College Access Act

Summary: College Access Act - Establishes an endowment grant program to support college access programs nationwide. 
Directs the Secretary of Education to award endowment grants to eligible organizations in amounts based on specified mandatory award amount formulae.  Authorizes the Secretary to make grants to such organizations in amounts based on specified permissive award amount formulae.  Includes among organizational eligibility requirements:  (1) provision of a school-based advisor to public secondary school students; and (2) offer of assistance and incentives to encourage such students to attend college.  Sets forth authorized uses of such grant funds. 
Establishes in the Treasury the College Access Endowment Fund. Makes Fund interest and earnings available to the Secretary of Education to award endowment grants. 
Authorizes appropriations.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``College Access Act''.

SEC. 2. PROGRAM AUTHORIZED.

    (a) Program Established.--From amounts made available to the 
Secretary pursuant to section 6(a), the Secretary shall award grants to 
eligible organizations to enable such organizations to conduct the 
authorized activities described in section 4.
    (b) Award Basis.--
            (1) Mandatory.--The Secretary shall award a grant under 
        this Act in a fiscal year to an eligible organization in an 
        amount determined on the basis of--
                    (A) the size of the budget of the eligible 
                organization in such year compared to the size of the 
                budgets of all eligible organizations receiving 
                assistance under this Act in such year; or
                    (B) the size of the endowment of the eligible 
                organization in such year compared to the size of the 
                endowments of all eligible organizations receiving 
                assistance under this Act in such year.
            (2) Permissive.--The Secretary may award a grant under this 
        Act in a fiscal year to an eligible organization in an amount 
        determined on the basis of--
                    (A) the number of students served individually by 
                the eligible organization in such year compared to the 
                number of students served individually by all eligible 
                organizations receiving assistance under this Act in 
                such year; or
                    (B) the eligible organization's audited financial 
                statement for the preceding fiscal year.
    (c) Application.--
            (1) In general.--Each eligible organization desiring a 
        grant under this Act in any fiscal year shall submit an 
        application to the Secretary at such time, in such manner, and 
        containing or accompanied by such information as the Secretary 
        may reasonably require.
            (2) Contents.--Each application shall include--
                    (A) information documenting the provision of 
                authorized activities described in section 4 by the 
                eligible organization to students in the year preceding 
                the year for which assistance under this Act is 
                requested; and
                    (B) the eligible organization's audited financial 
                statement for the preceding fiscal year.

SEC. 3. DEFINITIONS.

    For the purposes of this Act--
            (1) the term ``college'' means an institution of higher 
        education (as such term is defined in section 1201(a) of the 
        Higher Education Act of 1965) that awards an associate's or 
        bachelor's degree;
            (2) the term ``eligible organization'' means an 
        organization that--
                    (A) provides a school-based advisor to students 
                attending public secondary schools and offers 
                assistance and incentives to encourage such students to 
                attend college;
                    (B) has been in existence for 2 years prior to the 
                date of enactment of this Act;
                    (C) awards last dollar, gap financing; and
                    (D) is an organization described in section 
                501(c)(3) of the Internal Revenue Code of 1986;
            (3) the term ``Fund'' means the College Access Endowment 
        Fund established in section 5(a);
            (4) the term ``last dollar, gap financing'' means the funds 
        required to fill the gap between the cost of college and the 
        resources available to a student, which resources shall include 
        a family contribution and any financial aid awarded to a 
        student;
            (5) the term ``Secretary'', unless otherwise specified, 
        means the Secretary of Education; and
            (6) the term ``secondary school'' has the same meaning 
        given to such term by section 1471(21) of the Elementary and 
        Secondary Education Act of 1965.

SEC. 4. AUTHORIZED ACTIVITIES.

    Grant funds under this Act may be used by an eligible organization 
to provide students attending public secondary schools with--
            (1) funds to enable such students to attend college;
            (2) information about college and financial aid for 
        college;
            (3) information about academic qualifications and 
        preparation for college;
            (4) the costs of preparing for admission to college, 
        including the costs of college entrance exams, application 
        fees, financial aid forms, and scholastic aptitude test (SAT) 
        and American College Test (ACT) exam preparation courses;
            (5) full and partial financial grants, especially last 
        dollar, gap financing;
            (6) assistance in selecting and applying for appropriate 
        colleges and applying for available financial aid;
            (7) the costs of entering college, including dormitory 
        reservation and college acceptance fees; or
            (8) continuing college mentors, including paying students 
        to act as tutors and peer counselors at college.

SEC. 5. COLLEGE ACCESS ENDOWMENT FUND.

    (a) Establishment.--There is established in the Treasury of the 
United States an endowment fund to be known as the College Access 
Endowment Fund. The Fund shall consist of amounts appropriated to the 
Fund pursuant to section 8 of this Act.
    (b) Investment.--It shall be the duty of the Secretary of the 
Treasury to invest in full amounts appropriated to the Fund. Such 
investments may be made only in interest-bearing obligations of the 
United States or in obligations guaranteed as to both principal and 
interest by the United States. For such purpose, such obligations may 
be acquired (1) on original issue at the issue price, or (2) by 
purchase of outstanding obligations at the market price. The purposes 
for which obligations of the United States may be issued under the 
Second Liberty Bond Act, as amended, are hereby extended to authorize 
the issuance at par of special obligations exclusively to the Fund. 
Such special obligation shall bear interest at a rate equal to the 
average rate of interest, computed as to the end of the calendar month 
next preceding the date of such issue, borne by all marketable 
interest-bearing obligations of the United States then forming a part 
of the public debt, except that where such average rate is not a 
multiple of one-eighth of 1 percent, the rate of interest of such 
special obligations shall be the multiple of one-eighth of 1 percent 
next lower than such average rate. Such special obligations shall be 
issued only if the Secretary of the Treasury determines that the 
purchase of other interest-bearing obligations of the United States, or 
of obligations guaranteed as to both principal and interest by the 
United States on original issue or at the market price, is not in the 
public interest.
    (c) Sale and Redemption.--Any obligation acquired by the Fund 
(except special obligations issued exclusively to the Fund) may be sold 
by the Secretary of the Treasury at the market price, and such special 
obligations may be redeemed at par plus accrued interest.
    (d) Interest and Proceeds.--The interest on, and the proceeds from 
the sale or redemption of, any obligations held in the Fund shall be 
credited to and form a part of the Fund.

SEC. 6. EXPENDITURES FROM THE FUND.

    (a) In General.--The interest and earnings of the Fund shall be 
available to the Secretary to enable the Secretary to award grants to 
eligible organizations in accordance with this Act.
    (b) Audit.--The activities of each eligible organization receiving 
a grant under this Act may be audited by the General Accounting Office 
under such rules and regulations as may be prescribed by the 
Comptroller General of the United States. The representatives of the 
General Accounting Office shall have access to all books, accounts, 
records, reports, and files and all other papers, things, or property 
belonging to or in use by the eligible organization, pertaining to such 
activities and necessary to facilitate the audit.

SEC. 7. REPORT; TERMINATION OF GRANT PAYMENTS.

    (a) Report.--Each eligible organization receiving a grant under 
this Act shall annually prepare and submit to the Secretary a report 
demonstrating such organization's compliance with the provisions of 
this Act.
    (b) Termination.--The Secretary shall terminate grant payments 
under this Act for any eligible organization which the Secretary 
determines is not in compliance with the provisions of this Act.

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Fund $25,000,000 for 
fiscal year 1993 to carry out this Act.