To amend the Higher Education Act of 1965 to establish a scholarship program to recognize scholar athletes, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``J. Dennis Hastert Scholar Athlete 
Act of 2002''.

SEC. 2. ESTABLISHMENT OF PROGRAM.

    Part A of title IV of the Higher Education Act of 1965 is amended 
by inserting after subpart 8 (20 U.S.C. 1070f) the following new 
subpart:

   ``Subpart 9--J. Dennis Hastert Scholar Athlete Scholarship Program

``SEC. 420M. STATEMENT OF PURPOSE; DEFINITIONS.

    ``(a) Purpose.--It is the purpose of this subpart to establish a J. 
Dennis Hastert Scholar Athlete Scholarship Program--
            ``(1) to recognize and encourage scholar athletes; and
            ``(2) to promote the importance of participation in 
        intercollegiate athletics for the development of character, 
        initiative, and leadership as part of the educational 
        experience.
    ``(b) Definitions.--For purposes of this part--
            ``(1) the term `institution of higher education', 
        notwithstanding section 102, has the meaning provided in 
        section 101; and
            ``(2) the term `State' has the meaning provided in section 
        103(16).

``SEC. 420N. SCHOLARSHIPS AUTHORIZED.

    ``(a) Program Authority.--The Secretary is authorized, in 
accordance with the provisions of this subpart, to make grants to 
States to enable the States to award scholarships to individuals who 
have demonstrated outstanding academic and athletic achievement and who 
show promise of continuing that achievement.
    ``(b) Period of Award.--Scholarships under this section shall be 
awarded for a period of not less than 1 or more than 4 years during the 
first 4 years of study at any institution of higher education eligible 
to participate in any programs assisted under this title. The State 
educational agency administering the program in a State shall have 
discretion to determine the period of the award (within the limits 
specified in the preceding sentence).
    ``(c) Use at any Institution Permitted.--A student awarded a 
scholarship under this subpart may attend any institution of higher 
education.
    ``(d) Hastert Scholar Athletes.--Individuals awarded scholarships 
under this subpart shall be known as `Hastert Scholar Athletes'.

``SEC. 420O. ALLOCATION AMONG STATES.

    ``(a) Allocation Formula.--From the sums appropriated pursuant to 
section 420V for any fiscal year, the Secretary shall allocate to each 
State that has an agreement under section 420P an amount that bears the 
same ratio to the amount appropriated pursuant to section 420V as the 
population of such State bears to the population of all the States that 
have such an agreement, except that not less than $20,000 shall be made 
available to any State for any such fiscal year.
    ``(b) Use of Census Data.--For the purpose of this section, the 
population of a State and all the States shall be determined by the 
most recently available data, satisfactory to the Secretary, from the 
Bureau of the Census.
    ``(c) Consolidation by Insular Areas Prohibited.--Notwithstanding 
section 501 of Public Law 95-134 (48 U.S.C. 1469a), funds allocated 
under this part to an Insular Area described in that section shall be 
deemed to be direct payments to classes of individuals, and the Insular 
Area may not consolidate such funds with other funds received by the 
Insular Area from any department or agency of the United States 
Government.

``SEC. 420P. AGREEMENTS.

    ``The Secretary shall enter into an agreement with each State 
desiring to participate in the scholarship program authorized by this 
subpart. Each such agreement shall include provisions designed to 
assure that--
            ``(1) the State educational agency will administer the 
        scholarship program authorized by this subpart in the State;
            ``(2) the State educational agency will comply with the 
        eligibility and selection provisions of this subpart;
            ``(3) the State educational agency will develop guidelines 
        to ensure that the scholarship funds in the aggregate will be 
        divided evenly between men and women;
            ``(4) from such divided scholarship funds, the State 
        educational agency will pay to each individual in the State who 
        is awarded a scholarship under this subpart $10,000, subject to 
        section 420S(a); and
            ``(5) the State educational agency will conduct outreach 
        activities to publicize the availability of scholarships under 
        this subpart to all eligible students in the State, with 
        particular emphasis on activities designed to assure that 
        students from low-income and moderate-income families have 
        access to the information on the opportunity for full 
        participation in the scholarship program authorized by this 
        subpart.

``SEC. 420Q. ELIGIBILITY OF SCHOLARS.

    ``(a) High School Graduation or Equivalent and Admission to 
Institution Required.--Each student awarded a scholarship under this 
subpart shall be a graduate of a public or private secondary school or 
have the equivalent of a certificate of graduation as recognized by the 
State in which the student resides and must have been admitted for 
enrollment at an institution of higher education.
    ``(b) Selection Based on Promise of Academic and Athletic 
Achievement.--Each student awarded a scholarship under this subpart--
            ``(1) must demonstrate quality academic and athletic 
        achievement and show promise of continued academic and athletic 
        achievement;
            ``(2) must indicate an intent to participate in 
        intercollegiate athletics; and
            ``(3) must be a member in good standing of a school-
        recognized team to be eligible for any subsequent year 
        scholarship assistance, unless lack of participation is injury 
        related.

``SEC. 420R. SELECTION OF SCHOLARS.

    ``(a) Establishment of Criteria.--The State educational agency is 
authorized to establish the criteria for the selection of scholars 
under this subpart. Such criteria shall include an emphasis on sports 
that are part of the Olympic Games or are not significant revenue 
generators at particular institutions.
    ``(b) Adoption of Procedures.--The State educational agency shall 
adopt selection procedures designed to ensure an equitable geographic 
distribution of awards within the State.
    ``(c) Consultation Requirement.--In carrying out its 
responsibilities under subsections (a) and (b), the State educational 
agency shall consult with school administrators, school boards, 
teachers, counselors, and parents.
    ``(d) Timing of Selection.--The selection process shall be 
completed, and the awards made, prior to the end of each secondary 
school academic year.

``SEC. 420S. STIPENDS AND SCHOLARSHIP CONDITIONS.

    ``(a) Amount of Award.--Each student awarded a scholarship under 
this subpart shall receive a stipend of $10,000 for the academic year 
of study for which the scholarship is awarded, except that in no case 
shall the total amount of financial aid awarded to such student exceed 
such student's total cost-of-attendance.
    ``(b) Use of Award.--The State educational agency shall establish 
procedures to assure that a scholar athlete awarded a scholarship under 
this subpart pursues a course of study at an institution of higher 
education and continues to engage in athletic competition.

``SEC. 420U. CONSTRUCTION OF NEEDS PROVISIONS.

    ``Except as provided in section 471, nothing in this subpart, or 
any other Act, shall be construed to permit the receipt of a 
scholarship under this subpart to be counted for any needs test in 
connection with the awarding of any grant or the making of any loan 
under this Act or any other provision of Federal law relating to 
educational assistance.

``SEC. 420V. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated for this subpart--
            ``(1) $50,000,000 for fiscal year 2003;
            ``(2) $100,000,000 for fiscal year 2004;
            ``(3) $150,000,000 for fiscal year 2005; and
            ``(4) $200,000,000 for fiscal year 2006.''.

Summary: J. Dennis Hastert Scholar Athlete Act of 2002 - Amends part A of title IV of the Higher Education Act of 1965 to authorize the Secretary of Education to make grants to States to award scholarships for one to four years of study at institutions of higher education to individuals who have demonstrated outstanding academic and athletic achievement and show promise of continuing that achievement. Authorizes the Secretary to enter into agreements with States to assure that the scholarship program is administered to comply with specified requirements. Specifies student eligibility requirements based on promise of academic and athletic achievement. Authorizes State educational agencies to establish selection criteria with an emphasis on sports that are a part of the Olympic Games or are not significant revenue generators at particular institutions.