coming increasingly difficult to access due to an increased demand for limited non-federal dollars. As a preliminary step toward addressing this difficult situation, the bill contains provisions directing that when renewing grants under Title II, the Director is required to take into account_the impact of inflation on the ability of Older American Volunteer Program grantees and to make adjustments in grant renewals to ensure the effective administration of the programs under Title II. The Director is to inform new and existing grantees that such adjustments in funding will be considered. Associated with this provision is a requirement that the Director keep a record and provide to Congress a report summarizing the number and types of increased assistance requested during grant renewals, the extent to which requests for assistance are accommodated, and a description of the method used for evaluating such requests. The Committee understands that ACTION has available some resources to relieve part of the administrative cost burden faced by projects. Project supplements for administrative costs could be provided through increased appropriations, if available; through the use of unexpanded balances from the preceding fiscal year; or through adjustments achieved by allowing projects greater flexibility in allocating funds for administration and direct benefits to vol unteers. Clarification of certain sections of title II In response to concerns presented during the reauthorization, the Committee finds it necessary to clarify its intent regarding certain sections of the unamended text of Title II. In sections 211 and 421, the Act states that "in determining who is 'poor' or 'low income' the Director shall take into consideration existing poverty guidelines as appropriate to local situations." The Committee intends that the term "local situations" be construed such that poverty levels for counties are utilized when appropriate. For example, statewide or regional programs located in states where the poverty level varies significantly may need county-based adjustments rather than state-based adjustments in order to successfully recruit low-income seniors throughout the state or region. The Committee has been informed that the ACTION Agency currently uses a Memorandum of Agreement procedure to enable nonfederal funded programs to affiliate with the Agency. One of the terms of the agreement provides that eligibility for the income disregard provisions of the Act are allowed, provided stipends do not exceed the level authorized by ACTION. The Committee finds this procedure appropriate and intends that the terms "grant" and 'contracts" in sections 211 and 213 be construed to encompass such Memorandums of Agreement. Approximately 25 nonfederally funded projects are affiliated with ACTION. Although these projects receive no federal funds, they are subject to administrative and reporting requirements applicable to federally funded projects. The Committee urges the Director to take steps to reduce the administrative and reporting requirements for nonfederally funded projects, while maintaining the accountability necessary to affiliation. For example, the Committee suggests that affiliation agreements be for longer than one year, consistent with the Agency's new multiple-year grant authority, and that reports be less frequent than quarterly. VI. VOTES IN COMMITTEE On August 2, 1989, the Chairman of the Committee on Labor and Human Resources, Senator Kennedy, convened an Executive Session of the Committee on Labor and Human Resources to consider S. 1426. An amendment in the nature of a substitute was unanimously approved by a voice vote. The Committee then ordered reported S. 1426 as amended by a unanimous voice vote. VII. COST ESTIMATE Hon. EDWARD M. KENNEDY, U.S. CONGRESS, CONGRESSIONAL BUDGET OFFICE, Chairman, Committee on Labor and Human Resources, U.S. Senate, Washington, DC. DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the attached cost estimate for S. 1426, the Domestic Volunteer Service Act, as ordered reported by the Senate Committee on Labor and Human Resources on August 2, 1989. If you wish further details on this estimate, we will be pleased to provide them. Sincerely, Attachment. ROBERT D. REISCHAUER. CONGRESSIONAL BUDGET OFFICE-COST ESTIMATE 1. Bill number: S. 1426. 2. Bill title: Domestic Volunteer Service Act of 1989. 3. Bill status: As ordered reported by the Senate Committee on Labor and Human Resources on August 2, 1989. 4. Bill purpose: To revise and extend the programs of the Domestic Volunteer Service Act of 1973, and for other purposes. 5. Estimated cost to the Federal Government: The costs of this bill fall within budget function 500. Basis of estimate: S. 1426 would revise and extend programs authorized in the Domestic Volunteer Service Act through 1993. In addition, the Demonstration Partnership Agreements Program, under the Community Services Block Grant, would be extended through fiscal year 1990. Thie estimate assumes that all authorizations are fully appropriated at the beginning of each fiscal year. Outlays are estimated using spendout rates computed by CBO on the basis of recent program data. Authorization levels were stated in the bill for all of the provisions except program administration. The bill would authorize 20 percent of the amounts appropriated under the Domestic Volunteer Service Act to be used for program administration in fiscal years 1990 through 1993. Assuming that the authorization levels stated in this bill for programs within the Domestic Volunteer Service Act were fully appropriated in each fiscal year, the amounts authorized for program administration would be $37.6 million in fiscal year 1990 and would increase to $55.6 million by fiscal year 1993. 6. Estimated cost to State and local government: None. 7. Estimate comparison: No. 8. Previous CBO estimate: The CBO prepared an estimate on June 22, 1989, for H.R. 1312, the Domestic Volunteer Service Act Amendments of 1989, as ordered reported by the House Committee on Education and Labor on June 8, 1989. 9. Estimate prepared by: Lori Housman. 10. Estimate approved by: C.G. Nuckols, for James L. Blum, Assistant Director for Budget Analysis. VIII. REGULATORY IMPACT STATEMENT The Committee has determined that there will be little increase in the regulatory burden or in paperwork imposed by this bill. IX. SECTION-BY-SECTION ANALYSIS Section 1. Short title and table of contents This section designates this Act as the Domestic Volunteer Service Act Amendments of 1989 and sets out the table of contents. TITLE I-NATIONAL VOLUNTEER ANTIPOVERTY PROGRAMS Section 101. Selection and assignment of volunteers This section requires the ACTION_Director to obligate not less than $600,000 of annual VISTA and Literacy Corps appropriations and not less than $200,000 of administrative funds for volunteer recruitment and public awareness activities. The Director is required to appoint a national Administrator of Recruitment and Placement and to designate at least one regional or State ACTION employee in each region to carry out such activities. The national placement office is to maintain a central information system to assist individuals in learning of VISTA volunteer openings and to assist projects in locating individuals for assignment. This section establishes a formal application process for the selection of VISTA volunteers and requires the Director of the ACTION Agency to provide volunteer assignments to qualified applicants which, to the maximum extent practicable, are consistent with their preferences and abilities. No volunteer may be assigned to any project, however, without its approval and consent. Authorized activities include radio and TV public service announcements, print advertising, direct mail, and presentations made by Agency personnel at institutions of higher education and other entities. The Administrator must consult with the Director of the Peace Corps to coordinate recruitment and public awareness efforts and is required to involve former VISTA volunteers. An annual recruitment plan is to be developed at the start of each fiscal year to identify specific volunteer recruitment goals and the activities which will be undertaken during the year. By the beginning of fiscal year 1991 not less than 20 percent of VISTA volunteers must be between 18 and 27 years of age. Section 102. Support services This section increases the monthly stipend for VISTA volunteers from $75 to $100 and requires that the average subsistence allowances paid to VISTA volunteers for housing, clothing, and living expenses be no less than 105 percent of poverty level income for a single individual. The Director is required to adjust the subsistence allowance where the cost of living exceeds the national average and to report to Congress on the method for setting subsistence allowances. Section 103. Applications for assistance by previous recipients This section prohibits the termination of assistance under the VISTA program to any project or organization solely on the basis of the duration of assistance the project has previously received. New applications for assistance from organizations which have previously received assistance are to be considered on an equal basis with those which have not received assistance, so long as the proposed project is clearly distinct from previously-funded activities. The provisions of Section 103 must be included in all applications for assistance and any regulations or guidelines issued for the VISTA program. TITLE II-STUDENT COMMUNITY SERVICE PROGRAMS Section 201. Change in general reference to programs This section changes the title of part B of Title I from "Service Learning Programs" to "Student Community Service Programs". TITLE III-SPECIAL VOLUNTEER PROGRAMS Section 301. Authority to establish and operate programs Section 301 limits the size of grants or contracts which may be made under part C of Title I to no more than $250,000. Section 302. Special initiatives Section 303 changes the title of Section 124 of Title I from "Special Initiatives" to "Drug Abuse Education and Prevention Services and Activities". The Director is required to give priority in awarding drug abuse prevention grants to communities, including those in rural areas, which have not previously received such assistance. The Director shall provide for the evaluation of all projects conducted with funds under this section. All drug abuse prevention grants exceeding $10,000 must include data on appropriate use of funds. TITLE V-ADMINISTRATION AND COORDINATION Section 401. Reports Section 401 requires an annual report from the Director to Congress on recruitment activities. Section 402. Evaluation Section 402 requires a separate evaluation of the VISTA literacy corps at least once every three years. Section 403. Definitions Section 403 defines the poverty line. |