\`\`PART B\--FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION

\`\`SEC. 741. &lt;&lt;NOTE: 20 USC 1138.&gt;&gt; FUND FOR THE
IMPROVEMENT OF

POSTSECONDARY EDUCATION.

\`\`(a) Authority.\--The Secretary is authorized to make grants to, or

enter into contracts with, institutions of higher education,

combinations of such institutions, and other public and private

nonprofit institutions and agencies, to enable such institutions,

combinations, and agencies to improve postsecondary education

opportunities by\--

\`\`(1) encouraging the reform, innovation, and improvement of

postsecondary education, and providing equal educational

opportunity for all;

\`\`(2) the creation of institutions, programs, and joint

efforts involving paths to career and professional training, and

combinations of academic and experiential learning;

\`\`(3) the establishment of institutions and programs based

on the technology of communications;

\`\`(4) the carrying out, in postsecondary educational

institutions, of changes in internal structure and operations

designed to clarify institutional priorities and purposes;

\`\`(5) the design and introduction of cost-effective methods

of instruction and operation;

\`\`(6) the introduction of institutional reforms designed to

expand individual opportunities for entering and reentering

institutions and pursuing programs of study tailored to

individual needs;

\`\`(7) the introduction of reforms in graduate education, in

the structure of academic professions, and in the recruitment

and retention of faculties; and

\`\`(8) the creation of new institutions and programs for

examining and awarding credentials to individuals, and the

introduction of reforms in current institutional practices

related thereto.

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\`\`(b) Planning Grants.\--The Secretary is authorized to make planning

grants to institutions of higher education for the development and

testing of innovative techniques in postsecondary education. Such grants

shall not exceed \$20,000.

\`\`SEC. 742. &lt;&lt;NOTE: 20 USC 1138a.&gt;&gt; BOARD OF THE FUND FOR
THE

IMPROVEMENT OF POSTSECONDARY EDUCATION.

\`\`(a) Establishment.\--There is established a National Board of the

Fund for the Improvement of Postsecondary Education (in this part

referred to as the \`Board\'). The Board shall consist of 15 members

appointed by the Secretary for overlapping 3-year terms. A majority of

the Board shall constitute a quorum. Any member of the Board who has

served for 6 consecutive years shall thereafter be ineligible for

appointment to the Board during a 2-year period following the expiration

of such sixth year.

\`\`(b) Membership.\--

\`\`(1) In general.\--The Secretary shall designate one of the

members of the Board as Chairperson of the Board. A majority of

the members of the Board shall be public interest

representatives, including students, and a minority shall be

educational representatives. All members selected shall be

individuals able to contribute an important perspective on

priorities for improvement in postsecondary education and

strategies of educational and institutional change.

\`\`(2) Appointment of director.\--The Secretary shall appoint

the Director of the Fund for the Improvement of Postsecondary

Education (hereafter in this part referred to as the

\`Director\').

\`\`(c) Duties.\--The Board shall\--

\`\`(1) advise the Secretary and the Director on priorities

for the improvement of postsecondary education and make such

recommendations as the Board may deem appropriate for the

improvement of postsecondary education and for the evaluation,

dissemination, and adaptation of demonstrated improvements in

postsecondary educational practice;

\`\`(2) advise the Secretary and the Director on the operation

of the Fund for the Improvement of Postsecondary Education,

including advice on planning documents, guidelines, and

procedures for grant competitions prepared by the Fund; and

\`\`(3) meet at the call of the Chairperson, except that the

Board shall meet whenever one-third or more of the members

request in writing that a meeting be held.

\`\`(d) Information and Assistance.\--The Director shall make available

to the Board such information and assistance as may be necessary to

enable the Board to carry out its functions.

\`\`SEC. 743. ADMINISTRATIVE PROVISIONS. &lt;&lt;NOTE: 20 USC
1138b.&gt;&gt;

\`\`(a) Technical Employees.\--The Secretary may appoint, for terms not

to exceed 3 years, without regard to the provisions of title 5, United

States Code, governing appointments in the competitive service, not more

than 7 technical employees to administer this part who may be paid

without regard to the provisions of chapter 51 and subchapter III of

chapter 53 of such title relating to classification and General Schedule

pay rates.

\`\`(b) Procedures.\--The Director shall establish procedures for

reviewing and evaluating grants and contracts made or entered into under

this part. Procedures for reviewing grant applications or contracts for

financial assistance under this section may not

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be subject to any review outside of officials responsible for the

administration of the Fund for the Improvement of Postsecondary

Education.

\`\`SEC. 744. SPECIAL PROJECTS. &lt;&lt;NOTE: 20 USC 1138c.&gt;&gt;

\`\`(a) Grant Authority.\--The Director is authorized to make grants to

institutions of higher education, or consortia thereof, and such other

public agencies and nonprofit organizations as the Director deems

necessary for innovative projects concerning one or more areas of

particular national need identified by the Director.

\`\`(b) Application.\--No grant shall be made under this part unless an

application is made at such time, in such manner, and contains or is

accompanied by such information as the Secretary may require.

\`\`(c) Areas of National Need.\--Areas of national need shall

initially include, but shall not be limited to, the following:

\`\`(1) Institutional restructuring to improve learning and

promote productivity, efficiency, quality improvement, and cost

and price control.

\`\`(2) Articulation between 2- and 4-year institutions of

higher education, including developing innovative methods for

ensuring the successful transfer of students from 2- to 4-year

institutions of higher education.

\`\`(3) Evaluation and dissemination of model programs.

\`\`(4) International cooperation and student exchange among

postsecondary educational institutions.

\`\`SEC. 745. AUTHORIZATION OF APPROPRIATIONS. &lt;&lt;NOTE: 20 USC
1138d.&gt;&gt;

\`\`There are authorized to be appropriated to carry out this part

\$30,000,000 for fiscal year 1999 and such sums as may be necessary for

each of the 4 succeeding fiscal years.

forms/FIPSE authorization.doc