PUBLIC LAW 109–86—OCT. 7, 2005

NATURAL DISASTER STUDENT AID FAIRNESS

ACT

119 STAT. 2056 PUBLIC LAW 109–86—OCT. 7, 2005

Public Law 109–86

109th Congress

An Act

To provide the Secretary of Education with waiver authority for the reallocation

rules in the Campus-Based Aid programs, and to extend the deadline by which

funds have to be reallocated to institutions of higher education due to a natural

disaster.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; REFERENCES.

(a) SHORT TITLE.—This Act may be cited as the ‘‘Natural Disaster Student Aid Fairness Act’’.

(b) REFERENCES.—References in this Act to ‘‘the Act’’ are references to the Higher Education Act of 1965 (20 U.S.C. 1001 et

seq.).

SEC. 2. ALLOCATION AND USE OF CAMPUS-BASED HIGHER EDUCATION

ASSISTANCE.

(a) WAIVER OF MATCHING REQUIREMENTS.—Notwithstanding

sections 413C(a)(2), 443(b)(5), and 463(a)(2) of the Act (20 U.S.C.

1070b–2(a)(2); 42 U.S.C. 2753(b)(5); 20 U.S.C. 1087cc(a)(2)), with

respect to funds made available for academic years 2004–2005

and 2005–2006—

(1) in the case of an institution of higher education located

in an area affected by a Gulf hurricane disaster, the Secretary

shall waive the requirement that a participating institution

of higher education provide a non-Federal share or a capital

contribution, as the case may be, to match Federal funds provided to the institution for the programs authorized pursuant

to subpart 3 of part A, part C, and part E of title IV of

the Act; and

(2) in the case of an institution of higher education that

has accepted for enrollment any affected students, the Secretary

may waive that matching requirement after considering the

institution’s student population and existing resources, using

consistent and objective criteria.

(b) WAIVER OF REALLOCATION RULES.—

(1) AUTHORITY TO REALLOCATE.—Notwithstanding sections

413D(d), 442(d), and 462(I) of the Act (20 U.S.C. 1070b–3(d);

42 U.S.C. 2752(d); 20 U.S.C. 1087bb(I)), the Secretary shall—

(A) reallocate any funds returned under any of those

sections that were allocated to institutions of higher education for award year 2004–2005 to an institution of higher

education that is eligible under paragraph (2) of this subsection; and

Natural Disaster

Student Aid

Fairness Act.

Oct. 7, 2005

[H.R. 3863]

PUBLIC LAW 109–86—OCT. 7, 2005 119 STAT. 2057

(B) waive the allocation reduction for award year 2006–

2007 for an institution returning more than 10 percent

of its allocation under any of those sections.

(2) ELIGIBLE INSTITUTIONS FOR REALLOCATION.—An institution of higher education may receive a reallocation of excess

allocations under this subsection if the institution—

(A) participates in the program for which excess allocations are being reallocated; and

(B)(i) is located in an area affected by a Gulf hurricane

disaster; or

(ii) has accepted for enrollment any affected students

in academic year 2005–2006.

(3) BASIS OF REALLOCATION.—The Secretary shall determine the manner in which excess allocations shall be reallocated to institutions under paragraph (1), and shall give additional consideration to the needs of institutions located in an

area affected by a Gulf hurricane disaster.

(4) ADDITIONAL WAIVER AUTHORITY.—Notwithstanding any

other provision of law, in order to carry out this subsection,

the Secretary may waive or modify any statutory or regulatory

provision relating to the reallocation of excess allocations under

subpart 3 of part A, part C, or part E of title IV of the

Act in order to ensure that assistance is received by affected

institutions for affected students.

(c) AVAILABILITY OF FUNDS DATE EXTENSION.—Notwithstanding

any other provision of law—

(1) any funds available to the Secretary under sections

413A, 441, and 461 of the Act (20 U.S.C. 1070b; 42 U.S.C.

2751; 20 U.S.C. 1087aa) for which the period of availability

would otherwise expire on September 30, 2005, shall be available for obligation by the Secretary until September 30, 2006

for the purposes of the programs authorized pursuant to subpart 3 of part A, part C, and part E of title IV of the Act,

respectively; and

(2) the Secretary may recall any funds allocated to an

institution of higher education for award year 2004–2005 under

section 413D, 442, or 462 of the Act that, if not returned

to the Secretary as excess allocations pursuant to any of those

sections, would otherwise lapse on September 30, 2005, and

reallocate those funds in accordance with subsection (b)(1).

SEC. 3. EMERGENCY DESIGNATION.

Section 2 of this Act is designated as an emergency requirement

pursuant to section 402 of H. Con. Res. 95 (109th Congress).

SEC. 4. TERMINATION OF AUTHORITY.

The provisions of this Act shall cease to be effective one year

after the date of the enactment of this Act.

SEC. 5. DEFINITIONS.

In this Act:

(1) SECRETARY.—The term ‘‘Secretary’’ means the Secretary

of Education.

(2) AFFECTED STUDENT.—The term ‘‘affected student’’

means an individual who has applied for or received student

financial assistance under title IV of the Act, and who—

119 STAT. 2058 PUBLIC LAW 109–86—OCT. 7, 2005

LEGISLATIVE HISTORY—H.R. 3863:

CONGRESSIONAL RECORD, Vol. 151 (2005):

Sept. 27, considered and passed House.

Sept. 30, considered and passed Senate.

Æ

(A) was enrolled or accepted for enrollment, as of

August 29, 2005, at an institution of higher education

in an area affected by a Gulf hurricane disaster;

(B) was a dependent student enrolled or accepted for

enrollment at an institution of higher education that is

not in an area affected by a Gulf hurricane disaster, but

whose parents resided or were employed, as of August

29, 2005, in an area affected by a Gulf hurricane disaster;

or

(C) suffered direct economic hardship as a direct result

of a Gulf hurricane disaster, as determined by the Secretary

using consistent and objective criteria.

(3) GULF HURRICANE DISASTER.—The term ‘‘Gulf hurricane

disaster’’ means a major disaster that the President declared

to exist, in accordance with section 401 of the Robert T. Stafford

Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170),

and that was caused by Hurricane Katrina or Hurricane Rita.

(4) AREA AFFECTED BY A GULF HURRICANE DISASTER.—The

term ‘‘area affected by a Gulf hurricane disaster’’ means a

county or parish, in an affected State, that has been designated

by the Federal Emergency Management Agency for disaster

assistance for individuals and households as a result of Hurricane Katrina or Hurricane Rita.

(5) AFFECTED STATE.—The term ‘‘affected State’’ means the

State of Alabama, Louisiana, Mississippi, or Texas.

(6) INSTITUTION OF HIGHER EDUCATION.—The term ‘‘institution of higher education’’ has the meaning given that term

in section 102 of the Higher Education Act of 1965 (20 U.S.C.

1002).

Approved October 7, 2005.