[Senate Report 106-46]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 107

106th Congress                                                   Report
                                 SENATE
 1st Session                                                     106-46

======================================================================



 
     PEACE CORPS AUTHORIZATION BILL, FISCAL YEARS 2000 THROUGH 2003

                                _______
                                

                  May 11, 1999.--Ordered to be printed

_______________________________________________________________________


          Mr. Helms, from the Committee on Foreign Relations,
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 669]

    The Committee on Foreign Relations, to which was referred 
the bill (H.R. 669) to amend the Peace Corps Act to authorize 
appropriations for fiscal years 2000 through 2003 to carry out 
that Act, and for other purposes, having considered the same, 
reports favorably thereon without amendment and recommends that 
the bill do pass.

                                CONTENTS

                                                                   Page

Background and purpose...........................................     1
The Peace Corps..................................................     2
  Expanding the number of volunteers.............................     2
  Fulfilling President Reagan's 10,000-volunteer objective.......     3
Committee action.................................................     4
Cost estimate....................................................     4
Evaluation of regulatory impact..................................     6
Section-by-section analysis......................................     6
Changes in existing law..........................................     7

                         Background and Purpose

    The primary purpose of H.R. 669 is to authorize the 
expansion of the Peace Corps to President Ronald Reagan's 
original goal of 10,000 volunteers. Under H.R. 669, the 10,000-
volunteer target would be reached by fiscal year 2003. H.R. 669 
also updates several outdated provisions of the Peace Corps 
Act.

                            The Peace Corps

    The Peace Corps was created by an Executive Order signed by 
President John F. Kennedy on March 1, 1961. Following the 
President's lead, the Congress affirmed his action in law on 
September 22, 1962 (Public Law 87-293).
    In the 38 years that have followed, more than 153,000 
Americans have served in the Peace Corps in 134 countries. They 
have addressed critical development needs on a person-to-person 
level, helping communities gain access to clean water; grow 
more food; and prevent the spread of disease. These volunteers 
have taught English, math, and science and helped small 
entrepreneurs start new businesses. In the course of their 
work, they have learned 180 languages and dialects.
    The Peace Corps has many notable returned alumni, some of 
whom serve in the 106th Congress. Senator Paul Coverdell is a 
former Peace Corps Director. The 106th Congress also boasts six 
Members who are former volunteers: Senator Christopher Dodd and 
Representatives Sam Farr, Tony Hall, Tom Petri, Christopher 
Shays, and James Walsh.
    The Peace Corps reached peak volunteer numbers in 1966 with 
15,556 volunteers on its rolls and a budget (adjusted for 1992 
dollars) of $470 million. Volunteer numbers reached their 
lowest point of 5,219 in fiscal year 1987. Since then, that 
number has risen to a 1999 level of 6,700. The fiscal year 1999 
appropriation was $241 million.
    Today, interest in the Peace Corps continues to grow. In 
1997, more than 150,000 individuals contacted the Peace Corps 
to request information on volunteering. This represents a 40-
percent increase in requests over 1994 figures. The Peace Corps 
budget in this same period has only been able to support a 2-
percent increase in volunteer numbers. In view of this 
interest, both the Executive Branch and the Congress have 
renewed previous calls for a significant expansion of the Peace 
Corps toward a goal of 10,000 volunteers.

                   EXPANDING THE NUMBER OF VOLUNTEERS

    In 1985, President Ronald Reagan made it the policy of his 
administration to seek the expansion of the Peace Corps to 
10,000 volunteers. This goal was later set into law by the 
International Security and Development Cooperation Act of 1985 
(Public Law 99-83) with the statement that the Peace Corps 
should maintain that volunteer level ``consistent with 
programmatic and fiscal considerations.'' Despite a target 
which, from its inception, enjoyed the support of both the 
President and Congress, the Peace Corps has not yet reached the 
10,000-volunteer goal.
    The growth of the Peace Corps has been moderated by a 
number of issues including management and income concerns. To 
its credit, the Peace Corps has taken steps to streamline 
agency operations to channel more of its limited resources to 
volunteers. Headquarters staffing has been reduced 13 percent 
since 1993. Five of the 16 domestic recruiting offices and 13 
country programs have been closed since fiscal year 1996. Since 
fiscal year 1992, the Corps closed 15 missions (Cook Islands, 
Nigeria, Seychelles, Comoros, Marshall Islands, Sao Tome and 
Principe, Tunisia, Czech Republic, Hungary, Swaziland, Uruguay, 
Chile, Botswana, Fiji and Tuvalu). Closures in countries like 
Fiji and Chile were based upon a decision that the need for 
volunteers had been reduced by significant development in these 
countries. These changes have resulted in a drop (in constant 
dollars) of per volunteer costs of 14 percent from fiscal years 
1993 to 1998.
    The Committee wishes to underscore the growing importance 
of anticipating new kinds of threats to volunteers, including 
natural disasters, terrorism, crime, and civil strife 
associated with emerging democracies. It notes with approval 
the Agency's continued focus on safety and security of Peace 
Corps volunteers serving abroad. The Committee supports the 
designation of a senior level coordinator for volunteer safety 
and overseas security and the Agency's stated goal to continue 
developing and implementing comprehensive safety measures in a 
proactive manner.

        FULFILLING PRESIDENT REAGAN'S 10,000-VOLUNTEER OBJECTIVE

    In 1998, President Clinton renewed President Reagan's call 
for increasing the size of the Peace Corps. Although the 
initial plan was to bring the Peace Corps up to the 10,000 
volunteer level by the year 2000, financial realities have 
caused that ambitious objective to be spread out over an 
additional 3 years (2003).
    The projected annual increase in the Peace Corps budget 
under this authorization would represent a 51-percent growth in 
the size of the organization over 4 years. As such, the 
additional 3 years of transitional time may prove useful as the 
Peace Corps adjusts its management structure to ensure that 
concerns about programming and volunteer support are adequately 
addressed. In general, the expansion of programs should be 
undertaken to the end that such programs are effectively 
integrated at home and abroad and the foreign policy of the 
United States is best served thereby.
    In fiscal year 1999, funding levels for the Peace Corps 
were increased from $222 million to $241 million. In his fiscal 
year 2000 budget, the President requested an increase to $270 
million. Under existing budget agreements, ``no growth'' 
assumptions mean that funding these significant increases in 
Peace Corps spending will require cuts in other foreign affairs 
programs.
    In terms of volunteers, the Peace Corps anticipates that 
the fiscal year 2000 request would permit it to expand to 8,000 
volunteers (see table below for further volunteer projections) 
by the end of the year. Primary growth areas generally would be 
the Caucasus, Central Asia and Africa, and particularly in 
South Africa, Jordan, China, Bangladesh and Mozambique.


----------------------------------------------------------------------------------------------------------------
                                            FY 1998     FY 1999     FY 2000     FY 2001     FY 2002     FY 2003
----------------------------------------------------------------------------------------------------------------
Approps in millions.....................         226         241         270         298         327         365
Volunteer numbers.......................       6,700       7,400       8,000       8,600       9,200      10,100
----------------------------------------------------------------------------------------------------------------
Source: Peace Corps.


    With increased funding, the Peace Corps anticipates that it 
would continue to expand the work of the Crisis Corps. This is 
an experienced group of volunteers who have the skills for 
rapid deployment to the most challenging disaster relief and 
humanitarian emergencies. In 1999, the existing 585 volunteer 
presence in Central America is being augmented by Crisis Corps 
members who are assisting with reconstruction and recovery 
activities like rebuilding homes and replanting crops. The 
Crisis Corps has also undertaken assignments in Cote d'Ivoire 
and Guinea (refugee assistance) and in Antigua, Madagascar, and 
the Czech Republic (reconstruction efforts).
    In sum, H.R. 669 would authorize the President's request 
for an appropriation of $270 million in fiscal year 2000 (a 12-
percent increase) and amounts through fiscal year 2003 to reach 
the 10,000-volunteer goal by the end of fiscal year 2003. These 
amounts would remain subject to appropriation and would 
therefore fall under the budget caps and subcommittee 
allocations in the budget and appropriations process.

                            Committee Action

    H.R. 669, to authorize appropriations for the Peace Corps 
was passed by the House of Representatives, received in the 
Senate, and referred to the Committee on Foreign Relations on 
March 3, 1999. It was considered by the Committee on March 23, 
1999 and, a quorum being present, was ordered reported to the 
Senate by a voice vote with a recommendation that the bill do 
pass. No record votes were taken during the Committee's 
consideration of H.R. 669.

                             Cost Estimate

    In accordance with rule XXVI, paragraph 11(a) of the 
Standing Rules of the Senate, the Committee provides the 
following estimates of the cost of this legislation prepared by 
the Congressional Budget Office.

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, March 25, 1999.
Hon. Jesse Helms,
Chairman, Committee on Foreign Relations,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office (CBO) 
has prepared the enclosed cost estimate for H.R. 669, a bill to 
amend the Peace Corps Act to authorize appropriations for 
fiscal years 2000 through 2003 to carry out that act, and for 
other purposes.
    If you wish further details on this estimate, we will be 
pleased to provide them.
            Sincerely,
                                          Barry B. Anderson
                                    (for Dan L. Crippen, Director.)
    Enclosure.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

H.R. 669--A bill to amend the Peace Corps Act to authorize 
        appropriations for fiscal years 2000 through 2003 to carry out 
        that act, and for other purposes

    Summary: H.R. 669 would authorize appropriations for the 
Peace Corps for fiscal years 2000 through 2003. CBO estimates 
that appropriation of the authorized amounts would result in 
additional outlays of $1.2 billion over the next five years. 
Because H.R. 669 would not affect direct spending or receipts, 
pay-as-you-go procedures would not apply.
    The bill contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not affect the budgets of state, local, or tribal 
governments.
    Estimated cost to the Federal Goverment: The estimated 
budgetary impact of H.R. 669 is shown in the following table. 
The costs of this legislation fall within budget function 150 
(international affairs).
    The estimate assumes enactment of the bill and subsequent 
appropriation of the authorized amounts by the beginning of 
each fiscal year. CBO used historical spending rates to 
estimate outlays.

                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                       FY1999    FY2000    FY2001    FY2002    FY2003    FY2004
----------------------------------------------------------------------------------------------------------------
                                        Spending Subject to Appropriation

Spending under current law for the Peace Corps:
  Budget authority\1\...............................       240         0         0         0         0         0
  Estimated outlays.................................       235        49         6         1         0         0
Proposed changes:
  Authorization level...............................         0       270       298       327       365         0
  Estimated outlays.................................         0       211       281       314       351        73
Spending under H.R. 669 for the Peace Corps:
  Authorization level\1\............................       240       270       298       327       365         0
  Estimated outlays.................................       235       260       287       315       351        73
----------------------------------------------------------------------------------------------------------------
\1\ The 1999 level is the amount appropriated for that year.


    Pay-as-you-go considerations: None.
    Intergovernmental and private-sector impact: The bill 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    Previous CBO estimate: On February 16, 1999, CBO prepared 
an estimate for H.R. 669 as ordered reported by the House 
Committee on International Relations. The bill ordered reported 
by the Senate Foreign Relations Committee is identical to the 
House bill, and the CBO estimates are also the same.
    Estimate prepared by: Joseph C. Whitehill.
    Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.

                    Evaluation of Regulatory Impact

    In accordance with rule XXVI, paragraph 11(b) of the 
Standing Rules of the Senate, the Committee has concluded that 
there is no regulatory impact from H.R. 669.

                      Section-by-Section Analysis


Section 1.--Authorization of appropriations for fiscal years 2000 
        through 2003 to carry out the Peace Corps Act

    This section amends the Peace Corps Act to provide the 
following authorizations of appropriations: fiscal year 2000--
$270 million, fiscal year 2001--$298 million, fiscal year 
2002--$327 million, fiscal year 2003--$365 million. The 
Committee understands that these amounts are consistent with 
Office of Management and Budget and Peace Corps estimates of 
amounts required to meet the 10,000-volunteer target by the end 
of fiscal year 2003. The Committee also understands that these 
amounts are already part of the administration's outyear 
projections for fiscal years 2001-2003.

Section 2.--Miscellaneous amendments to the Peace Corps Act

    Section 2(a) adds a new paragraph (13) to subsection 15(d). 
The new paragraph would exempt the Peace Corps from 49 U.S.C. 
40118 (the ``Fly America Act'') with respect to flights between 
two points abroad to the same extent other foreign service 
agencies are exempt from that section (22 U.S.C. 2214(d)).
    Under 49 U.S.C. subsection 40118(d), the Department of 
State and the Agency for International Development (AID) are 
exempt from the requirements of 49 U.S.C. 40118 for travel 
between two places outside the United States by employees and 
their dependents. Determining which carriers overseas are U.S. 
certified or have agreements with the United States that 
qualify them under section 40118 is a complex undertaking. 
Posts and individuals must make decisions in this area at the 
risk of having their travel costs disallowed. The Committee 
believes that administrative provisions affecting foreign 
service agencies should be as consistent as possible. For 
instance, a Peace Corps employee who is flying with an AID 
employee to attend a meeting should be able to fly on the same 
plane without fear of being penalized under section 40118. This 
provision would extend to Peace Corps employees and volunteers 
the same treatment now available to other foreign service 
agency employees.
    Section 2(b) makes technical changes to sections 5, 10 and 
15 of the Peace Corps Act (hereinafter the Act) to reflect 
changes in statutory citations that have occurred since 
enactment of the Act.
    Section 2(b)(1) strikes out ``Civil Service Commission'' in 
section 5(f)(1)(B) and inserts in lieu thereof ``Office of 
Personnel Management.'' The Civil Service Commission was 
replaced by the Office of Personnel Management in 1966.
    Section 2(b)(2) amends section 5(h) of the Act (22 U.S.C. 
2504(h)) in several respects. It strikes out references to the 
Federal Voting Assistance Act of 1955 (5 U.S.C. 2171 et seq.), 
the Act of June 4, 1954, chapter 264, section 4 (5 U.S.C. 73b), 
the Act of December 23, 1944, chapter 716, section 1, as 
amended (31 U.S.C. 492a) and inserts references to 5 U.S.C. 
5732 and 31 U.S.C. 3342. The Federal Voting Assistance Act has 
been repealed and replaced by a provision (42 U.S.C. 1973cc et 
seq.) which is available to all American citizens overseas. It 
is unnecessary, therefore, to consider volunteers Federal 
employees to provide them with the benefits of the Act; 
therefore, the reference to voter assistance in this provision 
can be deleted. The replacement of references to sections of 
titles 5 and 31 with references to 5 U.S.C. 5732 and 31 U.S.C. 
3342 reflect recodification of provisions relating to 
reimbursement for the cost of transportation of baggage and 
effects, and check cashing privileges in those titles. No 
substantive change is involved.
    Section 2(b)(3) replaces the reference to ``section 1757 of 
the Revised Statutes of the United States, as amended (5 U.S.C. 
16)'' with ``section 3331 of title 5, United States Code,'' 
reflecting the codification of the statutory oath for employees 
in 1966.
    Section 2(b)(4) replaces the reference to 31 U.S.C. 665(b) 
with ``31 U.S.C. 1342,'' reflecting the 1982 revision of title 
31.
    Section 2(b)(5) amends section 15(c) by striking out 
``Public Law 84-918 (7 U.S.C. 1881 et seq.)'' and inserting in 
lieu thereof ``subchapter VI of chapter 33, title 5, United 
States Code (5 U.S.C. 3371 et seq.).'' Section 15(c) of the 
Peace Corps Act authorizes training for employees at private 
and public agencies. The statutory provisions relating to 
employee training were transferred from title 7 to title 5 in 
1970. 22 U.S.C. 2514(c).
    Section 2(b)(6) amends paragraph 15(d)(2) by striking out 
``section 9 of Public Law 60-328 (31 U.S.C. 673)'' and inserts 
in lieu thereof ``31 U.S.C. 1346.'' This section of the Peace 
Corps Act authorizes the payment of expenses to attend meetings 
related to the Peace Corps Act. No substantive change is 
intended. It is another change required by the 1982 revision of 
title 31.322 U.S.C. subsection 2514(d)(2).
    Section 2(b)(7) strikes out ``without regard to section 
3561 of the Revised Statutes (31 U.S.C. 543)''. This statute, 
which contained a restriction on currency exchanges, has been 
repealed and apparently was not replaced.
    Section 2(b)(8) strikes out ``Foreign Service Act of 1946, 
as amended (22 U.S.C. 801 et seq.)'' and inserts in lieu 
thereof: ``Foreign Service Act of 1980, as amended (22 U.S.C. 
3901 et seq.)''. The Foreign Service Act was rewritten and 
renamed in 1980.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported are shown as follows (existing law to be 
omitted is enclosed in black brackets, new matter is printed in 
italic, existing law in which no change is proposed is shown in 
roman):

                            PEACE CORPS ACT

TITLE I--THE PEACE CORPS

           *       *       *       *       *       *       *



                             AUTHORIZATION

     Sec. 3. (a) * * *
    (b)(1) Authorizations of Appropriations.--[There are 
authorized to be appropriated to carry out the purposes of this 
Act $218,146,000 for fiscal year 1993, which are authorized to 
remain available until September 30, 1994.] There are 
authorized to be appropriated to carry out the purposes of this 
Act $270,000,000 for fiscal year 2000, $298,000,000 for fiscal 
year 2001, $327,000,000 for fiscal year 2002, and $365,000,000 
for fiscal year 2003.
    (2) Amounts authorized to be appropriated under paragraph 
(b)(1) for a fiscal year are authorized to remain available for 
that fiscal year and the subsequent fiscal year.

           *       *       *       *       *       *       *


                         PEACE CORPS VOLUNTEERS

    Sec. 5. (a) * * *

           *       *       *       *       *       *       *

    (f)(1) Any period of satisfactory service of a volunteer 
under this Act shall be credited in connection with subsequent 
employment in the same manner as a like period of civilian 
employment by the United States Government--
          (A) * * *
          (B) except as otherwise determined by the President, 
        for the purposes of determining seniority, reduction in 
        force, and layoff rights, leave entitlement, and other 
        rights and privileges based upon length of service 
        under the laws administered by the [Civil Service 
        Commission] Office of Personnel Management, the Foreign 
        Service Act of 1980, and every other Act establishing 
        or governing terms and conditions of service of 
        civilian employees of the United States Government:
    Provided, That service of a volunteer shall not be credited 
toward completion of any probationary or trial period or 
completion of any service requirement for career appointment.

           *       *       *       *       *       *       *

    (h) Volunteers shall be deemed employees of the United 
States Government for the purposes of the Federal Tort Claims 
Act and any other Federal tort liability statute, [the Federal 
Voting Assistance Act of 1955 (5 U.S.C. 2171 et seq.), the Act 
of June 4, 1954, chapter 264, section 4 (5 U.S.C. 73b 75), the 
Act of December 23, 1944, chapter 716, section 1, as amended 
(31 U.S.C. 492a),] section 3342 of title 31, United States 
Code, section 5732 and section 5584 of title 5, United States 
Code (and readjustment allowances paid under this Act shall be 
considered as pay for purposes of such section, and section 1 
of the Act of June 4, 1920 (41 Stat. 750), as amended (22 
U.S.C. 214).

           *       *       *       *       *       *       *

    (j) Upon enrollment in the Peace Corps, every volunteer 
shall take the oath prescribed for persons appointed to any 
office of honor or profit by [section 1757 of the Revised 
Statutes of the United States, as amended (5 U.S.C. 16) and 
shall swear (or affirm) that he does not advocate the overthrow 
of our constitutional form of government in the United States, 
and that he is not a member of an organization that advocates 
the overthrow of our constitutional form of government in the 
United States, knowing that such organization so advocates.] 
section 3331 of title 5, United States Code.

           *       *       *       *       *       *       *


                     GENERAL POWERS AND AUTHORITIES

    Sec. 10. (a) In the furtherance of the purposes of this 
Act, the President may--
          (1) * * *

           *       *       *       *       *       *       *

          (4) accept in the name of the Peace Corps and employ 
        or transfer in furtherance of the purposes of this Act 
        (A) voluntary services notwithstanding the provisions 
        of [31 U.S.C. 665(b)] section 1342 of title 31, United 
        States Code, and (B) any money or property (real, 
        personal or mixed, tangible or intangible) received by 
        gift, devise, bequest, or otherwise; and

           *       *       *       *       *       *       *


                          UTILIZATION OF FUNDS

    Sec. 15. (a) * * *

           *       *       *       *       *       *       *

    (c) Funds available under this Act may be used to pay costs 
of training employees employed or assigned pursuant to section 
7(a)(2) of this Act (through interchange or otherwise) at any 
State or local unit of government, public or private nonprofit 
institution, trade, labor, agricultural, or scientific 
association or organization, or commercial firms; and the 
provisions of [Public Law 84-918 (7 U.S.C. 1881 et seq.)] 
subchapter VI of chapter 33 of title 5, United States Code may 
be used to carry out the foregoing authority notwithstanding 
that interchange of personnel may not be involved or that the 
training may not take place at the institutions specified in 
that Act. Any payments or contributions in connection therewith 
may, as deemed appropriate by the head of the agency of the 
United States Government authorizing such training, be made by 
private or public sources and be accepted by any trainee, or 
may be accepted by and credited to the current applicable 
appropriation of such agency: Provided, however, That any such 
payments to an employee in the nature of compensation shall be 
in lieu, or in reduction, of compensation received from the 
United States Government.
    (d) Funds available for the purposes of this Act shall be 
available for--
          (1) * * *
          (2) expenses of attendance at meetings concerned with 
        the purposes of this Act, including (notwithstanding 
        the provisions of [section 9 of Public Law 60-328 (31 
        U.S.C. 673)] section 1346 of title 31, United States 
        Code) expenses in connection with meetings of persons 
        whose employment is authorized by section 13(a) of this 
        Act;

           *       *       *       *       *       *       *

          (6) exchange of funds [without regard to section 3561 
        of the Revised Statutes (31 U.S.C. 543)] and loss by 
        exchange;

           *       *       *       *       *       *       *

          (11) use in accordance with authorities of the 
        [Foreign Service Act of 1946, as amended (22 U.S.C. 801 
        et seq.)] Foreign Service Act of 1980 (22 U.S.C. 3901 
        et seq.) not otherwise provided for; [and]
          (12) ice and drinking water for use abroad[.] ; and
          (13) the transportation of Peace Corps employees, 
        Peace Corps volunteers, dependents of such employees 
        and volunteers, and accompanying baggage, by a foreign 
        air carrier when the transportation is between two 
        places outside the United States without regard to 
        section 40118 of title 49, United States Code.

                                  
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