II

106TH CONGRESS

1ST SESSION S. 440

To provide support for certain institutes and schools.

IN THE SENATE OF THE UNITED STATES

FEBRUARY 23, 1999

Mr. THOMPSON (for himself, Mr. FRIST, Mr. DEWINE, Mr. VOINOVICH, and

Mr. SMITH of Oregon) introduced the following bill; which was read twice

and referred to the Committee on Health, Education, Labor, and Pensions

A BILL

To provide support for certain institutes and schools.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 TITLE I—HOWARD BAKER

4 SCHOOL OF GOVERNMENT

5 SEC. 101. DEFINITIONS.

6 In this title:

7 (1) BOARD.—The term ‘‘Board’’ means the

8 Board of Advisors established under section 104.

9 (2) ENDOWMENT FUND.—The term ‘‘endow10 ment fund’’ means a fund established by the Univer11 sity of Tennessee in Knoxville, Tennessee, for the
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1 purpose of generating income for the support of the

2 School.

3 (3) SCHOOL.—The term ‘‘School’’ means the

4 Howard Baker School of Government established

5 under this title.

6 (4) SECRETARY.—The term ‘‘Secretary’’ means

7 the Secretary of Education.

8 (5) UNIVERSITY.—The term ‘‘University’’

9 means the University of Tennessee in Knoxville,

10 Tennessee.

11 SEC. 102. HOWARD BAKER SCHOOL OF GOVERNMENT.

12 From the funds authorized to be appropriated under

13 section 106, the Secretary is authorized to award a grant

14 to the University for the establishment of an endowment

15 fund to support the Howard Baker School of Government

16 at the University of Tennessee in Knoxville, Tennessee.

17 SEC. 103. DUTIES.

18 In order to receive a grant under this title, the Uni19 versity shall establish the School. The School shall have

20 the following duties:

21 (1) To establish a professorship to improve

22 teaching and research related to, enhance the cur23 riculum of, and further the knowledge and under24 standing of, the study of democratic institutions, in-
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1 cluding aspects of regional planning, public adminis2 tration, and public policy.

3 (2) To establish a lecture series to increase the

4 knowledge and awareness of the major public issues

5 of the day in order to enhance informed citizen par6 ticipation in public affairs.

7 (3) To establish a fellowship program for stu8 dents of government, planning, public administra9 tion, or public policy who have demonstrated a com10 mitment and an interest in pursuing a career in

11 public affairs.

12 (4) To provide appropriate library materials

13 and appropriate research and instructional equip14 ment for use in carrying out academic and public

15 service programs, and to enhance the existing

16 United States Presidential and public official manu17 script collections.

18 (5) To support the professional development of

19 elected officials at all levels of government.

20 SEC. 104. ADMINISTRATION.

21 (a) BOARD OF ADVISORS.—

22 (1) IN GENERAL.—The School shall operate

23 with the advice and guidance of a Board of Advisors

24 consisting of 13 individuals appointed by the Vice

25 Chancellor for Academic Affairs of the University.
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1 (2) APPOINTMENTS.—Of the individuals ap2 pointed under paragraph (1)—

3 (A) 5 shall represent the University;

4 (B) 2 shall represent Howard Baker, his

5 family, or a designee thereof;

6 (C) 5 shall be representative of business or

7 government; and

8 (D) 1 shall be the Governor of Tennessee,

9 or the Governor’s designee.

10 (3) EX OFFICIO MEMBERS.—The Vice Chan11 cellor for Academic Affairs and the Dean of the Col12 lege of Arts and Sciences at the University shall

13 serve as an ex officio member of the Board.

14 (b) CHAIRPERSON.—

15 (1) IN GENERAL.—The Chancellor, with the

16 concurrence of the Vice Chancellor for Academic Af17 fairs, of the University shall designate 1 of the indi18 viduals first appointed to the Board under sub19 section (a) as the Chairperson of the Board. The in20 dividual so designated shall serve as Chairperson for

21 1 year.

22 (2) REQUIREMENTS.—Upon the expiration of

23 the term of the Chairperson of the individual des24 ignated as Chairperson under paragraph (1) or the

25 term of the Chairperson elected under this para-
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1 graph, the members of the Board shall elect a Chair2 person of the Board from among the members of the

3 Board.

4 SEC. 105. ENDOWMENT FUND.

5 (a) MANAGEMENT.—The endowment fund shall be

6 managed in accordance with the standard endowment poli7 cies established by the University of Tennessee System.

8 (b) USE OF INTEREST AND INVESTMENT INCOME.—

9 Interest and other investment income earned (on or after

10 the date of enactment of this subsection) from the endow11 ment fund may be used to carry out the duties of the

12 School under section 103.

13 (c) DISTRIBUTION OF INTEREST AND INVESTMENT

14 INCOME.—Funds realized from interest and other invest15 ment income earned (on or after the date of enactment

16 of this subsection) shall be available for expenditure by

17 the University for purposes consistent with section 103,

18 as recommended by the Board. The Board shall encourage

19 programs to establish partnerships, to leverage private

20 funds, and to match expenditures from the endowment

21 fund.

22 SEC. 106. AUTHORIZATION OF APPROPRIATIONS.

23 There is authorized to be appropriated to carry out

24 this title $10,000,000. Funds appropriated under this sec25 tion shall remain available until expended.
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1 TITLE II—JOHN GLENN INSTI2 TUTE FOR PUBLIC SERVICE

3 AND PUBLIC POLICY

4 SEC. 201. DEFINITIONS.

5 In this title:

6 (1) ENDOWMENT FUND.—The term ‘‘endow7 ment fund’’ means a fund established by the Univer8 sity for the purpose of generating income for the

9 support of the Institute.

10 (2) ENDOWMENT FUND CORPUS.—The term

11 ‘‘endowment fund corpus’’ means an amount equal

12 to the grant or grants awarded under this title plus

13 an amount equal to the matching funds required

14 under section 202(d).

15 (3) ENDOWMENT FUND INCOME.—The term

16 ‘‘endowment fund income’’ means an amount equal

17 to the total value of the endowment fund minus the

18 endowment fund corpus.

19 (4) INSTITUTE.—The term ‘‘Institute’’ means

20 the John Glenn Institute for Public Service and

21 Public Policy described in section 202.

22 (5) SECRETARY.—The term ‘‘Secretary’’ means

23 the Secretary of Education.

24 (6) UNIVERSITY.—The term ‘‘University’’

25 means the Ohio State University at Columbus, Ohio.
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1 SEC. 202. PROGRAM AUTHORIZED.

2 (a) GRANTS.—From the funds appropriated under

3 section 206, the Secretary is authorized to award a grant

4 to the Ohio State University for the establishment of an

5 endowment fund to support the John Glenn Institute for

6 Public Service and Public Policy. The Secretary may enter

7 into agreements with the University and include in any

8 agreement made pursuant to this title such provisions as

9 are determined necessary by the Secretary to carry out

10 this title.

11 (b) PURPOSES.—The Institute shall have the follow12 ing purposes:

13 (1) To sponsor classes, internships, community

14 service activities, and research projects to stimulate

15 student participation in public service, in order to

16 foster America’s next generation of leaders.

17 (2) To conduct scholarly research in conjunc18 tion with public officials on significant issues facing

19 society and to share the results of such research

20 with decisionmakers and legislators as the decision21 makers and legislators address such issues.

22 (3) To offer opportunities to attend seminars

23 on such topics as budgeting and finance, ethics, per24 sonnel management, policy evaluations, and regu25 latory issues that are designed to assist public offi26 cials in learning more about the political process and
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1 to expand the organizational skills and policy-mak2 ing abilities of such officials.

3 (4) To educate the general public by sponsoring

4 national conferences, seminars, publications, and fo5 rums on important public issues.

6 (5) To provide access to Senator John Glenn’s

7 extensive collection of papers, policy decisions, and

8 memorabilia, enabling scholars at all levels to study

9 the Senator’s work.

10 (c) DEPOSIT INTO ENDOWMENT FUND.—The Uni11 versity shall deposit the proceeds of any grant received

12 under this section into the endowment fund.

13 (d) MATCHING FUNDS REQUIREMENT.—The Univer14 sity may receive a grant under this section only if the Uni15 versity has deposited in the endowment fund established

16 under this title an amount equal to one-third of such grant

17 and has provided adequate assurances to the Secretary

18 that the University will administer the endowment fund

19 in accordance with the requirements of this title. The

20 source of the funds for the University match shall be de21 rived from State, private foundation, corporate, or individ22 ual gifts or bequests, but may not include Federal funds

23 or funds derived from any other federally supported fund.

24 (e) DURATION; CORPUS RULE.—The period of any

25 grant awarded under this section shall not exceed 20
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1 years, and during such period the University shall not

2 withdraw or expend any of the endowment fund corpus.

3 Upon expiration of the grant period, the University may

4 use the endowment fund corpus, plus any endowment fund

5 income for any educational purpose of the University.

6 SEC. 203. INVESTMENTS.

7 (a) IN GENERAL.—The University shall invest the

8 endowment fund corpus and endowment fund income in

9 accordance with the University’s investment policy ap10 proved by the Ohio State University Board of Trustees.

11 (b) JUDGMENT AND CARE.—The University, in in12 vesting the endowment fund corpus and endowment fund

13 income, shall exercise the judgment and care, under cir14 cumstances then prevailing, which a person of prudence,

15 discretion, and intelligence would exercise in the manage16 ment of the person’s own business affairs.

17 SEC. 204. WITHDRAWALS AND EXPENDITURES.

18 (a) IN GENERAL.—The University may withdraw and

19 expend the endowment fund income to defray any ex20 penses necessary to the operation of the Institute, includ21 ing expenses of operations and maintenance, administra22 tion, academic and support personnel, construction and

23 renovation, community and student services programs,

24 technical assistance, and research. No endowment fund in25 come or endowment fund corpus may be used for any type
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1 of support of the executive officers of the University or

2 for any commercial enterprise or endeavor. Except as pro3 vided in subsection (b), the University shall not, in the

4 aggregate, withdraw or expend more than 50 percent of

5 the total aggregate endowment fund income earned prior

6 to the time of withdrawal or expenditure.

7 (b) SPECIAL RULE.—The Secretary is authorized to

8 permit the University to withdraw or expend more than

9 50 percent of the total aggregate endowment fund income

10 whenever the University demonstrates such withdrawal or

11 expenditure is necessary because of—

12 (1) a financial emergency, such as a pending in13 solvency or temporary liquidity problem;

14 (2) a life-threatening situation occasioned by a

15 natural disaster or arson; or

16 (3) another unusual occurrence or exigent cir17 cumstance.

18 (c) REPAYMENT.—

19 (1) INCOME.—If the University withdraws or

20 expends more than the endowment fund income au21 thorized by this section, the University shall repay

22 the Secretary an amount equal to one-third of the

23 amount improperly expended (representing the Fed24 eral share thereof).
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1 (2) CORPUS.—Except as provided in section

2 202(e)—

3 (A) the University shall not withdraw or

4 expend any endowment fund corpus; and

5 (B) if the University withdraws or expends

6 any endowment fund corpus, the University

7 shall repay the Secretary an amount equal to

8 one-third of the amount withdrawn or expended

9 (representing the Federal share thereof) plus

10 any endowment fund income earned thereon.

11 SEC. 205. ENFORCEMENT.

12 (a) IN GENERAL.—After notice and an opportunity

13 for a hearing, the Secretary is authorized to terminate a

14 grant and recover any grant funds awarded under this sec15 tion if the University—

16 (1) withdraws or expends any endowment fund

17 corpus, or any endowment fund income in excess of

18 the amount authorized by section 204, except as

19 provided in section 202(e);

20 (2) fails to invest the endowment fund corpus

21 or endowment fund income in accordance with the

22 investment requirements described in section 203; or

23 (3) fails to account properly to the Secretary,

24 or the General Accounting Office if properly des25 ignated by the Secretary to conduct an audit of
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1 funds made available under this title, pursuant to

2 such rules and regulations as may be prescribed by

3 the Comptroller General of the United States, con4 cerning investments and expenditures of the endow5 ment fund corpus or endowment fund income.

6 (b) TERMINATION.—If the Secretary terminates a

7 grant under subsection (a), the University shall return to

8 the Treasury of the United States an amount equal to the

9 sum of the original grant or grants under this title, plus

10 any endowment fund income earned thereon. The Sec11 retary may direct the University to take such other appro12 priate measures to remedy any violation of this title and

13 to protect the financial interest of the United States.

14 SEC. 206. AUTHORIZATION OF APPROPRIATIONS.

15 There is authorized to be appropriated to carry out

16 this title $10,000,000. Funds appropriated under this sec17 tion shall remain available until expended.

18 TITLE III—OREGON INSTITUTE

19 OF PUBLIC SERVICE AND

20 CONSTITUTIONAL STUDIES

21 SEC. 301. DEFINITIONS.

22 In this title:

23 (1) ENDOWMENT FUND.—The term ‘‘endow24 ment fund’’ means a fund established by Portland
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1 State University for the purpose of generating in2 come for the support of the Institute.

3 (2) INSTITUTE.—The term ‘‘Institute’’ means

4 the Oregon Institute of Public Service and Constitu5 tional Studies established under this title.

6 (3) SECRETARY.—The term ‘‘Secretary’’ means

7 the Secretary of Education.

8 SEC. 302. OREGON INSTITUTE OF PUBLIC SERVICE AND

9 CONSTITUTIONAL STUDIES.

10 From the funds appropriated under section 306, the

11 Secretary is authorized to award a grant to Portland State

12 University at Portland, Oregon, for the establishment of

13 an endowment fund to support the Oregon Institute of

14 Public Service and Constitutional Studies at the Mark O.

15 Hatfield School of Government at Portland State Univer16 sity.

17 SEC. 303. DUTIES.

18 In order to receive a grant under this title the Port19 land State University shall establish the Institute. The In20 stitute shall have the following duties:

21 (1) To generate resources, improve teaching,

22 enhance curriculum development, and further the

23 knowledge and understanding of students of all ages

24 about public service, the United States Government,
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1 and the Constitution of the United States of Amer2 ica.

3 (2) To increase the awareness of the impor4 tance of public service, to foster among the youth of

5 the United States greater recognition of the role of

6 public service in the development of the United

7 States, and to promote public service as a career

8 choice.

9 (3) To establish a Mark O. Hatfield Fellows

10 program for students of government, public policy,

11 public health, education, or law who have dem12 onstrated a commitment to public service through

13 volunteer activities, research projects, or employ14 ment.

15 (4) To create library and research facilities for

16 the collection and compilation of research materials

17 for use in carrying out programs of the Institute.

18 (5) To support the professional development of

19 elected officials at all levels of government.

20 SEC. 304. ADMINISTRATION.

21 (a) LEADERSHIP COUNCIL.—

22 (1) IN GENERAL.—In order to receive a grant

23 under this title Portland State University shall en24 sure that the Institute operates under the direction
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1 of a Leadership Council (in this title referred to as

2 the ‘‘Leadership Council’’) that—

3 ‘‘(A) consists of 15 individuals appointed

4 by the President of Portland State University;

5 and

6 ‘‘(B) is established in accordance with this

7 section.

8 (2) APPOINTMENTS.—Of the individuals ap9 pointed under paragraph (1)(A)—

10 (A) Portland State University, Willamette

11 University, the Constitution Project, George

12 Fox University, Warner Pacific University, and

13 Oregon Health Sciences University shall each

14 have a representative;

15 (B) at least 1 shall represent Mark O.

16 Hatfield, his family, or a designee thereof;

17 (C) at least 1 shall have expertise in ele18 mentary and secondary school social sciences or

19 governmental studies;

20 (D) at least 2 shall be representative of

21 business or government and reside outside of

22 Oregon;

23 (E) at least 1 shall be an elected official;

24 and
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1 (F) at least 3 shall be leaders in the pri2 vate sector.

3 (3) EX-OFFICIO MEMBER.—The Director of the

4 Mark O. Hatfield School of Government at Portland

5 State University shall serve as an ex-officio member

6 of the Leadership Council.

7 (b) CHAIRPERSON.—

8 (1) IN GENERAL.—The President of Portland

9 State University shall designate 1 of the individuals

10 first appointed to the Leadership Council under sub11 section (a) as the Chairperson of the Leadership

12 Council. The individual so designated shall serve as

13 Chairperson for 1 year.

14 (2) REQUIREMENT.—Upon the expiration of the

15 term of the Chairperson of the individual designated

16 as Chairperson under paragraph (1), or the term of

17 the Chairperson elected under this paragraph, the

18 members of the Leadership Council shall elect a

19 Chairperson of the Leadership Council from among

20 the members of the Leadership Council.

21 SEC. 305. ENDOWMENT FUND.

22 (a) MANAGEMENT.—The endowment fund shall be

23 managed in accordance with the standard endowment poli24 cies established by the Oregon University System.
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1 (b) USE OF INTEREST AND INVESTMENT INCOME.—

2 Interest and other investment income earned (on or after

3 the date of enactment of this subsection) from the endow4 ment fund may be used to carry out the duties of the Insti5 tute under section 303.

6 (c) DISTRIBUTION OF INTEREST AND INVESTMENT

7 INCOME.—Funds realized from interest and other invest8 ment income earned (on or after the date of enactment

9 of this subsection) shall be spent by Portland State Uni10 versity in collaboration with Willamette University, George

11 Fox University, the Constitution Project, Warner Pacific

12 University, Oregon Health Sciences University, and other

13 appropriate educational institutions or community-based

14 organizations. In expending such funds, the Leadership

15 Council shall encourage programs to establish partner16 ships, to leverage private funds, and to match expendi17 tures from the endowment fund.

18 SEC. 306. AUTHORIZATION OF APPROPRIATIONS.

19 There is authorized to be appropriated to carry out

20 this title $3,000,000.

21 TITLE IV—PAUL SIMON PUBLIC

22 POLICY INSTITUTE

23 SEC. 401. DEFINITIONS.

24 In this title:
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1 (1) ENDOWMENT FUND.—The term ‘‘endow2 ment fund’’ means a fund established by the Univer3 sity for the purpose of generating income for the

4 support of the Institute.

5 (2) ENDOWMENT FUND CORPUS.—The term

6 ‘‘endowment fund corpus’’ means an amount equal

7 to the grant or grants awarded under this title plus

8 an amount equal to the matching funds required

9 under section 402(d).

10 (3) ENDOWMENT FUND INCOME.—The term

11 ‘‘endowment fund income’’ means an amount equal

12 to the total value of the endowment fund minus the

13 endowment fund corpus.

14 (4) INSTITUTE.—The term ‘‘Institute’’ means

15 the Paul Simon Public Policy Institute described in

16 section 402.

17 (5) SECRETARY.—The term ‘‘Secretary’’ means

18 the Secretary of Education.

19 (6) UNIVERSITY.—The term ‘‘University’’

20 means Southern Illinois University at Carbondale,

21 Illinois.

22 SEC. 402. PROGRAM AUTHORIZED.

23 (a) GRANTS.—From the funds appropriated under

24 section 406, the Secretary is authorized to award a grant

25 to Southern Illinois University for the establishment of an
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1 endowment fund to support the Paul Simon Public Policy

2 Institute. The Secretary may enter into agreements with

3 the University and include in any agreement made pursu4 ant to this title such provisions as are determined nec5 essary by the Secretary to carry out this title.

6 (b) DUTIES.—In order to receive a grant under this

7 title, the University shall establish the Institute. The Insti8 tute, in addition to recognizing more than 40 years of pub9 lic service to Illinois, to the Nation, and to the world, shall

10 engage in research, analysis, debate, and policy rec11 ommendations affecting world hunger, mass media, for12 eign policy, education, and employment.

13 (c) DEPOSIT INTO ENDOWMENT FUND.—The Uni14 versity shall deposit the proceeds of any grant received

15 under this section into the endowment fund.

16 (d) MATCHING FUNDS REQUIREMENT.—The Univer17 sity may receive a grant under this section only if the Uni18 versity has deposited in the endowment fund established

19 under this title an amount equal to one-third of such grant

20 and has provided adequate assurances to the Secretary

21 that the University will administer the endowment fund

22 in accordance with the requirements of this title. The

23 source of the funds for the University match shall be de24 rived from State, private foundation, corporate, or individ-
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1 ual gifts or bequests, but may not include Federal funds

2 or funds derived from any other federally supported fund.

3 (e) DURATION; CORPUS RULE.—The period of any

4 grant awarded under this section shall not exceed 20

5 years, and during such period the University shall not

6 withdraw or expend any of the endowment fund corpus.

7 Upon expiration of the grant period, the University may

8 use the endowment fund corpus, plus any endowment fund

9 income for any educational purpose of the University.

10 SEC. 403. INVESTMENTS.

11 (a) IN GENERAL.—The University shall invest the

12 endowment fund corpus and endowment fund income in

13 those low-risk instruments and securities in which a regu14 lated insurance company may invest under the laws of the

15 State of Illinois, such as federally insured bank savings

16 accounts or comparable interest bearing accounts, certifi17 cates of deposit, money market funds, or obligations of

18 the United States.

19 (b) JUDGMENT AND CARE.—The University, in in20 vesting the endowment fund corpus and endowment fund

21 income, shall exercise the judgment and care, under cir22 cumstances then prevailing, which a person of prudence,

23 discretion, and intelligence would exercise in the manage24 ment of the person’s own business affairs.
21

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1 SEC. 404. WITHDRAWALS AND EXPENDITURES.

2 (a) IN GENERAL.—The University may withdraw and

3 expend the endowment fund income to defray any ex4 penses necessary to the operation of the Institute, includ5 ing expenses of operations and maintenance, administra6 tion, academic and support personnel, construction and

7 renovation, community and student services programs,

8 technical assistance, and research. No endowment fund in9 come or endowment fund corpus may be used for any type

10 of support of the executive officers of the University or

11 for any commercial enterprise or endeavor. Except as pro12 vided in subsection (b), the University shall not, in the

13 aggregate, withdraw or expend more than 50 percent of

14 the total aggregate endowment fund income earned prior

15 to the time of withdrawal or expenditure.

16 (b) SPECIAL RULE.—The Secretary is authorized to

17 permit the University to withdraw or expend more than

18 50 percent of the total aggregate endowment fund income

19 whenever the University demonstrates such withdrawal or

20 expenditure is necessary because of—

21 (1) a financial emergency, such as a pending in22 solvency or temporary liquidity problem;

23 (2) a life-threatening situation occasioned by a

24 natural disaster or arson; or

25 (3) another unusual occurrence or exigent cir26 cumstance.
22

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1 (c) REPAYMENT.—

2 (1) INCOME.—If the University withdraws or

3 expends more than the endowment fund income au4 thorized by this section, the University shall repay

5 the Secretary an amount equal to one-third of the

6 amount improperly expended (representing the Fed7 eral share thereof).

8 (2) CORPUS.—Except as provided in section

9 402(e)—

10 (A) the University shall not withdraw or

11 expend any endowment fund corpus; and

12 (B) if the University withdraws or expends

13 any endowment fund corpus, the University

14 shall repay the Secretary an amount equal to

15 one-third of the amount withdrawn or expended

16 (representing the Federal share thereof) plus

17 any endowment fund income earned thereon.

18 SEC. 405. ENFORCEMENT.

19 (a) IN GENERAL.—After notice and an opportunity

20 for a hearing, the Secretary is authorized to terminate a

21 grant and recover any grant funds awarded under this sec22 tion if the University—

23 (1) withdraws or expends any endowment fund

24 corpus, or any endowment fund income in excess of
23

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1 the amount authorized by section 404, except as

2 provided in section 402(e);

3 (2) fails to invest the endowment fund corpus

4 or endowment fund income in accordance with the

5 investment requirements described in section 403; or

6 (3) fails to account properly to the Secretary,

7 or the General Accounting Office if properly des8 ignated by the Secretary to conduct an audit of

9 funds made available under this title, pursuant to

10 such rules and regulations as may be proscribed by

11 the Comptroller General of the United States, con12 cerning investments and expenditures of the endow13 ment fund corpus or endowment fund income.

14 (b) TERMINATION.—If the Secretary terminates a

15 grant under subsection (a), the University shall return to

16 the Treasury of the United States an amount equal to the

17 sum of the original grant or grants under this title, plus

18 any endowment fund income earned thereon. The Sec19 retary may direct the University to take such other appro20 priate measures to remedy any violation of this title and

21 to protect the financial interest of the United States.
24

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1 SEC. 406. AUTHORIZATION OF APPROPRIATIONS.

2 There is authorized to be appropriated to carry out

3 this title $3,000,000. Funds appropriated under this sec4 tion shall remain available until expended.

Æ