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[Senate Report 107-101]
[From the U.S. Government Publishing Office]

107th Congress                                                   Report
 1st Session                     SENATE                         107-101
_______________________________________________________________________

                                     

                                                       Calendar No. 244

 
      DISTRICT OF COLUMBIA COLLEGE ACCESS IMPROVEMENT ACT OF 2001

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                               H.R. 1499

TO AMEND THE DISTRICT OF COLUMBIA COLLEGE ACCESS ACT OF 1999 TO PERMIT 
  INDIVIDUALS WHO GRADUATED FROM A SECONDARY SCHOOL PRIOR TO 1998 AND 
INDIVIDUALS WHO ENROLL IN AN INSTITUTION OF HIGHER EDUCATION MORE THAN 
3 YEARS AFTER GRADUATING FROM A SECONDARY SCHOOL TO PARTICIPATE IN THE 
   TUITION ASSISTANCE PROGRAMS UNDER SUCH ACT, AND FOR OTHER PURPOSES

               November 29, 2001.--Ordered to be printed

                   COMMITTEE ON GOVERNMENTAL AFFAIRS

               JOSEPH I. LIEBERMAN, Connecticut, Chairman
CARL LEVIN, Michigan                 FRED THOMPSON, Tennessee
DANIEL K. AKAKA, Hawaii              TED STEVENS, Alaska
RICHARD J. DURBIN, Illinois          SUSAN M. COLLINS, Maine
ROBERT G. TORRICELLI, New Jersey     GEORGE V. VOINOVICH, Ohio
MAX CLELAND, Georgia                 PETE V. DOMENICI, New Mexico
THOMAS R. CARPER, Delaware           THAD COCHRAN, Mississippi
JEAN CARNAHAN, Missouri              ROBERT F. BENNETT, Utah
MARK DAYTON, Minnesota               JIM BUNNING, Kentucky
           Joyce A. Rechtschaffen, Staff Director and Counsel
                     Cynthia Goden Lesser, Counsel
       Marianne Clifford Upton, Staff Director and Chief Counsel,
 Oversight of Government Management, Restructuring and the District of 
                                Columbia
         Hannah S. Sistare, Minority Staff Director and Counsel
                   Johanna L. Hardy, Minority Counsel
         Mason C. Alinger, Minority Professional Staff Member,
 Oversight of Government Management, Restructuring and the District of 
                                Columbia
                     Darla D. Cassell, Chief Clerk

                            C O N T E N T S

                              ----------                              
                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background.......................................................2
III. Legislative History..............................................3
 IV. Section-by-Section Analysis......................................5
  V. Cost Estimate of the Congressional Budget Office.................7
 VI. Evaluation of Regulatory Impact.................................11
VII. Changes in Existing Law.........................................11

                                                       Calendar No. 244
107th Congress                                                   Report
                                 SENATE
 1st Session                                                    107-101

======================================================================

      DISTRICT OF COLUMBIA COLLEGE ACCESS IMPROVEMENT ACT OF 2001

                                _______
                                

                November 29, 2001.--Order to be printed

                                _______
                                

 Mr. Lieberman, from the Committee on Governmental Affairs, submitted 
                             the following

                              R E P O R T

                        [To accompany H.R. 1499]

    The Committee on Governmental Affairs, to which was 
referred the bill (H.R. 1499) to amend the District of Columbia 
College Access Act of 1999 to permit individuals who enroll in 
an institution of higher education more than three years after 
graduating from a secondary school and individuals who attend 
private Historically Black Colleges and Universities nationwide 
to participate in the tuition assistance programs under this 
Act, and for other purposes, reports favorably thereon with an 
amendment in the nature of a substitute and recommends that the 
bill as amended do pass.

                         I. Purpose and Summary

    The District of Columbia College Access Improvement Act 
(the ``College Access Improvement Act''), as reported by the 
Senate Committee on Governmental Affairs, amends Public Law 
106-98, the District of Columbia College Access Act of 1999 
(the ``College Access Act''), by: (1) eliminating the 
requirement that residents of the District of Columbia must 
continue on to college within three years of high school 
graduation in order to be eligible for tuition assistance 
through the College Access Act; (2) expanding the list of 
eligible institutions to include private Historically Black 
Colleges and Universities nationwide; (3) expanding the pool of 
eligible students to include all District of Columbia residents 
who have resided in the District of Columbia for at least five 
consecutive years prior to applying for the grant and who are 
enrolled at an eligible institution as of the date of enactment 
of this Act; (4) requiring that a dedicated account be 
established for the resident tuition support program; and (5) 
clarifying language in the College Access Act regarding the use 
of administrative funds for the District of Columbia Tuition 
Assistance Program.

                             II. Background

    The College Access Act established a tuition assistance 
program, administered by the Mayor of the District of Columbia, 
to give District of Columbia residents who are recent high 
school graduates the ability to pay in-state tuition rates upon 
admission to public colleges and universities nationwide. 
Public university grants may not exceed $10,000 in any award 
year, with a total cap of $50,000 per individual. The total 
individual cap of $50,000 allows students to receive the 
maximum $10,000 scholarship amount for up to five years. Annual 
funding of $12 million has been authorized to fund the public 
school portion of the Act.
    The College Access Act also provides tuition assistance 
grants for students attending private colleges in the District 
of Columbia or the adjoining counties in Maryland and Virginia, 
and private HBCUs in Maryland and Virginia. Tuition assistance 
grants for private colleges may not exceed $2,500 in any award 
year, with a total cap of $12,500 per individual. Annual 
funding of $5 million is authorized to fund the private school 
portion of the Act.
    In order to qualify for the grants under the College Access 
Act, District residents must have graduated high school in or 
after 1998, they must start college or university within three 
years of graduating high school, and they must prove domicility 
in the District of Columbia for one year prior to their 
freshman year.
    The District of Columbia Tuition Assistance Program (the 
``Program'') was created by Mayor Williams in April 2000 to 
administer the tuition assistance provided under the College 
Access Act. Despite strong efforts to promote the Program among 
District of Columbia students, the Program does not now have 
sufficient participation levels to spend all, or even nearly 
all, of the funds appropriated for its use. In September 2001, 
as mandated by section 6(c) of P.L. 106-98, a Department of 
Education Inspector General audit report indicated that for the 
period January 1, 2001 through June 30, 2001, the District's 
Finance Office still had about $23.7 million remaining in 
Program funds after disbursements. (Department of Education 
Inspector General Audit Report number ED-OIG/A03-B0003). The 
Committee did not expect the Program in its infancy to use its 
full annual appropriation of $17 million; nevertheless, the 
considerable surplus led Congress to consider expanding the 
categories of eligible institutions and eligible students.
    During consideration of the original Act, a consortium of 
17 private-sector companies and foundations (including Mobil 
Corporation, America Online, Fannie Mae, Sallie Mae, US 
Airways, Lockheed Martin Corporation, Bell Atlantic, the Morris 
and Gwendolyn Cafritz Foundation, the J. Willard and Alice S. 
Marriott Foundation, and the Washington Post) raised $20 
million to start the District of Columbia College Access 
Program (DC CAP), a non-profit organization dedicated to 
encouraging District public high school students to enter and 
graduate from college. The intent of the organization was to 
provide private-sector support that couldcomplement the 
Program.
    Since that time, DC CAP has partnered with the District of 
Columbia public school system to place college advisors in each 
public high school. These advisors work with students in 9th 
through 12th grades to motivate them to apply to and remain in 
college. In addition, DC CAP helps students through the 
application processes for college admission and financial 
assistance (including DC Tuition Assistance Grants), conducts 
educational planning workshops and seminars for parents, 
provides DC high school graduates help for up to 5 years after 
graduation to ensure completion of college, and provides 
information resources through College Information Resource 
Centers in each District of Columbia high school.
    With the help of the Program and DC CAP, more District of 
Columbia high school students are applying to and attending 
college. The Committee believes that this public-private 
partnership, as well as the quality of the District of Columbia 
Tuition Assistance Program office established by the Mayor, has 
been largely a success. H.R.1499 as amended by the Committee is 
intended to fine-tune the College Access Act and reasonably 
expand the program in a way that would be manageable for the 
city. For additional background on the creation of the College 
Access Act, refer to Senate Report 106-154.

                        III. Legislative History

    Representative Constance Morella (R-MD), Chairman of the 
Committee on Government Reform Subcommittee on the District of 
Columbia and Delegate Eleanor Holmes Norton (D-DC), the 
Subcommittee's Ranking Member, along with Representative Tom 
Davis (R-VA), introduced H.R. 1499, the District of Columbia 
College Access Act Technical Corrections Act of 2001, on April 
4, 2001. H.R. 1499 was approved by unanimous consent by the 
House Subcommittee on June 26, 2001, ordered to be reported by 
the full Committee on July 25, 2001, and passed in the House of 
Representatives on July 30, 2001, by voice vote. H.R. 1499 was 
received in the Senate on July 31, 2001 and was referred to the 
Committee on Governmental Affairs Subcommittee on Oversight of 
Government Management, Restructuring and the District of 
Columbia on September 10, 2001.
    As passed by the House, H.R. 1499 would eliminate the 
January 1, 1998 high school graduation cut-off date for Program 
eligibility, and it would eliminate the requirement that 
District of Columbia residents must start college within three 
years of high school graduation in order to be eligible for the 
tuition assistance. H.R. 1499 also included a section to 
prohibit the participation of foreign nationals in the Program.
    At a Senate Committee on Governmental Affairs business 
meeting on November 14, 2001, Senator Voinovich (R-OH) offered, 
and the Committee adopted, an amendment in the nature of a 
substitute to H.R. 1499. On that same date, the Committee 
ordered the bill favorably reported, as amended, by voice vote, 
with no Members present dissenting. Present were Senators 
Akaka, Durbin, Cleland, Carper, Carnahan, Thompson, Voinovich, 
Cochran, Bunning and Lieberman.

                   EXPLANATION OF THE BILL AS AMENDED

    H.R. 1499, as amended, would eliminate one of the 
eligibility requirements for District residents: it would void 
the requirement that they must continue on to college within 
three years of high school graduation in order to be eligible 
for the Program. In order to allow expansion of the Program to 
take place over time, the January 1, 1998 high school 
graduation cut-off date for eligibility in the College Access 
Act would be retained, except that all District residents who 
are enrolled at an eligible institution as of the date of 
enactment of H.R. 1499--including those who graduated high 
school prior to 1998--would be eligible for tuition assistance 
under the Program, so long as they meet the other applicable 
eligibility requirements. This language should not be read to 
have retroactive effect; students would not be reimbursed for 
prior semesters. This provision would simply enable those who 
are currently enrolled at an eligible institution to apply for 
tuition assistance for semesters beginning on or after the date 
of enactment of this Act, no matter when they graduated from 
high school.
    Eliminating the requirement that students must continue on 
to college within three years of high school graduation called 
for a change in the residency criteria for eligibility. For 
otherwise eligible students going on to college within three 
years of graduating high school, the College Access Improvement 
Act would retain the current requirement under H.R. 1499, as 
amended, that applicants prove domicility in the District for 
one year prior to their freshman year. Students who waited more 
than three years to attend college would be required to prove 
that they were domiciled in the District for five years prior 
to the date of application for tuition assistance from the 
Program.
    The College Access Improvement Act would also expand the 
list of eligible institutions to include private Historically 
Black Colleges and Universities nationwide. During the 1999 
debates on the College Access Act, the Senate amended the Act 
to include private HBCUs, but only those in the States of 
Maryland and Virginia. A significant number of District 
residents who were originally accepted into the Program were 
later found ineligible because they chose to attend private 
HBCUs outside of Maryland and Virginia. The average tuition at 
private HBCUs is considerably less than the average tuition at 
other private colleges and universities, and therefore the 
$2500 stipend would make more of an impact at HBCUs than many 
other private universities. This fact, coupled with the 
significant number of District of Columbia students who chose 
private HBCUs, would make expansion of the Program to include 
private HBCUs reasonable and appropriate.
    The College Access Improvement Act would make certain 
corrections to the College Access Act. The amended bill retains 
the language from the House-passed version to prevent foreign 
nationals from participating in the Program. The amended bill 
would also permit the Program to carry over and use excess 
administrative funds from previous years, even though the 
Committee encourages the Program to minimize the use of 
administrative funds so that any excess would be devoted to 
grants.
    The College Access Improvement Act would also require the 
District government to establish a dedicated account for the 
Program. Any subsequent appropriations, any unobligated 
balances from prior fiscal years, and any interest earned from 
money allocated to the Program must be kept in that account. 
The Department of Education Inspector General reported that 
because the federal funds allocated to the Program were kept in 
the District's general account, the District was retaining 
interest earned from the federal appropriation and using it for 
unrelated cityservices. The creation of this dedicated account 
requires the District to retain all monies earned by and allocated to 
the Program to be used for the Program. There was concern that the 
District could be found in violation of the Anti-Deficiency Act if it 
allocated more tuition assistance than was appropriated by Congress for 
a certain fiscal year. In order to address this potential issue, H.R. 
1499, as amended, would permit any funds in this dedicated account to 
be used towards the tuition costs and related fees of eligible 
students.
    Finally, H.R. 1499, as amended, would include a sense of 
the Congress that the District of Columbia may appropriate such 
local funds as necessary for the Program. Although this would 
not require any action by the District of Columbia, the 
Committee included this in the legislation in order to 
encourage the local government to provide additional funding to 
the Program, should it become necessary, rather than requesting 
additional funding from Congress. While the Program is 
currently fully funded through federal appropriations, the 
Committee strongly urges the District to begin contributing 
local funds. This federal-local partnership would strengthen 
the Program significantly.

                    IV. Section-by-Section Analysis

Sec. 1. Short title

    This section would make the short title of H.R. 1499 the 
``District of Columbia College Access Improvement Act of 
2001.'' The House-passed version of the bill was entitled the 
``District of Columbia College Access Act Technical Corrections 
Act of 2001.'' However, both versions of H.R. 1499--as amended 
by the Committee and as passed by the House--make a number of 
significant policy changes to the College Access Act. The 
Committee voted to reflect this in the bill's short title.

Sec. 2. Public School Program

    This section would change the student eligibility 
requirements to reflect the new circumstances that could face 
Program applicants under the expansions provided for in this 
legislation. Section (A)(i) would retain the current Program 
requirement that applicants must be domiciled in the District 
for at least twelve months prior to the commencement of the 
freshman year at an institution of higher education, but only 
for those students who begin their undergraduate course of 
study within three years of graduation from a secondary school, 
or obtaining the recognized equivalent of a secondary school 
diploma. The three-year period would exclude any period of 
service on active duty in the armed forces, or service under 
the Peace Corps Act or subtitle D of Title I of the National 
And Community Service Act of 1999.
    In order to account for the elimination of the requirement 
that District of Columbia residents must continue on to college 
within three years of high school graduation, section (A)(ii) 
would establish different eligibility requirements for 
applicants who are either re-enrolling after more than a three-
year break in their college education or for students who are 
applying more than three years after high school graduation. 
These applicants would have to prove domicility in the District 
for at least five consecutive years at the date of application.
    Section (B)(i) would retain the current requirement that 
applicants must have graduated from high school on or after 
January 1, 1998 to qualify for the Program, with two 
exceptions, as set forth in Sections (B)(ii) and (B)(iii).
    Section (B)(ii) is intended to address the handful of 
students who, for a variety of reasons, may not have received a 
high school degree or an equivalent, but have been accepted for 
enrollment at an eligible institution. Such students include 
those who were home schooled or who went on to college before 
finishing their senior year of high school. Only applicants who 
are accepted as freshmen at eligible institutions on or after 
January 1, 2002, are eligible under this section.
    Section (B)(iii) would expand the Program to include all 
students enrolled at eligible institutions as of the date of 
enactment of H.R. 1499. Under this subsection, students who 
graduated prior to 1998 would be eligible for grants under the 
Program if they attend eligible institutions and can prove 
domicility in the District of Columbia for five years prior to 
application.
    Section (C) would prohibit the participation of foreign 
nationals in the Program.
    All of the changes to student eligibility made in this 
section would cover students applying to eligible private 
colleges and universities, as well as students applying to 
eligible public colleges and universities.

Sec. 3. Private School Program

    This section would expand the list of eligible private 
schools to include private HBCUs nationwide. The Program 
currently includes only those private HBCUs in the States of 
Virginia and Maryland.

Sec. 4. General requirements

    This section would clarify the amount of the federal funds 
appropriated to the Program that the Mayor is permitted to use 
for administrative purposes. It provides that the Mayor may not 
use for administrative purposes more than seven percent of the 
total sums appropriated. This section would make clear that the 
Program, if necessary, can carry over excess administrative 
funds from previous years. The term ``administrative funds'' is 
defined to mean ``any expenses that are not directly used to 
pay the cost of tuition and fees for eligible students to 
attend eligible institutions.''
    This section also includes a sense of the Congress that the 
District may appropriate such local funds as necessary for the 
Program.
    Finally, this section would require the District to 
establish a ``Dedicated Account for the Resident Tuition 
Support Program,'' which would consist of the federal funds 
appropriated to the Program, any unobligated balances from 
prior fiscal years, and any interest earned in this or any 
fiscal years. This requirement would end the District's current 
practice of keeping the Program funds in an unrestricted 
general acccount, which prevents any interest accrued by the 
Program funds from being tracked and retained for the benefit 
of the Program.
    The amended bill, as reported by the Committee, would also 
make the long title of the bill, ``To amend the District of 
Columbia College Access Act of 1999 to permit individuals who 
enroll in a institution of higher education more than three 
years after graduating secondary school and individuals who 
attend private historically black colleges and universities 
nationwide to participate in the tuition assistance program 
under such Act, and for other purposes.'' The Committee 
believes that this reflects the policy changes in H.R. 1499, as 
amended.

          V. Cost Estimate of the Congressional Budget Office

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, November 20, 2001.
Hon. Joseph I. Lieberman,
Chairman, Committee on Governmental Affairs,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1499, the District 
of Columbia College Access Improvement Act of 2001.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Paul 
Cullinan.
            Sincerely,
                                           Steven Lieberman
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 1499--District of Columbia College Access Improvement Act of 2001

    Summary: H.R. 1499 would modify the District of Columbia 
resident tuition support program that was established in 1999. 
The act would expand eligibility for tuition support to include 
District of Columbia residents who graduated from high school 
or received the equivalent of a high school degree before 1998 
if they currently are enrolled in a postsecondary institution 
and individuals without a high school diploma or its equivalent 
who first are accepted as a freshman at an eligible institution 
on or after January 1, 2002. H.R. 1499 also would allow other 
individuals to participate in the program after five 
consecutive years of residing in the District of Columbia. It 
also would expand the definition of eligible institution in the 
private school program to include all historically black 
colleges and universities (HBCUs). Finally, the act also would 
extend to the tuition support program the same citizenship and 
immigration status requirements that apply to other federal 
student assistance programs.
    Assuming appropriation of the necessary amounts, CBO 
estimates that H.R. 1499 would result in additional 
discretionary spending of $10 million in 2002 and $35 million 
over the 2002-2005 period. H.R. 1499 would not affect direct 
spending or receipts; therefore, pay-as-you-go procedures would 
not apply.
    H.R. 1499 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
federal budgetary impact of H.R. 1499 is presented in the 
following table. The costs of this legislation fall within 
budget function 500 (education, training, employment, and 
social services).

                ESTIMATED BUDGETARY EFFECTS OF H.R. 1499
------------------------------------------------------------------------
                                By fiscal year, in millions of dollars--
                               -----------------------------------------
                                 2001   2002   2003   2004   2005   2006
------------------------------------------------------------------------
                    SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law:
    Estimated Authorization        17     21     34     43     48      0
     Level\1\.................
    Estimated Outlays.........     17     21     34     43     48      0
                               =========================================
Proposed Changes:
    Eliminate post-1997
     graduation date
     requirement for current
     enrollees:
        Estimated                   0      8      7      2      3      0
         Authorization Level..
        Estimated Outlays.....      0      8      7      2      3      0
    Modify requirements for
     students who begin or
     return to postsecondary
     education more than three
     years after graduation:
        Estimated                   0      1      2      3      4      0
         Authorization Level..
        Estimated Outlays.....      0      1      2      3      4      0
    Prohibit foreign nationals
     from participation:
        Estimated                   0  (\2\)  (\2\)  (\2\)  (\2\)      0
         Authorization Level..
        Estimated Outlays.....      0  (\2\)  (\2\)  (\2\)  (\2\)      0
    Expand eligibility of
     private school program:
        Estimated                   0      1      1      1      1      0
         Authorization Level..
        Estimated Outlays.....      0      1      1      1      1      0
                               -----------------------------------------
        Total changes:
            Estimated               0     10     10      7      8      0
             Authorization
             Level............
            Estimated Outlays.      0     10     10      7      8      0
                               =========================================
Spending Under H.R. 1499:
    Estimated Authorization        17     31     44     50     56      0
     Level\1\.................
    Estimated Outlays.........     17     31     44     50     56      0
------------------------------------------------------------------------
\1\ The 2001 level is the amount appropriated for that year for the
  current tuition support program.
\2\ = Less than $500,000.

Components may not sum to totals because of rounding.

The tuition support program operates as a payment to the District of
  Columbia and is not currently subject to the Federal Cash Management
  Improvement Act of 1990. The District of Columbia has drawn down the
  entire appropriation each year, and has actual program spending to
  date of about one-third of the total funds appropriated.

    Basis of estimate: For this estimate, CBO assumes that H.R. 
1499 will be enacted in December 2001, and that the necessary 
amounts will be appropriated for each year.

Current law

    Under current law, the District of Columbia resident 
tuition support program, administered by the Mayor, provides 
financial assistance to District of Columbia (D.C.) residents 
who choose to attend public colleges outside of D.C., private 
postsecondary institutions in D.C. or in one of the surrounding 
jurisdictions in Maryland or Virginia, or historically black 
colleges or universities with their main campus in Maryland or 
Virginia.
    The private-school tuition grants are restricted to 
nonprofit institutions. The program received annual 
appropriations for fiscal years 2000 and 2001 of $17 million, 
and is authorized through 2005 at such sums as may be 
necessary. About $9 million in grants were awarded in academic 
year 2000-2001 with an average of 1,775 grantees in the fall 
and spring semesters, about one-quarter of whom were enrolled 
in private institutions.
    Eligibility for the tuition support is limited to 
individuals who graduate from high school or receive an 
equivalent of a secondary school diploma after January 1, 1998, 
reside in D.C. for at least 12 consecutive months prior to 
beginning the freshman year in an eligible institution, and 
begin their postsecondary school course-of-study within three 
years of their high school graduation. For those who wish to 
attend state-supported public institutions outside of the 
district, the program provides scholarships equal to the 
difference between the tuition paid by residents of the state 
in which the institution is located and the tuition charged to 
nonresident students, but not to exceed $10,000 annually with a 
lifetime limit of $50,000. In addition, it provides a $2,500 
maximum annual scholarship for those who choose to attend a 
private institution in D.C. or in one of the surrounding 
jurisdictions in Maryland or Virginia. Private HBCUs with their 
main campus in Maryland or Virginia are included in the latter 
classification. The assistance under each portion of the 
program is prorated if the student is enrolled in a less than 
full-time program. Administrative expenses of operating the 
program are limited to equal no more than 7 percent of the 
total tuition grants.
    CBO estimates by academic year 2005-2006, about 7,800 
students would receive tuition assistance--5,000 students 
attending public institutions and 2,800 students enrolling at 
private institutions--at a cost (including administrative 
expenses) of $48 million.

Proposed changes

    H.R. 1499 would expand eligibility for tuition support to 
include individuals who graduated from secondary schools before 
1998 if they are currently enrolled in school. It also would 
allow those who first begin their postsecondary education more 
than three years after graduation or who reenroll in school 
after a three-year break in education if they resided in the 
District of Columbia continuously during the previous five 
years. CBO estimates that the costs of the provisions are $8 
million and $1 million in 2002, respectively; the 2002-2005 
respective costs are $20 million and $10 million. The expansion 
of private school eligibility would cost an estimated $1 
million in 2002 and $5 million over the 2002-2005 period. The 
prohibition on the participation of foreign nationals is 
estimated to have a negligible budgetary impact.
    Eligibility Requirements for Students. To determine the 
additional number of D.C. residents eligible for the grants, 
CBO used the 1998-1999 Integrated Postsecondary Education Data 
Analysis System (IPEDS) and the 1996-1997 National 
Postsecondary Student Aid Survey. Those data show the 
respective distributions of first-year D.C. residents enrolled 
in postsecondary education by institution type and location and 
all enrollees by state of residence. To predict enrollment for 
2002 and beyond, CBO relied on the growth rates for the 
national enrollment projections from the National Center for 
Education Statistics.
    CBO assumed that the changes in the graduation date, 
residency, and reenrollment requirements would accelerate the 
rate at which the program would phase in. These changes would 
increase the costs of the program by $9 million in 2002 and $30 
million over the 2002-2005 period.
    Under current law, CBO assumes that 50 percent of the 
ultimate number of participants would receive benefits in 2002, 
rising to 95 percent by 2005. The elimination of the January 
1998 graduation date requirement would increase the rate at 
which the program would phase in. Under H.R. 1499, we expect 
that about 70 percent would participate in 2002 and 100 percent 
beginning in 2005. The provision would add about 1,500 
participants in 2002 and about 400 recipients in 2005, and 
would cost about $8 million in 2002 and $20 million over the 
2002-2005 period.
    H.R. 1499 also would modify the requirement that D.C. 
residents first enroll in a postsecondary degree program within 
three years of completing secondary school or its equivalent. 
It would provide an alternative standard for other students, 
including those who return to complete their education, that 
would allow individuals who live in D.C. for five consecutive 
years to receive tuition support. CBO assumes that these 
changes would affect about 10 percent of postsecondary 
students. Assuming their enrollment by institution type and 
location mirrors other first-year students from D.C., their 
tuition grants would be similar to those students currently 
eligible for assistance--in 2002, about $6,700 for public 
institutions and $2,120 for private schools. These newly 
eligible students are assumed to enter the program gradually 
over time, with an additional 180 participants in 2002 and 730 
in 2005. The resulting additional costs amount to $1 million in 
2002 and $10 million over the 2002-2005 period.
    To determine the average tuition grant for public 
institutions, CBO used 1998-1999 IPEDS data to determine the 
average in-state and out-of-state tuition rates by school type. 
CBO inflated these rates by the College Board's average 
estimate of tuition increases to arrive at the tuition costs 
for 2002 and beyond. Private school scholarships are based on 
the IPEDS data weighted for full-time and part-time status. The 
estimated average grant for public school enrollees grows from 
$6,700 to $7,720 from 2002 to 2005. The estimate for private 
tuition assistance remains at $2,120 throughout the period.
    Prohibit Participation by foreign Nationals. H.R. 1499 
would require participants in the D.C. resident tuition support 
program to meet the citizenship and immigrant status 
requirements of section 484(a)(5) of the Higher Education Act 
of 1965. Based on discussions with the D.C. staff running the 
program, CBO estimates that this prohibition would only affect 
a small number of D.C. residents and the savings from the 
provision would be less than $500,000 annually.
    Expanded Definition of Private Institutions. H.R. 1499 
would amend the definition of eligible institution for the 
private school portion of the D.C. tuition support program to 
include all private HBCUs across the country. Under current 
law, only those private HBCUs whose main campus is located in 
Maryland or Virginia are eligible institutions. CBO estimates 
the expansion under H.R. 1499 would cost $1 million in 2002 and 
$5 million over the 2002-2005 period.
    Based on data from the United Negro College Fund (UNCF) 
Statistical Report 2000, about 525 D.C. residents are currently 
enrolled at private HBCUs outside of Maryland and Virginia, 
which were members of the UNCF. CBO's tabulations of the IPED 
data indicated that perhaps an additional five D.C. students 
were enrolled at nonmember private HBCUs. The UNCF data also 
indicated that 92 percent of students at its member schools 
were enrolled full time. CBO assumes that the full-time/part-
time enrollment distribution of those students would be similar 
for D.C. students. Under the proration rules of the program, we 
estimate the average grant would be about $2,400. With 
projected enrollment growth, CBO estimates that costs 
(including administrative costs) would average about $1.4 
million during the 2003-2005 period, with slightly lower costs 
in 2002.
    Intergovernmental and private-sector impact: H.R. 1499 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Previous CBO estimate: On August 3, 2001, CBO provided an 
estimate of H.R. 1499 as passed by the House of 
Representatives. CBO estimated that version of the legislation 
would cost $9 million in 2002 and $30 million over the 2002-
2005 period, assuming the appropriation of the necessary 
amounts. That version of H.R. 1499 would have eliminated the 
January 1, 1998, graduation date and the three-year enrollment 
requirement completely. In contrast, the version of H.R. 1499 
approved by the Senate Committee on Governmental Affairs would 
eliminate the graduation date requirement for current enrollees 
of postsecondary institutions, but require other individuals to 
be domiciled in Washington, D.C., for five consecutive years 
before being eligible for tuition support.
    Both versions would impose certain new citizenship or 
immigration status requirements, which would have essentially 
the same effects on program costs. The House version of H.R. 
1499 does not include the expanded definition of private 
institution to allow all HBCUs to participate in the program.
    Estimate prepared by: Federal Costs: Paul Cullinan. Impact 
on State, Local, and Tribal Governments: Elyse Goldman. Impact 
on the Private Sector: Nabeel Alsalam.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                  VI. Evaluation of Regulatory Impact

    Paragraph 11(b)(1) of rule XXVI of the Standing Rules of 
the Senate requires that each report accompanying a bill 
evaluate the ``regulatory impact which would be incurred in 
carrying out this bill.'' Carrying out H.R. 1499 would have no 
regulatory impact.

       VII. Changes in Existing Law Made by the Bill, as Reported

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
this bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in brackets, new matter is 
printed in italic and existing law, in which no change is 
proposed, is shown in roman):

DISTRICT OF COLUMBIA COLLEGE ACCESS ACT OF 1999

           *       *       *       *       *       *       *

SEC. 3. PUBLIC SCHOOL PROGRAM.

    (a) * * *
    (b) * * *
    (c) Definitions.--
          (1) * * *
          (2) Eligible student.--The term ``eligible student'' 
        means an individual who--
                  [(A) was domiciled in the District of 
                Columbia for not less than the 12 consecutive 
                months preceding the commencement of the 
                freshman year at an institution of higher 
                education;
                  [(B) graduated from a secondary school or 
                received the recognized equivalent of a 
                secondary school diploma on or after January 1, 
                1998;
                  [(C) begins the individual's undergraduate 
                course of study within three calendar years 
                (excluding an period of service on active duty 
                in the Armed Forces, or service under the Peace 
                Corps Act (22 U.S.C. 2501 et seq.) or subtitle 
                D of title I of the National and Community 
                Service Act of 1990 (42 U.S.C. 12571 et seq.)) 
                of graduation from a secondary school, 
                obtaining the recognized equivalent of a 
                secondary school diploma;]
                  (A)(i) for individuals who begin an 
                undergraduate course of study within three 
                calendar years (excluding a period of service 
                on active duty in theArmed Forces, or service 
under the Peace Corps Act (22 U.S.C. 2501 et seq.) or subtitle D of 
title I of the National and Community Service Act of 1990 (42 U.S.C. 
12571 et seq.)) of graduation from a secondary school, or obtaining the 
recognized equivalent of a secondary school diploma, was domiciled in 
the District for not less than 12 consecutive months preceding the 
commencement of the freshman year at an institution of higher 
education; or
                  (ii) for all other individuals and for those 
                re-enrolling after more than a 3-year break in 
                their post-secondary education, has been 
                domiciled in the District of Columbia for at 
                least 5 consecutive years at the date of 
                application;
                  (B)(i) graduated from a secondary school or 
                received the recognized equivalent of a 
                secondary school diploma on or after January 1, 
                1998; or
                  (ii) for applicants that did not graduate 
                from a secondary school or receive a recognized 
                equivalent of a secondary school diploma, is 
                accepted for enrollment as a freshman at an 
                eligible institution on or after January 1, 
                2002; or
                  (iii) for applicants who graduated from a 
                secondary school or received the equivalent of 
                a secondary school diploma before January 1, 
                1998, is currently enrolled at an eligible 
                institution as of the date of enactment of the 
                District of Columbia College Access Improvement 
                Act of 2001;
                  (C) meets the citizenship and immigration 
                status requirements described in section 
                484(a)(5) of the Higher Education Act of 1965 
                (20 U.S.C. 1091(a)(5));
                  (D) * * *
                  (E) * * *
                  (F) * * *

           *       *       *       *       *       *       *

SEC. 5. PRIVATE SCHOOL PROGRAM.

    (a) * * *
    (b) * * *
    (c) Definitions.--In this section:
          (1) Eligible institution.--The term ``eligible 
        institution'' means an institution that--
                  (A) * * *
                  (B) is a private historically black college 
                or university (for purposes of this 
                subparagraph such term shall have the meaning 
                given the term ``part B institution'' in 
                section 322(2) of the Higher Education Act of 
                1965 (20 U.S.C. 1061(2)) [the main campus of 
                which is located in the State of Maryland of 
                Virginia].
          (2) * * *
          (3) * * *
          (4) * * *

           *       *       *       *       *       *       *

SEC. 6. GENERAL REQUIREMENTS.

    (a) * * *
    [(b) Administrative Expenses.--The Mayor of the District of 
Columbia may not use more than 7 percent of the funds made 
available for a program under section 3 or 5 for a fiscal year 
to pay the administrative expenses of a program under section 3 
or 5 for the fiscal year.]
    (b) Administrative Expenses.--
          (1) The Mayor of the District of Columbia may not use 
        more than 7 percent of the total amount of Federal 
        funds appropriated for the program, retroactive to the 
        date of enactment of this Act (the District of Columbia 
        College Access Act of 1999), for the administrative 
        expenses of the program.
          (2) Definition.--In this subsection, the term 
        ``administrative expenses'' means any expenses that are 
        not directly used to pay the cost of tuition and fees 
        for eligible students to attend eligible institutions.
    (c) * * *
    (d) * * *
    (e) It is the sense of Congress that the District of 
Columbia may appropriate such local funds as necessary for the 
Program.
    [(e)] (f) Funding Rule.--Notwithstanding sections 3 and 5, 
the Mayor may use funds made available--
          (1) under section 3 to award grants under section 5 
        if the amount of funds available under section 3 
        exceeds the amount of funds awarded under section 3 
        during a time period determined by the Mayor; and
          (2) under section 3 to award grants under section 5 
        if the amount of funds available under section 3 
        exceeds the amount of funds awarded under section 3 
        during a time period determined by the Mayor.
    [(f)] (g) Maximum Student Amount Adjustments.--The Mayor 
shall establish rules to adjust the maximum student amounts 
described in sections 3(a)(2)(B) and 5(a)(2)(B) for eligible 
students described in section 3(c)(2) or 5(c)(2) who transfer 
between the eligible institutions described in section 3(c)(1) 
or 5(c)(1).
    (h) Dedicated Account for the Resident Tuition Support 
Program.--The District of Columbia government shall establish a 
dedicated account for the Resident Tuition Support Program that 
shall consist of the Federal funds appropriated to the Program 
in this Act and any subsequent appropriations, any unobligated 
balances from prior fiscal years, and any interest earned in 
this or any fiscal years. The funds in this dedicated account 
may be used to help pay the cost of tuition and fees for 
eligible students to attend eligible institutions if the fiscal 
year appropriation for that year is insufficient to cover the 
cost of tuition for that year.

                                
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