the highest rates 
     of poverty'' and inserting ``in urban and rural areas with 
     the highest rates of poverty'';
       (B) in paragraph (2)--
       (i) in the first sentence, by striking ``section 
     129(d)(2)'' and inserting ``section 129(d)'';
       (ii) by striking subparagraphs (A) and (G);
       (iii) by redesignating subparagraphs (B) through (F) as 
     subparagraphs (A) through (E), respectively;
       (iv) in subparagraph (D) (as redesignated by clause (iii)), 
     by adding ``and'' at the end; and
       (v) in subparagraph (E) (as redesignated by clause (iii)), 
     by striking ``; and'' and inserting a period; and
       (C) in paragraph (3), by striking ``section 129(d)(2)'' and 
     inserting ``section 129(d)'';
       (D) by striking paragraph (4);
       (4) in subsection (e), in the matter preceding paragraph 
     (1), by striking ``subsections (a) and (d)(1) of section 
     129'' and inserting ``subsections (b), (c), (e), and (f) of 
     section 129''; and
       (5) in subsection (f)--
       (A) in paragraph (1), by striking ``section 129(a)(1)'' and 
     inserting ``section 129(f)''; and
       (B) in paragraph (3), by striking ``section 129(a)'' and 
     inserting ``section 129(f)''.

     SEC. 1310. DESCRIPTION OF PARTICIPANTS.

       Section 137 (42 U.S.C. 12591) is amended--
       (1) in subsection (a)--
       (A) by striking paragraph (3);
       (B) in paragraph (4), by inserting ``or will serve in an 
     approved national service position with a program described 
     in section 122(a)(18)'' before the semicolon; and
       (C) by redesignating paragraphs (4), (5), and (6) as 
     paragraphs (3), (4), and (5), respectively;
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``paragraph (4)'' and 
     inserting ``paragraph (3)''; and
       (B) in paragraph (2), by striking ``between the ages of 16 
     and 25'' and inserting ``a 16-year-old out-of-school youth or 
     an individual between the ages of 17 and 25''; and
       (3) by striking subsection (c) and inserting the following:
       ``(c) Self-Certification and Waiver.--The Corporation may--
       ``(1) consider an individual to have satisfied the 
     requirement of subsection (a)(4) if the individual informs 
     the Corporation that such requirement has been satisfied; or
       ``(2) waive the requirement of subsection (a)(4) 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 
     recognized equivalent.''.

     SEC. 1311. REFERENCE TO FEDERAL AGENCY.

       Section 138(a) (42 U.S.C. 12592(a)) is amended by striking 
     ``Federal agency,''.

     SEC. 1312. TERMS OF SERVICE.

       Section 139 (42 U.S.C. 12593) is amended--
       (1) in subsection (a), by striking ``full- or part-time'';
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``not less than 9 months 
     and'';
       (B) in paragraph (2), by striking ``during a period of--'' 
     and all that follows and inserting ``during a period of not 
     more than 2 years.''; and
       (C) by adding at the end the following:
       ``(4) Secondary school community service.--Notwithstanding 
     paragraphs (1) through (3), an individual performing service 
     in an approved national service position in a program 
     described in section 122(a)(18) shall agree to participate in 
     the program for not less than 300 hours during a period of 
     not more than 1 year.'';
       (3) in subsection (c)--
       (A) in paragraph (1)(A), by striking ``as demonstrated by 
     the participant'' and inserting ``as determined by the 
     recipient or program, if the participant has otherwise 
     performed satisfactorily and has completed at least 15 
     percent of the original term of service'';
       (B) in paragraph (2)--
       (i) in subparagraph (A), by striking ``provide to the 
     participant that portion of the national service educational 
     award'' and inserting ``certify the participant's eligibility 
     for that portion of the national service educational award''; 
     and
       (ii) in subparagraph (B)--

       (I) by striking ``to allow return to the program with which 
     the individual was serving in order to''; and
       (II) by striking ``obtain'' and inserting ``become eligible 
     for''; and

       (C) in paragraph (3), by striking ``not receive'' and 
     inserting ``not be eligible to receive''.

     SEC. 1313. ADJUSTMENTS TO LIVING ALLOWANCE.

       Section 140 (42 U.S.C. 12594) is amended--
       (1) in subsection (a), by adding at the end the following:
       ``(7) Other federal funds.--
       ``(A) Recipient report.--A recipient of assistance under 
     section 121 that is subject to the limitation on the Federal 
     share of the annual living allowance in paragraph (2) shall 
     report to the Corporation the amount and source of any 
     Federal funds other than those provided by the Corporation 
     used to pay the annual living allowance under paragraph (1).
       ``(B) Corporation report.--The Corporation shall report to 
     Congress on an annual basis information regarding each 
     recipient that uses Federal funds other than those provided 
     by the Corporation to pay the annual living allowance under 
     paragraph (1), including the amounts and sources of the other 
     Federal funds.''; and
       (2) by striking subsection (h) and inserting the following:
       ``(h) Stipends for Secondary School Community Service 
     Program.--A recipient of assistance under section 121 to 
     carry out a program described in section 122(a)(18) may 
     provide a stipend, transportation services, and educational 
     support services to each participant in the program, in lieu 
     of benefits described in subsections (a), (d), and (e).''.

 Subtitle D--National Service Trust and Provision of National Service 
                           Educational Awards

     SEC. 1401. AVAILABILITY OF FUNDS IN THE NATIONAL SERVICE 
                   TRUST.

       Section 145 (42 U.S.C. 12601) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by striking ``and'';
       (ii) in subparagraph (B), by adding ``and'' at the end; and
       (iii) by adding at the end the following:
       ``(C) service-based scholarships for secondary school 
     students, as described in section 149A;''; and
       (B) in paragraph (2), by striking ``pursuant to section 
     196(a)(2)'' and inserting ``pursuant to section 196(a)(2), if 
     the terms of such donations direct that the amounts be 
     deposited in the National Service Trust'';
       (2) in subsection (c), by striking ``for payments of 
     national service educational awards in accordance with 
     section 148.'' and inserting ``to pay for--
       ``(1) national service educational awards in accordance 
     with section 148;
       ``(2) interest in accordance with section 148(e); and
       ``(3) the Federal share of service-based scholarships to 
     secondary school students in accordance with section 149A.''; 
     and
       (3) in subsection (d)--
       (A) in paragraph (3)(B), by striking ``and'';
       (B) in paragraph (4)--
       (i) by striking ``awards to'' and inserting ``awards for''; 
     and
       (ii) by striking the period and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(5) identify the number of students who have received 
     service-based scholarships to secondary school students in 
     accordance with section 149A, and specify the amount of 
     Federal and matching funds expended on an annual basis on the 
     service-based scholarships.''.

     SEC. 1402. INDIVIDUALS ELIGIBLE TO RECEIVE A NATIONAL SERVICE 
                   EDUCATIONAL AWARD FROM THE TRUST.

       Section 146 (42 U.S.C. 12602) is amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1)--
       (i) by striking ``receive'' and inserting ``be eligible to 
     receive''; and
       (ii) by striking ``if the individual'' and inserting ``if 
     the organization responsible for the individual's supervision 
     for a national service program certifies that the 
     individual'';
       (B) by striking paragraphs (1), (2), and (3) and inserting 
     the following:
       ``(1) met the applicable eligibility requirements for the 
     approved national service position in which the individual 
     served;
       ``(2)(A) successfully completed the required term of 
     service described in subsection (b) in the approved national 
     service position; or

[[Page 15015]]

       ``(B)(i) satisfactorily performed prior to being granted a 
     release for compelling personal circumstances under section 
     139(c); and
       ``(ii) completed at least 15 percent of the original 
     required term of service described in subsection (b); and''; 
     and
       (C) by redesignating paragraph (4) as paragraph (3);
       (2) in subsection (b), by striking ``full- or part-time'';
       (3) by striking subsection (c) and inserting the following:
       ``(c) Limitation on Receipt of Educational Awards.--An 
     individual may be eligible to receive, through national 
     service educational awards made under this subtitle, a total 
     amount that is not more than the aggregate value of 2 
     national service educational awards made for full-time 
     service.'';
       (4) in subsection (d)--
       (A) in paragraph (1)--
       (i) by inserting ``(or a family member of the individual 
     designated in accordance with subsection (g))'' after ``under 
     this section''; and
       (ii) by striking the period and inserting ``(or, in the 
     case of an individual who served in a program described in 
     section 122(a)(18), the end of the 5-year period beginning on 
     that date).''; and
       (B) in paragraph (2)--
       (i) in the matter preceding subparagraph (A)--

       (I) by inserting ``(or a family member of the individual 
     designated in accordance with subsection (g))'' after ``an 
     individual''; or
       (II) by striking ``that the individual--'' and inserting 
     ``that--'';

       (ii) in subparagraph (A)--

       (I) by inserting ``the individual (or family member)'' 
     after ``(A)''; and
       (II) by inserting ``(or 5-year period)'' before the 
     semicolon; and

       (iii) in subparagraph (C), by inserting ``the individual'' 
     after ``(B)''; and
       (5) by adding at the end the following:
       ``(g) Transfers.--
       ``(1) Definition.--In this subsection, the term `family 
     member', used with respect to an individual, means a spouse, 
     son, daughter, or grandchild of the individual.
       ``(2) Ability to transfer.--An individual who is eligible 
     to receive a national service educational award in accordance 
     with this section may designate a family member of the 
     individual to use the award in accordance with section 148. 
     The designated person may submit an application under section 
     148 for disbursement of the award. On verifying the 
     eligibility of the individual under this section, and 
     determining that the designated person is a family member of 
     the individual and is otherwise eligible to receive the award 
     under this section, the Corporation shall disburse the award 
     on behalf of the designated person in accordance with section 
     148.''.

     SEC. 1403. DETERMINATION OF THE AMOUNT OF NATIONAL SERVICE 
                   EDUCATIONAL AWARDS.

       Section 147(a) is amended--
       (1) in subsections (a) and (b), by striking ``shall 
     receive'' and inserting ``shall be eligible to receive'';
       (2) in subsection (a), by striking ``, for each of not more 
     than 2 of such terms of service'' and all that follows and 
     inserting ``of $5,250.'';
       (3) in subsection (c)--
       (A) by striking ``full-time or part-time''; and
       (B) by striking ``provide the individual with'' and 
     inserting ``provide for the individual''; and
       (4) by adding at the end the following:
       ``(d) Amount for Secondary School Community Service.--
     Notwithstanding subsections (a), (b), and (c), an individual 
     described in section 146(a) who successfully completes a 
     required term of service described in section 139(b)(4) in an 
     approved national service position in a program described in 
     section 122(a)(18) shall receive a national service 
     educational award having a value, for each of not more than 4 
     of such terms of service, equal to $1000.''.

     SEC. 1404. DISBURSEMENT OF NATIONAL SERVICE EDUCATIONAL 
                   AWARDS.

       Section 148 (42 U.S.C. 12604) is amended--
       (1) in subsection (a)--
       (A) in paragraph (3), by striking ``and'';
       (B) by redesignating paragraph (4) as paragraph (5); and
       (C) by inserting after paragraph (3) the following:
       ``(4) to pay expenses incurred in enrolling in an 
     educational institution or training establishment that meets 
     the requirements of chapter 36 of title 38, United States 
     Code; and'';
       (2) in subsection (b)--
       (A) in paragraph (2), by striking ``has earned'' and 
     inserting ``is eligible to receive''; and
       (B) in paragraph (7)--
       (i) in subparagraph (A), by striking ``, other than a loan 
     to a parent of a student pursuant to section 428B of such Act 
     (20 U.S.C. 1078-2); and'' and inserting a semicolon;
       (ii) in subparagraph (B), by striking the period and 
     inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(C) any loan (other than a loan described in subparagraph 
     (A) or (B)) determined by an institution of higher education 
     to be necessary to cover a student's educational expenses and 
     made, insured, or guaranteed--
       ``(i) by an eligible lender, as defined in section 435 of 
     the Higher Education Act of 1965 (20 U.S.C. 1085);
       ``(ii) under the direct student loan program under part D 
     of title IV of such Act (20 U.S.C. 1087a et seq.); or
       ``(iii) by a State agency.'';
       (3) in subsection (e), by striking ``subsection (b)(6)'' 
     and inserting ``subsection (b)(7)'';
       (4) in subsection (f), by striking ``Director'' and 
     inserting ``Chief Executive Officer''; and
       (5) by adding at the end the following:
       ``(h) Rule.--References in this section to an individual 
     (other than the third and fourth such references in 
     subsection (e)) shall be considered to include references to 
     a family member of the individual designated under section 
     146(g).''.

     SEC. 1405. ADDITIONAL USES OF NATIONAL SERVICE TRUST AMOUNTS.

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

     ``SEC. 149. USE BY PARTICIPANTS WITH DISABILITIES.

       ``Notwithstanding any other provision of this subtitle, the 
     Corporation may disburse from the National Service Trust some 
     or all of a national service educational award directly to an 
     individual (or a family member of the individual designated 
     in accordance with section 146(g)) who provides a 
     certification that--
       ``(1) the individual (or family member) is--
       ``(A) entitled to disability insurance benefits under 
     section 223 of the Social Security Act (42 U.S.C. 423);
       ``(B) entitled to monthly insurance benefits under section 
     202 of the Social Security Act (42 U.S.C. 402) based on such 
     individual's (or family member's) disability (as defined in 
     section 223(d) of such Act (42 U.S.C. 423(d)); or
       ``(C) eligible for supplemental security income benefits 
     under title XVI of the Social Security Act (42 U.S.C. 1381 et 
     seq.) on the basis of blindness (as described in section 
     1614(a)(2) of such Act (42 U.S.C. 1382c(a)(2)) or disability 
     (as described in section 1614(a)(3) of such Act (42 U.S.C. 
     1382c(a)(3)); and
       ``(2) the individual (or family member) will use the 
     disbursed funds to pay for education, training, or work-
     related activities designed to make the individual (or family 
     member) self-supporting.

     ``SEC. 149A. SERVICE-BASED SCHOLARSHIPS TO SECONDARY SCHOOL 
                   STUDENTS.

       ``(a) Program Authorized.--The Corporation may use amounts 
     in the National Service Trust to support a service-based 
     scholarship program to recognize secondary school juniors and 
     seniors who are engaged in outstanding community service and 
     scholarship.
       ``(b) Approved Use of Scholarships.--In supporting the 
     program, the Corporation may use the amounts to pay for not 
     more than 50 percent of the costs of a scholarship that also 
     receives local funding, to help cover an individual's 
     postsecondary education or job training costs.
       ``(c) Corporation Share.--The Corporation's share of an 
     individual's scholarship under the program may not exceed 
     $500.

             Subtitle E--National Civilian Community Corps

     SEC. 1501. PURPOSE.

       Section 151 (42 U.S.C. 12611) is amended to read as 
     follows:

     ``SEC. 151. PURPOSE.

       ``It is the purpose of this subtitle to authorize the 
     operation of, and support for, residential service programs 
     that combine the best practices of civilian service with the 
     best aspects of military service, including leadership and 
     team building, to meet national and community needs, 
     particularly concerns related to national security. The needs 
     to be met under such programs include needs related to 
     natural and other disasters, which shall be addressed through 
     activities coordinated with the Federal Emergency Management 
     Agency and other public and private organizations.''.

     SEC. 1502. NATIONAL CIVILIAN COMMUNITY CORPS.

       Subtitle E of title I (42 U.S.C. 12611 et seq.) is 
     amended--
       (1) by striking the subtitle heading and inserting the 
     following:

           ``Subtitle E--National Civilian Community Corps'';

       (2) by striking ``Civilian Community Corps'' each place it 
     appears and inserting ``National Civilian Community Corps'';
       (3) by striking ``CIVILIAN COMMUNITY CORPS'' each place it 
     appears and inserting ``NATIONAL CIVILIAN COMMUNITY CORPS''; 
     and
       (4) in section 155(b) (42 U.S.C. 12615(b)), by striking 
     ``Civilian Community Corps'' and inserting ``National 
     Civilian Community Corps''.

     SEC. 1503. PROGRAM COMPONENTS.

       Section 152 (42 U.S.C. 12612) is amended--
       (1) in the section heading, by striking ``DEMONSTRATION'';
       (2) in subsections (a) and (b), by striking 
     ``Demonstration''; and
       (3) in subsection (c), in the subsection heading, by 
     striking ``Programs'' and inserting ``Components''.

     SEC. 1504. ELIGIBLE PARTICIPANTS.

       Section 153 (42 U.S.C. 12613) is amended--

[[Page 15016]]

       (1) in subsection (a), by striking ``Demonstration'';
       (2) in subsection (b), by striking ``if the person'' and 
     all that follows and inserting ``if the person will be at 
     least age 18 by December 31 of the calendar year in which the 
     individual enrolls in the program.'';
       (3) in subsection (c), in the subsection heading, by 
     striking ``Backrounds'' and inserting ``Backgrounds''; and
       (4) by striking subsection (e).

     SEC. 1505. SUMMER NATIONAL SERVICE PROGRAM.

       Section 154(a) (42 U.S.C. 12614(a)) is amended by striking 
     ``Demonstration''.

     SEC. 1506. TEAM LEADERS.

       Section 155 (42 U.S.C. 12615) is amended--
       (1) in subsection (a), by striking ``Demonstration''; and
       (2) in subsection (b), by adding at the end the following:
       ``(4) Team leaders.--The Director may select from Corps 
     members individuals with prior supervisory or service 
     experience, to be team leaders within units in the National 
     Civilian Community Corps and to perform service that includes 
     leading and supervising teams of Corps members. Team leaders 
     shall--
       ``(A) be members of the National Civilian Community Corps; 
     and
       ``(B) be provided the rights and benefits applicable to 
     Corps members, except that the amount of the living allowance 
     provided to a team leader under section 158(b) shall be not 
     more than 10 percent greater than the amount established 
     under section 158(b).''.

     SEC. 1507. CONSULTATION WITH STATE COMMISSIONS.

       Section 157 (42 U.S.C. 12617) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1)(B), by inserting ``community-based 
     agencies and'' before ``representatives of local 
     communities''; and
       (B) in paragraph (2), by inserting ``State commissions,'' 
     before ``and persons involved in other youth service 
     programs.''; and
       (2) in subsection (c), by adding at the end the following:
       ``(3) Disaster assistance.--In selecting the projects, the 
     Director shall place appropriate emphasis on projects in 
     support of disaster relief efforts.''.

     SEC. 1508. PERMANENT CADRE.

       Section 159(a) (42 U.S.C. 12619(a)) is amended by striking 
     ``Demonstration''.

     SEC. 1509. CONTRACT AND GRANT AUTHORITY.

       Section 161(a) (42 U.S.C. 12621(a)) is amended by striking 
     ``perform any program function under this subtitle'' and 
     inserting ``carry out the National Civilian Community Corps 
     program''.

     SEC. 1510. OTHER DEPARTMENTS.

       Section 162(a)(2)(A) (42 U.S.C. 12622(a)(2)(A)) is 
     amended--
       (1) by striking ``to be recommended for appointment'' and 
     inserting ``from which individuals may be selected for 
     appointment by the Director''; and
       (2) by striking ``members and former members of the Armed 
     Forces referred to in section 151(3) who are commissioned 
     officers, noncommissioned officers, former commissioned 
     officers, or former noncommissioned officers.'' and inserting 
     ``individuals who are--
       ``(i)(I) members and former members of the Armed Forces who 
     are entitled or, except for not having attained the minimum 
     age required under section 12731(a) of title 10, United 
     States Code, would be entitled to retired or retainer pay 
     payable out of the Department of Defense Military Retirement 
     Fund under section 1463 of such title or to retired pay 
     referred to in subsection (a)(2) of such section 1463 that is 
     payable by the Secretary of Homeland Security;
       ``(II) former members of the Armed Forces who were 
     discharged from the Armed Forces or released from active duty 
     during a period of a reduction in size of the Armed Forces;
       ``(III) former members of the Armed Forces who were 
     discharged, and members of the Armed Forces who have been 
     transferred, from the Selected Reserve of the Ready Reserve 
     during a period of a reduction in size of the Armed Forces; 
     or
       ``(IV) other members of the Armed Forces not on active duty 
     and not actively participating in a reserve component of the 
     Armed Forces; and
       ``(ii) commissioned officers, noncommissioned officers, 
     former commissioned officers, or former noncommissioned 
     officers of the Armed Forces.''.

     SEC. 1511. REPEAL OF AUTHORITY FOR ADVISORY BOARD AND FUNDING 
                   LIMITATION.

       Sections 163 and 165 (42 U.S.C. 12623 and 12625) are 
     repealed.

     SEC. 1512. DEFINITIONS.

       Section 166 (42 U.S.C. 12626) is amended--
       (1) by striking paragraphs (3) and (9);
       (2) by redesignating paragraphs (2), and (4) through (8), 
     as paragraphs (4) through (9) respectively;
       (3) by inserting after paragraph (1) the following:
       ``(2) Campus.--The term `campus' means the facility or 
     central location established as the operational headquarters 
     and boarding place for particular Corps units.
       ``(3) Campus director.--The term `campus director', with 
     respect to a campus, means the head of the campus under 
     section 155(d).''; and
       (4) in paragraphs (4), (5), and (8) (as redesignated by 
     paragraph (2)), by striking ``Demonstration'' each place it 
     appears.

     SEC. 1513. TERMINOLOGY.

       Subtitle E of title I (42 U.S.C. 12611 et seq.) is 
     amended--
       (1)(A) in section 155 (42 U.S.C. 12615)--
       (i) in subsection (d)(2), in the paragraph heading, by 
     striking ``Camp superintendent'' and inserting ``Campus 
     director''; and
       (ii) in subsection (f)--
       (I) in paragraph (2)(A), by striking ``superintendent's'' 
     and inserting ``director's''; and
       (II) in paragraph (3), by striking ``camp superintendent'' 
     and inserting ``campus director'';
       (B) in section 157(c)(2) (42 U.S.C. 12617(c)(2)), by 
     striking ``camp superintendents'' and inserting ``campus 
     directors''; and
       (C) except as provided in subparagraphs (A) and (B), by 
     striking ``superintendent'' each place it appears and 
     inserting ``campus director''; and
       (2)(A) by striking ``Corps camp'' each place it appears and 
     inserting ``campus'';
       (B) by striking ``camp'' each place it appears and 
     inserting ``campus'';
       (C) by striking ``camps'' each place it appears and 
     inserting ``campuses''; and
       (D) in section 155 (42 U.S.C. 12615)--
       (i) in subsections (d) and (e), in the subsection headings, 
     by striking ``Camps'' and inserting ``Campuses''; and
       (ii) in subsection (d)--
       (I) in paragraph (1), in the paragraph heading, by striking 
     ``camps'' and inserting ``campuses''; and
       (II) in paragraph (3), in the paragraph heading, by 
     striking ``camp'' and inserting ``campus''.

                 Subtitle F--Administrative Provisions

     SEC. 1601. FAMILY AND MEDICAL LEAVE.

       Section 171 (42 U.S.C. 12631) is amended--
       (1) in subsection (a)(1), by striking ``with respect to a 
     project'' and inserting ``with respect to a project 
     authorized under subtitle C, or part A of title I of the 
     Domestic Volunteer Service Act of 1973 (42 U.S.C. 4951 et 
     seq.)'';
       (2) by redesignating subsections (b) and (c) as subsections 
     (c) and (d); and
       (3) by inserting after subsection (a) the following:
       ``(b) Service Sponsors.--Participants or volunteers in a 
     project authorized under subtitle C, or title II of the 
     Domestic Volunteer Service Act of 1973 (42 U.S.C. 5000 et 
     seq.), shall not be considered to be employees for purposes 
     of determining whether a service sponsor is an employer under 
     subsection (a)(2).''.

     SEC. 1602. ADDITIONAL PROHIBITIONS ON USE OF FUNDS.

       Section 174 (42 U.S.C. 12634) is amended by adding at the 
     end the following:
       ``(d) Sex Education Programs.--No assistance made available 
     under the national service laws shall be used--
       ``(1) to develop or distribute materials or operate 
     programs or courses of instruction, directed at youth, that 
     are designed to promote or encourage sexual activity;
       ``(2) to distribute or aid in the distribution by any 
     organization of obscene materials to minors on school 
     grounds;
       ``(3) to provide in schools--
       ``(A) sex education, unless such education is age 
     appropriate and includes discussion of the health benefits of 
     abstinence; and
       ``(B) HIV-prevention instruction, unless such instruction 
     is age appropriate, includes discussion of the health 
     benefits of abstinence, and includes discussion of the health 
     risks of the human papillomavirus, consistent with the 
     provisions of section 317P(c) of the Public Health Service 
     Act (42 U.S.C. 247b-17(c)); or
       ``(4) to operate a program of contraceptive distribution in 
     schools.''.

     SEC. 1603. NOTICE, HEARING, AND GRIEVANCE PROCEDURES.

       Section 176 (42 U.S.C. 12636) is amended--
       (1) by striking ``this title'' each place it appears and 
     inserting ``the national service laws'';
       (2) in subsection (a)(2)(A), by striking ``30 days'' and 
     inserting ``1 or more periods of 30 days, but not more than a 
     total of 90 days''; and
       (3) in subsection (f)--
       (A) in paragraph (1), by striking ``A State or local 
     applicant'' and inserting ``An entity''; and
       (B) in paragraph (6)--
       (i) in subparagraph (C), by striking ``and'';
       (ii) by redesignating subparagraph (D) as subparagraph (E); 
     and
       (iii) by inserting after subparagraph (C) the following:
       ``(D) for a grievance filed by an individual applicant or 
     participant--
       ``(i) the applicant's selection or the participant's 
     reinstatement, as the case may be; and
       ``(ii) other changes in the terms and conditions of the 
     service involved; and''.

     SEC. 1604. RESOLUTION OF DISPLACEMENT COMPLAINTS.

       Section 177 (42 U.S.C. 12637) is amended--
       (1) in subsections (a) and (b), by striking ``under this 
     title'' each place it appears and inserting ``under the 
     national service laws''; and
       (2) by striking subsection (e) and inserting the following:

[[Page 15017]]

       ``(e) Standards of Conduct.--
       ``(1) In general.--Programs that receive assistance under 
     the national service laws shall establish and stringently 
     enforce standards of conduct at the program sites to promote 
     proper moral and disciplinary conditions, and shall consult 
     with the parents or legal guardians of children in developing 
     and operating programs that include children as participants 
     and serve children.
       ``(2) Parental permission.--A program that receives 
     assistance under the national service laws shall, consistent 
     with State law, before transporting a minor child, provide 
     the reason for the transportation to, and obtain written 
     permission from, the child's parents.''.

     SEC. 1605. STATE COMMISSIONS ON NATIONAL AND COMMUNITY 
                   SERVICE.

       Section 178 (42 U.S.C. 12638) is amended--
       (1) in subsection (c)--
       (A) in paragraph (1), by adding at the end the following:
       ``(J) A representative of the volunteer sector.''; and
       (B) in paragraph (3), by striking ``, unless the State 
     permits the representative to serve as a voting member of the 
     State Commission or alternative administrative entity'';
       (2) in subsection (d)(6)(B), by striking ``section 
     193A(b)(11)'' and inserting ``section 193A(b)(10)'';
       (3) by striking subsection (e)(1) and inserting the 
     following:
       ``(1) Preparation of a national service plan that--
       ``(A)(i) is developed through an open and public process 
     (such as through regional forums, hearings, and other means) 
     that provides for maximum participation and input from 
     nonprofit organizations and public agencies; and
       ``(ii) uses service and volunteerism as strategies to meet 
     critical community needs, including service through programs 
     funded under the national service laws;
       ``(B) covers a 3-year period, the beginning of which may be 
     set by the State;
       ``(C) is subject to approval by the Chief Executive 
     Officer;
       ``(D) includes measurable goals and outcomes, including 
     performance measures established under section 186;
       ``(E) ensures outreach to community and religious 
     organizations, including such organizations that serve 
     underrepresented populations;
       ``(F) provides for the effective coordination of funding 
     applications submitted by the State, and others within the 
     State, under the national service laws; and
       ``(G) identifies potential changes in practices and 
     policies that would improve the coordination and 
     effectiveness of Federal, State, and local resources for 
     service and volunteerism within the State.'';
       (4) by redesignating subsections (f) through (j) as 
     subsections (g) through (k), respectively; and
       (5) by inserting after subsection (e) the following:
       ``(f) Relief From Administrative Requirements.--Upon 
     approval of a State national service plan prepared under 
     subsection (e)(1), the Chief Executive Officer may waive, or 
     specify alternatives to, administrative requirements (other 
     than requirements of statutory provisions) otherwise 
     applicable to grants made to States under the national 
     service laws, including those requirements identified by a 
     State as impeding the coordination and effectiveness of 
     Federal, State, and local resources for service and 
     volunteerism within the State.''.

     SEC. 1606. EVALUATION AND ACCOUNTABILITY.

       Section 179 (42 U.S.C. 12639) is amended--
       (1) in subsection (a), by striking ``to determine--'' and 
     all that follows and inserting ``to determine the 
     effectiveness of programs that received assistance under the 
     national service laws in achieving stated goals and the costs 
     associated with each of the programs, and for research and 
     evaluation regarding the role of service and civic engagement 
     as a means of fostering healthy civic organizations.'';
       (2) in subsection (g)--
       (A) in paragraph (3), by striking ``National Senior 
     Volunteer Corps'' and inserting ``National Senior Service 
     Corps''; and
       (B) in paragraph (9), by striking ``to public service'' and 
     all that follows and inserting ``to engage in service that 
     benefits the community.''; and
       (3) by adding at the end the following:
       ``(j) Reserved Program Funds for Accountability.--In 
     addition to amounts appropriated under section 501 and made 
     available to carry out this section, the Corporation may 
     reserve up to 1 percent of total program funds appropriated 
     for a fiscal year under the national service laws to support 
     program accountability activities.''.

     SEC. 1607. TECHNICAL AMENDMENT.

       Section 181 (42 U.S.C. 12641) is amended by striking 
     ``Section 414'' and inserting ``Section 422''.

     SEC. 1608. ADDITIONAL ADMINISTRATIVE PROVISIONS.

       Subtitle F of title I (42 U.S.C. 12631 et seq.) is amended 
     by adding at the end the following:

     ``SEC. 185. CONSOLIDATED APPLICATION AND REPORTING 
                   REQUIREMENTS.

       ``To promote efficiency and eliminate duplicative 
     requirements, the Corporation, after consultation with State 
     Commissions and the Director of the National Senior Service 
     Corps may consolidate or modify application procedures and 
     reporting requirements for programs and activities funded 
     under the national service laws.

     ``SEC. 186. ACCOUNTABILITY FOR RESULTS.

       ``(a) Measures.--
       ``(1) Establishment of measures.--The Corporation shall 
     establish, after consultation with recipients of assistance 
     under the national service laws, performance measures for 
     each recipient (or subrecipient).
       ``(2) Content.--The performance measures described in 
     paragraph (1)--
       ``(A) shall include, for each program carried out with such 
     assistance--
       ``(i) the number of participants enrolled and completing 
     terms of service;
       ``(ii) specific performance indicators showing the outcome 
     of the service activity, such as--

       ``(I) the number of children tutored;
       ``(II) an indicator of academic gains, related to the 
     degree of beneficiary participation in services provided 
     through the service activity;
       ``(III) the number of housing units renovated;
       ``(IV) the number of vaccines administered;
       ``(V) the number of individuals assisted through disaster 
     preparedness or response activities; or
       ``(VI) other quantitative and qualitative measures as 
     determined to be appropriate by the recipient or 
     subrecipient, as appropriate, for the program; and

       ``(iii) a measure of community support;
       ``(B) may include, for each program--
       ``(i) an indicator of change in attitude by beneficiaries 
     of the program;
       ``(ii) the number of volunteers recruited; and
       ``(iii) the numbers of participants who failed to complete 
     their terms of service; and
       ``(C) shall include an established level of performance for 
     each measure described in subparagraph (A) or (B).
       ``(3) Source.--The Corporation may determine whether a 
     recipient (or subrecipient) has achieved the performance 
     measures described in paragraph (1) on the basis of self-
     reported data from the recipient (or subrecipient) and 
     independent data collected by the Corporation.
       ``(b) Plan for Failure To Achieve Performance Measures.--
       ``(1) Programs in existence for 3 years or longer.--A 
     recipient (or subrecipient) of assistance described in 
     subsection (a)(1), for a program carried out under subtitle C 
     that--
       ``(A) has been in existence for not less than 3 years; and
       ``(B) fails to achieve the performance measures described 
     in subsection (a) during fiscal year 2004 or a subsequent 
     fiscal year,

     shall submit a corrective plan to the Corporation that 
     addresses the performance measures that the program failed to 
     achieve, with detailed information on how the recipient (or 
     subrecipient) will ensure that the program will achieve the 
     measures.
       ``(2) Programs in existence for less than 3 years.--A 
     recipient (or subrecipient) of assistance described in 
     subsection (a)(1), for a program carried out under subtitle C 
     that--
       ``(A) has been in existence for less than 3 years; and
       ``(B) fails to achieve the performance measures described 
     in subsection (a) during--
       ``(i) the later of fiscal year 2004 or the first fiscal 
     year in which the program is in existence; or
       ``(ii) a subsequent fiscal year,

     shall receive technical assistance from the Corporation to 
     address targeted performance problems relating to the 
     performance measures that the program failed to achieve, and 
     shall provide quarterly reports on the program's progress in 
     achieving the performance measures described in subsection 
     (a) to the appropriate State and the Corporation.
       ``(c) Measures for Failure To Achieve Performance 
     Measures.--
       ``(1) Programs in existence for 3 years or longer.--If, 
     after a period for correction approved by the Corporation, a 
     recipient (or subrecipient) described in subsection (b)(1) of 
     assistance described in subsection (a)(1) fails to achieve 
     the performance measures for a program, the Corporation 
     shall--
       ``(A) reduce the annual amount of the assistance for the 
     program to the underperforming recipient (or subrecipient) by 
     not less than 25 percent; or
       ``(B) terminate assistance for the program to the 
     underperforming recipient (or subrecipient), consistent with 
     subsections (a), (b), (c), and (f) of section 176.
       ``(2) Programs in existence for less than 3 years.--If, 
     after 2 years, a recipient (or subrecipient) described in 
     subsection (b)(2) fails to show progress in achieving the 
     performance measures described in subsection (a) for a 
     program, the Corporation shall make the reduction described 
     in subparagraph (A), or the termination described in 
     subparagraph (B), of paragraph (1).
       ``(d) Reports to Congress.--The Corporation shall submit a 
     report to Congress not later than 2 years after the date of 
     enactment of this section, and annually thereafter, 
     containing information, for the year covered by the report, 
     on the number of--
       ``(1) recipients and subrecipients implementing corrective 
     plans under this section;

[[Page 15018]]

       ``(2) recipients and subrecipients for which the 
     Corporation terminates assistance for a program under this 
     section; and
       ``(3) recipients and subrecipients achieving (including 
     exceeding) performance measures under this section.

     ``SEC. 187. SUSTAINABILITY.

       ``(a) Goals.--To ensure that recipients of assistance under 
     the national service laws are carrying out sustainable 
     projects, the Corporation, the Corporation, after 
     collaboration with State Commissions and the Director of the 
     National Senior Service Corps and after consultation with 
     recipients of assistance under the national service laws, may 
     set sustainability goals by establishing policies and 
     procedures to--
       ``(1) build the capacity of the projects receiving the 
     assistance to meet community needs;
       ``(2) provide technical assistance to assist the recipients 
     in acquiring non-Federal funds for the projects; and
       ``(3) implement measures to ascertain whether the projects 
     are generating sufficient community support.
       ``(b) Enforcement.--If a recipient described in subsection 
     (a) does not meet the sustainability goals for a project, the 
     Corporation may suspend or terminate assistance for the 
     project to the recipient, consistent with subsections (a), 
     (b), (c), and (f) of section 176.

     ``SEC. 188. CAPACITY BUILDING.

       ``Participants in programs supported under the national 
     service laws, including individuals serving in approved 
     national service positions, may engage in activities, 
     including recruiting and managing volunteers, that increase 
     the capacity of organizations that receive assistance under 
     the national service laws to address unmet human, 
     educational, environmental, or public safety needs.

     ``SEC. 188A. EXPENSES OF ATTENDING MEETINGS.

       ``Notwithstanding section 1345 of title 31, United States 
     Code, funds authorized under the national service laws shall 
     be available for expenses of attendance of meetings that are 
     concerned with the functions or activities for which the 
     funds are appropriated or that will contribute to improved 
     conduct, supervision, or management of those functions or 
     activities.

     ``SEC. 188B. GRANT PERIODS.

       ``Unless otherwise specifically provided, the Corporation 
     has authority to make a grant, or enter into a contract or 
     cooperative agreement, under the national service laws for a 
     period of 3 years.

     ``SEC. 188C. LIMITATION ON PROGRAM GRANT COSTS.

       ``(a) Limitation on Grant Amounts.--Except as otherwise 
     provided by this section, the amount of funds approved by the 
     Corporation for a grant to operate a nonresidential program 
     authorized under the national service laws supporting 
     individuals serving in approved national service positions 
     may not exceed $16,000 per full-time equivalent position.
       ``(b) Costs Subject to Limitation.--The limitation in 
     subsection (a) applies to the Corporation's share of 
     participant support costs, staff costs, and other costs borne 
     by the recipient or a subrecipient of the funds to operate a 
     program.
       ``(c) Costs Not Subject to Limitation.--The limitation in 
     subsection (a) shall not apply to expenses that are not 
     covered by the grant award.
       ``(d) Adjustments for Inflation.--The amount specified in 
     subsection (a) shall be increased each year after 2004 for 
     inflation as measured by the Consumer Price Index for All 
     Urban Consumers published by the Secretary of Labor.
       ``(e) Waiver Authority and Reporting Requirement.--
       ``(1) Waiver.--The Chief Executive Officer may waive the 
     requirements of subsections (a) through (d), if necessary to 
     meet the compelling needs of a particular program, such as--
       ``(A) exceptional training needs for a program serving 
     disadvantaged youth;
       ``(B) increased costs relating to the participation of 
     individuals with disabilities; and
       ``(C) start-up costs associated with a first-time recipient 
     of funds for a program described in subsection (a).
       ``(2) Reports.--The Chief Executive Officer shall submit 
     reports to Congress annually on all waivers granted under 
     this section, with explanations of the compelling needs 
     justifying such waivers.

     ``SEC. 188D. NOTICE REQUIREMENT.

       ``(a) Notice.--The Corporation shall ensure that the 
     following notice is included in all application materials, 
     announcements of grants, contracts, and other agreements, and 
     other materials containing information regarding application 
     for assistance provided under the national service laws: `The 
     Civil Rights Act of 1964 (42 U.S.C. 2000 et seq.) prohibits 
     employers with 15 or more employees from engaging in 
     employment practices that discriminate against an individual 
     on the basis of religion. Under section 702(a) of the Civil 
     Rights Act of 1964, this prohibition generally does not apply 
     to a religious corporation, association, educational 
     institution, or society. However, as a requirement of 
     receiving funding under the national service laws, any such 
     religious entity shall not discriminate on the basis of 
     religion against a new employee who is paid with funds 
     received under the national service laws, pursuant to section 
     175(c) of the National and Community Service Act of 1990 (42 
     U.S.C. 12635(c)) and section 417(c) of the Domestic Volunteer 
     Service Act of 1973 (42 U.S.C. 5057(c)).'.
       ``(b) Confirmation.--Before providing assistance to a 
     private entity referred to in the notice specified in 
     subsection (a), the Corporation shall ensure that the entity 
     provides written confirmation, separate from any other 
     document required by law or regulation, acknowledging that 
     the entity has read and understands that notice.
       ``(c) Construction.--Subsections (a) and (b) shall not be 
     construed to amend, or supersede or otherwise affect rights, 
     protections, or duties under, any law, other than this Act.

     ``SEC. 188E. AUDITS AND REPORTS.

       ``The Corporation shall comply with applicable audit and 
     reporting requirements as provided in chapters 5 and 91 of 
     title 31, United States Code (relating to the Office of 
     Management and Budget and government corporations). The 
     Corporation shall report to the Congress any failure to 
     comply with the requirements relating to such audits.

     ``SEC. 188F. CONSTRUCTION.

       ``An individual participating in service in a program 
     described in section 122(a)(18) shall not be considered to be 
     an employee engaged in employment for purposes of the Fair 
     Labor Standards Act of 1938 (29 U.S.C. 201 et seq.).''.

       Subtitle G--Corporation for National and Community Service

     SEC. 1701. TERMS OF OFFICE.

       Section 192 (42 U.S.C. 12651a) is amended--
       (1) by striking subsection (c) and inserting the following:
       ``(c) Terms.--Subject to subsection (e), each appointed 
     member of the Board shall serve for a term of 5 years.''; and
       (2) by adding at the end the following:
       ``(e) Service Until Appointment of Successor.--An appointed 
     member of the Board whose term has expired may continue to 
     serve until the earlier of--
       ``(1) the date on which a successor has taken office; or
       ``(2) the date on which the Congress adjourns sine die to 
     end the session of Congress that commences after the date on 
     which the member's term expired.''.

     SEC. 1702. BOARD OF DIRECTORS AUTHORITIES AND DUTIES.

       Section 192A(g) (42 U.S.C. 12651b(g)) is amended--
       (1) by striking paragraph (2);
       (2) by redesignating paragraph (1) as paragraph (2);
       (3) by inserting before paragraph (2) (as redesignated by 
     paragraph (2)) the following:
       ``(1) have responsibility for setting overall policy for 
     the Corporation;'';
       (4) in paragraph (5)(B), by striking ``the annual strategic 
     plan referred to in paragraph (1), the proposals referred to 
     in paragraphs (2) and (3)'' and inserting ``the annual 
     strategic plan referred to in paragraph (2), the proposal 
     referred to in paragraph (3)'';
       (5) in paragraph (9), by inserting ``and'' after 
     ``Corporation;'';
       (6) in paragraph (10), by striking ``; and'' and inserting 
     a period; and
       (7) by striking paragraph (11).

     SEC. 1703. PEER REVIEWERS.

       Section 193A (42 U.S.C. 12651d) is amended--
       (1) in subsection (b)--
       (A) in paragraph (2)(B), by striking ``after receiving and 
     reviewing an approved proposal under section 192A(g)(2),'';
       (B) in paragraph (8)(B)--
       (i) in clause (i), by striking ``section 192A(g)(1)'' and 
     inserting ``section 192A(g)(2)''; and
       (ii) in clause (ii), by striking ``proposals approved by 
     the Board under paragraph (2) or (3) of section 192A(g)'' and 
     inserting ``proposal approved by the Board under section 
     192A(g)(3)''; and
       (C) in paragraph (9)(C), by striking the semicolon and 
     inserting ``; and'';
       (D) by striking paragraph (10); and
       (E) by redesignating paragraph (11) as paragraph (10);
       (2) in subsection (c)--
       (A) in paragraph (9), by striking ``and'' at the end;
       (B) by redesignating paragraph (10) as paragraph (11); and
       (C) by inserting after paragraph (9) the following:
       ``(10) obtain the opinions of peer reviewers in evaluating 
     applications to the Corporation for assistance under this 
     title; and'';
       (3) by striking subsection (f); and
       (4) by redesignating subsection (g) as subsection (f).

     SEC. 1704. OFFICERS.

       Section 194(d) (42 U.S.C. 12651e(d)) is amended, in the 
     subsection heading, by striking ``National Senior Volunteer 
     Corps'' and inserting ``National Senior Service Corps''.

     SEC. 1705. NONVOTING MEMBERS; PERSONAL SERVICES CONTRACTS.

       Section 195 (42 U.S.C. 12651f) is amended--
       (1) in subsection (c)(3)--
       (A) in the paragraph heading, by striking ``Member'' and 
     inserting ``Non-voting member''; and
       (B) by inserting ``non-voting'' before ``member''; and

[[Page 15019]]

       (2) by adding at the end the following:
       ``(g) Personal Services Contracts.--The Corporation may 
     enter into personal services contracts to carry out research, 
     evaluation, and public awareness projects related to the 
     national service laws.''.

     SEC. 1706. DONATED SERVICES.

       Section 196(a) (42 U.S.C. 12651g(a)) is amended--
       (1) in paragraph (1)--
       (A) by striking subparagraph (A) and inserting the 
     following:
       ``(A) Organizations and individuals.--Notwithstanding 
     section 1342 of title 31, United States Code, the Corporation 
     may solicit and accept the voluntary services of 
     organizations and individuals (other than participants) to 
     assist the Corporation in carrying out the duties of the 
     Corporation under the national service laws, and may provide 
     to members of such organizations and such individuals the 
     travel expenses described in section 192A(d).'';
       (B) in subparagraph (B)--
       (i) in the matter preceding clause (i), by striking ``Such 
     a volunteer'' and inserting ``A person who is a member of an 
     organization, or is an individual, covered by subparagraph 
     (A)'';
       (ii) in clause (i), by striking ``a volunteer under this 
     subtitle'' and inserting ``such a person'';
       (iii) in clause (ii), by striking ``volunteers under this 
     subtitle'' and inserting ``such persons''; and
       (iv) in clause (iii), by striking ``such a volunteer'' and 
     inserting ``such a person''; and
       (C) in subparagraph (C)(i), by striking ``Such a 
     volunteer'' and inserting ``Such a person''; and
       (2) by striking paragraph (3).

           Subtitle H--Investment for Quality and Innovation

     SEC. 1801. TECHNICAL AMENDMENTS TO SUBTITLE H.

       Section 198 (42 U.S.C. 12653) is amended--
       (1) in subsection (a), by striking ``subsection (r)'' and 
     inserting ``subsection (q)'';
       (2) in subsection (e)--
       (A) in the subsection heading, by striking ``Improve 
     Ability To Apply for Assistance'' and inserting ``Training 
     and Technical Assistance''; and
       (B) by striking ``and other entities'' and all that follows 
     and inserting ``and other entities, including those in 
     underserved rural and urban areas, to enable them to apply 
     for funding under one of the national service laws, to 
     conduct high-quality programs, to evaluate such programs, to 
     support efforts to improve the management of nonprofit 
     organizations and community groups, and for other 
     purposes.'';
       (3) in subsection (i)--
       (A) by striking ``conduct a campaign to''; and
       (B) by striking ``to promote'' and inserting ``may 
     promote'';
       (4) by striking subsection (q) and redesignating 
     subsections (r) and (s) as subsections (q) and (r), 
     respectively;
       (5) in subsection (q) (as redesignated by paragraph (4)), 
     in the subsection heading, by striking ``Assistance for Head 
     Start'' and inserting ``Agreements Concerning Foster 
     Grandparent Programs''; and
       (6) by adding at the end the following:
       ``(s) Volunteer Service Technology Programs.--The 
     Corporation may make available not more than $5,000,000 per 
     year to make grants to Internet volunteer recruiting 
     entities, to pay for the Federal share of the cost of 
     programs to assist the entities to locate, promote, and match 
     volunteers with, local service and volunteer organizations. 
     The Federal share of the cost shall be 75 percent. The non-
     Federal share of the cost shall be provided from State or 
     local sources.''.

     SEC. 1802. CLEARINGHOUSES.

       Section 198A(a) (42 U.S.C. 12653a(a)) is amended by 
     striking ``section 118'' and inserting ``section 120A''.

     SEC. 1803. REPEAL OF SPECIAL DEMONSTRATION PROJECT.

       Section 198D (42 U.S.C. 12653d) is repealed.

                   Subtitle I--Additional Authorities

     SEC. 1901. AMERICA'S PROMISE: THE ALLIANCE FOR YOUTH.

       Title I (42 U.S.C. 12511) is amended by adding at the end 
     the following:

        ``Subtitle J--America's Promise: The Alliance for Youth

     ``SEC. 199N. AUTHORITY TO PROVIDE ASSISTANCE.

       ``(a) In General.--Subject to the availability of 
     appropriations, the Corporation may make a grant to America's 
     Promise: The Alliance for Youth (referred to in this section 
     as the ``alliance'') to support its activities relating to 
     mobilizing communities to ensure that young people become 
     productive, responsible adults.
       ``(b) Use of Funds.--The alliance may use the funds made 
     available through the grant to pay for costs attributable to 
     the development or operation of programs, consistent with the 
     terms of the grant.
       ``(c) Chief Executive Officer as Ex Officio Member of Board 
     of Directors.--The Chief Executive Officer may serve as an ex 
     officio, nonvoting member of the Board of Directors of the 
     alliance.''.

                 Subtitle J--Points of Light Foundation

     SEC. 1911. PURPOSES.

       Section 302 (42 U.S.C. 12661) is amended to read as 
     follows:

     ``SEC. 302. PURPOSES.

       ``The purposes of this title are--
       ``(1) to encourage every individual and every institution 
     in the Nation to help solve critical social problems by 
     volunteering time, energies, and services through community 
     and volunteer service projects and initiatives;
       ``(2) to identify successful and promising community and 
     volunteer service projects and initiatives, and to 
     disseminate information, training, and technical assistance 
     concerning such projects and initiatives to other communities 
     in order to promote and sustain the adoption of the projects 
     and initiatives nationwide;
       ``(3) to discover and encourage new leaders and develop 
     individuals and institutions that serve as strong examples of 
     a commitment to serving others, and to convince all people in 
     the United States that a successful life includes serving 
     others;
       ``(4) to encourage and facilitate the development of new 
     volunteer centers in designated communities; and
       ``(5) to strengthen the aggregate infrastructure of our 
     Nation's volunteer centers in order to maximize recruitment, 
     management, and retention.''.

     SEC. 1912. BOARD OF DIRECTORS.

       Section 303 (42 U.S.C. 12662) is amended--
       (1) in subsection (a), by striking ``Corporation'' and 
     inserting ``Corporation for National and Community Service 
     (referred to in this title as the `Corporation')'';
       (2) by redesignating subsection (b) as subsection (c); and
       (3) by inserting after subsection (a) the following:
       ``(b) Chief Executive Officer as Ex Officio Member of Board 
     of Directors.--The Chief Executive Officer of the Corporation 
     may serve as an ex officio nonvoting member of the 
     Foundation's Board of Directors.''.

     SEC. 1913. GRANTS TO THE FOUNDATION.

       Section 304 (42 U.S.C. 12663) is amended--
       (1) in subsection (a), in the matter preceding paragraph 
     (1), by striking ``a department or agency in the executive 
     branch'' and all that follows through ``the President--'' and 
     inserting ``the Corporation--''; and
       (2) by adding after subsection (b) the following:
       ``(c) Endowment.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, from the funds made available each fiscal year under 
     sections 303 and 501(b), the Foundation may use not more than 
     25 percent to establish or support an endowment fund, the 
     corpus of which shall remain intact and the interest income 
     from which shall be used to support activities described in 
     this title. The Foundation may invest the corpus and income 
     only in federally insured bank savings accounts or comparable 
     interest-bearing accounts, certificates of deposit, money 
     market funds, mutual funds, obligations of the United States, 
     or other market instruments and securities, but not in real 
     estate.
       ``(2) End of operations.--The Chief Executive Officer shall 
     obtain from the Foundation complete and accurate records of 
     Federal funds deposited in an endowment fund established or 
     supported in accordance with paragraph (1). The corpus of 
     such an endowment fund shall revert to the Treasury if the 
     Chief Executive Officer determines that--
       ``(A) the Foundation has ceased operations; or
       ``(B) the Foundation is no longer capable of carrying out 
     the activities described in section 302.
       ``(d) Grants To Support Community-Based Volunteer 
     Centers.--From funds made available under sections 303 and 
     501(b), the Foundation may make grants to--
       ``(1) community-based organizations for the purpose of 
     facilitating the development of volunteer centers; and
       ``(2) community-based volunteer centers to support their 
     ability to recruit, manage, and retain volunteers.''.

              Subtitle K--Authorization of Appropriations

     SEC. 1921. AUTHORIZATION.

       Section 501 (42 U.S.C. 12681) is amended to read as 
     follows:

     ``SEC. 501. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) Title I.--
       ``(1) Subtitle b.--
       ``(A) In general.--There are authorized to be appropriated 
     to provide financial assistance under subtitle B of title I, 
     $55,000,000 for fiscal year 2004, $58,000,000 for fiscal year 
     2005, $61,000,000 for fiscal year 2006, $65,000,000 for 
     fiscal year 2007, and such sums as may be necessary for 
     fiscal year 2008.
       ``(B) Programs.--Of the amount appropriated under 
     subparagraph (A) for a fiscal year--
       ``(i) not more than 50 percent shall be available to 
     provide financial assistance under part I of subtitle B of 
     title I;
       ``(ii) not more than 25 percent shall be available to 
     provide financial assistance under part II of such subtitle; 
     and
       ``(iii) not less than 25 percent shall be available to 
     provide financial assistance under part III of such subtitle.
     ``(2) Subtitles c, d, and h.--
       ``(A) In general.--There are authorized to be appropriated 
     to provide financial assistance under subtitles C and H of 
     title I, to administer the National Service Trust and provide 
     national service educational awards and

[[Page 15020]]

     service-based scholarships for secondary school students 
     under subtitle D of title I, and to carry out such audits and 
     evaluations as the Chief Executive Officer or the Inspector 
     General of the Corporation may determine to be necessary, 
     $415,000,000 for fiscal year 2004, and such sums as may be 
     necessary for fiscal years 2005 through 2008.
       ``(B) Programs.--Of the amount appropriated under 
     subparagraph (A) for a fiscal year, not more than 15 percent 
     shall be made available to provide financial assistance under 
     section 125, under subsections (b) and (c) of section 126, 
     and under subtitle H of title I.
       ``(C) Subtitle c.--Of the amount appropriated under 
     subparagraph (A) for fiscal year 2004, not more than 
     $315,000,000 shall be made available to provide financial 
     assistance under section 121.
       ``(3) Subtitle e.--There are authorized to be appropriated 
     to operate the Civilian Community Corps and provide financial 
     assistance under subtitle E of title I, $30,000,000 for 
     fiscal year 2004 and such sums as may be necessary for each 
     of fiscal years 2005 through 2008.
       ``(4) Subtitle j.--There are authorized to be appropriated 
     to provide financial assistance under subtitle J of title I 
     $7,500,000 for fiscal year 2004 and such sums as may be 
     necessary for each of fiscal years 2005 through 2008.
       ``(5) Administration.--
       ``(A) In general.--There are authorized to be appropriated 
     for the administration of this Act, including the provision 
     of financial assistance under section 126(a), $34,000,000 for 
     fiscal year 2004 and such sums as may be necessary for each 
     of fiscal years 2005 through 2008.
       ``(B) Corporation.--Of the amounts appropriated under 
     subparagraph (A) for a fiscal year--
       ``(i) not more than 60 percent shall be made available to 
     the Corporation for the administration of this Act; and
       ``(ii) the remainder shall be available to provide 
     financial assistance under section 126(a).
       ``(b) Title III.--There are authorized to be appropriated 
     to carry out title III $10,000,000 for fiscal year 2004 and 
     such sums as may be necessary for each of fiscal years 2005 
     through 2008.
       ``(c) Availability of Appropriations.--Funds appropriated 
     under this section shall remain available until expended.''.

   TITLE II--AMENDMENTS TO THE DOMESTIC VOLUNTEER SERVICE ACT OF 1973

     SEC. 2001. REFERENCES.

       Except as otherwise specifically provided, whenever in this 
     title an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a provision, the reference shall 
     be considered to be made to a provision of the Domestic 
     Volunteer Service Act of 1973 (42 U.S.C. 4950 et seq.).

          Subtitle A--National Volunteer Antipoverty Programs

     SEC. 2101. PURPOSE.

       The second sentence of section 2(b) (42 U.S.C. 4950(b)) is 
     amended by striking ``local agencies'' and inserting ``local 
     agencies, expand relationships with, and support for, the 
     efforts of civic, community, and educational 
     organizations,''.

     SEC. 2102. PURPOSE OF THE VISTA PROGRAM.

       Section 101 (42 U.S.C. 4951) is amended--
       (1) in the second sentence, by striking ``afflicted with'' 
     and inserting ``affected by''; and
       (2) in the third sentence, by striking ``local level'' and 
     all that follows and inserting ``local level, to support 
     efforts by local agencies and community organizations to 
     achieve long-term sustainability of projects initiated or 
     expanded under the VISTA program, and to strengthen local 
     agencies and community organizations to carry out the purpose 
     of this part, consistent with the provisions of section 187 
     of the National and Community Service Act of 1990.''.

     SEC. 2103. APPLICATIONS.

       Section 103 (42 U.S.C. 4953) is amended--
       (1) in subsection (a)(2)--
       (A) by striking ``handicapped'' and inserting ``disabled''; 
     and
       (B) by striking ``handicaps'' and inserting 
     ``disabilities'';
       (2) in subsection (b)(1), by striking ``recruitment and 
     placement procedures'' and inserting ``recruitment and 
     placement procedures that involve sponsoring organizations 
     and'';
       (3) in subsection (c)--
       (A) in paragraph (1)--
       (i) in the matter preceding subparagraph (A), by striking 
     ``personnel described in subsection (b)(2)(C)'' and inserting 
     ``personnel described in subsection (b)(2)(C) and sponsoring 
     organizations''; and
       (ii) in subparagraph (F), by striking ``National and 
     Community Service Trust Act of 1993'' and inserting 
     ``National and Community Service Act of 1990 (42 U.S.C. 12501 
     et seq.)''; and
       (B) in paragraph (3), by striking ``this subsection with 
     those'' and inserting ``this subsection, and related 
     recruitment and public awareness activities carried out under 
     the national service laws, with the recruitment and public 
     awareness activities'';
       (4) in subsection (g), by striking ``and has been submitted 
     to the Governor'' and all that follows and inserting a 
     period; and
       (5) by adding at the end the following:
       ``(i) The Director may enter into agreements under which 
     public and private nonprofit organizations with sufficient 
     financial capacity and size pay for all or a portion of the 
     costs of supporting the service of volunteers under this 
     title, consistent with the provisions of section 187 of the 
     National and Community Service Act of 1990.''.

     SEC. 2104. TERMS AND PERIODS OF SERVICE.

       Section 104 (42 U.S.C. 4954) is amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a)(1) Except as provided in paragraphs (2) through (4), 
     volunteers serving under this part shall be required to make 
     a full-time personal commitment to combating poverty and 
     poverty-related problems. To the maximum extent practicable, 
     that requirement for a full-time personal commitment shall 
     include a commitment to live among and at the economic level 
     of the people served, and to remain available for service 
     without regard to regular working hours, at all times during 
     the periods of service, except for authorized periods of 
     leave.
       ``(2) The Director may exempt volunteers serving under this 
     part for fiscal year 2003 or 2004 from the requirements of 
     paragraph (1), but the requirements shall apply to--
       ``(A) not less than 75 percent of such volunteers for 
     fiscal year 2003; and
       ``(B) not less than 50 percent of such volunteers for 
     fiscal year 2004.
       ``(3) Not later than September 30, 2004, the Comptroller 
     General of the United States shall submit a report to 
     Congress on whether the exemptions permitted under paragraph 
     (2) have had a material and adverse effect on the ability of 
     the VISTA program to combat poverty and poverty-related 
     problems, such as an increased attrition rate among 
     volunteers, and difficulty in recruiting volunteers, to serve 
     under this part.
       ``(4)(A) Except as provided in subparagraph (B), the 
     Director may exempt volunteers serving under this part for 
     fiscal year 2005 or a subsequent fiscal year from the 
     requirements of paragraph (1), but the requirements shall 
     apply to not less than 25 percent of such volunteers for 
     fiscal year 2005.
       ``(B) Subparagraph (A) shall not apply if the Comptroller 
     General of the United States determines, in the report 
     described in paragraph (3), that the exemptions permitted 
     under paragraph (2) have had a material and adverse effect on 
     the ability of the VISTA program to combat poverty and 
     poverty-related problems.'';
       (2) in subsection (b)(2), by striking ``if the Director 
     determines'' and all that follows and inserting ``if they are 
     enrolled for periods of at least 1,700 hours for service to 
     which the requirements of subsection (a)(1) do not apply.''; 
     and
       (3) in subsection (d)--
       (A) in the first sentence, by striking ``with the terms and 
     conditions of their service.'' and inserting ``with the terms 
     and conditions of their service or any adverse action, 
     including termination, proposed by the sponsoring 
     organization involved. The procedure shall provide for an 
     appeal to the Director of any proposed termination from 
     service.''; and
       (B) in the last sentence, by striking ``and the terms and 
     conditions of their service''.

     SEC. 2105. SECTIONS REPEALED.

       Sections 109 and 124 (42 U.S.C. 4959 and 4995) are 
     repealed.

     SEC. 2106. REDESIGNATION.

       Part A of title I (42 U.S.C. 4951 et seq.) is amended by 
     redesignating section 110 as section 109.

     SEC. 2107. UNIVERSITY YEAR FOR VISTA PROGRAM.

       Section 111(b) (42 U.S.C. 4971(b)) is amended in the third 
     sentence by striking ``agencies, institutions, and 
     situations'' and inserting ``agencies and institutions, 
     including civic, community, and educational organizations,''.

     SEC. 2108. CONFORMING AMENDMENT.

       Section 121 is amended in the second sentence by striking 
     ``agencies, institutions, and situations'' and inserting 
     ``agencies and institutions, including civic, community, and 
     educational organizations,''.

               Subtitle B--National Senior Service Corps

     SEC. 2201. CHANGE IN NAME.

       Title II (42 U.S.C. 5000 et seq.) is amended in the title 
     heading by striking ``NATIONAL SENIOR VOLUNTEER CORPS'' and 
     inserting ``NATIONAL SENIOR SERVICE CORPS''.

     SEC. 2202. PURPOSE.

       Section 200 (42 U.S.C. 5000) is amended to read as follows:

     ``SEC. 200. STATEMENT OF PURPOSE.

       ``It is the purpose of this title to provide--
       ``(1) opportunities for senior service to meet unmet local, 
     State, and national needs in the areas of education, public 
     safety, health and human needs, and the environment;
       ``(2) for the National Senior Service Corps, comprised of 
     the Retired and Senior Volunteer Program, the Foster 
     Grandparent Program, and the Senior Companion Program, and 
     demonstration and other programs to empower older individuals 
     to contribute to their communities through service, enhance 
     the lives of those who serve and those whom they serve, and 
     provide communities with valuable services;

[[Page 15021]]

       ``(3) opportunities for people 55 years of age or older, 
     through the Retired and Senior Volunteer Program, to share 
     their experiences, abilities, and skills for the betterment 
     of their communities and themselves;
       ``(4) opportunities for people 55 years of age or older, 
     through the Foster Grandparent Program, to have a positive 
     impact on the lives of children in need;
       ``(5) opportunities for people 55 years of age or older, 
     through the Senior Companion Program, to provide critical 
     support services and companionship to adults at risk of 
     institutionalization and who are struggling to maintain a 
     dignified independent life; and
       ``(6) for research, training, demonstration, and other 
     program activities to increase and improve opportunities for 
     seniors to meet unmet needs, including those related to 
     emergency preparedness, public safety, public health, and 
     disaster relief, in their communities.''.

     SEC. 2203. GRANTS AND CONTRACTS FOR VOLUNTEER SERVICE 
                   PROJECTS.

       Section 201 (42 U.S.C. 5001) is amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1), by striking 
     ``avail themselves of opportunities for volunteer service in 
     their community'' and inserting ``share their experiences, 
     abilities, and skills for the betterment of their communities 
     and themselves''; and
       (B) in paragraph (2), by striking ``, and individuals 60 
     years of age or older will be given priority for 
     enrollment,'';
       (2) by striking subsection (c); and
       (3) by redesignating subsection (d) as subsection (c).

     SEC. 2204. FOSTER GRANDPARENT PROGRAM GRANTS.

       Section 211 (42 U.S.C. 5011) is amended--
       (1) in subsection (a), by striking ``low-income persons 
     aged sixty or over'' and inserting ``low-income and other 
     persons aged 55 or over'';
       (2) in subsection (b)--
       (A) in paragraph (1)--
       (i) in the matter preceding subparagraph (A), by striking 
     ``shall have the exclusive authority to determine, pursuant 
     to the provisions of paragraph (2) of this subsection--'' and 
     inserting ``may determine--'';
       (ii) in subparagraph (A), by striking ``and'';
       (iii) in subparagraph (B), by striking the period and 
     inserting ``; and''; and
       (iv) by adding at the end the following:
       ``(C) whether it is in the best interests of a child 
     receiving, and of a particular foster grandparent providing, 
     services in such a project, to continue such relationship 
     after the child reaches the age of 21, if such child was 
     receiving such services prior to attaining the age of 21.'';
       (B) by striking paragraph (2);
       (C) by redesignating paragraph (3) as paragraph (2);
       (D) in paragraph (2) (as redesignated by subparagraph (C) 
     of this section), by striking ``paragraphs (1) and (2)'' and 
     inserting ``paragraph (1)''; and
       (E) by adding at the end the following:
       ``(3) If an assignment of a foster grandparent is suspended 
     or discontinued, the replacement of that foster grandparent 
     shall be determined through the mutual agreement of all 
     parties involved in the provision of services to the 
     child.'';
       (3) in subsection (d)--
       (A) in the first sentence, by striking ``low-income persons 
     serving as volunteers under this part, such allowances, 
     stipends, and other support'' and inserting ``low-income 
     persons and persons eligible under subsection (h) serving as 
     volunteers under this part, such stipends or allowances''; 
     and
       (B) by striking the second sentence and all that follows 
     and inserting the following: ``Any stipend or allowance 
     provided under this part shall not exceed 75 percent of the 
     minimum wage under the Fair Labor Standards Act of 1938 (29 
     U.S.C. 201 et seq.), with the Federal share not to exceed 
     $2.65 per hour, except that the Director shall adjust the 
     Federal share once prior to December 31, 2008, to account for 
     inflation.'';
       (4) in subsection (e)(1), by striking ``125'' and inserting 
     ``200'';
       (5) by striking subsection (f) and inserting the following:
       ``(f)(1) Subject to the restrictions in paragraph (3), 
     individuals who are not low-income persons may serve as 
     volunteers under this part. The regulations issued by the 
     Director to carry out this part (other than regulations 
     relating to stipends or allowances to individuals authorized 
     by subsections (d) and (h)) shall apply to all volunteers 
     under this part, without regard to whether such volunteers 
     are eligible to receive a stipend or allowance under 
     subsection (d) or (h).
       ``(2) Except as provided under paragraph (1), each 
     recipient of a grant or contract to carry out a project under 
     this part shall give equal treatment to all volunteers who 
     participate in such project, without regard to whether such 
     volunteers are eligible to receive a stipend or allowance 
     under subsection (d) or (h).
       ``(3) An individual who is not a low-income person may not 
     become a volunteer under this part if allowing that 
     individual to become a volunteer under this part would 
     prevent a low-income person from becoming a volunteer under 
     this part or would displace a low-income person from being a 
     volunteer under this part.''; and
       (6) by adding at the end the following:
       ``(g) The Director may also provide a stipend or allowance 
     in an amount not to exceed 10 percent more than the amount 
     established under subsection (d) to leaders who, on the basis 
     of past experience as volunteers, special skills, and 
     demonstrated leadership abilities, may coordinate activities, 
     including training, and otherwise support the service of 
     volunteers under this part.
       ``(h) The Director may provide payments under subsection 
     (d) for up to 15 percent of volunteers serving in a project 
     under this part for a fiscal year who do not meet the 
     definition of `low-income' under subsection (e), upon 
     certification by the recipient of a grant or contract that it 
     is unable to effectively recruit and place low-income 
     volunteers in the number of placements approved for the 
     project.''.

     SEC. 2205. SENIOR COMPANION PROGRAM GRANTS.

       Section 213 (42 U.S.C. 5013) is amended--
       (1) in subsection (a), by striking ``low-income persons 
     aged 60 or over'' and inserting ``low-income and other 
     persons aged 55 or over'';
       (2) in subsection (b), by striking ``Subsections (d), (e), 
     and (f)'' and inserting ``Subsections (d) through (h)''; and
       (3) by striking subsection (c)(2)(B) and inserting the 
     following:
       ``(B) Senior companion volunteer trainers and leaders may 
     receive a stipend or allowance consistent with subsections 
     (d), (g), and (h) of section 211, as approved by the 
     Director.''.

     SEC. 2206. TECHNICAL AMENDMENTS.

       (a) National Senior Service Corps.--
       (1) Section 221.--Section 221 (42 U.S.C. 5021) is amended 
     in the heading by striking ``volunteer'' and inserting 
     ``service''.
       (2) Section 224.--Section 224 (42 U.S.C. 5024) is amended--
       (A) in the heading by striking ``volunteer'' and inserting 
     ``service''; and
       (B) by striking ``Volunteer'' and inserting ``Service''.
       (b) Change in Age Eligibility.--Section 223 (42 U.S.C. 
     5023) is amended by striking ``sixty years and older'' and 
     inserting ``55 years and older''.

     SEC. 2207. PROGRAMS OF NATIONAL SIGNIFICANCE.

       Section 225(b) (42 U.S.C. 5025(b)) is amended by adding at 
     the end the following:
       ``(19) Programs that strengthen community efforts in 
     support of homeland security.''.

     SEC. 2208. ADDITIONAL PROVISIONS.

       Part D of title II (42 U.S.C. 5021 et seq.) is amended by 
     adding at the end the following:

     ``SEC. 228. PARTICIPATION AND INCOME LEVEL.

       ``(a) Restriction on Participation.--
       ``(1) In general.--Except as provided in subsection (b), 
     participation in programs and activities under this title 
     shall be open to a senior whose income level does not exceed 
     200 percent of the poverty line for a single individual.
       ``(2) Deduction for medical expenses.--For purposes of 
     determining the income level of a senior under paragraph (1), 
     such income level shall be reduced by an amount that is equal 
     to 50 percent of the amount of such senior's medical expenses 
     during the year preceding the year during which the 
     eligibility determination is made.
       ``(b) Waiver.--The Corporation may waive the requirement of 
     subsection (a) with respect to not to exceed 15 percent of 
     the participants in programs and activities under this title 
     for each fiscal year.

     ``SEC. 229. CONTINUITY OF SERVICE.

       ``To ensure the continued service of individuals in 
     communities served by the Retired and Senior Volunteer 
     Program, Foster Grandparent Program, and Senior Companion 
     Program prior to the date of enactment of this section, in 
     making grants under this title the Corporation shall take 
     actions it considers necessary to maintain service 
     assignments for such seniors and to ensure continuity of 
     service for communities.

     ``SEC. 229A. TRAINING AND RESEARCH.

       ``From funds appropriated each fiscal year to carry out 
     this title, the Corporation may reserve not more than 
     $15,000,000 to support research and training designed to 
     improve the effectiveness of programs supported under this 
     title.''.

              Subtitle C--Administration and Coordination

     SEC. 2301. NONDISPLACEMENT.

       Section 404(a) is amended by striking ``displacement of 
     employed workers'' and inserting ``displacement of employed 
     workers or volunteers (other than participants under the 
     national service laws)''.

     SEC. 2302. DEFINITIONS.

       Section 421 (42 U.S.C. 5061) is amended--
       (1) in paragraph (11), by striking ``417'' and inserting 
     ``410'';
       (2) in paragraph (13), by striking ``National Senior 
     Volunteer Corps'' and inserting ``National Senior Service 
     Corps''; and
       (3) in paragraph (14)--
       (A) by striking ``National Senior Volunteer Corps'' and 
     inserting ``National Senior Service Corps''; and
       (B) by striking ``parts A, B, C, and E of''.

     SEC. 2303. PROTECTION AGAINST IMPROPER USE.

       Section 425 (42 U.S.C. 5065) is amended by striking 
     ``National Senior Volunteer Corps'' and inserting ``National 
     Senior Service Corps''.

     SEC. 2304. INCOME VERIFICATION.

       Title IV (42 U.S.C. 5043 et seq.) is amended by adding at 
     the end the following:

[[Page 15022]]



     ``SEC. 426. INCOME VERIFICATION.

       ``Each organization that receives assistance under this Act 
     may verify the income eligibility of volunteers based on a 
     confidential declaration of income and with no requirements 
     for verification.''.

     SEC. 2305. SECTIONS REPEALED.

       Sections 412 and 416 (42 U.S.C. 5052 and 5056) are 
     repealed.

     SEC. 2306. REDESIGNATIONS.

       Title IV (42 U.S.C. 5043 et seq.) is amended by 
     redesignating sections 403, 404, 406, 408, 409, 410, 411, 
     414, 415, 417, 418, 419, 421, 422, 423, 424, 425, and 426 as 
     sections 401, 402, 403, 404, 405, 406, 407, 408, 409, 410, 
     411, 412, 413, 414, 415, 416, 417, and 418, respectively.

              Subtitle D--Authorization of Appropriations

     SEC. 2401. AUTHORIZATION OF APPROPRIATIONS FOR VISTA AND 
                   OTHER PURPOSES.

       Section 501 (42 U.S.C. 5081) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``, excluding section 
     109'' and all that follows and inserting ``$90,000,000 for 
     fiscal year 2004 and such sums as may be necessary for each 
     of fiscal years 2005 through 2008.'';
       (B) by striking paragraphs (2) and (4) and redesignating 
     paragraphs (3) and (5) as paragraphs (2) and (3), 
     respectively; and
       (C) in paragraph (2) (as redesignated by subparagraph (B) 
     of this section), by striking ``, excluding section 125'' and 
     all that follows and inserting ``$5,000,000 for fiscal year 
     2004 and such sums as may be necessary for each of fiscal 
     years 2005 through 2008.''; and
       (2) by striking subsection (e).

     SEC. 2402. AUTHORIZATION OF APPROPRIATIONS FOR NATIONAL 
                   SENIOR SERVICE CORPS.

       Section 502 (42 U.S.C. 5082) is amended to read as follows:

     ``SEC. 502. NATIONAL SENIOR SERVICE CORPS.

       ``(a) Retired and Senior Volunteer Program.--There are 
     authorized to be appropriated to carry out part A of title II 
     $58,884,000 for fiscal year 2004 and such sums as may be 
     necessary for each of fiscal years 2005 through 2008.
       ``(b) Foster Grandparent Program.--There are authorized to 
     be appropriated to carry out part B of title II $110,000,000 
     for fiscal year 2004 and such sums as may be necessary for 
     each of fiscal years 2005 through 2008.
       ``(c) Senior Companion Program.--There are authorized to be 
     appropriated to carry out part C of title II $46,563,000 for 
     fiscal year 2004 and such sums as may be necessary for each 
     of fiscal years 2005 through 2008.
       ``(d) Demonstration Programs.--There are authorized to be 
     appropriated to carry out part E of title II $400,000 for 
     fiscal year 2004 and such sums as may be necessary for each 
     of fiscal years 2005 through 2008.''.

     SEC. 2403. ADMINISTRATION AND COORDINATION.

       Section 504 (42 U.S.C. 5084) is amended to read as follows:

     ``SEC. 504. ADMINISTRATION AND COORDINATION.

       ``There are authorized to be appropriated for the 
     administration of this Act $33,568,000 for fiscal year 2004 
     and such sums as may be necessary for each of fiscal years 
     2005 through 2008.''.

     SEC. 2404. REDESIGNATIONS.

       Title V (42 U.S.C. 5081 et seq.) is amended by 
     redesignating sections 504 and 505 as sections 503 and 504, 
     respectively.

                  TITLE III--AMENDMENTS TO OTHER LAWS

     SEC. 3001. INSPECTOR GENERAL ACT OF 1978.

       Section 8F(a)(1) of the Inspector General Act of 1978 (5 
     U.S.C. App.) is amended by striking ``National and Community 
     Service Trust Act of 1993'' and inserting ``National and 
     Community Service Act of 1990''.

          TITLE IV--TECHNICAL AMENDMENTS TO TABLES OF CONTENTS

     SEC. 4001. TABLE OF CONTENTS FOR THE NATIONAL AND COMMUNITY 
                   SERVICE ACT OF 1990.

       Section 1(b) of the National and Community Service Act of 
     1990 (42 U.S.C. 12501 note) is amended to read as follows:
       ``(b) Table of Contents.--The table of contents is as 
     follows:

``Sec. 1. Short title and table of contents.
``Sec. 2. Findings and purpose.

     ``TITLE I--NATIONAL AND COMMUNITY SERVICE STATE GRANT PROGRAM

                    ``Subtitle A--General Provisions

``Sec. 101. Definitions.

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

    ``Part I--Programs for Elementary and Secondary School Students


                   ``SUBPART A--PROGRAMS FOR STUDENTS

``Sec. 111. Assistance to States and Indian tribes.
``Sec. 112. Allotments.
``Sec. 113. Applications.
``Sec. 114. Consideration of applications.
``Sec. 115. Federal, State, and local contributions.
``Sec. 116. Limitations on uses of funds.


           ``SUBPART B--COMMUNITY CORPS DEMONSTRATION PROGRAM

``Sec. 118. Demonstration program.

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

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

 ``Part III--Community-based Programs, Training, and Other Initiatives

``Sec. 120. Community-based programs, training, and other initiatives.

                        ``Part IV--Clearinghouse

``Sec. 120A. Service-learning clearinghouse.

              ``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.
``Sec. 129A. Education awards program.
``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.

``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.
``Sec. 149. Use by participants with disabilities.
``Sec. 149A. Service-based scholarships to secondary school students.

            ``Subtitle E--National Civilian Community Corps

``Sec. 151. Purpose.
``Sec. 152. Establishment of National Civilian Community Corps program.
``Sec. 153. National service program.
``Sec. 154. Summer national service program.
``Sec. 155. National 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. 164. Annual evaluation.
``Sec. 166. Definitions.

                ``Subtitle F--Administrative Provisions

``Sec. 171. Family and medical leave.
``Sec. 172. Reports.
``Sec. 173. Supplementation.
``Sec. 174. Prohibition on use of funds.
``Sec. 175. Nondiscrimination.
``Sec. 176. Notice, hearing, and grievance procedures.
``Sec. 177. Nonduplication and nondisplacement.
``Sec. 178. State Commissions on National and Community Service.
``Sec. 179. Evaluation.
``Sec. 180. Engagement of participants.
``Sec. 181. Contingent extension.
``Sec. 182. Partnerships with schools.
``Sec. 183. Rights of access, examination, and copying.
``Sec. 184. Drug-free workplace requirements.
``Sec. 185. Consolidated application and reporting requirements.
``Sec. 186. Accountability for results.
``Sec. 187. Sustainability.
``Sec. 188. Capacity building.
``Sec. 188A. Expenses of attending meetings.
``Sec. 188B. Grant periods.
``Sec. 188C. Limitation on program grant costs.
``Sec. 188D. Notice requirement.
``Sec. 188E. Audits and reports.

      ``Subtitle G--Corporation for National and Community Service

``Sec. 191. Corporation for National and Community Service.
``Sec. 192. Board of Directors.
``Sec. 192A. Authorities and duties of the Board of Directors.

[[Page 15023]]

``Sec. 193. Chief Executive Officer.
``Sec. 193A. Authorities and duties of the Chief Executive Officer.
``Sec. 194. Officers.
``Sec. 195. Employees, consultants, and other personnel.
``Sec. 196. Administration.
``Sec. 196A. Corporation State offices.

          ``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.

      ``Subtitle I--American Conservation and Youth Service 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.

        ``Subtitle J--America's Promise: The Alliance for Youth

``Sec. 199N. Authority to provide assistance.

             ``TITLE II--MODIFICATIONS OF EXISTING PROGRAMS

                       ``Subtitle A--Publication

``Sec. 201. Information for students.
``Sec. 202. Exit counseling for borrowers.
``Sec. 203. Department information on deferments and cancellations.
``Sec. 204. Data on deferments and cancellations.

                   ``Subtitle B--Youthbuild Projects

``Sec. 211. Youthbuild projects.

           ``Subtitle C--Amendments to Student Literacy Corps

``Sec. 221. Amendments to Student Literacy Corps.

                ``TITLE III--POINTS OF LIGHT FOUNDATION

``Sec. 301. Short title.
``Sec. 302. Purposes.
``Sec. 303. Authority.
``Sec. 304. Grants to the Foundation.
``Sec. 305. Eligibility of the Foundation for grants.

       ``TITLE IV--PROJECTS HONORING VICTIMS OF TERRORIST ATTACKS

``Sec. 401. Projects.

               ``TITLE V--AUTHORIZATION OF APPROPRIATIONS

``Sec. 501. Authorization of appropriations.

                  ``TITLE VI--MISCELLANEOUS PROVISIONS

``Sec. 601. Amtrak waste disposal.
``Sec. 602. Exchange program with countries in transition from 
              totalitarianism to democracy.''.

     SEC. 4002. TABLE OF CONTENTS FOR THE DOMESTIC VOLUNTEER 
                   SERVICE ACT OF 1973.

       Section 1(b) of the Domestic Volunteer Service Act of 1973 
     (42 U.S.C. 4950 note) is amended to read as follows:
       ``(b) Table of Contents.--The table of contents is as 
     follows:

``Sec. 1. Short title; table of contents.
``Sec. 2. Volunteerism policy.

           ``TITLE I--NATIONAL VOLUNTEER ANTIPOVERTY PROGRAM

               ``Part A--Volunteers in Service to America

``Sec. 101. Statement of purpose.
``Sec. 102. Authority to operate VISTA program.
``Sec. 103. Selection and assignment of volunteers.
``Sec. 104. Terms and periods of service.
``Sec. 105. Support service.
``Sec. 106. Participation of beneficiaries.
``Sec. 107. Participation of younger and older persons.
``Sec. 108. Limitation.
``Sec. 109. Applications for assistance.

                  ``Part B--University Year for VISTA

``Sec. 111. Statement of purpose.
``Sec. 112. Authority to operate University Year for VISTA program.
``Sec. 113. Special conditions.

                  ``Part C--Special Volunteer Programs

``Sec. 121. Statement of purpose.
``Sec. 122. Authority to establish and operate special volunteer and 
              demonstration programs.
``Sec. 123. Technical and financial assistance.

               ``TITLE II--NATIONAL SENIOR SERVICE CORPS

``Sec. 200. Statement of purposes.

             ``Part A--Retired and Senior Volunteer Program

``Sec. 201. Grants and contracts for volunteer service projects.

                  ``Part B--Foster Grandparent Program

``Sec. 211. Grants and contracts for volunteer service projects.

                   ``Part C--Senior Companion Program

``Sec. 213. Grants and contracts for volunteer service projects.

                      ``Part D--General Provisions

``Sec. 221. Promotion of National Senior Service Corps.
``Sec. 222. Payments.
``Sec. 223. Minority group participation.
``Sec. 224. Use of locally generated contributions in National Senior 
              Service Corps.
``Sec. 225. Programs of national significance.
``Sec. 226. Adjustments to Federal financial assistance.
``Sec. 227. Multiyear grants or contracts.
``Sec. 228. Participation and income level.
``Sec. 229. Continuity of service.
``Sec. 229A. Training and research.

                    ``Part E--Demonstration Programs

``Sec. 231. Authority of Director.
``Sec. 232. Prohibition.

              ``TITLE IV--ADMINISTRATION AND COORDINATION

``Sec. 401. Political activities.
``Sec. 402. Special limitations.
``Sec. 403. Labor standards.
``Sec. 404. Joint funding.
``Sec. 405. Prohibition of Federal control.
``Sec. 406. Coordination with other programs.
``Sec. 407. Prohibition.
``Sec. 408. Distribution of benefits between rural and urban areas.
``Sec. 409. Application of Federal law.
``Sec. 410. Nondiscrimination provisions.
``Sec. 411. Eligibility for other benefits.
``Sec. 412. Legal expenses.
``Sec. 413. Definitions.
``Sec. 414. Audit.
``Sec. 415. Reduction of paperwork.
``Sec. 416. Review of project renewals.
``Sec. 417. Protection against improper use.
``Sec. 418. Income verification.

               ``TITLE V--AUTHORIZATION OF APPROPRIATIONS

``Sec. 501. National volunteer antipoverty programs.
``Sec. 502. National Senior Service Corps.
``Sec. 503. Administration and coordination.
``Sec. 504. Availability of appropriations.

           ``TITLE VI--AMENDMENTS TO OTHER LAWS AND REPEALERS

``Sec. 601. Supersedence of Reorganization Plan Number 1 of July 1, 
              1971.
``Sec. 602. Creditable service for civil service retirement.
``Sec. 603. Repeal of title VIII of the Economic Opportunity Act.
``Sec. 604. Repeal of title VI of the Older Americans Act.''.

             TITLE V--EFFECTIVE DATE AND SENSE OF CONGRESS

     SEC. 5001. EFFECTIVE DATE.

       Unless specifically provided otherwise, the amendments made 
     by this Act shall take effect on the date of enactment of 
     this Act.

     SEC. 5002. SERVICE ASSIGNMENTS AND AGREEMENTS.

       (a) Service Assignments.--Changes pursuant to this Act in 
     the terms and conditions of terms of service and other 
     service assignments under the national service laws 
     (including the amount of the education award) shall apply 
     only to individuals who enroll or otherwise begin service 
     assignments not earlier than the date that is 90 days after 
     the date of enactment of this Act, except when agreed upon by 
     all interested parties.
       (b) Agreements.--Changes pursuant to this Act in the terms 
     and conditions of grants, contracts, or other agreements 
     under the national service laws shall apply only to such 
     agreements entered into not earlier than the date that is 90 
     days after the date of enactment of this Act, except when 
     agreed upon by all the parties to such agreements.

     SEC. 5003. SENSE OF CONGRESS.

       It is the sense of Congress that the Corporation should, in 
     all of its communications, distinguish individuals receiving 
     stipends or allowances from volunteers by--
       (1) referring to participants in AmeriCorps under the 
     National and Community Service Act of 1990 (42 U.S.C. 12501 
     et seq.) as ``members'';
       (2) referring to participants in the Foster Grandparent 
     Program as ``Foster Grandparents''; and
       (3) referring to participants in the Senior Companion 
     Program as ``Companions''.

     SEC. 5004. RECRUITMENT AND APPLICATION MATERIALS IN LANGUAGES 
                   OTHER THAN ENGLISH.

       It is the sense of Congress that the programs established 
     or authorized by this Act, and those which receive funding 
     under the National and Community Service Act of 1990 (42 
     U.S.C. 12501 et seq.) or the Domestic and Volunteer Service 
     Act of 1973 (42 U.S.C. 4950 et seq.) are encouraged to 
     provide recruitment and application materials in languages 
     other than English, if applicable, in order to serve 
     communities of limited English proficiency, and that such 
     programs may use such funding to provide and distribute such 
     materials.

  Mr. McCAIN. Mr. President, I am grateful to join my colleagues, 
Senators Evan Bayh, Ted Kennedy, and

[[Page 15024]]

Barbara Mikulski in reintroducing the Call to Service Act of 2003. This 
important legislation significantly expands opportunities for citizens 
to serve their country as community volunteers and in homeland security 
functions.
  This legislation expands legislation that I introduced with senator 
Bayh in 2001. A key component of the original McCain/Bayh proposal 
became law last year. To meet the changing personnel needs of today's 
military, the Defense Department will now have a new, shorter-term 
enlistment option. Individuals who volunteer to serve under this new 
program serve on active duty for 15 months after their initial military 
training and can complete the remainder of their obligation by choosing 
service on active duty, in the Selected Reserve or in the Individual 
Ready Reserve, which can be fulfilled by in a civilian national service 
program such as the Peace Corps or AmeriCorps). In return for service, 
the legislation provides loan up to $18,000, an educational allowance 
under the Montgomery GI Bill. I am encouraged by the excitement 
expressed by the Pentagon in meetings about the implementation of the 
program.
  Two months after our legislation was introduced, President Bush made 
service programs a centerpiece of his 2002 State of the Union address. 
Unfortunately, since the speech, there has not been much followthrough 
on the part of this Administration.
  From the time President Bush was the Governor of Texas, through his 
experience as President, he has proudly pointed out the successes of 
this program. Yet the Fiscal Year 2003 Omnibus Appropriations bill he 
sent to the Congress forced cuts in the program. Combined with a 50,000 
cap placed on the number of AmeriCorps volunteers, AmeriCorps now faces 
a crisis.
  My office has been inundated by phone calls from nervous AmeriCorps 
volunteers in recent days. They are all expressing the same fear that 
they will not have the opportunity to continue their service to our 
communities. Idealistic young men and women in this country got excited 
when they heard the President promise increased opportunities to serve. 
It is now time for the Congress and the President to expand 
opportunities to serve.
  There is no shortage of causes that volunteers are eager to fix. We 
have failing schools, desperate for good teachers. Children in our 
poorest communities are growing up in need of mentors. Millions of 
elderly Americans desperately want to stay in their homes and out of 
nursing facilities, but cannot do so without help with the small tasks 
of daily life. More and more of our communities are being devastated by 
natural disasters. Many of the AmeriCorps volunteers work for 
chronically understaffed organizations such as Boys and Girls Clubs, 
Habitat for Humanity and the Red Cross. I have to ask why would anyone 
think we should do anything except increase AmeriCorps to provide 
opportunities for as many people as possible to serve?
  Not only does the community as a whole suffer when AmeriCorps is cut, 
but those who are eager to serve are affected as well. Currently, over 
490 individuals serve in Arizona. Many of 
Arizona's AmeriCorps volunteers take advantage of the educational 
opportunities that go along with their service. To date, over 2,100 
Arizona residents have taken advantage of the $4,725 to help pay for 
college or pay back student loans. The fewer the number of slots 
available for AmeriCorps volunteers, the fewer the number of men and 
women who will be able to take advantage of this important opportunity.
  I am grateful Senators Bond and Mikulski are working to ensure that 
the OMB ruling on the use of the education trust fund is used. This 
will ensure that the cut in the number of volunteers is less than 
originally feared. However make no mistake, there will be far fewer 
volunteers in 2003.
  Our legislation seeks to increase the opportunity to serve in 
AmeriCorps. The Call to Service Act increases the number of people who 
volunteer for AmeriCorps by 25,000 per year until 175,000 people are 
serving in AmeriCorps each year for a five year period. This is a 
125,000 increase in volunteers over the current 50,000 volunteers. Many 
of these new positions will be dedicated to homeland security. This 
legislation links AmeriCorps to Homeland Defense by directing the 
Corporation for National Service to work with the Department of 
Homeland Security to determine ways of promoting national security 
through service programs.
  This legislation also expands eligibility for willing and able 
seniors to volunteer in a variety of capacities through Senior Corps, 
including senior companion programs, tutoring, providing long-term 
care, and serving as foster grandparents.
  During my failed Presidential campaign in 2000, I had the opportunity 
to meet with students all across the country. I was deeply moved by the 
strong desire these young men and women expressed to serve their 
country. While I encourage military service to those I meet, I 
recognize this type of service is not for all. Our legislation 
increases the opportunities for these citizens.
  The response to the terrorist attacks of 9/11 brought out the best in 
the citizens of the United States. Americans reached out to their 
friends, neighbors and those in their communities. Many examples of 
serving causes greater than their self interest abound. This dedication 
to volunteer service is still alive today. We cannot continue to wait 
to provide expanded opportunities for national service. Congress should 
no longer delay in taking action on legislation to provide 
opportunities for Americans to serve.
  Mr. BAYH. Mr. President, I am privileged to reintroduce the ``Call to 
Service Act'' with my colleagues, Senator John McCain, Senator Ted 
Kennedy and Senator Barbara Mikulski--all great leaders on national 
service. I am proud to join with them today to offer this significant 
expansion of national service opportunities for all Americans--young 
and old, affluent, people of more modest means, all united in their 
devotion to serving America.
  In November 2001, Senator McCain and I introduced the ``Call to 
Service Act'' in an attempt to harness the spirit and overwhelming 
patriotism of our citizens after September 11. We wanted to give 
concrete opportunities to the countless Americans who were asking what 
they could do to give back to their country.
  Weeks after we introduced our bill, we were encouraged when the 
President made his own more modest service proposals a rhetorical 
centerpiece of his 2002 State of the Union address. In that speech, 
President Bush promised a significant expansion of the AmeriCorps 
program. He said, ``We want to be a nation that serves goals larger 
than self. We've been offered a unique opportunity, and we must not let 
this moment pass.''
  Unfortunately, the President is in danger of letting the moment pass. 
And now, almost a year and a half later, the promises of that speech 
sound hollow. The administration's efforts to expand service have been 
disappointingly lackluster. National Service expansion was held hostage 
in the last Congress by members of the President's own party on the far 
right, while he stood idly by.
  In fact, Americans now have fewer opportunities to serve than before. 
In my State of Indiana, we are facing a 92 percent cut in AmeriCorps 
positions. Last year, there were nearly 400 full-time equivalent 
positions available to serve in Indiana. This year, there will only be 
fewer than 40 positions. This will have a dramatic impact on the 
AmeriCorps programs throughout Indiana and on Hoosiers throughout the 
State. It is a very real possibility that Indiana will only have one 
AmeriCorps program this year. Children are not going to be tutored and 
mentored, homes are not going to be built, neighborhoods are not going 
to be cleaned up, and communities are going to be left behind. Indiana 
is not unique, States across the country are facing similar reductions 
in programs and services.
  I am grateful to Senators Mikulski and Bond for their efforts to 
ensure that the OMB method of accounting is used to determine the 
number of AmeriCorps positions available this year. With this change, 
there will still

[[Page 15025]]

be large reductions in AmeriCorps, but the damage will not be quite as 
severe.
  As AmeriCorps faces its greatest challenge since it was created, it 
is important to restate our commitment to this program. Our legislation 
will expand AmeriCorps by 25,000 additional members each year for a 
total of 175,000 members in five years. It will continue to utilize 
volunteers to support homeland security functions to help meet our 
Nation's new security challenges in a smart, cost-efficient manner. Our 
legislation includes strong accountability measures to ensure that the 
funds and the volunteers will be devoting themselves to activities and 
programs that really make a difference, really work. It expands 
opportunities for our seniors to serve, so that as the baby boom 
generation retires they can give back to their country.
  We stand here today to offer this consensus approach because we know 
we have arrived at a critical juncture in the cause of expanding 
national service. We are at risk of missing the moment if we don't act.
  Frankly, what is called for here is leadership. We are attempting to 
provide that today by offering this consensus approach, Republicans and 
Democrats, leader of the committee, those of us who are not on the 
committee.
  But the President must get engaged. He's said all the right things, 
now it is important that he do the right thing. If we're going to get a 
significant commitment to national service it is going to take more 
than lip service, and I hope that he will step forward and provide the 
kind of leadership that is necessary before this opportunity slips away 
from us.
  The moment has not yet passed us. Americans are eager to serve. We 
are eager to enact this legislation, put an end to this sad chapter for 
national service, and build toward a Nation where the great energies 
and good intentions of our citizens are put to productive use.
                                 ______
                                 
      By Mr. LUGAR (by request):
  S. 1275. A bill to establish a comprehensive federal program to 
provide benefits to U.S. victims of international terrorism, and for 
other purposes; to the Committee on Foreign Relations.
  Mr. LUGAR. Mr. President, by request, I introduce for appropriate 
reference a bill to establish a comprehensive Federal program to 
provide benefits to U.S. victims of international terrorism.
  This proposed legislation has been requested by the Department of 
State, and I am introducing it in order that there may be a specific 
bill to which members of the Senate and the public may direct their 
attention and comments.
  I reserve my right to support or oppose this bill, as well as to make 
any suggested amendments to it, when the matter is considered by the 
Committee on Foreign Relations.
  I ask unanimous consent that the bill be printed in the Record 
together with a letter addressed to me from the Assistant Secretary of 
State for Legislative Affairs.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1275

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SEC. 101. SHORT TITLE.

       This Act may be cited as the ``Benefits for Victims of 
     International Terrorism Act of 2003''.

     SEC. 102. ESTABLISHMENT OF PROGRAM.

       There is established the Benefits for Victims of 
     International Terrorism Program (``Program'') under which 
     monetary awards shall be made in accordance with this Act to 
     eligible individuals who are physically injured, killed, or 
     held hostage as a result of an act of international 
     terrorism.

     SEC. 103. DEFINITIONS.

       In this Act, the following definitions apply:
       (a) Act of International Terrorism.--The term ``act of 
     international terrorism'' means an activity that constitutes 
     terrorism within the definition provided in Section 2(15) of 
     the Homeland Security Act of 2002 and that was committed by 
     foreign nationals for foreign governments (or the agents 
     thereof) and directed, in whole or in part, at the United 
     States or at an individual because of the individual's status 
     as a national of the United States.
       (b) Claimant.--The term ``claimant'' means an individual 
     filing a claim for benefits under this Act. In the case of an 
     individual who died as the direct result of the act of 
     international terrorism, any individual who is eligible to 
     recover under section 107(a) may be a claimant. In the case 
     of an individual who suffered physical injury or was held 
     hostage as the direct result of an act of international 
     terrorism, the claimant shall be the individual who suffered 
     the physical injury or was held hostage, except that a parent 
     or legal guardian may file a claim on behalf of an individual 
     who is less than 18 years of age, incompetent or 
     incapacitated.
       (c) Child.--The term ``child'' shall have the meaning given 
     to it by 42 U.S.C. 3796b(2).
       (d) Department.--The term ``Department'' means the 
     Department of State.
       (e) National of the United States.--The term ``national of 
     the United States'' has the meaning given in section 101(a) 
     of the Immigration and Nationality Act (8 U.S.C. 1101(a)).
       (f) Physical Injury.--The term ``physical injury'' means an 
     injury to the body, from a source external to the body, that 
     directly results in partial or total physical disability, 
     incapacity, or disfigurement.
       (g) United States.--The term ``United States'' means the 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, the Commonwealth of the Mariana Islands, the 
     territories and possession of the United States, the 
     territorial sea of the United States, and the airspace above 
     them.

     SEC. 104. ADMINISTRATION.

       (a) Threshold Determination.--
       (1) Upon the occurrence of a terrorist incident, the 
     Secretary of State, in consultation with the Attorney General 
     and the Secretaries of Defense, Homeland Security and the 
     Treasury, shall promptly determine in writing whether an act 
     of international terrorism as defined in section 103(a) of 
     this Act has taken place. Any such determination shall be 
     published in the Federal Register.
       (2) The Secretary of State's determination under this 
     section shall be final and conclusive, and it shall not be 
     subject to review in any judicial, administrative or other 
     proceedings.
       (b) Adjudication and Payment.--When a threshold 
     determination set forth in subsection (a) is made, the 
     Department shall have jurisdiction to receive, examine, 
     adjudicate, and render final decisions, and pay awards with 
     respect to claims filed under section 105 in accordance with 
     the provisions of this Act.

     SEC. 105. FILING OF CLAIMS.

       (a) In General.--Claims for benefits under the Program 
     shall be filed with the Department on the form developed 
     under subsection (b).
       (b) Claim Form.--
       (1) The Department shall develop a form that claimants 
     shall use when submitting claims under subsection (a).
       (2) The claim form at a minimum shall request--
       (A) in the case of a claim filed for a death benefit with 
     respect to a decedent, information demonstrating the 
     decedent's death as a direct result of the act of 
     international terrorism and information demonstrating that 
     the claimant is eligible to recover under the Act;
       (B) in the case of a claim not involving a death, 
     information demonstrating the physical harm that the claimant 
     suffered as a direct result of the act of international 
     terrorism or information demonstrating the period the 
     claimant was held hostage as a direct result of the act of 
     international terrorism; and
       (C) in the case of a claim filed by a parent or legal 
     guardian, information demonstrating the claimant's status a 
     parent or legal guardian.
       (3) The claim form shall state clearly and conspicuously 
     the information contained in section 112(c) of this Act.

     SEC. 106. ELIGIBILITY.

       (a) In General.--The Department shall review each claim 
     filed under this Program and determine whether the claimant 
     is an eligible individual under subsection (b) of this 
     section or has filed a claim on account of the death of an 
     eligible individual under subsection (b).
       (b) Eligible Individuals.--An eligible individual is a 
     victim who, as of the date on which the act of international 
     terrorism occurred,
       (1) was a national of the United States; and
       (2)(A) died as the direct result of the act of 
     international terrorism,
       (B) suffered physical injury as the direct result of the 
     act of international terrorism, or
       (C) was held hostage as a direct result of an act of 
     international terrorism and not solely for ransom.
       (c) Exclusion for Participants or Conspirators in Acts of 
     Terrorism.--A participant or conspirator in any act of 
     international terrorism, or a representative of such 
     individual, shall not be an eligible individual.
       (d) Exclusion for Military Personnel.--This Program does 
     not apply to any claim arising out of injury, death, or 
     period as a hostage sustained by a member of the U.S. Armed 
     Forces while serving on active duty.

[[Page 15026]]

       (e) September 11th Victim Compensation Fund.--
     Notwithstanding any other provision in this Act, no 
     individual who is or was eligible to recover under the 
     September 11th Victim Compensation Fund of 2001 shall be 
     eligible to recover under this Act.

     SEC. 107. NATURE OF AWARDS.

       (a) Death Benefits.--In any case in which the Department 
     determines, under regulations issued pursuant to this Act, 
     that an eligible individual has died as the direct and 
     proximate result of an act of international terrorism, the 
     Department shall award a benefit to the survivor or survivors 
     in the same manner and the same amount as death benefits are 
     paid pursuant to the Public Safety Officers' Benefits Program 
     under subpart 1 of part L of title I of the Omnibus Crime 
     Control and Safe Streets Act of 1968 (42 U.S.C. 3796 et 
     seq.).
       (b) Injury or Hostage Benefit.--In the event the claimant 
     was physically injured or held hostage as a direct result of 
     an act of international terrorism, the Department shall award 
     a benefit to the claimant in an amount determined by the 
     Department up to, but not to exceed, the amount provided for 
     under the preceding subsection. The Secretary of State may 
     issue regulations regarding the amount of benefits to be 
     provided under this subsection for categories of injuries or 
     for durations of time as a hostage.
       (c) No Fault Program.--Awards shall be made without regard 
     to the negligence or any other theory of liability of the 
     claimant or of the individual on whose behalf the claimant is 
     filing a claim.
       (d) Reversion of Amounts to the Funds.--If no person is 
     entitled to receive the amount awarded under the above 
     subsections, the amount shall revert to the Fund.

     SEC. 108. LIMITATIONS ON CLAIMS.

       (a) Prohibition on Double Recovery.--No benefit is payable 
     under this Act with respect to a victim having been injured 
     or held hostage if a benefit is payable under this Act with 
     respect to the death of such victim. In the event that a 
     payment is made under this Act on account of death or period 
     as a hostage and a death benefit subsequently becomes payable 
     for the death of the same victim, such death benefit shall be 
     reduced by amounts previously awarded.
       (b) Time Limitation for Filing.--No claim may be filed on 
     the basis of an act of international terrorism after the date 
     that is 2 years after the date of publication in the Federal 
     Register of the relevant determination under section 104(a) 
     of this Act.

     SEC. 109. INTERNATIONAL TERRORISM BEFORE EFFECTIVE DATE.

       (a) International Terrorism Before Effective Date.--
     Benefits may be awarded under this Act, subject to the 
     provisions of subsection (b) of this section, to eligible 
     individuals for acts of international terrorism that took 
     place before the effective date of this Act and which 
     occurred on or after November 1, 1979.
       (b) Determination.--The Secretary of State, in consultation 
     with the Attorney General and the Secretaries of Defense, 
     Homeland Security and the Treasury, shall issue, promptly 
     upon the request of a claimant potentially covered under 
     subsection (a), a determination whether an incident that 
     occurred on or after November 1, 1979, and before the date of 
     enactment of this Act was an act of international terrorism. 
     Such requests will be considered only if made within one year 
     after the date of enactment of this Act. Any such 
     determination shall be published in the Federal Register.

     SEC. 110. AUTHORIZATION.

       (a) Authorization.--There is established for the purpose of 
     providing benefits under this Act a Victims of International 
     Terrorism Benefits Fund (``Fund''). In addition to amounts 
     otherwise authorized to be appropriated for the Department of 
     State, there are authorized to be appropriated to the 
     Department of State for deposit into the Fund such sums as 
     may be necessary to pay awards under this Act and to 
     administer this Program.
       (1) Amounts in the Fund shall be available until expended.
       (2) Contributions.--The Secretary of State is authorized to 
     accept such amounts as may be contributed by individuals, 
     business concerns, foreign governments, or other entities for 
     the payment of awards certified under this Act and such 
     amounts may be deposited directly into the Fund.
       (3) Unexpended balances of expired appropriations available 
     to the Department of State may be transferred directly into 
     the Fund for the payment of awards under this Act and, to the 
     extent and in such amounts as provided in appropriations 
     acts, for the costs to administer this Program.

     SEC. 111. SUBROGATION.

       The United States shall be subrogated, to the extent of the 
     payments, to any recovery in litigation or settlement of 
     litigation related to an injury, death, or period of a 
     hostage for which payment was made under the Program. Any 
     amounts recovered under this subsection shall be deposited 
     into the Fund established by section 110(a).

     SEC. 112. ADMINISTRATIVE PROVISIONS.

       (a) Rule and Procedures.--The Secretary of State may issue 
     such rules and procedures as may be necessary to carry out 
     this Act, including rules with respect to choice of law 
     principles, admitting agents or other persons to 
     representation before the Department of claimants under this 
     Act, and the nature and maximum amount of fees that such 
     agent or other person may charge for such representation.
       (b) Acts Committed to Officer's Discretion.--Any action 
     taken or omitted by an officer of the United States under 
     this Act is committed to the discretion of such officer.
       (c) Civil Actions Against Foreign States.--
       (1) A person who by a civil action has obtained and 
     received full satisfaction of a judgment against a foreign 
     state or government or its agencies or instrumentalities, or 
     against the United States or its agencies or 
     instrumentalities, for death, injury, or period as a hostage 
     due to an act of international terrorism shall not receive an 
     award under this Act based on the same act of international 
     terrorism.
       (2) A person who has accepted benefits pursuant to an award 
     under this Act relating to an act of international terrorism 
     shall not thereafter commence or maintain in a court of the 
     United States a civil action based on the same act of 
     international terrorism against a foreign state or government 
     or its agencies or instrumentalities or against the United 
     States or its agencies or instrumentalities.

     SEC. 113. NO JUDICIAL REVIEW.

       Decisions made under this Act shall not be subject to 
     review in any judicial, administrative or other proceeding.

     SEC. 114. CONFORMING AMENDMENTS.

       (a) Section 201 of the Terrorism Risk Insurance Act of 2002 
     (Public Law 107-297) is amended by adding the following as 
     new subsection (e):
       ``(e) Subsection (a) shall not apply to any judgment 
     obtained pursuant to a complaint filed after [the date of 
     submission of the Benefits for Victims of International 
     Terrorism Act of 2003].''
       (b) Section 1610(f) of Title 28, United States Code (28 
     U.S.C. 1610(f)), is amended by adding the following at the 
     end as new subparagraph (4):
       ``(4) Subsection (f) shall not apply to any judgment 
     obtained pursuant to a complaint filed after [the date of 
     submission of the Benefits for Victims of International 
     Terrorism Act of 2003].''
                                  ____



                                     U.S. Department of State,

                                     Washington, DC, June 5, 2003.
     Hon. Richard G. Lugar,
     Chairman, Committee on Foreign Relations, U.S. Senate.
       Dear Mr. Chairman: We are transmitting for your 
     consideration a draft bill to establish a program to provide 
     benefits for United States victims of international 
     terrorism.
       The proposed legislation is based on the following three 
     principles:
       The program should provide the same benefits to those with 
     low incomes as those with greater means;
       Victims should receive compensation as quickly as possible; 
     and
       The amount of compensation should be on par with that 
     provided to families of public safety officers killed in the 
     line of duty (currently $262,000).
       Thus, the government program should not be designed as the 
     primary means of compensating victims and victims' families 
     for their losses, but rather should complement life 
     insurance, savings, and other private financial measures.
       In contrast to a mechanism that uses blocked assets and 
     rewards those that can secure judgements before such assets 
     are exhausted, a fund based on the above principles would 
     provide compensation for all victims fairly and equitably. It 
     also preserves the President's prerogatives in the area of 
     foreign affairs.
       The proposed fund would be administered within the 
     Department of State. The legislation includes authorization 
     for appropriations necessary to compensate victims. In 
     addition to these costs, a benefits adjudication unit will be 
     established within the Department soon after enactment.
       The Office of Management and Budget advises that there is 
     no objection from the standpoint of the Administration's 
     program to the submission of this proposal to Congress.
       We urge your support for passage of this legislation, which 
     provides compensation for U.S. victims of international 
     terrorism in a fair and rational way.
           Sincerely,

                                                Paul V. Kelly,

                                              Assistant Secretary,
     Legislative Affairs.

                          ____________________