FOREWORD

JUNE 1, 1966.

This section-by-section analysis of the bill H.R. 15371, to amend the Peace Corps Act, as amended, has been prepared for the use of the members of the Committee on Foreign Affairs and of the House of Representatives.

SECTION-BY-SECTION ANALYSIS OF PEACE CORPS BILL

The proposed act (the bill) to amend further the Peace Corps Act, as amended (the act), has two main purposes. First, it authorizes appropriations for fiscal year 1967 under the general authority in the act for appropriations to carry out programs in furtherance of the purposes of the act. The bill would accomplish this by striking out the amount and the reference to the fiscal year in that general authorization and substituting the new amount and the new fiscal year. Deletion of the amount and year in the general authorization, of course, has no effect on prior appropriations thereunder to carry out the provisions of the act. Second, the bill would make a number of other amendments to the act. Some are designed to promote more effective and efficient operation of the Peace Corps. Some are technical. The remainder relate to the proposed partnership exchange program. Section 1 amends section 3(b) of the act, which is the authority for appropriations to carry out the provisions of the act, in three respects: Subsection (a) amends section 3(b) to authorize the appropriation of $112,150,000 for fiscal year 1967. In 1965, the appropriation of $115 million for fiscal year 1966 was authorized by amendment of this general authority. A total of $114,100,000 was actually appropriated, under the general authorization, to carry out the provisions of the act in fiscal year 1966.

Subsection (b) amends section 3(b) to substitute two new limitations for the existing limitation on the use of funds to carry out research. The existing provision limits to $500,000 the fiscal year 1966 volunteer and project cost funds available for contract research projects. Under the new limitation, $950,000 of fiscal year 1967 funds available for volunteer and project costs could be obligated under contracts or agreements to carry out research. Moreover, fiscal year 1967 funded research contracts or agreements could be executed only on a determination by the Director of the Peace Corps that the research in question relates to the basic responsibilities of the Peace Corps. Of the $950,000, only approximately $450,000 would be available for new contract research. Continuing contract research previously authorized will require approximately $500,000 of fiscal year 1967 funds.

Subsection (c) amends section 3(b) by adding a new second sentence to authorize the reappropriation of unobligated balances of funds previously made available and to provide authority to consolidate them with other Peace Corps appropriations. The Peace Corps has not previously sought such a provision. It seeks it now only because in each of the last 3 years title II of the Foreign Assistance (or AID) and Related Agencies Appropriation Acts, 1964, 1965, and 1966, has continued available (i.e. reappropriated) unobligated balances of funds previously appropriated to carry out the provisions of the act. Nothing in the act specifically authorizes an appropriation which takes the form of a reappropriation of unobligated balances. Thus, such reappropriations might be subject to points of order. This

amendment would provide any necessary authorization and thus preclude points of order should Peace Corps appropriations continue to include reappropriation of unobligated balances. The amendment, which is similar to section 645 of the Foreign Assistance Act of 1961, as amended, would not authorize appropriations which entail the reobligation of prior year obligations.

Section 2 amends section 5 of the act, which relates to Peace Corps volunteers, to add a new subsection to authorize the retention of counsel and the payment of counsel fees and other expenses incident to the defense of volunteers before the tribunals of foreign countries and areas. The enactment of this authority for Peace Corps volunteers is warranted by the limited living allowances available to them and the requirement that they not supplement these allowances during Peace Corps service from employment or contributions from family or friends.

Revised Statutes sections 189 and 365 (1875), as amended, 5 U.S.C. 49 and 314, generally prohibit Government agencies from employing counsel at Government expense. Related statutes assign to the Department of Justice responsibility for attending to U.S. legal interests. Section 15(a) of the act authorizes the use of Peace Corps funds for expenditures outside the United States for the procurement of services and for other administrative and operating expenses (other than compensation of employees) necessary to accomplish the purposes of the act without regard to laws and regulations governing the obligation and expenditure of Government funds. But even if section 15(a) authorizes the waiver of these statutes in particular cases, if as a matter of policy legal services are to be procured for volunteers, specific congressional authorization is desirable.

By virtue of sections 7(a) (2) and 15(d)(11) of the act, the authority of section 1031 of the Foreign Service Act of 1946, as amended, is available to the Peace Corps. As a specific exception to the prohibitions of the Revised Statutes, it authorizes the procurement of legal services when required to protect the United States from possible liability, whether legally or administratively determined. Although section 1031 also authorizes the procurement of legal services to enable a Foreign Service officer or employee to carry on his work effectively, under the act volunteers are not deemed to be U.S. Government employees for this purpose. Even if volunteers were made employees for section 1031 purposes, legal services could not be procured for them in all cases.

The amendment is based on 10 U.S.C. 1037 which provides the armed services with authority to insure that persons subject to the Uniform Code of Military Justice have adequate legal representation in cases before foreign tribunals. Like section 1037, this amendment authorizes representation in both civil and criminal cases before foreign forums. Such representation would be available to defend volunteers' interests at all stages of civil and criminal cases including pretrial, trial, and appellate proceedings, and proceedings for probation, clemency, or pardon. In accord with the practice of the Department of the Air Force, continued payment of expenses could be authorized when a proceeding to which a volunteer has been made a party continues after the termination of his Peace Corps service. The Peace Corps would also generally follow the Department of the Air Force's practice and limit use of this authority to the following

instances: (1) Criminal proceedings in which a sentence of 6 months or more or capital punishment might be imposed; (2) proceedings in which the accused's substantial rights might be denied; and (3) proceedings which might have a significant impact on the relations of the United States with a foreign government or on other U.S. interests, legal or otherwise. Also, like section 1037, the amendment would not authorize the Government to pay fines or damages, and volunteers who forfeit bail would be liable for all costs to the United States. Unlike section 1037, the amendment would not authorize representation at Government expense of plaintiff interests of vol

unteers.

Section 3 amends section 13(a) of the act, which relates to the employment of experts and consultants, to increase the maximum compensation which may be paid individuals thereunder from $75 to $100 per day. Similar authority has already been provided in other acts with respect to programs of 23 other U.S. Government agencies, including all the major regulatory commissions, the Agency for International Development, the U.S. Arms Control and Disarmament Agency, and the Office of Economic Opportunity. Since most other agencies can pay experts or consultants up to 33% percent more than the Peace Corps can, the Peace Corps has experienced difficulty in competing for scarce professional talent.

The express approval of the Director of the Peace Corps would be required before any expert or consultant could be compensated at a rate above $75 per day.

Section 4 amends section 15 of the act which relates to the utilization of funds to correct two cross references.

Section 5 amends section 25(b) of the act, which defines the term "United States" in the geographic sense, to eliminate U.S. territories from that definition. In order to provide training in an environment that approximates that of Latin American countries, the Peace Corps since 1961 has trained volunteers at two isolated training camps in Puerto Rico. "United States" is now defined in section 25(b) of the act as "the several States and territories and the District of Columbia.' Because Puerto Rico is a U.S. Commonwealth, it is not within the United States in the geographic sense for purposes of the act. Hence, act authorities available abroad apply there, including particularly the section 5(d)(2) conclusive presumption that illnesses suffered or diseases contracted by volunteers abroad shall be deemed to have been caused by their employment.

In 1965, the Peace Corps established a comparable training center in an isolated area of St. Croix, U.S. Virgin Islands. It offers an environment which is comparable to that of many African countries to which volunteers are assigned. Also in 1965, the Peace Corps trained in Guam volunteers who were to be assigned to India. The U.S. Virgin Islands and Guam are both territories of the United States. The nature of Peace Corps activities there, like those in Puerto Rico, warrants making available thereto act authorities available abroad. Making U.S. territories outside the United States in the geographic sense for the purposes of the act would not authorize the assignment of volunteers to U.S. territories to meet their needs for trained manpower. The purposes of the act as set forth in section 2 make meeting the needs of foreign countries and areas for trained manpower a fundamental Peace Corps Act purpose. On the other hand, although ad