**Fund for the Improvement of Postsecondary Education (FIPSE) -
Authorizing Legislation**\
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**PART B\--FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION**

**SEC. 741. \[20 U.S.C. 1138\] 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.

\(b\) 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. \[20 U.S.C. 1138a\] 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. \[20 U.S.C. 1138b\] ADMINISTRATIVE PROVISIONS.**

\(a\) 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 be subject to any review
outside of officials responsible for the administration of the Fund for
the Improvement of Postsecondary Education.

**SEC. 744. \[20 U.S.C. 1138c\] SPECIAL PROJECTS.**

\(a\) 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 pro-mote
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. \[20 U.S.C. 1138d\] AUTHORIZATION OF APPROPRIATIONS.**

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.