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(ii) in subparagraph (B), by striking "to allow return to the program with which the individual was serving in order".

SEC. 1315. ADJUSTMENTS TO LIVING ALLOWANCE.

Section 140 (42 U.S.C. 12594) is amended-
(1) in subsection (a)—

(A) in paragraph (1), by striking "paragraph (3)" and inserting "paragraphs (2) and (3)";

(B) by striking paragraph (2);

(C) by redesignating paragraph (3) as paragraph (2); (D) by inserting after paragraph (2) (as so redesignated) the following:

"(3) FEDERAL WORK-STUDY STUDENTS.-The living allowance that may be provided under paragraph (1) to an individual whose term of service includes hours for which the individual receives a Federal work-study award under part C of title IV of the Higher Education Act of 1965 (42 U.S.C. 2751 et seq.) shall be reduced by the amount of the individual's Federal work study award."; and

(E) in paragraph (4), by striking "a reduced term of service under section 139(b)(3)" and inserting "a term of service that is less than 12 months";

(2) in subsection (b), by striking "shall include an amount sufficient to cover 85 percent of such taxes" and all that follows through the period at the end and inserting "may be used to pay the taxes described in this subsection.";

(3) in subsection (c)—

(A) in the matter preceding paragraph (1)—

(i) by striking "section 122(a)(8)" and inserting "section 122(c)(1)(D)”; and

(ii) by striking "subsection (a)(3)" and inserting "subsection (a)(2)";

(B) in paragraph (1), by adding "and" at the end; (C) by striking paragraph (2); and

(D) by redesignating paragraph (3) as paragraph (2); (4) in subsection (d)

(A) in paragraph (1)—

(i) by striking "shall provide" and inserting “shall provide or make available"; and

(ii) by striking the second sentence; and

(B) in paragraph (2), by striking "provide from its own funds" and inserting "provide from its own funds or make available"; and

(5) by striking subsections (g) and (h).

Subtitle D-Amendments to Subtitle D (National Service Trust and Provision of National Service Educational Awards)

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

(a) SUBTITLE HEADING.-The subtitle heading for subtitle D of title I is amended to read as follows:

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

(b) ESTABLISHMENT OF TRUST.-Section 145 (42 U.S.C. 12601) is amended

(1) in subsection (a)—

(A) in paragraph (1)—

(i) in the matter preceding subparagraph (A), by striking "pursuant to section 501(a)(2)"; and

(ii) in subparagraph (A), by inserting after "national service educational awards" the following: ", summer of service educational awards, and silver scholar educational awards";

(B) in paragraph (2)—

(i) by striking "pursuant to section 196(a)(2)" and inserting "pursuant to section 196(a)(2), if the terms of such donations direct that the donated amounts be deposited in the National Service Trust"; and

(ii) by striking "and" at the end;

(C) by redesignating paragraph (3) as paragraph (4); and

(D) by inserting after paragraph (2) the following: "(3) any amounts recovered by the Corporation pursuant to section 146A; and";

(2) in subsection (c), by striking "for payments of national service educational awards in accordance with section 148." and inserting "for

"(1) payments of national service educational awards, summer of service educational awards, and silver scholar educational awards in accordance with section 148; and

"(2) payments of interest in accordance with section 148(e)."; and

(3) in subsection (d)—

(A) in the subsection heading, by striking "CONGRESS" and inserting "THE AUTHORIZING COMMITTEES";

(B) in the matter preceding paragraph (1), by striking "the Congress" and inserting "the authorizing committees" (C) in paragraphs (2), (3), and (4), by inserting summer of service educational awards, or silver scholar awards" after "national service educational awards" each place the term appears; and

(D) in paragraph (4)—

(i) by inserting ", additional approved summer of service positions, and additional approved silver scholar positions" after "additional approved national service positions"; and

(ii) by striking "under subtitle C".

SEC. 1402. INDIVIDUALS ELIGIBLE TO RECEIVE AN EDUCATIONAL AWARD FROM THE TRUST.

Section 146 (42 U.S.C. 12602) is amended

(1) by striking the section heading and inserting the following:

"SEC. 146. INDIVIDUALS ELIGIBLE TO RECEIVE AN EDUCATIONAL 42 USC 12602. AWARD FROM THE TRUST."; and

(2) in subsection (a)—

(A) in the matter preceding paragraph (1)

(i) by inserting ", summer of service educational award, or silver scholar educational award" after "national service educational award"; and

(ii) by striking "if the individual" and inserting "if the organization responsible for the individual's supervision in a national service program certifies that the individual";

(B) by striking paragraphs (1), (2), and (3) and inserting the following:

"(1) met the applicable eligibility requirements for the approved national service position, approved silver scholar position, or approved summer of service position, as appropriate, in which the individual served;

“(2)(A) for a full-time or part-time national service educational award, successfully completed the required term of service described in subsection (b)(1) in the approved national service position;

"(B) for a partial educational award in accordance with section 139(c)

"(i) satisfactorily performed prior to being granted a release for compelling personal circumstances under such section; and

"(ii) completed at least 15 percent of the required term of service described in subsection (b) for the approved national service position;

"(C) for a summer of service educational award, successfully completed the required term of service described in subsection (b)(2) in an approved summer of service position, as certified through a process determined by the Corporation through regulations consistent with section 138(f); or

"(D) for a silver scholar educational award, successfully completed the required term of service described in subsection (b)(3) in an approved silver scholar position, as certified through a process determined by the Corporation through regulations consistent with section 138(f); and".

(C) by redesignating paragraph (4) as paragraph (3); (3) in subsection (b)

(A) by striking "The term” and inserting the following: "(1) APPROVED NATIONAL SERVICE POSITION.-The term and

(B) by adding at the end the following:

"(2) APPROVED SUMMER OF SERVICE POSITION.-The term of service for an approved summer of service position shall not be less than 100 hours of service during the summer months.

"(3) APPROVED SILVER SCHOLAR POSITION.-The term of service for an approved silver scholar position shall be not less than 350 hours during a 1-year period.";

(4) by striking subsection (c) and inserting the following: "(c) LIMITATION ON RECEIPT OF NATIONAL SERVICE EDUCATIONAL AWARDS.-An individual may not receive, through national service educational awards and silver scholar educational awards, more than an amount equal to the aggregate value of

42 USC 12602a.

2 such awards for full-time service. The value of summer of service educational awards that an individual receives shall have no effect on the aggregate value of the national service educational awards the individual may receive.";

(5) in subsection (d)

(A) in paragraph (1)—

(i) by striking "SEVEN-YEAR REQUIREMENT" and inserting "IN GENERAL";

(ii) by striking "An" and inserting "Subject to paragraph (2), an";

(iii) by inserting "or a silver scholar educational award" after "national service educational award";

(iv) by inserting "or an approved silver scholar position, as applicable," after "approved national service position"; and

(v) by adding at the end the following: "Subject to paragraph (2), an individual eligible to receive a summer of service educational award under this section may not use such award after the end of the 10year period beginning on the date the individual completes the term of service in an approved summer of service position that is the basis of the award."; (B) in paragraph (2)—

(i) in the matter preceding subparagraph (A) and in subparagraph (A), by inserting ", summer of service educational award, or silver scholar educational award" after "national service educational award";

(ii) in subparagraph (A), by inserting or 10year period, as appropriate" after "7-year period"; and (iii) in subparagraph (B), by inserting", approved summer of service position, or approved silver scholar position" after "approved national service position"; and (C) by adding at the end the following:

"(3) TERM FOR TRANSFERRED EDUCATIONAL AWARDS.-For purposes of applying paragraphs (1) and (2)(A) to an individual who is eligible to receive an educational award as a designated individual (as defined in section 148(f)(8)), references to a sevenyear period shall be considered to be references to a 10-year period that begins on the date the individual who transferred the educational award to the designated individual completed the term of service in the approved national service position or approved silver scholar position that is the basis of the award."; and

(6) in subsection (e)(1)—

(A) by inserting after "qualifying under this section" the following: "or under section 119(c)(8)"; and

(B) by inserting after "to receive a national service educational award" the following: “, a summer of service educational award, or a silver scholar educational award".

SEC. 1403. CERTIFICATIONS.

The Act is amended by adding after section 146 (42 U.S.C. 12602) the following:

"SEC. 146A. CERTIFICATIONS OF SUCCESSFUL COMPLETION OF TERMS OF SERVICE.

"(a) CERTIFICATIONS.-In making any authorized disbursement from the National Service Trust in regard to an eligible individual

(including disbursement for a designated individual, as defined
in section 148(f)(8), due to the service of an eligible individual)
under section 146 who served in an approved national service
position, an approved summer of service position, or an approved
silver scholar position, the Corporation shall rely on a certification.
The certification shall be made by the entity that selected the
individual for and supervised the individual in the approved
national service position in which such individual successfully com-
pleted a required term of service, in a national service program.
"(b) EFFECT OF ERRONEOUS CERTIFICATIONS.-If the Corpora- Payment charge.
tion determines that the certification under subsection (a) is erro-
neous or incorrect, the Corporation shall assess against the national
service program a charge for the amount of any associated payment
or potential payment from the National Service Trust. In assessing
the amount of the charge, the Corporation shall consider the full
facts and circumstances surrounding the erroneous or incorrect
certification.".

SEC. 1404. DETERMINATION OF THE AMOUNT OF THE EDUCATIONAL
AWARD.

Section 147 (42 U.S.C. 12603) is amended

(1) by striking the section heading and inserting the following:

"SEC. 147. DETERMINATION OF THE AMOUNT OF THE EDUCATIONAL AWARD."; and

(2) by amending subsection (a) to read as follows:

"(a) AMOUNT FOR FULL-TIME NATIONAL SERVICE.-Except as provided in subsection (c), an individual described in section 146(a) who successfully completes a required term of full-time national service in an approved national service position shall receive a national service educational award having a value equal to the maximum amount of a Federal Pell Grant under section 401 of the Higher Education Act of 1965 (20 U.S.C. 1070a) that a student eligible for such Grant may receive in the aggregate (without regard to whether the funds are provided through discretionary or mandatory appropriations), for the award year for which the national service position is approved by the Corporation.";

(3) in subsection (b), by striking ", for each of not more than 2 of such terms of service,"; and

(4) by adding at the end the following:

"(d) AMOUNT FOR SUMMER OF SERVICE.-An individual described in section 146(a) who successfully completes a required summer of service term shall receive a summer of service educational award having a value, for each of not more than 2 of such terms of service, equal to $500 (or, at the discretion of the Chief Executive Officer, equal to $750 in the case of a participant who is economically disadvantaged).

"(e) AMOUNT FOR SILVER SCHOLARS.-An individual described in section 146(a) who successfully completes a required silver scholar term shall receive a silver scholar educational award having a value of $1,000.".

SEC. 1405. DISBURSEMENT OF EDUCATIONAL AWARDS.

Section 148 (42 U.S.C. 12604) is amended

(1) by striking the section heading and inserting the following:

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