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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2739 Introduced in House (IH)]

109th CONGRESS
  1st Session
                                H. R. 2739

To address rising college tuition by strengthening the compact between 
    the States, the Federal Government, and institutions of higher 
               education to make college more affordable.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 26, 2005

Mr. Tierney (for himself, Ms. McCollum of Minnesota, Mr. George Miller 
  of California, Mr. Kildee, Mr. Emanuel, Mr. Bishop of New York, Mr. 
 Payne, Ms. Woolsey, Mrs. McCarthy, Mr. Wu, Mr. Davis of Illinois, Mr. 
 Grijalva, Mr. Meehan, Mr. Becerra, Mr. Reyes, Mr. Gonzalez, Ms. Linda 
  T. Sanchez of California, Mr. McGovern, Ms. DeLauro, Mr. Owens, Mr. 
Hinojosa, Mr. Kucinich, Mr. Holt, Mr. Case, Mr. Van Hollen, Mr. Ortiz, 
   Mr. Gutierrez, Mr. Cardoza, Mrs. Jones of Ohio, Ms. Baldwin, Mr. 
  Wexler, Mr. Barrow, Mr. Jefferson, Mr. Ryan of Ohio, Ms. Solis, Ms. 
Velazquez, and Ms. Schakowsky) introduced the following bill; which was 
        referred to the Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL

 
To address rising college tuition by strengthening the compact between 
    the States, the Federal Government, and institutions of higher 
               education to make college more affordable.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``College 
Affordability and Accountability Act''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. References; effective date.
Sec. 3. Findings.
Sec. 4. State commitment to affordable college education.
        ``Sec. 132. State commitment to affordable college education.
Sec. 5. Cost containment strategies.
        ``Sec. 133. Cost containment strategies.
Sec. 6. Pell Plus.
        ``Sec. 401A. Incentives and rewards: Pell Plus.
Sec. 7. Cooperative education rewards for institutions that restrain 
                            tuition increases.
   ``TITLE VIII--COOPERATIVE EDUCATION REWARDS FOR INSTITUTIONS THAT 
                       RESTRAIN TUITION INCREASES

        ``Sec. 801. Statement of purpose; eligible institutions.
        ``Sec. 802. Authorization of appropriations; reservations.
        ``Sec. 803. Grants for cooperative education.
        ``Sec. 804. Demonstration and innovation projects; training and 
                            resource centers; and research.
Sec. 8. Study.
Sec. 9. Articulation agreement demonstration program.
        ``Sec. 486A. Articulation agreement demonstration program.
Sec. 10. Advisory Committee on Student Financial Assistance.

SEC. 2. REFERENCES; EFFECTIVE DATE.

    (a) Reference.--Whenever in this Act an amendment or repeal is 
expressed in terms of an amendment to, or repeal of, a section or other 
provision, the reference shall be considered to be made to a section or 
other provision of the Higher Education Act of 1965 (20 U.S.C. 1001 et 
seq.).
    (b) Effective Date.--Except as otherwise provided in this Act, the 
amendments made by this Act shall take effect on the date of enactment 
of this Act.

SEC. 3. FINDINGS.

    The Congress finds the following:
            (1) A quality college degree is the cornerstone of the 
        American dream, opening the door to job opportunity and 
        professional fulfillment, while increasing earning power by 
        more than a million dollars over a lifetime; therefore, States 
        and the Federal Government should do more to make it affordable 
        and accessible to all qualified students because--
                    (A) recent shifts in the economy have increased the 
                demand for college-educated workers and increased the 
                wage gap between college-educated workers and those 
                without a degree (workers with a bachelor's degree earn 
                75 percent more than workers with just a high school 
                diploma);
                    (B) jobs requiring some postsecondary education are 
                expected to account for about 42 percent of total job 
                growth from 2000 through 2010;
                    (C) low-income, college-qualified high school 
                graduates have an annual unmet need for student 
                financial assistance of $3,800 in college expenses, 
                expenses not covered by grants, loans, work, or family 
                savings;
                    (D) 46 percent of all students who work in addition 
                to being full-time students report 25 hours or more a 
                week of employment; and
                    (E) 50 percent of those employed more than 25 hours 
                a week report that working hurts their grades and 
                retention in college, and students who work more than 
                35 hours a week are considerably less likely to 
                complete a year of college than those who work less 
                than 15 hours a week.
            (2) State spending on higher education has decreased 
        dramatically over time, and as a result, students and their 
        families, particularly working class and middle class families, 
        have to pay a larger portion of college costs:
                    (A) In 2003-2004, tuition and fees increased at 
                colleges and universities across the country. Tuition 
                increased by 14.1 percent at four-year public 
                institutions, 13.8 percent at two-year public 
                institutions, and 6.0 percent at four-year private 
                institutions.
                    (B) While 70 percent of all students pay $8,000 or 
                less in tuition each year, low-income students continue 
                to fall far behind in accessing a college education.
                    (C) The ratio of a low-income family's earnings 
                used to pay for tuition increased to 71 percent, while 
                this ratio held steady for middle-income families at 17 
                percent and 6 percent for those with the highest 
                incomes.
            (3) Federal student aid is too focused on loans instead of 
        grant aid because--
                    (A) although approximately $55,000,000,000 is made 
                available annually in direct and indirect Federal aid 
                to postsecondary education students and their families, 
                in 2002, 60 percent of such Federal student aid was in 
                the form of loans while only 40 percent was in the form 
                of grants, a reversal of the distribution 20 years ago;
                    (B) the purchasing power of the maximum Pell Grant 
                has declined, as Pell Grants now cover only about 40 
                percent of average fixed costs at 4-year public 
                colleges, about half of what they covered 25 years ago; 
                and
                    (C) average student indebtedness is $17,000, and 
                reaches over $120,000 for professional school 
                graduates.

SEC. 4. STATE COMMITMENT TO AFFORDABLE COLLEGE EDUCATION.

    Title I is amended by inserting after section 131 (20 U.S.C. 1015) 
the following new section:

``SEC. 132. STATE COMMITMENT TO AFFORDABLE COLLEGE EDUCATION.

    ``(a) Maintenance of Effort Required.--No State shall reduce the 
total amount provided by the State for public institutions of higher 
education in such State for any academic year beginning on or after 
July 1, 2005, to an amount which is less than the average amount 
provided by such State to such institutions of higher education during 
the academic years between July 1, 1998, and July 1, 2003.
    ``(b) Withholding of All Education Administrative Funds for 
Violations.--Notwithstanding any other provision of law, the Secretary 
of Education shall withhold from any State that violates subsection (a) 
any amount that would otherwise be available to the State for 
administrative expenses and costs under any Federal education program 
until such State has corrected such violation.''.

SEC. 5. COST CONTAINMENT STRATEGIES.

    Title I is further amended by inserting after section 132 (as added 
by section 4) the following new section:

``SEC. 133. COST CONTAINMENT STRATEGIES.

    ``(a) Requirements.--Each institution of higher education shall in 
accordance with the requirements of this section engage in, and report 
upon, cost containment strategies. Such strategies may include (but are 
not limited to) the following activities:
            ``(1) bulk purchasing;
            ``(2) joint faculty appointments;
            ``(3) streamlining administration;
            ``(4) energy conservation and savings;
            ``(5) technological innovations; and
            ``(6) joint degree offerings.
    ``(b) Five-Year Plans.--Within 2 years after the enactment of the 
Act, each institution of higher education shall submit a 5-year plan on 
their cost containment strategies and any progress made to date to the 
Secretary of Education.
    ``(c) Research Into Cost Containment Methods.--
            ``(1) Research authorized.--From the funds appropriated 
        under paragraph (2), the Secretary is authorized--
                    ``(A) to conduct or provide for the conduct of 
                research to identify methods of cost containment 
                currently utilized by institutions of higher education 
                and systems of such institutions, and research into 
                other possible methods of cost containment;
                    ``(B) to disseminate--
                            ``(i) the information obtained by such 
                        research to such institutions and systems; and
                            ``(ii) other research that has identified 
                        successful methods of cost containment;
                    ``(C) to publicly recognize institutions of higher 
                education that are doing an effective job at cost 
                containment; and
                    ``(D) to work together with such institutions and 
                systems to implement these methods.
            ``(2) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this subsection 
        $1,000,000 for fiscal year 2006 and such sums as may be 
        necessary for each of the 4 succeeding fiscal years.
    ``(d) Consumer Information.--
            ``(1) Annual report required.--
                    ``(A) Contents of report.--The Secretary shall 
                annually prepare and publish a report on college 
                affordability in America. The college affordability 
                report shall provide, at a minimum, comprehensive 
                information on--
                            ``(i) the sticker price, total price of 
                        attendance, net tuition price, and net access 
                        price for every institution of higher education 
                        that participates in the Federal student aid 
                        programs under title IV of this Act;
                            ``(ii) the percentage change in the listed 
                        sticker price, total price of attendance, net 
                        tuition price, and net access price over a 3-, 
                        5-, and 10-year time period for each such 
                        institution; and
                            ``(iii) the level of Federal and State 
                        support for higher education per capita and per 
                        pupil.
                    ``(B) Advisory group.--To ensure that the annual 
                college affordability in America report provides 
                consumer-friendly information, the Secretary shall 
                convene an advisory group of students, parents, and 
                college officials to help determine the information 
                that shall be included in the report.
            ``(2) Data dissemination.--The Secretary shall make 
        publicly available the data collected pursuant to this section, 
        including an institution's net price tuition index as 
        calculated in accordance with subsection (e). Such data shall 
        be made available in a manner that permits the review and 
        comparison of data submissions of individual institutions of 
        higher education. Such data shall be presented in a form that 
        is easily accessible and understandable and allows parents and 
        students to make informed decisions based on the average prices 
        for full-time undergraduate students and the institution's rate 
        of increase in the sticker price, total price of attendance, 
        net tuition price, and net access price.
            ``(3) Website enhancement.--
                    ``(A) Website information.--In order to further 
                enhance public knowledge and understanding of college 
                affordability, the Secretary shall modify the college 
                opportunities on line (COOL) web site. The goal of such 
                changes shall be to make the website the single best 
                source of information about applying to and paying for 
                a postsecondary education. Such changes shall make the 
                website more user friendly and facilitate the 
                comparison of multiple institutions at the same time. 
                Such website shall provide detailed tuition and student 
                aid data for each institution (including data from the 
                annual college affordability in America report). As 
                part of improving the website, the Secretary shall 
                establish an advisory board of students and parents to 
                guide the redesign. The college price calculator 
                required by paragraph (4) shall be included on the COOL 
                website.
                    ``(B) Availability in other form.--In addition, the 
                Secretary shall publish all of the institutional 
                information found on the COOL website, minus the 
                college price calculator, and instruct all local 
                educational agencies to notify all their secondary 
                schools of the publication of the COOL web site, both 
                on-line and in-print, and of the steps necessary to 
                procure such information both on-line and in-print.
            ``(4) College price calculator.--
                    ``(A) Establishment.--The Secretary shall establish 
                a system for reporting to prospective students and 
                families on the net tuition price of institutions of 
                higher education. Using the most recent data available, 
                the Secretary shall make available the amount of aid 
                typically granted for students based on family income 
                and college attended. Such information shall be made 
                available in the form of a web site price calculator 
                that permits students to be able to enter an 
                institution of higher education and their family income 
                and be presented the sticker price, net tuition price, 
                and net access price for students in their income 
                bracket in order to determine the approximate cost of 
                attending such a school. The calculator shall include a 
                clear disclaimer that financial aid decisions are made 
                on a case-by-case basis and that the included 
                calculations are based on previous years' data and can 
                therefore serve only as general guidelines for the 
                financial aid that a student may expect to receive.
                    ``(B) Information distribution by institutions.--
                Each institution of higher education shall make 
                available its sticker price, total price of attendance, 
                net tuition price, and net access price and list 
                examples of what families in each of the quartile 
                income brackets might be expected to pay in the net 
                tuition price for the most recent academic year. This 
                information shall be provided in written form and 
                distributed to all students and applicants and made 
                widely available to the public.
    ``(e) Net Tuition Price Index.--
            ``(1) In general.--The Secretary shall, on the basis of the 
        data submitted under subsection (a), calculate a net tuition 
        price index for each institution of higher education submitting 
        such data and shall make the index available in accordance with 
        subsection (b) as soon as operationally possible on the 
        Department's college opportunity on line (COOL) website.
            ``(2) Calculation of index.--The net tuition price index 
        shall be equal to the percentage increase in the net tuition 
        price charged for a first-time, full-time, full-year 
        undergraduate student between a preceding academic year and the 
        most recent academic year for which satisfactory data are 
        available.
    ``(f) Definitions.--For the purposes of this section:
            ``(1) Net access price.--The term `net access price' means 
        the average total price of attendance for full-time 
        undergraduate students, minus the average grants, loans, and 
        work-study provided to such students, for any academic year.
            ``(2) Net tuition price.--The term `net tuition price' 
        means the average tuition and fees charged to full-time 
        undergraduate students, minus the average grants provided to 
        such students, for any academic year.
            ``(3) Sticker price.--The term `sticker price' means the 
        average tuition and fees charged to full-time undergraduate 
        students by an institution of higher education for any academic 
        year.
            ``(4) Total price of attendance.--The term `total price of 
        attendance' means the average tuition and fees charged to full-
        time undergraduate students, as well as the average of the 
        other expenses of such students related to obtaining a higher 
        education, including housing (room and board if the student 
        lives on campus, or rent or related housing costs if the 
        student does not live on campus), books, transportation, for 
        any academic year.
            ``(5) Tuition.--The term `tuition' means the average price 
        of or payment for actual instruction of full-time undergraduate 
        students at an institution of higher education, for any 
        academic year.''.

SEC. 6. PELL PLUS.

    Subpart 1 of part A of title IV is amended by inserting after 
section 401 (20 U.S.C. 1070a) the following new section:

``SEC. 401A. INCENTIVES AND REWARDS: PELL PLUS.

    ``(a) Rewards for Low Tuition.--For any institution of higher 
education that, for academic year 2003-2004 or any succeeding academic 
year, such institution's annual net tuition price increase (expressed 
as a percentage) for the most recent academic year for which 
satisfactory data is available is equal to or less than the percentage 
change in the higher education price index for such academic year, the 
Secretary shall, notwithstanding any other provision of the law, 
provide such institution an amount sufficient to provide a 25 percent 
increase under subpart 1 of part A of title IV to each Pell Grant 
recipient attending such institution for the next award year beginning 
after the date of such determination. Each such institution shall 
distribute any amounts received under this subsection among such Pell 
Grant recipients by increasing the amount of their Pell Grant awards by 
25 percent.
    ``(b) Rewards for Guaranteed Tuition.--
            ``(1) Bonus.--For each institution of higher education that 
        the Secretary of Education determines complies with the 
        requirements of paragraph (2) or paragraph (3) of this 
        subsection, the Secretary shall, notwithstanding any other 
        provision of the law, provide such institution an amount 
        sufficient to provide a 10 percent increase under subpart 1 of 
        part A of title IV to each Pell Grant recipient attending such 
        institution for the next award year beginning after the date of 
        such determination. Each such institution shall distribute any 
        amounts received under this subsection among such Pell Grant 
        recipients by increasing the amount of their Pell Grant awards 
        by 10 percent.
            ``(2) 4-year institutions.--An institution of higher 
        education that provides a program of instruction for which it 
        awards a bachelor's degree complies with the requirements of 
        this paragraph if such institution guarantees that for any 
        academic year beginning on or after July 1, 2005, and for each 
        of the 4 succeeding continuous academic years, the net tuition 
        price charged to an undergraduate student will not exceed--
                    ``(A) the amount that the student was charged for 
                an academic year at the time he or she first enrolled 
                in the institution of higher education, plus
                    ``(B) the product of the percentage increase in the 
                higher education price index for the prior academic 
                year, or the most recent prior academic year for which 
                data is available, multiplied by the amount determined 
                under subparagraph (A).
            ``(3) Less-than 4-year institutions.--An institution of 
        higher education that does not provide a program of instruction 
        for which it awards a bachelor's degree complies with the 
        requirements of this paragraph if such institution guarantees 
        that for any academic year (or the equivalent) beginning on or 
        after July 1, 2005, and for each of the 1.5 succeeding 
        continuous academic years, the net tuition price charged to an 
        undergraduate student will not exceed--
                    ``(A) the amount that the student was charged for 
                an academic year at the time he or she first enrolled 
                in the institution of higher education, plus
                    ``(B) the product of the percentage increase in the 
                higher education price index for the prior academic 
                year, or the most recent prior academic year for which 
                data is available, multiplied by the amount determined 
                under subparagraph (A).
    ``(c) Maintaining Affordable Tuition.--For any institution of 
higher education whose increase in the annual net tuition price 
(expressed as a percentage), for the most recent academic year for 
which satisfactory data is available, is greater than the percentage 
increase in the higher education price index for such academic year, 
the Secretary shall require such institution to submit to the Secretary 
the following information, within 6 months of such determination:
            ``(1) a detailed report on the exact causes for the net 
        tuition price increase that outlines revenues and expenditures; 
        and
            ``(2) cost containment strategies to lower net tuition 
        prices.
    ``(d) Definitions.--
            ``(1) Net tuition price.--The term `net tuition price' has 
        the same meaning as provided in section 133(f).
            ``(2) Higher education price index.--The term `higher 
        education price index' means a statistical measure of change 
        over time in the prices of a fixed market basket of goods and 
        services purchased by colleges and universities through current 
        fund educational and general expenditures (excluding 
        expenditures for research), as developed by the Bureau of Labor 
        Statistics pursuant to section 131(c)(4).''.

SEC. 7. COOPERATIVE EDUCATION REWARDS FOR INSTITUTIONS THAT RESTRAIN 
              TUITION INCREASES.

    The Higher Education Act of 1965 (20 U.S.C. 1101 et seq.) is 
amended by adding at the end the following title:

   ``TITLE VIII--COOPERATIVE EDUCATION REWARDS FOR INSTITUTIONS THAT 
                       RESTRAIN TUITION INCREASES

``SEC. 801. STATEMENT OF PURPOSE; ELIGIBLE INSTITUTIONS.

    ``(a) Purpose.--It is the purpose of this title to award grants to 
institutions of higher education or combinations of such institutions 
that have restrained their net tuition price increases in order to 
encourage such institutions to develop and make available to as many of 
their students as possible work experience that will aid such students 
in future careers and will enable such students to support themselves 
financially while in school.
    ``(b) Eligible Institutions.--An institution of higher education 
shall be eligible to apply for a grant under this title if such 
institution, and a combination of such institutions shall be eligible 
to apply for such a grant if each institution in such combination--
            ``(1) for the academic year for which the institution is 
        applying, keeps such institution's annual net tuition price 
        increase (expressed as a percentage) for the most recent 
        academic year for which satisfactory data is available equal to 
        or less than the percentage change in the higher education 
        price index for such year; and
            ``(2) for such academic year, provides the guarantee 
        required by paragraph (2) or (3) of section 401A(b).
    ``(c) Definitions.--
            ``(1) Cooperative education.--For the purpose of this title 
        the term `cooperative education' means the provision of 
        alternating or parallel periods of academic study and public or 
        private employment in order to give students work experiences 
        related to their academic or occupational objectives and an 
        opportunity to earn the funds necessary for continuing and 
        completing their education.
            ``(2) Higher education price index and net tuition price.--
        The terms `higher education price index' and `net tuition 
        price' have the same meaning as provided in section 133(f).

``SEC. 802. AUTHORIZATION OF APPROPRIATIONS; RESERVATIONS.

    ``(a) Appropriations Authorized.--There are authorized to be 
appropriated to carry out this title $30,000,000 for fiscal year 2006 
and such sums as may be necessary for each of the 5 succeeding fiscal 
years.
    ``(b) Reservations.--Of the amount appropriated in each fiscal 
year--
            ``(1) not less than 50 percent shall be available for 
        carrying out grants to institutions of higher education and 
        combinations of such institutions described in section 
        803(a)(1)(A) for cooperative education under section 803;
            ``(2) not less than 25 percent shall be available for 
        carrying out grants to institutions of higher education 
        described in section 803(a)(1)(B) for cooperative education 
        under section 803;
            ``(3) not to exceed 11 percent shall be available for 
        demonstration projects under paragraph (1) of section 804(a);
            ``(4) not to exceed 11 percent shall be available for 
        training and resource centers under paragraph (2) of section 
        804(a); and
            ``(5) not to exceed 3 percent shall be available for 
        research under paragraph (3) of section 804(a).
    ``(c) Availability of Appropriations.--Appropriations under this 
title shall not be available for the payment of compensation of 
students for employment by employers under arrangements pursuant to 
this title.

``SEC. 803. GRANTS FOR COOPERATIVE EDUCATION.

    ``(a) Grants Authorized.--
            ``(1) In general.--The Secretary is authorized--
                    ``(A) from the amount available under section 
                802(b)(1) in each fiscal year and in accordance with 
                the provisions of this title, to make grants to 
                institutions of higher education or combinations of 
                such institutions that have not received a grant under 
                this paragraph in the 10-year period preceding the date 
                for which a grant under this section is requested to 
                pay the Federal share of the cost of planning, 
                establishing, expanding, or carrying out programs of 
                cooperative education by such institutions or 
                combinations of institutions; and
                    ``(B) from the amount available under section 
                802(b)(2) in each fiscal year and in accordance with 
                the provisions of this title, to make grants to 
                institutions of higher education that are operating an 
                existing cooperative education program as determined by 
                the Secretary to pay the cost of planning, 
                establishing, expanding, or carrying out programs of 
                cooperative education by such institutions.
            ``(2) Program requirement.--Cooperative education programs 
        assisted under this section shall provide alternating or 
        parallel periods of academic study and of public or private 
        employment, giving students work experience related to their 
        academic or occupational objectives and the opportunity to earn 
        the funds necessary for continuing and completing their 
        education.
            ``(3) Amount of grants.--
                    ``(A) The amount of each grant awarded pursuant to 
                paragraph (1)(A) to any institution of higher education 
                or combination of such institutions in any fiscal year 
                shall not exceed $500,000.
                    ``(B)(i) Except as provided in clauses (ii) and 
                (iii), the Secretary shall award grants in each fiscal 
                year to each institution of higher education described 
                in paragraph (1)(B) that has an application approved 
                under subsection (b) in an amount which bears the same 
                ratio to the amount reserved pursuant to section 
                802(b)(2) for such fiscal year as the number of 
                unduplicated students placed in cooperative education 
                jobs during the preceding fiscal year (other than 
                cooperative education jobs under section 804 and as 
                determined by the Secretary) by such institution of 
                higher education bears to the total number of all such 
                students placed in such jobs during the preceding 
                fiscal year by all such institutions.
                    ``(ii) No institution of higher education shall 
                receive a grant pursuant to paragraph (1)(B) in any 
                fiscal year in an amount which exceeds 25 percent of 
                such institution's cooperative education program's 
                personnel and operating budget for the preceding fiscal 
                year.
                    ``(iii) The minimum annual grant amount which an 
                institution of higher education is eligible to receive 
                under paragraph (1)(B) is $1,000 and the maximum annual 
                grant amount is $75,000.
            ``(4) Limitation.--The Secretary shall not award grants 
        pursuant to paragraphs (1)(A) and (1)(B) to the same 
        institution of higher education or combination of such 
        institution in any one fiscal year.
            ``(5) Uses.--Grants under paragraph (1)(B) shall be used 
        exclusively--
                    ``(A) to expand the quality and participation of a 
                cooperative education program;
                    ``(B) for outreach in new curricular areas; and
                    ``(C) for outreach to potential participants 
                including underrepresented and nontraditional 
                populations.
    ``(b) Applications.--Each institution of higher education or 
combination of such institutions desiring to receive a grant under this 
section shall submit an application to the Secretary at such time and 
in such manner as the Secretary shall prescribe. Each such application 
shall--
            ``(1) set forth the program or activities for which a grant 
        is authorized under this section;
            ``(2) specify each portion of such program or activities 
        which will be performed by a nonprofit organization or 
        institution other than the applicant and the compensation to be 
        paid for such performance;
            ``(3) provide that the applicant will expend during such 
        fiscal year for the purpose of such program or activities not 
        less than the amount expended for such purpose during the 
        previous fiscal year;
            ``(4) describe the plans which the applicant will carry out 
        to assure, and contain a formal statement of the institution's 
        commitment which assures, that the applicant will continue the 
        cooperative education program beyond the 5-year period of 
        Federal assistance described in subsection (c)(1) at a level 
        which is not less than the total amount expended for such 
        program during the first year such program was assisted under 
        this section;
            ``(5) provide that, in the case of an institution of higher 
        education that provides a 2-year program which is acceptable 
        for full credit toward a bachelor's degree, the cooperative 
        education program will be available to students who are 
        certificate or associate degree candidates and who carry at 
        least one-half the normal full-time academic workload;
            ``(6) provide that the applicant will--
                    ``(A) make such reports as may be essential to 
                ensure that the applicant is complying with the 
                provisions of this section, including the reports for 
                the second and each succeeding fiscal year for which 
                the applicant receives a grant with respect to the 
                impact of the cooperative education program in the 
                previous fiscal year, including--
                            ``(i) the number of unduplicated student 
                        applicants in the cooperative education 
                        program;
                            ``(ii) the number of unduplicated students 
                        placed in cooperative education jobs;
                            ``(iii) the number of employers who have 
                        hired cooperative education students;
                            ``(iv) the income for students derived from 
                        working in cooperative education jobs; and
                            ``(v) the increase or decrease in the 
                        number of unduplicated students placed in 
                        cooperative education jobs in each fiscal year 
                        compared to the previous fiscal year; and
                    ``(B) keep such records as are essential to ensure 
                that the applicant is complying with the provisions of 
                this title, including the notation of cooperative 
                education employment on the student's transcript;
            ``(7) describe the extent to which programs in the academic 
        discipline for which the application is made have had a 
        favorable reception by public and private sector employers;
            ``(8) describe the extent to which the institution is 
        committed to extending cooperative education on an institution-
        wide basis for all students who can benefit;
            ``(9) describe the plans that the applicant will carry out 
        to evaluate the applicant's cooperative education program at 
        the end of the grant period;
            ``(10) provide for such fiscal control and fund accounting 
        procedures as may be necessary to assure proper disbursement 
        of, and accounting for, Federal funds paid to the applicant 
        under this title;
            ``(11) demonstrate a commitment to serving all underserved 
        populations; and
            ``(12) include such other information as is essential to 
        carry out the provisions of this title.
    ``(c) Duration of Grants; Federal Share.--
            ``(1) Duration of grants.--No individual institution of 
        higher education may receive, individually or as a participant 
        in a combination of such institutions--
                    ``(A) a grant pursuant to subsection (a)(1)(A) for 
                more than 5 fiscal years; or
                    ``(B) a grant pursuant to subsection (a)(1)(B) for 
                more than 5 fiscal years.
            ``(2) Federal share.--The Federal share of a grant under 
        section 803(a)(1)(A) may not exceed--
                    ``(A) 85 percent of the cost of carrying out the 
                program or activities described in the application in 
                the first year the applicant receives a grant under 
                this section;
                    ``(B) 70 percent of such cost in the second such 
                year;
                    ``(C) 55 percent of such cost in the third such 
                year;
                    ``(D) 40 percent of such cost in the fourth such 
                year; and
                    ``(E) 25 percent of such cost in the fifth such 
                year.
            ``(3) Special rule.--Any provision of law to the contrary 
        notwithstanding, the Secretary shall not waive the provisions 
        of this subsection.
    ``(d) Maintenance of Effort.--If the Secretary determines that a 
recipient of funds under this section has failed to maintain the fiscal 
effort described in subsection (b)(3), then the Secretary may elect not 
to make grant payments under this section to such recipient.
    ``(e) Factors for Special Consideration of Applications.--
            ``(1) In general.--In approving applications under this 
        section, the Secretary shall give special consideration to 
        applications from institutions of higher education or 
        combinations of such institutions for programs which show the 
        greatest promise of success because of--
                    ``(A) the extent to which programs in the academic 
                discipline with respect to which the application is 
                made have had a favorable reception by public and 
                private sector employers;
                    ``(B) the strength of the commitment of the 
                institution of higher education or combination of such 
                institutions to cooperative education as demonstrated 
                by the plans and formalized institutional commitment 
                statement which such institution or combination has 
                made to continue the program after the termination of 
                Federal financial assistance,
                    ``(C) the extent to which the institution or 
                combination is committed to extending cooperative 
                education for all students who can benefit, and
                    ``(D) such other factors as are consistent with the 
                purposes of this section.
            ``(2) Additional special consideration.--The Secretary 
        shall also give special consideration to applications from 
        institutions of higher education or combinations of such 
        institutions which demonstrate a commitment to serving all 
        underserved populations.

``SEC. 804. DEMONSTRATION AND INNOVATION PROJECTS; TRAINING AND 
              RESOURCE CENTERS; AND RESEARCH.

    ``(a) Authorization.--The Secretary is authorized, in accordance 
with the provisions of this section, to make grants and enter into 
contracts for--
            ``(1) the conduct of demonstration projects designed to 
        demonstrate or determine the feasibility or value of innovative 
        methods of cooperative education from the amounts available in 
        each fiscal year under section 802(b)(3);
            ``(2) the conduct of training and resource centers designed 
        to--
                    ``(A) train personnel in the field of cooperative 
                education;
                    ``(B) improve materials used in cooperative 
                education programs if such improvement is conducted in 
                conjunction with other activities described in this 
                paragraph;
                    ``(C) furnish technical assistance to institutions 
                of higher education to increase the potential of the 
                institution to continue to conduct a cooperative 
                education program without Federal assistance;
                    ``(D) encourage model cooperative education 
                programs which furnish education and training in 
                occupations in which there is a national need;
                    ``(E) support partnerships under which an 
                institution carrying out a comprehensive cooperative 
                education program joins with one or more institutions 
                of higher education in order to (i) assist the 
                institution other than the comprehensive cooperative 
                education institution to develop and expand an existing 
                program of cooperative education, or (ii) establish and 
                improve or expand comprehensive cooperative education 
                programs; and
                    ``(F) encourage model cooperative education 
                programs in the fields of science and mathematics for 
                women and minorities who are underrepresented in such 
                fields
        from the amounts available in each fiscal year under section 
        802(b)(4); and
            ``(3) the conduct of research relating to cooperative 
        education, from the amounts available in each fiscal year under 
        section 802(b)(5).
    ``(b) Administrative Provision.--
            ``(1) In general.--To carry out this section, the Secretary 
        may--
                    ``(A) make grants to or contracts with institutions 
                of higher education, or combinations of such 
                institutions; and
                    ``(B) make grants to or contracts with other public 
                or private nonprofit agencies or organizations, 
                whenever such grants or contracts will make an 
                especially significant contribution to attaining the 
                objectives of this section.
            ``(2) Limitation.--
                    ``(A) The Secretary may not use more than 3 percent 
                of the amount appropriated to carry out this section in 
                each fiscal year to enter into contracts described in 
                paragraph (1)(A).
                    ``(B) The Secretary may use not more than 3 percent 
                of the amount appropriated to carry out this section in 
                each fiscal year to enter into contracts described in 
                paragraph (1)(B).
    ``(c) Supplement not Supplant.--A recipient of a grant or contract 
under this section may use the funds provided only so as to supplement 
and, to the extent possible, increase the level of funds that would, in 
the absence of such funds, be made available from non-Federal sources 
to carry out the activities supported by such grant or contract, and in 
no case to supplant such funds from non-Federal sources.''.

SEC. 8. STUDY.

    (a) In General.--The Secretary of Education shall commission the 
National Research Council to conduct a national study to determine the 
viability of developing and implementing standards in environmental, 
health, and safety areas to provide for differential regulation of 
industrial laboratories and facilities, on the one hand, and research 
and teaching laboratories on the other. The National Research Council 
shall make specific recommendations for statutory and regulatory 
changes that are needed to develop such a differential approach.
    (b) Report.--The Secretary of Education shall submit the list of 
those regulations that impose the greatest compliance costs on 
institutions of higher education and make recommendations for statutory 
changes to ease the compliance burden to the Committee on Health, 
Education, Labor, and Pensions of the Senate and the Committee on 
Education and the Workforce of the House of Representatives.

SEC. 9. ARTICULATION AGREEMENT DEMONSTRATION PROGRAM.

    Part G of title IV is amended by inserting after section 486 (20 
U.S.C. 1093) the following new section:

``SEC. 486A. ARTICULATION AGREEMENT DEMONSTRATION PROGRAM.

    ``(a) Purpose; Definition.--
            ``(1) Purpose.--It is the purpose of this section to allow 
        demonstration programs that are monitored by the Department of 
        Education to encourage institutions of higher education to 
        enter into articulation agreements or consortia groups, as a 
        means to lower tuition prices to students.
            ``(2) Definition.--For the purposes of this section, the 
        term `articulation agreement' means an agreement between 
        institutions of higher education that specifies the 
        acceptability of courses in transfer toward meeting specific 
        degree requirements.
    ``(b) Demonstration Programs Authorized.--
            ``(1) In general.--The Secretary is authorized to select 
        institutions of higher education, systems of such institutions, 
        or consortia of such institutions for voluntary participation 
        in an articulation agreement demonstration program.
            ``(2) Eligible applicants.--
                    ``(A) Eligible institutions.--Except as provided in 
                subparagraphs (B), (C), and (D), only an institution of 
                higher education that is eligible to participate in 
                programs under this title shall be eligible to 
                participate in the articulation program authorized 
                under this section.
                    ``(B) Prohibition.--An institution of higher 
                education described in section 102(a)(1)(C) shall not 
                be eligible to participate in the articulation program 
                authorized under this section.
                    ``(C) Special rule.--Subject to subparagraph (B), 
                an institution of higher education that meets the 
                requirements of subsection (a) of section 102, other 
                than the requirement of paragraph (3)(A) or (3)(B) of 
                such subsection, and that provides a 2-year or 4-year 
                program of instruction for which the institution awards 
                an associate or baccalaureate degree, shall be eligible 
                to participate in the demonstration program authorized 
                under this section.
    ``(c) Application.--
            ``(1) In general.--Each institution, system, or consortium 
        of institutions desiring to participate in a demonstration 
        program under this section shall submit an application to the 
        Secretary at such time and in such manner as the Secretary may 
        require.
            ``(2) Contents.--Each application shall include--
                    ``(A) a description of the institution, system, or 
                consortium's consultation with a recognized accrediting 
                agency or association with respect to quality 
                assurances for the articulation programs to be offered;
                    ``(B) a description of the articulation program to 
                be offered;
                    ``(C) a description of the students to whom the 
                articulation programs will be offered;
                    ``(D) an assurance that the institution, system, or 
                consortium will offer full cooperation with the ongoing 
                evaluations of the demonstration program provided for 
                in this section; and
                    ``(E) such other information as the Secretary may 
                require.
    ``(d) Selection.--
            ``(1) In general.--For the first year of the demonstration 
        program authorized under this section, the Secretary is 
        authorized to select for participation in the program not more 
        than 100 institutions, systems of institutions, or consortia of 
        institutions. For the third year of the demonstration program 
        authorized under this section, the Secretary may select not 
        more than 250 institutions, systems, or consortia, in addition 
        to the institutions, systems, or consortia selected pursuant to 
        the preceding sentence, to participate in the demonstration 
        program if the Secretary determines that such expansion is 
        warranted based on the evaluations conducted in accordance with 
        subsections (f) and (g).
            ``(2) Considerations.--In selecting institutions to 
        participate in the articulation program in the first or 
        succeeding years of the program, the Secretary shall take into 
        account--
                    ``(A) the number and quality of applications 
                received;
                    ``(B) the Department's capacity to oversee and 
                monitor each institution's participation;
                    ``(C) an applicant's--
                            ``(i) financial responsibility;
                            ``(ii) administrative capability; and
                    ``(D) the need to ensure the participation of a 
                diverse group of institutions with respect to size, 
                mission, and geographic distribution.
            ``(3) Priority.--In selecting institutions to participate 
        in the articulation program in the first or succeeding years of 
        the program, the Secretary shall give priority to applicants 
        that involve a large number of schools; public and private 
        agreements; innovative technology to help reduce costs; and, 
        multi-state projects.
            ``(4) Notification.--The Secretary shall make available to 
        the public and to the Committee on Health, Education, Labor, 
        and Pensions of the Senate and the Committee on Education and 
        the Workforce of the House of Representatives a list of 
        institutions, systems or consortia selected to participate in 
        the articulation program authorized by this section.
    ``(e) Evaluations and Reports.--
            ``(1) Evaluation.--The Secretary shall evaluate the 
        demonstration programs authorized under this section on an 
        annual basis. Such evaluations specifically shall review--
                    ``(A) the extent to which the institution, system 
                or consortium has met the goals set forth in its 
                application to the Secretary;
                    ``(B) the number and types of institutions 
                participating in the programs offered;
                    ``(C) the cost containment strategies pursued and 
                the success of such strategies; and
                    ``(D) the effective use of technologies to keep 
                college prices low, while maintaining quality.
            ``(2) Reports.--
                    ``(A) In general.--Within 18 months of the 
                initiation of the demonstration program, the Secretary 
                shall report to the Committee on Health, Education, 
                Labor, and Pensions of the Senate and the Committee on 
                Education and the Workforce of the House of 
                Representatives with respect to the evaluations of the 
                demonstration programs authorized under this section.
                    ``(B) Additional reports.--The Secretary shall 
                provide additional reports to the Committee on Health, 
                Education, Labor, and Pensions of the Senate and the 
                Committee on Education and the Workforce of the House 
                of Representatives on an annual basis regarding--
                            ``(i) the demonstration programs authorized 
                        under this section; and
                            ``(ii) best practices to contain college 
                        costs.''.

SEC. 10. ADVISORY COMMITTEE ON STUDENT FINANCIAL ASSISTANCE.

    Section 491(j) (20 U.S.C. 1098(j)) is amended
            (1) by striking ``and'' at the end of paragraph (4);
            (2) by striking the period at the end of paragraph (5) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(6) convene a task force of experts, to be representative 
        of the key constituents in higher education--
                    ``(A) to determine the best methods to finance 
                higher education in the long-term;
                    ``(B) to help public institutions utilize long-term 
                budgeting to plan for the future;
                    ``(C) to review the trends of financing of higher 
                education;
                    ``(D) to define the role played by the States, the 
                Federal government, families, and outside entities in 
                financing higher education, and determine the best 
                methods to strengthen this partnership.''.
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