FEDERAL INVESTMENT IN SUPPORT OF NATIONAL SERVICE.

SEC. 101. FEDERAL INVESTMENT IN SUPPORT OF NATIONAL SERVICE. (a) Transfer of Existing Subtitle.— Title I of the National and Community Service Act of 1990 (42 U.S.C. 12501 et seq.) is amended— (1) by redesignating subtitle C (42 U.S.C. 12541 et seq.) as subtitle I; (2) by inserting subtitle I (as redesignated by paragraph (1) of this subsection) after subtitle H; and (3) by redesignating sections 120 through 136 as sections 199 through 1990, respectively. (b) Assistance Program Authorized.— Title I of the National and Community Service Act of 1990 (42 U.S.C. 12501 et seq.) is amended by inserting after subtitle B the following new subtitle: “Subtitle C— National Service Trust Program “PART I— INVESTMENT IN NATIONAL SERVICE “SEC. 121. AUTHORITY TO PROVIDE ASSISTANCE AND APPROVED NATIONAL SERVICE POSITIONS. “(a) Provision of Assistance.— Subject to the availability of appropriations for this purpose, the Corporation for National and Community Service may make grants to States, subdivisions of States, Indian tribes, public or private nonprofit organizations, and institutions of higher education for the purpose of assisting the recipients of the grants— “(1) to carry out full- or part-time national service programs, including summer programs, described in section 122(a); and “(2) to make grants in support of other national service programs described in section 122(a) that are carried out by other entities. “(b) Agreements With Federal Agencies.— “(1) Agreements authorized.— The Corporation may enter into a contract or cooperative agreement with another Federal agency to support a national service program carried out by the agency. The support provided by the Corporation pursuant to the contract or cooperative agreement may include the transfer to the Federal agency of funds available to the Corporation under this subtitle. “(2) Matching funds requirements.— A Federal agency receiving assistance under this subsection shall not be required to satisfy the matching funds requirements specified in subsection (e). However, the supplementation requirements specified in section 173 shall apply with respect to the Federal national service programs supported with such assistance. “(3) Consultation with state commissions.— A Federal agency receiving assistance under this subsection shall consult 107 STAT. 789with the State Commissions for those States in which projects will be conducted using such assistance in order to ensure that the projects do not duplicate projects conducted by State or local national service programs. “(4) Support for other national service programs.— A Federal agency that enters into a contract or cooperative agreement under paragraph (1) shall, in an appropriate case, enter into a contract or cooperative agreement with an entity that is carrying out a national service program in a State that is in existence in the State as of the date of the contract or cooperative agreement and is of high quality, in order to support the national service program. “(c) Provision of Approved National Service Positions.— As part of the provision of assistance under subsections (a) and (b), the Corporation shall— “(1) approve the provision of national service educational awards described in subtitle D for the participants who serve in national service programs carried out using such assistance; and “(2) deposit in the National Service Trust established in section 145(a) an amount equal to the product of— “(A) the value of a national service educational award under section 147; and “(B) the total number of approved national service positions to be provided. “(d) Five Percent Limitation on Administrative Costs.— “(1) Limitation.— Not more than 5 percent of the amount of assistance provided to the original recipient of a grant or transfer of assistance under subsection (a) or (b) for a fiscal year may be used to pay for administrative costs incurred “(A) the recipient of the assistance; and “(B) national service programs carried out or supported with the assistance. “(2) Rules on use.— The Corporation may by rule prescribe the manner and extent to which— “(A) assistance provided under subsection (a) or (b) may be used to cover administrative costs; and “(B) that portion of the assistance available to cover administrative costs should be distributed between— “(i) the original recipient of the grant or transfer of assistance under such subsection; and “(ii) national service programs carried out or supported with the assistance. “(e) Matching Funds Requirements.— “(1) Requirements.— Except as provided in section 140, the Federal share of the cost of carrying out a national service program that receives the assistance under subsection (a), whether the assistance is provided directly or as a subgrant from the original recipient of the assistance, may not exceed 75 percent of such cost. “(2) Calculation.— In providing for the remaining share of the cost of carrying out a national service program, the program— “(A) shall provide for such share through a payment in cash or in Kind, fairly evaluated, including facilities, equipment, or services; and 107 STAT. 790 “(B) may provide for such share through State sources, local sources, or other Federal sources (other than the use of funds made available under the national service laws). “(3) Cost of health care.— In providing a payment in cash under paragraph (2)(A) as part of providing for the remaining share of the cost of carrying out a national service program, the program may count not more than 85 percent of the cost of providing a health care policy described in section 140(d)(2) toward such share. “(4) Waiver.— The Corporation may waive in whole or in part the requirements of paragraph (1) with respect to a national service program in any fiscal year if the Corporation determines that such a waiver would be equitable due to a lack of available financial resources at the local level. “SEC. 122. TYPES OF NATIONAL SERVICE PROGRAMS ELIGIBLE FOR PROGRAM ASSISTANCE. “(a) Eligible National Service Programs.— The recipient of a grant under section 121(a) and each Federal agency receiving assistance under section 121(b) shall use the assistance, directly or through subgrants to other entities, to carry out full- or part-time national service programs, including summer programs, that address unmet human, educational, environmental, or public safety needs. Subject to subsection (b)(1), these national service programs may include the following types of national service programs: “(1) A community corps program that meets unmet human, educational, environmental, or public safety needs and promotes greater community unity through the use of organized teams of participants of varied social and economic backgrounds, skill levels, physical and developmental capabilities, ages, ethnic backgrounds, or genders. “(2) A full-time, year-round youth corps program or full-time summer youth corps program, such as a conservation corps or youth service corps (including youth corps programs under subtitle I, the Public Lands Corps established under the Public Lands Corps Act of 1993, the Urban Youth Corps established under section 106 of the National and Community Service Trust Act of 1993, and other conservation corps or youth service corps that performs service on Federal or other public lands or on Indian lands or Hawaiian home lands), that— “(A) undertakes meaningful service projects with visible public benefits, including natural resource, urban renovation, or human services projects; “(B) includes as participants youths and young adults between the ages of 16 and 25, inclusive, including out-of-school youths and other disadvantaged youths (such as youths with limited basic skills, youths in foster care who are becoming too old for foster care, youths of limited- English proficiency, homeless youths, and youths who are individuals with disabilities) who are between those ages; and “(C) provides those participants who are youths and young adults with— “(i) crew-based, highly structured, and adult-supervised work experience, life skills, education, career 107 STAT. 791guidance and counseling, employment training, and support services; and “(ii) the opportunity to develop citizenship values and skills through service to their community and the United States. “(3) A program that provides specialized training to individuals in service-learning and places the individuals after such training in positions, including positions as service-learning coordinators, to facilitate service-learning in programs eligible for funding under part I of subtitle B. “(4) A service program that is targeted at specific unmet human, educational, environmental, or public safety needs and that— “(A) recruits individuals with special skills or provides specialized preservice training to enable participants to be placed individually or in teams in positions in which the participants can meet such unmet needs; and “(B) if consistent with the purposes of the program, brings participants together for additional training and other activities designed to foster civic responsibility, increase the skills of participants, and improve the quality of the service provided. “(5) An individualized placement program that includes regular group activities, such as leadership training and special service projects. “(6) A campus-based program that is designed to provide substantial service in a community during the school term and during summer or other vacation periods through the use of— “(A) students who are attending an institution of higher education, including students participating in a work-study program assisted under part C of title IV of the Higher Education Act of 1965 (42 U.S.C. 2751 et seq.); “(B) teams composed of such students; or “(C) teams composed of a combination of such students and community residents. “(7) A preprofessional training program in which students enrolled in an institution of higher education— “(A) receive training in specified fields, which may include classes containing service-learning; “(B) perform service related to such training outside the classroom during the school term and during summer or other vacation periods; and “(C) agree to provide service upon graduation to meet unmet human, educational, environmental, or public safety needs related to such training. “(8) A professional corps program that recruits and places qualified participants in positions— “(A) as teachers, nurses and other health care providers, police officers, early childhood development staff, engineers, or other professionals providing service to meet educational, human, environmental, or public safety needs in communities with an inadequate number of such professionals; “(B) that may include a salary in excess of the maximum living allowance authorized in subsection (a)(3) of 107 STAT. 792section 140, as provided in subsection (c) of such section; and “(C) that are sponsored by public or private nonprofit employers who agree to pay 100 percent of the salaries and benefits (other than any national service educational award under subtitle D) of the participants. “(9) A program in which economically disadvantaged individuals who are between the ages of 16 and 24 years of age, inclusive, are provided with opportunities to perform service that, while enabling such individuals to obtain the education and employment skills necessary to achieve economic self-sufficiency, will help their communities meet— “(A) the housing needs of low-income families and the homeless; and “(B) the need for community facilities in low-income areas. “(10) A national service entrepreneur program that identifies, recruits, and trains gifted young adults of all backgrounds and assists them in designing solutions to community problems. “(11) An intergenerational program that combines students, out-of-school youths, and older adults as participants to provide needed community services, including an intergenerational component for other national service programs described in this subsection. “(12) A program that is administered by a combination of nonprofit organizations located in a low-income area, provides a broad range of services to residents of such area, is governed by a board composed in significant part of low-income individuals, and is intended to provide opportunities for individuals or teams of individuals to engage in community projects in such area that meet unaddressed community and individual needs, including projects that would— “(A) meet the needs of low-income children and youth aged 18 and younger, such as providing after-school ‘safe-places’, including schools, with opportunities for learning and recreation; or “(B) be directed to other important unaddressed needs in such area. “(13) A community service program designed to meet the needs of rural communities, using teams or individual placements to address the development needs of rural communities and to combat rural poverty, including health care, education, and job training. “(14) A program that seeks to eliminate hunger in communities and rural areas through service in projects— “(A) involving food banks, food pantries, and nonprofit organizations that provide food during emergencies; “(B) involving the gleaning of prepared and unprepared food that would otherwise be discarded as unusable so that the usable portion of such food may be donated to food banks, food pantries, and other nonprofit organizations; “(C) seeking to address the long-term causes of hunger through education and the delivery of appropriate services; or 107 STAT. 793 “(D) providing training in basic health, nutrition, and life skills necessary to alleviate hunger in communities and rural areas. “(15) Such other national service programs addressing unmet human, educational, environmental, or public safety needs as the Corporation may designate. “(b) Qualification Criteria To Determine Eligibility.— “(1) Establishment by corporation.— The Corporation shall establish qualification criteria for different types of national service programs for the purpose of determining whether a particular national service program should be considered to be a national service program eligible to receive assistance or approved national service positions under this subtitle. “(2) Consultation.— In establishing qualification criteria under paragraph (1), the Corporation shall consult with organizations and individuals with extensive experience in developing and administering effective national service programs or regarding the delivery of human, educational, environmental, or public safety services to communities or persons. “(3) Application to subgrants.— The qualification criteria established by the Corporation under paragraph (1) shall also be used by each recipient of assistance under section 121(a) that uses any portion of the assistance to conduct a grant program to support other national service programs. “(4) Encouragement of intergenerational components of programs.— The Corporation shall encourage national service programs eligible to receive assistance or approved national service positions under this subtitle to establish, if consistent with the purposes of the program, an intergenerational component of the program that combines students, out-of-school youths, and older adults as participants to provide services to address unmet human, educational, environmental, or public safety needs. “(c) National Service Priorities.— “(1) Establishment.— “(A) By corporation.— In order to concentrate national efforts on meeting certain unmet human, educational, environmental, or public safety needs and to achieve the other purposes of this Act, the Corporation shall establish, and after reviewing the strategic plan approved under section 192A(g)(1), periodically alter priorities as appropriate regarding the types of national service programs to be assisted under subsection (b) or (d) of section 129 and the purposes for which such assistance may be used. “(B) By states.— Consistent with paragraph (4), States shall establish, and through the national service plan process described in section 178(e)(1), periodically alter priorities as appropriate regarding the national service programs to be assisted under section 129(a)(1). The State priorities shall be subject to Corporation review as part of the application process under section 130. “(2) Notice to applicants.— The Corporation shall provide advance notice to potential applicants of any national service priorities to be in effect under this subsection for a fiscal year. The notice shall specifically include— 107 STAT. 794 “(A) a description of any alteration made in the priorities since the previous notice; and “(B) a description of the national service programs that are designated by the Corporation under section 133(d)(2) as eligible for priority consideration in the next competitive distribution of assistance under section 121(a). “(3) Regulations.— The Corporation shall by regulation establish procedures to ensure the equitable treatment of national service programs that— “(A) receive funding under this subtitle for multiple years; and “(B) would be adversely affected by annual revisions in such national service priorities. “(4) Application to subgrants.— Any national service priorities established by the Corporation under this subsection shall also be used by each recipient of funds under section 121(a) that uses any portion of the assistance to conduct a grant program to support other national service programs. “SEC. 123. TYPES OF NATIONAL SERVICE POSITIONS ELIGIBLE FOR APPROVAL FOR NATIONAL SERVICE EDUCATIONAL AWARDS. “The Corporation may approve of any of the following service positions as an approved national service position that includes the national service educational award described in subtitle D as one of the benefits to be provided for successful service in the position: “(1) A position for a participant in a national service program described in section 122(a) that receives assistance under subsection (a) or (b) of section 121. “(2) A position for a participant in a program that— “(A) is carried out by a State, a subdivision of a State, an Indian tribe, a public or private nonprofit organization, an institution of higher education, or a Federal agency, and “(B) would be eligible to receive assistance under section 121(a), based on criteria established by the Corporation, but has not applied for such assistance. “(3) A position involving service as a VISTA volunteer under title I of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4951 et sea.). “(4) A position facilitating service-learning in a program described in section 122(a)(3) that is eligible for assistance under part I of subtitle B. “(5) A position for a participant in the Civilian Community Corps under subtitle E. “(6) A position involving service as a crew leader in a youth corps program or a similar position supporting a national service program that receives an approved national service position. “(7) Such other national service positions as the Corporation considers to be appropriate. “SEC. 124. TYPES OF PROGRAM ASSISTANCE. “(a) Planning Assistance.— The Corporation may provide assistance under section 121 to a qualified applicant that submits an application under section 130 for the planning of a national 107 STAT. 795service program. Assistance provided in accordance with this subsection may cover a period of not more than 1 year. “(b) Operational Assistance.— The Corporation may provide assistance under section 121 to a qualified applicant that submits an application under section 130 for the establishment, operation, or expansion of a national service program. Assistance provided in accordance with this subsection may cover a period of not more than 3 years, but may be renewed by the Corporation upon consideration of a new application under section 130. “(c) Replication Assistance.— The Corporation may provide assistance under section 121 to a qualified applicant that submits an application under section 130 for the expansion of a proven national service program to another geographical location. Assistance provided in accordance with this subsection may cover a period of not more than 3 years, but may be renewed by the Corporation upon consideration of a new application under section 130. “(d) Application to Subgrants.— The requirements of this section shall apply to any State or other applicant receiving assistance under section 121 that proposes to conduct a grant program using the assistance to support other national service programs. “SEC. 125. TRAINING AND TECHNICAL ASSISTANCE. “(a) Training Programs.— The Corporation may conduct, directly or by grant or contract, appropriate training programs regarding national service in order to— “(1) improve the ability of national service programs assisted under section 121 to meet human, educational, environmental, or public safety needs in communities— “(A) where services are needed most; and “(B) where programs do not exist, or are too limited to meet community needs, as of the date on which the Corporation makes the grant or enters into the contract; “(2) promote leadership development in such programs; “(3) improve the instructional and programmatic quality of such programs to build an ethic of civic responsibility; “(4) develop the management and budgetary skills of program operators; “(5) provide for or improve the training provided to the participants in such programs; and “(6) encourage national service programs to adhere to risk management procedures, including the training of participants in appropriate risk management practices. “(b) Technical Assistance.— To the extent appropriate and necessary, the Corporation shall make technical assistance available to States, Indian tribes, labor organizations, organizations operated by young adults, organizations serving economically disadvantaged individuals, and other entities described in section 121 that desire— “(1) to develop national service programs; or “(2) to apply for assistance under such section or under a grant program conducted using assistance provided under such section. “SEC. 126. OTHER SPECIAL ASSISTANCE. “(a) Support for State Commissions.— “(1) Grants authorized.— From amounts appropriated for a fiscal year pursuant to the authorization of appropriation in section 501(a)(4), the Corporation may make a grant in an amount between $125,000 and $750,000 to a State to assist 107 STAT. 796the State to establish or operate the State Commission on National and Community Service required to be established by the State under section 178. “(2) Limitation on amount of grants.— Notwithstanding the amounts specified in paragraph (1), the amount of a grant that may be provided to a State Commission under this subsection, together with other Federal funds available to establish or operate the State Commission, may not exceed— “(A) 85 percent of the total cost to establish or operate the State Commission for the first year for which the State Commission receives assistance under this subsection; and “(B) such smaller percentage of such cost as the Corporation may establish for the second, third, and fourth years of such assistance in order to ensure that the Federal share does not exceed 50 percent of such costs for the fifth year, and any subsequent year, for which the State Commission receives assistance under this subsection. “(b) Disaster Service.— The Corporation may undertake activities, including activities carried out through part A of title I of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4951 et seq.), to involve in disaster relief efforts youth corps programs described in section 122(a)(2) and other programs that receive assistance under the national service laws. “(c) Challenge Grants for National Service Programs.— “(1) Assistance authorized.— The Corporation may make challenge grants under this subsection to national service programs that receive assistance under section 121. “(2) Selection criteria.— The Corporation shall develop criteria for the selection of recipients of challenge grants under this subsection, so as to make the grants widely available to a variety of programs that— “(A) are high-quality national service programs; and “(B) are carried out by entities with demonstrated experience in establishing and implementing projects that provide benefits to participants and communities. “(3) Amount of assistance.— A challenge grant under this subsection may provide not more than $1 of assistance under this subsection for each $1 in cash raised by the national service program from private sources in excess of amounts required to be provided by the program to satisfy matching funds requirements under section 121(e). The Corporation shall establish a ceiling on the amount of assistance that may be provided to a national service program under this subsection. “PART II— APPLICATION AND APPROVAL PROCESS “SEC. 129. PROVISION OF ASSISTANCE AND APPROVED NATIONAL SERVICE POSITIONS BY COMPETITIVE AND OTHER MEANS. “(a) Allotments of Assistance and Approved Positions to States and Indian Tribes.— “(1) 33⅓ percent allotment of assistance to certain states.— Of the funds allocated by the Corporation for provision of assistance under subsections (a) and (n) of section 121 for a fiscal year, the Corporation shall make a grant under section 107 STAT. 797121(a) (and a corresponding allotment of approved national service positions) to each of the several States, the District of Columbia, and the Commonwealth of Puerto Rico that has an application approved by the Corporation under section 133. The amount allotted as a grant to each such State under this paragraph for a fiscal year shall be equal to the amount that bears the same ratio to 33⅓ percent of the allocated funds for that fiscal year as the population of the State bears to the total population of the several States, the District of Columbia, and the Commonwealth of Puerto Rico. “(2) One percent allotment for certain territories and POSSESSIONS.— Of the funds allocated by the Corporation for provision of assistance under subsections (a) and (b) of section 121 for a fiscal year, the Corporation shall reserve 1 percent of the allocated funds for grants under section 121(a) to the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands upon approval of an application by the Corporation under section 133. Palau shall also be eligible for a grant under this paragraph from the allotment until such time as the Compact of Free Association with Palau is ratified. The amount allotted as a grant to each such territory or possession under this paragraph for a fiscal year shall be equal to the amount that bears the same ratio to 1 percent of the allocated funds for that fiscal year as the population of the territory or possession bears to the total population of such territories and possessions. “(3) One percent allotment for Indian tribes.— Of the funds allocated by the Corporation for provision of assistance under subsections (a) and (b) of section 121 for a fiscal year, the Corporation shall reserve 1 percent of the allocated hinds for grants under section 121(a) to Indian tribes, to be allotted by the Corporation on a competitive basis in accordance with their respective needs. “(4) Effect of failure to apply.— If a State or Indian tribe fails to apply for, or fails to give notice to the Corporation of its intent to apply for, an allotment under this subsection, the Corporation shall use the amount that would have been allotted under this subsection to the State or Indian tribe— “(A) to make grants (and provide approved national service positions in connection with such grants) to other eligible entities under section 121 that propose to carry out national service programs in the State or on behalf of the Indian tribe; and “(B) after making grants under subparagraph (A), to make a reallotment to other States and Indian tribes with approved applications under section 130. “(b) Reservation of Approved Positions.— The Corporation shall ensure that each individual selected during a fiscal year for assignment as a VISTA volunteer under title I of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4951 et seq.) or as a participant in the Civilian Community Corps Demonstration Program under subtitle E shall receive the national service educational award described in subtitle D if the individual satisfies the eligibility requirements for the award. Funds for approved national service positions required by this paragraph for a fiscal year shall be deducted from the total funding for approved national service 107 STAT. 798positions to be available for distribution under subsections (a) and (d) for that fiscal year. “(c) Reservation for Special Assistance.— From amounts appropriated for a fiscal year pursuant to the authorization of appropriation in section 501(a)(2), and subject to the limitation in such section, the Corporation may reserve such amount as the Corporation considers to be appropriate for the purpose of making assistance available under sections 125 and 126. The Corporation may not reserve more than $10,000,000 for a fiscal year for disaster service under subsection (b) of section 126 or challenge grants under subsection (c) of such section. “(d) Competitive Distribution of Remaining Funds.— “(1) State competition.— Of the funds allocated by the Corporation for provision of assistance under subsections (a) and (b) of section 121 for a fiscal year, the Corporation shall use not less than 3314 percent of the allocated funds to make grants to States on a competitive basis under section 121(a). “(2) Federal agencies and other applicants.— The Corporation shall distribute on a competitive basis to subdivisions of States, Indian tribes, public or private nonprofit organizations (including labor organizations), institutions of higher education, and Federal agencies the remainder of the funds allocated by the Corporation for provision of assistance under section 121 for a fiscal year, after operation of paragraph (1) and subsections (a) and (c). “(3) Limitation on distribution to federal agencies.— The Corporation may not provide more than 14 of the funds available for competitive distribution under paragraph (2) for a fiscal year to Federal agencies under section 121(b). “(4) Priority limitations.— The Corporation may limit the categories of eligible applicants for assistance under paragraph (2) consistent with the priorities established by the Corporation under section 133(d)(2). “(5) Reservation of funds for supplemental and out-reach grants.— “(A) Reservation.— From amounts appropriated for a fiscal year pursuant to the authorization of appropriation in section 501(a)(2), and subject to the limitation in such section, the Chief Executive Officer shall reserve an amount that is not less than 1 percent of such amounts (except that the amount reserved may not exceed $5,000,000), in order to make supplemental grants as provided in subparagraph (B) and outreach grants as provided in subparagraph (C). The amount reserved pursuant to this paragraph shall be available until expended. “(B) Grants to assist entities in placing applicants WHO ARE INDIVIDUALS WITH A DISABILITY.— “(i) In general.— The Chief Executive Officer shall make grants from a portion of the funds reserved under subparagraph (A) to entities that— “(I) receive a grant to carry out a national service program under paragraph (1) or (2); “(II) demonstrate that the entity has received a substantial number of applications for placement in the national service program of persons who are individuals with a disability and who require a reasonable accommodation (as defined in section 107 STAT. 799101(9) of the Americans with Disabilities Act of 1990 (42 U.S.C. 12111(9))), or auxiliary aids and services (as defined in section 3(1) of such Act (42 U.S.C. 12102(1))), in order to perform national service; and “(III) demonstrate that additional funding would assist the national service program in placing a substantial number of such individuals with a disability as participants in projects carried out through the program. “(ii) Requirements.— Funds made available through such a supplemental grant under clause (i) shall lie made available for the same purposes, and subject to the same requirements, as funds made available through a grant made under paragraph (1) or (2). “(C) Grants for outreach to individuals with a DISABILITY.— “(i) In general.— From the portion of the funds reserved under subparagraph (A) that is not used to make grants under subparagraph (B), the Chief Executive Officer shall make grants to public or private nonprofit organizations to pay for the Federal share described in section 121(e) of— “(I) providing information about the programs specified in section 193A(d)(10) to such individuals with a disability who desire to perform national service; and “(II) enabling the individuals to participate in activities earned out through such programs, which may include assisting the placement of the individuals in approved national service positions, "(ii) Application.— To be eligible to receive a grant under this subparagraph, an organization described in clause (i) shall submit an application to the Chief Executive Officer at such time, in such manner, and containing such information as the Chief Executive Officer may require. “(e) Application Required.— The allotment of assistance and approved national service positions to a State or Indian tribe under subsection (a), and the competitive distribution of assistance under subsection (d), shall be made by the Corporation only pursuant to an application submitted by a State or other applicant under section 130 and approved by the Corporation under section 133. “(f) Approval of Positions Subject to Available Funds.— The Corporation may not approve positions as approved national service positions under this subtitle for a fiscal year in excess of the number of such positions for which the Corporation has sufficient available funds in the National Service Trust for that fiscal year, taking into consideration funding needs for national service educational awards under subtitle D based on completed service. If appropriations are insufficient to provide the maximum allowable national service educational awards under subtitle D for all eligible participants, the Corporation is authorized to make necessary and reasonable adjustments to program rules. “(g) Sponsorship of Approved National Service Positions.— 107 STAT. 800 “(1) Sponsorship authorized.— The Corporation may enter into agreements with persons or entities who offer to sponsor national service positions for which the person or entity will be responsible for supplying the funds necessary to provide a national service educational award. The distribution of these approved national service positions shall be made pursuant to the agreement, and the creation of these positions shall not be taken into consideration in determining the number of approved national service positions to be available for distribution under this section. “(2) Deposit of contribution.— Funds provided pursuant to an agreement under paragraph (1) and any other funds contributed to the Corporation to support the activities of the Corporation under the national service laws shall be deposited in the National Service Trust established in section 145 until such time as the funds are needed. “SEC. 130. APPLICATION FOR ASSISTANCE AND APPROVED NATIONAL SERVICE POSITIONS. “(a) Time, Manner, and Content of Application.— To be eligible to receive assistance under section 121 or approved national service positions for participants who serve in the national service programs to be carried out using the assistance, a State, subdivision of a State, Indian tribe, public or private nonprofit organization, institution of higher education, or Federal agency shall prepare and submit to the Corporation an application at such time, in such manner, and containing such information as the Corporation may reasonably require. “(b) Types of Permissible Application Information.— In order to have adequate information upon which to consider an application under section 133, the Corporation may require the following information to be provided in an application submitted under subsection (a): “(1) A description of the national service programs proposed to be carried out directly by the applicant using assistance provided under section 121. “(2) A description of the national service programs that are selected by the applicant to receive a grant using assistance requested under section 121 and a description of the process and criteria by which the programs were selected. “(3) A description of outer funding sources to be used, or sought to be used, for the national service programs referred to in paragraphs (1) and (2), and, if the application is submitted for the purpose of seeking a renewal of assistance, a description of the success of the programs in reducing their reliance on Federal funds. “(4) A description of the extent to which the projects to be conducted using the assistance will address unmet human, educational, environmental, or public safety needs and produce a direct benefit for the community in which the projects are performed. “(5) A description of the plan to be used to recruit participants, including youth who are individuals with disabilities and economically disadvantaged young men and women, for the national service programs referred to in paragraphs (1) and (2). 107 STAT. 801 “(6) A description of the manner in which the national service programs referred to in paragraphs (1) and (2) build on existing programs, including Federal programs. “(7) A description of the manner in which the national service programs referred to in paragraphs (1) and (2) will involve participants— “(A) in projects that build an ethic of civic responsibility and produce a positive change in the lives of participants through training and participation in meaningful service experiences and opportunities for reflection on such experiences; and “(B) in leadership positions in implementing and evaluating the program. “(8) Measurable goals for the national service programs referred to in paragraphs (1) and (2), and a strategy to achieve such goals, in terms of— “(A) the impact to be made in meeting unmet human, educational, environmental, or public safety needs; and “(B) the service experience to be provided to participants in the programs. “(9) A description of the manner and extent to which the national service programs referred to in paragraphs (1) and (2) conform to the national service priorities established by the Corporation under section 122(c). “(10) A description of the past experience of the applicant in operating a comparable program or in conducting a grant program in support of other comparable service programs. “(11) A description of the type and number of proposed service positions in which participants will receive the national service educational award described in subtitle D and a description of the manner in which approved national service positions will be apportioned by the applicant. “(12) A description of the manner and extent to which participants, representatives of the community served, community-based agencies with a demonstrated record of experience in providing services, and labor organizations contributed to the development of the national service programs referred to in paragraphs (1) and (2), including the identity of the individual representing each appropriate labor organization (if any) who was consulted and the nature of the consultation. “(13) Such other information as the Corporation may reasonably require. “(c) Required Application Information.— An application submitted under subsection (a) shall contain the following information: “(1) A description of the jobs or positions into which participants will be placed using the assistance provided under section 121, including descriptions of specific tasks to be performed by such participants. “(2) A description of the minimum qualifications that individuals shall meet to become participants in such programs. “(d) Application To Receive Only Approved National Service Positions — “(1) Applicability of subsection.— This subsection shall apply in the case of an application in which— “(A) the applicant is not seeking assistance under subsection (a) or (b) of section 121, but requests national 107 STAT. 802service educational awards for individuals serving in service positions described in section 123; or “(B) the applicant requests national service educational awards for service positions described in section 123, but the positions are not positions in a national service program described in section 122(a) for which assistance may be provided under subsection (a) or (b) of section 121. “(2) Special application requirements.— For the applications described in paragraph (1), the Corporation shall establish special application requirements in order to determine— “(A) whether the service positions meet unmet human, educational, environmental, or public safety needs and meet the criteria for assistance under this subtitle; and “(B) whether the Corporation should approve the positions as approved national service positions. “(e) Special Rule for State Applicants.— “(1) Submission by state commission.— The application of a State for approved national service positions or for a grant under section 121(a) shall be submitted by the State Commission. “(2) Competitive selection.— The application of a State shall contain an assurance that all assistance provided under section 121(a) to the State will be used to support national service programs that were selected by the State on a competitive basis. In making such competitive selections, the State shall seek to ensure the equitable allocation within the State of assistance and approved national service positions provided under this subtitle to the State taking into consideration such factors as the location of the programs applying to the State, population density, and economic distress. “(3) Assistance to nonstate entities.— The application of a State shall also contain an assurance that not less than 60 percent of the assistance will be used to make grants in support of national service programs other than national service programs carried out by a State agency. The Corporation may permit a State to deviate from the percentage specified by this subsection if the State has not received a sufficient number of acceptable applications to comply with the percentage. “(f) Special Rule for Certain Applicants.— “(1) Written concurrence.— In the case of a program applicant that proposes to also serve as the service sponsor, the application shall include the written concurrence of any local labor organization representing employees of the service sponsor who are engaged in the same or substantially similar work as that proposed to be carried out. “(2) Program applicant defined.— For purposes of this subsection, the term ‘program applicant’ means— “(A) a State, subdivision of a State, Indian tribe, public or private nonprofit organization, institution of higher education, or Federal agency submitting an application under this section; or “(B) an entity applying for assistance or approved national service positions through a grant program conducted using assistance provided to a State, subdivision of a State, Indian tribe, public or private nonprofit organization, institution of higher education, or Federal agency under section 121. 107 STAT. 803 “(g) Limitation on Same Project in Multiple Applications.— The Corporation shall reject an application submitted under this section if a project proposed to be conducted using assistance requested by the applicant is already described in another application pending before the Corporation. “SEC. 131. NATIONAL SERVICE PROGRAM ASSISTANCE REQUIREMENTS. “(a) Impact on Communities.— An application submitted under section 130 shall include an assurance by the applicant that any national service program carried out by the applicant using assistance provided under section 121 and any national service program supported by a grant made by the applicant using such assistance will— “(1) address unmet human, educational, environmental, or public safety needs through services that provide a direct benefit to the community in which the service is performed; and “(2) comply with the nonduplication and nondisplacement requirements of section 177 and the grievance procedure requirements of section 176(f). “(b) Impact on Participants.— An application submitted under section 130 shall also include an assurance by the applicant that any national service program carried out by the applicant using assistance provided under section 121 and any national service program supported by a grant made by the applicant using such assistance will— “(1) provide participants in the national service program with the training, skills, and knowledge necessary for the projects that participants are called upon to perform; “(2) provide support services to participants, such as the provision of appropriate information and support— “(A) to those participants who are completing a term of service and making the transition to other educational and career opportunities; and “(B) to those participants who are school dropouts in order to assist those participants in earning the equivalent of a high school diploma; and “(3) provide, if appropriate, structured opportunities for participants to reflect on their service experiences. “(c) Consultation.— An application submitted under section 130 shall also include an assurance by the applicant that any national service program carried out by the applicant using assistance provided under section 121 and any national service program supported by a grant made by the applicant using such assistance will— “(1) provide in the design, recruitment, and operation of the program for broad-based input from— “(A) the community served and potential participants in the program; and “(B) community-based agencies with a demonstrated record of experience in providing services and local labor organizations representing employees of service sponsors, if these entities exist in the area to be served by the program; “(2) prior to the placement of participants, consult with the appropriate local labor organization, if any, representing employees in the area who are engaged in the same or similar 107 STAT. 804work as that proposed to be carried out by such program to ensure compliance with the nondisplacement requirements specified in section 177; and “(3) in the case of a program that is not funded through a State, consult with and coordinate activities with the State Commission for the State in which the program operates. “(d) Evaluation and Performance Goals.— “(1) In general.— An application submitted under section 130 shall also include an assurance by the applicant that the applicant will— “(A) arrange for an independent evaluation of any national service program carried out using assistance provided to the applicant under section 121 or, with the approval of the Corporation, conduct an internal evaluation of the program; “(B) apply measurable performance goals and evaluation methods (such as the use of surveys of participants and persons served), which are to be used as part of such evaluation to determine the impact of the program— “(i) on communities and persons served by the projects performed by the program; “(ii) on participants who take part in the projects; and “(iii) in such other areas as the Corporation may require; and “(C) cooperate with any evaluation activities undertaken by the Corporation. “(2) Evaluation.— Subject to paragraph (3), the Corporation shall develop evaluation criteria and performance goals applicable to all national service programs carried out with assistance provided under section 121. “(3) Alternative evaluation requirements.— The Corporation may establish alternative evaluation requirements for national service programs based upon the amount of assistance received under section 121 or received by a grant made by a recipient of assistance under such section. The determination of whether a national service program is covered by this paragraph shall be made in such manner as the Corporation may prescribe. “(e) Living Allowances and Other Inservice Benefits.— Except as provided in section 140(c), an application submitted under section 130 shall also include an assurance by the applicant that the applicant will— “(1) ensure the provision of a living allowance and other benefits specified in section 140 to participants in any national service program carried out by the applicant using assistance provided under section 121; and “(2) require that each national service program that receives a grant from the applicant using such assistance will also provide a living allowance and other benefits specified in section 140 to participants in the program. “(f) Selection of Participants From Individuals Recruited by Corporation or State Commissions.— The Corporation may also require an assurance by the applicant that any national service program carried out by the applicant using assistance provided under section 121 and any national service program supported by a grant made by the applicant using such assistance will select 107 STAT. 805a portion of the participants for the program from among prospective participants recruited by the Corporation or State Commissions under section 138(d). The Corporation may specify a minimum percentage of participants to be selected from the national leadership pool established under section 138(e) and may vary the percentage for different types of national service programs. “SEC. 132. INELIGIBLE SERVICE CATEGORIES. “(a) In General.— Except as provided in subsection (b), an application submitted to the Corporation under section 130 shall include an assurance by the applicant that any national service program carried out using assistance provided under section 121 and any approved national service position provided to an applicant will not be used to perform service that provides a direct benefit to any— “(1) business organized for profit; “(2) labor union; “(3) partisan political organization; “(4) organization engaged in religious activities, unless such service does not involve the use of assistance provided under section 121 or participants— “(A) to give religious instruction; “(B) to conduct worship services; “(C) to provide instruction as part of a program that includes mandatory religious education or worship; “(D) to construct or operate facilities devoted to religious instruction or worship or to maintain facilities primarily or inherently devoted to religious instruction or worship; or “(E) to engage in any form of proselytization; or “(5) nonprofit organization that fails to comply with the restrictions contained in section 501(c) of the Internal Revenue Code of 1986 (26 U.S.C. 501(c)), except that nothing in this section shall be construed to prevent participants from engaging in advocacy activities undertaken at their own initiative. “(b) Regional Corporation.— The requirement of subsection (a) relating to an assurance regarding direct benefits to businesses organized for profit shall not apply with respect to a Regional Corporation, as defined in section 3(g) of the Alaska Native Claims Settlement Act (43 U.S.C. 1602(g)), that is established in accordance with such Act as a for-profit corporation but that is engaging in nonprofit activities. “SEC. 133. CONSIDERATION OF APPLICATIONS. “(a) Corporation Consideration of Certain Criteria.— The Corporation shall apply the criteria described in subsections (c) and (d) in determining whether— “(1) to approve an application submitted under section 130 and provide assistance under section 121 to the applicant; and “(2) to approve service positions described in the application as national service positions that include the national service educational award described in subtitle D and provide such approved national service positions to the applicant. “(b) Application to Subgrants.— “(1) In general.— A State or other entity that uses assistance provided under section 121(a) to support national service programs selected on a competitive basis to receive a share 107 STAT. 806of the assistance shall use the criteria described in subsections (c) and (d) when considering an application submitted by a national service program to receive a portion of such assistance or an approved national service position. “(2) Contents.— The application of the State or other entity under section 130 shall contain— “(A) a certification that the State or other entity used these criteria in the selection of national service programs to receive assistance; “(B) a description of the jobs or positions into which participants will be placed using such assistance, including descriptions of specific tasks to be performed by such participants; and “(C) a description of the minimum qualifications that individuals shall meet to become participants in such programs. “(c) Assistance Criteria.— The criteria required to be applied in evaluating applications submitted under section 130 are as follows: “(1) The quality of the national service program proposed to be carried out directly by the applicant or supported by a grant from the applicant. “(2) The innovative aspects of the national service program, and the feasibility of replicating the program. “(3) The sustainability of the national service program, based on evidence such as the existence— “(A) of strong and broad-based community support for the program; and “(B) of multiple funding sources or private funding for the program. “(4) The quality of the leadership of the national service program, the past performance of the program, and the extent to which the program builds on existing programs. “(5) The extent to which participants of the national service program are recruited from among residents of the communities in which projects are to be conducted, and the extent to which participants and community residents are involved in the design, leadership, and operation of the program. “(6) The extent to which projects would be conducted in the following areas where they are needed most: “(A) Communities designated as empowerment zones or redevelopment areas, targeted for special economic incentives, or otherwise identifiable as having high concentrations of low-income people. “(B) Areas that are environmentally distressed. “(C) Areas adversely affected by Federal actions related to the management of Federal lands that result in significant regional job losses and economic dislocation. “(D) Areas adversely affected by reductions in defense spending or the closure or realignment of military installations. “(E) Areas that have an unemployment rate greater than the national average unemployment for the most recent 12 months for which satisfactory data are available. “(7) In the case of applicants other than States, the extent to which the application is consistent with the application under 107 STAT. 807section 130 of the State in which the projects would be conducted. “(8) Such other criteria as the Corporation considers to be appropriate. “(d) Other Considerations.— “(1) Geographic diversity.— The Corporation shall ensure that recipients of assistance provided under section 121 are geographically diverse and include projects to be conducted in those urban and rural areas in a State with the highest rates of poverty. “(2) Priorities.— The Corporation may designate, under such criteria as may be established by the Corporation, certain national service programs or types of national service programs described in section 122(a) for priority consideration in the competitive distribution of funds under section 129(d)(2). In designating national service programs to receive priority, the Corporation may include— “(A) national service programs carried out by another Federal agency; “(B) national service programs that conform to the national service priorities in effect under section 122(c); “(C) innovative national service programs; “(D) national service programs that are well established in one or more States at the time of the application and are proposed to be expanded to additional States using assistance provided under section 121; “(E) grant programs in support of other national service programs if the grant programs are to be conducted by nonprofit organizations with a demonstrated and extensive expertise in the provision of services to meet human, educational, environmental, or public safety needs; “(F) professional corps programs described in section 122(a)(8); and “(G) programs that— “(i) received funding under subtitle D of this Act, as in effect on the day before the date of enactment of this subtitle; “(ii) the Corporation determines to meet the requirements of sections 142 (other than subsection (g)), 143, and 148 through 150 of this Act, as in effect on such day, in addition to the requirements of this subtitle; and “(iii) include an evaluation component. “(3) Additional priority.— In making a competitive distribution of funds under section 129(d)(2), file Corporation may give priority consideration to a national service program that is— “(A) proposed in an application submitted by a State Commission; and “(B) not one of the types of programs described in paragraph (2), if the State Commission provides an adequate explanation of the reasons why it should not be a priority of such State to carry out any of such types of programs in the State. “(4) Review panel.— The Corporation shall— “(A) establish panels of experts for the purpose of securing recommendations on applications submitted under sec-107 STAT. 808tion 130 for more than $250,000 in assistance, or for national service positions that would require more than $250,000 in national service educational awards; and “(B) consider the opinions of such panels prior to making such determinations. “(e) Emphasis on Areas Most in Need.— In making assistance available under section 121 and in providing approved national service positions under section 123, the Corporation shall ensure that not less than 50 percent of the total amount of assistance to be distributed to States under subsections (a) and (d)(1) of section 129 for a fiscal year is provided to carry out or support national service programs and projects that— “(1) are conducted in any of the areas described in subsection (c)(6) or on Federal or other public lands, to address unmet human, educational, environmental, or public safety needs in such areas or on such lands; and “(2) place a priority on the recruitment of participants who are residents of any of such areas or Federal or other public lands. “(f) Rejection of State Applications.— “(1) Notification of state applicants.— If the Corporation rejects an application submitted by a State Commission under section 130 for funds described in section 129(a)(1), the Corporation shall promptly notify the State Commission of the reasons for the rejection of the application. “(2) Resubmission and reconsideration.— The Corporation shall provide a State Commission notified under paragraph (1) with a reasonable opportunity to revise and resubmit tne application. At the request of the State Commission, the Corporation shall provide technical assistance to the State Commission as part of the resubmission process. The Corporation shall promptly reconsider an application resubmitted under this paragraph. “(3) Reallotment.— The amount of any State’s allotment under section 129(a) for a fiscal year that the Corporation determines will not be provided for that fiscal year shall be available for distribution by the Corporation as provided in paragraph (3) of such subsection. “PART III— NATIONAL SERVICE PARTICIPANTS “SEC. 137. DESCRIPTION OF PARTICIPANTS. “(a) In General.— For purposes of this subtitle, an individual shall be considered to be a participant in a national service program carried out using assistance provided under section 121 if the individual— “(1) meets such eligibility requirements, directly related to the tasks to be accomplished, as may be established by the program; “(2) is selected by the program to serve in a position with the program; “(3) will serve in the program for a term of service specified in section 139 to be performed before, during, or after attendance at an institution of higher education; “(4) is 17 years of age or older at the time the individual begins the term of service; 107 STAT. 809 “(5) has received a high school diploma or its equivalent, agrees to obtain a high school diploma or its equivalent (unless this requirement is waived based on an individual education assessment conducted by the program) and the individual did not drop out of an elementary or secondary school to enroll in the program, or is enrolled in an institution of higher education on an ability to benefit basis and is considered eligible for funds under section 484 of the Higher Education Act of 1965 (20 U.S.C. 1091); and “(6) is a citizen or national of the United States or lawful permanent resident alien of the United States. “(b) Special Rules for Certain Youth Programs.— An individual shall be considered to be a participant in a youth corps program described in section 122(a)(2) or a program described in section 122(a)(9) that is carried out with assistance provided under section 121(a) if the individual— “(1) satisfies the requirements specified in subsection (a), except paragraph (4) of such subsection; and “(2) is between the ages of 16 and 25, inclusive, at the time the individual begins the term of service. “(c) Waiver.— The Corporation may waive the requirements of subsection (a)(5)(A) with respect to an individual if the program in which the individual seeks to become a participant conducts an independent evaluation demonstrating that the individual is incapable of obtaining a high school diploma or its equivalent. “SEC. 138. SELECTION OF NATIONAL SERVICE PARTICIPANTS. “(a) Selection Process.— Subject to subsections (b) and (c) and section 131(f), the actual recruitment and selection of an individual to serve in a national service program receiving assistance under section 121 or to fill an approved national service position shall be conducted by the State, subdivision of a State, Indian tribe, public or private nonprofit organization, institution of higher education, Federal agency, or other entity to which the assistance and approved national service positions are provided. “(b) Nondiscrimination and Nonpolitical Selection of Participants.— The recruitment and selection of individuals to serve in national service programs receiving assistance under section 121 or to fill approved national service positions shall be consistent with the requirements of section 175. “(c) Second Term.— Acceptance into a national service program to serve a second term of service under section 139 shall only be available to individuals who perform satisfactorily in their first term of service. “(d) Recruitment and Placement.— The Corporation and each State Commission shall establish a system to recruit individuals who desire to perform national service and to assist the placement of these individuals in approved national service positions, which may include positions available under titles I and II of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4951 et seq.). The Corporation and State Commissions shall disseminate information regarding available approved national service positions through cooperation with secondary schools, institutions of higher education, employment service offices, State vocational rehabilitation agencies within the meaning of the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) and other State agencies that primarily serve individuals with disabilities, and other appropriate entities, particularly 107 STAT. 810those organizations that provide outreach to disadvantaged youths and youths who are individuals with disabilities. “(e) National Leadership Pool.— “(1) Selection and training.— From among individuals recruited under subsection (d), the Corporation may select individuals with significant leadership potential, as determined by the Corporation, to receive special training to enhance their leadership ability. The leadership training shall be provided by the Corporation directly or through a grant or contract. “(2) Emphasis on certain individuals.— In selecting individuals to receive leadership training under this subsection, the Corporation shall make special efforts to select individuals who have served— “(A) in the Peace Corps; “(B) as VISTA volunteers; “(C) as participants in national service programs receiving assistance under section 121; “(D) as participants in programs receiving assistance under subtitle D of the National and Community Service Act of 1990, as in effect on the day before the date of enactment of this subtitle; or “(E) as members of the Armed Forces of the United States and who were honorably discharged from such service. “(3) Assignment.— At the request of a program that receives assistance under the national service laws, the Corporation may assign an individual who receives leadership training under paragraph (1) to work with the program in a leadership position and carry out assignments not otherwise performed by regular participants. An individual assigned to a program shall be considered to be a participant of the program. “(f) Evaluation of Service.— The Corporation shall issue regulations regarding the manner and criteria by which the service of a participant shall be evaluated to determine whether the service is satisfactory and successful for purposes of eligibility for a second term of service or a national service educational award. “SEC. 139. TERMS OF SERVICE. “(a) In General.— As a condition of receiving a national service education award under subtitle D, a participant in an approved national service position shall be required to perform full- or part-time national service for at least one term of service specified in subsection (b). “(b) Term of Service.— “(1) Full-time service.— An individual performing full-time national service in an approved national service position shall agree to participate in the program sponsoring the position for not less than 1,700 hours during a period of not less than 9 months and not more than 1 year. “(2) Part-time service.— Except as provided in paragraph (3), an individual performing part-time national service in an approved national service position shall agree to participate in the program sponsoring the position for not less than 900 hours during a period of— “(A) not more than 2 years; or 107 STAT. 811 “(B) not more than 3 years if the individual is enrolled in an institute of higher education while preforming all or a portion of the service. “(3) Reduction in hours of part-time service.— The Corporation may reduce the number of hours required to be served to successfully complete part-time national service to a level determined by the Corporation, except that any reduction in the required term of service shall include a corresponding reduction in the amount of any national service educational award that may be available under subtitle D with regard to that service. “(c) Release From Completing Term of Service.— “(1) Release authorized.— A recipient of assistance under section 121 or a program sponsoring an approved national service position may release a participant from completing a term of service in the position— “(A) for compelling personal circumstances as demonstrated by the participant; or “(B) for cause. “(2) Effect of release for compelling circumstances.— If a participant eligible for release under paragraph (1)(A) is serving in an approved national service position, the recipient of assistance under section 121 or a program sponsoring an approved national service position may elect— “(A) to grant such release and provide to the participant that portion of the national service educational award corresponding to the portion of the term of service actually completed, as provided in section 147(c); or “(B) to permit the participant to temporarily suspend performance of the term of service for a period of up to 2 years (and such additional period as tne Corporation may allow for extenuating circumstances) and, upon completion of such period, to allow return to the program with which the individual was serving in order to complete the remainder of the term of service and obtain the entire national service educational award. “(3) Effect of release for cause.— A participant released for cause may not receive any portion of tne national service educational award. “SEC. 140. LIVING ALLOWANCES FOR NATIONAL SERVICE PARTICIPANTS. “(a) Provision of Living Allowance.— “(1) Living allowance required.— Subject to paragraph (3), a national service program carried out using assistance provided under section 121 shall provide to each participant who participates on a full-time basis in the program a living allowance in an amount equal to or greater than the average annual subsistence allowance provided to VISTA volunteers under section 105 of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4955). “(2) Limitation on federal share.— The amount of the annual living allowance provided under paragraph (1) that may be paid using assistance provided under section 121 and using any other Federal funds shall not exceed 85 percent of the total average annual provided to VISTA volunteers under 107 STAT. 812section 105 of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4955). “(3) Maximum living allowance.— Except as provided in subsection (c), the total amount of an annual living allowance that may be provided to a participant in a national service program shall not exceed 200 percent of the average annual subsistence allowance provided to VISTA volunteers under section 105 of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4955). “(4) Proration of living allowance.— The amount provided as a living allowance under this subsection shall be prorated in the case of a participant who is authorized to serve a reduced term of service under section 139(b)(3). “(5) Waiver or reduction of living allowance.— The Corporation may waive or reduce the requirement of paragraph (1) with respect to such national service program if such program demonstrates that— “(A) such requirement is inconsistent with the objectives of the program; and “(B) the amount of the living allowance that will be provided to each full-time participant is sufficient to meet the necessary costs of living (including food, housing, and transportation) in the area in which the program is located. "(6) Exemption.— The requirement of paragraph (1) shall not apply to any program that was in existence on the date of the enactment of the National and Community Service Trust Act of 1993. “(b) Coverage of Certain Employment-Related Taxes.— To the extent a national service program that receives assistance under section 121 is subject, with respect to the participants in the program, to the taxes imposed on an employer under sections 3111 and 3301 of the Internal Revenue Code of 1986 (26 U.S.C. 3111, 3301) and taxes imposed on an employer under a workmen’s compensation act, the assistance provided to the program under section 121 shall include an amount sufficient to cover 85 percent of such taxes based upon the lesser of— “(1) the total average annual subsistence allowance provided to VISTA volunteers under section 105 of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4955); and “(2) the annual living allowance established by the program. “(c) Exception From Maximum Living Allowance for Certain Assistance.— A professional corps program described in section 122(a)(8) that desires to provide a living allowance in excess of the maximum allowance authorized in subsection (a)(3) may still apply for such assistance, except that— “(1) any assistance provided to the applicant under section 121 may not be used to pay for any portion of the allowance; “(2) the applicant shall apply for such assistance only by submitting an application to the Corporation for assistance on a competitive basis; and “(3) the national service program shall be operated directly by the applicant and shall meet urgent, unmet human, educational, environmental, or public safety needs, as determined by the Corporation. “(d) Health Insurance.— 107 STAT. 813 “(1) In general.— A State or other recipient of assistance under section 121 shall provide a basic health care policy for each full-time participant in a national service program carried out or supported using the assistance, if the participant is not otherwise covered by a health care policy. Not more than 85 percent of the cost of a premium shall be provided by the Corporation, with the remaining cost paid by the entity receiving assistance under section 121. The Corporation shall establish minimum standards that all plans must meet in order to qualify for payment under this part, any circumstances in which an alternative health care policy may be substituted for the basic health care policy, and mechanisms to prohibit participants from dropping existing coverage. “(2) Option.— A State or other recipient of assistance under section 121 may elect to provide from its own funds a health care policy for participants that does not meet all of the standards established by the Corporation if the fair market value of such policy is equal to or greater than the fair market value of a plan that meets the minimum standards established by the Corporation, and is consistent with other applicable laws. “(e) Child Care.— “(1) Availability.— A State or other recipient of assistance under section 121 shall— “(A) make child care available for children of each full-time participant who needs child care in order to participate in a national service program carried out or supported by the recipient using the assistance; or “(B) provide a child care allowance to each full-time participant in a national service program who needs such assistance in order to participate in the program. “(2) Guidelines.— The Corporation shall establish guidelines regarding the circumstances under which child care shall be made available under this subsection and the value of any allowance to be provided. “(f) Individualized Support Services.— A State or other recipient of assistance under section 121 shall provide reasonable accommodation, including auxiliary aids and services (as defined in section 3(1) of the Americans with Disabilities Act of 1990 (42 U.S.C. 12102(1))), based on the individualized need of a participant who is a qualified individual with a disability (as defined in section 101(8) of such Act (42 U.S.C. 12111(8))). “(g) Waiver of Limitation on Federal Share.— The Corporation may waive in whole or in part the limitation on the Federal share specified in this section with respect to a particular national service program in any fiscal year if the Corporation determines that such a waiver would be equitable due to a lack of available financial resources at the local level. “(h) Limitation on Number of Terms of Service for Federally Subsidized Living Allowance.— No national service program may use assistance provided under section 121, or any other Federal funds, to provide a living allowance under subsection (a), a health care policy under subsection (d), or child care or a child care allowance under subsection (e), to an individual for a third, or subsequent, term of service described in section 139(b) by the individual in a national service program carried out under this subtitle. 107 STAT. 814 “SEC. 141. NATIONAL SERVICE EDUCATIONAL AWARDS. “(a) Eligibility Generally.— A participant in a national service program carried out using assistance provided to an applicant under section 121 shall be eligible for the national service educational award described in subtitle D if the participant— “(1) serves in an approved national service position; and “(2) satisfies the eligibility requirements specified in section 146 with respect to service in that approved national service position. “(b) Special Rule for VISTA Volunteers—A VISTA volunteer who serves in an approved national service position shall be ineligible for a national service educational award if the VISTA volunteer accepts the stipend authorized under section 105(a)(1) of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4955(a)(1)).”. (c) Table of Contents Related to Subtitle C.— Section 1(b) of the National and Community Service Act of 1990 (Public Law 101–610; 104 Stat. 3127) is amended by striking the items relating to subtitle C of title I of such Act and inserting the following new items: “Subtitle C— National Service Trust Program “Part I— Investment in National Service “Sec. 121. Authority to provide assistance and approved national service positions. Sec. 122. Types of national service programs eligible for program assistance. “Sec. 123. Types of national service positions eligible for approval for national service educational awards. “Sec. 124. Types of program assistance. “Sec. 125. Training and technical assistance. “Sec. 126. Other special assistance. “Part II— Application and Approval Process “Sec. 129. Provision of assistance and approved national service positions by competitive and other means. “Sec. 130. Application for assistance and approved national service positions. “Sec. 131. National service program assistance requirements. “Sec. 132. Ineligible service categories. “Sec. 133. Consideration of applications. “Part III— National Service Participants “Sec. 137. Description of participants. “Sec. 138. Selection of national service participants. “Sec. 139. Terms of service. “Sec. 140. Living allowances for national service participants. “Sec. 141. National service educational awards.” (d) Living Allowance Under Subtitle I.— Section 199M(a) of the National and Community Service Act of 1990 (former section 133(a) of such Act as redesignated in subsection (a)(3) of this section) (42 U.S.C. 12553(a)) is amended by striking paragraphs (1) and (2) and inserting the following new paragraphs: “(1) Living allowance required.— Subject to paragraph (3), each participant in a full-time youth corps program that receives assistance under this subtitle shall receive a living allowance in an amount equal to or greater than the average annual subsistence allowance provided to VISTA volunteers under section 105 of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4955). “(2) Limitation on federal share.— The amount of the annual living allowance provided under paragraph (1) that may be paid using assistance provided under this subtitle, section 121, and any other Federal funds shall not exceed 107 STAT. 81585 percent of the total average annual subsistence allowance provided to VISTA volunteers under section 105 of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4955). “(3) Maximum living allowance.— The total amount of an annual living allowance that may be provided to a participant in a full-time youth corps program that receives assistance under this subtitle shall not exceed 200 percent of the average annual subsistence allowance provided to VISTA volunteers under section 105 of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4955). “(4) Waiver or reduction of living allowance.— The Corporation may waive or reduce the requirement of paragraph (1) with respect to such national service program if such program demonstrates that— “(A) such requirement is inconsistent with the objectives of the program; and “(B) the amount of the living allowance that will be provided to each full-time participant is sufficient to meet the necessary costs of living (including food, housing, and transportation) in the area in which the program is located. “(5) Exemption.— The requirement of paragraph (1) shall not apply to any program that was in existence on the date of the enactment of the National and Community Service Trust Act of 1993.”. (e) Technical and Conforming Amendments.— (1) References.— Subtitle I of title I of the National and Community Service Act of 1990 (as so redesignated by subsection (a)(1) of this section) is amended by striking “Commission” each place it appears in sections 199A, 199C, 199D, 199F, 1991, 199M, and 199N (as redesignated in subsection (a)(3) of this section) and inserting “Corporation”. (2) General authority.— Section 199A of such Act (as redesignated in subsection (a)(3) of this section) (42 U.S.C. 12541) is amended— (A) by striking “under section 102”; (B) by striking “, to the Secretary of the Interior, or to the Director of ACTION” and inserting “or to the Secretary of the Interior”; and (C) by adding at the end the following new sentence: “To the extent practicable, the Corporation shall apply the provisions of subtitle C in making grants under this section.”. (3) Purchase of capital equipment.— Section 199B of such Act (as redesignated in subsection (a)(3) of this section) (42 U.S.C. 12542) is amended to read as follows: “SEC. 199B. LIMITATION ON PURCHASE OF CAPITAL EQUIPMENT. “Not to exceed 10 percent of the amount of assistance made available to a program agency under this subtitle shall be used for the purchase of major capital equipment.”. (4) State application.— Section 199C of such Act (as redesignated in subsection (a)(3) of this section) (42 U.S.C. 12543) is amended— (A) in subsection (a)— (i) by striking “section 122(b)” and inserting “section 199A”; and 107 STAT. 816 (ii) by striking “, including the information required under subsection (b)” before the period at the end thereof; and (B) by striking subsections (c) and (d). (5) Focus of programs.— Section 199D of such Act (as redesignated in subsection (a)(3) of this section) (42 U.S.C. 12544) is amended— (A) by striking subsection (b); and (B) by redesignating subsection (c) as subsection (b). (6) Public lands.— Section 199F(b) of such Act (as redesignated in subsection (a)(3) of this section) (42 U.S.C. 12546(b)) is amended by striking “section 123” and inserting “section 199C”. (7) Preference.— Section 1991(a) of such Act (as redesignated in subsection (a)(3) of this section) (42 U.S.C. 12549) is amended by striking “section 123” and inserting “section 199C”. (8) Obsolete provisions.— Such subtitle is further amended— (A) by striking sections 199H and 199L (as redesignated in subsection (a)(3) of this section) (42 U.S.C. 12548, 12552); and (B) by redesignating sections 1991, 199J, 199K, 199M, 199N, and 199O (as previosly redesignated) as sections 199H, 1991, 199J, 199K, 199L, and 199M, respectively. (f) Table of Contents Related to Subtitle I.— Section 1(b) of the National and Community Service Act of 1990 (Public Law 101–610; 104 Stat. 3127) is amended by inserting after the item relating to section 1950 the following new items: “Subtitle I— American Conservation and Youth Corps “Sec. 199. Short title. “Sec. 199A. General authority. “Sec. 199B. Limitation on purchase of capital equipment. “Sec. 199C. State application. “Sec. 199D. Focus of programs. “Sec. 199E. Related programs. “Sec. 199F. Public lands or Indian lands. “Sec. 199G. Training and education services. “Sec. 199H. Preference for certain projects. “Sec. 1991. 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.”.