Peace Corps Reform Act

Peace Corps Reform Act - Amends the Peace Corps Act to restate the purpose of such Act to be to assist interested countries in meeting basic living needs, strengthening development programs, furthering a spirit of voluntary action, and promoting a better understanding by and of the American people.

Creates the Peace Corps as a government corporation, with authority for operations vested in a presidentially appointed Board of Directors. Establishes in the Peace Corps an Advisory Council to evaluate Corps policies and programs.

Directs the Peace Corps to encourage host governments to establish advisory councils to advise Peace Corps Country Directors and host country government officials on Corps operating procedures.

Requires the Board (formerly the President) to appoint the Director of the Peace Corps. Directs the Corps to coordinate programs with other volunteer and development organizations.

Repeals specified provisions of the Peace Corps Act which empower the President and Secretary of State to carry out such Act.

Increases from $125 to $150 the readjustment allowance for Peace Corps volunteers. Prohibits the assignment of volunteers to the clerical staffs of Peace Corps representatives abroad. Prohibits volunteers from serving more than five years in any ten-year period without personal approval from the Director.

Requires the Corps to encourage volunteers to continue their contributions to good will and development by assisting in the readjustment of, and utilization of skills developed by, former volunteers.

Includes spouses living with volunteers as eligible to receive living and other allowances, health care, language training, and other benefits.

Eliminates the position of "volunteer leaders" from the Peace Corps and makes conforming amendments to the Internal Revenue Code.

Amends the Domestic Volunteers Service Act of 1973 to eliminate one of the two Associate Directors of ACTION.