MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Public Health and Welfare; Appropriations

By: Representatives Wallace, Bozeman, Coleman (29th), Thornton

AN ACT TO CREATE SERVICE PROGRAMS TO ADDRESS UNMET HUMAN EDUCATIONAL, ENVIRONMENTAL OR PUBLIC SAFETY NEEDS TO BE ADMINISTERED BY THE DEPARTMENT OF HUMAN SERVICES; TO PROVIDE GRANTS FOR SUCH SERVICE PROGRAMS; TO PROVIDE TRAINING FOR INDIVIDUALS ELIGIBLE TO PARTICIPATE IN SERVICE PROGRAMS; TO PROVIDE ELIGIBILITY CRITERIA; TO PROVIDE VARIOUS METHODS OF PROGRAM ASSISTANCE; TO PROVIDE FOR THE APPLICATION PROCESS FOR ASSISTANCE AND APPROVED SERVICE POSITIONS; TO SPECIFY PROGRAM ASSISTANCE REQUIREMENTS; TO PROVIDE THAT CERTAIN SERVICE CATEGORIES SHALL BE INELIGIBLE; TO PROVIDE A DESCRIPTION OF PARTICIPANTS; TO PROVIDE FOR THE SELECTION OF PARTICIPANTS; TO PROVIDE FOR TERMS OF SERVICE; TO PROVIDE A LIVING ALLOWANCE FOR SERVICE PARTICIPANTS; TO PROVIDE FOR SERVICE EDUCATIONAL AWARDS; TO CREATE THE MISSISSIPPI SERVICE TRUST IN THE STATE TREASURY AND PROVIDE FOR ITS ADMINISTRATION; TO PROVIDE ELIGIBILITY CRITERIA FOR AWARDS FROM THE TRUST; TO PROVIDE FOR THE USE AND DISBURSEMENT OF AWARDS; TO PROVIDE FOR THE FOCUS OF PROGRAMS; TO PROVIDE TRAINING AND EDUCATION SERVICES; TO PROVIDE FOR PREFERENCE OF CERTAIN PROJECTS; TO PROVIDE ENROLLMENT CRITERIA; TO PROVIDE A LIVING ALLOWANCE; TO AUTHORIZE THE USE OF VOLUNTEERS; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) Subject to the availability of appropriations for this purpose, the Department of Human Services (department) may make grants to counties, municipalities, public or private nonprofit organizations, and institutions of higher learning for the purpose of assisting the recipients of the grants:

(a) To carry out full- or part-time service programs, including summer programs, described in Section 2 of this act; and

(b) To make grants in support of other service programs described in Section 2 of this act that are carried out by other entities.

(2) (a) The department may enter into a contract or cooperative agreement with another state agency to support a service program carried out by the agency. The support provided by the department under the contract or cooperative agreement may include the transfer to the state agency of funds available to the department under this act.

(b) A state agency receiving assistance under this act shall not be required to satisfy the matching funds requirements specified in subsection (5) of this section.

(c) A state agency receiving assistance under this act shall consult with the counties in which projects will be conducted using such assistance in order to ensure that the projects do not duplicate projects conducted by service programs.

(d) A state agency that enters into a contract or cooperative agreement under paragraph (a) of this subsection shall, in an appropriate case, enter into a contract or cooperative agreement with an entity that is carrying out a service program in a county that is in existence in the county as of the date of the contract or cooperative agreement and is of high quality, in order to support the service program.

(3) As part of the provision of assistance under subsections (1) and (2) of this section, the department shall:

(a) Approve the provision of service educational awards described in this act for the participants who serve in service programs carried out using such assistance; and

(b) Deposit in the Mississippi Service Trust established in Section 17 of this act an amount equal to the product of:

(i) The value of a service educational award under Section 19 of this act; and

(ii) The total number of approved service positions to be provided.

(4) (a) Not more than five percent (5%) of the amount of assistance provided to the original recipient of a grant or transfer of assistance under subsection (1) or (2) of this section for a fiscal year may be used to pay for administrative costs incurred by:

(i) The recipient of the assistance; and

(ii) Service programs carried out or supported with the assistance.

(b) The department may by rule prescribe the manner and extent to which:

(i) Assistance provided under subsection (1) or (2) of this section may be used to cover administrative costs; and

(ii) That portion of the assistance available to cover administrative costs should be distributed between:

1. The original recipient of the grant or transfer of assistance under such subsection; and

2. Service programs carried out or supported with the assistance.

(5) (a) Except as provided in Section 15 of this act, the state share of the cost of carrying out a service program that receives the assistance under subsection (1) of this section, whether the assistance is provided directly or as a subgrant from the original recipient of the assistance, may not exceed seventy-five percent (75%) of such cost.

(b) In providing for the remaining share of the cost of carrying out a service program, the program:

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

(ii) May provide for such share through state sources or local sources, or other federal sources.

(c) In providing a payment in cash under paragraph (b)(i) of this subsection as part of providing for the remaining share of the cost of carrying out a service program, the program may count not more than eighty-five percent (85%) of the cost of providing a health care policy described in Section 15 of this act toward such share.

(d) The department may waive in whole or in part the requirements of paragraph (a) of this subsection with respect to a service program in any fiscal year if the department determines that such a waiver would be equitable due to a lack of available financial resources at the local level.

SECTION 2. (1) The recipient of a grant under Section 1 of this act and each state agency receiving assistance under Section 1 of this act shall use the assistance, directly or through subgrants to other entities, to carry out full- or part-time service programs, including summer programs, that address unmet human, educational, environmental, or public safety needs. Subject to subsection (2)(a) of this section, these service programs may include the following types of service programs:

(a) A community corps program that meeds 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.

(b) 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) and other conservation corps or youth service corps that performs service, that:

(i) Undertakes meaningful service projects with visible public benefits, including natural resource, urban renovation, or human services projects;

(ii) Includes as participants youths and young adults between the ages of sixteen (16) and twenty-five (25) years, 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

(iii) Provides those participants who are youths and young adults with:

1. Crew-based, highly structured, and adult-supervised work experience, life skills, education, career guidance and counseling, employment training, and support services; and

2. The opportunity to develop citizenship values and skills through service to their community and the state.

(c) 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.

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

(i) 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

(ii) 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.

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

(f) 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:

(i) Students who are attending an institution of higher learning, including students participating in a work-study program assisted under Part C of Title IV of the Higher Education Act of 1965 (42 USCS Section 2751 et seq.);

(ii) Teams composed of such students; or

(iii) Teams composed of a combination of such students and community residents.

(g) A preprofessional training program in which students enrolled in an institution of higher learning:

(i) Receive training in specified fields, which may include classes containing service-training;

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

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

(h) A professional corps program that recruits and places qualified participants in positions:

(i) As teachers, nursing 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;

(ii) That may include a salary in excess of the maximum living allowance authorized in this act; and

(iii) That are sponsored by public or private nonprofit employers who agree to pay one hundred percent (100%) of the salaries and benefits of the participants.

(i) A program in which economically disadvantaged individuals who are between the ages of sixteen (16) and twenty-four (24) years, 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:

(i) The housing needs of low-income families and the homeless; and

(ii) The need for community facilities in low-income areas.

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

(k) 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.

(l) 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:

(i) Meet the needs of low-income children and youth age eighteen (18) years and younger, such as providing after-school "safe places," including schools, with opportunities for learning and recreation; or

(ii) Be directed to other important unaddressed needs in such area.

(m) 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.

(n) A program that seeks to eliminate hunger in communities and rural areas through service in projects:

(i) Involving food banks, food pantries and nonprofit organizations that provide food during emergencies;

(ii) 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;

(iii) Seeking to address the long-term causes of hunger through education and the delivery of appropriate services; or

(iv) Providing training in basic health, nutrition, and life skills necessary to alleviate hunger in communities and rural areas.

(o) Such other service programs addressing unmet human, educational, environmental, or public safety needs as the department may designate.

(2) (a) The department shall establish qualification criteria for different types of service programs for the purpose of determining whether a particular service program should be considered to be a service program eligible to receive assistance or approved service positions under this act.

(b) In establishing qualification criteria under paragraph (a) of this subsection, the department shall consult with organizations and individuals with extensive experience in developing and administering effective service programs or regarding the delivery of human, educational, environmental, or public safety services to communities or persons.

(c) The qualification criteria established by the department under paragraph (a) of this subsection shall also be used by each recipient of assistance under Section 1 of this act that uses any portion of the assistance to conduct a grant program to support other service programs.

(d) The department shall encourage service programs eligible to receive assistance or approved service positions under this act 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.

(3) (a) (i) In order to concentrate efforts on meeting certain unmet human, educational, environmental, or public safety needs and to achieve the other purposes of this act, the department shall establish, and after reviewing the strategic plan approved, periodically alter priorities as appropriate regarding the types of service programs to be assisted and the purposes for which such assistance may be used.

(ii) Consistent with paragraph (d) of this subsection, counties shall establish, and through the service plan process, periodically alter priorities as appropriate regarding the service programs to be assisted. The county priorities shall be subject to department review as part of the application process.

(b) The department shall provide advance notice to potential applicants of any service priorities to be in effect under this subsection for a fiscal year. The notice shall specifically include:

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

(ii) A description of the service programs that are designated by the department as eligible for priority consideration in the next competitive distribution of assistance under Section 1 of this act.

(c) The department shall by regulation establish procedures to ensure the equitable treatment of service programs that:

(i) Receive funding under this act for multiple years; and

(ii) Would be adversely affected by annual revisions in such service priorities.

(d) Any service priorities established by the department under this subsection shall also be used by each recipient of funds under Section 1 of this act that uses any portion of the assistance to conduct a grant program to support other service programs.

SECTION 3. The department may approve of any of the following service positions as an approved service position that includes the service educational award described in this act as one of the benefits to be provided for successful service in the position:

(a) A position for a participant in a service program described in section 2 of this act that receives assistance under subsection (1) or (2) of Section 1 of this act.

(b) A position for a participant in a program that:

(i) Is carried out by a county municipality, a public or private nonprofit organization, an institution of higher learning, or a state agency; and

(ii) Would be eligible to receive assistance under Section 1 of this act, based on criteria established by the department, but has not applied for such assistance.

(c) A position involving service as a VISTA volunteer under Title I of the Domestic Volunteer Service Act of 1973 (42 USCS Section 4951 et seq.).

(d) A position facilitating service-learning in a program described in Section 2 of this act that is eligible for assistance.

(e) A position for a participant in the Civilian Community Corps under Subtitle E (42 USCS Section 12611 et seq.).

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

(g) Such other service positions as the department considers to be appropriate. (P.L. 103-82, Title I, Subtitle A, Section 101(b), 107 Stat. 794.)

SECTION 4. (1) The department may provide assistance under Section 1 of this act to a qualified applicant that submits an application for the planning of a service program. Assistance provided in accordance with this subsection may cover a period of not more than one (1) year.

(2) The department may provide assistance under Section 1 of this act to a qualified applicant that submits an application for the establishment, operation, or expansion of a service program. Assistance provided in accordance with this subsection may cover a period of not more than three (3) years, but may be renewed by the department upon consideration of a new application.

(3) The department may provide assistance under Section 1 of this act to a qualified applicant that submits an application for the expansion of a proven service program to another geographical location. Assistance provided in accordance with this subsection may cover a period of not more than three (3) years, but may be renewed by the department upon consideration of a new application.

(4) The requirements of this section shall apply to any county or other applicant receiving assistance under Section 1 of this act that proposes to conduct a grant program using the assistance to support other service programs.

SECTION 5. (1) The department may conduct, directly or by grant or contract, appropriate training programs regarding service in order to:

(a) Improve the ability of service programs assisted under Section 1 of this act to meet human, educational, environmental, or public safety needs in communities:

(i) Where services are needed most; and

(ii) Where programs do not exist, or are too limited to meet community needs, as of the date on which the department makes the grant or enters into the contract;

(b) Promote leadership development in such programs;

(c) Improve the instructional and programmatic quality of such programs to build an ethic of civic responsibility;

(d) Develop the management and budgetary skills of program operators;

(e) Provide for or improve the training provided to the participants in such programs; and

(f) Encourage service programs to adhere to risk management procedures, including the training of participants in appropriate risk management practices.

(2) To the extent appropriate and necessary, the department shall make technical assistance available to counties, labor organizations, organizations operated by young adults, organizations serving economically disadvantaged individuals, and other entities described in Section 1 of this act:

(a) To develop service programs; or

(b) To apply for assistance under such section or under a grant program conducted using assistance provided under such section.

SECTION 6. (1) (a) From amounts appropriated for a fiscal year, the department may make a grant to a county to assist the county to establish or operate a county commission on community service.

(b) Notwithstanding the amounts specified in paragraph (a) of this subsection, the amount of a grant that may be provided to a county commission under this subsection, together with other funds available to establish or operate the county commission, may not exceed:

(i) Eighty-five percent (85%) of the total cost to establish or operate the county commission for the first year for which the county commission receives assistance under this subsection; and

(ii) Such smaller percentage of such cost as the department may establish for the second, third, and fourth years of such assistance in order to ensure that the state share does not exceed fifty percent (50%) of such costs for the fifth year, and any subsequent year, for which the county commission receives assistance under this subsection.

(2) The department may undertake activities to involve in disaster relief efforts youth corps programs described in Section 2 of this act and other programs that receive assistance.

(3) (a) The department may make challenge grants under this subsection to service programs that receive assistance under Section 1 of this act.

(b) The department 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:

(i) Are high-quality service programs; and

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

(c) A challenge grant under this subsection may provide not more than One Dollar ($1.00) of assistance under this subsection for each One Dollar ($1.00) in cash raised by the service program from private sources in excess of amounts required to be provided by the program to satisfy matching funds requirements under Section 1 of this act. The department shall establish a ceiling on the amount of assistance that may be provided to a service program under this subsection.

SECTION 7. (1) (a) Of the funds allocated by the department for provision of assistance for a fiscal year, the department shall make a grant to each of the several counties. The amount allotted as a grant to each such county under this paragraph for a fiscal year shall be equal to the amount that bears the same ratio to thirty-three and one-third percent (33-1/3%) of the allocated funds for that fiscal year as the population of the county bears to the total population of the state.

(b) If a county fails to apply for, or fails to give notice to the department of its intent to apply for, an allotment under this section, the department shall use the amount that would have been allotted under this subsection to the county:

(i) To make grants (and provide approved service positions in connection with such grants) to other eligible entities that propose to carry out service programs in the county; and

(ii) After making grants under subparagraph (i), to make a reallotment to other counties with approved applications.

(2) The department shall ensure that each individual selected during a fiscal year will receive the service educational award described in this act if the individual satisfies the eligibility requirements for the award. Funds for approved service positions required by this subsection for a fiscal year shall be deducted from the total funding for approved service positions to be available for distribution under subsections (1) and (4) of this section for that fiscal year.

(3) From amounts appropriated for a fiscal year, the department may reserve such amount as the department considers to be appropriate for the purpose of making assistance available.

(4) (a) Of the funds allocated by the department for provision of assistance under Section 1 of this act for a fiscal year, the department shall use not less than thirty-three and one-third percent (33-1/3%) of the allocated funds to make grants to counties on a competitive basis under Section 1 of this act.

(b) The department shall distribute on a competitive basis to subdivisions of counties, public or private nonprofit organizations (including labor organizations), institutions of higher learning, and state agencies the remainder of the funds allocated by the department for provision of assistance under Section 1 of this act for a fiscal year.

(c) The department may not provide more than one-third (1/3) of the funds available for competitive distribution under paragraph (b) of this subsection for a fiscal year to state agencies under Section 1 of this act.

(d) The department may limit the categories of eligible applicants for assistance under paragraph (b) of this subsection consistent with the priorities established by the department.

(e) (i) From amounts appropriated for a fiscal year, subject to the limitation in this act, the executive director of the department shall reserve an amount that is not less than one percent (1%) of such amounts, in order to make supplemental grants as provided in subparagraph (i) and outreach grants as provided in subparagraph (iii). The amount reserved pursuant to this paragraph shall be available until expended.

(ii) The executive director of the department shall make grants from a portion of the funds reserved under subparagraph (i) to entities that:

1. Receive a grant to carry out a service program;

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

3. 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.

Funds made available through such a supplemental grant shall be made available for the same purposes, and subject to the same requirements, as funds made available through a grant made under paragraph (a) or (b) of this subsection.

(iii) From the portion of the funds reserved under subparagraph (i) that is not used to make grants under subparagraph (ii), the executive director of the department shall make grants to public or private nonprofit organizations to pay for the state share described in Section 1 of this act of:

1. Providing information about the programs to such individuals with a disability who desire to perform national service; and

2. Enabling the individuals to participate in activities carried out through such programs, which may include assisting the placement of the individuals in approved service positions.

To be eligible to receive a grant under this subparagraph, an organization shall submit an application to the executive director of the department at such time, in such manner, and containing such information as the executive director may require.

(5) The allotment of assistance and approved service positions to a county, and the competitive distribution of assistance, shall be made by the department only pursuant to an application submitted by a county or other applicant and approved by the department.

(6) The department may not approve positions as approved service positions under this act for a fiscal year in excess of the number of such positions for which the department has sufficient available funds for that fiscal year. If appropriations are insufficient to provide the maximum allowable service educational awards for all eligible participants, the department is authorized to make necessary and reasonable adjustments to program rules.

(7) (a) The department may enter into agreements with persons or entities who offer to sponsor service positions for which the person or entity will be responsible for supplying the funds necessary to provide a service educational award. The distribution of these approved 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 service positions to be available for distribution under this section.

(b) Funds provided pursuant to an agreement under paragraph (a) of this subsection shall be deposited in a special account in the State Treasury until such time as the funds are needed.

SECTION 8. (1) To be eligible to receive assistance under Section 1 of this act or approved service positions for participants who serve in the service programs to be carried out using the assistance, a county, public or private nonprofit organization, institution of higher learning, or state agency shall prepare and submit to the department an application at such time, in such manner, and containing such information as the department may reasonably require.

(2) In order to have adequate information upon which to consider an application, the department may require the following information to be provided in an application submitted under subsection (1) of this act:

(a) A description of the service programs proposed to be carried out directly by the applicant using assistance provided.

(b) A description of the service programs that are selected by the applicant to receive a grant using assistance requested and a description of the process and criteria by which the programs were selected.

(c) A description of other funding sources to be used, or sought to be used, for the service programs referred to in paragraphs (a) and (b) of this subsection, 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 state funds.

(d) 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.

(e) A description of the plan to be used to recruit participant, including youth who are individuals with disabilities and economically disadvantaged young men and women, for the service programs referred to in paragraphs (a) and (b) of this subsection.

(f) A description of the manner in which the service programs referred to in paragraphs (a) and (b) of this subsection build on existing programs, including state programs.

(g) A description of the manner in which the service programs referred to in paragraphs (a) and (b) of this subsection will involve participants:

(i) 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

(ii) In leadership positions in implementing and evaluating the program.

(h) Measurable goals for the service programs, and a strategy to achieve such goals, in terms of:

(i) The impact to be made in meeting unmet human, educational, environmental, or public safety needs; and

(ii) The service experience to be provided to participants in the programs.

(i) A description of the manner and extent to which the service programs conform to the service priorities established by the department.

(j) 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.

(k) A description of the type and number of proposed service positions in which participants will receive the service educational award and a description of the manner in which approved service positions will be apportioned by the applicant.

(l) 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 service programs, including the identity of the individual representing each appropriate labor organization (if any) who was consulted and the nature of the consultation.

(m) Such other information as the department may reasonably require.

(3) An application submitted under subsection (1) of this section shall contain the following information:

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

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

(4) (a) This subsection shall apply in the case of an application in which:

(i) The applicant is not seeking assistance, but requests service educational awards for individuals serving in service positions; or

(ii) The applicant requests service educational awards for service positions, but the positions are not positions in a service program for which assistance my be provided under Section 1 of this act.

(b) For the applications described in paragraph (a) of this subsection, the department shall establish special application requirements in order to determine:

(i) Whether the service positions meet unmet human, educational, environmental, or public safety needs and meet the criteria for assistance under this act; and

(ii) Whether the department should approve the positions as approved service positions.

(5) (a) The application of a county for approved service positions or for a grant under Section 1 of this act shall be submitted by the county commission.

(b) The application of a county shall contain an assurance that all assistance provided under Section 1 of this act to the county will be used to support service programs that were selected by the county on a competitive basis. In making such competitive selections, the county shall seek to ensure the equitable allocation within the county of assistance and approved service positions provided under this act to the county taking into consideration such factors as the location of the programs applying to the county population density, and economic distress.

(c) The application of a county shall also contain an assurance that not less than sixty percent (60%) of the assistance will be used to make grants in support of service programs other than service programs carried out by a county agency. The department may permit a county to deviate from the percentage specified by this subsection if the county has not received a sufficient number of acceptable applications to comply with the percentage.

(6) (a) 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.

(b) For purposes of this subsection, the term "program applicant" means:

(i) A county, public or private nonprofit organization, institution of higher learning, or state agency submitting an application under this section; or

(ii) An entity applying for assistance or approved service positions through a grant program conducted using assistance provided to a county, public or private nonprofit organization, institution of higher learning, or state agency under Section 1 of this act.

(7) The department 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 department.

SECTION 9. (1) An application submitted under Section 8 of this act shall include an assurance by the applicant that any service program carried out by the applicant using assistance provided under Section 1 of this act and any service program supported by a grant made by the applicant using such assistance will:

(a) 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

(b) Comply with the nonduplication and nondisplacement requirements and the grievance procedure requirements.

(2) An application submitted under Section 8 of this act shall also include an assurance by the applicant that any service program carried out by the applicant using assistance provided under Section 1 of this act and any service program supported by a grant made by the applicant using such assistance will:

(a) Provide participants in the service program with the training, skills, and knowledge necessary for the projects that participants are called upon to perform;

(b) Provide support services to participants, such as the provision of appropriate information and support:

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

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

(c) Provide, if appropriate, structured opportunities for participants to reflect on their service experiences.

(3) An application submitted under Section 8 of this act shall also include an assurance by the applicant that any service program carried out by the applicant using assistance provided under Section 1 of this act and any service program supported by a grant made by the applicant using such assistance will:

(a) Provide in the design, recruitment, and operation of the program for broad-based input from:

(i) The community served and potential participants in the program; and

(ii) 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;

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

(c) In the case of a program that is not funded through a county, consult with and coordinate activities with the county commission for the county in which the program operates.

(4) (a) An application submitted under Section 8 of this act shall also include an assurance by the applicant that the applicant will:

(i) Arrange for an independent evaluation of any service program carried out using assistance provided to the applicant under Section 1 of this act or, with the approval of the department, conduct an internal evaluation of the program;

(ii) 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:

1. On communities and persons served by the projects performed by the program;

2. On participants who take part in the projects; and

3. In such other areas as the department may require; and

(iii) Cooperate with any evaluation activities undertaken by the department.

(b) Subject to paragraph (c) of this subsection, the department shall develop evaluation criteria and performance goals applicable to all service programs carried out with assistance provided under Section 1 of this act.

(c) The department may establish alternative evaluation requirements for service programs based upon the amount of assistance received under Section 1 of this act or received by a grant made by a recipient of assistance under such section. The determination of whether a service program is covered by this paragraph shall be made in such manner as the department may prescribe.

(5) Except as provided in Section 1 of this act, an application submitted under Section 8 of this act shall also include an assurance by the applicant that the applicant will:

(a) Ensure the provision of a living allowance and other benefits specified in Section 1 of this act, to participants in any service program carried out by the applicant using assistance provided under Section 1 of this act; and

(b) Require that each service program that receives a grant from the applicant using such assistance will also provide a living allowance and other benefits specified in Section 1 of this act to participants in the program.

(6) The department may also require an assurance by the applicant that any service program carried out by the applicant using assistance provided under Section 1 of this act and any service program supported by a grant made by the applicant using such assistance will select a portion of the participants for the program from among prospective participants recruited by the department or county commissions. The department may specify a minimum percentage of participants to be selected from the leadership pool and may vary the percentage for different types of service programs.

SECTION 10. An application submitted to the department under Section 8 of this act shall include an assurance by the applicant that any service program carried out using assistance provided under Section 1 of this act and any approved service position provided to an applicant will not be used to perform service that provides a direct benefit to any:

(a) Business organized for profit;

(b) Labor union;

(c) Partisan political organization;

(d) Organization engaged in religious activities, unless such service does not involve the use of assistance provided under Section 1 of this act or participants:

(i) To give religious instruction;

(ii) To conduct worship services;

(iii) To provide instruction as part of a program that includes mandatory religious education or worship;

(iv) 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

(v) To engage in any form of proselytization; or

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

SECTION 11. (1) The department shall apply the criteria described in subsections (3) and (4) of this section in determining whether:

(a) To approve an application submitted under Section 8 of this act and provide assistance under Section 1 of this act to the applicant; and

(b) To approve service positions described in the application as service positions that include the service educational award and provide such approved service positions to the applicant.

(2) (a) A county or other entity that uses assistance provided under Section 1 of this act to support service programs selected on a competitive basis to receive a share of the assistance shall use the criteria described in subsections (3) and (4) of this section when considering an application submitted by a service program to receive a portion of such assistance or an approved service position.

(b) The application of the county or other entity under Section 8 of this act shall contain:

(i) A certification that the county or other entity used these criteria in the selection of service programs to receive assistance;

(ii) 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

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

(3) The criteria required to be applied in evaluating applications submitted under Section 8 of this act are as follows:

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

(b) The innovative aspects of the service program and the feasibility of replicating the program.

(c) The sustainability of the service program, based on evidence such as the existence:

(i) Of strong and broad-based community support for the program; and

(ii) Of multiple funding sources or private funding for the program.

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

(e) The extent to which participants of the 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.

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

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

(ii) Areas that are environmentally distressed.

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

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

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

(g) In the case of applicants other than counties, the extent to which the application is consistent with the application under Section 8 of this act of the state in which the projects would be conducted.

(h) Such other criteria as the department considers to be appropriate.

(4) (a) The department shall ensure that recipients of assistance provided under Section 1 of this act are diverse and include projects to be conducted in those urban and rural areas in a county with the highest rates of poverty.

(b) The department may designate, under such criteria as may be established by the department, certain service programs or types of service programs described in Section 2 of this act for priority consideration in the competitive distribution of funds under Section 7 of this act. In designating service programs to receive priority, the department may include:

(i) Service programs carried out by another state agency;

(ii) Service programs that conform to the service priorities in effect under Section 2 of this act;

(iii) Innovative service programs;

(iv) Service programs that are well established in one or more counties at the time of the application and are proposed to be expanded to additional counties using assistance provided under Section 1 of this act;

(v) Grant programs in support of other 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;

(vi) Professional corps programs described in Section 2 of this act.

(c) In making a competitive distribution of funds under Section 7 of this act, the department may give priority consideration to a service program that is:

(i) Proposed in an application submitted by a county commission; and

(ii) Not one (1) of the types of programs described in paragraph (b) of this subsection, if the county commission provides an adequate explanation of the reasons why it should not be a priority of such county to carry out any of such types of programs in the county.

(d) The department shall:

(i) Establish panels of experts for the purpose of securing recommendations on applications submitted under Section 8 of this act for more than Twenty-five Thousand Dollars ($25,000.00) in assistance, or for service positions that would require more than Twenty-five Thousand Dollars ($25,000.00) in service awards; and

(ii) Consider the opinions of such panels prior to making such determinations.

(5) In making assistance available under Section 1 of this act and in providing approved service positions under Section 3 of this act, the department shall ensure that not less than fifty percent (50%) of the total amount of assistance to be distributed to counties under Section 7 of this act for a fiscal year is provided to carry out or support service programs and projects that:

(a) Are conducted in any of the areas described in subsection (3)(f) of this section or on state or other public lands, to address unmet human, educational, environmental, or public safety needs in such areas or on such lands; and

(b) Place a priority on the recruitment of participants who are residents of any of such areas or state or other public lands.

(6) (a) If the department rejects an application submitted by a county commission under Section 8 of this act for funds described in Section 7 of this act, the department shall promptly notify the county commission of the reasons for the rejection of the application.

(b) The department shall provide a county commission notified under paragraph (a) of this subsection with a reasonable opportunity to revise and resubmit the application. At the request of the county commission, the department shall provide technical assistance to the county commission as part of the resubmission process. The department shall promptly reconsider an application resubmitted under this paragraph.

(c) The amount of any county's allotment under Section 7 of this act for a fiscal year that the department determines will not be provided for that fiscal year shall be available for distribution by the department.

SECTION 12. (1) For purposes of this act, an individual shall be considered to be a participant in a service program carried out using assistance provided under Section 1 of this act if the individual:

(a) Meets such eligibility requirements, directly related to the tasks to be accomplished, as may be established by the program;

(b) Is selected by the program to serve in a position with the program;

(c) Will serve in the program for a term of service specified in Section 14 of this act to be performed before, during, or after attendance at the institution of higher education;

(d) Is seventeen (17) years of age or older at the time the individual begins the term of service;

(e) 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 USCS Section 1091); and

(f) Is a citizen or national of the United States or lawful permanent resident alien of the United States.

(2) An individual shall be considered to be a participant in a youth corps program or a program that is carried out with assistance provided under Section 1 of this act if the individual:

(a) Satisfies the requirements specified in subsection (1) of this section, except paragraph (d) of such subsection; and

(b) Is between the ages of sixteen (16) and twenty-five (25), inclusive, at the time the individual begins the term of service.

(3) The department may waive the requirements of subsection (1)(e) of this section 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.

SECTION 13. (1) Subject to subsections (2) and (3) of this section and Section 9 of this act, the actual recruitment and selection of an individual to serve in a service program receiving assistance under Section 1 of this act or to fill an approved service position shall be conducted by the county, public or private nonprofit organization, institution of higher learning, state agency, or other entity to which the assistance and approved service positions are provided.

(2) The recruitment and selection of individuals to serve in service programs receiving assistance under Section 1 of this act or to fill approved service positions shall be consistent with the requirements of this act.

(3) Acceptance into a service program to serve a second term of service under Section 14 of this act shall only be available to individuals who perform satisfactorily in their first term of service.

(4) The department and each county commission shall establish a system to recruit individuals who desire to perform service and to assist the placement of these individuals in approved service positions, which may include positions available under Titles I and II of the Domestic Volunteer Service Act of 1973 (42 USCS Section 4951 et seq.). The department and county commissions shall disseminate information regarding available approved 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 USCS Section 701 et seq.) and other state agencies that primarily serve individuals with disabilities, and other appropriate entities, particularly those organizations that provide outreach to disadvantaged youths and youths who are individuals with disabilities.

(5) (a) From among individuals recruited under subsection (4) of this section, the department may select individuals with significant leadership potential, as determined by the department, to receive special training to enhance their leadership ability. the leadership training shall be provided by the department directly or through a grant or contract.

(b) In selecting individuals to receive leadership training under this subsection, the department shall make special efforts to select individuals who have served:

(i) In the Peace Corps;

(ii) As VISTA volunteers;

(iii) As participants in service programs receiving assistance under Section 1 of this act;

(iv) As participants in programs receiving assistance under subtitle D of the National and Community Service Act of 1990 (former 42 USCS Section 12571 et seq.), as in effect on the day before July 1, 1999; or

(v) As members of the Armed Forces of the United States and who were honorably discharged from such service.

(c) At the request of a program that receives assistance under the service laws, the department may assign an individual who receives leadership training under paragraph (a) of this subsection 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.

(6) The department 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 service educational award.

SECTION 14. (1) As a condition of receiving a service education award, a participant in an approved service position shall be required to perform full- or part-time service for at least one (1) term of service specified in subsection (2) of this section.

(2) (a) An individual performing full-time service in an approved service position shall agree to participate in the program sponsoring the position for not less than one thousand seven hundred (1,700) hours during a period of not less than nine (9) months and not more than one (1) year.

(b) Except as provided in paragraph (c) of this subsection, an individual performing part-time service in an approved service position shall agree to participate in the program sponsoring the position for not less than nine hundred (900) hours during a period of:

(i) Not more than two (2) years; or

(ii) Not more than three (3) years if the individual is enrolled in an institution of higher learning while performing all or a portion of the service.

(c) The department may reduce the number of hours required to be served to successfully complete part-time service to a level determined by the department except that any reduction in the required term of service shall include a corresponding reduction in the amount of any service educational award that may be available with regard to that service.

(3) (a) A recipient of assistance under Section 1 of this act or a program sponsoring an approved service position may release a participant from completing a term of service in the position:

(i) For compelling personal circumstances as demonstrated by the participant; or

(ii) For cause.

(b) If a participant eligible for release under paragraph (a)(i) of this subsection is serving in an approved service position, the recipient of assistance under Section 1 of this act or a program sponsoring an approved service position may elect:

(i) To grant such release and provide to the participant that portion of the service educational award corresponding to the portion of the term of service actually completed; or

(ii) To permit the participant to temporarily suspend performance of the term of service for a period of up to two (2) years (and such additional period as the department 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 service educational award.

(c) A participant released for cause may not receive any portion of the service educational award.

SECTION 15. (1) (a) Subject to paragraph (c) of this subsection, a service program carried out using assistance provided under Section 1 of this act 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 USCS Section 4955).

(b) The amount of the annual living allowance provided under paragraph (a) of this subsection that may be paid using assistance provided under Section 1 of this act and using any federal funds shall not exceed eighty-five percent (85%) of the total average annual provided to VISTA volunteers under Section 105 of the Domestic Volunteer Service Act of 1973 (42 USCS Section 4955).

(c) Except as provided in subsection (3) of this section, the total amount of an annual living allowance that may be provided to a participant in a service program shall not exceed two hundred percent (200%) of the average annual subsistence allowance provided to VISTA volunteers under Section 105 of the Domestic Volunteer Service Act of 1973 (42 USCS Section 4955).

(d) 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 14 of this act.

(e) The department may waive or reduce the requirement of paragraph (a) of this subsection with respect to such service program if such program demonstrates that:

(i) Such requirement is inconsistent with the objectives of the program; and

(ii) 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.

(f) The requirement of paragraph (a) of this subsection shall not apply to any program that was in existence on July 1, 1999.

(2) To the extent a service program that receives assistance under Section 1 of this act 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 USCS Sections 3111 and 3301) and taxes imposed on an employer under a workmen's compensation act, the assistance provided to the program under Section 1 of this act shall include an amount sufficient to cover eighty-five percent (85%) of such taxes based upon the lesser of:

(a) The total average annual subsistence allowance provided to VISTA volunteers under Section 105 of the Domestic Volunteer Service Act of 1973 (42 USCS Section 4955); and

(b) The annual living allowance established by the program.

(3) A professional corps program that desires to provide a living allowance in excess of the maximum allowance authorized in subsection (1)(c) of this section may still apply for such assistance, except that:

(a) Any assistance provided to the applicant under Section 1 of this act may not be used to pay for any portion of the allowance;

(b) The applicant shall apply for such assistance only by submitting an application to the department for assistance on a competitive basis; and

(c) The 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 department.

(4) (a) A county or other recipient of assistance under Section 1 of this act shall provide a basic health care policy for each full-time participant in a service program carried out or supported using the assistance, if the participant is not otherwise covered by a health care policy. Not more than eighty-five percent (85%) of the cost of a premium shall be provided by the department, with the remaining cost paid by the entity receiving assistance under Section 1 of this act. The department shall establish minimum standards that all plans must meet in order to qualify for payment under this act, 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.

(b) A county or other recipient of assistance under Section 1 of this act 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 department 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 department and is consistent with other applicable laws.

(5) (a) A county or other recipient of assistance under Section 1 of this act shall:

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

(ii) Provide a child care allowance to each full-time participant in a service program who needs such assistance in order to participate in the program.

(b) The department 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.

(6) A county or other recipient of assistance under Section 1 of this act shall provide reasonable accommodation, including auxiliary aids and services (as defined in Section 3(1) of the Americans with Disabilities Act of 1990 (42 USCS Section 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 USCS Section 12111(8))).

(7) The department may waive in whole or in part the limitation on the state share specified in this section with respect to a particular service program in any fiscal year if the department determines that such a waiver would be equitable due to a lack of available financial resources at the local level.

(8) No service program may use assistance provided under Section 1 of this act, or any other state funds, to provide a living allowance under subsection (1) of this section, a health care policy under subsection (4) of this section, or child care or a child care allowance under subsection (5) of this section to an individual for a third, or subsequent, term of service described in Section 14 of this act by the individual in a service program carried out under this act.

SECTION 16. (1) A participant in a service program carried out using assistance provided to an applicant under Section 1 of this act shall be eligible for the service educational award described in this act if the participant:

(a) Serves in an approved service position; and

(b) Satisfies the eligibility requirements with respect to service in that approved service position.

(2) 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 USCS Section 4955(a)(1)).

SECTION 17. (1) There is established in the State Treasury an account to be known as the Mississippi Service Trust. The trust shall consist of:

(a) From the amounts appropriated to the department and made available to carry out this act, such amounts as the department may designate to be available for the payment of:

(i) Service educational awards; and

(ii) Interest expenses;

(b) Any amounts received by the department as gifts, bequests, devises, or otherwise; and

(c) The interest on, and proceeds from the sale or redemption of, any obligations held by the trust.

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

(3) Amounts in the trust shall be available, to the extent provided for in advance by appropriation, for payments of service educational awards.

(4) Not later than January 1 of each year, the department shall submit a report to the Legislature on the financial status of the trust during the preceding fiscal year. Such report shall:

(a) Specify the amount deposited to the trust from the most recent appropriation to the department, the amount received by the department as gifts, bequests, devises, or otherwise during the period covered by the report, and any amounts obtained by the trust pursuant to subsection (1)(c) of this section;

(b) Identify the number of individuals who are currently performing service to qualify, or have qualified, for service educational awards;

(c) Identify the number of individuals whose expectation to receive service educational awards during the period covered by the report:

(i) Has been reduced; or

(ii) Has lapsed; and

(d) Estimate the number of additional approved service positions that the department will be able to make available under this act on the basis of any accumulated surplus in the trust above the amount required to provide service educational awards to individuals identified under paragraph (b) of this subsection, including any amounts available as a result of the circumstances referred to in paragraph (c) of this subsection.

SECTION 18. (1) An individual shall receive a service educational award from the Mississippi Service Trust if the individual:

(a) Successfully completes the required term of service described in subsection (2) of this section in an approved service position;

(b) Was seventeen (17) years of age or older at the time the individual began serving in the approved service position or was an out-of-school youth serving in an approved service position with a youth corps program or other program described in Section 2 of this act;

(c) At the time the individual uses the service educational award:

(i) Has received a high school diploma, or the equivalent of such diploma;

(ii) Is enrolled at an institution of higher learning on the basis of meeting the standard described in paragraph (1) or (2) of subsection (a) of Section 484 of the Higher Education Act of 1965 (20 USCS Section 1091) and meets the requirements of subsection (a) of such section; or

(iii) Has received a waiver described in Section 12 of this act;

(d) Is a citizen or national of the United States or lawful permanent resident alien of the United States.

(2) The term of service for an approved service position shall not be less than the full- or part-time term of service specified in Section 14 of this act.

(3) Although an individual may serve more than two (2) terms of service described in subsection (2) of this section in an approved service position, the individual shall receive a service educational award from the Mississippi Service Trust only on the basis of the first and second of such terms of service.

(4) (a) An individual eligible to receive a service educational award under this section may not use such award after the end of the seven-year period beginning on the date the individual completes the term of service in an approved service position that is the basis of the award.

(b) The department may extend the period within which an individual may use a service educational award if the department determines that the individual:

(i) Was unavoidably prevented from using the service educational award during the original seven-year period; or

(ii) Performed another term of service in an approved service position during that period.

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

If convicted of: Ineligibility period is:

The possession of a controlled substance:

First conviction 1 year

Second Conviction 2 years

Third conviction indefinite

The sale of a controlled substance:

First conviction 2 years

Second conviction indefinite

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

(c) An individual whose eligibility has been suspended under paragraph (a) of this subsection and is convicted of a first offense may resume eligibility before the end of the period determined under such paragraph if the individual demonstrates that he or she has enrolled or been accepted for enrollment in a drug rehabilitation program described in paragraph (b) of this subsection.

(d) As used in this subsection, the term "controlled substance" has the meaning given in Section 102(6) of the Controlled Substances Act (21 USCS Section 802(6)).

(6) The department may establish by regulation demonstration programs for the creation and evaluation of innovative volunteer and community service programs.

SECTION 19. (1) Except as provided in subsection (3) of this section, an individual described in Section 18 of this act who successfully completes a required term of full-time service in an approved service position shall receive a service educational award having a value, for each of not more than two (2) of such terms of service, equal to ninety percent (90%) of:

(a) One-half (1/2) of an amount equal to the aggregate basic educational assistance allowance provided in 38 USCS Section 3015(b)(1) (as in effect on July 1, 1999), for the period referred to in 38 USCS Section 3013(a)(1) (as in effect on July 1, 1999), for a member of the Armed Forces who is entitled to such an allowance under 38 USCS Section 3011 and whose initial obligated period of active duty is two (2) years; less

(b) One-half (1/2) of the aggregate basic contribution required to be made by the member in 38 USCS Section 3011(b) (as in effect on July 1, 1999).

(2) Except as provided in subsection (3) of this section, an individual described in Section 18 of this act who successfully completes a required term of part-time service in an approved service position shall receive a service educational award having a value, for each of not more than two (2) of such terms of service, equal to fifty percent (50%) of value of the service educational award determined under subsection (1) of this section.

(3) If an individual serving in an approved service position is released in accordance with Section 14 of this act from completing the full-time or part-time term of service agreed to by the individual, the department may provide the individual with that portion of the service educational award approved for the individual that corresponds to the quantity of the term of service actually completed by the individual.

SECTION 20. (1) Amounts in the trust shall be available:

(a) To repay student loans in accordance with subsection (2) of this section;

(b) To pay all or part of the cost of attendance at an institution of higher learning in accordance with subsection (3) of this section;

(c) To pay expenses incurred in participating in an approved school-to-work program in accordance with subsection (4) of this section; and

(d) To pay interest expenses in accordance with regulations prescribed pursuant to subsection (5).

(2) (a) An eligible individual under Section 18 of this act who desires to apply the service educational award of the individual to the repayment of qualified student loans shall submit, in a manner prescribed by the department, an application to the department:

(i) Identifies, or permits the department to identify readily, the holder or holders of such loans;

(ii) Indicates, or permits the department to determine readily, the amounts of principal and interest outstanding on the loans;

(iii) Specifies, if the outstanding balance is greater than the amount disbursed under paragraph (b) of this subsection; and

(iv) Contains or is accompanied by such other information as the department may require.

(b) Upon receipt of an application from an eligible individual of an application that complies with paragraph (a) of this subsection, the department shall, as promptly as practicable consistent with paragraph (e) of this subsection, disburse the amount of the service educational award that the eligible individual has earned. Such disbursement shall be made by check or other means that is payable to the holder of the loan and requires the endorsement or other certification by the eligible individual.

(c) If the amount disbursed under paragraph (b) of this subsection is less than the principal and accrued interest on any qualified student loan, such amount shall be applied according to the specified priorities of the individual.

(d) Any holder receiving a loan payment pursuant to this subsection shall submit to the department such information as the department may require to verify that such payment was applied in accordance with this subsection and any regulations prescribed to carry out this subsection.

(e) The department upon disbursing the service educational award, shall notify the individual of the amount paid for each outstanding loan and the date of payment.

(f) The department may, by regulation, provide for the aggregation of payments to holders under this subsection.

(g) As used in this subsection, the term "qualified student loans" means:

(i) Any loan made, insured, or guaranteed pursuant to Title IV of the Higher Education Act of 1965 (20 USCS Section 1070 et seq.), other than a loan to a parent of a student pursuant to Section 428B of such act (20 USCS Section 1978-2); and

(ii) Any loan made pursuant to Title VII or VIII of the Public Health Service Act (42 USCS Section 292 et seq. or 296 et seq.).

(h) As used in this subsection, the term "holder" with respect to any eligible loan means the original lender or, if the loan is subsequently sold, transferred, or assigned to some other person, and such other person acquires a legally enforceable right to receive payments form the borrower, such other person.

(3) (a) An eligible individual under Section 18 of this act who desires to apply the individual's service educational award to the payment of current full-time or part-time educational expenses shall, on a form prescribed by the department, submit an application to the institution of higher learning in which the student will be enrolled that contains such information as the department may require to verify the individual's eligibility.

(b) An institution of higher learning that receives one or more applications that comply with paragraph (a) of this subsection shall submit to the department a statement, in a manner prescribed by the department, that:

(i) Identifies each eligible individual filing an application under paragraph (a) of this subsection for a disbursement of the individual's service educational award under this subsection;

(ii) Specifies the amounts for which such eligible individuals are, consistent with paragraph (f) of this subsection, qualified for disbursement under this subsection;

(iii) Certifies that:

1. The institution of higher learning has in effect a program participation agreement under Section 487 of the Higher Education Act of 1965 (20 USCS Section 1094);

2. The institution's eligibility to participate in any of the programs under Title IV of such act (20 USCS Section 1070 et seq.) has not been limited, suspended, or terminated; and

3. Individuals using service educational awards received under this act to pay for educational costs do not comprise more than fifteen percent (15%) of the total student population of the institution; and

(iv) Contains such provisions concerning financial compliance as the department may require.

(c) Upon receipt of a statement from an institution of higher learning that complies with paragraph (b) of this subsection, the department shall, subject to paragraph (d) of this subsection, disburse the total amount of the service educational awards for which eligible individuals who have submitted applications to that institution under paragraph (a) of this subsection are scheduled to receive. Such disbursement shall be made by check or other means that is payable to the institution and requires the endorsement or other certification by the eligible individual.

(d) The total amount required to be disbursed to an institution of higher learning under paragraph (c) of this subsection for any period of enrollment shall be disbursed by the department in two (2) or more installments, none of which exceeds one-half (1/2) of such total amount. The interval between the first and second such installment shall not be less than one-half (1/2) of such period of enrollment, except as necessary to permit the second installment to be paid at the beginning of the second semester, quarter, or similar division of such period of enrollment.

(e) The department shall, by regulation, provide for the refund to the department (and the crediting to the service educational award of an eligible individual) of amounts disbursed to institutions for the benefit of eligible individuals who withdraw or otherwise fail to complete the period of enrollment for which the assistance was provided. Such regulations shall be consistent with the fair and equitable refund policies required of institutions. Amounts refunded to the trust pursuant to this paragraph may be used by the department to fund additional approved service positions under this act.

(f) The portion of an eligible individual's total available service educational award that may be disbursed under this subsection for any period of enrollment shall not exceed the difference between:

(i) The eligible individual's cost of attendance for such period of enrollment, determined in accordance with Section 472 of the Higher Education Act of 1965 (20 USCS Section 108711); and

(ii) The sum of:

1. The student's estimated financial assistance for such period under Part A of Title IV of such act (20 USCS Section 1070 et seq.); and

2. The student's veterans' education benefits, determined in accordance with Section 480(c) of such act (20 USCS Section 1087vv(c)).

(4) The department shall by regulation provide for the payment of service educational awards to permit eligible individuals to participate in school-to-work programs.

(5) The department shall provide by regulation for the payment on behalf of an eligible individual of interest that accrues during a period for which such individual has obtained forbearance in the repayment of a qualified student loan, if the eligible individual successfully completes the individual's required term of service.

(6) With the approval of the executive director of the department, an approved service program funded under Section 1 of this act, may offer participants the option of waiving their right to receive a service educational award in order to receive an alternative postservice benefit funded by the program entirely with nonstate funds.

SECTION 21. The department may make grants to counties or local applicants and may transfer funds for the creation or expansion of full-time, part-time year-round, or summer, youth corps programs. To the extent practicable, the department shall apply the provisions of this act in making grants under this section.

SECTION 22. Not to exceed ten percent (10%) of the amount of assistance made available to a program agency under this act shall be used for the purchase of major capital equipment.

SECTION 23. (1) To be eligible to receive a grant under this act, a county shall prepare and submit to the department an application at such time, in such manner, and containing such information as the department may reasonably require.

(2) An application submitted under subsection (1) of this section shall describe:

(a) Any youth corps program proposed to be conducted directly by such applicant with assistance provided under this act; and

(b) Any grant program proposed to be conducted by such county with assistance provided under this act for the benefit of entities within such county.

SECTION 24. (1) Programs that receive assistance under this act may carry out activities that:

(a) In the case of conservation corps programs, focus on:

(i) Conservation, rehabilitation, and the improvement of wildlife habitat, rangelands, parks, and recreational areas;

(ii) Urban and rural revitalization, historical and cultural site preservation, and reforestation of both urban and rural areas;

(iii) Fish culture, wildlife habitat maintenance and improvement, and other fishery assistance;

(iv) Road and trail maintenance and improvement;

(v) Erosion, flood, drought, and storm damage assistance and controls;

(vi) Stream, lake, waterfront harbor, and port improvement;

(vii) Wetlands protection and pollution control;

(viii) Insect, disease, rodent, and fire prevention and control;

(ix) The improvement of abandoned railroad beds and rights-of-way;

(x) Energy conservation projects, renewable resource enhancement, and recovery of biomass;

(xi) Reclamation and improvement of strip-mined land;

(xii) Forestry, nursery, and cultural operations; and

(xiii) Making public facilities accessible to individuals with disabilities.

(b) In the case of youth service corps programs, include participant service in:

(i) Local and regional governmental agencies;

(ii) Nursing homes, hospices, senior centers, hospitals, local libraries, parks, recreational facilities, child and adult day care centers, programs serving individuals with disabilities and schools;

(iii) Law enforcement agencies, and penal and probation systems;

(iv) Private nonprofit organizations that primarily focus on social service such as community action agencies;

(v) Activities that focus on the rehabilitation or improvement of public facilities, neighborhood improvements, literacy training that benefits educationally disadvantaged individuals, weatherization of and basic repairs to low-income housing including housing occupied by older adults, energy conservation (including solar energy techniques), removal of architectural barriers to access by individuals with disabilities to public facilities, activities that focus on drug and alcohol abuse education, prevention and treatment, and conservation, maintenance, or restoration of natural resources on publicly held lands; and

(vi) Any other nonpartisan civic activities and services that the department determines to be of a substantial social benefit in meeting unmet human, educational or environmental needs (particularly needs related to poverty) or in the community where volunteer service is to be performed.

(c) Encompass the focuses and services described in both paragraphs (a) and (b) of this subsection.

(2) No participant shall perform any specific activity for more than a six-month period. No participant shall remain enrolled in programs assisted under this act for more than twenty-four (24) months.

SECTION 25. An activity administered under the authority of the Department of Human Services that is operated for the same purpose as a program eligible to be carried out under this act is encouraged to use services available under this act.

SECTION 26. (1) Each program agency shall assess the educational level of participants at the time of their entrance into the program, using any available records or simplified assessment means or methodology and shall, where appropriate, refer such participants for testing for specific learning disabilities.

(2) Each program agency shall, through the programs and activities administered under this act, enhance the educational skills of participants.

(3) (a) Each program agency shall use not less than ten percent (10%) of the assistance made available to such agency under this act in each fiscal year to provide preservice and in-service training and educational materials and services for participants in such a program. Program participants shall be provided with information concerning the benefits to the community that result from the activities undertaken by such participants.

(b) A program agency may enter into arrangements with academic institutions or education providers, including:

(i) Local education agencies;

(ii) Community colleges;

(iii) Four-year colleges;

(iv) Area vocational-technical schools; and

(v) Community based organizations;

To evaluate the basic skills of participants and to make academic study available to participants to enable such participants to upgrade literacy skills, to obtain high school diplomas or the equivalent of such diplomas, to obtain college degrees, or to enhance employable skills.

(c) Career and educational guidance and counseling shall be provided to a participant during a period of in-service training as described in this subsection. Each graduating participant shall be provided with counseling with respect to additional study, job skills training or employment and shall be provided job placement assistance where appropriate.

(d) A program agency shall give priority to participants who have not obtained a high school diploma or the equivalent of such diploma, in providing services under this subsection.

SECTION 27. (1) In the consideration of applications submitted under this act, the department shall give preference to programs that:

(a) Will provide long-term benefits to the public;

(b) Will instill a work ethic and a sense of public service in the participants;

(c) Will be labor intensive, and involve youth operating in crews;

(d) Can be planned and initiated promptly; and

(e) Will enhance skills development and educational level and opportunities for the participants.

(2) In the consideration of applications under this act, the department shall ensure the equitable treatment of both urban and rural areas.

SECTION 28. (1) Enrollment in programs that receive assistance under this act shall be limited to individuals who, at the time of enrollment are:

(a) Not less than sixteen (16) years nor more than twenty-five (25) years of age, except that summer programs may include individuals not less than fourteen (14) years nor more than twenty-one (21) years of age at the time of the enrollment of such individuals; and

(b) Citizens or nationals of the United States or lawful permanent resident aliens of the United States.

(2) Programs that receive assistance under this act shall ensure that educationally and economically disadvantaged youth, including youth in foster care who are becoming too old for foster care, youth with disabilities, youth with limited English proficiency, youth with limited basic skills or learning disabilities and homeless youth are offered opportunities to enroll.

(3) Notwithstanding subsection (1)(a) of this section, program agencies may enroll a limited number of special corps members over age twenty-five (25) so that the corps may draw on their special skills to fulfill the purposes of this act. Programs are encouraged to consider senior citizens as special corps members.

(4) Program agencies shall use not more than two percent (2%) of amounts received under this act to conduct joint projects with senior citizens organizations to enable senior citizens to serve as mentors for youth participants.

(5) Nothing in subsection (1) of this section shall be construed to prohibit any program agency from limiting enrollment to any age subgroup within the range specified in subsection (1)(a) of this section.

SECTION 29. Program agencies may use volunteer services for purposes of assisting projects carried out under this act and may expend funds made available for those purposes to the agency, including funds made available under this act to provide for services or costs incidental to the utilization of such volunteers, including transportation, supplies, lodging, recruiting, training, and supervision. The use of volunteer services under this section shall be subject to the condition that such use does not result in the displacement of any participant.

SECTION 30. (1) (a) Subject to paragraph (c) of this subsection, each participant in a full-time youth corps program that receives assistance under this act 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 USCS Section 4955).

(b) The amount of the annual living allowance provided under paragraph (a) of this subsection that may be paid using assistance provided under this act, and any other federal funds shall not exceed eighty-five percent (85%) of the total average annual subsistence allowance provided to VISTA volunteers under Section 105 of the Domestic Volunteer Service Act of 1973 (42 USCS Section 4955).

(c) 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 act shall not exceed two hundred percent (200%) of the average annual subsistence allowance provided to VISTA volunteers under Section 105 of the Domestic Volunteer Service Act of 1973 (42 USCS Section 4955).

(d) The department may waive or reduce the requirement of paragraph (a) of this subsection with respect to such service program if such program demonstrates that:

(i) Such requirement is inconsistent with the objectives of the program; and

(ii) 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.

(2) (a) Nothing in this section shall be construed to require a program in existence on the date of enactment of this act to decrease any stipends, salaries, or living allowances provided to participants under such program so long as the amount of any such stipends, salaries, or living allowances that is in excess of the levels provided for in this section are paid from nonfederal sources.

(b) For purposes of the Fair Labor Standards Act of 1938 (29 USCS Section 201 et seq.), residential youth corps programs under this act will be considered an organized camp.

(3) In addition to the living allowance provided under subsection (1) of this section, program agencies are encouraged to provide health insurance to each participant in a full-time youth corps program who does not otherwise have access to health insurance.

(4) (a) The program agency may deduct, from amounts provided under subsection (1) of this section to a participant, a reasonable portion of the costs of the rates for any room and board that is provided for such participant at a residential facility. Such deducted funds shall be deposited into rollover accounts that shall be used solely to defray the costs of room and board for participants.

(b) The program agency shall establish the amount of the deductions and rates under paragraph (a) of this subsection after evaluating the costs of providing such room and board to the participant.

(c) A program agency may provide facilities, quarters, and board and shall provide limited and emergency medical care, transportation from administrative facilities to work sites, accommodations for individuals with disabilities, and other appropriate services, supplies, and equipment to each participant.

(d) The department may provide services, facilities, supplies, and equipment, including any surplus food and equipment available from other programs, to any program agency carrying out projects under this act.

(e) The department and program agencies shall establish standards and enforcement procedures concerning the health and safety of participants for all projects, consistent with state and local health and safety standards.

SECTION 31. This act shall take effect and be in force from and after July 1, 1999.