II

105TH CONGRESS

2D SESSION S. 1882

To reauthorize the Higher Education Act of 1965, and for other purposes.

IN THE SENATE OF THE UNITED STATES

MARCH 30, 1998

Mr. JEFFORDS (for himself, Mr. KENNEDY, Mr. COATS, and Mr. DODD) introduced the following bill; which was read twice and referred to the Committee on Labor and Human Resources

A BILL

To reauthorize the Higher Education Act of 1965, and for

other purposes.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Higher Education

5 Amendments of 1998’’.

6 SEC. 2. REFERENCES.

7 Except as otherwise expressly provided, whenever in

8 this Act an amendment or repeal is expressed in terms

9 of an amendment to, or repeal of, a section or other provi10 sion, the reference shall be considered to be made to a
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1 section or other provision of the Higher Education Act of

2 1965 (20 U.S.C. 1001 et seq.).

3 TITLE I—GENERAL PROVISIONS

4 SEC. 101. GENERAL PROVISIONS.

5 (a) REPEAL; TRANSFER AND REDESIGNATION.—The

6 Act (20 U.S.C. 1001 et seq.) is amended—

7 (1) by repealing title I (20 U.S.C. 1001 et

8 seq.);

9 (2) by repealing sections 1203, 1206, 1211, and

10 1212 (20 U.S.C. 1143, 1145a, 1145e, and 1145f);

11 (3) by striking the heading for title XII (20

12 U.S.C. 1141 et seq.);

13 (4) by inserting before title III (20 U.S.C. 1051

14 et seq.) the following:

15 ‘‘TITLE I—GENERAL

16 PROVISIONS’’;

17 (5) by transferring sections 1201, 1202, 1204

18 (as renumbered by Public Law 90–575), 1204 (as

19 added by Public Law 96–374), 1205, 1207, 1208,

20 1209, 1210, and 1213 (20 U.S.C. 1141, 1142,

21 1144, 1144a, 1145, 1145b, 1145c, 1145d, 1145d–1,

22 and 1145g) to follow the heading for title I (as in23 serted by paragraph (4)); and

24 (6) by redesignating sections 1201, 1202, 1204

25 (as renumbered by Public Law 90–575), 1204 (as
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1 added by Public Law 96–374), 1205, 1207, 1208,

2 1209, 1210, and 1213 as sections 101, 102, 103,

3 104, 105, 106, 107, 108, 109, and 110, respectively.

4 SEC. 102. FEDERAL CONTROL OF EDUCATION PROHIBITED.

5 Section 103 (as redesignated by section 101(a)(6))

6 (20 U.S.C. 1144) is amended by striking ‘‘(b)’’.

7 SEC. 103. NATIONAL ADVISORY COMMITTEE ON INSTITU8 TIONAL QUALITY AND INTEGRITY.

9 Section 105 (as redesignated by section 101(a)(6))

10 (20 U.S.C. 1145) is amended—

11 (1) by striking the last sentence of subsection

12 (a);

13 (2) by redesignating subsections (c) through (f)

14 as subsections (d) through (g), respectively;

15 (3) by inserting after subsection (b) the follow16 ing:

17 ‘‘(c) PUBLIC NOTICE.—The Secretary shall—

18 ‘‘(1) annually publish in the Federal Register a

19 list containing the name of each member of the

20 Committee and the date of the expiration of the

21 term of office of the member; and

22 ‘‘(2) publicly solicit nominations for each vacant

23 position or expiring term of office on the Commit24 tee.’’;
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1 (4) in subsection (d) (as redesignated by para2 graph (2))—

3 (A) by striking paragraph (6); and

4 (B) by redesignating paragraphs (7) and

5 (8) as paragraphs (6) and (7), respectively; and

6 (5) in subsection (g) (as redesignated by para7 graph (2)), by striking ‘‘1998’’ and inserting

8 ‘‘2004’’.

9 SEC. 104. PRIOR RIGHTS AND OBLIGATIONS; RECOVERY OF

10 PAYMENTS.

11 Title I (20 U.S.C. 1001 et seq.) is amended by adding

12 after section 110 (as redesignated by section 101(a)(6))

13 the following:

14 ‘‘SEC. 111. PRIOR RIGHTS AND OBLIGATIONS.

15 ‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—

16 ‘‘(1) PRE-1987 PARTS C AND D OF TITLE VII.—

17 There are authorized to be appropriated such sums

18 as may be necessary for fiscal year 1999 and for

19 each of the 4 succeeding fiscal years to pay obliga20 tions incurred prior to 1987 under parts C and D

21 of title VII, as such parts were in effect before the

22 effective date of the Higher Education Amendments

23 of 1992.

24 ‘‘(2) POST-1992 AND PRE-1998 PART C OF TITLE

25 VII.—There are authorized to be appropriated such
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1 sums as may be necessary for fiscal year 1999 and

2 for each of the 4 succeeding fiscal years to pay obli3 gations incurred prior to the date of enactment of

4 the Higher Education Amendments of 1998 under

5 part C of title VII, as such part was in effect during

6 the period—

7 ‘‘(A) after the effective date of the Higher

8 Education Amendments of 1992; and

9 ‘‘(B) prior to the date of enactment of the

10 Higher Education Amendments of 1998.

11 ‘‘(b) LEGAL RESPONSIBILITIES.—

12 ‘‘(1) PRE-1987 TITLE VII.—All entities with con13 tinuing obligations incurred under parts A, B, C,

14 and D of title VII, as such parts were in effect be15 fore the effective date of the Higher Education

16 Amendments of 1992, shall be subject to the re17 quirements of such part as in effect before the effec18 tive date of the Higher Education Amendments of

19 1992.

20 ‘‘(2) POST-1992 AND PRE-1998 PART C OF TITLE

21 VII.—All entities with continuing obligations in22 curred under part C of title VII, as such part was

23 in effect during the period—

24 ‘‘(A) after the effective date of the Higher

25 Education Amendments of 1992; and
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1 ‘‘(B) prior to the date of enactment of the

2 Higher Education Amendments of 1998,

3 shall be subject to the requirements of such part as

4 such part was in effect during such period.

5 ‘‘SEC. 112. RECOVERY OF PAYMENTS.

6 ‘‘(a) PUBLIC BENEFIT.—Congress declares that, if a

7 facility constructed with the aid of a grant under part A

8 of title VII as such part A was in effect prior to the date

9 of enactment of the Higher Education Amendments of

10 1998, or part B of such title as such part B was in effect

11 prior to the date of enactment of the Higher Education

12 Amendments of 1992, is used as an academic facility for

13 20 years following completion of such construction, the

14 public benefit accruing to the United States will equal in

15 value the amount of the grant. The period of 20 years

16 after completion of such construction shall therefore be

17 deemed to be the period of Federal interest in such facility

18 for the purposes of such title as so in effect.

19 ‘‘(b) RECOVERY UPON CESSATION OF PUBLIC BENE20 FIT.—If, within 20 years after completion of construction

21 of an academic facility which has been constructed, in part

22 with a grant under part A of title VII as such part A

23 was in effect prior to the date of enactment of the Higher

24 Education Amendments of 1998, or part B of title VII
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1 as such part B was in effect prior to the date of enactment

2 of the Higher Education Amendments of 1992—

3 ‘‘(1) the applicant under such parts as so in ef4 fect (or the applicant’s successor in title or posses5 sion) ceases or fails to be a public or nonprofit insti6 tution, or

7 ‘‘(2) the facility ceases to be used as an aca8 demic facility, or the facility is used as a facility ex9 cluded from the term ‘academic facility’ (as such

10 term was defined under title VII, as so in effect),

11 unless the Secretary determines that there is good

12 cause for releasing the institution from its obliga13 tion,

14 the United States shall be entitled to recover from such

15 applicant (or successor) an amount which bears to the

16 value of the facility at that time (or so much thereof as

17 constituted an approved project or projects) the same ratio

18 as the amount of Federal grant bore to the cost of the

19 facility financed with the aid of such grant. The value shall

20 be determined by agreement of the parties or by action

21 brought in the United States district court for the district

22 in which such facility is situated.

23 ‘‘(c) PROHIBITION ON USE FOR RELIGION.—Not24 withstanding the provisions of subsections (a) and (b), no

25 project assisted with funds under title VII (as in effect
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1 prior to the date of enactment of the Higher Education

2 Amendments of 1998) shall ever be used for religious wor3 ship or a sectarian activity or for a school or department

4 of divinity.’’.

5 SEC. 105. TECHNICAL AND CONFORMING AMENDMENTS.

6 (a) CONFORMING AMENDMENTS CORRECTING REF7 ERENCES TO SECTION 1201.—

8 (1) AGRICULTURE.—

9 (A) STUDENT INTERNSHIP PROGRAMS.—

10 Section 922 of the Federal Agriculture Im11 provement and Reform Act of 1996 (7 U.S.C.

12 2279c) is amended—

13 (i) in subsection (a)(1)(B)—

14 (I) by striking ‘‘1201’’ and in15 serting ‘‘101’’; and

16 (II) by striking ‘‘(20 U.S.C.

17 1141)’’; and

18 (ii) in subsection (b)(1)—

19 (I) by striking ‘‘1201’’ and in20 serting ‘‘101’’; and

21 (II) by striking ‘‘(20 U.S.C.

22 1141)’’.

23 (B) AGRICULTURAL SCIENCES EDU24 CATION.—Section 1417(h)(1)(A) of the Na25 tional Agricultural Research, Extension, and
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1 Teaching Policy Act of 1977 (7 U.S.C.

2 3152(h)(1)(A)) is amended—

3 (i) by striking ‘‘1201(a)’’ and insert4 ing ‘‘101(a)’’; and

5 (ii) by striking ‘‘(20 U.S.C.

6 1141(a))’’.

7 (2) ARMED FORCES.—

8 (A) SCIENCE AND MATHEMATICS EDU9 CATION IMPROVEMENT PROGRAM.—Section

10 2193(c)(1) of title 10, United States Code, is

11 amended—

12 (i) by striking ‘‘1201(a)’’ and insert13 ing ‘‘101(a)’’; and

14 (ii) by striking ‘‘(20 U.S.C.

15 1141(a))’’.

16 (B) SUPPORT OF SCIENCE, MATHEMATICS,

17 AND ENGINEERING EDUCATION.—Section

18 2199(2) of title 10, United States Code, is

19 amended—

20 (i) by striking ‘‘1201(a)’’ and insert21 ing ‘‘101(a)’’; and

22 (ii) by striking ‘‘(20 U.S.C.

23 1141(a))’’.

24 (C) ALLOWABLE COSTS UNDER DEFENSE

25 CONTRACTS.—Section 841(c)(2) of the National
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1 Defense Authorization Act for fiscal year 1994

2 (10 U.S.C. 2324 note) is amended—

3 (i) by striking ‘‘1201(a)’’ and insert4 ing ‘‘101(a)’’; and

5 (ii) by striking ‘‘(20 U.S.C.

6 1141(a))’’.

7 (D) ENVIRONMENTAL RESTORATION INSTI8 TUTIONAL GRANTS FOR TRAINING DISLOCATED

9 DEFENSE WORKERS AND YOUNG ADULTS.—Sec10 tion 1333(i)(3) of the National Defense Author11 ization Act for fiscal year 1994 (10 U.S.C.

12 2701 note) is amended—

13 (i) by striking ‘‘1201(a)’’ and insert14 ing ‘‘101(a)’’; and

15 (ii) by striking ‘‘(20 U.S.C.

16 1141(a))’’.

17 (E) ENVIRONMENTAL EDUCATION OPPOR18 TUNITIES PROGRAM.—Section 1334(k)(3) of the

19 National Defense Authorization Act for fiscal

20 year 1994 (10 U.S.C. 2701 note) is amended—

21 (i) by striking ‘‘1201(a)’’ and insert22 ing ‘‘101(a)’’; and

23 (ii) by striking ‘‘(20 U.S.C.

24 1141(a))’’.
11

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1 (F) ENVIRONMENTAL SCHOLARSHIP AND

2 FELLOWSHIP PROGRAMS.—Section 4451(b)(1)

3 of the National Defense Authorization Act for

4 1993 (10 U.S.C. 2701 note) is amended—

5 (i) by striking ‘‘1201(a)’’ and insert6 ing ‘‘101(a)’’; and

7 (ii) by striking ‘‘(20 U.S.C.

8 1141(a))’’.

9 (3) APPLICATION OF ANTITRUST LAWS TO

10 AWARD OF NEED-BASED EDUCATIONAL AID.—Sec11 tion 568(c)(3) of the Improving America’s Schools

12 Act of 1994 (15 U.S.C. 1 note) is amended—

13 (A) by striking ‘‘1201(a)’’ and inserting

14 ‘‘101(a)’’; and

15 (B) by striking ‘‘(20 U.S.C. 1141(a))’’.

16 (4) RESTRICTIONS ON FORMER OFFICERS, EM17 PLOYEES, AND ELECTED OFFICIALS OF THE EXECU18 TIVE AND LEGISLATIVE BRANCHES.—Section

19 207(j)(2)(B) of title 18, United States Code, is

20 amended by striking ‘‘1201(a)’’ and inserting

21 ‘‘101(a)’’.

22 (5) EDUCATION.—

23 (A) HIGHER EDUCATION AMENDMENTS OF

24 1992.—Section 1(c) of the Higher Education

25 Amendments of 1992 (20 U.S.C. 1001 note) is
12

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1 amended by striking ‘‘1201’’ and inserting

2 ‘‘101’’.

3 (B) PART F DEFINITIONS.—Section 481 of

4 the Higher Education Act of 1965 (20 U.S.C.

5 1088) is amended—

6 (i) in subsection (a)—

7 (I) in the matter preceding para8 graph (1)(A), by striking ‘‘1201(a)’’

9 and inserting ‘‘101(a)’’;

10 (II) in paragraph (1)(C), by

11 striking ‘‘1201(a)’’ and inserting

12 ‘‘101(a)’’;

13 (III) in the first sentence of the

14 matter preceding clause (i) of para15 graph (2)(A), by striking ‘‘1201(a)’’

16 and inserting ‘‘101(a)’’; and

17 (IV) in the matter following

18 paragraph (2)(B)(ii), by striking

19 ‘‘1201(a)’’ and inserting ‘‘101(a)’’;

20 (ii) in subsection (b)—

21 (I) in the first sentence—

22 (aa) in paragraph (2), by

23 striking ‘‘1201(a)’’ and inserting

24 ‘‘101(a)’’; and
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1 (bb) in paragraph (3), by

2 striking ‘‘1201(a)’’ and inserting

3 ‘‘101(a)’’; and

4 (II) in the second sentence, by

5 striking ‘‘1201(a)’’ and inserting

6 ‘‘101(a)’’; and

7 (iii) in subsection (c)—

8 (I) in the first sentence, by strik9 ing ‘‘1201(a)’’ and inserting

10 ‘‘101(a)’’; and

11 (II) in the second sentence, by

12 striking ‘‘1201(a)’’ and inserting

13 ‘‘101(a)’’.

14 (C) TREATMENT OF BRANCHES.—Section

15 498(j)(2) of the Higher Education Act of 1965

16 (20 U.S.C. 1099c(j)(2)) is amended by striking

17 ‘‘1201(a)(2)’’ and inserting ‘‘101(a)(2)’’.

18 (D) SMALL STATE TEACHING INITIA19 TIVE.—Section 591(d)(2) of the Higher Edu20 cation Act of 1965 (20 U.S.C. 1115(d)(2)) is

21 amended by striking ‘‘1201(a)’’ and inserting

22 ‘‘101(a)’’.

23 (E) INTERNATIONAL EDUCATION PRO24 GRAMS.—Section 631(a)(8) of the Higher Edu25 cation Act of 1965 (20 U.S.C. 1132(a)(8)) is
14

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1 amended by striking ‘‘1201(a)’’ each place it

2 appears and inserting ‘‘101(a)’’.

3 (F) DWIGHT D. EISENHOWER LEADERSHIP

4 PROGRAM.—Section 1081(d) of the Higher

5 Education Act of 1965 (20 U.S.C. 1135f(d)) is

6 amended by striking ‘‘1201’’ and inserting

7 ‘‘101’’.

8 (G) DISCLOSURE REQUIREMENTS.—Sec9 tion 429(d)(2)(B)(ii) of the General Education

10 Provisions Act (20 U.S.C. 1228c(d)(2)(B)(ii))

11 is amended by striking ‘‘1201(a)’’ and inserting

12 ‘‘101(a)’’.

13 (H) HARRY S. TRUMAN SCHOLARSHIPS.—

14 Section 3(4) of the Harry S. Truman Memorial

15 Scholarship Act (20 U.S.C. 2002(4)) is amend16 ed by striking ‘‘1201(a)’’ and inserting

17 ‘‘101(a)’’.

18 (I) TECH-PREP EDUCATION.—Section

19 347(2)(A) of the Carl D. Perkins Vocational

20 and Applied Technology Education Act (20

21 U.S.C. 2394e(2)(A)) is amended by striking

22 ‘‘1201(a)’’ and inserting ‘‘101(a)’’.

23 (J) EDUCATION FOR ECONOMIC SECU24 RITY.—Section 3(6) of the Education for Eco25 nomic Security Act (20 U.S.C. 3902(6)) is
15

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1 amended by striking ‘‘1201(a)’’ and inserting

2 ‘‘101(a)’’.

3 (K) JAMES MADISON MEMORIAL FELLOW4 SHIPS.—Section 815 of the James Madison Me5 morial Fellowship Act (20 U.S.C. 4514) is

6 amended—

7 (i) in paragraph (3), by striking

8 ‘‘1201(a)’’ and inserting ‘‘101(a)’’; and

9 (ii) in paragraph (4), by striking

10 ‘‘1201(d) of the Higher Education Act of

11 1965’’ and inserting ‘‘14101 of the Ele12 mentary and Secondary Education Act of

13 1965’’.

14 (L) BARRY GOLDWATER SCHOLARSHIPS.—

15 Section 1403(4) of the Barry Goldwater Schol16 arship and Excellence in Education Act (20

17 U.S.C. 4702(4)) is amended—

18 (i) by striking ‘‘1201(a)’’ and insert19 ing ‘‘101(a)’’; and

20 (ii) by striking ‘‘(20 U.S.C.

21 1141(a))’’.

22 (M) MORRIS K. UDALL SCHOLARSHIPS.—

23 Section 4(6) of the Morris K. Udall Scholarship

24 and Excellence in National Environmental and

25 Native American Public Policy Act of 1992 (20
16

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1 U.S.C. 5602(6)) is amended by striking

2 ‘‘1201(a)’’ and inserting ‘‘101(a)’’.

3 (N) BILINGUAL EDUCATION, AND LAN4 GUAGE ENHANCEMENT AND ACQUISITION.—

5 Section 7501(4) of the Elementary and Second6 ary Education Act of 1965 (20 U.S.C. 7601(4))

7 is amended by striking ‘‘1201(a)’’ and inserting

8 ‘‘101(a)’’.

9 (O) GENERAL DEFINITIONS.—Section

10 14101(17) of the Elementary and Secondary

11 Education Act of 1965 (20 U.S.C. 8801(17)) is

12 amended by striking ‘‘1201(a)’’ and inserting

13 ‘‘101(a)’’.

14 (P) NATIONAL EDUCATION STATISTICS.—

15 Section 402(c)(3) of the National Education

16 Statistics Act of 1994 (20 U.S.C. 9001(c)(3)) is

17 amended by striking ‘‘1201(a)’’ and inserting

18 ‘‘101(a)’’.

19 (6) FOREIGN RELATIONS.—

20 (A) ENVIRONMENT AND SUSTAINABLE DE21 VELOPMENT EXCHANGE PROGRAM.—Section

22 240(d) of the Foreign Relations Authorization

23 Act, Fiscal Years 1994 and 1995 (22 U.S.C.

24 2452 note) is amended by striking ‘‘1201(a)’’

25 and inserting ‘‘101(a)’’.
17

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1 (B) SAMANTHA SMITH MEMORIAL EX2 CHANGE PROGRAM.—Section 112(a)(8) of the

3 Mutual Educational and Cultural Exchange Act

4 of 1961 (22 U.S.C. 2460(a)(8)) is amended—

5 (i) by striking ‘‘1201(a)’’ and insert6 ing ‘‘101(a)’’; and

7 (ii) by striking ‘‘(20 U.S.C.

8 1141(a))’’.

9 (C) SOVIET-EASTERN EUROPEAN TRAIN10 ING.—Section 803(1) of the Soviet-Eastern Eu11 ropean Research and Training Act of 1983 (22

12 U.S.C. 4502(1)) is amended by striking

13 ‘‘1201(a)’’ and inserting ‘‘101(a)’’.

14 (D) DEVELOPING COUNTRY SCHOLAR15 SHIPS.—Section 603(d) of the Foreign Rela16 tions Authorization Act, Fiscal Years 1986 and

17 1987 (22 U.S.C. 4703(d)) is amended by strik18 ing ‘‘1201(a)’’ and inserting ‘‘101(a)’’.

19 (7) INDIANS.—

20 (A) SNYDER ACT.—The last paragraph of

21 section 410 of the Act entitled ‘‘An Act author22 izing appropriations and expenditures for the

23 administration of Indian Affairs, and for other

24 purposes’’, approved November 2, 1921 (25

25 U.S.C. 13) (commonly known as the Snyder
18

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1 Act) is amended by striking ‘‘1201’’ and insert2 ing ‘‘101’’.

3 (B) TRIBALLY CONTROLLED COMMUNITY

4 COLLEGE ASSISTANCE.—Section 2(a)(5) of the

5 Tribally Controlled Community College Assist6 ance Act (25 U.S.C. 1801(a)(5)) is amended by

7 striking ‘‘1201(a)’’ and inserting ‘‘101(a)’’.

8 (C) CONSTRUCTION OF NEW FACILITIES.—

9 Section 113(b)(2) of the Tribally Controlled

10 Community College Assistance Act (25 U.S.C.

11 1813(b)(2)) is amended—

12 (i) by striking ‘‘1201(a)’’ and insert13 ing ‘‘101(a)’’; and

14 (ii) by striking ‘‘(20 U.S.C.

15 1141(a))’’.

16 (D) AMERICAN INDIAN TEACHER TRAIN17 ING.—Section 1371(a)(1)(B) of the Higher

18 Education Amendments of 1992 (25 U.S.C.

19 3371(a)(1)(B)) is amended by striking

20 ‘‘1201(a)’’ and inserting ‘‘101(a)’’.

21 (8) LABOR.—

22 (A) REHABILITATION DEFINITIONS.—Sec23 tion 7(32) of the Rehabilitation Act of 1973

24 (29 U.S.C. 706(32)) is amended—
19

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1 (i) by striking ‘‘1201(a)’’ and insert2 ing ‘‘101(a)’’; and

3 (ii) by striking ‘‘(20 U.S.C.

4 1141(a))’’.

5 (B) STATE PLANS.—Section

6 101(a)(7)(A)(iv)(II) of the Rehabilitation Act of

7 1973 (29 U.S.C. 721(a)(7)(A)(iv)(II)) is

8 amended—

9 (i) by striking ‘‘1201(a)’’ and insert10 ing ‘‘101(a)’’; and

11 (ii) by striking ‘‘(20 U.S.C.

12 1141(a))’’.

13 (C) JTPA DEFINITIONS.—Section 4(12) of

14 the Job Training Partnership Act (29 U.S.C.

15 1503(12)) is amended by striking ‘‘1201(a)’’

16 and inserting ‘‘101(a)’’.

17 (D) TUITION CHARGES.—Section

18 141(d)(3)(B) of the Job Training Partnership

19 Act (29 U.S.C. 1551(d)(3)(B)) is amended—

20 (i) by striking ‘‘1201(a)’’ and insert21 ing ‘‘101(a)’’; and

22 (ii) by striking ‘‘(20 U.S.C.

23 1141(a))’’.

24 (9) SURFACE MINING CONTROL.—Section

25 701(32) of the Surface Mining Control and Rec-
20

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1 lamation Act of 1977 (30 U.S.C. 1291(32)) is

2 amended by striking ‘‘1201(a)’’ and inserting

3 ‘‘101(a)’’.

4 (10) POLLUTION PREVENTION.—Section

5 112(a)(1) of the Federal Water Pollution Control

6 Act (33 U.S.C. 1262(a)(1)) is amended by striking

7 ‘‘1201’’ and inserting ‘‘101’’.

8 (11) POSTAL SERVICE.—Section 3626(b)(3) of

9 title 39, United States Code, is amended—

10 (A) by striking ‘‘1201(a)’’ and inserting

11 ‘‘101(a)’’; and

12 (B) by striking ‘‘(20 U.S.C. 1141(a))’’.

13 (12) BLOCK GRANTS TO STATES.—Section

14 404(h)(5)(A)(i) of the Social Security Act (42

15 U.S.C. 604(h)(5)(A)(i)) is amended—

16 (A) by striking ‘‘1201(a)’’ and inserting

17 ‘‘101(a)’’; and

18 (B) by striking ‘‘(20 U.S.C. 1088(a)(1) or

19 1141(a))’’.

20 (13) PUBLIC HEALTH AND WELFARE.—

21 (A) SCIENTIFIC AND TECHNICAL EDU22 CATION.—Section 3(g) of the Scientific and Ad23 vanced-Technology Act of 1992 (42 U.S.C.

24 1862i(g)) is amended—

25 (i) in paragraph (2)—
21

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1 (I) by striking ‘‘1201(a)’’ and in2 serting ‘‘101(a)’’; and

3 (II) by striking ‘‘(20 U.S.C.

4 1141(a))’’; and

5 (ii) in paragraph (3)—

6 (I) by striking ‘‘1201(a)’’ and in7 serting ‘‘101(a)’’; and

8 (II) by striking ‘‘(20 U.S.C.

9 1141(a))’’.

10 (B) OLDER AMERICANS.—Section 102(32)

11 of the Older Americans Act of 1965 (42 U.S.C.

12 3002(32)) is amended—

13 (i) by striking ‘‘1201(a)’’ and insert14 ing ‘‘101(a)’’; and

15 (ii) by striking ‘‘(20 U.S.C.

16 1141(a))’’.

17 (C) JUSTICE SYSTEM IMPROVEMENT.—

18 Section 901(17) of the Omnibus Crime Control

19 and Safe Streets Act of 1968 (42 U.S.C.

20 3791(17)) is amended—

21 (i) by striking ‘‘1201(a)’’ and insert22 ing ‘‘101(a)’’; and

23 (ii) by striking ‘‘(20 U.S.C.

24 1141(a))’’.
22

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1 (D) ENERGY TECHNOLOGY COMMER2 CIALIZATION SERVICES PROGRAM.—Section

3 362(f)(5)(A) of the Energy Policy and Con4 servation Act (42 U.S.C. 6322(f)(5)(A)) is

5 amended—

6 (i) by striking ‘‘1201(a)’’ and insert7 ing ‘‘101(a)’’; and

8 (ii) by striking ‘‘(20 U.S.C.

9 1141(a))’’.

10 (E) ENVIRONMENTAL RESTORATION AND

11 WASTE MANAGEMENT.—Section 3132(b)(1) of

12 the National Defense Authorization Act for Fis13 cal Years 1992 and 1993 (42 U.S.C.

14 7274e(b)(1)) is amended—

15 (i) by striking ‘‘1201(a)’’ and insert16 ing ‘‘101(a)’’; and

17 (ii) by striking ‘‘(20 U.S.C.

18 1141(a))’’.

19 (F) HEAD START.—Section 649(c)(3) of

20 the Head Start Act (42 U.S.C. 9844(c)(3)) is

21 amended—

22 (i) by striking ‘‘1201(a)’’ and insert23 ing ‘‘101(a)’’; and

24 (ii) by striking ‘‘(20 U.S.C.

25 1141(a))’’.
23

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1 (G) STATE DEPENDENT CARE DEVELOP2 MENT GRANTS.—Section 670G(5) of the Child

3 Care and Development Block Grant Act of

4 1990 (42 U.S.C. 9877(5)) is amended by strik5 ing ‘‘1201(a)’’ and inserting ‘‘101(a)’’.

6 (H) INSTRUCTIONAL ACTIVITIES FOR LOW7 INCOME YOUTH.—The matter preceding sub8 paragraph (A) of section 682(b)(1) of the Com9 munity Services Block Grant Act (42 U.S.C.

10 9910c(b)(1)) is amended by striking ‘‘1201(a)’’

11 and inserting ‘‘101(a)’’.

12 (I) DRUG ABUSE EDUCATION.—Section

13 3601(7) of the Anti-Drug Abuse Act of 1988

14 (42 U.S.C. 11851(7)) is amended—

15 (i) by striking ‘‘1201(a)’’ and insert16 ing ‘‘101(a)’’; and

17 (ii) by striking ‘‘(20 U.S.C.

18 1141(a))’’.

19 (J) NATIONAL AND COMMUNITY SERV20 ICE.—Section 101(13) of the National and

21 Community Service Act of 1990 (42 U.S.C.

22 12511(13)) is amended—

23 (i) by striking ‘‘1201(a)’’ and insert24 ing ‘‘101(a)’’; and
24

•S 1882 IS

1 (ii) by striking ‘‘(20 U.S.C.

2 1141(a))’’.

3 (K) CIVILIAN COMMUNITY CORPS.—Section

4 166(6) of the National and Community Service

5 Act of 1990 (42 U.S.C. 12626(6)) is amend6 ed—

7 (i) by striking ‘‘1201(a)’’ and insert8 ing ‘‘101(a)’’; and

9 (ii) by striking ‘‘(20 U.S.C.

10 1141(a))’’.

11 (L) COMMUNITY SCHOOLS YOUTH SERV12 ICES AND SUPERVISION GRANT PROGRAM.—The

13 definition of public school in section 30401(b)

14 of the Community Schools Youth Services and

15 Supervision Grant Program Act of 1994 (42

16 U.S.C. 13791(b)) is amended—

17 (i) by striking ‘‘1201’’ each place it

18 appears and inserting ‘‘101’’; and

19 (ii) by striking ‘‘(20 U.S.C. 1141(i))’’.

20 (M) POLICE CORPS.—The definition of in21 stitution of higher education in section 200103

22 of the Police Corps Act (42 U.S.C. 14092) is

23 amended—

24 (i) by striking ‘‘1201(a)’’ and insert25 ing ‘‘101(a)’’; and
25

•S 1882 IS

1 (ii) by striking ‘‘(20 U.S.C.

2 1141(a))’’.

3 (N) LAW ENFORCEMENT SCHOLARSHIP

4 PROGRAM.—The definition of institution of

5 higher education in section 200202 of the Law

6 Enforcement Scholarship and Recruitment Act

7 (42 U.S.C. 14111) is amended—

8 (i) by striking ‘‘1201(a)’’ and insert9 ing ‘‘101(a)’’; and

10 (ii) by striking ‘‘(20 U.S.C.

11 1141(a))’’.

12 (14) T ELECOMMUNICATIONS.—Section

13 223(h)(4) of the Telecommunications Act of 1934

14 (47 U.S.C. 223(h)(4)) is amended—

15 (A) by striking ‘‘1201’’ and inserting

16 ‘‘101’’; and

17 (B) by striking ‘‘(20 U.S.C. 1141)’’.

18 (15) WAR AND NATIONAL DEFENSE.—Section

19 808(3) of the David L. Boren National Security

20 Education Act of 1991 (50 U.S.C. 1908(3)) is

21 amended—

22 (A) by striking ‘‘1201(a)’’ and inserting

23 ‘‘101(a)’’; and

24 (B) by striking ‘‘(20 U.S.C. 1141(a))’’.
26

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1 (b) CROSS REFERENCES.—The Act (20 U.S.C. 1001

2 et seq.) is amended—

3 (1) in section 402A(c)(2) (20 U.S.C. 1070a–

4 11(c)(2)), by striking ‘‘1210’’ and inserting ‘‘110’’;

5 (2) in section 481 (20 U.S.C. 1088)—

6 (A) in subsection (a)—

7 (i) in paragraph (1)—

8 (I) in the matter preceding sub9 paragraph (A), by striking ‘‘1201(a)’’

10 and inserting ‘‘101(a)’’; and

11 (II) in subparagraph (C), by

12 striking ‘‘1201(a)’’ and inserting

13 ‘‘101(a)’’; and

14 (ii) in paragraph (2)—

15 (I) in the matter preceding clause

16 (i) of subparagraph (A), by striking

17 ‘‘1201(a)’’ and inserting ‘‘101(a)’’;

18 and

19 (II) in the matter following

20 clause (ii) of subparagraph (B), by

21 striking ‘‘1201(a)’’ and inserting

22 ‘‘101(a)’’;

23 (B) in subsection (b), by striking

24 ‘‘1201(a)’’ each place the term appears and in25 serting ‘‘101(a)’’; and
27

•S 1882 IS

1 (C) in subsection (c), by striking

2 ‘‘1201(a)’’ each place the term appears and in3 serting ‘‘101(a)’’;

4 (3) in section 485(f)(1)(I) (20 U.S.C.

5 1092(f)(1)(I)), by striking ‘‘1213’’ and inserting

6 ‘‘111’’;

7 (4) in section 498(j)(2) (20 U.S.C.

8 1099c(j)(2)), by striking ‘‘1201(a)(2)’’ and inserting

9 ‘‘101(a)(2)’’;

10 (5) in section 591(d)(2) (20 U.S.C.

11 1115(d)(2)), by striking ‘‘1201(a)’’ and inserting

12 ‘‘101(a)’’;

13 (6) in section 631(a)(8) (20 U.S.C.

14 1132(a)(8))—

15 (A) by striking ‘‘section 1201(a)’’ each

16 place the term appears and inserting ‘‘section

17 101(a)’’; and

18 (B) by striking ‘‘of 1201(a)’’ and inserting

19 ‘‘of section 101(a)’’; and

20 (7) in section 1081(d) (20 U.S.C. 1135f(d)), by

21 striking ‘‘1201’’ and inserting ‘‘101(a)’’.
28

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1 TITLE II—IMPROVING TEACHER

2 QUALITY

3 SEC. 201. IMPROVING TEACHER QUALITY.

4 The Act (20 U.S.C. 1001) is amended by inserting

5 after section 112 (as added by section 104) the following:

6 ‘‘TITLE II—IMPROVING TEACHER

7 QUALITY

8 ‘‘SEC. 201. PURPOSES.

9 ‘‘The purpose of this title is to—

10 ‘‘(1) improve student achievement;

11 ‘‘(2) improve the quality of the current and fu12 ture teaching force by improving the preparation of

13 prospective teachers and enhancing professional de14 velopment activities; and

15 ‘‘(3) hold institutions of higher education ac16 countable for preparing teachers who have the nec17 essary teaching skills and are highly competent in

18 the academic content areas in which the teachers

19 plan to teach, including training in the effective uses

20 of technologies in the classroom.

21 ‘‘PART A—TEACHER QUALITY

22 ‘‘Subpart 1—Teacher Quality Enhancement Grants

23 ‘‘SEC. 211. GRANTS AUTHORIZED.

24 ‘‘(a) IN GENERAL.—The Secretary is authorized to

25 award grants to States to enable the States to carry out
29

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1 the activities described in section 212. Each grant may

2 be awarded for a period of not more than 5 years.

3 ‘‘(b) STATE DESIGNATION.—

4 ‘‘(1) IN GENERAL.—A State desiring a grant

5 under this subpart shall, consistent with State law,

6 designate the chief individual or entity in the State

7 responsible for the State supervision of education, to

8 administer the activities assisted under this subpart.

9 ‘‘(2) CONSULTATION.—The individual or entity

10 designated under paragraph (1) shall consult with

11 the Governor, State board of education, or State

12 educational agency, as appropriate.

13 ‘‘(3) CONSTRUCTION.—Nothing in this subpart

14 shall be construed to negate or supersede the legal

15 authority under State law of any State agency, State

16 entity, or State public official over programs that

17 are under the jurisdiction of the agency, entity, or

18 official.

19 ‘‘(c) MATCHING REQUIREMENT.—Each State receiv20 ing a grant under this subpart shall provide, from nonFederal sources, an amount equal to 1 21 ⁄2 of the amount

22 of the grant, in cash or in kind, to carry out the activities

23 supported through the grant.
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1 ‘‘SEC. 212. USE OF FUNDS.

2 ‘‘A State that receives a grant under this subpart

3 shall use the grant funds to reform teacher preparation

4 requirements, and to ensure that current and future

5 teachers possess the necessary teaching skills and aca6 demic content knowledge in the subject areas in which the

7 teachers are assigned to teach, by carrying out 1 or more

8 of the following activities:

9 ‘‘(1) REFORMS.—Implementing reforms that

10 hold institutions of higher education with teacher

11 preparation programs accountable for preparing

12 teachers who are highly competent in the academic

13 content areas in which the teachers plan to teach,

14 which may include the use of rigorous subject matter

15 competency tests and the requirement that a teacher

16 have an academic major in the subject area, or relat17 ed discipline, in which the teacher plans to teach.

18 ‘‘(2) CERTIFICATION OR LICENSURE REQUIRE19 MENTS.—Reforming teacher certification or licen20 sure requirements to ensure that new teachers have

21 the necessary teaching skills and academic content

22 knowledge in the subject areas in which teachers are

23 assigned to teach.

24 ‘‘(3) ALTERNATIVES TO TRADITIONAL PREPA25 RATION FOR TEACHING.—Providing prospective

26 teachers alternatives to traditional preparation for
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1 teaching through programs at colleges of arts and

2 sciences or at nonprofit organizations.

3 ‘‘(4) ALTERNATIVE ROUTES.—Funding pro4 grams that establish, expand, or improve alternative

5 routes to State certification for highly qualified indi6 viduals from other occupations and recent college

7 graduates with records of academic distinction, in8 cluding support during the initial teaching experi9 ence.

10 ‘‘(5) RECRUITMENT; PAY; REMOVAL.—Develop11 ing and implementing effective mechanisms to en12 sure that schools are able to effectively recruit highly

13 qualified teachers, to financially reward those teach14 ers and principals whose students have made signifi15 cant progress toward high academic performance,

16 such as through performance-based compensation

17 systems and access to ongoing professional develop18 ment opportunities for teachers and administrators,

19 and to remove teachers who are not qualified.

20 ‘‘(6) INNOVATIVE EFFORTS.—Development and

21 implementation of innovative efforts aimed at reduc22 ing the shortage of highly qualified teachers in high

23 poverty urban and rural areas, that may include the

24 recruitment of highly qualified individuals from
32

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1 other occupations through alternative certification

2 programs.

3 ‘‘(7) SOCIAL PROMOTION.—Development and

4 implementation of efforts to address the problem of

5 social promotion and to prepare teachers to effec6 tively address the issues raised by ending the prac7 tice of social promotion.

8 ‘‘SEC. 213. COMPETITIVE AWARDS.

9 ‘‘(a) ANNUAL AWARDS; COMPETITIVE BASIS.—The

10 Secretary shall award grants under this subpart annually

11 and on a competitive basis.

12 ‘‘(b) PEER REVIEW PANEL.—The Secretary shall

13 provide the applications submitted by States under section

14 214 to a peer review panel for evaluation. With respect

15 to each application, the peer review panel shall initially

16 recommend the application for funding or for disapproval.

17 ‘‘(c) PRIORITY.—In recommending applications for

18 funding to the Secretary, the panel shall give priority to

19 applications from States that describe activities that—

20 ‘‘(1) include innovative reforms to hold institu21 tions of higher education with teacher preparation

22 programs accountable for preparing teachers who

23 are highly competent in the academic content areas

24 in which the teachers plan to teach; and
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1 ‘‘(2) involve the development of innovative ef2 forts aimed at reducing the shortage of highly quali3 fied teachers in high poverty urban and rural areas.

4 ‘‘SEC. 214. APPLICATIONS.

5 ‘‘(a) IN GENERAL.—Each State desiring a grant

6 under this subpart shall submit an application to the Sec7 retary at such time, in such manner and accompanied by

8 such information as the Secretary may require.

9 ‘‘(b) CONTENT OF APPLICATIONS.—Such application

10 shall include a description of how the State intends to use

11 funds provided under this subpart.

12 ‘‘Subpart 2—Teacher Training Partnerships Grants

13 ‘‘SEC. 221. GRANTS AUTHORIZED.

14 ‘‘(a) IN GENERAL.—The Secretary is authorized to

15 award grants to teacher training partnerships to enable

16 the partnerships to carry out the activities described in

17 section 222. Each grant may be awarded for a period of

18 not more than 5 years.

19 ‘‘(b) TEACHER TRAINING PARTNERSHIPS.—For the

20 purpose of this part the term ‘teacher training partner21 ship’ means a partnership that—

22 ‘‘(1) shall include a school of arts and sciences,

23 a school or program of education, a local educational

24 agency, and a kindergarten through grade 12 school;

25 and
34

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1 ‘‘(2) may include a State educational agency, a

2 pre-kindergarten program, a nonprofit group, a busi3 ness, or a teacher organization.

4 ‘‘(c) PRIORITY.—

5 ‘‘(1) IN GENERAL.—In awarding grants under

6 this subpart the Secretary shall give priority to part7 nerships that—

8 ‘‘(A) involve businesses; or

9 ‘‘(B) include a high need local educational

10 agency, elementary school or secondary school.

11 ‘‘(2) HIGH NEED.—A local educational agency,

12 elementary school or secondary school shall be con13 sidered high need for purposes of paragraph (1)(B)

14 if the agency or school serves an area within a State

15 in which there is—

16 ‘‘(A) a large number of individuals from

17 families with incomes below the poverty line;

18 ‘‘(B) a high percentage of teachers not

19 teaching in the content area in which the teach20 ers were trained to teach; or

21 ‘‘(C) a high teacher turnover.

22 ‘‘(d) CONSIDERATION.—In awarding grants under

23 this subpart the Secretary will take into consideration—

24 ‘‘(1) providing an equitable geographic distribu25 tion of the grants throughout the United States; and
35

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1 ‘‘(2) the proposed project’s potential for creat2 ing improvement and positive change.

3 ‘‘(e) MATCHING FUNDS.—Each partnership receiving

4 a grant under this subpart shall provide, from sources

5 other than this subpart, an amount equal to 25 percent

6 of the grant in the first year, 35 percent in the second

7 such year, and 50 percent in each succeeding such year,

8 of the amount of the grant, in cash or in kind, to carry

9 out the activities supported by the grant.

10 ‘‘(f) ONE-TIME AWARD.—A partnership may receive

11 a grant under this section only once.

12 ‘‘SEC. 222. USE OF FUNDS.

13 ‘‘(a) IN GENERAL.—Grant funds under this part

14 shall be used to—

15 ‘‘(1) coordinate with the activities of the Gov16 ernor, State board of education, and State edu17 cational agency, as appropriate;

18 ‘‘(2) provide sustained and high quality

19 preservice clinical experiences including the mentor20 ing of prospective teachers by veteran teachers;

21 ‘‘(3) work with a school of arts and sciences to

22 provide increased academic study in a proposed

23 teaching specialty area, through activities such as—

24 ‘‘(A) restructuring curriculum;

25 ‘‘(B) changing core course requirements;
36

•S 1882 IS

1 ‘‘(C) increasing liberal arts focus;

2 ‘‘(D) providing preparation for board cer3 tification; and

4 ‘‘(E) assessing and improving alternative

5 certification, including mentoring and induction

6 support;

7 ‘‘(4) substantially increasing interaction and 2-

8 way collaboration between—

9 ‘‘(A) faculty at institutions of higher edu10 cation; and

11 ‘‘(B) new and experienced teachers, prin12 cipals, and other administrators at elementary

13 schools or secondary schools;

14 ‘‘(5) prepare teachers to use technology effec15 tively in the classroom;

16 ‘‘(6) integrate reliable research-based teaching

17 methods into the curriculum;

18 ‘‘(7) broadly disseminate information on effec19 tive practices used by the partnership; and

20 ‘‘(8) provide support, including preparation

21 time, for interaction between faculty at an institu22 tion of higher education and classroom teachers.

23 ‘‘(b) SPECIAL RULE.—No individual member of a

24 partnership shall retain more than 50 percent of the funds

25 made available to the partnership under this subpart.
37

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1 ‘‘SEC. 223. APPLICATIONS.

2 ‘‘Each teacher training partnership desiring a grant

3 under this subpart shall submit an application to the Sec4 retary at such time, in such manner, and accompanied by

5 such information as the Secretary may require. Each such

6 application shall—

7 ‘‘(1) describe the composition of the partnership

8 and the involvement of each partner in the develop9 ment of the application;

10 ‘‘(2) contain a needs assessment that includes

11 an analysis of the needs of all the partners with re12 spect to teaching and learning;

13 ‘‘(3) contain a resource assessment that in14 cludes—

15 ‘‘(A) an analysis of resources available to

16 the partnership;

17 ‘‘(B) a description of the intended use of

18 the grant funds;

19 ‘‘(C) a description of how the partnership

20 will coordinate with other teacher training or

21 professional development programs, including

22 Federal, State, local, private, and other pro23 grams;

24 ‘‘(D) a description of how the activities as25 sisted under this subpart are consistent with
38

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1 educational reform activities that promote stu2 dent achievement; and

3 ‘‘(E) a description of the commitment of

4 the resources of the partnership to the activities

5 assisted under this subpart, including financial

6 support, faculty participation, and time commit7 ments;

8 ‘‘(4) describe how the partnership will include

9 the participation of the schools, colleges, or depart10 ments of arts and sciences within an institution of

11 higher education to ensure the integration of teach12 ing techniques and content in teaching preparation;

13 ‘‘(5) describe how the partnership will restruc14 ture and improve teaching, teacher training, and de15 velopment programs, and how such systemic changes

16 will contribute to increased student achievement;

17 ‘‘(6) describe how the partnership will prepare

18 teachers to work with diverse student populations,

19 including individuals with disabilities and limited

20 English proficient individuals;

21 ‘‘(7) describe how the partnership will prepare

22 teachers to use technology;

23 ‘‘(8) contain a dissemination plan regarding

24 knowledge and information with respect to effective

25 teaching practices, and a description of how such
39

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1 knowledge and information will be implemented in

2 elementary schools or secondary schools as well as

3 institutions of higher education;

4 ‘‘(9) describe the commitment of the partner5 ship to continue the activities assisted under this

6 subpart without grant funds provided under this

7 subpart; and

8 ‘‘(10) describe how the partnership will involve

9 and include parents in the reform process.

10 ‘‘Subpart 3—General Provisions

11 ‘‘SEC. 231. ACCOUNTABILITY AND EVALUATION.

12 ‘‘(a) TEACHER QUALITY ENHANCEMENT GRANTS.—

13 ‘‘(1) ACCOUNTABILITY REPORT.—A State that

14 receives a grant under subpart 1 shall submit an an15 nual accountability report to the Secretary, the Com16 mittee on Labor and Human Resources of the Sen17 ate, and the Committee on Education and the Work18 force of the House of Representatives. Such report

19 shall include a description of the degree to which the

20 State, in using funds provided under subpart 1, has

21 made substantial progress in meeting the following

22 goals:

23 ‘‘(A) STUDENT ACHIEVEMENT.—Increas24 ing student achievement for all students, as

25 measured by increased graduation rates, de-
40

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1 creased dropout rates, or higher scores on local,

2 State or other assessments.

3 ‘‘(B) RAISING STANDARDS.—Raising the

4 State academic standards required to enter the

5 teaching profession, including, where appro6 priate, incentives to incorporate the requirement

7 of an academic major in the subject, or related

8 discipline, in which the teacher plans to teach.

9 ‘‘(C) INITIAL CERTIFICATION OR LICEN10 SURE.—Increasing success in the passage rate

11 for initial State teacher certification or licen12 sure, or increasing numbers of highly qualified

13 individuals being certified or licensed as teach14 ers through alternative programs.

15 ‘‘(D) CORE ACADEMIC SUBJECTS.—In16 creasing the percentage of classes taught in

17 core academic subject areas by teachers highly

18 competent in those subject areas.

19 ‘‘(E) DECREASING SHORTAGES FOR PRO20 FESSIONAL DEVELOPMENT.—Decreasing short21 ages of qualified teachers in poor urban and

22 rural areas.

23 ‘‘(F) INCREASING OPPORTUNITIES.—In24 creasing opportunities for enhanced and ongo25 ing professional development that improves the
41

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1 academic content knowledge of teachers in the

2 subject areas in which the teachers are certified

3 to teach or in which the teachers are working

4 toward certification to teach.

5 ‘‘(G) TECHNOLOGY INTEGRATION.—In6 creasing the number of teachers prepared to in7 tegrate technology in the classroom.

8 ‘‘(2) TEACHER QUALIFICATIONS PROVIDED TO

9 PARENT UPON REQUEST.—Any local educational

10 agency that benefits from the activities assisted

11 under subpart 1 shall make available, upon request

12 and in an understandable and uniform format, to

13 any parent of a student attending any school served

14 by the local educational agency, information regard15 ing the qualifications of the student’s classroom

16 teacher with regard to the subject matter in which

17 the teacher provides instruction. The local edu18 cational agency shall inform parents that the par19 ents are entitled to receive the information upon re20 quest.

21 ‘‘(b) TEACHER TRAINING PARTNERSHIP EVALUA22 TION PLAN.—Each teacher training partnership receiving

23 a grant under subpart 2 shall establish an evaluation plan

24 that includes strong performance objectives established in

25 negotiation with the Secretary at the time of the grant
42

•S 1882 IS

1 award. The plan shall include objectives and measures

2 for—

3 ‘‘(1) increased student achievement for all stu4 dents as measured by increased graduation rates,

5 decreased dropout rates, or higher scores on local,

6 State, or other assessments for a year compared to

7 student achievement as determined by the rates or

8 scores, as the case may be, for the year prior to the

9 year for which a grant under this part is received;

10 ‘‘(2) increased teacher retention in the first 3

11 years of a teacher’s career;

12 ‘‘(3) increased success in the passage rate for

13 initial State certification or licensure of teachers;

14 ‘‘(4) increased number of academic courses

15 taken in core subject areas;

16 ‘‘(5) increased integration of technology in

17 teacher preparation and in classroom instruction;

18 ‘‘(6) restructuring or change of methodology

19 courses to reflect best practices learned from ele20 mentary schools, secondary schools or other entities;

21 ‘‘(7) increased dissemination of information

22 about effective teaching strategies and practices; and

23 ‘‘(8) other effects of increased integration

24 among members of the partnership.
43

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1 ‘‘SEC. 232. REVOCATION OF GRANT.

2 ‘‘Each State or teacher training partnership receiving

3 a grant under this part shall report annually on progress

4 toward meeting the purposes of this part, and the goals,

5 objectives and measures described in section 231. If the

6 Secretary, after consultation with the peer review panel

7 described in section 213(b) determines that the State or

8 partnership is not making substantial progress in meeting

9 the purposes, goals, objectives and measures, as appro10 priate, by the end of the second year of the grant, the

11 grant shall not be continued for the third year of the

12 grant.

13 ‘‘SEC. 233. EVALUATION AND DISSEMINATION.

14 ‘‘The Secretary shall evaluate the activities funded

15 under this part and report the Secretary’s findings to the

16 Committee on Labor and Human Resources of the Senate

17 and the Committee on Education and the Workforce of

18 the House of Representatives. The Secretary shall broadly

19 disseminate successful practices developed by the States

20 and teacher training partnerships under this part, and

21 shall broadly disseminate information regarding such

22 practices so developed that were found to be ineffective.

23 ‘‘SEC. 234. INTERNATIONAL STUDY AND REPORT.

24 ‘‘(a) STUDY.—The Secretary shall conduct a study

25 through the National Center for Education Statistics re26 garding the ways teachers are trained and the extent to
44

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1 which teachers in the United States and other comparable

2 countries are teaching in areas other than the teachers’

3 field of study or expertise. The study will examine specific

4 fields and will outline the nature and extent of the problem

5 of out-of-field teaching in the United States and in other

6 countries that are considered comparable to the United

7 States. The study shall include, at a minimum, all the

8 countries that participated in the Third International

9 Mathematics and Science Study (TIMSS).

10 ‘‘(b) REPORT.—The Secretary shall report to Con11 gress regarding the results of the study described in sub12 section (a).

13 ‘‘SEC. 235. AUTHORIZATION OF APPROPRIATIONS.

14 ‘‘There are authorized to be appropriated to carry out

15 this part $300,000,000 for fiscal year 1999 and such sums

16 as necessary for each of the 4 succeeding fiscal years, of

17 which—

18 ‘‘(1) 50 percent shall be available for each fiscal

19 year to carry out subpart 1; and

20 ‘‘(2) 50 percent shall be available for each fiscal

21 year to carry out subpart 2.

22 ‘‘PART B—RECRUITING NEW TEACHERS FOR

23 UNDERSERVED AREAS

24 ‘‘SEC. 251. STATEMENT OF PURPOSE.

25 ‘‘It is the purpose of this part to—
45

•S 1882 IS

1 ‘‘(1) provide scholarships and, as necessary,

2 support services for students with high potential to

3 become effective teachers, particularly minority stu4 dents;

5 ‘‘(2) increase the quality and number of new

6 teachers nationally; and

7 ‘‘(3) increase the ability of schools in under8 served areas to recruit a qualified teaching staff.

9 ‘‘SEC. 252. DEFINITIONS.

10 ‘‘In this part—

11 ‘‘(1) ELIGIBLE PARTNERSHIP.—

12 ‘‘(A) IN GENERAL.—The term ‘eligible

13 partnership’ means a partnership consisting

14 of—

15 ‘‘(i) an institution of higher education

16 that awards baccalaureate degrees and pre17 pares teachers for their initial entry into

18 the teaching profession; and

19 ‘‘(ii) one or more local educational

20 agencies that serve underserved areas.

21 ‘‘(B) ADDITIONAL PARTNERS.—Such a

22 partnership may also include—

23 ‘‘(i) 2-year institutions of higher edu24 cation that operate teacher preparation

25 programs and maintain articulation agree-
46

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1 ments, with the institutions of higher edu2 cation that award baccalaureate degrees

3 for the transfer of credits in teacher prepa4 ration;

5 ‘‘(ii) State agencies that have respon6 sibility for policies related to teacher prep7 aration and teacher certification or licen8 sure; and

9 ‘‘(iii) other public and private, non10 profit agencies and organizations that

11 serve, or are located in, communities

12 served by the local educational agencies in

13 the partnership, and that have an interest

14 in teacher recruitment, preparation, and

15 induction.

16 ‘‘(2) SUPPORT SERVICES.—The term ‘support

17 services’ means—

18 ‘‘(A) academic advice and counseling;

19 ‘‘(B) tutorial services;

20 ‘‘(C) mentoring; and

21 ‘‘(D) child care and transportation, if

22 funding for those services cannot be arranged

23 from other sources.

24 ‘‘(3) UNDERSERVED AREA.—The term ‘under25 served area’ means—
47

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1 ‘‘(A) the area served by the 3 local edu2 cational agencies in the State that have the

3 highest numbers of children, ages 5 through 17,

4 from families below the poverty level (based on

5 data satisfactory to the Secretary); and

6 ‘‘(B) the area served by any other local

7 educational agency in which the percentage of

8 such children is at least 20 percent, or the

9 number of such children is at least 10,000.

10 ‘‘SEC. 253. GRANT AUTHORITY AND CONDITIONS.

11 ‘‘(a) GRANTS AUTHORIZED.—

12 ‘‘(1) GRANTS.—

13 ‘‘(A) IN GENERAL.—From amounts appro14 priated under section 262 the Secretary shall

15 award grants, on a competitive basis, to eligible

16 partnerships to enable the eligible partnerships

17 to pay the Federal share of the cost of carrying

18 out the activities described in section 255.

19 ‘‘(B) DURATION.—Each grant awarded

20 under subparagraph (A) shall be awarded for a

21 period not to exceed 5 years.

22 ‘‘(2) CONTINUING ELIGIBILITY; REVIEW OF

23 PROGRESS.—The Secretary shall—

24 ‘‘(A) continue to make grant payments for

25 the second and succeeding years of a grant
48

•S 1882 IS

1 awarded under this part, only after determining

2 that the eligible partnership is making satisfac3 tory progress in carrying out the activities

4 under the grant; and

5 ‘‘(B) conduct an intensive review of the eli6 gible partnerships’s progress under the grant,

7 with the assistance of outside experts, before

8 making grant payments for the fourth year of

9 the grant.

10 ‘‘(3) MAXIMUM NUMBER.—No eligible partner11 ship may receive more than 2 grants under this sub12 section.

13 ‘‘(b) MATCHING REQUIREMENT.—

14 ‘‘(1) FEDERAL SHARE.—The Federal share of

15 the cost of activities carried out under a grant made

16 under subsection (a) shall not exceed—

17 ‘‘(A) 70 percent of the cost in the first

18 year of the grant;

19 ‘‘(B) 60 percent in the second year;

20 ‘‘(C) 60 percent in the third year;

21 ‘‘(D) 50 percent in the fourth year; and

22 ‘‘(E) 50 percent in the fifth year and any

23 succeeding year (including each year of the sec24 ond grant, if any).
49

•S 1882 IS

1 ‘‘(2) NON-FEDERAL SHARE.—The non-Federal

2 share of activities carried out with a grant under

3 subsection (a) may be provided in cash or in kind,

4 fairly evaluated, and may be obtained from any non5 Federal public or private source.

6 ‘‘(c) PLANNING GRANTS.—

7 ‘‘(1) IN GENERAL.—The Secretary may award

8 planning grants to eligible partnerships that are not

9 ready to implement programs under subsection (a).

10 ‘‘(2) DURATION.—Each planning grant shall be

11 for a period of not more than 1 year, which shall be

12 in addition to the period of any grant under sub13 section (a).

14 ‘‘(3) REQUIREMENT.—Any recipient of a plan15 ning grant under this subsection that wishes to re16 ceive a grant under subsection (a)(1) shall sepa17 rately apply for a grant under that subsection.

18 ‘‘SEC. 254. GRANT APPLICATIONS.

19 ‘‘(a) APPLICATIONS REQUIRED.—Any eligible part20 nership desiring to receive a grant under this part shall

21 submit an application to the Secretary at such time, in

22 such form, and containing such information as the Sec23 retary may require.

24 ‘‘(b) APPLICATION CONTENTS.—Each application for

25 a grant under section 253(a) shall include—
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1 ‘‘(1) a designation of the institution or agency,

2 within the eligible partnership, that will serve as the

3 fiscal agent for the grant;

4 ‘‘(2) information on the quality of the teacher

5 preparation program of the institution of higher edu6 cation participating in the eligible partnership and

7 how the eligible partnership will ensure, through im8 provements in the eligible partnership’s teacher

9 preparation practices or other appropriate strategies,

10 that scholarship recipients will receive high-quality

11 preparation;

12 ‘‘(3) a description of the assessment the mem13 bers of the eligible partnership have undertaken—

14 ‘‘(A) to determine—

15 ‘‘(i) the most critical needs of the

16 local educational agencies, particularly the

17 needs of schools in high-poverty areas, for

18 new teachers (which may include teachers

19 in particular subject areas or at certain

20 grade levels); and

21 ‘‘(ii) how the project carried out

22 under the grant will address those needs;

23 and

24 ‘‘(B) that reflects the input of all signifi25 cant entities in the community (including orga-
51

•S 1882 IS

1 nizations representing teachers and parents)

2 that have an interest in teacher recruitment,

3 preparation, and induction;

4 ‘‘(4) a description of the project the eligible

5 partnership will carry out with the grant, including

6 information regarding—

7 ‘‘(A) the recruitment and outreach efforts

8 the eligible partnership will undertake to pub9 licize the availability of scholarships and other

10 assistance under the program;

11 ‘‘(B)(i) the number and types of students

12 that the eligible partnership will serve under the

13 program, which may include education para14 professionals seeking to achieve full teacher cer15 tification or licensure; teachers whom the part16 ner local educational agencies have hired under

17 emergency certification or licensure procedures;

18 or former military personnel, mid-career profes19 sionals, or AmeriCorps or Peace Corps volun20 teers, who desire to enter teaching; and

21 ‘‘(ii) the criteria that the eligible partner22 ship will use in selecting the students, including

23 criteria to determine whether individuals have

24 the capacity to benefit from the program, com-
52

•S 1882 IS

1 plete teacher certification requirements, and be2 come effective teachers;

3 ‘‘(C) the activities the eligible partnership

4 will carry out under the grant, including a de5 scription of, and justification for, any support

6 services the institution of higher education par7 ticipating in the eligible partnership will offer to

8 participating students;

9 ‘‘(D) the number and funding range of the

10 scholarships the institution will provide to stu11 dents; and

12 ‘‘(E) the procedures the institution will es13 tablish for entering into, and enforcing, agree14 ments with scholarship recipients regarding the

15 recipients’ fulfillment of the service commitment

16 described in section 259;

17 ‘‘(5) a description of how the institution will

18 use funds provided under the grant only—

19 ‘‘(A) to increase the number of students—

20 ‘‘(i) with high potential to be effective

21 teachers;

22 ‘‘(ii) participating in the institution’s

23 teacher preparation programs; or
53

•S 1882 IS

1 ‘‘(iii) in the particular type or types of

2 preparation programs that the grant will

3 support; or

4 ‘‘(B) to increase the number of graduates,

5 who are minority individuals, with high poten6 tial to be effective teachers;

7 ‘‘(6) a description of the commitments, by the

8 local educational agencies participating in the part9 nership, to hire qualified scholarship recipients in

10 the schools served by the agencies and in the subject

11 areas or grade levels for which the scholarship re12 cipients will be trained, and a description of the ac13 tions the participating institution of higher edu14 cation, the participating local educational agencies,

15 and the other partners will take to facilitate the suc16 cessful transition of the recipients into teaching; and

17 ‘‘(7) a description of the eligible partnership’s

18 plan for institutionalizing the activities the partner19 ship is carrying out under this part, so that the ac20 tivities will continue once Federal funding ceases.

21 ‘‘SEC. 255. USES OF FUNDS.

22 ‘‘(a) IN GENERAL.—Each eligible partnership receiv23 ing a grant under section 523(a) shall use the grant funds

24 for the following:
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•S 1882 IS

1 ‘‘(1) SCHOLARSHIPS.—Scholarships to help stu2 dents pay the costs of tuition, room, board, and

3 other expenses of completing a teacher preparation

4 program.

5 ‘‘(2) SUPPORT SERVICES.—Support services, if

6 needed to enable scholarship recipients to complete

7 postsecondary education programs.

8 ‘‘(3) FOLLOWUP SERVICES.—Followup services

9 provided to former scholarship recipients during the

10 recipients’ first 3 years of teaching.

11 ‘‘(4) PAYMENTS.—Payments to partner local

12 educational agencies, if needed to enable the agen13 cies to permit paraprofessional staff to participate in

14 teacher preparation programs (such as the cost of

15 release time for the staff).

16 ‘‘(5) ADDITIONAL COURSES.—If appropriate,

17 and if no other funds are available for, paying the

18 costs of additional courses taken by former scholar19 ship recipients during the recipients’ initial 3 years

20 of teaching.

21 ‘‘(b) PLANNING GRANTS.—A recipient of a planning

22 grant under section 253(c) shall use the grant funds for

23 the costs of planning for the implementation of a grant

24 under section 253(a).
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1 ‘‘SEC. 256. SELECTION OF APPLICANTS.

2 ‘‘(a) PEER REVIEW.—The Secretary, using a peer re3 view process, shall select eligible partnerships to receive

4 funding under this part on the basis of—

5 ‘‘(1) the quality of the teacher preparation pro6 gram offered by the institution participating in the

7 partnership;

8 ‘‘(2) the quality of the program carried out

9 under the application; and

10 ‘‘(3) the capacity of the partnership to carry

11 out the grant successfully.

12 ‘‘(b) CRITERIA.—

13 ‘‘(1) IN GENERAL.—In awarding grants under

14 section 253(a), the Secretary shall seek to ensure

15 that—

16 ‘‘(A) in the aggregate, eligible partnerships

17 carry out a variety of approaches to preparing

18 new teachers; and

19 ‘‘(B) there is an equitable geographic dis20 tribution of the grants.

21 ‘‘(2) SPECIAL CONSIDERATION.—In addition to

22 complying with paragraph (1), the Secretary shall

23 give special consideration to—

24 ‘‘(A) applications most likely to result in

25 the preparation of increased numbers of individ-
56

•S 1882 IS

1 uals with high potential for effective teaching

2 who are minority individuals; and

3 ‘‘(B) applications from partnerships that

4 have as members of the partnerships histori5 cally Black colleges and universities, Hispanic6 serving institutions, and Tribal Colleges and

7 Universities.

8 ‘‘(c) SECOND FIVE-YEAR GRANTS.—In selecting eli9 gible partnerships to receive second year grant payments

10 under this part, the Secretary shall give a preference to

11 eligible partnerships whose projects have resulted in—

12 ‘‘(1) the placement and retention of a substan13 tial number of high-quality graduates in teaching po14 sitions in underserved, high-poverty schools;

15 ‘‘(2) the adoption of effective programs that

16 meet the teacher preparation needs of high-poverty

17 urban and rural areas; and

18 ‘‘(3) effective partnerships with elementary

19 schools and secondary schools that are supporting

20 improvements in student achievement.

21 ‘‘SEC. 257. DURATION AND AMOUNT OF ASSISTANCE; RELA22 TION TO OTHER ASSISTANCE.

23 ‘‘(a) DURATION OF ASSISTANCE.—No individual may

24 receive scholarship assistance under this part—
57

•S 1882 IS

1 ‘‘(1) for more than 5 years of postsecondary

2 education; and

3 ‘‘(2) unless that individual satisfies the require4 ments of section 484(a)(5).

5 ‘‘(b) AMOUNT OF ASSISTANCE.—No individual may

6 receive a scholarship awarded under this part that exceeds

7 the cost of attendance, as defined in section 472, at the

8 institution of higher education the individual is attending.

9 ‘‘(c) RELATION TO OTHER ASSISTANCE.—A scholar10 ship awarded under this part—

11 ‘‘(1) shall not be reduced on the basis of the in12 dividual’s receipt of other forms of Federal student

13 financial assistance; and

14 ‘‘(2) shall be regarded as other financial assist15 ance available to the student, within the meaning of

16 sections 471(3) and 480(j)(1), in determining the

17 student’s eligibility for grant, loan, or work assist18 ance under title IV.

19 ‘‘SEC. 258. SCHOLARSHIP CONDITIONS.

20 ‘‘(a) IN GENERAL.—A recipient of a scholarship

21 under this part shall continue to receive the scholarship

22 assistance only as long as the recipient is—

23 ‘‘(1) enrolled as a full-time student and pursu24 ing a course of study leading to teacher certification,

25 unless the recipient is working in a public school (as
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•S 1882 IS

1 a paraprofessional, or as a teacher under emergency

2 credentials) while participating in the program; and

3 ‘‘(2) maintaining satisfactory progress as deter4 mined by the institution of higher education partici5 pating in the partnership.

6 ‘‘(b) SPECIAL RULE.—Each eligible partnership shall

7 modify the application of section 257(a)(1) and of sub8 section (a)(1) to the extent necessary to accommodate the

9 rights of individuals with disabilities under section 504 of

10 the Rehabilitation Act of 1973.

11 ‘‘SEC. 259. SERVICE REQUIREMENTS.

12 ‘‘(a) REQUIREMENT.—Each eligible partnership re13 ceiving a grant under this part shall enter into an agree14 ment, with each student to whom the partnership awards

15 a scholarship under this part, providing that a scholarship

16 recipient who completes a teacher preparation program

17 under this part shall, within 7 years of completing that

18 program, teach full-time for at least 5 years in a high19 poverty school in an underserved geographic area or repay

20 the amount of the scholarship, under the terms and condi21 tions established by the Secretary.

22 ‘‘(b) REGULATIONS.—The Secretary shall prescribe

23 regulations relating to the requirements of subsection (a),

24 including any provisions for waiver of those requirements.
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1 ‘‘SEC. 260. EVALUATION.

2 ‘‘The Secretary shall provide for an evaluation of the

3 program carried out under this part, which shall asses

4 such issues as—

5 ‘‘(1) whether institutions participating in the el6 igible partnerships are successful in preparing schol7 arship recipients to teach to high State and local

8 standards;

9 ‘‘(2) whether scholarship recipients are success10 ful in completing teacher preparation programs, be11 coming fully certified teachers, and obtaining teach12 ing positions in underserved areas, and whether the

13 recipients continue teaching in those areas over a pe14 riod of years;

15 ‘‘(3) the national impact of the program in as16 sisting local educational agencies in underserved

17 areas to recruit, prepare, and retain diverse, high18 quality teachers in the areas in which the agencies

19 have the greatest needs;

20 ‘‘(4) the long-term impact of the grants on

21 teacher preparation programs conducted by institu22 tions of higher education participating in the eligible

23 partnership and on the institutions’ relationships

24 with their partner local educational agencies and

25 other members of the partnership; and
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•S 1882 IS

1 ‘‘(5) the relative effectiveness of different ap2 proaches for preparing new teachers to teach in un3 derserved areas, including their effectiveness in pre4 paring new teachers to teach to high content and

5 performance standards.

6 ‘‘SEC. 261. NATIONAL ACTIVITIES.

7 ‘‘The Secretary may reserve not more than 5 percent

8 of the funds appropriated for this part for any fiscal year

9 for—

10 ‘‘(1) peer review of applications;

11 ‘‘(2) conducting the evaluation required under

12 section 260; and

13 ‘‘(3) technical assistance.

14 ‘‘SEC. 262. AUTHORIZATION OF APPROPRIATIONS.

15 ‘‘There are authorized to be appropriated to carry out

16 this part $37,000,000 for fiscal year 1999 and such sums

17 as may be necessary for each of the 4 succeeding fiscal

18 years.’’.

19 TITLE III—INSTITUTIONAL AID

20 SEC. 301. TRANSFERS AND REDESIGNATIONS.

21 (a) IN GENERAL.—Title III (20 U.S.C. 1051 et seq.)

22 is amended—

23 (1) by redesignating part D as part F;

24 (2) by redesignating sections 351, 352, 353,

25 354, 356, 357, 358, and 360 (20 U.S.C. 1066,
61

•S 1882 IS

1 1067, 1068, 1069, 1069b, 1069c, 1069d, and 1069f)

2 as sections 391, 392, 393, 394, 395, 396, 397, and

3 398, respectively;

4 (3) by transferring part B of title VII (20

5 U.S.C. 1132c et seq.) to title III to follow part C of

6 title III (20 U.S.C. 1065 et seq.), and redesignating

7 such part B as part D;

8 (4) by redesignating sections 721 through 728

9 (20 U.S.C. 1132c and 1132c–7) as sections 341

10 through 348, respectively;

11 (5) by transferring subparts 1 and 3 of part B

12 of title X (20 U.S.C. 1135b et seq. and 1135d et

13 seq.) to title III to follow part D of title III (as re14 designated by paragraph (3)), and redesignating

15 such subpart 3 as subpart 2;

16 (6) by inserting after part D of title III (as re17 designated by paragraph (3)) the following:

18 ‘‘PART E—MINORITY SCIENCE IMPROVEMENT

19 PROGRAM’’;

20 (7) by redesignating sections 1021 through

21 1024 (20 U.S.C. 1135b and 1135b–3), and sections

22 1041, 1042, 1043, 1044, 1046, and 1047 (20

23 U.S.C. 1135d, 1135d–1, 1135d–2, 1135d–3, 1135d–

24 5, and 1135d–6) as sections 351 through 354, and
62

•S 1882 IS

1 sections 361, 362, 363, 364, 365, and 366, respec2 tively; and

3 (8) by repealing section 366 (as redesignated by

4 paragraph (7)) (20 U.S.C. 1135d–6).

5 (b) CONFORMING AMENDMENT.—Section 361 (as re6 designated by subsection (a)(7)) (20 U.S.C. 1135d) is

7 amended—

8 (1) in paragraph (1), by inserting ‘‘and’’ after

9 the semicolon;

10 (2) in paragraph (2), by striking ‘‘; and’’ and

11 inserting a period; and

12 (3) by striking paragraph (3).

13 (c) CROSS REFERENCES.—Title III (20 U.S.C. 1051

14 et seq.) is amended—

15 (1) in section 311(b) (20 U.S.C. 1057(b)), by

16 striking ‘‘360(a)(1)’’ and inserting ‘‘398(a)(1)’’;

17 (2) in section 312 (20 U.S.C. 1058)—

18 (A) in subsection (b)(1)(B), by striking

19 ‘‘352(b)’’ and inserting ‘‘392(b)’’; and

20 (B) in subsection (c)(2), by striking

21 ‘‘352(a)’’ and inserting ‘‘392(a)’’;

22 (3) in section 313(b) (20 U.S.C. 1059(b)), by

23 striking ‘‘354(a)(1)’’ and inserting ‘‘394(a)(1)’’;

24 (4) in section 342 (as redesignated by sub25 section (a)(4)) (20 U.S.C. 1132c–1)—
63

•S 1882 IS

1 (A) in paragraph (3), by striking ‘‘723(b)’’

2 and inserting ‘‘343(b)’’;

3 (B) in paragraph (4), by striking ‘‘723’’

4 and inserting ‘‘343’’;

5 (C) in the matter preceding subparagraph

6 (A) of paragraph (5), by striking ‘‘724(b)’’ and

7 inserting ‘‘344(b)’’;

8 (D) in paragraph (8), by striking ‘‘725(1)’’

9 and inserting ‘‘345(1)’’; and

10 (E) in paragraph (9), by striking ‘‘727’’

11 and inserting ‘‘347’’;

12 (5) in section 343 (as redesignated by sub13 section (a)(4)) (20 U.S.C. 1132c–2)—

14 (A) in subsection (a), by striking ‘‘724’’

15 and inserting ‘‘344’’; and

16 (B) in subsection (b)—

17 (i) in the matter preceding paragraph

18 (1), by striking ‘‘725(1) and 726’’ and in19 serting ‘‘345(1) and 346’’;

20 (ii) in paragraph (10), by striking

21 ‘‘724’’ and inserting ‘‘344’’; and

22 (iii) in subsection (d), by striking

23 ‘‘723(c)(1)’’ and inserting ‘‘343(c)(1)’’;
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1 (6) in section 345(2) (as redesignated by sub2 section (a)(4)) (20 U.S.C. 1132c–4(2)), by striking

3 ‘‘723’’ and inserting ‘‘343’’;

4 (7) in section 348 (as redesignated by sub5 section (a)(4)) (20 U.S.C. 1132c–7), by striking

6 ‘‘725(1)’’ and inserting ‘‘345(1)’’;

7 (8) in section 353(a) (as redesignated by sub8 section (a)(7)) (20 U.S.C. 1135b–2(a))—

9 (A) in paragraph (1), by striking

10 ‘‘1046(6)’’ and inserting ‘‘365(6)’’;

11 (B) in paragraph (2), by striking

12 ‘‘1046(7)’’ and inserting ‘‘365(7)’’;

13 (C) in paragraph (3), by striking

14 ‘‘1046(8)’’ and inserting ‘‘365(8)’’; and

15 (D) in paragraph (4), by striking

16 ‘‘1046(9)’’ and inserting ‘‘365(9)’’;

17 (9) in section 361(1) (as redesignated by sub18 section (a)(7)) (20 U.S.C. 1135d(1)), by striking

19 ‘‘1046(3)’’ and inserting ‘‘365(3)’’;

20 (10) in section 362(a) (as redesignated by sub21 section (a)(7)) (20 U.S.C. 1135d–1(a))—

22 (A) in the matter preceding paragraph (1),

23 by striking ‘‘1041’’ and inserting ‘‘361’’; and

24 (B) in paragraph (1), by striking

25 ‘‘1021(b)’’ and inserting ‘‘351(b)’’; and
65

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1 (11) in section 391(b)(6) (as redesignated by

2 subsection (a)(2)), by striking ‘‘357’’ and inserting

3 ‘‘396’’.

4 SEC. 302. FINDINGS.

5 Section 301(a) (20 U.S.C. 1051(a)) is amended—

6 (1) by redesignating paragraphs (3) through

7 (7) as paragraphs (4) through (8), respectively; and

8 (2) by inserting after paragraph (2) the follow9 ing:

10 ‘‘(3) in order to be competitive and provide a

11 high-quality education for all, institutions of higher

12 education should improve their technological capac13 ity and make effective use of technology;’’.

14 SEC. 303. STRENGTHENING INSTITUTIONS.

15 (a) GRANTS.—Section 311 (20 U.S.C. 1057) is

16 amended—

17 (1) in subsection (b)(3)(D), by inserting ‘‘, in18 cluding high technology equipment,’’ after ‘‘equip19 ment’’; and

20 (2) by adding at the end the following:

21 ‘‘(c) ENDOWMENT FUND.—

22 ‘‘(1) IN GENERAL.—An eligible institution may

23 use not more than 20 percent of the grant funds

24 provided under this part to establish or increase an

25 endowment fund at such institution.
66

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1 ‘‘(2) MATCHING REQUIREMENT.—In order to be

2 eligible to use grant funds in accordance with para3 graph (1), the eligible institution shall provide

4 matching funds, in an amount equal to the Federal

5 funds used in accordance with paragraph (1), for the

6 establishment or increase of the endowment fund.

7 ‘‘(3) COMPARABILITY.—The provisions of part

8 C, regarding the establishment or increase of an en9 dowment fund, that the Secretary determines are

10 not inconsistent with this subsection, shall apply to

11 funds used under paragraph (1).’’.

12 (b) DURATION OF GRANT.—Section 313 (20 U.S.C.

13 1059) is amended by adding at the end the following:

14 ‘‘(d) WAIT-OUT-PERIOD.—Each eligible institution

15 that received a grant under this part for a 5-year period

16 shall not be eligible to receive an additional grant under

17 this part until 2 years after the date on which the 5-year

18 grant period terminates.’’.

19 (c) HISPANIC-SERVING INSTITUTIONS.—Section 316

20 (20 U.S.C. 1059c) is amended—

21 (1) in subsection (b)(1), by amending subpara22 graph (C) to read as follows:

23 ‘‘(C) provides assurances that not less than

24 50 percent of the institution’s Hispanic stu-
67

•S 1882 IS

1 dents are low-income individuals who are first

2 generation college students;’’;

3 (2) in subsection (c), by adding at the end the

4 following:

5 ‘‘(3) ENDOWMENT FUND.—

6 ‘‘(A) IN GENERAL.—A Hispanic-serving in7 stitution may use not more than 20 percent of

8 the grant funds provided under this part to es9 tablish or increase an endowment fund at the

10 institution.

11 ‘‘(B) MATCHING REQUIREMENT.—In order

12 to be eligible to use grant funds in accordance

13 with subparagraph (A), the Hispanic-serving in14 stitution shall provide matching funds, in an

15 amount equal to the Federal funds used in ac16 cordance with paragraph (1), for the establish17 ment or increase of the endowment fund.

18 ‘‘(C) COMPARABILITY.—The provisions of

19 part C regarding the establishment or increase

20 of an endowment fund, that the Secretary de21 termines are not inconsistent with this para22 graph, shall apply to funds used under subpara23 graph (A).’’; and

24 (3) in subsection (d)(3)—
68

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1 (A) by inserting ‘‘or community-based or2 ganization’’ after ‘‘educational agency’’; and

3 (B) by inserting ‘‘or organization’’ after

4 ‘‘such agency’’.

5 SEC. 304. STRENGTHENING HBCU’s.

6 (a) GRANTS.—Section 323 (20 U.S.C. 1062) is

7 amended—

8 (1) by redesignating subsection (b) as sub9 section (c); and

10 (2) by inserting after subsection (a) the follow11 ing:

12 ‘‘(b) ENDOWMENT FUND.—

13 ‘‘(1) IN GENERAL.—An institution may use not

14 more than 20 percent of the grant funds provided

15 under this part to establish or increase an endow16 ment fund at the institution.

17 ‘‘(2) MATCHING REQUIREMENT.—In order to be

18 eligible to use grant funds in accordance with para19 graph (1), the eligible institution shall provide

20 matching funds, in an amount equal to the Federal

21 funds used in accordance with paragraph (1), for the

22 establishment or increase of the endowment fund.

23 ‘‘(3) COMPARABILITY.—The provisions of part

24 C regarding the establishment or increase of an en25 dowment fund, that the Secretary determines are
69

•S 1882 IS

1 not inconsistent with this subsection, shall apply to

2 funds used under paragraph (1).’’.

3 (b) PROFESSIONAL OR GRADUATE INSTITUTIONS.—

4 Section 326 (20 U.S.C. 1063b) is amended—

5 (1) in subsection (a), by adding at the end of

6 paragraph (2) the following: ‘‘If a grant of less than

7 $500,000 is made under this section, matching

8 funds provided from non-Federal sources are not re9 quired. If a grant equal to or in excess of $500,000

10 is made under this section, matching funds provided

11 from non-Federal sources are required only with re12 spect to the amount of the grant that exceeds

13 $500,000.’’; and

14 (2) in subsection (e)(1)—

15 (A) in subparagraph (E), by inserting

16 ‘‘, and any Tuskegee University qualified grad17 uate program’’ before the semicolon;

18 (B) in subparagraph (F), by inserting

19 ‘‘, and any Xavier University qualified graduate

20 program’’ before the semicolon;

21 (C) in subparagraph (G), by inserting

22 ‘‘, and any Southern University qualified grad23 uate program’’ before the semicolon;
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•S 1882 IS

1 (D) in subparagraph (H), by inserting

2 ‘‘, and any Texas Southern University qualified

3 graduate program’’ before the semicolon;

4 (E) in subparagraph (I), by inserting

5 ‘‘, and any Florida A&M University qualified

6 graduate program’’ before the semicolon; and

7 (F) in subparagraph (J), by inserting

8 ‘‘, and any North Carolina Central University

9 qualified graduate program’’ before the semi10 colon.

11 SEC. 305. ENDOWMENT CHALLENGE GRANTS.

12 Paragraph (2) of section 331(b) (20 U.S.C. 1065(b))

13 is amended by striking subparagraphs (B) and (C) and

14 inserting the following:

15 ‘‘(B) The Secretary may make a grant under this

16 part to an eligible institution in any fiscal year in which

17 the amount appropriated to carry out this part is less than

18 $15,000,000, if the institution—

19 ‘‘(i) applies for a grant in an amount not ex20 ceeding $500,000; and

21 ‘‘(ii) has deposited in its endowment fund es22 tablished under this section an amount which is

equal to 1 23 ⁄2 of the amount of such grant.

24 ‘‘(C) An eligible institution of higher education that

25 is awarded a grant under subparagraph (B) shall not be
71

•S 1882 IS

1 eligible to receive an additional grant under subparagraph

2 (B) until 10 years after the date on which the grant period

3 terminates.’’.

4 SEC. 306. HBCU CAPITAL FINANCING.

5 (a) DEFINITION.—Section 342(5) (as redesignated

6 by section 301(a)(4)) (20 U.S.C. 1132c–1(5)) is amend7 ed—

8 (1) by redesignating subparagraphs (B), (C),

9 and (D) as subparagraphs (C), (F), and (G);

10 (2) by inserting after subparagraph (A) the fol11 lowing:

12 ‘‘(B) a facility for the administration of an

13 educational program, or a student center or

14 student union, except that not more than 5 per15 cent of the loan proceeds provided under this

16 part may be used for the facility, center or

17 union if the facility, center or union is owned,

18 leased, managed, or operated by a private busi19 ness, that, in return for such use, makes a pay20 ment to the eligible institution;’’;

21 (3) by inserting after subparagraph (C) (as re22 designated by paragraph (1)) the following:

23 ‘‘(D) a maintenance, storage, or utility fa24 cility that is essential to the operation of a fa25 cility, a library, a dormitory, equipment, instru-
72

•S 1882 IS

1 mentation, a fixture, real property or an inter2 est therein, described in this paragraph;

3 ‘‘(E) a facility designed to provide pri4 marily outpatient health care for students or

5 faculty;’’; and

6 (4) in subparagraph (G) (as redesignated by

7 paragraph (2)), by striking ‘‘(C)’’ and inserting

8 ‘‘(F)’’.

9 (b) FULL FAITH AND CREDIT.—Section 343 (as re10 designated by section 301(a)(4)) (20 U.S.C. 1132c–2) is

11 amended by adding at the end the following:

12 ‘‘(e) Notwithstanding any other provision of law, the

13 Secretary may sell a qualified bond guaranteed under this

14 part to any party that offers terms that the Secretary de15 termines are in the best interest of the eligible institu16 tion.’’.

17 SEC. 307. MINORITY SCIENCE AND ENGINEERING IMPROVE18 MENT PROGRAM.

19 Section 365(4) (as redesignated by section 301(a)(7))

20 (20 U.S.C. 1135d–5(4)) is amended by inserting ‘‘behav21 ioral,’’ after ‘‘physical,’’.

22 SEC. 308. GENERAL PROVISIONS.

23 (a) APPLICATIONS.—Paragraph (1) of section 391(b)

24 (as redesignated by section 301(a)(2)) (20 U.S.C.
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1 1066(b)) is amended by inserting ‘‘, D or E’’ after ‘‘part

2 C’’.

3 (b) APPLICATION REVIEW PROCESS.—Section 393

4 (as redesignated by section 301(a)(2)) (20 U.S.C. 1068)

5 is amended by adding at the end the following:

6 ‘‘(d) EXCLUSION.—The provisions of this section

7 shall not apply to applications submitted under part D.’’.

8 (c) WAIVERS.—Paragraph (2) of section 395(b) (as

9 redesignated by section 301(a)(2)) (20 U.S.C. 1069b(b))

10 is amended by striking ‘‘title II, IV, VII, or VIII’’ and

11 inserting ‘‘part D, title IV, or title VIII’’.

12 (d) AUTHORIZATION OF APPROPRIATIONS.—Section

13 398(a) (as redesignated by section 301(a)(2)) (20 U.S.C.

14 1069f) is amended—

15 (1) in paragraph (1)—

16 (A) in subparagraph (A), by striking

17 ‘‘1993’’ and inserting ‘‘1999’’; and

18 (B) in subparagraph (B)—

19 (i) in clause (i), by striking ‘‘1993’’

20 and inserting ‘‘1999’’;

21 (ii) by striking clause (ii); and

22 (iii) by striking ‘‘(B)(i) There’’ and

23 inserting ‘‘(B) There’’;

24 (2) in paragraph (2)—
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1 (A) in subparagraph (A), by striking

2 ‘‘1993’’ and inserting ‘‘1999’’; and

3 (B) in subparagraph (B), by striking

4 ‘‘$20,000,000 for fiscal year 1993’’ and insert5 ing ‘‘$30,000,000 for fiscal year 1999’’;

6 (3) in paragraph (3), by striking ‘‘$50,000,000

7 for fiscal year 1993’’ and inserting ‘‘$10,000,000 for

8 fiscal year 1999’’; and

9 (4) by adding at the end the following:

10 ‘‘(4) PART D.—There are authorized to be ap11 propriated to carry out part D, $110,000 for fiscal

12 year 1999, and such sums as may be necessary for

13 each of the 4 succeeding fiscal years.

14 ‘‘(5) PART E.—There are authorized to be ap15 propriated to carry out part E, $10,000,000 for fis16 cal year 1999, and such sums as may be necessary

17 for each of the 4 succeeding fiscal years.’’.

18 TITLE IV—STUDENT ASSISTANCE

19 PART A—GRANTS TO STUDENTS IN ATTENDANCE

20 AT INSTITUTIONS OF HIGHER EDUCATION

21 SEC. 411. REPEALS AND REDESIGNATIONS.

22 Title IV (20 U.S.C. 1070 et seq.) is amended—

23 (1) in part A (20 U.S.C. 1070 et seq.)—
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1 (A) in subpart 2 (20 U.S.C. 1070a–11), by

2 repealing chapters 3 through 8 (20 U.S.C.

3 1070a–31 et seq. and 1070a–81 et seq.); and

4 (B) by repealing subpart 8 (20 U.S.C.

5 1070f); and

6 (2) in part H (20 U.S.C. 1099a et seq.)—

7 (A) by repealing subpart 1 (20 U.S.C.

8 1099a et seq.); and

9 (B) by redesignating subparts 2 and 3 (20

10 U.S.C. 1099b et seq. and 1099c et seq.) as sub11 parts 1 and 2, respectively.

12 SEC. 412. FEDERAL PELL GRANTS.

13 (a) AMENDMENT TO SUBPART HEADING.—The head14 ing for subpart 1 of part A of title IV (20 U.S.C. 1070a

15 et seq.) is amended by striking ‘‘Basic Educational

16 Opportunity Grants’’ and inserting ‘‘Federal Pell

17 Grants’’.

18 (b) FEDERAL PELL GRANTS.—Section 401 (20

19 U.S.C. 1070a) is amended—

20 (1) in the section heading, by striking ‘‘BASIC

21 EDUCATIONAL OPPORTUNITY GRANTS’’ and in22 serting ‘‘FEDERAL PELL GRANTS’’;

23 (2) in subsection (a)(1)—

24 (A) in the first sentence, by striking ‘‘shall,

25 during the period beginning July 1, 1972, and
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1 ending September 30, 1998,’’ and inserting ‘‘,

2 for each fiscal year through fiscal year 2004,

3 shall’’; and

4 (B) in the second sentence, by inserting

5 ‘‘until such time as the Secretary determines

6 and publishes in the Federal Register with an

7 opportunity for comment, an alternative pay8 ment system that provides payments to institu9 tions in an accurate and timely manner,’’ after

10 ‘‘pay eligible students’’;

11 (3) in subsection (b)—

12 (A) in paragraph (2)(A), by striking

13 clauses (i) through (v), and inserting the follow14 ing:

15 ‘‘(i) $5,000 for academic year 1999–

16 2000;

17 ‘‘(ii) $5,200 for academic year 2000–

18 2001;

19 ‘‘(iii) $5,400 for academic year 2001–

20 2002;

21 ‘‘(iv) $5,600 for academic year 2002–

22 2003; and

23 ‘‘(v) $5,800 for academic year 2003–

24 2004.’’;
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1 (B) by amending paragraph (3) to read as

2 follows:

3 ‘‘(3) For any academic year for which an ap4 propriation Act provides a maximum basic grant in

5 an amount in excess of $2,400, the amount of a stu6 dent’s basic grant shall equal $2,400 plus—

7 ‘‘(A) one-half of the amount by which such

8 maximum basic grant exceeds $2,400; plus

9 ‘‘(B) the lesser of—

10 ‘‘(i) the remaining one-half of such ex11 cess; or

12 ‘‘(ii) the sum of the student’s tuition,

13 fees, and if the student has dependent care

14 expenses (as described in section 472(8) or

15 disability-related expenses (as described in

16 section 472(9)), an allowance determined

17 by the institution for such expenses.’’; and

18 (C) in paragraph (5), by striking ‘‘$400,

19 except’’ and all that follows through ‘‘grant of

20 $400’’ and insert ‘‘$200’’; and

21 (4) in subsection (c)—

22 (A) by amending paragraph (1) to read as

23 follows: ‘‘(1)(A) Except as provided in subpara24 graph (B), the period during which a student

25 may receive a basic grant shall be the period,
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1 required for the completion of the first under2 graduate baccalaureate course of study pursued

3 by the student at the institution at which the

4 student is in attendance, that does not exceed

5 150 percent of the period normally required by

6 a full-time student (or the equivalent period, in

7 the case of a part-time student) to complete the

8 course of study at the institution, as determined

9 by the institution.

10 ‘‘(B) A student may receive basic grants

11 under this subpart for a period that exceeds the

12 period described in subparagraph (A) to the ex13 tent the institution in which the student is en14 rolled determines necessary to accommodate the

15 rights of students with disabilities under section

16 504 of the Rehabilitation Act of 1973.’’; and

17 (B) in paragraph (2)—

18 (i) by striking ‘‘Nothing’’ and insert19 ing ‘‘(A) Except as provided in subpara20 graph (B), nothing’’;

21 (ii) by striking ‘‘or, in the case’’ and

22 all that follows through ‘‘or skills’’; and

23 (iii) by adding at the end the follow24 ing:
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1 ‘‘(B)(i) A student may receive a basic

2 grant to attend English language instruction

3 that is a separate course of instruction only

4 if—

5 ‘‘(I) students enrolled in such a course

6 are required to take an independently ad7 ministered standardized test of English

8 language proficiency upon completion of

9 the course; and

10 ‘‘(II) not less than a minimum per11 centage of such students achieve a passing

12 score on that test.

13 ‘‘(ii) The Secretary shall promulgate regu14 lations that specify 1 or more standardized

15 tests of English proficiency, the minimum per16 centage of students who must achieve a passing

17 score on the tests, and such other requirements

18 as the Secretary determines are necessary to

19 implement clause (i).’’.

20 SEC. 413. TRIO PROGRAMS.

21 (a) PROGRAM AUTHORITY.—Section 402A (20

22 U.S.C. 1070a–11) is amended—

23 (1) in subsection (b)(3)—
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1 (A) in subparagraph (A), by striking

2 ‘‘$170,000 for fiscal year 1993’’ and inserting

3 ‘‘$190,000 for each fiscal year’’;

4 (B) in subparagraph (B), by striking

5 ‘‘$180,000 for fiscal year 1994’’ and inserting

6 ‘‘$200,000 for each fiscal year’’; and

7 (C) in subparagraph (C), by striking

8 ‘‘$190,000 for fiscal year 1995’’ and inserting

9 ‘‘$210,000 for each fiscal year’’;

10 (2) in subsection (c)(6), by amending the last

11 sentence to read as follows: ‘‘The Secretary shall

12 permit a Director of a program assisted under this

13 chapter to also administer 1 or more additional pro14 grams for disadvantaged students operated by the

15 sponsoring entity regardless of the funding source of

16 such additional program.’’; and

17 (3) in subsection (f), by striking ‘‘$650,000,000

18 for fiscal year 1993’’ and inserting ‘‘$700,000,000

19 for fiscal year 1999’’.

20 (b) TALENT SEARCH.—Section 402B(b)(5) (20

21 U.S.C. 1070a–12(b)(5)) is amended by inserting ‘‘, or ac22 tivities designed to acquaint individuals from disadvan23 taged backgrounds with careers in which the individuals

24 are particularly underrepresented’’ before the semicolon.
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1 (c) UPWARD BOUND.—Section 402C (20 U.S.C.

2 1070a–13) is amended—

3 (1) in subsection (b)—

4 (A) in paragraph (9), by striking ‘‘and’’

5 after the semicolon;

6 (B) by redesignating paragraph (10) as

7 paragraph (11);

8 (C) by inserting after paragraph (9) the

9 following:

10 ‘‘(10) work-study positions where youth partici11 pating in the project are exposed to careers requir12 ing a postsecondary degree; and’’; and

13 (D) in paragraph (11) (as redesignated by

14 subparagraph (B)), by striking ‘‘(9)’’ and in15 serting ‘‘(10)’’; and

16 (2) in subsection (e), by striking ‘‘and not in

17 excess of $40 per month during the remaining pe18 riod of the year.’’ and inserting ‘‘except that youth

19 participating in a work-study position under sub20 section (b)(10) may be paid a stipend of $300 per

21 month during June, July, and August. Youths par22 ticipating in a project proposed to be carried out

23 under any application may be paid stipends not in

24 excess of $40 per month during the remaining pe25 riod of the year.’’.
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1 (d) STUDENT SUPPORT SERVICES.—Paragraph (6)

2 of section 402D(c) (20 U.S.C. 1070a–14(c)(6)) is amend3 ed to read as follows:

4 ‘‘(6) consider, in addition to such other criteria

5 as the Secretary may prescribe, the institution’s ef6 fort, and where applicable past history, in—

7 ‘‘(A) providing sufficient financial assist8 ance to meet the full financial need of each stu9 dent at the institution; and

10 ‘‘(B) maintaining the loan burden of each

11 such student at a manageable level.’’.

12 (e) EVALUATION AND DISSEMINATION.—Section

13 402H (20 U.S.C. 1070a–18) is amended to read as fol14 lows:

15 ‘‘SEC. 402H. EVALUATIONS AND GRANTS FOR PROJECT IM16 PROVEMENT AND DISSEMINATION PARTNER17 SHIP PROJECTS.

18 ‘‘(a) EVALUATIONS.—

19 ‘‘(1) IN GENERAL.—For the purpose of improv20 ing the effectiveness of the programs and projects

21 assisted under this subpart, the Secretary may make

22 grants to or enter into contracts with institutions of

23 higher education and other public and private insti24 tutions and organizations to evaluate the effective-
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1 ness of the programs and projects assisted under

2 this subpart.

3 ‘‘(2) PRACTICES.—The evaluations described in

4 paragraph (1) shall identify institutional, commu5 nity, and program or project practices that are par6 ticularly effective in enhancing the access of low-in7 come individuals and first-generation college stu8 dents to postsecondary education, the preparation of

9 the individuals and students for postsecondary edu10 cation, and the success of the individuals and stu11 dents in postsecondary education.

12 ‘‘(b) GRANTS.—The Secretary may award grants to

13 institutions of higher education or other private and public

14 institutions and organizations, that are carrying out a pro15 gram or project assisted under this subpart prior to the

16 date of enactment of the Higher Education Amendments

17 of 1998, to enable the institutions and organizations to

18 expand and leverage the success of such programs or

19 projects by working in partnership with other institutions,

20 community-based organizations, or combinations of such

21 institutions and organizations, that are not receiving as22 sistance under this subpart and are serving low-income

23 students and first generation college students, in order

24 to—
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1 ‘‘(1) disseminate and replicate best practices of

2 programs or projects assisted under this subpart;

3 and

4 ‘‘(2) provide technical assistance regarding pro5 grams and projects assisted under this subpart.

6 ‘‘(c) RESULTS.—In order to improve overall program

7 or project effectiveness, the results of evaluations and

8 grants described in this section shall be disseminated by

9 the Secretary to similar programs or projects assisted

10 under this subpart, as well as other individuals concerned

11 with postsecondary access for and retention of low-income

12 individuals and first-generation college students.’’.

13 SEC. 414. NATIONAL EARLY INTERVENTION SCHOLARSHIP

14 AND PARTNERSHIP PROGRAM.

15 Section 404G (20 U.S.C. 1070a–27) is amended by

16 striking ‘‘1993’’ and inserting ‘‘1999’’.

17 SEC. 415. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPOR18 TUNITY GRANTS.

19 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

20 413A(b) (20 U.S.C. 1070b) is amended by striking

21 ‘‘$675,000,000 for fiscal year 1993’’ and inserting

22 ‘‘$700,000,000 for fiscal year 1999’’.

23 (b) USE OF FUNDS FOR LESS-THAN-FULL-TIME

24 STUDENTS.—Subsection (d) of section 413C (20 U.S.C.

25 1070b–2) is amended to read as follows:
85

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1 ‘‘(d) USE OF FUNDS FOR LESS-THAN-FULL-TIME

2 STUDENTS.—If the institution’s allocation under this sub3 part is directly or indirectly based in part on the financial

4 need demonstrated by students who are independent stu5 dents or attending the institution on less than a full-time

6 basis, a reasonable proportion of the allocation shall be

7 made available to such students.’’.

8 (c) CARRYOVER, CARRYBACK, AND REALLOCA9 TION.—Subpart 3 of part A of title IV (20 U.S.C. 1070b

10 et seq.) is amended by adding at the end the following:

11 ‘‘SEC. 413E. CARRYOVER, CARRYBACK, AND REALLOCA12 TION.

13 ‘‘(a) CARRYOVER AUTHORITY.—Of the sums made

14 available to an eligible institution under this subpart for

15 a fiscal year, not more than 10 percent may, at the discre16 tion of the institution, remain available for expenditure

17 during the succeeding fiscal year to carry out the program

18 under this subpart.

19 ‘‘(b) CARRYBACK AUTHORITY.—Of the sums made

20 available to an eligible institution under this subpart for

21 a fiscal year, not more than 10 percent may, at the discre22 tion of the institution, be used by the institution for ex23 penditure for the fiscal year preceding the fiscal year for

24 which the sums were appropriated.
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1 ‘‘(c) REALLOCATION.—Any of the sums made avail2 able to an eligible institution under this subpart for a fis3 cal year that are not needed by the institution to award

4 supplemental grants during that fiscal year, that the insti5 tution does not wish to use during the succeeding fiscal

6 year as authorized in subsection (a), and that the institu7 tion does not wish to use for the preceding fiscal year as

8 authorized in subsection (b), shall be made available to

9 the Secretary for reallocation under section 413D(e) until

10 the end of the second fiscal year after the fiscal year for

11 which such sums were appropriated.’’.

12 SEC. 416. LEVERAGING EDUCATIONAL ASSISTANCE PART13 NERSHIP PROGRAM.

14 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

15 415A(b) (20 U.S.C. 1070c(b)) is amended—

16 (1) in paragraph (1), by striking ‘‘1993’’ and

17 inserting ‘‘1999’’;

18 (2) by redesignating paragraph (2) as para19 graph (3); and

20 (3) by inserting after paragraph (1) the follow21 ing:

22 ‘‘(2) RESERVATION.—For any fiscal year for

23 which the amount appropriated under paragraph (1)

24 exceeds $35,000,000, the excess shall be available to

25 carry out section 415E.’’.
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1 (b) SPECIAL LEVERAGING EDUCATIONAL ASSIST2 ANCE PARTNERSHIP PROGRAM.—Subpart 4 of part A of

3 title IV (20 U.S.C. 1070c et seq.) is amended—

4 (1) by redesignating section 415E as 415F;

5 (2) by inserting after section 415D the follow6 ing:

7 ‘‘SEC. 415E. SPECIAL LEVERAGING EDUCATIONAL ASSIST8 ANCE PARTNERSHIP PROGRAM.

9 ‘‘(a) IN GENERAL.—From amounts reserved under

10 section 415A(b)(2) for each fiscal year, the Secretary

11 shall—

12 ‘‘(1) make allotments among States in the same

13 manner as the Secretary makes allotments among

14 States under section 415B; and

15 ‘‘(2) award grants to States, from allotments

16 under paragraph (1), to enable the States to pay the

17 Federal share of the cost of the authorized activities

18 described in subsection (c).

19 ‘‘(b) APPLICABILITY RULE.—The provisions of this

20 subpart which are not inconsistent with this section shall

21 apply to the program authorized by this section.

22 ‘‘(c) AUTHORIZED ACTIVITIES.—Each State receiv23 ing a grant under this section may use the grant funds

24 for—
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1 ‘‘(1) increasing the dollar amount of grants

2 awarded under section 415B to eligible students who

3 demonstrate financial need;

4 ‘‘(2) carrying out transition programs from sec5 ondary school to postsecondary education for eligible

6 students who demonstrate financial need;

7 ‘‘(3) making funds available for community

8 service work-study activities for eligible students who

9 demonstrate financial need;

10 ‘‘(4) creating a postsecondary scholarship pro11 gram for eligible students who demonstrate financial

12 need and wish to enter teaching;

13 ‘‘(5) creating a scholarship program for eligible

14 students who demonstrate financial need and wish to

15 enter a program of study leading to a degree in

16 mathematics, computer science, or engineering;

17 ‘‘(6) carrying out early intervention programs,

18 mentoring programs, and career education programs

19 for eligible students who demonstrate financial need;

20 and

21 ‘‘(7) awarding merit or academic scholarships

22 to eligible students who demonstrate financial need.

23 ‘‘(d) MAINTENANCE OF EFFORT REQUIREMENT.—

24 Each State receiving a grant under this section for a fiscal

25 year shall provide the Secretary an assurance that the ag-
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1 gregate amount expended per student or the aggregate ex2 penditures by the State, from funds derived from non-Fed3 eral sources, for the authorized activities described in sub4 section (c) for the preceding fiscal year were not less than

5 the amount expended per student or the aggregate expend6 itures by the State for the activities for the second preced7 ing fiscal year.

8 ‘‘(e) FEDERAL SHARE.—The Federal share of the

9 cost of the authorized activities described in subsection (c)

for any fiscal year shall be 331 10 ⁄3 percent.’’; and

11 (3) by adding at the end the following:

12 ‘‘SEC. 415G. FEDERAL-STATE RELATIONSHIPS; STATE

13 AGREEMENTS.

14 ‘‘(a) IN GENERAL.—Any State that desires to receive

15 assistance under this subpart shall enter into an agree16 ment with the Secretary pursuant to subsection (b) setting

17 forth the terms and conditions for the relationship be18 tween the Federal Government and that State for the pur19 poses set forth under this subpart.

20 ‘‘(b) CONTENTS.—

21 ‘‘(1) IN GENERAL.—Such agreement shall con22 sist of assurances by the State, including a descrip23 tion of the means to be used by the State to fulfill

24 the assurances, that—
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1 ‘‘(A) the State will provide for such meth2 ods of administration as are necessary for the

3 proper and efficient administration of the pro4 gram under this subpart in keeping with the

5 purposes set forth under this subpart;

6 ‘‘(B) the State will provide for such fiscal

7 control and fund accounting procedures as may

8 be necessary to ensure proper disbursement of,

9 and accounting for, Federal funds paid to the

10 State under this subpart;

11 ‘‘(C) the State will follow policies and prac12 tices of administration that will ensure that

13 non-Federal funds will not be supplanted by

14 Federal funds, and that equitable and appro15 priate criteria will be used in evaluation of ap16 plications or proposals for grants under this

17 subpart; and

18 ‘‘(D) the State has a comprehensive plan19 ning or policy formulation process that—

20 ‘‘(i) considers the relation between

21 State administration of the program under

22 this subpart, and administration of similar

23 State programs or processes;

24 ‘‘(ii) encourages State policies de25 signed to consider effects on declining en-
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1 rollments on all sectors of postsecondary

2 education in the State;

3 ‘‘(iii) considers the postsecondary edu4 cation needs of unserved and underserved

5 individuals within the State, including indi6 viduals beyond the traditional college age;

7 ‘‘(iv) considers the resources of insti8 tutions, organizations, or agencies (both

9 public and private) within the State capa10 ble of providing postsecondary educational

11 opportunities in the State; and

12 ‘‘(v) provides for direct, equitable, and

13 active participation in the comprehensive

14 planning or policy formulation process or

15 processes of representatives of institutions

16 of higher education (including community

17 colleges, proprietary institutions, and inde18 pendent colleges and universities), stu19 dents, other providers of postsecondary

20 education services, and the general public

21 in the State.

22 ‘‘(2) SPECIAL RULE.—Participation under para23 graph (1)(D)(v) shall, consistent with State law, be

24 achieved through membership on State planning

25 commissions, State advisory councils, or other State
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1 entities established by the State to conduct federally

2 assisted comprehensive planning or policy formula3 tion.

4 ‘‘(c) SPECIAL RULE.—The information and assur5 ances provided by a State in accordance with subpara6 graphs (A), (B), and (C) of subsection (b)(1), and regula7 tions issued by the Secretary related directly to such as8 surances, shall be satisfactory for the purposes of, and

9 shall be considered in lieu of, any comparable require10 ments for information and assurances in any program

11 under this subpart.

12 ‘‘(d) AGREEMENT DURATION; COMPLIANCE.—

13 ‘‘(1) AGREEMENT DURATION.—An agreement

14 of a State shall remain in effect subject to modifica15 tion as changes in information or circumstances re16 quire.

17 ‘‘(2) COMPLIANCE.—Whenever the Secretary,

18 after reasonable notice and opportunity for a hear19 ing has been given to the State, finds that there is

20 a failure to comply substantially with the assurances

21 required in subparagraph (A), (B), or (C) of sub22 section (b)(1), the Secretary shall notify the State

23 that the State is no longer eligible to participate in

24 the program under this subpart until the Secretary
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1 is satisfied that there is no longer any such failure

2 to comply.

3 ‘‘(e) SPECIAL RULES.—

4 ‘‘(1) ENTITIES ENTERING INTO AGREE5 MENTS.—For the purpose of this section, the selec6 tion of the State entity or entities authorized to act

7 on behalf of the State for the purpose of entering

8 into an agreement with the Secretary shall be in ac9 cordance with the State law of each individual State

10 with respect to the authority to make legal agree11 ments between the State and the Federal Govern12 ment.

13 ‘‘(2) CONSTRUCTION.—

14 ‘‘(A) STATE STRUCTURE.—Nothing in this

15 section shall be construed to authorize the Sec16 retary to require any State to adopt, as a condi17 tion for entering into an agreement, or for par18 ticipation in a program under this subpart, a

19 specific State organizational structure for

20 achieving participation in the planning, or ad21 ministration of programs, or for statewide plan22 ning, coordination, governing, regulating, or ad23 ministering of postsecondary education agen24 cies, institutions, or programs in the State.
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1 ‘‘(B) STATE AUTHORITY.—Nothing in this

2 section shall be construed as a limitation on the

3 authority of any State to adopt a State organi4 zational structure for postsecondary education

5 agencies, institutions, or programs that is ap6 propriate to the needs, traditions, and cir7 cumstances of that State, or as a limitation on

8 the authority of a State entering into an agree9 ment pursuant to this section to modify the

10 State organizational structure at any time sub11 sequent to entering into such an agreement.’’.

12 (c) TECHNICAL AND CONFORMING AMENDMENTS.—

13 (1) PURPOSE.—Subsection (a) of section 415A

14 (20 U.S.C. 1070c(a)) is amended to read as follows:

15 ‘‘(a) PURPOSE OF SUBPART.—It is the purpose of

16 this subpart to make incentive grants available to States

17 to assist States in—

18 ‘‘(1) providing grants to—

19 ‘‘(A) eligible students attending institu20 tions of higher education or participating in

21 programs of study abroad that are approved for

22 credit by institutions of higher education at

23 which such students are enrolled; and

24 ‘‘(B) eligible students for campus-based

25 community service work-study; and
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1 ‘‘(2) carrying out the activities described in sec2 tion 415F.’’.

3 (2) ALLOTMENT.—Section 415B(a)(1) (20

4 U.S.C. 1070c–1(a)(1)) is amended by inserting ‘‘and

5 not reserved under section 415A(b)(2)’’ after

6 ‘‘415A(b)(1)’’.

7 SEC. 417. HEP AND CAMP.

8 Section 418A(g) (20 U.S.C. 1070d–2(g)) is amend9 ed—

10 (1) in paragraph (1), by striking ‘‘$15,000,000

11 for fiscal year 1993’’ and inserting ‘‘$25,000,000 for

12 fiscal year 1999’’; and

13 (2) in paragraph (2), by striking ‘‘$5,000,000

14 for fiscal year 1993’’ and inserting ‘‘$10,000,000 for

15 fiscal year 1999’’.

16 SEC. 418. ROBERT C. BYRD HONORS SCHOLARSHIP

17 PROGRAM.

18 Section 419K (20 U.S.C. 1070d–41) is amended by

19 striking ‘‘$10,000,000 for fiscal year 1993’’ and inserting

20 ‘‘$45,000,000 for fiscal year 1999’’.

21 SEC. 419. CHILD CARE ACCESS MEANS PARENTS IN

22 SCHOOL.

23 Part A of title IV (20 U.S.C. 1070 et seq.) is amend24 ed by inserting after subpart 6 (20 U.S.C. 1070d–31 et

25 seq.) the following:
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1 ‘‘Subpart 7—Child Care Access Means Parents in

2 School

3 ‘‘SEC. 419N. CHILD CARE ACCESS MEANS PARENTS IN

4 SCHOOL.

5 ‘‘(a) PURPOSE.—The purpose of this section is to

6 support the participation of low-income parents in post7 secondary education through the provision of campus8 based child care services.

9 ‘‘(b) PROGRAM AUTHORIZED.—

10 ‘‘(1) AUTHORITY.—The Secretary may award

11 grants to institutions of higher education to assist

12 the institutions in providing campus-based child care

13 services to low-income students.

14 ‘‘(2) AMOUNT OF GRANTS.—

15 ‘‘(A) IN GENERAL.—The amount of a

16 grant awarded to an institution of higher edu17 cation under this section for a fiscal year shall

18 not exceed 1 percent of the total amount of all

19 Federal Pell Grant funds awarded to students

20 enrolled at the institution of higher education

21 for the preceding fiscal year.

22 ‘‘(B) MINIMUM.—A grant under this sec23 tion shall be awarded in an amount that is not

24 less than $10,000.

25 ‘‘(3) DURATION; RENEWAL; AND PAYMENTS.—
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1 ‘‘(A) DURATION.—The Secretary shall

2 award a grant under this section for a period

3 of 3 years.

4 ‘‘(B) RENEWAL.—A grant under this sec5 tion may be renewed for a period of 3 years.

6 ‘‘(C) PAYMENTS.—Subject to subsection

7 (d)(2), the Secretary shall make annual grant

8 payments under this section.

9 ‘‘(4) ELIGIBLE INSTITUTIONS.—An institution

10 of higher education shall be eligible to receive a

11 grant under this section for a fiscal year if the total

12 amount of all Federal Pell Grant funds awarded to

13 students enrolled at the institution of higher edu14 cation for the preceding fiscal year equals or exceeds

15 $350,000.

16 ‘‘(5) USE OF FUNDS.—Grant funds under this

17 section shall be used by an institution of higher edu18 cation to support or establish a campus-based child

19 care program serving the needs of low-income stu20 dents enrolled at the institution of higher education.

21 ‘‘(6) CONSTRUCTION.—Nothing in this section

22 shall be construed to prohibit an institution of high23 er education that receives grant funds under this

24 section from serving the child care needs of the com25 munity served by the institution.
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1 ‘‘(7) DEFINITION OF LOW-INCOME STUDENT.—

2 For the purpose of this section, the term ‘‘low-in3 come student’’ means a student who is eligible to re4 ceive a Federal Pell Grant for the fiscal year for

5 which the determination is made.

6 ‘‘(c) APPLICATIONS.—An institution of higher edu7 cation desiring a grant under this section shall submit an

8 application to the Secretary at such time, in such manner,

9 and accompanied by such information as the Secretary

10 may require. Each application shall—

11 ‘‘(1) demonstrate that the institution is an eligi12 ble institution described in subsection (b)(4);

13 ‘‘(2) specify the amount of funds requested;

14 ‘‘(3) demonstrate the need of low-income stu15 dents at the institution for campus-based child care

16 services by including in the application student de17 mographics and other relevant data;

18 ‘‘(4) contain a description of the activities to be

19 assisted, including whether the grant funds will sup20 port an existing child care program or a new child

21 care program;

22 ‘‘(5) identify the resources the institution will

23 draw upon to support the child care program and

24 the participation of low-income students in the pro25 gram, such as accessing social services funding,
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1 using student activity fees to help pay the costs of

2 child care, using resources obtained by meeting the

3 needs of parents who are not low-income students,

4 and accessing foundation, corporate or other institu5 tional support, and demonstrate that the use of the

6 resources will not result in increases in student tui7 tion;

8 ‘‘(6) contain an assurance that the institution

9 will meet the child care needs of low-income students

10 through the provision of services, or through a con11 tract for the provision of services;

12 ‘‘(7) in the case of an institution seeking assist13 ance for a new child care program—

14 ‘‘(A) provide a timeline, covering the pe15 riod from receipt of the grant through the pro16 vision of the child care services, delineating the

17 specific steps the institution will take to achieve

18 the goal of providing low-income students with

19 child care services;

20 ‘‘(B) specify any measures the institution

21 will take to assist low-income students with

22 child care during the period before the institu23 tion provides child care services; and

24 ‘‘(C) include a plan for identifying re25 sources needed for the child care services, in-
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1 cluding space in which to provide child care

2 services, and technical assistance if necessary;

3 ‘‘(8) contain an assurance that any child care

4 facility assisted under this section will meet the ap5 plicable State or local government licensing, certifi6 cation, approval, or registration requirements; and

7 ‘‘(9) contain a plan for any child care facility

8 assisted under this section to become accredited

9 within 3 years of the date the institution first re10 ceives assistance under this section.

11 ‘‘(d) REPORTING REQUIREMENTS; CONTINUING ELI12 GIBILITY.—

13 ‘‘(1) REPORTING REQUIREMENTS.—

14 ‘‘(A) REPORTS.—Each institution of high15 er education receiving a grant under this sec16 tion shall report to the Secretary 18 months,

17 and 36 months, after receiving the first grant

18 payment under this section.

19 ‘‘(B) CONTENTS.—The report shall in20 clude—

21 ‘‘(i) data on the population served

22 under this section;

23 ‘‘(ii) information on campus and com24 munity resources and funding used to help
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1 low-income students access child care serv2 ices;

3 ‘‘(iii) information on progress made

4 toward accreditation of any child care fa5 cility; and

6 ‘‘(iv) information on the impact of the

7 grant on the quality, availability, and af8 fordability of campus-based child care serv9 ices.

10 ‘‘(2) CONTINUING ELIGIBILITY.—The Secretary

11 shall make the third annual grant payment under

12 this section to an institution of higher education

13 only if the Secretary determines, on the basis of the

14 18-month report submitted under paragraph (1),

15 that the institution is making a good faith effort to

16 ensure that low-income students at the institution

17 have access to affordable, quality child care services.

18 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There

19 are authorized to be appropriated to carry out this section

20 $60,000,000 for fiscal year 1999 and such sums as may

21 be necessary for each of the 4 succeeding fiscal years.’’.

22 PART B—FEDERAL FAMILY EDUCATION LOAN

23 PROGRAM

24 SEC. 421. ADVANCES FOR RESERVE FUNDS.

25 Section 422 (20 U.S.C. 1072) is amended—
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1 (1) in subsection (c)—

2 (A) in paragraph (6)(B)(i), by striking

3 ‘‘written’’ and inserting ‘‘written, electronic’’;

4 and

5 (B) in paragraph (7)(A), by striking ‘‘dur6 ing the transition from the Federal Family

7 Education Loan Program under this part to the

8 Federal Direct Student Loan Program under

9 part D of this title’’;

10 (2) in the matter preceding subparagraph (A)

11 of subsection (g)(1), by striking ‘‘or the program au12 thorized by part D of this title’’ each place the term

13 appears; and

14 (3) by adding at the end the following:

15 ‘‘(i) ADDITIONAL RECALL OF RESERVES.—

16 ‘‘(1) IN GENERAL.—Notwithstanding any other

17 provision of law and subject to paragraph (4), the

18 Secretary shall recall $40,000,000 for each of the

19 fiscal years 1999, 2000, 2001, 2002, and 2003 from

20 reserve funds held in the Federal Student Loan Re21 serve Funds established under section 422A by

22 guaranty agencies.

23 ‘‘(2) DEPOSIT.—Funds recalled by the Sec24 retary under this subsection shall be deposited in the

25 Treasury.
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1 ‘‘(3) REQUIRED SHARE.—The Secretary shall

2 require each guaranty agency to return reserve

3 funds under paragraph (1) annually on the basis of

1 4 ⁄5 of the agency’s required share. For purposes of

5 this paragraph, a guaranty agency’s required share

6 shall be determined as follows:

7 ‘‘(A) EQUAL PERCENTAGE.—The Secretary

8 shall require each guaranty agency to return an

9 equal percentage reduction in the amount of re10 serve funds held by the agency on September

11 30, 1996.

12 ‘‘(B) CALCULATION.—The equal percent13 age reduction shall be the percentage obtained

14 by dividing—

15 ‘‘(i) $200,000,000, by

16 ‘‘(ii) the total amount of all guaranty

17 agencies’ reserve funds held on September

18 30, 1996.

19 ‘‘(4) OFFSET OF REQUIRED SHARES.—If any

20 guaranty agency returns to the Secretary any re21 serve funds in excess of the amount required under

22 this subsection or subsection (h), the total amount

23 required to be returned under paragraph (1) shall be

24 reduced by the amount of such excess reserve funds

25 returned.
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1 ‘‘(5) DEFINITION OF RESERVE FUNDS.—The

2 term ‘reserve funds’ when used with respect to a

3 guaranty agency—

4 ‘‘(A) includes any reserve funds in cash or

5 liquid assets held by the guaranty agency, or

6 held by, or under the control of, any other en7 tity; and

8 ‘‘(B) does not include buildings, equip9 ment, or other nonliquid assets.’’.

10 SEC. 422. FEDERAL STUDENT LOAN RESERVE FUND.

11 Part B of title IV (20 U.S.C. 1071 et seq.) is amend12 ed by inserting after section 422 (20 U.S.C. 1072) the

13 following:

14 ‘‘SEC. 422A. FEDERAL STUDENT LOAN RESERVE FUND.

15 ‘‘(a) ESTABLISHMENT.—Each guaranty agency shall,

16 not later than 45 days after the date of enactment of this

17 section, deposit all funds, securities, and other liquid as18 sets contained in the reserve fund established pursuant to

19 section 422 into a Federal Student Loan Reserve Fund

20 (in this section referred to as the ‘Federal Fund’), in an

21 account of a type selected by the agency, with the approval

22 of the Secretary.

23 ‘‘(b) INVESTMENT OF FUNDS.—Funds transferred to

24 the Federal Fund shall be invested in obligations issued

25 or guaranteed by the United States or a State, or in other
105

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1 similarly low-risk securities selected by the guaranty agen2 cy, with the approval of the Secretary. Earnings from the

3 Federal Fund shall be the sole property of the Federal

4 Government.

5 ‘‘(c) ADDITIONAL DEPOSITS.—After the establish6 ment of the Federal Fund, a guaranty agency shall deposit

7 into the Federal Fund—

8 ‘‘(1) all amounts received from the Secretary as

9 payment of reinsurance on loans pursuant to section

10 428(c)(1);

11 ‘‘(2) from amounts collected on behalf of the

12 obligation of a defaulted borrower, a percentage

13 amount equal to the complement of the reinsurance

14 percentage in effect when payment under the guar15 anty agreement was made with respect to the de16 faulted loan pursuant to section 428(c)(6)(A)(i); and

17 ‘‘(3) the amount of the insurance premium col18 lected from borrowers pursuant to section

19 428(b)(1)(H).

20 ‘‘(d) USES OF FUNDS.—Subject to subsection (f), the

21 Federal Fund may only be used by a guaranty agency—

22 ‘‘(1) to pay lender claims pursuant to sections

23 428(b)(1)(G), 428(j), 437, and 439(q); and
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1 ‘‘(2) to pay into the Agency Operating Fund es2 tablished pursuant to section 422B a default preven3 tion fee in accordance with section 428(l).

4 ‘‘(e) OWNERSHIP OF FEDERAL FUND.—The Federal

5 Fund administered by the guaranty agency, regardless of

6 who holds or controls the reserve funds or assets, and any

7 nonliquid assets that were purchased with Federal reserve

8 funds, shall be considered to be the property of the United

9 States to be used in the operation of the program author10 ized by this part, as provided in subsection (d). The Sec11 retary may direct a guaranty agency, or such agency’s of12 ficers or directors, to cease any activity involving expendi13 ture, use, or transfer of the Federal Fund administered

14 by the guaranty agency that the Secretary determines is

15 a misapplication, misuse, or improper expenditure of such

16 funds or assets.

17 ‘‘(f) TRANSITION.—

18 ‘‘(1) IN GENERAL.—In order to establish the

19 Agency Operating Fund established by section

20 422B, each agency may transfer not more than 180

21 days cash expenses for normal operating expenses,

22 as a working capital reserve as defined in Office of

23 Management and Budget Circular A–87 (Cost Ac24 counting Standards) for use in the performance of

25 the agency’s duties under this part. Such transfers
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1 may occur during the first 3 years following the es2 tablishment of the Agency Operating Fund, except

3 that no agency may transfer in excess of 40 percent

4 of the Federal Fund balance to the agency’s Agency

5 Operating Fund during any fiscal year. In determin6 ing the amount necessary for transfer, the agency

7 shall assure that sufficient funds remain in the Fed8 eral Fund to pay lender claims within the required

9 time periods and to meet the reserve funds recall re10 quirements of subsection (b).

11 ‘‘(2) REPAYMENT PROVISIONS.—Each guaranty

12 agency shall begin repayment of sums transferred

13 pursuant to this subsection not later than 3 years

14 after the establishment of the Agency Operating

15 Fund, and shall repay all sums transferred not later

16 than 5 years from the date of the establishment of

17 the Agency Operating Fund. The guaranty agency

18 shall provide to the Secretary a schedule for repay19 ment of the sums transferred and an annual finan20 cial analysis demonstrating the agency’s ability to

21 comply with the schedule and repay all outstanding

22 sums transferred.

23 ‘‘(3) PROHIBITION.—If a guaranty agency

24 transfers funds from the Federal Fund in accord25 ance with this section, and fails to make scheduled
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1 repayments to the Federal Fund, the agency may

2 not receive any other funds under this part until the

3 Secretary determines that the agency has made such

4 repayments.

5 ‘‘(4) WAIVER.—The Secretary may waive the

6 requirements of paragraph (3) for a guaranty agen7 cy described in such paragraph if the Secretary de8 termines there are extenuating circumstances beyond

9 the control of the agency that justify such a waiver.

10 ‘‘(5) INVESTMENT OF FEDERAL FUNDS.—

11 Funds transferred from the Federal Fund to the

12 Agency Operating Fund for operating expenses shall

13 be invested in obligations issued or guaranteed by

14 the United States or a State, or in other similarly

15 low-risk securities selected by the guaranty agency,

16 with the approval of the Secretary.

17 ‘‘(6) SPECIAL RULE.—In applying the minimum

18 reserve level required by section 428(c)(9)(A), the

19 Secretary shall include all amounts owed to the Fed20 eral Fund by the guaranty agency in the calcula21 tion.’’.

22 SEC. 423. AGENCY OPERATING FUND.

23 Part B of title IV (20 U.S.C. 1071 et seq.) is amend24 ed further by inserting after section 422A (as added by

25 section 422) the following:
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1 ‘‘SEC. 422B. AGENCY OPERATING FUND.

2 ‘‘(a) ESTABLISHMENT.—Each guaranty agency shall,

3 not later than 45 days after the date of enactment of this

4 section, establish a fund designated as the Agency Operat5 ing Fund (in this section referred to as the ‘Operating

6 Fund’).

7 ‘‘(b) INVESTMENT OF FUNDS.—Funds deposited into

8 the Operating Fund, with the exception of funds trans9 ferred from the Federal Student Loan Reserve Fund pur10 suant to section 422A(f), shall be invested at the discre11 tion of the guaranty agency.

12 ‘‘(c) ADDITIONAL DEPOSITS.—After the establish13 ment of the Operating Fund, the guaranty agency shall

14 deposit into the Operating Fund—

15 ‘‘(1) the loan processing and issuance fee paid

16 by the Secretary pursuant to section 428(f);

17 ‘‘(2) the portfolio maintenance fee paid by the

18 Secretary in accordance with section 458;

19 ‘‘(3) the default prevention fee paid in accord20 ance with section 428(l); and

21 ‘‘(4) amounts remaining pursuant to section

22 428(c)(6)(A)(ii) from collection on defaulted loans

23 held by the agency, after payment of the Secretary’s

24 equitable share, excluding amounts deposited in the

25 Federal Student Loan Reserve Fund pursuant to

26 section 422A(c)(2).
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1 ‘‘(d) USES OF FUNDS.—

2 ‘‘(1) IN GENERAL.—Funds in the Operating

3 Fund shall be used for application processing, loan

4 disbursement, enrollment and repayment status

5 management, default prevention activities (including

6 those described in section 422(h)(8), default collec7 tion activities, school and lender training, compliance

8 monitoring, and other student financial aid related

9 activities as determined by the Secretary.

10 ‘‘(2) SPECIAL RULE.—The guaranty agency

11 may, in the agency’s discretion, transfer funds from

12 the Operating Fund to the Federal Student Loan

13 Reserve Fund for use pursuant to section 422A.

14 Such transfer shall be irrevocable, and any funds so

15 transferred shall become the sole property of the

16 United States.

17 ‘‘(3) DEFINITIONS.—For purposes of this sub18 section:

19 ‘‘(A) DEFAULT COLLECTION ACTIVITIES.—

20 The term ‘default collection activities’ means

21 activities of a guaranty agency that are directly

22 related to the collection of the loan on which a

23 default claim has been paid to the participating

24 lender, including the attributable compensation

25 of collection personnel (and in the case of per-
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1 sonnel who perform several functions for such

2 an agency only the portion of the compensation

3 attributable to the collection activity), attor4 ney’s fees, fees paid to collection agencies, post5 age, equipment, supplies, telephone, and similar

6 charges.

7 ‘‘(B) DEFAULT PREVENTION ACTIVI8 TIES.—The term ‘default prevention activities’

9 means activities of a guaranty agency, including

10 those described in section 422(h)(8), that are

11 directly related to providing collection assist12 ance to the lender on a delinquent loan, prior

13 to the loan’s being in a default status, including

14 the attributable compensation of appropriate

15 personnel (and in the case of personnel who

16 perform several functions for such an agency

17 only the portion of compensation attributable to

18 the default prevention activity), fees paid to lo19 cate a missing borrower, postage, equipment,

20 supplies, telephone, and similar charges.

21 ‘‘(C) ENROLLMENT AND REPAYMENT STA22 TUS MANAGEMENT.—The term ‘enrollment and

23 repayment status management’ means activities

24 of a guaranty agency that are directly related

25 to ascertaining the student’s enrollment status,
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1 including prompt notification to the lender of

2 such status, an audit of the note or written

3 agreement to determine if the provisions of that

4 note or agreement are consistent with the

5 records of the guaranty agency as to the prin6 cipal amount of the loan guaranteed, and an ex7 amination of the note or agreement to assure

8 that the repayment provisions are consistent

9 with the provisions of this title.

10 ‘‘(e) OWNERSHIP OF OPERATING FUND.—The Oper11 ating Fund, with the exception of funds transferred from

12 the Federal Student Loan Reserve Fund in accordance

13 with section 422A(f), shall be considered to be the prop14 erty of the guaranty agency. The Secretary may not regu15 late the uses or expenditure of moneys in the Operating

16 Fund, but the Secretary may require such necessary re17 ports and audits as provided in section 428(b)(2). How18 ever, during any period in which funds are owed to the

19 Federal Student Loan Reserve Fund as a result of trans20 fer under 422A(f), moneys in the Operating Fund may

21 only be used for expenses related to the student loan pro22 grams authorized under this part.

23 ‘‘(f) AUTHORITY OF SECRETARY TO DISPOSE OF

24 NONLIQUID ASSETS.—The Secretary may allow a guar25 anty agency to purchase nonliquid assets of the agency
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1 originally acquired with student loan reserve funds, except

2 that an agency may not purchase any nonliquid assets

3 during any period in which funds are owed to the Federal

4 Student Loan Reserve Fund as a result of a transfer

5 under section 422A(f). The purchase amount shall be

6 available for expenditure under section 458.’’.

7 SEC. 424. APPLICABLE INTEREST RATES.

8 (a) APPLICABLE INTEREST RATES.—

9 (1) AMENDMENT.—Section 427A (20 U.S.C.

10 1077a et seq.) is amended to read as follows:

11 ‘‘SEC. 427A. APPLICABLE INTEREST RATES.

12 ‘‘(a) INTEREST RATES FOR NEW LOANS ON OR

13 AFTER JULY 1, 1998.—

14 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

15 with respect to any loan made, insured, or guaran16 teed under this part (other than a loan made pursu17 ant to section 428B or 428C) for which the first dis18 bursement is made on or after July 1, 1998, the ap19 plicable rate of interest shall, during any 12-month

20 period beginning on July 1 and ending on June 30,

21 be determined on the preceding June 1 and be equal

22 to—

23 ‘‘(A) the bond equivalent rate of 91-day

24 Treasury bills auctioned at the final auction

25 held prior to such June 1; plus
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1 ‘‘(B) 2.3 percent,

2 except that such rate shall not exceed 8.25 percent.

3 ‘‘(2) IN SCHOOL AND GRACE PERIOD RULES.—

4 With respect to any loan under this part (other than

5 a loan made pursuant to section 428B or 428C) for

6 which the first disbursement is made on or after

7 July 1, 1998, the applicable rate of interest for in8 terest which accrues—

9 ‘‘(A) prior to the beginning of the repay10 ment period of the loan; or

11 ‘‘(B) during the period in which principal

12 need not be paid (whether or not such principal

13 is in fact paid) by reason of a provision de14 scribed in section 428(b)(1)(M) or

15 427(a)(2)(C),

16 shall be determined under paragraph (1) by sub17 stituting ‘1.7 percent’ for ‘2.3 percent’.

18 ‘‘(3) PLUS LOANS.—With respect to any loan

19 under section 428B for which the first disbursement

20 is made on or after July 1, 1998, the applicable rate

21 of interest shall be determined under paragraph

22 (1)—

23 ‘‘(A) by substituting ‘3.1 percent’ for ‘2.3

24 percent’; and
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1 ‘‘(B) by substituting ‘9.0 percent’ for ‘8.25

2 percent’.

3 ‘‘(b) LESSER RATES PERMITTED.—Nothing in this

4 section or section 428C shall be construed to prohibit a

5 lender from charging a borrower interest at a rate less

6 than the rate which is applicable under this part.

7 ‘‘(c) CONSULTATION.—The Secretary shall determine

8 the applicable rate of interest under this section after con9 sultation with the Secretary of the Treasury and shall

10 publish such rate in the Federal Register as soon as prac11 ticable after the date of determination.’’.

12 (2) CONFORMING AMENDMENT.—Section

13 428B(d)(4) (20 U.S.C. 1078–2(d)(4)) is amended by

14 striking ‘‘section 427A(c)’’ and inserting ‘‘section

15 427A(a)(3)’’.

16 (b) SPECIAL ALLOWANCES.—

17 (1) AMENDMENT.—Section 438(b)(2)(F) (20

18 U.S.C. 1087–1(b)(2)(F)) is amended to read as fol19 lows:

20 ‘‘(F) LOANS DISBURSED AFTER JULY 1, 1998.—

21 ‘‘(i) IN GENERAL.—Subject to paragraph

22 (4) and clauses (ii), (iii), and (iv) of this sub23 paragraph, the special allowance paid pursuant

24 to this subsection on loans for which the first
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1 disbursement is made on or after July 1, 1998,

2 shall be computed—

3 ‘‘(I) by determining the average of the

4 bond equivalent rates of 91-day Treasury

5 bills auctioned for such 3-month period;

6 ‘‘(II) by subtracting the applicable in7 terest rates on such loans from such aver8 age bond equivalent rate;

9 ‘‘(III) by adding 2.8 percent to the re10 sultant percent; and

11 ‘‘(IV) by dividing the resultant per12 cent by 4.

13 ‘‘(ii) IN SCHOOL AND GRACE PERIOD.—In

14 the case of any loan for which the first dis15 bursement is made on or after July 1, 1998,

16 and for which the applicable rate of interest is

17 described in section 427A(a)(2), clause (i)(III)

18 of this subparagraph shall be applied by sub19 stituting ‘2.2 percent’ for ‘2.8 percent’.

20 ‘‘(iii) PLUS LOANS.—In the case of any

21 loan for which the first disbursement is made

22 on or after July 1, 1998, and for which the ap23 plicable rate of interest is described in section

24 427A(a)(3), clause (i)(III) of this subparagraph

25 shall be applied by substituting ‘3.1 percent’ for
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•S 1882 IS

1 ‘2.8 percent’, subject to clause (iv) of this sub2 paragraph.

3 ‘‘(iv) LIMITATION ON SPECIAL ALLOW4 ANCES FOR PLUS LOANS.—In the case of loans

5 disbursed on or after July 1, 1998, for which

6 the interest rate is determined under section

7 427A(a)(3), a special allowance shall not be

8 paid for a loan made under section 428B unless

9 the rate determined for any 12-month period

10 under section 427A(a)(3) exceeds 9 percent.’’.

11 (2) CONFORMING AMENDMENT.—Section

12 438(b)(2)(C)(ii) is amended by striking ‘‘In the

13 case’’ and inserting ‘‘Subject to subparagraph (F),

14 in the case’’.

15 (c) EFFECTIVE DATE.—The amendments made by

16 this section shall apply with respect to any loan made, in17 sured, or guaranteed under part B of title IV of the High18 er Education Act of 1965 for which the first disbursement

19 is made on or after July 1, 1998.

20 SEC. 425. FEDERAL PAYMENTS TO REDUCE STUDENT IN21 TEREST COSTS.

22 (a) FEDERAL INTEREST SUBSIDIES.—Section 428(a)

23 (20 U.S.C. 1078(a)) is amended—

24 (1) in paragraph (2)—

25 (A) in subparagraph (A)—
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1 (i) in clause (i), by striking subclauses

2 (I), (II), and (III) and inserting the follow3 ing:

4 ‘‘(I) sets forth the loan amount for

5 which the student shows financial need;

6 and

7 ‘‘(II) sets forth a schedule for dis8 bursement of the proceeds of the loan in

9 installments, consistent with the require10 ments of section 428G; and’’; and

11 (ii) by amending clause (ii) to read as

12 follows:

13 ‘‘(ii) meets the requirements of subpara14 graph (B); and’’;

15 (B) by amending subparagraph (B) to read

16 as follows:

17 ‘‘(B) For the purpose of clause (ii) of subpara18 graph (A), a student shall qualify for a portion of

19 an interest payment under paragraph (1) (and a

20 loan amount pursuant to section 428H) if the eligi21 ble institution has determined and documented the

22 student’s amount of need for a loan based on the

23 student’s estimated cost of attendance, estimated fi24 nancial assistance, and, for the purpose of an inter25 est payment pursuant to this section, the expected
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1 family contribution (as determined under part F),

2 subject to the provisions of subparagraph (D).’’; and

3 (C) by amending subparagraph (C) to read

4 as follows:

5 ‘‘(C) For the purpose of subparagraph (B) and

6 this paragraph—

7 ‘‘(i) a student’s cost of attendance shall be

8 determined under section 472;

9 ‘‘(ii) a student’s estimated financial assist10 ance means, for the period for which the loan

11 is sought, the amount of assistance such stu12 dent will receive under subpart 1 of part A (as

13 determined in accordance with section 484(b)),

14 subpart 3 of part A, parts C and E, and any

15 veterans’ education benefits paid because of en16 rollment in a postsecondary education institu17 tion, including veterans’ education benefits (as

18 defined in section 480(c)), plus other scholar19 ship, grant, or loan assistance; and

20 ‘‘(iii) the determination of need and of the

21 amount of a loan by an eligible institution

22 under subparagraph (B) with respect to a stu23 dent shall, with the exception of loans made

24 under section 428H, be calculated in accord25 ance with part F.’’; and
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1 (2) in paragraph (3)(A)(v)—

2 (A) in subclause (I), by inserting ‘‘by the

3 institution’’ after ‘‘disbursement’’; and

4 (B) in clause (II), by inserting ‘‘by the in5 stitution’’ after ‘‘disbursement’’.

6 (b) INSURANCE PROGRAM AGREEMENTS.—Section

7 428(b) (20 U.S.C. 1078(b)) is amended—

8 (1) in paragraph (1)—

9 (A) in subparagraph (A)—

10 (i) in the matter preceding clause (i),

11 by inserting ‘‘, as defined in section

12 481(d)(2),’’ after ‘‘academic year’’;

13 (ii) in clause (iv), by striking ‘‘and’’

14 after the semicolon;

15 (iii) in clause (v), by inserting ‘‘and’’

16 after the semicolon; and

17 (iv) by inserting before the matter fol18 lowing clause (v) the following:

19 ‘‘(vi) in the case of a student enrolled

20 in coursework specified in sections

21 484(b)(3)(B) and 484(b)(4)(B)—

22 ‘‘(I) $2,625 for coursework nec23 essary for enrollment in an under24 graduate degree or certificate pro25 gram, and $5,500 for coursework nec-
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1 essary for enrollment in a graduate or

2 professional degree or certification

3 program; and

4 ‘‘(II) $5,500 for coursework nec5 essary for a professional credential or

6 certification from a State required for

7 employment as a teacher in an ele8 mentary or secondary school;’’;

9 (B) by amending subparagraph (E) to read

10 as follows:

11 ‘‘(E) subject to subparagraphs (D) and

12 (L), and except as provided by subparagraph

13 (M), provides that—

14 ‘‘(i) not more than 6 months prior to

15 the date on which the borrower’s first pay16 ment is due, the lender shall offer the bor17 rower of a loan made, insured, or guaran18 teed under this section or section 428H,

19 the option of repaying the loan in accord20 ance with a graduated, income-sensitive, or

21 extended repayment schedule (as described

22 in paragraph (9)) established by the lender

23 in accordance with regulations provided by

24 the Secretary; and
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1 ‘‘(ii) repayment of loans shall be in in2 stallments in accordance with the repay3 ment plan selected under paragraph (9)

4 and commencing at the beginning of the

5 repayment period determined under para6 graph (7)’’;

7 (C) in subparagraph (L)(i), by inserting

8 ‘‘except as otherwise provided by a repayment

9 plan selected by the borrower under clause (ii)

10 or (iii) of paragraph (9)(A),’’ before ‘‘during

11 any’’; and

12 (D) in subparagraph (U)(iii)(I), by insert13 ing ‘‘that originates or holds more than

14 $5,000,000 in loans made under this title for

15 any fiscal year,’’ before ‘‘at least once a year’’;

16 and

17 (2) by adding at the end the following:

18 ‘‘(9) REPAYMENT PLANS.—

19 ‘‘(A) DESIGN AND SELECTION.—In accord20 ance with regulations promulgated by the Sec21 retary, the lender shall offer a borrower of a

22 loan made under this part the plans described

23 in this subparagraph for repayment of such

24 loan, including principal and interest thereon.

25 Except as provided in paragraph (1)(L)(i), no
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•S 1882 IS

1 plan may require a borrower to repay a loan in

2 less than 5 years. The borrower may choose

3 from—

4 ‘‘(i) a standard repayment plan, with

5 a fixed annual repayment amount paid

6 over a fixed period of time, not to exceed

7 10 years;

8 ‘‘(ii) a graduated repayment plan paid

9 over a fixed period of time, not to exceed

10 10 years;

11 ‘‘(iii) an income-sensitive repayment

12 plan, with income-sensitive repayment

13 amounts paid over a fixed period of time,

14 not to exceed 10 years, except that the

15 borrower’s scheduled payments shall not be

16 less than the amount of interest due; and

17 ‘‘(iv) for first-time borrowers on or

18 after the date of enactment of the Higher

19 Education Amendments of 1998 with out20 standing loans under this part totaling

21 more than $30,000, an extended repay22 ment plan, with a fixed annual or grad23 uated repayment amount paid over an ex24 tended period of time, not to exceed 25

25 years, except that the borrower shall repay
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1 annually a minimum amount determined in

2 accordance with paragraph (2)(L).

3 ‘‘(B) LENDER SELECTION OF OPTION IF

4 BORROWER DOES NOT SELECT.—If a borrower

5 of a loan made under this part does not select

6 a repayment plan described in subparagraph

7 (A), the lender shall provide the borrower with

8 a repayment plan described in subparagraph

9 (A)(i).

10 ‘‘(C) CHANGES IN SELECTION.—The bor11 rower of a loan made under this part may

12 change the borrower’s selection of a repayment

13 plan under subparagraph (B), as the case may

14 be, under such conditions as may be prescribed

15 by the Secretary in regulation.

16 ‘‘(D) ACCELERATION PERMITTED.—Under

17 any of the plans described in this paragraph,

18 the borrower shall be entitled to accelerate,

19 without penalty, repayment on the borrower’s

20 loans under this part.’’.

21 (c) GUARANTY AGREEMENTS FOR REIMBURSING

22 LOSSES.—Section 428(c) (20 U.S.C. 1078(c)) is amend23 ed—

24 (1) in paragraph (1)—
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•S 1882 IS

1 (A) in the fourth sentence of subparagraph

2 (A), by striking ‘‘as reimbursement under this

3 subsection shall be equal to 98 percent’’ and in4 serting ‘‘as reimbursement for loans for which

5 the first disbursement is made on or after the

6 date of enactment of the Higher Education

7 Amendments of 1998 shall be equal to 95 per8 cent’’;

9 (B) in subparagraph (B)—

10 (i) in clause (i), by striking ‘‘88 per11 cent of the amount of such excess’’ and in12 serting ‘‘85 percent of the amount of such

13 excess for loans for which the first dis14 bursement is made on or after the date of

15 enactment of the Higher Education

16 Amendments of 1998’’; and

17 (ii) in clause (ii), by striking ‘‘78 per18 cent of the amount of such excess’’ and in19 serting ‘‘75 percent of the amount of such

20 excess for loans for which the first dis21 bursement is made on or after the date of

22 enactment of the Higher Education

23 Amendments of 1998’’;

24 (C) in subparagraph (E)—
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•S 1882 IS

1 (i) in clause (i), by striking ‘‘98 per2 cent’’ and inserting ‘‘95 percent’’;

3 (ii) in clause (ii), by striking ‘‘88 per4 cent’’ and inserting ‘‘85 percent’’; and

5 (iii) in clause (iii), by striking ‘‘78

6 percent’’ and inserting ‘‘75 percent’’; and

7 (D) in subparagraph (F)—

8 (i) in clause (i), by striking ‘‘98 per9 cent’’ and inserting ‘‘95 percent’’; and

10 (ii) in clause (ii), by striking ‘‘88 per11 cent’’ and inserting ‘‘85 percent’’;

12 (2) in paragraph (3)—

13 (A) in subparagraph (A)(i), by inserting

14 ‘‘or electronic’’ after ‘‘written’’;

15 (B) in subparagraph (B), by striking

16 ‘‘and’’ after the semicolon;

17 (C) in subparagraph (C), by striking the

18 period and inserting ‘‘; and’’; and

19 (D) by inserting before the matter follow20 ing subparagraph (C) the following:

21 ‘‘(D) shall contain provisions that specify

22 that forbearance for a period not to exceed 60

23 days may be granted if the lender determines

24 that such a suspension of collection activity is

25 warranted following a borrower’s request for
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•S 1882 IS

1 forbearance in order to collect or process appro2 priate supporting documentation related to the

3 request, and that during such period interest

4 shall not be capitalized.’’;

5 (3) by amending paragraph (6) to read as fol6 lows:

7 ‘‘(6) SECRETARY’S EQUITABLE SHARE.—For

8 the purpose of paragraph (2)(D), the Secretary’s eq9 uitable share of payments made by the borrower

10 shall be that portion of the payments remaining

11 after the guaranty agency with which the Secretary

12 has an agreement under this subsection has de13 ducted from such payments—

14 ‘‘(A) a percentage amount equal to the

15 complement of the reinsurance percentage in ef16 fect when payment in effect when payment

17 under the guaranty agreement was made with

18 respect to the loan; and

19 ‘‘(B) an amount equal to 24 percent of

20 such payments for use in accordance with sec21 tion 422B.’’;

22 (4) in paragraph (8)—

23 (A) by striking ‘‘(A) If’’ and inserting

24 ‘‘If’’; and

25 (B) by striking subparagraph (B); and
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•S 1882 IS

1 (5) in paragraph (9)—

2 (A) in subparagraph (A), by striking

3 ‘‘maintain a current minimum reserve level of

4 at least .5 percent’’ and inserting ‘‘maintain in

5 the agency’s Federal Student Loan Reserve

6 Fund established under section 422A a current

7 minimum reserve level of at least 0.25 percent’’;

8 (B) in subparagraph (C)—

9 (i) by striking ‘‘80 percent’’ and in10 serting ‘‘78 percent’’;

11 (ii) by striking ‘‘, as appropriate,’’;

12 and

13 (iii) by striking ‘‘30 working’’ and in14 serting ‘‘45 working’’;

15 (C) in subparagraph (E)—

16 (i) in clause (iv), by inserting ‘‘or’’

17 after the semicolon;

18 (ii) in clause (v), by striking ‘‘; or’’

19 and inserting a period; and

20 (iii) by striking clause (vi);

21 (D) in subparagraph (F), by amending

22 clause (vii) to read as follows:

23 ‘‘(vii) take any other action the Secretary

24 determines necessary to avoid disruption of the

25 student loan program, to ensure the continued
129

•S 1882 IS

1 availability of loans made under this part to

2 residents of each State in which the guaranty

3 agency did business, to ensure the full honoring

4 of all guarantees issued by the guaranty agency

5 prior to the Secretary’s assumption of the func6 tions of such agency, and to ensure the proper

7 servicing of loans guaranteed by the guaranty

8 agency prior to the Secretary’s assumption of

9 the functions of such agency.’’; and

10 (E) in subparagraph (K), by striking ‘‘and

11 the progress of the transition from the loan

12 programs under this part to the direct student

13 loan programs under part D of this title’’.

14 (d) PAYMENT FOR LENDER REFERRAL SERVICES.—

15 Subsection (e) of section 428 (20 U.S.C. 1078) is re16 pealed.

17 (e) PAYMENT OF CERTAIN COSTS.—Subsection (f) of

18 section 428 (20 U.S.C. 1078) is amended to read as fol19 lows:

20 ‘‘(f) PAYMENTS OF CERTAIN COSTS.—

21 ‘‘(1) PAYMENT FOR CERTAIN ACTIVITIES.—

22 ‘‘(A) IN GENERAL.—The Secretary, for

23 loans originated on or after October 1, 1998,

24 and in accordance with the provisions of this

25 paragraph, shall pay to each guaranty agency,
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•S 1882 IS

1 a loan processing and issuance fee equal to 0.65

2 percent of the total principal amount of the

3 loans on which insurance was issued under this

4 part during such fiscal year by such agency.

5 ‘‘(B) PAYMENT.—The payment required

6 by subparagraph (A) shall be paid on a quar7 terly basis. The guaranty agency shall be

8 deemed to have a contractual right against the

9 United States to receive payments according to

10 the provisions of this subparagraph. Payments

11 shall be made promptly and without administra12 tive delay to any guaranty agency submitting

13 an accurate and complete application therefore

14 under this subparagraph.’’.

15 (f) LENDERS-OF-LAST-RESORT.—Paragraph (3) of

16 section 428(j) (20 U.S.C. 1078(j)) is amended—

17 (1) in the paragraph heading, by striking ‘‘DUR18 ING TRANSITION TO DIRECT LENDING’’; and

19 (2) in subparagraph (A), by striking ‘‘during

20 the transition from the Federal Family Education

21 Loan Program under this part to the Federal Direct

22 Student Loan Program under part D of this title’’;

23 (g) DEFAULT AVERSION ASSISTANCE.—Subsection

24 (l) of section 428 (20 U.S.C. 1078) is amended to read

25 as follows:
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1 ‘‘(l) DEFAULT AVERSION ASSISTANCE.—

2 ‘‘(1) ASSISTANCE REQUIRED.—Upon receipt of

3 a proper request from the lender not earlier than the

4 60th nor later than the 90th day of delinquency, a

5 guaranty agency having an agreement with the Sec6 retary under subsection (c) shall engage in default

7 aversion activities designed to prevent the default by

8 a borrower on a loan covered by such agreement.

9 ‘‘(2) DEFAULT PREVENTION FEE REQUIRED.—

10 ‘‘(A) IN GENERAL.—A guaranty agency, in

11 accordance with the provisions of this para12 graph, may transfer from the Federal Student

13 Loan Reserve Fund to the Agency Operating

14 Fund a default prevention fee. Such fee shall be

15 paid for any loan on which a claim for default

16 has not been presented that the guaranty agen17 cy successfully brings into current repayment

18 status on or before the 210th day after the loan

19 becomes 60 days delinquent.

20 ‘‘(B) AMOUNT.—The default prevention

21 fee shall be equal to 1 percent of the total un22 paid principal and accrued interest on the loan

23 calculated at the time the request is submitted

24 by the lender. Such fee shall not be paid more

25 than once on any loan for which the guaranty
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•S 1882 IS

1 agency averts the default unless the borrower

2 remained current in payments for at least 24

3 months prior to the subsequent delinquency. A

4 guaranty agency may transfer such fees earned

5 under this subsection not more frequently than

6 monthly.

7 ‘‘(C) DEFINITION OF CURRENT REPAY8 MENT STATUS.—For the purpose of this para9 graph, the term ‘current repayment status’

10 means that the borrower is not delinquent, in

11 any respect, in the payment of principal and in12 terest on the loan at the time the guaranty

13 agency qualifies for the default prevention fee.’’.

14 (h) STATE SHARE OF DEFAULT COSTS.—Subsection

15 (n) of section 428 (20 U.S.C. 1078) is repealed.

16 SEC. 426. VOLUNTARY FLEXIBLE AGREEMENTS WITH GUAR17 ANTY AGENCIES.

18 Part B of title IV (20 U.S.C. 1071 et seq.) is amend19 ed by inserting after section 428 (20 U.S.C. 1078) the

20 following:

21 ‘‘SEC. 428A. VOLUNTARY FLEXIBLE AGREEMENTS WITH

22 GUARANTY AGENCIES.

23 ‘‘(a) VOLUNTARY AGREEMENTS.—

24 ‘‘(1) AUTHORITY.—The Secretary may enter

25 into a voluntary, flexible agreement, subject to para-
133

•S 1882 IS

1 graph (2), with guaranty agencies under this sec2 tion, in lieu of agreements with a guaranty agency

3 under subsections (b) and (c) of section 428. The

4 Secretary may waive or modify any requirement

5 under such subsections, except that the Secretary

6 may not waive any statutory requirement pertaining

7 to the terms and conditions attached to student

8 loans, default claim payments made to lenders, or

9 the prohibitions on inducements contained in section

10 428(b)(3).

11 ‘‘(2) ELIGIBILITY.—During fiscal years 1999,

12 2000, and 2001, the Secretary may enter into a vol13 untary, flexible agreement with not more than 6

14 guaranty agencies that had 1 or more agreements

15 with the Secretary under subsections (b) and (c) of

16 section 428 as of the day before the date of enact17 ment of the Higher Education Amendments of 1998.

18 Beginning in fiscal year 2002, any guaranty agency

19 or consortium thereof may enter into a similar

20 agreement with the Secretary.

21 ‘‘(3) REPORT REQUIRED.—Not later than Sep22 tember 30, 2001, the Secretary shall report to the

23 Committee on Labor and Human Resources of the

24 Senate and the Committee on Education and the

25 Workforce of the House of Representatives regard-
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•S 1882 IS

1 ing the impact that the voluntary flexible agree2 ments have had upon program integrity, program

3 and cost efficiencies, and the availability and deliv4 ery of student financial aid. Such report shall in5 clude—

6 ‘‘(A) a description of each voluntary flexi7 ble agreement and the performance goals estab8 lished by the Secretary for each agreement;

9 ‘‘(B) a list of participating guaranty agen10 cies and the specific statutory or regulatory

11 waivers provided to each guaranty agency;

12 ‘‘(C) a description of the standards by

13 which each agency’s performance under the

14 agency’s voluntary flexible agreement was as15 sessed and the degree to which each agency

16 achieved the performance standards; and

17 ‘‘(D) an analysis of the fees paid by the

18 Secretary, and the costs and efficiencies

19 achieved under each voluntary agreement.

20 ‘‘(b) TERMS OF AGREEMENT.—An agreement be21 tween the Secretary and a guaranty agency under this sec22 tion—

23 ‘‘(1) shall be developed by the Secretary, in con24 sultation with the guaranty agency, on a case-by

25 case basis;
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•S 1882 IS

1 ‘‘(2) may be secured by the parties;

2 ‘‘(3) may include provisions—

3 ‘‘(A) specifying the responsibilities of the

4 guaranty agency under the agreement, such

5 as—

6 ‘‘(i) administering the issuance of in7 surance on loans made under this part on

8 behalf of the Secretary;

9 ‘‘(ii) monitoring insurance commit10 ments made under this part;

11 ‘‘(iii) default aversion activities;

12 ‘‘(iv) review of default claims made by

13 lenders;

14 ‘‘(v) payment of default claims;

15 ‘‘(vi) collection of defaulted loans;

16 ‘‘(vii) adoption of internal systems of

17 accounting and auditing that are accept18 able to the Secretary, and reporting the re19 sult thereof to the Secretary in a timely

20 manner, and on an accurate, and auditable

21 basis;

22 ‘‘(viii) timely and accurate collection

23 and reporting of such other data as the

24 Secretary may require to carry out the

25 purposes of the programs under this title;
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•S 1882 IS

1 ‘‘(ix) monitoring of institutions and

2 lenders participating in the program under

3 this part;

4 ‘‘(x) the performance of other pro5 gram functions by the guaranty agency or

6 the agency’s affiliates; and

7 ‘‘(xi) informational outreach to

8 schools and students in support of access

9 to higher education;

10 ‘‘(B) regarding the fees the Secretary shall

11 pay, in lieu of revenues that the guaranty agen12 cy may otherwise receive under this part, to the

13 guaranty agency under the agreement, and

14 other funds that the guaranty agency may re15 ceive or retain under the agreement, except that

16 in no case may the cost to the Secretary of the

17 agreement, as reasonably projected by the Sec18 retary, exceed the cost to the Secretary, as

19 similarly projected, in the absence of the agree20 ment;

21 ‘‘(C) regarding the use of net revenues, as

22 described in the agreement under this section,

23 for such other activities in support of post24 secondary education as may be agreed to by the

25 Secretary and the guaranty agency;
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•S 1882 IS

1 ‘‘(D) regarding the standards by which the

2 guaranty agency’s performance of the agency’s

3 responsibilities under the agreement will be as4 sessed, and the consequences for a guaranty

5 agency’s failure to achieve a specified level of

6 performance on one or more performance

7 standards;

8 ‘‘(E) regarding the circumstances in which

9 a guaranty agency’s agreement under this sec10 tion may be ended in advance of the agency’s

11 expiration date;

12 ‘‘(F) regarding such other businesses, pre13 viously purchased or developed with reserve

14 funds, that relate to the program under this

15 part and in which the Secretary permits the

16 guaranty agency to engage; and

17 ‘‘(G) such other provisions as the Sec18 retary may determine to be necessary to protect

19 the United States from the risk of unreasonable

20 loss and to promote the purposes of this part;

21 and

22 ‘‘(4) shall provide for uniform lender participa23 tion with the guaranty agency under the terms of

24 the agreement.
138

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1 ‘‘(c) TERMINATION.—At the expiration or early ter2 mination of an agreement under this section, the Sec3 retary shall reinstate the guaranty agency’s prior agree4 ments under subsections (b) and (c) of section 428, sub5 ject only to such additional requirements as the Secretary

6 determines to be necessary in order to ensure the efficient

7 transfer of responsibilities between the agreement under

8 this section and the agreements under subsections (b) and

9 (c) of section 428, and including the guaranty agency’s

10 compliance with reserve requirements under sections 422

11 and 428.’’.

12 SEC. 427. FEDERAL PLUS LOANS.

13 Section 428B (20 U.S.C. 1078–2) is amended—

14 (1) by amending subsection (a) to read as fol15 lows:

16 ‘‘(a) AUTHORITY TO BORROW.—

17 ‘‘(1) AUTHORITY AND ELIGIBILITY.—Parents of

18 a dependent student shall be eligible to borrow funds

19 under this section in amounts specified in subsection

20 (b), if—

21 ‘‘(A) the parents do not have an adverse

22 credit history as determined pursuant to regula23 tions promulgated by the Secretary; and

24 ‘‘(B) the parents meet such other eligibility

25 criteria as the Secretary may establish by regu-
139

•S 1882 IS

1 lation, after consultation with guaranty agen2 cies, eligible lenders, and other organizations in3 volved in student financial assistance.

4 ‘‘(2) TERMS, CONDITIONS, AND BENEFITS.—

5 Except as provided in subsections (c), (d), and (e),

6 loans made under this section shall have the same

7 terms, conditions, and benefits as all other loans

8 made under this part.

9 ‘‘(3) SPECIAL RULE.—Whenever necessary to

10 carry out the provisions of this section, the terms

11 ‘‘student’’ and ‘‘borrower’’ as used in this part shall

12 include a parent borrower under this section.’’; and

13 (2) by adding at the end the following:

14 ‘‘(f) VERIFICATION OF IMMIGRATION STATUS AND

15 SOCIAL SECURITY NUMBER.—A parent who wishes to

16 borrow funds under this section shall be subject to ver17 ification of the parent’s—

18 ‘‘(1) immigration status in the same manner as

19 immigration status is verified for students under

20 section 484(g); and

21 ‘‘(2) social security number in the same manner

22 as social security numbers are verified for students

23 under section 484(p).’’.
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1 SEC. 428. FEDERAL CONSOLIDATION LOANS.

2 Section 428C(a)(3) (20 U.S.C. 1078–3(a)(3)) is

3 amended—

4 (1) by amending subparagraph (A) to read as

5 follows: ‘‘(A) For the purpose of this section, the

6 term ‘eligible borrower’ means a borrower who—

7 ‘‘(i) is not subject to a judgment secured

8 through litigation or an order for wage garnish9 ment under section 488A; or

10 ‘‘(ii) at the time of application for a con11 solidation loan—

12 ‘‘(I) is in repayment status;

13 ‘‘(II) is in a grace period preceding

14 repayment; or

15 ‘‘(III) is a defaulted borrower who has

16 made arrangements to repay the obligation

17 on the defaulted loans satisfactory to the

18 holders of the defaulted loans.’’; and

19 (2) in subparagraph (B)(i)—

20 (A) in subclause (I), by striking ‘‘and’’

21 after the semicolon;

22 (B) by redesignating subclause (II) as sub23 clause (III);

24 (C) by inserting after subclause (I) the fol25 lowing:
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•S 1882 IS

1 ‘‘(II) with respect to eligible student loans

2 received prior to the date of consolidation that

3 the borrower may wish to include with eligible

4 loans specified in subclause (I) in a later con5 solidation loan; and’’; and

6 (D) in subclause (III) (as redesignated by

7 subparagraph (B)—

8 (i) by striking ‘‘that loans’’ and in9 serting ‘‘with respect to loans’’; and

10 (ii) by inserting ‘‘that’’ before ‘‘may

11 be added’’.

12 SEC. 429. REQUIREMENTS FOR DISBURSEMENTS OF STU13 DENT LOANS.

14 Section 428G (20 U.S.C. 1078G) is amended—

15 (1) in subsection (a)(1), by striking ‘‘The pro16 ceeds’’ and inserting ‘‘Except for a loan made for

17 the final period of enrollment, that is less than an

18 academic year, in a student’s baccalaureate program

19 of study, at an institution with a cohort default rate

20 (as calculated under section 435(m)) that is 5 per21 cent or less, the proceeds’’; and

22 (2) in subsection (b)(1), by striking ‘‘The first’’

23 and inserting ‘‘Except for a loan made to a student

24 borrower entering an institution with a cohort de-
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•S 1882 IS

1 fault rate (as calculated under section 435(m)) of

2 less than 5 percent, the first’’.

3 SEC. 430. DEFAULT REDUCTION PROGRAM.

4 The heading for subsection (b) of section 428F (20

5 U.S.C. 1078–6) is amended by striking ‘‘SPECIAL RULE’’

6 and inserting ‘‘SATISFACTORY REPAYMENT ARRANGE7 MENTS TO RENEW ELIGIBILITY’’.

8 SEC. 431. UNSUBSIDIZED LOANS.

9 Section 428H (20 U.S.C. 1078–8) is amended—

10 (1) by amending subsection (b) to read as fol11 lows:

12 ‘‘(b) ELIGIBLE BORROWERS.—Any student meeting

13 the requirements for student eligibility under section 484

14 (including graduate and professional students as defined

15 in regulations promulgated by the Secretary) shall be enti16 tled to borrow an unsubsidized Stafford loan if the eligible

17 institution at which the student has been accepted for en18 rollment, or at which the student is in attendance, has—

19 ‘‘(1) determined and documented the student’s

20 need for the loan based on the student’s estimated

21 cost of attendance (as determined under section

22 472) and the student’s estimated financial assist23 ance, including a loan which qualifies for interest

24 subsidy payments under section 428; and

25 ‘‘(2) provided the lender a statement—
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•S 1882 IS

1 ‘‘(A) certifying the eligibility of the student

2 to receive a loan under this section and the

3 amount of the loan for which such student is el4 igible, in accordance with subsection (c); and

5 ‘‘(B) setting forth a schedule for disburse6 ment of the proceeds of the loan in install7 ments, consistent with the requirements of sec8 tion 428G.’’;

9 (2) in subsection (d)—

10 (A) in paragraph (2)—

11 (i) in the matter preceding subpara12 graph (A)—

13 (I) by inserting ‘‘, as defined in

14 section 481(d)(2),’’ after ‘‘academic

15 year’’; and

16 (II) by striking ‘‘or in any period

17 of 7 consecutive months, whichever is

18 longer,’’;

19 (ii) in subparagraph (C), by inserting

20 ‘‘and’’ after the semicolon; and

21 (iii) by inserting before the matter fol22 lowing subparagraph (C) the following:

23 ‘‘(D) in the case of a student enrolled in

24 coursework specified in sections 484(b)(3)(B)

25 and 484(b)(4)(B)—
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1 ‘‘(i) $4,000 for coursework necessary

2 for enrollment in an undergraduate degree

3 or certificate program, and $5,000 for

4 coursework necessary for enrollment in a

5 graduate or professional program; and

6 ‘‘(ii) $5,000 for coursework necessary

7 for a professional credential or certification

8 from a State required for employment as a

9 teacher in an elementary or secondary

10 school;’’; and

11 (B) in paragraph (3), by adding at the end

12 the following: ‘‘The maximum aggregate

13 amount shall not include interest capitalized

14 from an in-school period.’’; and

15 (3) in subsection (e)(6), by striking ‘‘10 year

16 repayment period under section 428(b)(1)(D)’’ and

17 inserting ‘‘repayment period under section

18 428(b)(9)’’.

19 SEC. 432. LOAN FORGIVENESS FOR TEACHERS.

20 Section 428J (20 U.S.C. 1078–10) is amended to

21 read as follows:

22 ‘‘SEC. 428J. LOAN FORGIVENESS FOR TEACHERS.

23 ‘‘(a) STATEMENT OF PURPOSE.—It is the purpose of

24 this section to encourage individuals to enter and continue

25 in the teaching profession.
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1 ‘‘(b) PROGRAM AUTHORIZED.—The Secretary is au2 thorized to carry out a program, through the holder of

3 the loan, of assuming the obligation to repay a loan made

4 under section 428 that is eligible for interest subsidy, for

5 any new borrower on or after the date of enactment of

6 the Higher Education Amendments of 1998, who—

7 ‘‘(1) has been employed as a full-time teacher

8 for 3 consecutive complete school years—

9 ‘‘(A) in a school that qualifies under sec10 tion 465(a)(2)(A) for loan cancellation for Per11 kins loan recipients who teach in such schools;

12 ‘‘(B) if employed as a secondary school

13 teacher, is teaching a subject area that is rel14 evant to the borrower’s academic major as cer15 tified by the chief administrative officer of the

16 public or nonprofit private secondary school in

17 which the borrower is employed; and

18 ‘‘(C) if employed as an elementary school

19 teacher, has demonstrated, in accordance with

20 State teacher certification or licensing require21 ments and as certified by the chief administra22 tive officer of the public or nonprofit private el23 ementary school in which the borrower is em24 ployed, knowledge and teaching skills in read-
146

•S 1882 IS

1 ing, writing, mathematics and other areas of

2 the elementary school curriculum; and

3 ‘‘(2) is not in default on a loan for which the

4 borrower seeks forgiveness.

5 ‘‘(c) REGULATIONS.—The Secretary is authorized to

6 issue such regulations as may be necessary to carry out

7 the provisions of this section.

8 ‘‘(d) LOAN REPAYMENT DURING CONTINUING

9 TEACHING SERVICE.—

10 ‘‘(1) IN GENERAL.—The Secretary shall assume

11 the obligation to repay through reimbursement to

12 the holder—

13 ‘‘(A) 30 percent of the total outstanding

14 amount and applicable interest of subsidized

15 Federal Stafford loans owed by the student bor16 rower after the completion of the fourth or fifth

17 complete school year of service described in sub18 section (b);

19 ‘‘(B) 40 percent of such total amount after

20 the completion of the sixth complete school year

21 of such service; and

22 ‘‘(C) a total amount for any borrower that

23 shall not exceed $10,000.
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1 ‘‘(2) CONSTRUCTION.—Nothing in this section

2 shall be construed to authorize any refunding of any

3 repayment of a loan.

4 ‘‘(e) LIST.—If the list of schools in which a teacher

5 may perform service pursuant to subsection (b) is not

6 available before May 1 of any year, the Secretary may use

7 the list for the year preceding the year for which the deter8 mination is made to make such service determination.

9 ‘‘(f) CONTINUED ELIGIBILITY.—Any teacher who

10 performs service in a school that—

11 ‘‘(1) meets the requirements of subsection

12 (b)(1)(A) in any year during such service; and

13 ‘‘(2) in a subsequent year fails to meet the re14 quirements of such subsection, may continue to

15 teach in such school and shall be eligible for loan

16 forgiveness pursuant to subsection (b).’’.

17 SEC. 433. COMMON FORMS AND FORMATS.

18 Section 432(m)(1) (20 U.S.C. 1082(m)(1)) is amend19 ed—

20 (1) in subparagraph (A), by striking ‘‘a com21 mon application form and promissory note’’ and in22 serting ‘‘common application forms and promissory

23 notes, or multiyear promissory notes,’’;

24 (2) by striking subparagraph (C);
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1 (3) by redesignating subparagraph (D) as sub2 paragraph (C); and

3 (4) in subparagraph (C) (as redesignated by

4 paragraph (3))—

5 (A) by inserting ‘‘, application and other’’

6 after ‘‘electronic’’; and

7 (B) by adding at the end the following:

8 ‘‘Guaranty agencies, borrowers, and lenders

9 may use electronically printed versions of com10 mon forms approved for use by the Secretary.’’.

11 SEC. 434. STUDENT LOAN INFORMATION BY ELIGIBLE

12 LENDERS.

13 Section 433 (20 U.S.C. 1083) is amended—

14 (1) in subsection (a), by amending the matter

15 preceding paragraph (1) to read as follows:

16 ‘‘(a) REQUIRED DISCLOSURE BEFORE DISBURSE17 MENT.—Each eligible lender shall, at or prior to the time

18 such lender disburses a loan that is insured or guaranteed

19 under this part (other than a loan made under section

20 428C), provide thorough and accurate loan information on

21 such loan to the borrower. Any disclosure required by this

22 subsection may be made by an eligible lender by written

23 or electronic means, including as part of the application

24 material provided to the borrower, as part of the promis25 sory note evidencing the loan, or on a separate written
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1 form provided to the borrower. Each lender shall provide

2 a telephone number, and may provide an electronic ad3 dress, to each borrower through which additional loan in4 formation can be obtained. The disclosure shall

5 include—’’; and

6 (2) in subsection (b), by amending the matter

7 preceding paragraph (1) to read as follows:

8 ‘‘(b) REQUIRED DISCLOSURE BEFORE REPAY9 MENT.—Each eligible lender shall, at or prior to the start

10 of the repayment period of the student borrower on loans

11 made, insured, or guaranteed under this part, disclose to

12 the borrower by written or electronic means the informa13 tion required under this subsection. Each eligible lender

14 shall provide a telephone number, and may provide an

15 electronic address, to each borrower through which addi16 tional loan information can be obtained. For any loan

17 made, insured, or guaranteed under this part, other than

18 a loan made under section 428B or 428C, such disclosure

19 required by this subsection shall be made not less than

20 30 days nor more than 240 days before the first payment

21 on the loan is due from the borrower. The disclosure shall

22 include—’’.

23 SEC. 435. DEFINITIONS.

24 (a) ELIGIBLE INSTITUTION.—Section 435(a) (20

25 U.S.C. 1085(a)) is amended—
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1 (1) in paragraph (2)—

2 (A) by adding after the matter following

3 subparagraph (A)(ii) the following:

4 ‘‘If an institution continues to participate in a pro5 gram under this part, and the institution’s appeal of

6 the loss of eligibility is unsuccessful, the institution

7 shall be required to pay to the Secretary an amount

8 equal to the amount of interest, special allowance,

9 reinsurance, and any related payments made by the

10 Secretary (or which the Secretary is obligated to

11 make) with respect to loans made under this part to

12 students attending, or planning to attend, that insti13 tution during the pendency of such appeal. In order

14 to continue to participate during an appeal under

15 this paragraph, the institution shall provide a letter

16 of credit in favor of the Secretary or other third17 party financial guarantees satisfactory to the Sec18 retary in an amount determined by the Secretary to

19 be sufficient to satisfy the institution’s potential li20 ability on such loans under the preceding sentence.’’;

21 and

22 (B) by amending subparagraph (C) to read

23 as follows:

24 ‘‘(C)(i) This paragraph shall not apply to any

25 institution described in clause (ii), and any such in-
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1 stitution that exceeds the threshold percentage in

2 subparagraph (A)(ii) for 2 consecutive years shall

3 submit to the Secretary a default management plan

4 satisfactory to the Secretary and containing criteria

5 designed, in accordance with the regulations of the

6 Secretary, to demonstrate continuous improvement

7 by the institution in the institution’s cohort default

8 rate. If the institution fails to submit the required

9 plan, or to satisfy the criteria in the plan, the insti10 tution shall be subject to a loss of eligibility in ac11 cordance with this paragraph, except as the Sec12 retary may otherwise specify in regulations.

13 ‘‘(ii) An institution referred to in clause (i) is—

14 ‘‘(I) a part B institution within the mean15 ing of section 322(2);

16 ‘‘(II) a tribally controlled community col17 lege within the meaning of section 2(a)(4) of

18 the Tribally Controlled Community College As19 sistance Act of 1978; or

20 ‘‘(III) a Navajo Community College under

21 the Navajo Community College Act.’’;

22 (2) in the matter following subparagraph (C)—

23 (A) by inserting ‘‘for a reasonable period

24 of time, not to exceed 30 days,’’ after ‘‘access’’;

25 and
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1 (B) by striking ‘‘of the affected guaranty

2 agencies and loan servicers for a reasonable pe3 riod of time, not to exceed 30 days’’ and insert4 ing ‘‘used by a guaranty agency in determining

5 whether to pay a claim on a defaulted loan’’;

6 and

7 (3) by adding at the end the following:

8 ‘‘(4) PARTICIPATION RATE INDEX.—

9 ‘‘(A) IN GENERAL.—An institution that

10 demonstrates to the Secretary that the institu11 tion’s participation rate index is equal to or less

12 than 0.0375 for any of the 3 applicable partici13 pation rate indices shall not be subject to para14 graph (2). The participation rate index shall be

15 determined by multiplying the institution’s co16 hort default rate for loans under part B or D,

17 or weighted average cohort rate for loans under

18 parts B and D, by the percentage of the institu19 tion’s regular students, enrolled on at least a

20 half-time basis, who received a loan made under

21 part B or D for a 12-month period ending dur22 ing the 6 months immediately preceding the fis23 cal year for which the cohort of borrowers used

24 to calculate the institution’s cohort default rate

25 is determined.
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1 ‘‘(B) DATA.—An institution shall provide

2 the Secretary with sufficient data to determine

3 the institution’s participation rate index within

4 30 days after receiving an initial notification of

5 the institution’s draft cohort default rate.

6 ‘‘(C) NOTIFICATION.—Prior to publication

7 of a final cohort default rate for an institution

8 that provides the data described in subpara9 graph (B), the Secretary shall notify the insti10 tution of the institution’s compliance or non11 compliance with subparagraph (A).’’.

12 (b) COHORT DEFAULT RATE.—Section

13 435(m)(1)(B) (20 U.S.C. 1085(m)(1)(B)) is amended by

14 striking ‘‘insurance, and, in considering appeals with re15 spect to cohort default rates pursuant to subsection (a)(3),

16 exclude’’ and inserting ‘‘insurance. In considering appeals

17 with respect to cohort default rates pursuant to subsection

18 (a)(3), the Secretary shall exclude, from the calculation

19 of the number of students who entered repayment and

20 from the calculation of the number of students who de21 fault,’’.

22 SEC. 436. DELEGATION OF FUNCTIONS.

23 Section 436 (20 U.S.C. 1086) is amended to read as

24 follows:
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1 ‘‘SEC. 436. DELEGATION OF FUNCTIONS.

2 ‘‘(a) IN GENERAL.—An eligible lender or guaranty

3 agency that contracts with another entity to perform any

4 of the lender’s or agency’s functions under this title, or

5 otherwise delegates the performance of such functions to

6 such other entity—

7 ‘‘(1) shall not be relieved of the lender’s or

8 agency’s duty to comply with the requirements of

9 this title; and

10 ‘‘(2) shall monitor the activities of such other

11 entity for compliance with such requirements.

12 ‘‘(b) SPECIAL RULE.—A lender that holds a loan

13 made under part B in the lender’s capacity as a trustee

14 is responsible for complying with all statutory and regu15 latory requirements imposed on any other holder of a loan

16 made under this part.’’.

17 SEC. 437. SPECIAL ALLOWANCES.

18 (a) AMENDMENTS.—Section 438 (20 U.S.C. 1087–

19 1) is amended—

20 (1) in subsection (c), by amending paragraph

21 (1) to read as follows:

22 ‘‘(1) DEDUCTION FROM INTEREST AND SPECIAL

23 ALLOWANCE SUBSIDIES.—(A) Notwithstanding sub24 section (b), the Secretary shall collect the amount

25 the lender is authorized to charge as an origination
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1 fee in accordance with paragraph (2) of this sub2 section—

3 ‘‘(i) by reducing the total amount of inter4 est and special allowance payable under section

5 428(a)(3)(A) and subsection (b) of this section,

6 respectively, to any holder; or

7 ‘‘(ii) directly from the holder of the loan,

8 if the lender fails or is not required to bill the

9 Secretary for interest and special allowance or

10 withdraws from the program with unpaid loan

11 origination fees.

12 ‘‘(B) If the Secretary collects the origination fee

13 under this subsection through the reduction of inter14 est and special allowance, and the total amount of

15 interest and special allowance payable under section

16 428(a)(3)(A) and subsection (b) of this section, re17 spectively, is less than the amount the lender was

18 authorized to charge borrowers for origination fees

19 in that quarter, the Secretary shall deduct the excess

20 amount from the subsequent quarters’ payments

21 until the total amount has been deducted.’’;

22 (2) in subsection (d), by amending paragraph

23 (1) to read as follows:

24 ‘‘(1) DEDUCTION FROM INTEREST AND SPECIAL

25 ALLOWANCE SUBSIDIES.—
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1 ‘‘(A) IN GENERAL.—Notwithstanding sub2 section (b), the Secretary shall collect a loan fee

3 in an amount determined in accordance with

4 paragraph (2)—

5 ‘‘(i) by reducing the total amount of

6 interest and special allowance payable

7 under section 428(a)(3)(A) and subsection

8 (b), respectively, to any holder of a loan; or

9 ‘‘(ii) directly from the holder of the

10 loan, if the lender—

11 ‘‘(I) fails or is not required to bill

12 the Secretary for interest and special

13 allowance payments; or

14 ‘‘(II) withdraws from the pro15 gram with unpaid loan fees.

16 ‘‘(B) SPECIAL RULE.—If the Secretary col17 lects loan fees under this subsection through

18 the reduction of interest and special allowance

19 payments, and the total amount of interest and

20 special allowance payable under section

21 428(a)(3)(A) and subsection (b), respectively, is

22 less than the amount of such loan fees, then the

23 Secretary shall deduct the amount of the loan

24 fee balance from the amount of interest and

25 special allowance payments that would other-
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1 wise be payable, in subsequent quarterly incre2 ments until the balance has been deducted.’’;

3 and

4 (3) in subsection (e)—

5 (A) by striking paragraphs (1) and (2);

6 and

7 (B) by redesignating paragraphs (3) and

8 (4) as paragraphs (1) and (2), respectively.

9 (b) CONFORMING AMENDMENT.—Section

10 432(f)(1)(D) is amended by striking ‘‘required to file a

11 plan for doing business under section 438(d)’’ and insert12 ing ‘‘that meets the requirements of section 438(e)’’.

13 SEC. 438. STUDY OF MARKET-BASED MECHANISMS FOR DE14 TERMINING STUDENT LOAN INTEREST

15 RATES.

16 (a) STUDY REQUIRED.—

17 (1) IN GENERAL.—The Secretary of the Treas18 ury shall conduct a study of the feasibility of em19 ploying market-based mechanisms, including some

20 form of auction, for determining student loan inter21 est rates under title IV of the Higher Education Act

22 of 1965 (20 U.S.C. 1070 et seq.). The study shall

23 include—
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1 (A) analysis of the potential impact of the

2 mechanisms on the delivery of student financial

3 aid;

4 (B) analysis of the implications of the

5 mechanisms with respect to student and institu6 tional access to student loan capital;

7 (C) analysis of the potential impact of the

8 mechanisms on the costs of the programs under

9 such title for students and the Federal Govern10 ment; and

11 (D) a plan for structuring and implement12 ing the mechanisms in such a manner that en13 sures the cost-effective availability of student

14 loans for students and their families.

15 (b) CONSULTATION.—In conducting the study de16 scribed in paragraph (1), the Secretary shall consult with

17 lenders, secondary markets, guaranty agencies, institu18 tions of higher education, student loan borrowers, and

19 other participants in the student loan programs under title

20 IV of the Higher Education Act of 1965 (20 U.S.C. 1070

21 et seq.).

22 (c) REPORT TO CONGRESS.—The Secretary of the

23 Treasury shall report to the Committee on Labor and

24 Human Resources of the Senate, and the Committee on

25 Education and the Workforce of the House of Representa-
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1 tives not later than September 30, 1999, regarding the

2 results of the study described in subsection (a).

3 PART C—FEDERAL WORK-STUDY PROGRAMS

4 SEC. 441. AUTHORIZATION OF APPROPRIATIONS; COMMU5 NITY SERVICES.

6 Section 441 (20 U.S.C. 2751) is amended—

7 (1) in subsection (b), by striking

8 ‘‘$800,000,000 for fiscal year 1993’’ and inserting

9 ‘‘$900,000,000 for fiscal year 1999’’; and

10 (2) in subsection (c)—

11 (A) in paragraph (1), by inserting ‘‘(in12 cluding child care services provided on cam13 pus)’’ after ‘‘child care’’; and

14 (B) in paragraph (3), by inserting ‘‘, in15 cluding students with disabilities who are en16 rolled at the institution’’ before the semicolon.

17 SEC. 442. GRANTS FOR FEDERAL WORK-STUDY PROGRAMS.

18 Section 443(b) (20 U.S.C. 2753(b)) is amended—

19 (1) by amending paragraph (3) to read as fol20 lows:

21 ‘‘(3) provide that in the selection of students

22 for employment under such work-study program,

23 only students who demonstrate financial need in ac24 cordance with part F of this title and meet the re25 quirements of section 484 will be assisted, except
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1 that if the institution’s grant under this part is di2 rectly or indirectly based in part on the financial

3 need demonstrated by students who are (A) attend4 ing the institution on less than a full-time basis, or

5 (B) independent students, a reasonable portion of

6 the allocation shall be made available to such stu7 dents;’’;

8 (2) in paragraph (5)—

9 (A) by striking ‘‘provide that’’ and insert10 ing ‘‘(A) provide that’’;

11 (B) by striking ‘‘1993–1994’’ and insert12 ing ‘‘1999–2000’’;

13 (C) by inserting ‘‘and’’ after the semicolon;

14 and

15 (D) by adding at the end the following:

16 ‘‘(B) provide that the Federal share of the com17 pensation of students employed in community service

18 shall not exceed 90 percent;’’; and

19 (3) in paragraph (6), by striking ‘‘, and to

20 make’’ and all that follows through ‘‘such employ21 ment’’.

22 SEC. 443. WORK COLLEGES.

23 Section 448 (20 U.S.C. 2756b) is amended—

24 (1) in subsection (b)(2)—
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1 (A) in subparagraph (C), by striking

2 ‘‘and’’ after the semicolon;

3 (B) in subparagraph (D)(ii), by striking

4 the period and inserting a semicolon; and

5 (C) by adding at the end the following:

6 ‘‘(E) coordinate and carry out joint

7 projects and activities to promote work service

8 learning; and

9 ‘‘(F) carry out a comprehensive, longitu10 dinal study of student academic progress and

11 academic and career outcomes, relative to stu12 dent self-sufficiency in financing their higher

13 education, repayment of student loans, contin14 ued community service, kind and quality of

15 service performed, and career choice and com16 munity service selected after graduation.’’; and

17 (2) in subsection (f), by striking ‘‘$5,000,000

18 for fiscal year 1993’’ and inserting ‘‘$7,000,000 for

19 fiscal year 1999’’.

20 PART D—WILLIAM D. FORD FEDERAL DIRECT

21 LOAN PROGRAM

22 SEC. 451. SELECTION OF INSTITUTIONS.

23 Section 453(c) (20 U.S.C. 1087c(c)) is amended—

24 (1) in paragraph (2)—
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1 (A) in the paragraph heading, by striking

2 ‘‘TRANSITION’’;

3 (B) by striking subparagraph (E); and

4 (C) by redesignating subparagraphs (F),

5 (G), and (H) as subparagraphs (E), (F), and

6 (G), respectively; and

7 (2) in paragraph (3)—

8 (A) in the paragraph heading, by striking

9 ‘‘AFTER TRANSITION’’; and

10 (B) by striking ‘‘For academic year 1995–

11 1996 and subsequent academic years, the’’ and

12 inserting ‘‘The’’.

13 SEC. 452. TERMS AND CONDITIONS.

14 (a) INTEREST RATES.—Section 455(b) (20 U.S.C.

15 1087e(b)) is amended to read as follows:

16 ‘‘(b) INTEREST RATE.—

17 ‘‘(1) RATES FOR FDSL AND FDUSL.—For Fed18 eral Direct Stafford/Ford Loans and Federal Direct

19 Unsubsidized Stafford/Ford Loans for which the

20 first disbursement is made on or after July 1, 1998,

21 the applicable rate of interest shall, during any 12-

22 month period beginning on July 1 and ending on

23 June 30, be determined on the preceding June 1

24 and be equal to—
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1 ‘‘(A) the bond equivalent rate of 91-day

2 Treasury bills auctioned at the final auction

3 held prior to such June 1; plus

4 ‘‘(B) 2.3 percent,

5 except that such rate shall not exceed 8.25 percent.

6 ‘‘(2) IN SCHOOL AND GRACE PERIOD RULES.—

7 With respect to any Federal Direct Stafford/Ford

8 Loan or Federal Direct Unsubsidized Stafford/Ford

9 Loan for which the first disbursement is made on or

10 after July 1, 1995, the applicable rate of interest for

11 interest which accrues—

12 ‘‘(A) prior to the beginning of the repay13 ment period of the loan; or

14 ‘‘(B) during the period in which principal

15 need not be paid (whether or not such principal

16 is in fact paid) by reason of a provision de17 scribed in section 428(b)(1)(M) or

18 427(a)(2)(C),

19 shall be determined under paragraph (1) by sub20 stituting ‘1.7 percent’ for ‘2.3 percent’.

21 ‘‘(3) PLUS LOANS.—With respect to Federal

22 Direct PLUS Loan for which the first disbursement

23 is made on or after July 1, 1998, the applicable rate

24 of interest shall be determined under paragraph

25 (1)—
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1 ‘‘(A) by substituting ‘3.1 percent’ for ‘2.3

2 percent’; and

3 ‘‘(B) by substituting ‘9.0 percent’ for ‘8.25

4 percent’.

5 ‘‘(4) PUBLICATION.—The Secretary shall deter6 mine the applicable rates of interest under this sub7 section after consultation with the Secretary of the

8 Treasury and shall publish such rate in the Federal

9 Register as soon as practicable after the date of de10 termination.’’.

11 (b) EFFECTIVE DATE.—The amendments made by

12 this section shall apply with respect to any loan made

13 under part D of title IV of the Higher Education Act of

14 1965 for which the first disbursement is made on or after

15 July 1, 1998.

16 SEC. 453. CONTRACTS.

17 Section 456(b) (20 U.S.C. 1087f(b)) is amended—

18 (1) in paragraph (3), by inserting ‘‘and’’ after

19 the semicolon;

20 (2) by striking paragraph (4); and

21 (3) by redesignating paragraph (5) as para22 graph (4).

23 SEC. 454. FUNDS FOR ADMINISTRATIVE EXPENSES.

24 Section 458 (20 U.S.C. 1087h) is amended—
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1 (1) by amending subsection (a) to read as fol2 lows:

3 ‘‘(a) ADMINISTRATIVE EXPENSES.—

4 ‘‘(1) IN GENERAL.—Each fiscal year there shall

5 be available to the Secretary, from funds not other6 wise appropriated, funds to be obligated for—

7 ‘‘(A) administrative costs under this part

8 and part B, including the costs of the direct

9 student loan programs under this part; and

10 ‘‘(B) account maintenance fees payable to

11 guaranty agencies under part B and calculated

12 in accordance with paragraph (2), not to exceed

13 (from such funds not otherwise appropriated)

14 $626,000,000 in fiscal year 1999,

15 $726,000,000 in fiscal year 2000,

16 $770,000,000 in fiscal year 2001,

17 $780,000,000 in fiscal year 2002, and

18 $795,000,000 in fiscal year 2003.

19 ‘‘(2) ACCOUNT MAINTENANCE FEES.—Account

20 maintenance fees under subparagraph (B) shall be

21 paid quarterly and deposited in the Agency Operat22 ing Fund established under section 422B.

23 ‘‘(3) CARRYOVER.—The Secretary may carry

24 over funds made available under this section to a

25 subsequent fiscal year.’’; and
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1 (2) by amending subsection (b) to read as fol2 lows:

3 ‘‘(b) CALCULATION BASIS.—Account maintenance

4 fees payable to guaranty agencies under paragraph (1)(B)

5 shall be calculated—

6 ‘‘(1) for fiscal years 1999 and 2000, on the

7 basis of 0.12 percent of the original principal

8 amount of outstanding loans on which insurance was

9 issued under part B; and

10 ‘‘(2) for fiscal year 2001, 2002, and 2003, on

11 the basis of 0.10 percent of the original principal

12 amount of outstanding loans on which insurance was

13 issued under part B.’’.

14 SEC. 455. LOAN CANCELLATION FOR TEACHERS.

15 Part D of title IV (20 U.S.C. 1087a et seq.) is

16 amended by adding at the end the following:

17 ‘‘SEC. 459. LOAN CANCELLATION FOR TEACHERS.

18 ‘‘(a) STATEMENT OF PURPOSE.—It is the purpose of

19 this section to encourage individuals to enter and continue

20 in the teaching profession.

21 ‘‘(b) PROGRAM AUTHORIZED.—The Secretary is au22 thorized to carry out a program of canceling the obligation

23 to repay a Federal Direct Stafford/Ford Loan made under

24 this part that is eligible for an interest subsidy, for any
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1 new borrower on or after the date of enactment of the

2 Higher Education Amendments of 1998, who—

3 ‘‘(1) has been employed as a full-time teacher

4 for 3 consecutive complete school years—

5 ‘‘(A) in a school that qualifies under sec6 tion 465(a)(2)(A) for loan cancellation for Per7 kins loan recipients who teach in such schools;

8 ‘‘(B) if employed as a secondary school

9 teacher, is teaching a subject area that is rel10 evant to the borrower’s academic major as cer11 tified by the chief administrative officer of the

12 public or non-profit private secondary school in

13 which the borrower is employed; and

14 ‘‘(C) if employed as an elementary school

15 teacher, has demonstrated, in accordance with

16 State teacher certification or licensing require17 ments and as certified by the chief administra18 tive officer of the public or nonprofit private el19 ementary school in which the borrower is em20 ployed, knowledge and teaching skills in read21 ing, writing, mathematics and other areas of

22 the elementary school curriculum; and

23 ‘‘(2) is not in default on a loan for which the

24 borrower seeks forgiveness.
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1 ‘‘(c) REGULATIONS.—The Secretary is authorized to

2 issue such regulations as may be necessary to carry out

3 the provisions of this section.

4 ‘‘(d) LOAN CANCELLATION DURING CONTINUING

5 TEACHING SERVICE.—

6 ‘‘(1) IN GENERAL.—The Secretary shall cancel

7 the obligation to repay—

8 ‘‘(A) 30 percent of the total outstanding

9 amount and applicable interest of subsidized

10 Federal Direct Stafford/Ford loans owed by the

11 student borrower after the completion of the

12 fourth or fifth complete school year of service

13 described in subsection (b);

14 ‘‘(B) 40 percent of such total amount after

15 the completion of the sixth complete school year

16 of such service; and

17 ‘‘(C) a total amount for any borrower that

18 shall not exceed $ 10,000.

19 ‘‘(2) CONSTRUCTION.—Nothing in this section

20 shall be construed to authorize any refunding of any

21 canceled loan.

22 ‘‘(e) LIST.—If the list of schools in which a teacher

23 may perform service pursuant to subsection (b) is not

24 available before May 1 of any year, the Secretary may use
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1 the list for the year preceding the year for which the deter2 mination is made to make such service determination.

3 ‘‘(f) CONTINUED ELIGIBILITY.—Any teacher who

4 performs service in a school that—

5 ‘‘(1) meets the requirements of subsection

6 (b)(1)(A) in any year during such service; and

7 ‘‘(2) in a subsequent year fails to meet the re8 quirements of such subsection, may continue to

9 teach in such school and shall be eligible for loan

10 cancellation pursuant to subsection (b).’’.

11 PART E—FEDERAL PERKINS LOANS

12 SEC. 461. AUTHORIZATION OF APPROPRIATIONS.

13 Subsection (b) of section 461 (20 U.S.C. 1087aa) is

14 amended by striking ‘‘1993’’ and inserting ‘‘1999’’.

15 SEC. 462. ALLOCATION OF FUNDS.

16 (a) AMENDMENTS.—Section 462 (20 U.S.C. 1087bb)

17 is amended—

18 (1) in the matter preceding subparagraph (A)

19 of subsection (d)(3), by striking ‘‘the Secretary, for’’

20 and all that follows through ‘‘years,’’;

21 (2) by amending subsection (f) to read as fol22 lows:

23 ‘‘(f) DEFAULT PENALTIES.—

24 ‘‘(1) IN GENERAL.—For fiscal year 1998 and

25 any succeeding fiscal year, any institution with a co-
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1 hort default rate (as defined under subsection (h))

2 that equals or exceeds 25 percent shall have a de3 fault penalty of zero.

4 ‘‘(2) INELIGIBILITY.—

5 ‘‘(A) IN GENERAL.—For fiscal year 1998

6 and any succeeding fiscal year, any institution

7 with a cohort default rate (as defined in sub8 section (h)) that equals or exceeds 50 percent

9 for each of the 3 most recent years for which

10 data are available shall not be eligible to par11 ticipate in a program under this part for the

12 fiscal year for which the determination is made

13 and the 2 succeeding fiscal years, unless, within

14 30 days of receiving notification from the Sec15 retary of the loss of eligibility under this para16 graph, the institution appeals the loss of eligi17 bility to the Secretary. The Secretary shall

18 issue a decision on any such appeal within 45

19 days after the submission of the appeal. Such

20 decision may permit the institution to continue

21 to participate in a program under this part if—

22 ‘‘(i) the institution demonstrates to

23 the satisfaction of the Secretary that the

24 Secretary’s calculation of the institution’s

25 cohort default rate is not accurate, and
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1 that recalculation would reduce the institu2 tion’s cohort default rate for any of the 3

3 fiscal years below 50 percent; or

4 ‘‘(ii) there are, in the judgment of the

5 Secretary, exceptional mitigating cir6 cumstances such as a small number of bor7 rowers entering repayment, that would

8 make the application of this subparagraph

9 inequitable.

10 ‘‘(B) CONTINUED PARTICIPATION.—Dur11 ing an appeal under subparagraph (A), the Sec12 retary may permit the institution to continue to

13 participate in a program under this part.

14 ‘‘(C) DEFINITION.—For the purposes of

15 subparagraph (A), the term ‘loss of eligibility’

16 shall be defined as the mandatory liquidation of

17 an institution’s student loan fund, and assign18 ment of the institution’s outstanding loan port19 folio to the Secretary.’’;

20 (3) by amending paragraph (1) of subsection

21 (g) to read as follows: ‘‘(1) For award year 1998

22 and subsequent years, the maximum cohort default

23 rate is 25 percent.’’; and

24 (4) in subsection (h)—
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1 (A) in the subsection heading, by striking

2 ‘‘DEFINITIONS OF DEFAULT RATE AND’’ and

3 inserting ‘‘DEFINITION OF’’;

4 (B) by striking paragraphs (1) and (2);

5 (C) by redesignating paragraphs (3) and

6 (4) as paragraphs (1) and (2), respectively;

7 (D) in paragraph (1) (as redesignated by

8 subparagraph (C)—

9 (i) by striking subparagraph (B); and

10 (ii) by redesignating subparagraphs

11 (C) through (G) as subparagraphs (B)

12 through (F), respectively; and

13 (E) in the matter preceding subparagraph

14 (A) of paragraph (2) (as redesignated by sub15 paragraph (C)), by striking ‘‘A loan’’ and in16 serting ‘‘For purposes of calculating the cohort

17 default rate under this subsection, a loan’’.

18 (b) CONFORMING AMENDMENTS.—Section 462 (20

19 U.S.C. 1087bb) is amended—

20 (1) in the matter following paragraphs (1)(B)

21 and (2)(D)(ii) of subsection (a), by inserting ‘‘co22 hort’’ before ‘‘default’’ each place the term appears;

23 (2) in the matter following paragraphs (2)(B)

24 and (3)(C) of subsection (c), by inserting ‘‘cohort’’

25 before ‘‘default’’ each place the term appears;
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1 (3) in subsection (e)(2), by inserting ‘‘cohort’’

2 before ‘‘default’’; and

3 (4) in subsection (h)(1)(F) (as redesignated by

4 subparagraphs (C) and (D)(ii) of subsection (a)(4)),

5 by inserting ‘‘cohort’’ before ‘‘default’’.

6 SEC. 463. AGREEMENTS WITH INSTITUTIONS OF HIGHER

7 EDUCATION.

8 Section 463 (20 U.S.C. 1087cc) is amended—

9 (1) by amending subparagraph (B) of sub10 section (a)(2) to read as follows:

11 ‘‘(B) a capital contribution by an institu12 tion in an amount equal to one-third of the

13 Federal capital contributions described in sub14 paragraph (A);’’;

15 (2) in subsection (c)—

16 (A) in paragraph (2)—

17 (i) in the matter preceding subpara18 graph (A), by striking ‘‘by the Secretary’’

19 and all that follows through ‘‘of—’’ and in20 serting ‘‘by the Secretary or an institution,

21 as the case may be, to such organizations,

22 with respect to any loan held by the Sec23 retary or the institution, respectively,

24 of—’’;
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1 (ii) by amending subparagraph (A) to

2 read as follows:

3 ‘‘(A) the date of disbursement and the

4 amount of such loans made to any borrower

5 under this part at the time of disbursement of

6 the loan;’’;

7 (iii) in subparagraph (B)—

8 (I) by inserting ‘‘the repayment

9 and’’ after ‘‘concerning’’; and

10 (II) by striking ‘‘any defaulted’’

11 and inserting ‘‘such’’; and

12 (iv) in subparagraph (C), by inserting

13 ‘‘, or upon cancellation or discharge of the

14 borrower’s obligation on the loan for any

15 reason’’ before the period;

16 (B) in paragraph (3)—

17 (i) in the matter preceding subpara18 graph (A), by striking ‘‘until—’’ and in19 serting ‘‘until the loan is paid in full.’’; and

20 (ii) by striking subparagraphs (A) and

21 (B); and

22 (C) by amending paragraph (4) to read as

23 follows:

24 ‘‘(4)(A) Except as provided in subparagraph

25 (B), an institution of higher education, after con-
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1 sultation with the Secretary and pursuant to the

2 agreements entered into under paragraph (1), shall

3 disclose at least annually to any credit bureau orga4 nization with which the Secretary has such an agree5 ment the information set forth in paragraph (2), and

6 shall disclose promptly to such credit bureau organi7 zation any changes to the information previously dis8 closed.

9 ‘‘(B) The Secretary may promulgate regulations

10 establishing criteria under which an institution of

11 higher education may cease reporting the informa12 tion described in paragraph (2) before a loan is paid

13 in full.’’.

14 SEC. 464. TERMS OF LOANS.

15 Section 464 (20 U.S.C. 1087dd) is amended—

16 (1) in subsection (a), by amending paragraph

17 (2) to read as follows:

18 ‘‘(2)(A) Except as provided in paragraph (4),

19 the total of loans made to a student in any academic

20 year or its equivalent by an institution of higher

21 education from a loan fund established pursuant to

22 an agreement under this part shall not exceed—

23 ‘‘(i) $4,000, in the case of a student who

24 has not successfully completed a program of un25 dergraduate education; or
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1 ‘‘(ii) $6,000, in the case of a graduate or

2 professional student (as defined in regulations

3 issued by the Secretary).

4 ‘‘(B) Except as provided in paragraph (4), the

5 aggregate of the loans for all years made to a stu6 dent by institutions of higher education from loan

7 funds established pursuant to agreements under this

8 part may not exceed—

9 ‘‘(i) $40,000, in the case of any graduate

10 or professional student (as defined by regula11 tions issued by the Secretary, and including any

12 loans from such funds made to such person be13 fore such person became a graduate or profes14 sional student);

15 ‘‘(ii) $20,000, in the case of a student who

16 has successfully completed 2 years of a program

17 of education leading to a bachelor’s degree but

18 who has not completed the work necessary for

19 such a degree (determined under regulations

20 issued by the Secretary, and including any

21 loans from such funds made to such person be22 fore such person became such a student); and

23 ‘‘(iii) $8,000, in the case of any other stu24 dent.
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1 ‘‘(C)(i) The total of loans made to a student de2 scribed in clause (ii) in any academic year or its

3 equivalent by an institution of higher education from

4 loan funds established pursuant to agreements under

5 this part may not exceed—

6 ‘‘(I) $8,000 for each of the third and

7 fourth years of the program of instruction lead8 ing to a bachelor’s degree; or

9 ‘‘(II) $10,000 for the first year of grad10 uate study (as defined in regulations issued by

11 the Secretary).

12 ‘‘(ii) A student referred to in clause (i) is any

13 student—

14 ‘‘(I) who is a junior in a program of in15 struction leading to a bachelor’s degree;

16 ‘‘(II) who states in writing that the stu17 dent will pursue a course of study to become an

18 elementary or secondary school teacher; and

19 ‘‘(III) who states in writing that the stu20 dent intends to become a full-time teacher in a

21 school which meets the requirements of section

22 465(a)(2)(A).

23 ‘‘(iii) Each institution shall provide a report to

24 the Secretary annually containing the number of

25 loans under this subparagraph that are made, the
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1 amount of each loan, and whether students benefit2 ing from the higher loan limits met the requirements

3 for receiving those loans.

4 ‘‘(iv) If 3 years after the date of enactment of

5 the Higher Education Amendments of 1998, the

6 Secretary determines that an institution has engaged

7 in a pattern of abuse of this subparagraph, the Sec8 retary may reduce or terminate the institution’s

9 Federal capital contribution.’’;

10 (2) in subsection (b), by amending paragraph

11 (2) to read as follows:

12 ‘‘(2) If the institution’s capital contribution

13 under section 462 is directly or indirectly based in

14 part on the financial need demonstrated by students

15 who are (A) attending the institution less than full

16 time; or (B) independent students, a reasonable por17 tion of the loans made from the institution’s student

18 loan fund containing the contribution shall be made

19 available to such students.’’;

20 (3) in subsection (c)(1)—

21 (A) in subparagraph (D), by striking ‘‘(i)

22 3 percent’’ and all that follows through ‘‘or

23 (iii)’’;
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1 (B) by redesignating subparagraphs (H)

2 and (I) as subparagraphs (I) and (J), respec3 tively; and

4 (C) by inserting after subparagraph (G)

5 the following:

6 ‘‘(H) shall provide that, in the case of a

7 loan made on or after July 1, 1999, the loan

8 shall be considered in default (except as other9 wise provided in section 462(h)) if the borrower

10 of a loan made under this part fails to make an

11 installment payment when due, or to meet any

12 other term of the promissory note or written re13 payment agreement, and such failure persists

14 for—

15 ‘‘(i) 180 days in the case of a loan

16 that is repayable in monthly installments;

17 or

18 ‘‘(ii) 240 days in the case of a loan

19 that is repayable in less frequent install20 ments;’’; and

21 (4) by adding at the end the following:

22 ‘‘(g) DISCHARGE.—

23 ‘‘(1) IN GENERAL.—If a student borrower who

24 received a loan made under this part on or after

25 January 1, 1986, is unable to complete the program
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1 in which such student is enrolled due to the closure

2 of the institution, then the Secretary shall discharge

3 the borrower’s liability on the loan (including the in4 terest and collection fees) by repaying the amount

5 owed on the loan and shall subsequently pursue any

6 claim available to such borrower against the institu7 tion and the institution’s affiliates and principals, or

8 settle the loan obligation pursuant to the financial

9 responsibility standards described in section 498(c).

10 ‘‘(2) ASSIGNMENT.—A borrower whose loan has

11 been discharged pursuant to this subsection shall be

12 deemed to have assigned to the United States the

13 right to a loan refund in an amount that does not

14 exceed the amount discharged against the institution

15 and the institution’s affiliates and principals.

16 ‘‘(3) ELIGIBILITY FOR ADDITIONAL ASSIST17 ANCE.—The period during which a student was un18 able to complete a course of study due to the closing

19 of the institution shall not be considered for pur20 poses of calculating the student’s period of eligibility

21 for additional assistance under this title.

22 ‘‘(4) SPECIAL RULE.—A borrower whose loan

23 has been discharged pursuant to this subsection

24 shall not be precluded, because of that discharge,

25 from receiving additional grant, loan, or work assist-
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1 ance under this title for which the borrower would

2 be otherwise eligible (but for the default on the dis3 charged loan). The amount discharged under this

4 subsection shall not be considered income for pur5 poses of the Internal Revenue Code of 1986.

6 ‘‘(5) REPORTING.—The Secretary or institu7 tion, as the case may be, shall report to credit bu8 reaus with respect to loans that have been dis9 charged pursuant to this subsection.

10 ‘‘(h) REHABILITATION OF LOANS.—

11 ‘‘(1) REHABILITATION.—

12 ‘‘(A) IN GENERAL.—If the borrower of a

13 loan made under this part who has defaulted on

14 the loan makes 12 ontime, consecutive, monthly

15 payments of amounts owed on the loan, as de16 termined by the institution, the loan shall be

17 considered rehabilitated, and the institution

18 that made that loan (or the Secretary, in the

19 case of a loan held by the Secretary) shall in20 struct any credit bureau organization or credit

21 reporting agency to which the default was re22 ported to remove the default from the borrow23 er’s credit history.

24 ‘‘(B) COMPARABLE CONDITIONS.—As long

25 as the borrower continues to make scheduled
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1 repayments on a loan rehabilitated under this

2 paragraph, the rehabilitated loan shall be sub3 ject to the same terms and conditions, and

4 qualify for the same benefits and privileges, as

5 other loans made under this part.

6 ‘‘(C) ADDITIONAL ASSISTANCE.—The bor7 rower of a rehabilitated loan shall not be pre8 cluded by section 484 from receiving additional

9 grant, loan, or work assistance under this title

10 (for which the borrower is otherwise eligible) on

11 the basis of defaulting on the loan prior to such

12 rehabilitation.

13 ‘‘(D) LIMITATIONS.—A borrower only once

14 may obtain the benefit of this paragraph with

15 respect to rehabilitating a loan under this part.

16 ‘‘(2) RESTORATION OF ELIGIBILITY.—If the

17 borrower of a loan made under this part who has de18 faulted on that loan makes 6 ontime, consecutive,

19 monthly payments of amounts owed on such loan,

20 the borrower’s eligibility for grant, loan, or work as21 sistance under this title shall be restored. A bor22 rower only once may obtain the benefit of this para23 graph with respect to restored eligibility.

24 ‘‘(i) INCENTIVE REPAYMENT PROGRAM.—
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1 ‘‘(1) IN GENERAL.—Each institution of higher

2 education may establish, with the approval of the

3 Secretary, an incentive repayment program designed

4 to reduce default and to replenish student loan

5 funds established under this part. Each such incen6 tive repayment program may—

7 ‘‘(A) offer a reduction of the interest rate

8 on a loan on which the borrower has made 48

9 consecutive monthly repayments, but in no

10 event may the rate be reduced by more than 1

11 percent;

12 ‘‘(B) provide for a discount on the balance

13 owed on a loan on which the borrower pays the

14 principal and interest in full prior to the end of

15 the applicable repayment period, but in no

16 event may the discount exceed 5 percent of the

17 unpaid principal balance due on the loan at the

18 time the early repayment is made; and

19 ‘‘(C) include such other incentive repay20 ment options as the institution determines will

21 carry out the objectives of this subsection.

22 ‘‘(2) LIMITATION.—No incentive repayment op23 tion under an incentive repayment program author24 ized by this subsection may be paid for with Federal

25 funds, including any Federal funds from the student
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1 loan fund, nor can an incentive repayment option be

2 paid for with institutional funds from the student

3 loan fund.’’.

4 SEC. 465. DISTRIBUTION OF ASSETS FROM STUDENT LOAN

5 FUNDS.

6 Section 466 (20 U.S.C. 1087ff) is amended—

7 (1) in subsection (a)—

8 (A) in the matter preceding paragraph

9 (1)—

10 (i) by striking ‘‘1996’’ and inserting

11 ‘‘2003’’; and

12 (ii) by striking ‘‘1997’’ and inserting

13 ‘‘2004’’; and

14 (B) in paragraph (1), by striking ‘‘1996’’

15 and inserting ‘‘2003’’;

16 (2) in subsection (b)—

17 (A) by striking ‘‘2005’’ and inserting

18 ‘‘2012’’; and

19 (B) by striking ‘‘1996’’ and inserting

20 ‘‘2003’’; and

21 (3) in subsection (c), by striking ‘‘1997’’ and

22 inserting ‘‘2004’’.

23 SEC. 466. PERKINS REVOLVING FUND.

24 (a) REPEAL.—Section 467 (20 U.S.C. 1087gg) is re25 pealed.
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1 (b) TRANSFER OF BALANCE.—Any funds in the Per2 kins Revolving Loan Fund on the date of enactment of

3 this Act shall be transferred to and deposited in the Treas4 ury.

5 PART F—NEED ANALYSIS

6 SEC. 471. COST OF ATTENDANCE.

7 Section 472 (20 U.S.C. 1087ll) is amended—

8 (1) in paragraph (3)—

9 (A) in subparagraph (A), by striking ‘‘of

10 not less than $1,500’’ and inserting ‘‘deter11 mined by the institution’’; and

12 (B) in subparagraph (C), by striking ‘‘, ex13 cept that the amount may not be less than

14 $2,500’’; and

15 (2) in paragraph (11), by striking ‘‘placed’’ and

16 inserting ‘‘engaged’’.

17 SEC. 472. FAMILY CONTRIBUTION FOR DEPENDENT STU18 DENTS.

19 Section 475 (20 U.S.C. 1087oo) is amended—

20 (1) in subsection (g)—

21 (A) in paragraph (2)—

22 (i) in subparagraph (D)—

23 (I) by striking ‘‘$1,750’’ and in24 serting ‘‘$2,200’’; and
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1 (II) by striking ‘‘and’’ after the

2 semicolon;

3 (ii) in subparagraph (E), by striking

4 the period and inserting ‘‘; and’’; and

5 (iii) by adding at the end the follow6 ing:

7 ‘‘(F) an allowance for parents’ negative

8 available income, determined in accordance with

9 paragraph (6).’’; and

10 (B) by adding at the end the following:

11 ‘‘(6) ALLOWANCE FOR PARENTS’ NEGATIVE

12 AVAILABLE INCOME.—The allowance for parents’

13 negative available income is the negative amount, if

14 any, remaining after all allowances have been sub15 tracted from parents’ total income under subsection

16 (c)(1).’’; and

17 (2) by adding at the end the following:

18 ‘‘(j) ADJUSTMENTS TO STUDENTS CONTRIBUTION

19 FOR ENROLLMENT PERIODS OF LESS THAN NINE

20 MONTHS.—For periods of enrollment of less than 9

21 months, the student’s contribution from adjusted available

22 income (as determined under subsection (g)) is deter23 mined, for purposes other than subpart 2 of part A, by

24 dividing the amount determined under such subsection by
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1 9, and multiplying the result by the number of months

2 in the period of enrollment.’’.

3 SEC. 473. FAMILY CONTRIBUTION FOR INDEPENDENT STU4 DENTS WITHOUT DEPENDENTS OTHER THAN

5 A SPOUSE.

6 Section 476(b)(1)(A)(iv) (20 U.S.C.

7 1087pp(b)(1)(A)(iv)) is amended—

8 (1) in subclause (I), by striking ‘‘$3,000’’ and

9 inserting ‘‘$4,250’’;

10 (2) in subclause (II), by striking ‘‘$3,000’’ and

11 inserting ‘‘$4,250’’; and

12 (3) in subclause (III), by striking ‘‘$6,000’’ and

13 inserting ‘‘$7,250’’.

14 SEC. 474. REGULATIONS; UPDATED TABLES AND AMOUNTS.

15 Section 478(b) (20 U.S.C. 1087rr(b)) is amended—

16 (1) by striking ‘‘For each academic year’’ and

17 inserting the following:

18 ‘‘(1) REVISED TABLES.—For each academic

19 year’’; and

20 (2) by adding at the end the following new

21 paragraph:

22 ‘‘(2) REVISED AMOUNTS.—For each academic

23 year after academic year 1997–1998, the Secretary

24 shall publish in the Federal Register revised income

25 protection allowances for the purpose of sections
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1 475(g)(2)(D) and 476(b)(1)(A)(iv). Such revised al2 lowances shall be developed by increasing each of the

3 dollar amounts contained in such section by a per4 centage equal to the estimated percentage increase

5 in the Consumer Price Index (as determined by the

6 Secretary) between December 1996 and the Decem7 ber next preceding the beginning of such academic

8 year, and rounding the result to the nearest $10.’’.

9 SEC. 475. REFUSAL OR ADJUSTMENT OF LOAN CERTIFI10 CATIONS.

11 Subsection (c) of section 479A (20 U.S.C. 1087tt)

12 is amended to read as follows:

13 ‘‘(c) REFUSAL OR ADJUSTMENT OF LOAN CERTIFI14 CATIONS.—An eligible institution may refuse to certify a

15 statement that permits a student to receive a loan under

16 part B, or refuse to make a loan under part D, or may

17 certify a loan amount or make a loan that is less than

18 the student’s determination of need (as determined under

19 this part), if the reason for the action is documented and

20 provided in written form to the student. No eligible insti21 tution shall discriminate against any borrower or applicant

22 in obtaining a loan on the basis of race, national origin,

23 religion, sex, marital status, age, or disability status.’’.
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1 PART G—GENERAL PROVISIONS

2 SEC. 481. MASTER CALENDAR.

3 Section 482 (20 U.S.C. 1089) is amended—

4 (1) in subsection (a), by adding at the end the

5 following:

6 ‘‘(3) To the extent feasible, the Secretary shall

7 notify eligible institutions and vendors by December

8 1 prior to the start of an award year of minimal

9 hardware and software requirements necessary to

10 administer programs under this title.’’; and

11 (2) by amending subsection (c) to read as fol12 lows:

13 ‘‘(c) DELAY OF EFFECTIVE DATE OF LATE PUBLI14 CATIONS.—(1) Except as provided in paragraph (2), any

15 regulatory changes initiated by the Secretary affecting the

16 programs under this title that have not been published in

17 final form by November 1 prior to the start of the award

18 year shall not become effective until the beginning of the

19 second award year after such November 1 date.

20 ‘‘(2)(A) The Secretary may designate any regulatory

21 provision that affects the programs under this title and

22 is published in final form after November 1 as one that

23 an entity subject to the provision may, in the entity’s dis24 cretion, choose to implement prior to the effective date de25 scribed in paragraph (1). The Secretary may specify in

26 the designation when, and under what conditions, an en-
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1 tity may implement the provision prior to that effective

2 date. The Secretary shall publish any designation under

3 this subparagraph in the Federal Register.

4 ‘‘(B) If an entity chooses to implement a regulatory

5 provision prior to the effective date described in paragraph

6 (1), as permitted by subparagraph (A), the provision shall

7 be effective with respect to that entity in accordance with

8 the terms of the Secretary’s designation.’’.

9 SEC. 482. FORMS AND REGULATIONS.

10 Section 483 (20 U.S.C. 1090) is amended—

11 (1) in subsection (a)—

12 (A) in the subsection heading, by striking

13 ‘‘FORM’’ and inserting ‘‘FORM DEVELOPMENT’’;

14 (B) by amending paragraph (1) to read as

15 follows:

16 ‘‘(1) SINGLE FORM REQUIREMENTS.—The Sec17 retary, in cooperation with representatives of agen18 cies and organizations involved in student financial

19 assistance, shall produce, distribute, and process free

20 of charge a common financial reporting form (which

21 shall include electronic versions of the form) to be

22 used—

23 ‘‘(A) to determine the need (including the

24 expected family contribution and, if appro25 priate, cost of attendance) and eligibility of a
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1 student for financial assistance under parts A,

2 C, D, and E; and

3 ‘‘(B) to determine the need (including the

4 expected family contribution and cost of attend5 ance) of a student for the purposes of part B.

6 ‘‘(2) STATE DATA ITEMS.—The Secretary shall

7 include on the form developed under this subsection

8 such data items, selected in consultation with the

9 States to assist the States in awarding State student

10 financial assistance, as the Secretary determines are

11 appropriate for inclusion.

12 ‘‘(3) PARENT’S SOCIAL SECURITY NUMBER.—

13 The Secretary shall include on the form developed

14 under this paragraph space for the social security

15 number of parents of dependent students seeking fi16 nancial assistance under this title.

17 ‘‘(4) USE.—The Secretary shall require that

18 the form developed under this paragraph be used for

19 the purpose of collecting eligibility and other data

20 for purposes of part B, including the applicant’s

21 choice of lender.’’; and

22 (C) in paragraph (3)—

23 (i) by striking ‘‘Institutions of higher

24 education and States shall receive’’ and in25 serting ‘‘The Secretary shall provide’’; and
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1 (ii) by striking ‘‘by the Secretary’’;

2 and

3 (2) by adding at the end the following:

4 ‘‘(g) PAYMENT FOR DATA.—The Secretary may pay

5 such charges as the Secretary determines are necessary

6 to obtain data that the Secretary considers essential to

7 the efficient administration of the programs under this

8 title.

9 ‘‘(h) MULTIYEAR PROMISSORY NOTE.—The Sec10 retary shall require, for loans made under this title for

11 periods of enrollment beginning on or after July 1, 2000,

12 the use of a promissory note applicable to more than 1

13 academic year, or more than 1 type of loan made under

14 this title. Prior to implementing this subsection, the Sec15 retary shall develop and test such a promissory note on

16 a limited or pilot basis.’’.

17 SEC. 483. STUDENT ELIGIBILITY.

18 Section 484 (20 U.S.C. 1091) is amended—

19 (1) in subsection (d)—

20 (A) in the matter preceding paragraph (1),

21 by striking ‘‘either’’; and

22 (B) by adding at the end the following:

23 ‘‘(3) The student has completed a high school

24 education in a home school setting and has met any
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1 State requirements with respect to such education in

2 a home school setting.’’; and

3 (2) by adding at the end the following:

4 ‘‘(q) VERIFICATION OF IRS RETURN INFORMA5 TION.—The Secretary shall verify the information re6 ported by all applicants for assistance on the form pre7 scribed under section 483 with the return information (as

8 defined in section 6103 of the Internal Revenue Code of

9 1986) available to the Secretary of the Treasury. Notwith10 standing section 6103 of such Code the Secretary of the

11 Treasury shall provide the return information to the Sec12 retary. In the case of a dependent student the return in13 formation shall include the return information of the par14 ent of the student. The form prescribed by the Secretary

15 under section 483 shall contain a prominent notice of the

16 verification of the information and a warning to all the

17 applicants of the penalties for misrepresentation, with re18 spect to the information, under the United States Code.

19 SEC. 484. INSTITUTIONAL REFUNDS.

20 Section 484B (20 U.S.C. 1091b) is amended—

21 (1) in subsection (b)—

22 (A) in paragraph (1), by inserting ‘‘or’’

23 after the semicolon;

24 (B) by striking paragraph (2); and
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1 (C) by redesignating paragraph (3) as

2 paragraph (2); and

3 (2) in subsection (c)—

4 (A) in paragraph (1), by striking ‘‘last day

5 of attendance by the student’’ and inserting

6 ‘‘day the student withdrew’’;

7 (B) in subparagraph (A) of paragraph (2),

8 by striking ‘‘last recorded day of attendance by

9 the student’’ and inserting ‘‘day the student

10 withdrew’’; and

11 (C) by adding at the end the following:

12 ‘‘(3) For the purpose of this section, the term

13 ‘day a student withdrew’—

14 ‘‘(A) is the date that was the last recorded

15 day of attendance by the student; or

16 ‘‘(B) in instances where attendance is not

17 recorded, is the date on which—

18 ‘‘(i) the student began the withdrawal

19 process prescribed by the institution; or

20 ‘‘(ii) the student otherwise provided

21 notification to the institution of the intent

22 to withdraw.’’.
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1 SEC. 485. INSTITUTIONAL AND FINANCIAL ASSISTANCE IN2 FORMATION FOR STUDENTS.

3 (a) INFORMATION DISSEMINATION ACTIVITIES.—

4 Section 485(a) (20 U.S.C. 1092(a)) is amended—

5 (1) in paragraph (1)—

6 (A) in the second sentence, by striking

7 ‘‘and mailings, to all current’’ and inserting ‘‘,

8 mailings, and electronic media, to all enrolled’’;

9 and

10 (B) by inserting after the second sentence

11 the following: ‘‘Each eligible institution annu12 ally shall provide to all students enrolled at the

13 institution, a list of the information that is re14 quired by this section, together with a state15 ment of the procedures required to obtain the

16 information.’’;

17 (2) in paragraph (2), by inserting ‘‘an applica18 tion for’’ after ‘‘concerning’’; and

19 (3) in paragraph (3)—

20 (A) in the matter preceding subparagraph

21 (A)—

22 (i) by inserting ‘‘(graduation rates)’’

23 after ‘‘this subsection’’; and

24 (ii) by inserting ‘‘(student right-to25 know)’’ after ‘‘subsection (e)’’; and
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1 (B) by amending subparagraph (A) to read

2 as follows:

3 ‘‘(A) shall be made available by July 1

4 each year to current and prospective students

5 prior to enrolling or entering into any financial

6 obligation; and’’.

7 (b) EXIT COUNSELING FOR BORROWERS.—Section

8 485(b) (20 U.S.C. 1092(b)) is amended—

9 (1) in paragraph (1)(A), by striking ‘‘(individ10 ually or in groups)’’; and

11 (2) in paragraph (2), by adding at the end the

12 following:

13 ‘‘(C) Nothing in this subsection shall be construed to

14 prohibit an institution of higher education from utilizing

15 electronic means to provide personalized exit counseling.’’.

16 (c) DISCLOSURES REQUIRED WITH RESPECT TO

17 ATHLETICALLY RELATED STUDENT AID.—Section 485(e)

18 (20 U.S.C. 1092(e)) is amended—

19 (1) by amending paragraph (2) to read as fol20 lows:

21 ‘‘(2) When an institution described in para22 graph (1) offers a potential student athlete athlet23 ically related student aid, such institution shall pro24 vide to the student, the student’s parents, the stu25 dent’s guidance counselor, and the student’s coach
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1 the information contained in the report submitted by

2 such institution pursuant to paragraph (1). If the

3 institution is a member of a national collegiate ath4 letic association that compiles graduation rate data

5 on behalf of its member institutions, that the Sec6 retary determines is substantially comparable to the

7 information described in the previous sentence, the

8 distribution of the compilation to all secondary

9 schools shall fulfill the responsibility of the institu10 tion to provide the information to a prospective stu11 dent athlete’s guidance counselor and coach.’’; and

12 (2) by amending paragraph (9) to read as fol13 lows:

14 ‘‘(9) The reports required by this subsection

15 shall be due each July 1 and shall cover the 1-year

16 period ending August 31 of the preceding year.’’.

17 (d) DISCLOSURE OF CAMPUS SECURITY POLICY AND

18 CAMPUS CRIME STATISTICS.—Section 485(f) (20 U.S.C.

19 1092(f)) is amended—

20 (1) by amending subparagraph (F) of para21 graph (1) to read as follows:

22 ‘‘(F) Statistics concerning the occurrence

23 on campus, during the most recent calendar

24 year, and during the 2 preceding calendar years

25 for which data are available—
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1 ‘‘(i) of the following criminal offenses

2 reported to campus security authorities or

3 local police agencies—

4 ‘‘(I) homicide, including murder

5 or nonnegligent manslaughter or neg6 ligent manslaughter;

7 ‘‘(II) sex offenses, forcible or

8 nonforcible;

9 ‘‘(III) robbery;

10 ‘‘(IV) aggravated assault;

11 ‘‘(V) burglary;

12 ‘‘(VI) motor vehicle theft; and

13 ‘‘(VII) arson;

14 ‘‘(ii) of the crimes described in sub15 clauses (I) through (VII), and vandalism

16 and simple assault, that manifest evidence

17 of prejudice based on actual or perceived

18 race, gender, religion, sexual orientation,

19 ethnicity, or disability that are reported to

20 campus security authorities or local police

21 agencies, which data shall be collected and

22 reported according to category of preju23 dice.’’;

24 (2) by redesignating paragraphs (4) through

25 (7) as paragraphs (5) through (8), respectively;
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1 (3) by inserting after paragraph (3) the follow2 ing:

3 ‘‘(4)(A) Each institution participating in any

4 program under this title which maintains either a

5 police or security department of any kind shall

6 make, keep, and maintain a daily log, written in a

7 form that can be easily understood, recording all

8 crimes reported to such police or security depart9 ment, including—

10 ‘‘(i) the nature, date, time, and general lo11 cation of each crime; and

12 ‘‘(ii) the disposition of the complaint, if

13 known.

14 ‘‘(B)(i) All entries that are required pursuant

15 to this paragraph shall, except where disclosure of

16 such information is prohibited by law or such disclo17 sure would jeopardize the confidentiality of the vic18 tim, be open to public inspection within 2 business

19 days of the initial report being made to the depart20 ment or a campus security authority.

21 ‘‘(ii) If new information about an entry into a

22 log becomes available to a police or security depart23 ment, then the new information shall be recorded in

24 the log not later than 2 business days after the in-
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1 formation becomes available to the police or security

2 department.

3 ‘‘(iii) Where there is clear and convincing evi4 dence that the release of such information would

5 jeopardize an ongoing criminal investigation or the

6 safety of an individual, cause a suspect to flee or

7 evade detection, or result in the destruction of evi8 dence, such information may be withheld until that

9 damage is no longer likely to occur from the release

10 of such information.

11 ‘‘(iv) Notwithstanding clause (iii), an institution

12 of higher education shall record all criminal inci13 dents occurring on campus and shall make the re14 ports open to public inspection not later than 2 busi15 ness days after the requirements of clause (iii) are

16 met.’’;

17 (4) in paragraph (7) (as redesignated by sub18 paragraph (B)), by inserting at the end the follow19 ing: ‘‘Such statistics shall not identify victims of

20 crimes or persons accused of crimes, except as per21 mitted by State or local law.’’; and

22 (5) by adding at the end the following:

23 ‘‘(9) STUDY.—

24 ‘‘(A) IN GENERAL.—The Secretary, in con25 sultation with the Attorney General, shall pro-
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1 vide for a national study to examine procedures

2 undertaken after an institution of higher edu3 cation receives a report of sexual assault.

4 ‘‘(B) REPORT.—The study required by

5 subparagraph (A) shall include an analysis of—

6 ‘‘(i) the existence and publication of

7 the institution of higher education’s and

8 State’s definition of sexual assault;

9 ‘‘(ii) the existence and publication of

10 the institution’s policy for campus sexual

11 assaults;

12 ‘‘(iii) the individuals to whom reports

13 of sexual assault are given most often

14 and—

15 ‘‘(I) how the individuals are

16 trained to respond to the reports; and

17 ‘‘(II) the extent to which the in18 dividuals are trained;

19 ‘‘(iv) the reporting options that are

20 articulated to the victim or victims of the

21 sexual assault regarding—

22 ‘‘(I) on-campus reporting and

23 procedure options; and

24 ‘‘(II) off-campus reporting and

25 procedure options;
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1 ‘‘(v) the resources available for vic2 tims’ safety, support, medical health, and

3 confidentiality, including—

4 ‘‘(I) how well the resources are

5 articulated both specifically to the vic6 tim of sexual assault and generally to

7 the campus at large; and

8 ‘‘(II) the security of the re9 sources in terms of confidentiality or

10 reputation;

11 ‘‘(vi) policies and practices that may

12 prevent or discourage the reporting of

13 campus sexual assaults to local crime au14 thorities, or that may otherwise obstruct

15 justice or interfere with the prosecution of

16 perpetrators of campus sexual assaults;

17 ‘‘(vii) policies and practices found suc18 cessful in aiding the report and any ensu19 ing investigation or prosecution of a cam20 pus sexual assault;

21 ‘‘(viii) the on-campus procedures for

22 investigation and disciplining the perpetra23 tor of a sexual assault, including—

24 ‘‘(I) the format for collecting evi25 dence; and
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1 ‘‘(II) the format of the investiga2 tion and disciplinary proceeding, in3 cluding the faculty responsible for

4 running the disciplinary procedure

5 and the persons allowed to attend the

6 disciplinary procedure; and

7 ‘‘(ix) types of punishment for offend8 ers, including—

9 ‘‘(I) whether the case is directed

10 outside for further punishment; and

11 ‘‘(II) how the institution pun12 ishes perpetrators.

13 ‘‘(C) SUBMISSION OF REPORT.—The re14 port required by subparagraph (B) shall be sub15 mitted to Congress not later than September 1,

16 1999.

17 ‘‘(D) DEFINITION.—For purposes of this

18 section, the term ‘campus sexual assaults’

19 means sexual assaults occurring at institutions

20 of higher education and sexual assaults commit21 ted against or by students or employees of such

22 institutions.

23 ‘‘(E) AUTHORIZATION OF APPROPRIA24 TIONS.—There is authorized to be appropriated
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1 to carry out this section $1,000,000 for fiscal

2 year 1999.’’.

3 (e) DATA REQUIRED.—Section 485(g) (20 U.S.C.

4 1092(g)) is amended—

5 (1) in paragraph (1), by adding at the end the

6 following:

7 ‘‘(I)(i) The total revenues, and the reve8 nues from football, men’s basketball, women’s

9 basketball, all other men’s sports combined, and

10 all other women’s sports combined, derived by

11 the institution from the institution’s intercolle12 giate athletics activities.

13 ‘‘(ii) For the purpose of clause (i) revenues

14 from intercollegiate athletics activities allocable

15 to a sport shall include, without limitation, gate

16 receipts, broadcast revenues, appearance guar17 antees and options, concessions and advertising,

18 except that revenues such as student activities

19 fees or alumni contributions not so allocable

20 shall be included in the calculation of total reve21 nues only.

22 ‘‘(J)(i) The total expenses, and the ex23 penses attributable to football, men’s basketball,

24 women’s basketball, all other men’s sports com25 bined and all other women’s sports combined,
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1 made by the institution for the institution’s

2 intercollegiate athletics activities.

3 ‘‘(ii) For the purpose of clause (i) expenses

4 for intercollegiate athletics activities allocable to

5 a sport shall include without limitation grants6 in-aid, salaries, travel, equipment, and supplies,

7 except that expenses such as general and ad8 ministrative overhead not so allocable shall be

9 included in the calculation of total expenses

10 only.

11 ‘‘(K) A statement of any reduction that

12 will, or is likely to, occur during the ensuing 4

13 academic years in the number of athletes that

14 will be permitted to participate in any collegiate

15 sport, or in the financial resources that the in16 stitution will make available for any such sport,

17 and the reasons for any such reduction, to the

18 extent the reduction is known at the time of the

19 preparation of the report.’’; and

20 (2) by striking paragraph (5).’’.

21 (f) GEPA AMENDMENT.—Section 444(a)(4)(B) of

22 the General Education Provisions Act (20 U.S.C.

23 1232g(a)(4)(B)) is amended—

24 (1) by redesignating clauses (iii) and (iv) as

25 clauses (iv) and (v), respectively; and
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1 (2) by inserting after clause (ii) the following:

2 ‘‘(iii) records that are maintained by

3 local police or campus security officers of

4 an educational agency or institution

5 about—

6 ‘‘(I) individuals who have been

7 found guilty of, or have pled guilty to,

8 committing or participating in any

9 criminal activity as defined in Fed10 eral, State, or local law that has oc11 curred while the individual was a stu12 dent in attendance, including audit or

13 noncredit, at an educational institu14 tion; and

15 ‘‘(II) findings of guilt of criminal

16 misconduct and related sanctions from

17 any previously attended educational

18 agencies or institutions where such

19 records were created on or after Sep20 tember 1, 1999, and that are main21 tained by the institution currently or

22 most recently attended by the individ23 ual;’’.
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1 SEC. 486. NATIONAL STUDENT LOAN DATA BANK SYSTEM.

2 Section 485B (20 U.S.C. 1092b) is amended by add3 ing at the end the following:

4 ‘‘(h) STUDENT STATUS CONFIRMATION REPORT.—In

5 order to reduce unnecessary paperwork and to increase the

6 efficient administration, the Secretary shall assure that

7 borrowers under part E are included in the Student Status

8 Confirmation Report in the same manner as borrowers

9 under parts B and D.’’.

10 SEC. 487. TRAINING IN FINANCIAL AID SERVICES.

11 Section 486 (20 U.S.C. 1093) is amended to read as

12 follows:

13 ‘‘SEC. 486. INFORMATION ON THE COSTS OF HIGHER EDU14 CATION.

15 ‘‘(a) IN GENERAL.—For the purpose of providing

16 comparative information to families about the costs of

17 higher education—

18 ‘‘(1) the National Center for Education Statis19 tics shall—

20 ‘‘(A) develop a standard definition for the

21 following data elements:

22 ‘‘(i) Tuition and fees.

23 ‘‘(ii) Total cost of attendance, includ24 ing costs such as housing, books, supplies,

25 and transportation.
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1 ‘‘(iii) Average amount of financial as2 sistance received by a student who attends

3 an institution of higher education, in terms

4 of the following:

5 ‘‘(I) Grants and loans.

6 ‘‘(II) Institutional and other as7 sistance.

8 ‘‘(iv) Percentage of students receiving

9 student financial assistance, in terms of

10 the following:

11 ‘‘(I) Grants and loans.

12 ‘‘(II) Institutional and other as13 sistance;

14 ‘‘(B) report the definitions to each institu15 tion of higher education and the Committee on

16 Labor and Human Resources of the Senate and

17 the Committee on Education and the Workforce

18 of the House of Representatives not later than

19 90 days after the date of enactment of the

20 Higher Education Amendments of 1998;

21 ‘‘(C) collect information regarding the data

22 elements described in subparagraph (A) with

23 respect to all institutions of higher education,

24 and make available the information each year in

25 a timely fashion through the integrated post-
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1 secondary education data system, beginning

2 with the information from the 1999–2000 aca3 demic year;

4 ‘‘(D) provide the public notice when the in5 formation described in subparagraph (C) is

6 available for public inspection; and

7 ‘‘(E) publish in a timely fashion a report

8 after the third year of collection of the informa9 tion described in subparagraph (C) that com10 pares the information described in subpara11 graph (C) longitudinally by institution, which

12 information shall be presented in a form that is

13 easily understandable, including clear defini14 tions of the data elements described in subpara15 graph (A), to allow parents and students to

16 make informed decisions about attending col17 lege; and

18 ‘‘(2) institutions of higher education shall pro19 vide information regarding each data element de20 scribed in paragraph (1)(A) to the National Center

21 for Education Statistics by March 1 of each year,

22 beginning in the year 2000.

23 ‘‘(b) STUDY.—

24 ‘‘(1) IN GENERAL.—In consultation with the

25 Bureau of Labor Statistics, the National Center for
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•S 1882 IS

1 Education Statistics shall conduct a national study

2 of expenditures at institutions of higher education.

3 Such study shall include information about—

4 ‘‘(A) expenditures for—

5 ‘‘(i) faculty salaries and benefits;

6 ‘‘(ii) administrative salaries, benefits,

7 and expenses;

8 ‘‘(iii) academic support services;

9 ‘‘(iv) research;

10 ‘‘(v) construction; and

11 ‘‘(vi) technology;

12 ‘‘(B) how such expenditures change over

13 time; and

14 ‘‘(C) how such expenditures relate to col15 lege costs.

16 ‘‘(2) FINAL REPORT.—The National Center for

17 Education Statistics shall submit a report regarding

18 the findings of the study required by paragraph (1)

19 to the Committee on Labor and Human Resources

20 of the Senate and the Committee on Education and

21 the Workforce of the House of Representatives not

22 later than September 30, 2001.

23 ‘‘(c) HIGHER EDUCATION MARKET BASKET.—In

24 consultation with the Bureau of Labor Statistics, the Na25 tional Center for Education Statistics shall develop a
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1 Higher Education Market Basket that identifies the items

2 that comprise the costs of higher education. The National

3 Center for Education Statistics shall provide a report on

4 the basket to the Committee on Labor and Human Re5 sources of the Senate and the Committee on Education

6 and the Workforce of the House of Representatives not

7 later than September 30, 2002.’’.

8 SEC. 488. PROGRAM PARTICIPATION AGREEMENTS.

9 Section 487 (20 U.S.C. 1094) is amended—

10 (1) in subsection (a)—

11 (A) in paragraph (3)—

12 (i) by striking subparagraph (B); and

13 (ii) by redesignating subparagraphs

14 (C) and (D) as subparagraphs (B) and

15 (C), respectively;

16 (B) in paragraph (9), by striking ‘‘part B’’

17 and inserting ‘‘part B or D’’;

18 (C) in paragraph (14)—

19 (i) in subparagraph (A), by striking

20 ‘‘part B’’ and inserting ‘‘part B or D’’;

21 and

22 (ii) in subparagraph (B)—

23 (I) by inserting ‘‘for-profit’’ after

24 ‘‘Any’’;
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1 (II) by striking ‘‘and any eligible

2 institution which’’ and inserting ‘‘or’’;

3 and

4 (III) by striking ‘‘part B’’ and

5 inserting ‘‘part B or D’’;

6 (D) in paragraph (15), by striking ‘‘State

7 review entities’’ and inserting ‘‘the State agen8 cies’’; and

9 (E) by amending paragraph (21) to read

10 as follows:

11 ‘‘(21) The institution will meet the require12 ments established by the Secretary and accrediting

13 agencies or associations, and will provide evidence to

14 the Secretary that the institution has the authority

15 to operate within a State.’’; and

16 (2) in subsection (c)—

17 (A) in paragraph (1)(A)(i), by striking

18 ‘‘State review entities referred to in’’ and in19 serting ‘‘appropriate State agency notifying the

20 Secretary under’’;

21 (B) in paragraph (4), by striking ‘‘, after

22 consultation with each State review entity des23 ignated under subpart 1 of part H,’’; and
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•S 1882 IS

1 (C) in paragraph (5), by striking ‘‘State

2 review entities designated’’ and inserting ‘‘State

3 agencies notifying the Secretary’’.

4 SEC. 489. REGULATORY RELIEF AND IMPROVEMENT.

5 Section 487A (20 U.S.C. 1094a) is amended to read

6 as follows:

7 ‘‘SEC. 487A. REGULATORY RELIEF AND IMPROVEMENT.

8 ‘‘(a) QUALITY ASSURANCE PROGRAM.—

9 ‘‘(1) IN GENERAL.—The Secretary is authorized

10 to select institutions for voluntary participation in a

11 Quality Assurance Program that provides participat12 ing institutions with an alternative management ap13 proach through which individual schools develop and

14 implement their own comprehensive systems, includ15 ing processing and disbursement of student financial

16 aid, verification of student financial aid application

17 data, and entrance and exit interviews, thereby en18 hancing program integrity within the student aid de19 livery system. The Quality Assurance Program au20 thorized by this section shall be based on criteria

21 that include demonstrated institutional performance,

22 as determined by the Secretary, and shall take into

23 consideration current quality assurance goals, as de24 termined by the Secretary.
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1 ‘‘(2) WAIVER.—The Secretary is authorized to

2 waive for any institution participating in the Quality

3 Assurance Program any regulations dealing with re4 porting or verification requirements in this title that

5 are addressed by the institution’s alternative man6 agement system, and may substitute such quality as7 surance reporting as the Secretary determines nec8 essary to ensure accountability and compliance with

9 the purposes of the programs under this title.

10 ‘‘(3) DETERMINATION.—The Secretary is au11 thorized to determine—

12 ‘‘(A) when an institution that is unable to

13 administer the Quality Assurance Program

14 shall be removed from such program; and

15 ‘‘(B) when institutions desiring to cease

16 participation in such program will be required

17 to complete the current award year under the

18 requirements of the Quality Assurance Pro19 gram.

20 ‘‘(4) REVIEW AND EVALUATION.—The Sec21 retary shall review and evaluate the Quality Assur22 ance Program conducted by each participating insti23 tution and, on the basis of that evaluation, make

24 recommendations regarding amendments to this Act

25 that will streamline the administration and enhance
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•S 1882 IS

1 the integrity of Federal student assistance programs.

2 Such recommendations shall be submitted to the

3 Committee on Labor and Human Resources of the

4 Senate and the Committee on Education and the

5 Workforce of the House of Representatives.

6 ‘‘(b) REGULATORY IMPROVEMENT AND STREAMLIN7 ING EXPERIMENTS.—

8 ‘‘(1) IN GENERAL.—The Secretary shall review

9 and evaluate the experience of institutions partici10 pating as experimental sites during the period of

11 1993 through 1998 under this section (as such sec12 tion was in effect on the day before the date of en13 actment of the Higher Education Amendments of

14 1998), and shall submit a report based on this re15 view and evaluation to the Committee on Labor and

16 Human Resources of the Senate and the Committee

17 on Education and the Workforce of the House of

18 Representatives not later than 6 months after the

19 enactment of the Higher Education Amendments of

20 1998. Such report shall include—

21 ‘‘(A) a list of participating institutions and

22 the specific statutory or regulatory waivers

23 granted to each institution;
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•S 1882 IS

1 ‘‘(B) the findings and conclusions reached

2 regarding each of the experiments conducted;

3 and

4 ‘‘(C) recommendations for amendments to

5 improve and streamline this Act, based on the

6 results of the experiment.

7 ‘‘(2) SELECTION.—

8 ‘‘(A) IN GENERAL.—The Secretary is au9 thorized to select a limited number of institu10 tions for voluntary participation as experi11 mental sites to provide recommendations to the

12 Secretary on the impact and effectiveness of

13 proposed regulations or new management initia14 tives, except that additional institutions may

15 not be selected by the Secretary until the report

16 required by subsection (b)(1) has been submit17 ted to Congress.

18 ‘‘(B) CONSULTATION.—Prior to approving

19 any additional experimental sites, the Secretary

20 shall consult with the Committee on Labor and

21 Human Resources of the Senate and the Com22 mittee on Education and the Workforce of the

23 House of Representatives and shall provide—

24 ‘‘(i) a list of institutions proposed for

25 participation in the experiment and the
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•S 1882 IS

1 specific statutory or regulatory waivers

2 proposed to be granted to each institution;

3 ‘‘(ii) the objectives to be achieved

4 through the experiment; and

5 ‘‘(iii) the period of time over which

6 the experiment is to be conducted.

7 ‘‘(C) WAIVERS.—The Secretary is author8 ized to waive, for any institution participating

9 as an experimental site under subparagraph

10 (A), any requirements in this title, or regula11 tions prescribed under this title, that will bias

12 experimental results.

13 ‘‘(c) DEFINITIONS.—For purposes of this section, the

14 term ‘current award year’ is defined as the award year

15 during which the participating institution indicates the in16 stitution’s intention to cease participation.’’.

17 SEC. 489A. DISTANCE EDUCATION DEMONSTRATION PRO18 GRAMS.

19 Part G (20 U.S.C. 1088 et seq.) is amended by in20 serting after section 487B (20 U.S.C. 1094a) the follow21 ing:

22 ‘‘SEC. 487C. DISTANCE EDUCATION DEMONSTRATION PRO23 GRAMS.

24 ‘‘(a) PURPOSE.—It is the purpose of this section—
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1 ‘‘(1) to allow demonstration programs that are

2 strictly monitored by the Department to test the

3 quality and viability of expanded distance education

4 programs currently restricted under this Act;

5 ‘‘(2) to help determine the specific statutory

6 and regulatory requirements which should be altered

7 to provide greater access to high quality distance

8 education programs; and

9 ‘‘(3) to help determine the appropriate level of

10 Federal assistance for students enrolled in distance

11 education programs.

12 ‘‘(b) DEMONSTRATION PROGRAMS AUTHORIZED.—

13 ‘‘(1) IN GENERAL.—The Secretary, in accord14 ance with the provisions of subsection (d), is author15 ized to select institutions of higher education or con16 sortia of such institutions for voluntary participation

17 in a Distance Education Demonstration Program

18 that provides participating institutions with the abil19 ity to offer distance education programs that do not

20 meet all or a portion of the sections or regulations

21 described in paragraph (2).

22 ‘‘(2) WAIVERS.—The Secretary is authorized to

23 waive, for any institution or consortia participating

24 in a Distance Education Demonstration Program, 1

25 or more of the requirements of section 472(5) as the
219

•S 1882 IS

1 section relates to computer costs, sections 472(10),

2 481(a)(3)(A), 481(a)(3)(B), 484(l)(1), or 1 or more

3 of the regulations prescribed for distance education

4 under part F or G.

5 ‘‘(3) SPECIAL RULE.—An institution of higher

6 education, as defined in section 481(a), is eligible to

7 participate in the demonstration program authorized

8 under this section if such institution awards a de9 gree, except that—

10 ‘‘(A) such institutions that are described in

11 section 481(a)(1)(C) shall not be eligible to par12 ticipate; and

13 ‘‘(B) subject to subparagraph (A), such in14 stitutions that meet the requirements of sub15 section (a) of section 481, other than the re16 quirements of paragraph (3)(A) or (3)(B) of

17 such subsection, shall be eligible to participate.

18 ‘‘(c) APPLICATION.—

19 ‘‘(1) IN GENERAL.—Each institution or consor20 tia of institutions desiring to participate in a dem21 onstration program under this section shall submit

22 an application to the Secretary at such time and in

23 such manner as the Secretary may require.

24 ‘‘(2) CONTENTS.—Each application shall in25 clude—
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1 ‘‘(A) a description of the institution or

2 consortium’s consultation with a recognized ac3 crediting agency or association with respect to

4 quality assurances for the distance education

5 programs to be offered;

6 ‘‘(B) a description of the statutory and

7 regulatory requirements described in subsection

8 (b)(2) for which a waiver is sought and the rea9 sons for which the waiver is sought;

10 ‘‘(C) a description of the distance edu11 cation programs to be offered;

12 ‘‘(D) a description of the students to whom

13 distance education programs will be offered;

14 ‘‘(E) an assurance that the institution or

15 consortium will offer full cooperation with the

16 ongoing evaluations of the demonstration pro17 gram provided for in this section; and

18 ‘‘(F) such other information as the Sec19 retary may require.

20 ‘‘(d) SELECTION.—The Secretary is authorized to se21 lect not more than 5 institutions or consortia to partici22 pate in the initial year of the demonstration program au23 thorized under this section. If expansion of the demonstra24 tion program can be supported on the basis of the evalua25 tions conducted pursuant to subsections (f) and (g), the
221

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1 Secretary may select not more than 10 additional institu2 tions or consortia, taking into account the number and

3 quality of applications received and the Department’s ca4 pacity to oversee and monitor each demonstration pro5 gram. To the extent feasible, the Secretary shall select a

6 representative sample of institutions for participation. In

7 selecting institutions for participation, the Secretary shall

8 take into consideration the institution’s financial and ad9 ministrative capability and the type of program or pro10 grams being offered via distance education course offer11 ings.

12 ‘‘(e) NOTIFICATION.—The Secretary shall make

13 available to the public and to the Committee on Labor and

14 Human Resources of the Senate and the Committee on

15 Education and the Workforce of the House of Representa16 tives a list of institutions or consortia selected to partici17 pate in the demonstration program authorized by this sec18 tion. Such notice shall include a listing of the specific stat19 utory and regulatory requirements being waived for each

20 institution or consortia and a description of the distance

21 education courses to be offered.

22 ‘‘(f) EVALUATIONS AND REPORTS.—

23 ‘‘(1) EVALUATION.—The Secretary, on an an24 nual basis, shall evaluate the demonstration pro-
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1 grams authorized under this section. Such evalua2 tions shall specifically review—

3 ‘‘(A) the number and types of students

4 participating in the programs being offered, in5 cluding the progress of participating students

6 toward recognized associate, bachelor’s, or

7 graduate degrees, and the degree to which par8 ticipation in such programs increased;

9 ‘‘(B) issues related to student financial as10 sistance for distance education; and

11 ‘‘(C) the extent to which statutory or regu12 latory requirements not waived under the dem13 onstration program present difficulties for stu14 dents or institutions.

15 ‘‘(2) POLICY ANALYSIS.—In addition, the Sec16 retary shall review current policies and identify those

17 policies which present impediments to the develop18 ment and use of distance learning and other non19 traditional methods of expanding access to edu20 cation.

21 ‘‘(3) REPORTS.—

22 ‘‘(A) IN GENERAL.—Within 18 months of

23 the initiation of the demonstration program, the

24 Secretary shall report to the Committee on

25 Labor and Human Resources of the Senate and
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1 and the Committee on Education and the

2 Workforce of the House of Representatives with

3 respect to—

4 ‘‘(i) the evaluations of the demonstra5 tion programs authorized under this sec6 tion; and

7 ‘‘(ii) any proposed statutory changes

8 designed to enhance the use of distance

9 education.

10 ‘‘(B) ADDITIONAL REPORTS.—The Sec11 retary shall provide additional reports to the

12 Committee on Labor and Human Resources of

13 the Senate and the Committee on Education

14 and the Workforce of the House of Representa15 tives on an annual basis regarding the dem16 onstration programs authorized under this sec17 tion.

18 ‘‘(g) INDEPENDENT EVALUATION.—

19 ‘‘(1) IN GENERAL.—The Secretary shall enter

20 into a contract with the National Academy of

21 Sciences to study the quality of and student learning

22 outcomes in distance education programs. Such

23 study shall include—

24 ‘‘(A) identification of the elements by

25 which quality in distance education can be as-
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1 sessed, such as subject matter, interactivity,

2 and student outcomes; and

3 ‘‘(B) identification of the types of students

4 which can most benefit from distance education

5 in areas such as access to higher education,

6 persistence, and graduation.

7 ‘‘(2) SCOPE.—Such study shall include distance

8 education programs offered by the institutions or

9 consortia participating in the demonstration pro10 gram authorized by this section, as well as the dis11 tance education programs offered by other institu12 tions.

13 ‘‘(3) INTERIM AND FINAL REPORTS.—The Sec14 retary shall request that the National Academy of

15 Sciences submit an interim report to the Secretary,

16 the Committee on Labor and Human Resources of

17 the Senate, and the Committee on Education and

18 the Workforce of the House of Representatives not

19 later than December 31, 2000, and a final report

20 not later than December 31, 2002, regarding the

21 study.

22 ‘‘(4) FUNDING.—The Secretary shall make

23 available not more than $1,000,000 for the study re24 quired by this subsection.
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1 ‘‘(h) OVERSIGHT.—In conducting the demonstration

2 program authorized under this section, the Secretary

3 shall, on a continuing basis—

4 ‘‘(1) assure compliance of institutions or con5 sortia with the requirements of this title (other than

6 the sections and regulations that are waived under

7 subsection (b)(2));

8 ‘‘(2) provide technical assistance;

9 ‘‘(3) monitor fluctuations in the student popu10 lation enrolled in the participating institutions or

11 consortia; and

12 ‘‘(4) consult with appropriate accrediting agen13 cies or associations and appropriate State regulatory

14 authorities.

15 ‘‘(i) DEFINITION.—For the purpose of this section,

16 the term ‘distance learning’ means an educational process

17 that is characterized by the separation, in time or place,

18 between instructor and student. Distance learning may in19 clude courses offered principally through the use of—

20 ‘‘(1) television, audio, or computer trans21 mission, such as open broadcast, closed circuit,

22 cable, microwave, or satellite transmission;

23 ‘‘(2) audio or computer conferencing;

24 ‘‘(3) video cassettes or discs; or

25 ‘‘(4) correspondence.’’.
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1 SEC. 489B. ADVISORY COMMITTEE ON STUDENT FINANCIAL

2 ASSISTANCE.

3 Section 491 (20 U.S.C. 1098) is amended—

4 (1) in subsection (b)—

5 (A) in the second sentence, by striking

6 ‘‘and expenditures’’ and inserting ‘‘, expendi7 tures and staffing levels’’; and

8 (B) by inserting after the third sentence

9 the following: ‘‘Reports, publications, and other

10 documents, including such reports, publications,

11 and documents in electronic form, shall not be

12 subject to review by the Secretary.’’;

13 (2) in subsection (e)—

14 (A) by redesignating paragraphs (3), (4),

15 and (5), as paragraphs (4), (5), and (6), re16 spectively; and

17 (B) by inserting after paragraph (2) the

18 following:

19 ‘‘(3) No officers or full-time employees of the

20 Federal Government shall serve as members of the

21 Advisory Committee.’’;

22 (3) in subsection (g), by striking ‘‘(1) Mem23 bers’’ and all that follows through ‘‘of the United

24 States may’’ and inserting ‘‘Members of the Advi25 sory Committee may’’;

26 (4) in subsection (h)(1)—
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•S 1882 IS

1 (A) by inserting ‘‘determined’’ after ‘‘as

2 may be’’; and

3 (B) by adding at the end the following:

4 ‘‘The Advisory Committee may appoint not

5 more than 1 full-time equivalent, nonperma6 nent, consultant without regard to the provi7 sions of title 5, United States Code. The Advi8 sory Committee shall not be required by the

9 Secretary to reduce personnel to meet agency

10 personnel reduction goals.’’;

11 (5) in subsection (i), by striking ‘‘$750,000’’

12 and inserting ‘‘$800,000’’;

13 (6) by amending subsection (j) to read as fol14 lows:

15 ‘‘(j) SPECIAL ANALYSES AND ACTIVITIES.—The Ad16 visory Committee shall—

17 ‘‘(1) monitor and evaluate the modernization of

18 student financial aid systems and delivery processes,

19 including the implementation of a performance-based

20 organization within the Department, and report to

21 Congress regarding such modernization on not less

22 than an annual basis, including recommendations for

23 improvement;

24 ‘‘(2) assess the adequacy of current methods for

25 disseminating information about programs under
228

•S 1882 IS

1 this title and recommend improvements, as appro2 priate, regarding early needs assessment and infor3 mation for first-year secondary school students;

4 ‘‘(3) assess and make recommendations con5 cerning the feasibility and degree of use of appro6 priate technology in the application for, and delivery

7 and management of, financial assistance under this

8 title, as well as policies that promote use of such

9 technology to reduce cost and enhance service and

10 program integrity, including electronic application

11 and reapplication, just-in-time delivery of funds, re12 porting of disbursements and reconciliation;

13 ‘‘(4) assess the implications of distance learning

14 on student eligibility and other requirements for fi15 nancial assistance under this title, and make rec16 ommendations that will enhance access to post17 secondary education through distance learning while

18 maintaining access, through on-campus instruction

19 at eligible institutions, and program integrity; and

20 ‘‘(5) make recommendations to the Secretary

21 regarding redundant or outdated provisions of and

22 regulations under this Act, consistent with the Sec23 retary’s requirements under section 498A(b)(3).’’;

24 (7) in subsection (k), by striking ‘‘1998’’ and

25 inserting ‘‘2004’’; and
229

•S 1882 IS

1 (8) by repealing subsection (l).

2 SEC. 489C. REGIONAL MEETINGS AND NEGOTIATED RULE3 MAKING.

4 Section 492 (20 U.S.C. 1098a) is amended—

5 (1) in subsection (a)—

6 (A) in paragraph (1)—

7 (i) by inserting ‘‘, after the enactment

8 of each Act to reauthorize this Act that

9 contains an amendment to this title,’’ after

10 ‘‘The Secretary’’; and

11 (ii) by inserting ‘‘D,’’ after ‘‘B,’’; and

12 (B) in paragraph (2)—

13 (i) by inserting ‘‘D,’’ after ‘‘B,’’; and

14 (ii) by striking ‘‘1992’’ and inserting

15 ‘‘1998, and for the implementation of this

16 title as amended by each Act to reauthor17 ize this Act enacted after the date of en18 actment of the Higher Education Amend19 ments of 1998 that contains an amend20 ment to this title’’; and

21 (2) in subsection (b)—

22 (A) by striking ‘‘After’’ and inserting the

23 following:

24 ‘‘(1) IN GENERAL.—After’’;
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•S 1882 IS

1 (B) in paragraph (1) (as redesignated by

2 subparagraph (A))—

3 (i) by inserting ‘‘D,’’ after ‘‘B,’’; and

4 (ii) by striking ‘‘1992’’ and inserting

5 ‘‘1998, and for the implementation of this

6 title as amended by each Act to reauthor7 ize this Act enacted after the date of en8 actment of the Higher Education Amend9 ments of 1998 that contains an amend10 ment to this title,’’; and

11 (C) by adding at the end the following:

12 ‘‘(2) EXPANSION OF NEGOTIATED RULEMAKING

13 IN STUDENT LOAN PROGRAMS.—All regulations per14 taining to the student assistance programs in parts

15 B, D, G, and H, that are promulgated after the date

16 of enactment of this paragraph, shall be subject to

17 the negotiated rulemaking process, unless the Sec18 retary determines that exceptional circumstances

19 exist making negotiated rulemaking impractical with

20 respect to given regulations and publishes the basis

21 for such determination in the Federal Register at

22 the same time as the proposed regulations in ques23 tions are first published. All published proposed reg24 ulations shall conform, unless impracticable, to

25 agreements resulting from such negotiated rule-
231

•S 1882 IS

1 making. Such negotiated rulemaking shall be con2 ducted in accordance with the provisions of para3 graph (1).’’.

4 PART H—PROGRAM INTEGRITY TRIAD

5 SEC. 491. STATE ROLE AND RESPONSIBILITIES.

6 Subpart 1 of part H of title IV (20 U.S.C. 1099a

7 et seq.) is amended to read as follows:

8 ‘‘Subpart 1—State Role

9 ‘‘SEC. 495. STATE RESPONSIBILITIES.

10 ‘‘(a) STATE RESPONSIBILITIES.—As part of the in11 tegrity program authorized by this part, each State,

12 through 1 State agency or several State agencies selected

13 by the State, shall—

14 ‘‘(1) furnish the Secretary, upon request, infor15 mation with respect to the process for licensing or

16 other authorization for institutions of higher edu17 cation to operate within the State;

18 ‘‘(2) notify the Secretary promptly whenever

19 the State revokes a license or other authority to op20 erate an institution of higher education; and

21 ‘‘(3) notify the Secretary promptly whenever

22 the State has credible evidence that an institution of

23 higher education within the State—
232

•S 1882 IS

1 ‘‘(A) has committed fraud in the adminis2 tration of the student assistance programs au3 thorized by this title; or

4 ‘‘(B) has substantially violated a provision

5 of this title.

6 ‘‘(b) INSTITUTIONAL RESPONSIBILITY.—Each insti7 tution of higher education shall provide evidence to the

8 Secretary that the institution has authority to operate

9 within a State at the time the institution is certified under

10 subpart 3.’’.

11 SEC. 492. ACCREDITING AGENCY RECOGNITION.

12 (a) AMENDMENTS TO HEADINGS.—Subpart 2 of part

13 H of title IV (20 U.S.C. 1099b et seq.) is amended—

14 (1) in the subpart heading, by striking ‘‘Ap15 proval’’ and inserting ‘‘Recognition’’; and

16 (2) in the heading for section 496, by striking

17 ‘‘APPROVAL’’ and inserting ‘‘RECOGNITION’’.

18 (b) RECOGNITION OF ACCREDITING AGENCY OR AS19 SOCIATION.—Section 496 (20 U.S.C. 1099b) is amend20 ed—

21 (1) in the heading for subsection (a), by strik22 ing ‘‘STANDARDS’’ and inserting ‘‘CRITERIA’’;

23 (2) in subsection (a)—
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1 (A) in the matter preceding paragraph (1),

2 by striking ‘‘standards’’ each place the term ap3 pears and inserting ‘‘criteria’’;

4 (B) in paragraph (4)—

5 (i) by striking ‘‘at the institution’’ and

6 inserting ‘‘offered by the institution’’; and

7 (ii) by inserting ‘‘, including distance

8 education courses or programs,’’ after

9 ‘‘higher education’’; and

10 (C) in paragraph (5)—

11 (i) by striking subparagraph (I);

12 (ii) by redesignating subparagraphs

13 (A) through (H) as subparagraphs (B)

14 through (I), respectively;

15 (iii) by inserting before subparagraph

16 (B) the following:

17 ‘‘(A) success with respect to student

18 achievement in relation to the institution’s mis19 sion, including, as appropriate, consideration of

20 course completion, State licensing examination,

21 and job placement rates;’’;

22 (iv) in subparagraph (I) (as redesig23 nated by clause (ii)), by striking ‘‘in clock

24 hours or credit hours’’; and

25 (v) in subparagraph (L)—
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•S 1882 IS

1 (I) by inserting ‘‘record of’’ be2 fore ‘‘compliance’’;

3 (II) by striking ‘‘Act, including

4 any’’ and inserting ‘‘Act based on

5 the’’;

6 (III) by inserting ‘‘any’’ after

7 ‘‘reviews, and’’; and

8 (IV) in the matter following sub9 paragraph (L), by striking ‘‘(G),’’;

10 (3) by amending paragraph (1) of subsection (l)

11 to read as follows: ‘‘(1)(A)(i) If the Secretary deter12 mines that an accrediting agency or association has

13 failed to apply effectively the standards in this sec14 tion, or is otherwise not in compliance with the re15 quirements of this section, the Secretary shall—

16 ‘‘(I) after notice and opportunity for a

17 hearing, limit, suspend, or terminate the ap18 proval of the agency or association; or

19 ‘‘(II) require the agency or association to

20 take appropriate action to bring the agency or

21 association into compliance with such require22 ments within a timeframe specified by the Sec23 retary, except that—
235

•S 1882 IS

1 ‘‘(aa) such timeframe shall not exceed

2 12 months unless the Secretary extends

3 such period for good cause; and

4 ‘‘(bb) if the agency or association fails

5 to bring the agency or association into

6 compliance within such timeframe, the Sec7 retary shall, after notice and opportunity

8 for a hearing, limit, suspend, or terminate

9 the approval of the agency or association.’’;

10 and

11 (4) in subsection (n)(3), by adding at the end

12 the following: ‘‘When the Secretary decides to recog13 nize an accrediting agency or association, the Sec14 retary shall determine the agency or association’s

15 scope of recognition. If the agency or association re16 views institutions offering distance education courses

17 or programs and the Secretary determines that the

18 agency or association meets the requirements of this

19 section, then the agency shall be recognized and the

20 scope of recognition shall include accreditation of in21 stitutions offering distance education courses or pro22 grams.’’.

23 SEC. 493. ELIGIBILITY AND CERTIFICATION PROCEDURES.

24 (a) SINGLE APPLICATION FORM.—Section 498(b)

25 (20 U.S.C. 1099c(b)) is amended—
236

•S 1882 IS

1 (1) in paragraph (1), by striking ‘‘and capabil2 ity’’ and inserting ‘‘financial responsibility, and ad3 ministrative capability’’;

4 (2) by amending paragraph (3) to read as fol5 lows:

6 ‘‘(3) requires—

7 ‘‘(A) a description of the third party

8 servicers of an institution of higher education;

9 and

10 ‘‘(B) the institution to maintain a copy of

11 any contract with a financial aid service pro12 vider or loan servicer, and provide a copy of any

13 such contract to the Secretary upon request;’’;

14 (3) in paragraph (4), by striking the period and

15 inserting ‘‘; and’’; and

16 (4) by adding at the end the following:

17 ‘‘(5) provides, at the option of the institution,

18 for participation in 1 or more of the programs under

19 part B.’’.

20 (b) FINANCIAL RESPONSIBILITY STANDARDS.—Sec21 tion 498(c) (20 U.S.C. 1099c(c)) is amended—

22 (1) in paragraph (2), by striking ‘‘with respect

23 to operating losses, net worth, asset to liabilities ra24 tios, or operating fund deficits’’ and inserting ‘‘re-
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•S 1882 IS

1 garding ratios that demonstrate financial respon2 sibility,’’;

3 (2) in paragraph (3)(A), by striking ‘‘Secretary

4 third party’’ and all that follows through ‘‘payable to

5 the Secretary’’ and inserting ‘‘Secretary any third

6 party guarantees, which the Secretary determines

7 are reasonable, that’’; and

8 (3) in paragraph (4)—

9 (A) in the matter preceding subparagraph

10 (A), by striking ‘‘ratio of current assets to cur11 rent liabilities’’ and inserting ‘‘criteria’’; and

12 (B) in subparagraph (C), by striking ‘‘cur13 rent operating ratio requirement’’ and inserting

14 ‘‘criteria’’.

15 (c) FINANCIAL GUARANTEES FROM OWNERS.—Sec16 tion 498(e) (20 U.S.C. 1099c(e)) is amended—

17 (1) in the subsection heading, by inserting ‘‘OF

18 FOR-PROFIT INSTITUTIONS’’ after ‘‘OWNERS’’;

19 (2) in paragraph (1)(A), by inserting ‘‘from an’’

20 and inserting ‘‘from a for-profit’’;

21 (3) in paragraph (2)—

22 (A) in the matter preceding clause (i) of

23 subparagraph (A), by inserting ‘‘for-profit’’

24 after ‘‘or more’’;
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1 (B) in subparagraph (B), by inserting

2 ‘‘for-profit’’ after ‘‘or more’’; and

3 (4) in paragraph (3), by striking ‘‘operation of,

4 an institution or’’ and inserting ‘‘operation of, a for5 profit institution or the’’.

6 (d) APPLICATIONS AND SITE VISITS.—Section 498(f)

7 (20 U.S.C. 1099c(f)) is amended—

8 (1) in the subsection heading by striking ‘‘;

9 SITE VISITS AND FEES’’ and inserting ‘‘AND SITE

10 VISITS’’;

11 (2) in the second sentence, by striking ‘‘shall’’

12 and inserting ‘‘may’’;

13 (3) in the third sentence, strike ‘‘may’’ and in14 sert ‘‘shall’’; and

15 (4) by striking the fourth sentence.

16 (e) TIME LIMITATIONS ON, AND RENEWAL OF, ELI17 GIBILITY.—Subsection (g) of section 498 (20 U.S.C.

18 1099c) is amended to read as follows:

19 ‘‘(g) TIME LIMITATIONS ON, AND RENEWAL OF, ELI20 GIBILITY.—

21 ‘‘(1) GENERAL RULE.—After the expiration of

22 the certification of any institution under the sched23 ule prescribed under this section (as in effect prior

24 to the enactment of the Higher Education Act

25 Amendments of 1998), or upon request for initial
239

•S 1882 IS

1 certification from an institution not previously cer2 tified, the Secretary may certify the eligibility for

3 the purposes of any program authorized under this

4 title of each such institution for a period not to ex5 ceed 6 years.

6 ‘‘(2) NOTIFICATION.—The Secretary shall no7 tify each institution of higher education not later

8 than 6 months prior to the date of the expiration of

9 the institution’s certification.

10 ‘‘(3) INSTITUTIONS OUTSIDE THE UNITED

11 STATES.—The Secretary shall promulgate regula12 tions regarding the recertification requirements ap13 plicable to an institution of higher education outside

14 of the United States that meets the requirements of

15 section 481(a)(1)(C) and received less than

16 $500,000 in funds under part B for the most recent

17 year for which data are available.

18 (f) PROVISIONAL CERTIFICATION.—Section 498(h)

19 (20 U.S.C. 1099c(h)) is amended—

20 (1) in paragraph (1)(B)(ii), by striking ‘‘an eli21 gible’’ and inserting ‘‘a for-profit eligible’’; and

22 (2) in paragraph (2), by striking ‘‘the ap23 proval’’ and inserting ‘‘the recognition’’.

24 (g) TREATMENT OF CHANGES OF OWNERSHIP.—Sec25 tion 498(i) (20 U.S.C. 1099c(i)) is amended—
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1 (1) in the subsection heading, by inserting ‘‘OF

2 FOR-PROFIT INSTITUTIONS’’ after ‘‘OWNERSHIP’’;

3 and

4 (2) in paragraph (2)—

5 (A) in subparagraph (A), by inserting ‘‘for6 profit’’ before ‘‘institution’’;

7 (B) in subparagraph (C), by striking

8 ‘‘two’’ and inserting ‘‘a for-profit institution

9 with one’’;

10 (C) in subparagraph (D), by inserting

11 ‘‘for-profit’’ before ‘‘institutions’’;

12 (D) in subparagraph (E), by inserting

13 ‘‘for-profit’’ before ‘‘institutions’’; and

14 (E) in subparagraph (F), by inserting

15 ‘‘for-profit’’ before ‘‘institution’’.

16 (h) TREATMENT OF BRANCHES.—The second sen17 tence of section 498(j)(1) (20 U.S.C. 1099c(j)(1)) is

18 amended by inserting ‘‘after the branch is certified by the

19 Secretary as a branch campus participating in a program

20 under title IV,’’ after ‘‘2 years’’.

21 SEC. 494. PROGRAM REVIEW AND DATA.

22 Section 498A (20 U.S.C. 1099c–1) is amended—

23 (1) in subsection (a)—

24 (A) in paragraph (2)—
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•S 1882 IS

1 (i) in the matter preceding subpara2 graph (A), by striking ‘‘may’’ and inserting

3 ‘‘shall’’;

4 (ii) by amending subparagraph (C) to

5 read as follows:

6 ‘‘(C) institutions with a significant fluctua7 tion in Federal Stafford Loan volume, Federal

8 Direct Stafford/Ford Loan volume, or Federal

9 Pell Grant award volume, or any combination

10 thereof, in the year for which the determination

11 is made, compared to the year prior to such

12 year, that are not accounted for by changes in

13 the Federal Stafford Loan program, the Fed14 eral Direct Stafford/Ford Loan program, or the

15 Pell Grant program, or any combination there16 of;’’;

17 (iii) by amending subparagraph (D) to

18 read as follows:

19 ‘‘(D) institutions reported to have defi20 ciencies or financial aid problems by the State

21 licensing or authorizing agency, or by the ap22 propriate accrediting agency or association;’’;

23 (iv) in subparagraph (E), by inserting

24 ‘‘and’’ after the semicolon; and
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•S 1882 IS

1 (v) by striking subparagraphs (F) and

2 (G), and inserting the following:

3 ‘‘(F) such other institutions that the Sec4 retary determines may pose a significant risk of

5 failure to comply with the administrative capa6 bility or financial responsibility provisions of

7 this title; and’’; and

8 (B) in paragraph (3)(A), by inserting ‘‘rel9 evant’’ after ‘‘all’’; and

10 (2) by amending subsection (b) to read as fol11 lows:

12 ‘‘(b) SPECIAL ADMINISTRATIVE RULES.—

13 ‘‘(1) IN GENERAL.—In carrying out paragraphs

14 (1) and (2) of subsection (a) and any other relevant

15 provisions of this title, the Secretary shall—

16 ‘‘(A) establish guidelines designed to en17 sure uniformity of practice in the conduct of

18 program reviews of institutions of higher edu19 cation;

20 ‘‘(B) make available to each institution

21 participating in programs authorized under this

22 title complete copies of all review guidelines and

23 procedures used in program reviews;

24 ‘‘(C) permit the institution to correct or

25 cure an administrative, accounting, or record-
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•S 1882 IS

1 keeping error if the error is not part of a pat2 tern of error and there is no evidence of fraud

3 or misconduct related to the error;

4 ‘‘(D) base any civil penalty assessed

5 against an institution of higher education re6 sulting from a program review or audit on the

7 gravity of the violation, failure, or misrepresen8 tation; and

9 ‘‘(E) inform the appropriate State and ac10 crediting agency or association whenever the

11 Secretary takes action against an institution of

12 higher education under this section, section

13 498, or section 432.

14 ‘‘(2) UNIFORMITY OF APPLICATION OF REGULA15 TIONS.—The Secretary shall review the regulations

16 of the Department and the application of such regu17 lations to ensure the uniformity of interpretation

18 and application of the regulations.

19 ‘‘(3) NONDUPLICATION AND COORDINATION.—

20 The Secretary shall establish a process for ensuring

21 that eligibility and compliance issues, such as insti22 tutional audit, program review, and recertification,

23 are considered simultaneously, and shall establish a

24 process for identifying unnecessary duplication of re25 porting and related regulatory requirements. In de-
244

•S 1882 IS

1 veloping such processes, the Secretary shall consult

2 with relevant representatives of institutions partici3 pating in the programs authorized by this title.’’.

4 PART I—ADMINISTRATIVE PROVISIONS FOR

5 DELIVERY OF STUDENT FINANCIAL ASSISTANCE

6 SEC. 495. PERFORMANCE-BASED ORGANIZATION FOR THE

7 DELIVERY OF FEDERAL STUDENT FINANCIAL

8 ASSISTANCE.

9 Title IV (20 U.S.C. 1070 et seq.) is amended by add10 ing at the end the following:

11 ‘‘PART I—ADMINISTRATIVE PROVISIONS FOR

12 DELIVERY OF STUDENT FINANCIAL ASSISTANCE

13 ‘‘SEC. 499. PERFORMANCE-BASED ORGANIZATION FOR THE

14 DELIVERY OF FEDERAL STUDENT FINANCIAL

15 ASSISTANCE.

16 ‘‘(a) ESTABLISHMENT.—The Secretary shall estab17 lish in the Department a performance-based organization

18 (hereafter in this part referred to as the ‘PBO’) to admin19 ister various functions relating to student financial assist20 ance programs authorized under this title.

21 ‘‘(b) OVERSIGHT AND AUTHORITY.—

22 ‘‘(1) POLICY OVERSIGHT AND DIRECTION.—The

23 Secretary shall maintain responsibility for the policy

24 relating to functions managed by the PBO, and the
245

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1 PBO shall remain subject to the Secretary’s over2 sight and direction.

3 ‘‘(2) AUDITS AND REVIEW.—The PBO shall be

4 subject to the usual and customary Federal audit

5 procedures and to review by the Inspector General

6 of the Department.

7 ‘‘(3) CHANGES.—

8 ‘‘(A) IN GENERAL.—The Secretary and the

9 Chief Operating Officer shall consult concerning

10 the effects of policy, market, or other changes

11 on the ability of the PBO to achieve the goals

12 and objectives established in the performance

13 plan described in subsection (e).

14 ‘‘(B) REVISIONS TO AGREEMENT.—The

15 Secretary and the Chief Operating Officer may

16 revise the annual performance agreement de17 scribed in subsection (f)(2) in light of policy,

18 market, or other changes that occur after the

19 Secretary and the PBO enter into the agree20 ment.

21 ‘‘(c) PURPOSES OF PBO.—The purposes of the PBO

22 are—

23 ‘‘(1) to improve service to students and other

24 participants in the student financial assistance pro25 grams authorized under this title, including making
246

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1 those programs more understandable to students

2 and their parents;

3 ‘‘(2) to reduce the costs of administering those

4 programs;

5 ‘‘(3) to increase the accountability of the offi6 cials responsible for administering those programs;

7 ‘‘(4) to provide greater flexibility in the admin8 istration of those programs;

9 ‘‘(5) to improve and integrate the information

10 and delivery systems that support those programs;

11 and

12 ‘‘(6) to develop and maintain a student finan13 cial assistance system that contains complete, accu14 rate, and timely data to ensure program integrity.

15 ‘‘(d) FUNCTIONS.—

16 ‘‘(1) IN GENERAL.—Subject to subsection (b) of

17 this section, the PBO shall be responsible for admin18 istration of the information and financial systems

19 that support student financial assistance programs

20 authorized under this title, including—

21 ‘‘(A) collecting, processing, and transmit22 ting applicant data to students, institutions,

23 and authorized third parties, as provided for in

24 section 483;
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1 ‘‘(B) contracting for the information and

2 financial systems supporting student financial

3 assistance programs under this title;

4 ‘‘(C) developing technical specifications for

5 software and systems that support those pro6 grams; and

7 ‘‘(D) providing all customer service, train8 ing, and user support related to systems that

9 support those programs.

10 ‘‘(2) ADDITIONAL FUNCTIONS.—The Secretary

11 may allocate to the PBO such additional functions

12 as the Secretary determines necessary or appropriate

13 to achieve the purposes of the PBO.

14 ‘‘(e) PERFORMANCE PLAN AND REPORT.—

15 ‘‘(1) PERFORMANCE PLAN.—

16 ‘‘(A) IN GENERAL.—Each year, the Sec17 retary and Chief Operating Officer shall agree

18 on, and make available to the public, a perform19 ance plan for the PBO for the succeeding 5

20 years that establishes measurable goals and ob21 jectives for the organization.

22 ‘‘(B) CONSULTATION.—In developing the

23 5-year performance plan, the Secretary and the

24 Chief Operating Officer shall consult with stu25 dents, institutions of higher education, Con-
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1 gress, lenders, and other interested parties not

2 less than 30 days prior to the implementation

3 of the performance plan.

4 ‘‘(C) AREAS.—The plan shall address the

5 PBO’s responsibilities in the following areas:

6 ‘‘(i) IMPROVING SERVICE.—Improving

7 service to students and other participants

8 in student financial aid programs author9 ized under this title, including making

10 those programs more understandable to

11 students and their parents.

12 ‘‘(ii) REDUCING COSTS.—Reducing

13 the costs of administering those programs.

14 ‘‘(iii) IMPROVEMENT AND INTEGRA15 TION OF SUPPORT SYSTEMS.—Improving

16 and integrating the information and deliv17 ery systems that support those programs.

18 ‘‘(iv) DELIVERY AND INFORMATION

19 SYSTEM.—Developing an open, common,

20 and integrated delivery and information

21 system for programs authorized under this

22 title.

23 ‘‘(v) OTHER AREAS.—Any other areas

24 identified by the Secretary.
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1 ‘‘(2) ANNUAL REPORT.—Each year, the Chief

2 Operating Officer shall prepare and submit to Con3 gress, through the Secretary, an annual report on

4 the performance of the PBO, including an evaluation

5 of the extent to which the PBO met the goals and

6 objectives contained in the 5-year performance plan

7 described in paragraph (1) for the preceding year.

8 ‘‘(f) CHIEF OPERATING OFFICER.—

9 ‘‘(1) APPOINTMENT.—

10 ‘‘(A) IN GENERAL.—The management of

11 the PBO shall be vested in a Chief Operating

12 Officer who shall be appointed by the Secretary

13 to a term of not less than 3 and not more than

14 5 years and compensated without regard to

15 chapters 33, 51, and 53 of title 5, United

16 States Code.

17 ‘‘(B) BASIS.—The appointment shall be

18 made on the basis of demonstrated ability in

19 management and experience in information

20 technology or financial services, without regard

21 to political affiliation or activity.

22 ‘‘(C) REAPPOINTMENT.—The Secretary

23 may reappoint the Chief Operating Officer to

24 subsequent terms of not less than 3 and not

25 more than 5 years, so long as the performance
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1 of the Chief Operating Officer, as set forth in

2 the performance agreement described in para3 graph (2), is satisfactory.

4 ‘‘(2) PERFORMANCE AGREEMENT.—

5 ‘‘(A) IN GENERAL.—Each year, the Sec6 retary and the Chief Operating Officer shall

7 enter into an annual performance agreement,

8 that shall set forth measurable organization and

9 individual goals for the Chief Operating Officer.

10 ‘‘(B) TRANSMITTAL.—The final agreement

11 shall be transmitted to the Committee on Edu12 cation and the Workforce of the House of Rep13 resentatives and the Committee on Labor and

14 Human Resources of the Senate, and made

15 publicly available.

16 ‘‘(3) COMPENSATION.—

17 ‘‘(A) IN GENERAL.—The Chief Operating

18 Officer is authorized to be paid at an annual

19 rate of basic pay not to exceed the maximum

20 rate of basic pay for the Senior Executive Serv21 ice under section 5382 of title 5, United States

22 Code, including any applicable locality-based

23 comparability payment that may be authorized

24 under section 5304(h)(2)(C) of such title.
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1 ‘‘(B) BONUS.—In addition, the Chief Op2 erating Officer may receive a bonus in an

3 amount that does not exceed 50 percent of such

4 annual rate of basic pay, based upon the Sec5 retary’s evaluation of the Chief Operating Offi6 cer’s performance in relation to the goals set

7 forth in the performance agreement described

8 in paragraph (2).

9 ‘‘(C) PAYMENT.—Payment of a bonus

10 under this subparagraph (B) may be made to

11 the Chief Operating Officer only to the extent

12 that such payment does not cause the Chief Op13 erating Officer’s total aggregate compensation

14 in a calendar year to equal or exceed the

15 amount of the President’s salary under section

16 102 of title 3, United States Code.

17 ‘‘(4) REMOVAL.—The Chief Operating Officer

18 shall be removable—

19 ‘‘(A) by the President; or

20 ‘‘(B) by the Secretary for misconduct or

21 failure to meet the goals set forth in the per22 formance agreement described in paragraph

23 (2).

24 ‘‘(g) SENIOR MANAGEMENT.—

25 ‘‘(1) APPOINTMENT.—
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1 ‘‘(A) IN GENERAL.—The Chief Operating

2 Officer may appoint such senior managers as

3 that officer determines necessary without re4 gard to the provisions of title 5, United States

5 Code, governing appointments in the competi6 tive service.

7 ‘‘(B) COMPENSATION.—The senior man8 agers described in subparagraph (A) may be

9 paid without regard to the provisions of chapter

10 51 and subchapter III of chapter 53 of such

11 title relating to classification and General

12 Schedule pay rates.

13 ‘‘(2) PERFORMANCE AGREEMENT.—Each year,

14 the Chief Operating Officer and each senior man15 ager appointed under this subsection shall enter into

16 an annual performance agreement that sets forth

17 measurable organization and individual goals.

18 ‘‘(3) COMPENSATION.—

19 ‘‘(A) IN GENERAL.—A senior manager ap20 pointed under this subsection may be paid at an

21 annual rate of basic pay of not more than the

22 maximum rate of basic pay for the Senior Exec23 utive Service under section 5382 of title 5,

24 United States Code, including any applicable lo25 cality-based comparability payment that may be
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1 authorized under section 5304(h)(2)(C) of such

2 title 5.

3 ‘‘(B) BONUS.—In addition, a senior man4 ager may receive a bonus in an amount such

5 that the manager’s total annual compensation

6 does not exceed 125 percent of the maximum

7 rate of basic pay for the Senior Executive Serv8 ice, including any applicable locality-based com9 parability payment, based upon the Chief Oper10 ating Officer’s evaluation of the manager’s per11 formance in relation to the goals set forth in

12 the performance agreement described in para13 graph (2).

14 ‘‘(4) REMOVAL.—A senior manager shall be re15 movable by the Secretary or by the Chief Operating

16 Officer.

17 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—The

18 Secretary shall allocate from funds made available under

19 section 458 such funds as are appropriate to the functions

20 assumed by the PBO. In addition, there are authorized

21 to be appropriated such sums as may be necessary to carry

22 out the purposes of this section, including transition

23 costs.’’.
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1 TITLE V—GRADUATE AND POST2 SECONDARY IMPROVEMENT

3 PROGRAMS

4 SEC. 501. REPEALS, TRANSFERS, AND REDESIGNATIONS.

5 (a) IN GENERAL.—Title V (20 U.S.C. 1101 et seq.)

6 is amended—

7 (1) by amending the title heading to read as

8 follows:

9 ‘‘TITLE V—GRADUATE AND

10 POSTSECONDARY IMPROVE11 MENT PROGRAMS’’;

12 (2) by repealing parts A, B, C, D, E, and F of

13 title V (20 U.S.C. 1102 et seq., 1103 et seq., 1104

14 et seq., 1107 et seq., 1111 et seq., and 1113 et

15 seq.);

16 (3) by transferring part C of title IX, part D

17 of title IX, part A of title XI, and part A of title

18 X (20 U.S.C. 1134h et seq., 1134l et seq., 1136 et

19 seq., and 1135 et seq.) to title V and redesignating

20 such parts as parts A, B, C, and D, respectively;

21 (4) by redesignating sections 931 through 935

22 (20 U.S.C. 1134h et seq. and 1134k–1 et seq.) as

23 sections 511 through 515, respectively;
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1 (5) by redesignating sections 941 through 947

2 (20 U.S.C. 1134l and 1134q–1) as section 521

3 through 527, respectively;

4 (6) by redesignating sections 1101 through

5 1109 (20 U.S.C. 1136 through 1136h) as sections

6 531 through 539, respectively; and

7 (7) by redesignating sections 1001, 1002, 1003,

8 1004, and 1011 (20 U.S.C. 1135, 1135a–1, 1135a–

9 2, 1135a–3, and 1135a–11) as sections 541, 542,

10 543, 544, and 551, respectively.

11 (b) CROSS REFERENCE CONFORMING AMEND12 MENTS.—

13 (1) JACOB K. JAVITS FELLOWSHIP PROGRAM.—

14 Section 514(a) (as redesignated by subsection

15 (a)(4)) (20 U.S.C. 1134k(a)) is amended by striking

16 ‘‘933’’ and inserting ‘‘513’’.

17 (2) GRADUATE ASSISTANCE IN AREAS OF NA18 TIONAL NEED.—Part B of title V (as redesignated

19 by paragraphs (3) and (5) of subsection (a)) (20

20 U.S.C. 1134l et seq.) is amended—

21 (A) in section 524(b)(7) (as redesignated

22 by subsection (a)(5)) (20 U.S.C. 1134o(b)(7)),

23 by striking ‘‘945’’ and inserting ‘‘525’’; and

24 (B) in section 525(c) (as redesignated by

25 subsection (a)(5)) (20 U.S.C. 1134p(c))—
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1 (i) by striking ‘‘946(a)’’ and inserting

2 ‘‘526(a)’’; and

3 (ii) by striking ‘‘944(b)(2)’’ and in4 serting ‘‘524(b)(2)’’.

5 (3) URBAN AND COMMUNITY SERVICE.—Part C

6 of title V (as redesignated by paragraphs (3) and (6)

7 of subsection (a)) (20 U.S.C. 1136 et seq.) is

8 amended—

9 (A) in section 532(b) (20 U.S.C.

10 1136a(b)), by striking ‘‘1104’’ and inserting

11 ‘‘534’’;

12 (B) in section 534(12) (20 U.S.C.

13 1136c(12)), by striking ‘‘1103(a)(2)(B)’’ and

14 inserting ‘‘533(a)(2)(B)’’; and

15 (C) in section 538(1) (20 U.S.C.

16 1136g(1)), by striking ‘‘1103’’ and inserting

17 ‘‘533’’.

18 (4) FIPSE.—Subsections (b) and (c) of section

19 544 (as redesignated by subsection (a)(7)) (20

20 U.S.C. 1135a–3) each are amended by striking

21 ‘‘1001(b)’’ and inserting ‘‘541(b)’’.

22 SEC. 502. PURPOSE.

23 Section 500 (20 U.S.C. 1101) is amended to read as

24 follows:
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1 ‘‘SEC. 500. PURPOSE.

2 ‘‘It is the purpose of this title—

3 ‘‘(1) to authorize national graduate fellowship

4 programs—

5 ‘‘(A) in order to attract students of supe6 rior ability and achievement, exceptional prom7 ise, and demonstrated financial need, into high8 quality graduate programs and provide the stu9 dents with the financial support necessary to

10 complete advanced degrees; and

11 ‘‘(B) that are designed to—

12 ‘‘(i) sustain and enhance the capacity

13 for graduate education in areas of national

14 need; and

15 ‘‘(ii) encourage talented students to

16 pursue scholarly careers in the humanities,

17 social sciences, and the arts; and

18 ‘‘(2) to promote postsecondary programs.’’.

19 PART A—JACOB K. JAVITS FELLOWSHIP

20 PROGRAM

21 SEC. 511. AWARD OF FELLOWSHIPS.

22 (a) AWARD OF JACOB K. JAVITS FELLOWSHIPS.—

23 Section 511 (as redesignated by section 501(4)) is amend24 ed—

25 (1) in subsection (a)—
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1 (A) in the first sentence, by inserting ‘‘, fi2 nancial need,’’ after ‘‘demonstrated achieve3 ment’’;

4 (B) in the second sentence—

5 (i) by striking ‘‘students intending’’

6 and inserting ‘‘students who are eligible to

7 receive any grant, loan, or work assistance

8 pursuant to section 484 and intend’’; and

9 (ii) by striking ‘‘commonly accepted’’

10 and all that follows through ‘‘degree-grant11 ing institution’’ and inserting ‘‘the termi12 nal highest degree awarded in the area of

13 study’’; and

14 (C) in the third sentence, by inserting ‘‘fol15 lowing the fiscal year’’ after ‘‘July 1 of the fis16 cal year’’; and

17 (2) by adding at the end the following:

18 ‘‘(d) PROCESS AND TIMING OF COMPETITION.—The

19 Secretary shall make applications for fellowships under

20 this part available not later than October 1 of the aca21 demic year preceding the academic year for which fellow22 ships will be awarded, and shall announce the recipients

23 of fellowships under this section not later than March 1

24 of the academic year preceding the academic year for

25 which the fellowships are awarded.
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1 ‘‘(e) AUTHORITY TO CONTRACT.—The Secretary is

2 authorized to enter into a contract with a nongovern3 mental agency to administer the program assisted under

4 this part if the Secretary determines that entering into

5 the contract is an efficient means of carrying out the pro6 gram.’’.

7 (b) ALLOCATION OF FELLOWSHIPS.—Section 512 (as

8 redesignated by section 501(4)) (20 U.S.C. 1134i) is

9 amended—

10 (1) in subsection (a)—

11 (A) in the third sentence of paragraph (1),

12 by striking ‘‘knowledgeable about and have ex13 perience’’ and inserting ‘‘representative of a

14 range of disciplines’’; and

15 (B) in paragraph (2)—

16 (i) by amending subparagraph (B) to

17 read as follows:

18 ‘‘(B) establish general criteria for the

19 award of fellowships in academic fields identi20 fied by the Board, or, in the event that the Sec21 retary enters into a contract with a nongovern22 mental entity to administer the program as23 sisted under this part, by such nongovernmental

24 entity;’’; and
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1 (ii) in subparagraph (C), by inserting

2 ‘‘except that, in the event that the Sec3 retary enters into a contract with a non4 governmental entity to administer the pro5 gram, such panels may be appointed by

6 such nongovernmental entity’’ before the

7 semicolon; and

8 (2) in the first sentence of subsection (b), by in9 serting ‘‘except that in the event that the Secretary

10 enters into a contract with a nongovernmental entity

11 to administer the program, such panels may be ap12 pointed by such nongovernmental entity’’ before the

13 period.

14 (c) STIPENDS.—Section 513 (as redesignated by sec15 tion 501(4)) (20 U.S.C. 1134j) is amended—

16 (1) in subsection (a)—

17 (A) by striking ‘‘1993–1994’’ and inserting

18 ‘‘1999–2000’’; and

19 (B) by striking ‘‘according to measure20 ments of need approved by the Secretary’’ and

21 inserting ‘‘determined in accordance with part

22 F of title IV’’; and

23 (2) in subsection (b)(1)(A)—

24 (A) in clause (i)—
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1 (i) by striking ‘‘$6,000’’ and inserting

2 ‘‘$10,000’’; and

3 (ii) by striking ‘‘1993–1994’’ and in4 serting ‘‘1999–2000’’; and

5 (B) in clause (ii)—

6 (i) in the matter preceding subclause

7 (I), by striking ‘‘1993–1994’’ and inserting

8 ‘‘1999–2000’’;

9 (ii) in subclause (I), by striking

10 ‘‘$9,000 for the academic year 1993–

11 1994’’ and inserting ‘‘$10,000 for the aca12 demic year 1999–2000’’; and

13 (iii) in subclause (II), by striking

14 ‘‘$9,000’’ and inserting ‘‘$10,000’’.

15 (d) AUTHORIZATION OF APPROPRIATIONS.—Section

16 515 (as redesignated by section 501(4)) (20 U.S.C.

17 1134k–1) is amended by striking ‘‘1993’’ and inserting

18 ‘‘1999’’.

19 PART B—GRADUATE ASSISTANCE IN AREAS OF

20 NATIONAL NEED

21 SEC. 521. GRADUATE ASSISTANCE IN AREAS OF NATIONAL

22 NEED.

23 (a) DESIGNATION OF AREAS OF NATIONAL NEED.—

24 Subsection (b) of section 523 (as redesignated by section

25 501(5)) (20 U.S.C. 1134n) is amended to read as follows:
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•S 1882 IS

1 ‘‘(b) DESIGNATION OF AREAS OF NATIONAL

2 NEED.—After consultation with the National Science

3 Foundation, the National Academy of Sciences, and other

4 appropriate Federal and nonprofit agencies and organiza5 tions, the Secretary shall designate areas of national need.

6 In making such designations, the Secretary shall take into

7 consideration—

8 ‘‘(1) the extent to which the national interest in

9 the area is compelling;

10 ‘‘(2) the extent to which other Federal pro11 grams support postbaccalaureate study in the area

12 concerned; and

13 ‘‘(3) an assessment of how the program may

14 achieve the most significant impact with available re15 sources.’’.

16 (b) CONTENT OF APPLICATIONS.—Section 524(b) (as

17 redesignated by section 501(5)) (20 U.S.C. 1134o(b)) is

18 amended—

19 (1) in paragraph (2)—

20 (A) by striking ‘‘funds’’ and inserting

21 ‘‘sources’’; and

22 (B) by inserting ‘‘, which contribution may

23 be in cash or in kind, fairly valued’’ before the

24 semicolon;
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1 (2) by redesignating paragraphs (4) through

2 (9) as paragraphs (5) through (10), respectively;

3 (3) by inserting after paragraph (3) the follow4 ing:

5 ‘‘(4) describe the number, types, and amounts

6 of the fellowships that the applicant intends to offer

7 with grant funds provided under this part;’’ and

8 (4) in paragraph (5)(A) (as redesignated by

9 paragraph (2)), by striking ‘‘criteria developed by

10 the institution’’ and inserting ‘‘part F of title IV’’.

11 (c) AWARDS.—Section 525 (as redesignated by sec12 tion 501(5)) (20 U.S.C. 1134p) is amended—

13 (1) in the third sentence of subsection (b)—

14 (A) by striking ‘‘1993–1994’’ and inserting

15 ‘‘1999–2000’’; and

16 (B) by striking ‘‘according to measure17 ments of need approved by the Secretary’’ and

18 inserting ‘‘determined in accordance with part

19 F of title IV’’; and

20 (2) in subsection (c), by striking ‘‘such pay21 ments’’ and inserting ‘‘such excess’’.

22 (d) INSTITUTIONAL PAYMENTS.—Section 526(a)(1)

23 (as redesignated by section 501(5)) (20 U.S.C.

24 1134q(a)(1)) is amended—

25 (1) in subparagraph (A)—
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1 (A) by striking ‘‘$6,000 annually’’ and in2 serting ‘‘$10,000 for each academic year,’’; and

3 (B) by striking ‘‘1993–1994’’ and insert4 ing ‘‘1999–2000’’; and

5 (2) in subparagraph (B)—

6 (A) in the matter preceding clause (i), by

7 striking ‘‘1993–1994’’ and inserting ‘‘1999–

8 2000’’;

9 (B) in clause (i), by striking ‘‘$9,000 for

10 the academic year 1993–1994’’ and inserting

11 ‘‘$10,000 for the academic year 1999–2000’’;

12 and

13 (C) in clause (ii), by striking ‘‘$9,000’’ and

14 inserting ‘‘$10,000’’.

15 (e) AUTHORIZATION OF APPROPRIATIONS.—Section

16 527 (as redesignated by section 501(5)) (20 U.S.C.

17 1134q–1) is amended by striking ‘‘$40,000,000 for fiscal

18 year 1993’’ and inserting ‘‘$30,000,000 for fiscal year

19 1999’’.

20 PART C—URBAN COMMUNITY SERVICE

21 SEC. 531. URBAN COMMUNITY SERVICE.

22 (a) PRIORITY.—Section 533(b) (as redesignated by

23 section 501(a)(6)) (20 U.S.C. 1136b(b)) is amended by

24 adding at the end the following: ‘‘In addition, the Sec25 retary shall give priority to eligible institutions submitting
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•S 1882 IS

1 applications that demonstrate the eligible institution’s

2 commitment to urban community service.’’.

3 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

4 539 (as redesignated by section 501(a)(6)) (20 U.S.C.

5 1136h) is amended by striking ‘‘1993’’ and inserting

6 ‘‘1999’’.

7 PART D—FUND FOR THE IMPROVEMENT OF

8 POSTSECONDARY EDUCATION

9 SEC. 541. FUND FOR THE IMPROVEMENT OF POSTSECOND10 ARY EDUCATION.

11 (a) AUTHORITY.—Section 541(a) (as redesignated by

12 section 501(a)(7)) (20 U.S.C. 1135(a)) is amended—

13 (1) in the matter preceding paragraph (1)—

14 (A) by striking ‘‘or combinations of such

15 institutions’’ and inserting ‘‘, combinations of

16 such institutions,’’; and

17 (B) by striking ‘‘institutions and combina18 tions of such institutions’’ and inserting ‘‘insti19 tutions, combinations, and agencies’’; and

20 (2) in paragraph (2)—

21 (A) by striking ‘‘and programs involving

22 new’’ and inserting ‘‘, programs and joint ef23 forts involving’’; and

24 (B) by striking ‘‘new combinations’’ and

25 inserting ‘‘combinations’’.
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1 (b) TECHNICAL EMPLOYEES.—Section 543(a) (as re2 designated by section 501(a)(7)) (20 U.S.C. 1135a–2(a))

3 is amended by striking ‘‘5 technical’’ and inserting ‘‘7

4 technical’’.

5 (c) AUTHORIZATION OF APPROPRIATIONS.—Section

6 544 (as redesignated by section 501(a)(7)) (20 U.S.C.

7 1135a–3) is amended—

8 (1) in subsection (a), by striking ‘‘$20,000,000

9 for fiscal year 1993’’ and inserting ‘‘$26,000,000 for

10 fiscal year 1999’’; and

11 (2) in subsection (b), by striking ‘‘1993’’ and

12 inserting ‘‘1999’’.

13 (d) AREAS OF NATIONAL NEED.—

14 (1) AREAS.—Section 551(c) (as redesignated by

15 section 501(a)(7)) (20 U.S.C. 1135a–11(c)) is

16 amended—

17 (A) in paragraph (2), by striking ‘‘Campus

18 climate and culture’’ and inserting ‘‘Institu19 tional restructuring to improve learning and

20 promote cost efficiencies’’;

21 (B) in paragraph (3), by inserting ‘‘of

22 model programs’’ after ‘‘dissemination’’; and

23 (C) by adding at the end the following:

24 ‘‘(4) Articulation between 2-year and 4-year in25 stitutions of higher education, including developing
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1 innovative methods for ensuring the successful

2 transfer of students from 2-year to 4-year institu3 tions of higher education.’’.

4 (2) AUTHORIZATION OF APPROPRIATIONS.—

5 Section 551(d) (as redesignated by section

6 501(a)(7)) (20 U.S.C. 1135a–11(d)) is amended by

7 striking ‘‘1993’’ and inserting ‘‘1999’’.

8 PART E—HIGHER EDUCATION ACCESS FOR STU9 DENTS WITH DISABILITIES; GENERAL PROVI10 SIONS

11 SEC. 551. HIGHER EDUCATION ACCESS FOR STUDENTS

12 WITH DISABILITIES; GENERAL PROVISIONS.

13 Title V (20 U.S.C. 1101 et seq.) is amended further

14 by adding at the end the following:

15 ‘‘PART F—HIGHER EDUCATION ACCESS FOR

16 STUDENTS WITH DISABILITIES

17 ‘‘SEC. 571. HIGHER EDUCATION ACCESS FOR STUDENTS

18 WITH DISABILITIES.

19 ‘‘(a) PURPOSE.—It is the purpose of this part—

20 ‘‘(1) to support the development of model pro21 grams to provide technical assistance or training,

22 and professional development, for faculty and ad23 ministrators in institutions of higher education, as

24 defined in section 481(a), to provide the faculty and
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1 administrators with the skills and assistance to

2 teach effectively students with disabilities; and

3 ‘‘(2) to ensure effective evaluation and dissemi4 nation of such model programs.

5 ‘‘(b) GRANTS AUTHORIZED.—

6 ‘‘(1) IN GENERAL.—The Secretary is authorized

7 to award grants to institutions of higher education

8 to carry out the purposes of this part.

9 ‘‘(2) MODEL PROGRAMS.—To the extent fea10 sible, the model programs developed under this part

11 shall be developed for a range of types and sizes of

12 institutions of higher education.

13 ‘‘(3) GEOGRAPHIC DISTRIBUTION.—In awarding

14 grants under this part, the Secretary shall con15 sider—

16 ‘‘(A) providing an equitable geographic dis17 tribution of such grants; and

18 ‘‘(B) distributing such grants to urban and

19 rural areas.

20 ‘‘(4) APPROACHES.—The Secretary shall award

21 grants under this part for a range of approaches to

22 providing support to faculty and administrators,

23 such as in-service training, professional development,

24 customized and general technical assistance, work-
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1 shops, summer institutes, distance learning and the

2 use of educational technology.

3 ‘‘(c) DISSEMINATION OF GRANTS.—The Secretary

4 may award grants to institutions of higher education that

5 have demonstrated exceptional programs for students with

6 disabilities under this part in order to disseminate those

7 programs.

8 ‘‘(d) APPLICATIONS.—Each institution of higher edu9 cation desiring a grant under this part shall submit an

10 application to the Secretary at such time, in such manner,

11 and accompanied by such information as the Secretary

12 may require. Each such application shall include—

13 ‘‘(1) a plan to assess the needs of the institu14 tion of higher education in order to meet the pur15 poses of this part, in consultation with a broad

16 range of persons within that institution; and

17 ‘‘(2) a plan for coordinating with or collaborat18 ing with the office within the institution that pro19 vides services to students with disabilities, and the

20 equal opportunity office within the institution, if the

21 offices exist.

22 ‘‘(e) USE OF FUNDS.—Any institution of higher edu23 cation receiving a grant under this part—

24 ‘‘(1) shall use the grant funds to—

25 ‘‘(A) meet the purposes of this section; and
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•S 1882 IS

1 ‘‘(B) ensure that projects assisted under

2 this part include components for model develop3 ment, demonstration, evaluation, and dissemi4 nation to other institutions of higher education;

5 and

6 ‘‘(2) may include, to the extent practicable,

7 graduate teaching assistants in the services provided

8 under the grant.

9 ‘‘(f) GRANT AWARDS.—The Secretary shall award

10 grants under this part for a period of 3 years.

11 ‘‘(g) CONSTRUCTION.—Nothing in this section shall

12 be construed to impose any additional duty, obligation, or

13 responsibility on an institution of higher education, or on

14 the institution’s administrators, faculty, or staff, in addi15 tion to the requirements of section 504 of the Rehabilita16 tion Act of 1973 and the Americans with Disabilities Act

17 of 1990.

18 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There

19 are authorized to be appropriated to carry out this section

20 $10,000,000 for fiscal year 1999 and such sums as may

21 be necessary for each of the 4 succeeding fiscal years.
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1 ‘‘PART G—GENERAL PROVISIONS

2 ‘‘SEC. 581. ADMINISTRATIVE PROVISIONS FOR PARTS A AND

3 B.

4 ‘‘(a) COORDINATED ADMINISTRATION.—In carrying

5 out the purpose described in section 500(1), the Secretary

6 shall provide for coordinated administration and regula7 tion of graduate programs assisted under parts A and B

8 with other Federal programs providing assistance for

9 graduate education in order to minimize duplication and

10 improve efficiency to ensure that the programs are carried

11 out in a manner most compatible with academic practices

12 and with the standard timetables for applications for, and

13 notifications of acceptance to, graduate programs.

14 ‘‘(b) HIRING AUTHORITY.—For purposes of carrying

15 out parts A and B, the Secretary shall appoint, without

16 regard to the provisions of title 5, United States Code,

17 that govern appointments in the competitive service, such

18 administrative and technical employees, with the appro19 priate educational background, as shall be needed to assist

20 in the administration of such parts. The employees shall

21 be paid without regard to the provisions of chapter 51 and

22 subchapter III of chapter 53 of such title relating to classi23 fication and General Schedule pay rates.

24 ‘‘(c) USE FOR RELIGIOUS PURPOSES PROHIBITED.—

25 No institutional payment or allowance under section

26 513(b) or 526 shall be paid to a school or department of
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1 divinity as a result of the award of a fellowship under part

2 A or B, respectively, to an individual who is studying for

3 a religious vocation.

4 ‘‘(d) EVALUATION.—The Secretary shall evaluate the

5 success of assistance provided to individuals under part

6 A or B with respect to graduating from their degree pro7 grams, and placement in faculty and professional posi8 tions.

9 ‘‘(e) CONTINUATION AWARDS.—The Secretary, using

10 funds appropriated to carry out parts A and B, and before

11 awarding any assistance under such parts to a recipient

12 that did not receive assistance under part C or D of title

13 IX (as such parts were in effect prior to the date of enact14 ment of the Higher Education Amendments of 1998) shall

15 continue to provide funding to recipients of assistance

16 under such part C or D (as so in effect), as the case may

17 be, pursuant to any multiyear award of such assistance.’’.

18 TITLE VI—INTERNATIONAL

19 EDUCATION PROGRAMS

20 SEC. 601. INTERNATIONAL AND FOREIGN LANGUAGE STUD21 IES.

22 Part A of title VI (20 U.S.C. 1121 et seq.) is amend23 ed to read as follows:
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1 ‘‘PART A—INTERNATIONAL AND FOREIGN

2 LANGUAGE STUDIES

3 ‘‘SEC. 601. FINDINGS AND PURPOSES.

4 ‘‘(a) FINDINGS.—The Congress finds that—

5 ‘‘(1) the well-being of the United States, its

6 economy and long-range security, is dependent on

7 the education and training of Americans in inter8 national and foreign language studies and on a

9 strong research base in these areas;

10 ‘‘(2) knowledge of other countries and the abil11 ity to communicate in other languages is essential to

12 the promotion of mutual understanding and coopera13 tion among nations; and

14 ‘‘(3) systematic efforts are necessary to enhance

15 the capacity of institutions of higher education in

16 the United States for—

17 ‘‘(A) producing graduates with inter18 national and foreign language expertise and

19 knowledge; and

20 ‘‘(B) research regarding such expertise and

21 knowledge.

22 ‘‘(b) PURPOSES.—It is the purpose of this part—

23 ‘‘(1) to assist in the development of knowledge,

24 international study, resources and trained personnel;

25 ‘‘(2) to stimulate the attainment of foreign lan26 guage acquisition and fluency;
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1 ‘‘(3) to develop a pool of international experts

2 to meet national needs; and

3 ‘‘(4) to coordinate the programs of the Federal

4 Government in the areas of foreign language, area

5 and other international studies, including profes6 sional international affairs education, and research.

7 ‘‘SEC. 602. GRADUATE AND UNDERGRADUATE LANGUAGE

8 AND AREA CENTERS AND PROGRAMS.

9 ‘‘(a) NATIONAL LANGUAGE AND AREA CENTERS AND

10 PROGRAMS AUTHORIZED.—

11 ‘‘(1) CENTERS AND PROGRAMS.—

12 ‘‘(A) IN GENERAL.—The Secretary is au13 thorized—

14 ‘‘(i) to make grants to institutions of

15 higher education, or combinations thereof,

16 for the purpose of establishing, strengthen17 ing, and operating comprehensive language

18 and area centers and programs; and

19 ‘‘(ii) to make grants to such institu20 tions or combinations for the purpose of

21 establishing, strengthening, and operating

22 a diverse network of undergraduate lan23 guage and area centers and programs.
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1 ‘‘(B) NATIONAL RESOURCES.—The centers

2 and programs referred to in paragraph (1) shall

3 be national resources for—

4 ‘‘(i) teaching of any modern foreign

5 language;

6 ‘‘(ii) instruction in fields needed to

7 provide full understanding of areas, re8 gions, or countries in which such language

9 is commonly used;

10 ‘‘(iii) research and training in inter11 national studies, and the international and

12 foreign language aspects of professional

13 and other fields of study; and

14 ‘‘(iv) instruction and research on

15 issues in world affairs which concern one

16 or more countries.

17 ‘‘(2) AUTHORIZED ACTIVITIES.—Any such

18 grant may be used to pay all or part of the cost of

19 establishing or operating a center or program, in20 cluding the cost of—

21 ‘‘(A) faculty, staff, and student travel in

22 foreign areas, regions, or countries;

23 ‘‘(B) teaching and research materials;

24 ‘‘(C) curriculum planning and develop25 ment;
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1 ‘‘(D) bringing visiting scholars and faculty

2 to the center to teach or to conduct research;

3 ‘‘(E) establishing and maintaining linkages

4 with overseas institutions of higher education

5 and other organizations that may contribute to

6 the teaching and research of the center or pro7 gram; and

8 ‘‘(F) training and improvement of the

9 staff, for the purpose of, and subject to such

10 conditions as the Secretary finds necessary for,

11 carrying out this section.

12 ‘‘(3) GRANTS TO MAINTAIN LIBRARY COLLEC13 TIONS.—The Secretary may make grants to centers

14 described in paragraph (1) having important library

15 collections, as determined by the Secretary, for the

16 maintenance of such collections.

17 ‘‘(4) OUTREACH GRANTS AND SUMMER INSTI18 TUTES.—The Secretary may make additional grants

19 to centers described in paragraph (1) for any one or

20 more of the following purposes:

21 ‘‘(A) Programs of linkage or outreach be22 tween foreign language, area studies, and other

23 international fields and professional schools and

24 colleges.
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1 ‘‘(B) Programs of linkage or outreach with

2 2-year and 4-year colleges and universities.

3 ‘‘(C) Programs of linkage or outreach with

4 departments or agencies of Federal and State

5 Governments.

6 ‘‘(D) Programs of linkage or outreach with

7 the news media, business, professional, or trade

8 associations.

9 ‘‘(E) Summer institutes in foreign area,

10 foreign language, and other international fields

11 designed to carry out the programs of linkage

12 and outreach in subparagraphs (A), (B), (C),

13 and (D).

14 ‘‘(b) STIPENDS FOR FOREIGN LANGUAGE AND AREA

15 STUDIES.—

16 ‘‘(1) IN GENERAL.—The Secretary is authorized

17 to make grants to institutions of higher education or

18 combinations of such institutions for the purpose of

19 paying stipends to individuals undergoing advanced

20 training in any center or program approved by the

21 Secretary.

22 ‘‘(2) REQUIREMENTS.—Students receiving sti23 pends described in paragraph (1) shall be individuals

24 who are engaged in an instructional program with

25 stated performance goals for functional foreign lan-
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1 guage use or in a program developing such perform2 ance goals, in combination with area studies, inter3 national studies, or the international aspects of a

4 professional studies program.

5 ‘‘(3) ALLOWANCES.—Stipends awarded to grad6 uate level recipients may include allowances for de7 pendents and for travel for research and study in

8 the United States and abroad.

9 ‘‘(c) SPECIAL RULE WITH RESPECT TO TRAVEL.—

10 No funds may be expended under this part for under11 graduate travel except in accordance with rules prescribed

12 by the Secretary setting forth policies and procedures to

13 assure that Federal funds made available for such travel

14 are expended as part of a formal program of supervised

15 study.

16 ‘‘SEC. 603. LANGUAGE RESOURCE CENTERS.

17 ‘‘(a) LANGUAGE RESOURCE CENTERS AUTHOR18 IZED.—The Secretary is authorized to make grants to and

19 enter into contracts with institutions of higher education,

20 or combinations of such institutions, for the purpose of

21 establishing, strengthening, and operating a small number

22 of national language resource and training centers, which

23 shall serve as resources to improve the capacity to teach

24 and learn foreign languages effectively.
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1 ‘‘(b) AUTHORIZED ACTIVITIES.—The activities car2 ried out by the centers described in subsection (a)—

3 ‘‘(1) shall include effective dissemination ef4 forts, whenever appropriate; and

5 ‘‘(2) may include—

6 ‘‘(A) the conduct and dissemination of re7 search on new and improved teaching methods,

8 including the use of advanced educational tech9 nology;

10 ‘‘(B) the development and dissemination of

11 new teaching materials reflecting the use of

12 such research in effective teaching strategies;

13 ‘‘(C) the development, application, and dis14 semination of performance testing appropriate

15 to an educational setting for use as a standard

16 and comparable measurement of skill levels in

17 all languages;

18 ‘‘(D) the training of teachers in the admin19 istration and interpretation of performance

20 tests, the use of effective teaching strategies,

21 and the use of new technologies;

22 ‘‘(E) the publication and dissemination to

23 individuals and organizations in the foreign lan24 guage field of instructional materials in the less

25 commonly taught languages;
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1 ‘‘(F) the development and dissemination of

2 materials designed to serve as a resource for

3 foreign language teachers at the elementary and

4 secondary school levels; and

5 ‘‘(G) the operation of intensive summer

6 language institutes to train advanced foreign

7 language students, provide professional develop8 ment, and improve language instruction

9 through preservice and inservice language train10 ing for teachers.

11 ‘‘(c) CONDITIONS FOR GRANTS.—Grants under this

12 section shall be made on such conditions as the Secretary

13 determines to be necessary to carry out the provisions of

14 this section.

15 ‘‘SEC. 604. UNDERGRADUATE INTERNATIONAL STUDIES

16 AND FOREIGN LANGUAGE PROGRAMS.

17 ‘‘(a) INCENTIVES FOR THE CREATION OF NEW PRO18 GRAMS AND THE STRENGTHENING OF EXISTING PRO19 GRAMS IN UNDERGRADUATE INTERNATIONAL STUDIES

20 AND FOREIGN LANGUAGES.—

21 ‘‘(1) AUTHORITY.—The Secretary is authorized

22 to make grants to institutions of higher education,

23 combinations of such institutions, or partnerships

24 between nonprofit educational institutions and insti25 tutions of higher education, to assist such institu-
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1 tions, combinations or partnerships in planning, de2 veloping, and carrying out programs to improve un3 dergraduate instruction in international studies and

4 foreign languages. Such grants shall be awarded to

5 institutions, combinations or partnerships seeking to

6 create new programs or to strengthen existing pro7 grams in area studies, foreign languages, and other

8 international fields.

9 ‘‘(2) FEDERAL SHARE AND USE OF FUNDS.—

10 Grants made under this section may be used to pay

11 not more than 50 percent of the cost of projects and

12 activities which are an integral part of such a pro13 gram, such as—

14 ‘‘(A) planning for the development and ex15 pansion of undergraduate programs in inter16 national studies and foreign languages;

17 ‘‘(B) teaching, research, curriculum devel18 opment, faculty training in the United States or

19 abroad, and other related activities, including

20 the expansion of library and teaching resources;

21 ‘‘(C) expansion of opportunities for learn22 ing foreign languages, including less commonly

23 taught languages;
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1 ‘‘(D) programs under which foreign teach2 ers and scholars may visit institutions as visit3 ing faculty;

4 ‘‘(E) programs designed to develop or en5 hance linkages between 2-year and 4-year insti6 tutions of higher education, or baccalaureate

7 and post-baccalaureate programs or institu8 tions;

9 ‘‘(F) the development of undergraduate

10 study abroad programs in locations abroad in

11 which such study opportunities are not other12 wise available and the integration of these pro13 grams into specific on-campus degree programs;

14 ‘‘(G) the development of model programs

15 to enhance the effectiveness of study abroad, in16 cluding predeparture and post return programs;

17 ‘‘(H) the development of programs de18 signed to integrate professional and technical

19 education with area studies, foreign languages,

20 and other international fields;

21 ‘‘(I) the conduct of summer institutes in

22 foreign area, foreign language, and other inter23 national fields for purposes that are consistent

24 with the projects and activities described in this

25 subsection; and
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1 ‘‘(J) the development of partnerships be2 tween institutions of higher education and the

3 private sector, government, and elementary and

4 secondary education institutions to enhance

5 international knowledge.

6 ‘‘(3) NON-FEDERAL SHARE.—The non-Federal

7 share of the cost of the programs assisted under this

8 subsection may be provided either in cash or in kind.

9 Such assistance may be composed of institutional

10 and noninstitutional funds, including State, private

11 sector, corporation, or foundation contributions.

12 ‘‘(4) PRIORITY.—In awarding grants under this

13 section, the Secretary shall give priority to applica14 tions from institutions of higher education, combina15 tions or partnerships that require entering students

16 to have successfully completed at least 2 years of

17 secondary school foreign language instruction or

18 that require each graduating student to earn 2 years

19 of postsecondary credit in a foreign language (or

20 have demonstrated equivalent competence in the for21 eign language) or, in the case of a 2-year degree

22 granting institution, offer 2 years of postsecondary

23 credit in a foreign language.

24 ‘‘(5) GRANT CONDITIONS.—Grants under this

25 subsection shall be made on such conditions as the
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1 Secretary determines to be necessary to carry out

2 this subsection.

3 ‘‘(6) APPLICATION.—Each application for as4 sistance under this subsection shall include—

5 ‘‘(A) evidence that the applicant has con6 ducted extensive planning prior to submitting

7 the application;

8 ‘‘(B) an assurance that the faculty and ad9 ministrators of all relevant departments and

10 programs served by the applicant are involved

11 in ongoing collaboration with regard to achiev12 ing the stated objectives of the application;

13 ‘‘(C) an assurance that students at the ap14 plicant institutions, as appropriate, will have

15 equal access to, and derive benefits from, the

16 program assisted under this subsection; and

17 ‘‘(D) an assurance that each institution,

18 combination or partnership will use the Federal

19 assistance provided under this subsection to

20 supplement and not supplant funds expended

21 by the institution, prior to the receipt of the

22 Federal assistance, for programs to improve un23 dergraduate instruction in international studies

24 and foreign languages.
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1 ‘‘(7) EVALUATION.—The Secretary may estab2 lish requirements for program evaluations and re3 quire grant recipients to submit annual reports that

4 evaluate the progress and performance of students

5 participating in programs assisted under this sub6 section.

7 ‘‘(b) PROGRAMS OF NATIONAL SIGNIFICANCE.—The

8 Secretary may also award grants to public and private

9 nonprofit agencies and organizations, including profes10 sional and scholarly associations, whenever the Secretary

11 determines such grants will make an especially significant

12 contribution to improving undergraduate international

13 studies and foreign language programs.

14 ‘‘SEC. 605. RESEARCH; STUDIES; ANNUAL REPORT.

15 ‘‘(a) AUTHORIZED ACTIVITIES.—The Secretary may,

16 directly or through grants or contracts, conduct research

17 and studies that contribute to achieving the purposes of

18 this part. Such research and studies may include—

19 ‘‘(1) studies and surveys to determine needs for

20 increased or improved instruction in foreign lan21 guage, area studies, or other international fields, in22 cluding the demand for foreign language, area, and

23 other international specialists in government, edu24 cation, and the private sector;
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1 ‘‘(2) studies and surveys to assess the utiliza2 tion of graduates of programs supported under this

3 title by governmental, educational, and private sec4 tor organizations and other studies assessing the

5 outcomes and effectiveness of programs so sup6 ported;

7 ‘‘(3) evaluation of the extent to which programs

8 assisted under this title that address national needs

9 would not otherwise be offered;

10 ‘‘(4) comparative studies of the effectiveness of

11 strategies to provide international capabilities at in12 stitutions of higher education;

13 ‘‘(5) research on more effective methods of pro14 viding instruction and achieving competency in for15 eign languages;

16 ‘‘(6) the development and publication of special17 ized materials for use in foreign language, area stud18 ies, and other international fields, or for training

19 foreign language, area, and other international spe20 cialists;

21 ‘‘(7) studies and evaluations of effective prac22 tices in the dissemination of international informa23 tion, materials, research, teaching strategies, and

24 testing techniques throughout the education commu-
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1 nity, including elementary and secondary schools;

2 and

3 ‘‘(8) the application of performance tests and

4 standards across all areas of foreign language in5 struction and classroom use.

6 ‘‘(b) ANNUAL REPORT.—The Secretary shall pre7 pare, publish, and announce an annual report listing the

8 books and research materials produced with assistance

9 under this section.

10 ‘‘SEC. 606. SELECTION OF CERTAIN GRANT RECIPIENTS.

11 ‘‘(a) COMPETITIVE GRANTS.—The Secretary shall

12 award grants under section 602 competitively on the basis

13 of criteria that separately, but not less rigorously, evalu14 ates the applications for comprehensive and undergradu15 ate language and area centers and programs.

16 ‘‘(b) SELECTION CRITERIA.—The Secretary shall set

17 criteria for grants awarded under section 602 by which

18 a determination of excellence shall be made to meet the

19 differing objectives of graduate and undergraduate institu20 tions.

21 ‘‘(c) EQUITABLE DISTRIBUTION OF GRANTS.—The

22 Secretary shall, to the extent practicable, award grants

23 under this part (other than section 602) in such manner

24 as to achieve an equitable distribution of the grant funds

25 throughout the United States, based on the merit of a pro-
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1 posal as determined pursuant to a peer review process in2 volving broadly representative professionals.

3 ‘‘SEC. 607. EQUITABLE DISTRIBUTION OF CERTAIN FUNDS.

4 ‘‘(a) SELECTION CRITERIA.—The Secretary shall

5 make excellence the criterion for selection of grants award6 ed under section 602.

7 ‘‘(b) EQUITABLE DISTRIBUTION.—To the extent

8 practicable and consistent with the criterion of excellence,

9 the Secretary shall award grants under this part (other

10 than section 602) in such a manner as will achieve an eq11 uitable distribution of funds throughout the United States.

12 ‘‘(c) SUPPORT FOR UNDERGRADUATE EDUCATION.—

13 The Secretary shall also award grants under this part in

14 such manner as to ensure that an appropriate portion of

15 the funds appropriated for this part (as determined by the

16 Secretary) are used to support undergraduate education.

17 ‘‘SEC. 608. AMERICAN OVERSEAS RESEARCH CENTERS.

18 ‘‘(a) CENTERS AUTHORIZED.—The Secretary is au19 thorized to make grants to and enter into contracts with

20 any American overseas research center that is a consor21 tium of institutions of higher education (hereafter in this

22 section referred to as a ‘‘center’’) to enable such center

23 to promote postgraduate research, exchanges and area

24 studies.
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1 ‘‘(b) USE OF GRANTS.—Grants made and contracts

2 entered into pursuant to this section may be used to pay

3 all or a portion of the cost of establishing or operating

4 a center or program, including—

5 ‘‘(1) the cost of faculty and staff stipends and

6 salaries;

7 ‘‘(2) the cost of faculty, staff, and student trav8 el;

9 ‘‘(3) the cost of the operation and maintenance

10 of overseas facilities;

11 ‘‘(4) the cost of teaching and research mate12 rials;

13 ‘‘(5) the cost of acquisition, maintenance, and

14 preservation of library collections;

15 ‘‘(6) the cost of bringing visiting scholars and

16 faculty to a center to teach or to conduct research;

17 ‘‘(7) the cost of organizing and managing con18 ferences; and

19 ‘‘(8) the cost of publication and dissemination

20 of material for the scholarly and general public.

21 ‘‘(c) LIMITATION.—The Secretary shall only award

22 grants to and enter into contracts with centers under this

23 section that—
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1 ‘‘(1) receive more than 50 percent of their

2 funding from public or private United States

3 sources;

4 ‘‘(2) have a permanent presence in the country

5 in which the center is located; and

6 ‘‘(3) are organizations described in section

7 501(c)(3) of the Internal Revenue Code of 1986

8 which are exempt from taxation under section

9 501(a) of such Code.

10 ‘‘(d) DEVELOPMENT GRANTS.—The Secretary is au11 thorized to make grants for the establishment of new cen12 ters. The grants may be used to fund activities that, with13 in 1 year, will result in the creation of a center described

14 in subsection (c).

15 ‘‘SEC. 609. AUTHORIZATION OF APPROPRIATIONS.

16 ‘‘There are authorized to be appropriated to carry out

17 this part $80,000,000 for fiscal year 1999, and such sums

18 as may be necessary for each of the 4 succeeding fiscal

19 years.’’.

20 SEC. 602. BUSINESS AND INTERNATIONAL EDUCATION PRO21 GRAMS.

22 Part B of title VI (20 U.S.C. 1130 et seq.) is amend23 ed—

24 (1) in section 612 (20 U.S.C. 1130–1)—

25 (A) in subsection (c)—
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1 (i) in paragraph (1)—

2 (I) in subparagraph (B), by

3 striking ‘‘advanced’’; and

4 (II) in subparagraph (C), by

5 striking ‘‘evening or summer’’; and

6 (ii) in paragraph (2)(C), by inserting

7 ‘‘foreign language,’’ after ‘‘studies,’’; and

8 (B) in subsection (d)(2)(G), by inserting ‘‘,

9 such as a representative of a community college

10 in the region served by the center’’ before the

11 period; and

12 (2) in section 614 (20 U.S.C. 1130b)—

13 (A) in subsection (a), by striking ‘‘1993’’

14 and inserting ‘‘1999’’; and

15 (B) in subsection (b), by striking ‘‘1993’’

16 and inserting ‘‘1999’’.

17 SEC. 603. INSTITUTE FOR INTERNATIONAL PUBLIC POLICY.

18 Part C of title VI (20 U.S.C. 1131 et seq.) is amend19 ed—

20 (1) in section 621(e) (20 U.S.C. 1131(e))—

21 (A) by striking ‘‘one-fourth’’ and inserting

22 ‘‘one-half’’; and

23 (B) by adding at the end the following:

24 ‘‘The non-Federal contribution shall be made

25 from private sector sources.’’;
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1 (2) by redesignating sections 622 through 627

2 (20 U.S.C. 1131a and 1131f) as sections 623

3 through 628, respectively; and

4 (3) by inserting after section 621 (20 U.S.C.

5 1131) the following:

6 ‘‘SEC. 622. INSTITUTIONAL DEVELOPMENT.

7 ‘‘(a) IN GENERAL.—The Institute shall award

8 grants, from amounts available to the Institute for each

9 fiscal year, to historically Black colleges and universities,

10 Hispanic-serving institutions, tribally controlled commu11 nity colleges, and minority institutions, to enable such col12 leges, universities, and institutions to strengthen inter13 national affairs programs.

14 ‘‘(b) APPLICATION.—No grant may be made by the

15 Institute unless an application is made by the college, uni16 versity, or institution at such time, in such manner, and

17 accompanied by such information as the Institute may re18 quire.

19 ‘‘(c) DEFINITIONS.—In this section—

20 ‘‘(1) the term ‘historically Black college and

21 university’ has the meaning given the term in sec22 tion 322;

23 ‘‘(2) the term ‘Hispanic-serving institution’ has

24 the meaning given the term in section 316(b);
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1 ‘‘(3) the term ‘tribally controlled community

2 college’ has the meaning given the term in section 2

3 of the Tribally Controlled Community College Assist4 ance Act of 1978 (25 U.S.C. 1801); and

5 ‘‘(4) the term ‘minority institution’ has the

6 meaning given the term in section 1046.’’;

7 (4) in section 623 (as redesignated by para8 graph (2))—

9 (A) in the section heading, by striking

10 ‘‘JUNIOR YEAR’’ and inserting ‘‘STUDY’’;

11 (B) in subsection (b)(2)—

12 (i) by inserting ‘‘, or completing the

13 third year of study in the case of a sum14 mer abroad program,’’ after ‘‘study’’; and

15 (ii) by striking ‘‘junior year’’ and in16 serting ‘‘study’’;

17 (C) in subsection (c)—

18 (i) in the matter preceding paragraph

19 (1), by striking ‘‘junior year’’ and inserting

20 ‘‘study’’;

21 (ii) in paragraph (1), by striking

22 ‘‘junior year’’ and inserting ‘‘study’’; and

23 (iii) in paragraph (2)—

24 (I) by striking ‘‘one-half’’ and in25 serting ‘‘one-third’’; and
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1 (II) by striking ‘‘junior year’’

2 and inserting ‘‘study’’;

3 (5) in section 627 (as redesignated by para4 graph (2)) (20 U.S.C. 1131e), by striking ‘‘625’’

5 and inserting ‘‘626’’; and

6 (6) in section 628 (as redesignated by para7 graph (2)) (20 U.S.C. 1131f), by striking ‘‘1993’’

8 and inserting ‘‘1999’’.

9 SEC. 604. GENERAL PROVISIONS.

10 Section 632 (20 U.S.C. 1132–1) is repealed.

11 TITLE VII—RELATED PROGRAMS

12 AND AMENDMENTS TO OTHER

13 ACTS

14 PART A—INDIAN EDUCATION PROGRAMS

15 SEC. 711. TRIBALLY CONTROLLED COMMUNITY COLLEGE

16 ASSISTANCE ACT OF 1978.

17 (a) REAUTHORIZATION.—

18 (1) AMOUNT OF GRANTS.—Section 108(a)(2) of

19 the Tribally Controlled Community College Assist20 ance Act of 1978 (25 U.S.C. 1808(a)(2)) is amend21 ed by striking ‘‘$5,820’’ and inserting ‘‘$6,000’’.

22 (2) AUTHORIZATION OF APPROPRIATIONS.—

23 (A) TITLE I.—Section 110(a) of the Trib24 ally Controlled Community College Assistance

25 Act of 1978 (25 U.S.C. 1810(a)) is amended—
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1 (i) in paragraph (1), by striking

2 ‘‘1993’’ and inserting ‘‘1999’’;

3 (ii) in paragraph (2), by striking

4 ‘‘$30,000,000 for fiscal year 1993’’ and in5 serting ‘‘$40,000,000 for fiscal year

6 1999’’;

7 (iii) in paragraph (3), by striking

8 ‘‘1993’’ and inserting ‘‘1999’’; and

9 (iv) in paragraph (4), by striking

10 ‘‘1993’’ and inserting ‘‘1999’’.

11 (B) TITLE III.—Section 306(a) of the

12 Tribally Controlled Community College Assist13 ance Act of 1978 (25 U.S.C. 1836(a)) is

14 amended by striking ‘‘1993’’ and inserting

15 ‘‘1999’’.

16 (C) TITLE IV.—Section 403 of the Tribal

17 Economic Development and Technology Related

18 Education Assistance Act of 1990 (25 U.S.C.

19 1852) is amended by striking ‘‘1993’’ and in20 serting ‘‘1999’’.

21 (b) NAME CHANGE.—The Tribally Controlled Com22 munity College Assistance Act of 1978 (25 U.S.C. 1801

23 et seq.) is amended—
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1 (1) by striking ‘‘community college’’ each place

2 the term appears and inserting ‘‘college or univer3 sity’’;

4 (2) by striking ‘‘Community College’’ each place

5 the term appears (other than when such term is pre6 ceded by the term ‘‘Navajo’’) and inserting ‘‘College

7 or University’’;

8 (3) by striking ‘‘community colleges’’ each place

9 the term appears and inserting ‘‘colleges or univer10 sities’’;

11 (4) by striking ‘‘such college’’ each place the

12 term appears and inserting ‘‘such college or univer13 sity’’; and

14 (5) by striking ‘‘community college’s’’ and in15 serting ‘‘college or university’s’’.

16 SEC. 712. AMERICAN INDIAN, ALASKA NATIVE, AND NATIVE

17 HAWAIIAN CULTURE AND ART DEVELOP18 MENT.

19 Section 1531 of the American Indian, Alaska Native,

20 and Native Hawaiian Culture and Art Development Act

21 (20 U.S.C. 4451) is amended to read as follows:

22 ‘‘SEC. 1531. AUTHORIZATION OF APPROPRIATIONS.

23 ‘‘There is authorized to be appropriated to carry out

24 part A $5,000,000 for fiscal year 1999.’’.
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1 PART B—ADVANCED PLACEMENT

2 INCENTIVE PROGRAM

3 SEC. 721. ADVANCED PLACEMENT INCENTIVE PROGRAM.

4 (a) PROGRAM ESTABLISHED.—The Secretary of

5 Education is authorized to make grants to States having

6 applications approved under subsection (d), from allot7 ments under subsection (b), to enable the States to reim8 burse low-income individuals to cover part or all of the

9 cost of advanced placement test fees, if the low-income in10 dividuals—

11 (1) are enrolled in an advanced placement class;

12 and

13 (2) plan to take an advanced placement test.

14 (b) ALLOTMENT.—From the sum appropriated under

15 subsection (j) for a fiscal year, the Secretary shall allot

16 to each State an amount that bears the same relation to

17 the sum as the number of low-income individuals in the

18 State bears to the number of low-income individuals in all

19 States.

20 (c) INFORMATION DISSEMINATION.—The State edu21 cational agency may use not more than 5 percent of grant

22 funds received for a fiscal year to disseminate information

23 regarding the availability of test fee payments under this

24 section to eligible individuals through secondary school

25 teachers and guidance counselors.
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1 (d) REQUIREMENTS FOR APPROVAL OF APPLICA2 TIONS.—In approving applications for grants the Sec3 retary of Education shall—

4 (1) require that each such application contain a

5 description of the advance placement test fees the

6 State will pay on behalf of individual students;

7 (2) require an assurance that any funds re8 ceived under this section, other than funds used in

9 accordance with subsection (c), shall be used only to

10 pay advanced placement test fees; and

11 (3) contain such information as the Secretary

12 may require to demonstrate that the State will en13 sure that a student is eligible for payments under

14 this section, including the documentation required by

15 chapter 1 of subpart 2 of part A of title IV of the

16 Higher Education Act of 1965 (20 U.S.C. 1070a–11

17 et seq.).

18 (e) FUNDING RULE.—Funds provided under this sec19 tion shall be used to supplement and not supplant other

20 Federal, State, local or private funds available to assist

21 low-income individuals in paying for advanced placement

22 testing, except that such funds may be used to supplant

23 the funds so available if the funds used to supplant are

24 used to increase the participation of low-income individ25 uals in advanced placement courses through teacher train-
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1 ing and other activities directly related to increasing the

2 availability of advanced placement courses.

3 (f) SPECIAL RULE.—The Secretary of Education

4 shall only award grants under this section for a fiscal year

5 if the amount the College Board spends for the College

6 Board’s fee assistance program for low-income students

7 for the fiscal year is not less than the amount the College

8 Board spent for such program for the preceding fiscal

9 year.

10 (g) REGULATIONS.—The Secretary of Education

11 shall prescribe such regulations as are necessary to carry

12 out this section.

13 (h) REPORT.—Each State annually shall report to

14 the Secretary of Education regarding—

15 (1) the number of low-income individuals in the

16 State who receive assistance under this section; and

17 (2) the teacher training and other activities de18 scribed in subsection (e).

19 (i) DEFINITION.—In this section:

20 (1) ADVANCED PLACEMENT TEST.—The term

21 ‘‘advanced placement test’’ includes only an ad22 vanced placement test approved by the Secretary of

23 Education for the purposes of this section.

24 (2) LOW-INCOME INDIVIDUAL.—The term ‘‘low25 income individual’’ has the meaning given the term
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1 in section 402A(g)(2) of the Higher Education Act

2 of 1965 (20 U.S.C. 1070a–11(g)(2)).

3 (j) AUTHORIZATION OF APPROPRIATIONS.—There

4 are authorized to be appropriated $10,000,000 for fiscal

5 year 1999 and such sums as may be necessary for each

6 of the 4 succeeding fiscal years to carry out this section.

7 PART C—INSTITUTE FOR PEACE

8 SEC. 731. AUTHORITIES OF THE UNITED STATES INSTITUTE

9 OF PEACE.

10 The United States Institute of Peace Act (22 U.S.C.

11 4601 et seq.) is amended—

12 (1) in section 1705 (22 U.S.C. 4604)—

13 (A) in subsection (f), by inserting ‘‘per14 sonal service and other’’ after ‘‘may enter into’’;

15 and

16 (B) in subsection (o), by inserting after

17 ‘‘Services’’ the following: ‘‘and use all sources of

18 supply and services of the General Services Ad19 ministration’’;

20 (2) in section 1706(e)(4) (22 U.S.C.

21 4605(e)(4)), by adding at the end the following:

22 ‘‘Service under an appointment of less than 4 years

23 shall not be treated as a term for purposes of this

24 paragraph.’’;
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1 (3) in section 1710(a)(1) (22 U.S.C.

2 4609(a)(1)), by striking ‘‘1993’’ and inserting

3 ‘‘1999’’; and

4 (4) in the second and third sentences of section

5 1712 (22 U.S.C. 4611), by striking ‘‘shall’’ each

6 place it appears and inserting ‘‘may’’.

7 PART D—COMMUNITY SCHOLARSHIP

8 MOBILIZATION

9 SEC. 741. SHORT TITLE.

10 This part may be cited as the ‘‘Community Scholar11 ship Mobilization Act.’’

12 SEC. 742. FINDINGS.

13 Congress finds that—

14 (1) the local community, when properly orga15 nized and challenged, is one of the best sources of

16 academic support, motivation toward achievement,

17 and financial resources for aspiring postsecondary

18 students;

19 (2) local communities, working to complement

20 or augment services currently offered by area

21 schools and colleges, can raise the educational expec22 tations and increase the rate of postsecondary at23 tendance of their youth by forming locally-based or24 ganizations that provide both academic support (in25 cluding guidance, counseling, mentoring, tutoring,
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1 encouragement, and recognition) and tangible, lo2 cally raised, effectively targeted, publicly recognized,

3 financial assistance;

4 (3) proven methods of stimulating these com5 munity efforts can be promoted through Federal

6 support for the establishment of regional, State or

7 community program centers to organize and chal8 lenge community efforts to develop educational in9 centives and support for local students; and

10 (4) using Federal funds to leverage private con11 tributions to help students from low-income families

12 attain educational and career goals is an efficient

13 and effective investment of scarce taxpayer-provided

14 resources.

15 SEC. 743. DEFINITIONS.

16 In this part:

17 (1) REGIONAL, STATE OR COMMUNITY PRO18 GRAM CENTER.—The term ‘‘regional, State or com19 munity program center’’ means an organization

20 that—

21 (A) is a division of, responsible to, and

22 overseen by, the national organization; and

23 (B) is staffed by professionals trained to

24 create, develop, and sustain local entities in

25 towns, cities, and neighborhoods.
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1 (2) LOCAL ENTITY.—The term ‘‘local entity’’

2 means an organization that—

3 (A) is a nonprofit organization that is de4 scribed in section 501(c)(3) of the Internal Rev5 enue Code of 1986, and exempt from taxation

6 under section 501(a) of such Code (or shall

7 meet this criteria through affiliation with the

8 national organization);

9 (B) is formed for the purpose of providing

10 educational scholarships and academic support

11 for residents of the local community served by

12 such organization;

13 (C) solicits broad-based community sup14 port in its academic support and fund-raising

15 activities;

16 (D) is broadly representative of the local

17 community in the structures of its volunteer-op18 erated organization and has a board of direc19 tors that includes leaders from local neighbor20 hood organizations and neighborhood residents,

21 such as school or college personnel, parents,

22 students, community agency representatives, re23 tirees, and representatives of the business com24 munity;
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1 (E) awards scholarships without regard to

2 age, sex, marital status, race, creed, color, reli3 gion, national origin or disability; and

4 (F) gives priority to awarding scholarships

5 for postsecondary education to deserving stu6 dents from low-income families in the local com7 munity.

8 (3) NATIONAL ORGANIZATION.—The term ‘‘na9 tional organization’’ means an organization that—

10 (A) has the capacity to create, develop and

11 sustain local entities and affiliated regional,

12 State or community program centers;

13 (B) has the capacity to sustain newly cre14 ated local entities in towns, cities, and neigh15 borhoods through ongoing training support pro16 grams;

17 (C) is described in section 501(c)(3) of the

18 Internal Revenue Code of 1986, and exempt

19 from taxation under section 501(a) of such

20 Code;

21 (D) is a publicly supported organization

22 within the meaning of section 170(b)(1)(A)(iv)

23 of such Code;
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1 (E) ensures that each of the organization’s

2 local entities meet the criteria described in sub3 paragraphs (C) and (D); and

4 (F) has a program for or experience in co5 operating with secondary and postsecondary in6 stitutions in carrying out the organization’s

7 scholarship and academic support activities.

8 (4) HIGH POVERTY AREA.—The term ‘‘high

9 poverty area’’ means a community with a higher per10 centage of children from low-income families than

11 the national average of such percentage and a lower

12 percentage of children pursuing postsecondary edu13 cation than the national average of such percentage.

14 (5) STUDENTS FROM LOW-INCOME FAMILIES.—

15 The term ‘‘students from low-income families’’

16 means students determined, pursuant to part F of

17 title IV of the Higher Education Act of 1965 (20

18 U.S.C. 1087kk et seq.), to be eligible for a Federal

19 Pell Grant under subpart 1 of part A of title IV of

20 such Act (20 U.S.C. 1070a).

21 SEC. 744. PURPOSE, ENDOWMENT GRANT AUTHORITY.

22 (a) PURPOSE.—It is the purpose of this part to estab23 lish and support regional, State or community program

24 centers to enable such centers to foster the development

25 of local entities in high poverty areas that promote higher
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1 education goals for students from low-income families

2 by—

3 (1) providing academic support, including guid4 ance, counseling, mentoring, tutoring, and recogni5 tion; and

6 (2) providing scholarship assistance for the cost

7 of postsecondary education.

8 (b) ENDOWMENT GRANT AUTHORITY.—From the

9 funds appropriated pursuant to the authority of section

10 746, the Secretary shall award an endowment grant, on

11 a competitive basis, to a national organization to enable

12 such organization to support the establishment or ongoing

13 work of regional, State or community program centers

14 that foster the development of local entities in high pov15 erty areas to improve high school graduation rates and

16 postsecondary attendance through the provision of aca17 demic support services and scholarship assistance for the

18 cost of postsecondary education.

19 SEC. 745. GRANT AGREEMENT AND REQUIREMENTS.

20 (a) IN GENERAL.—The Secretary shall award one or

21 more endowment grants described in section 744(b) pur22 suant to an agreement between the Secretary and a na23 tional organization. Such agreement shall—

24 (1) require the national organization to estab25 lish an endowment fund in the amount of the grant,
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1 the corpus of which shall remain intact and the in2 terest income from which shall be used to support

3 the activities described in paragraphs (2) and (3);

4 (2) require the national organization to use 70

5 percent of the interest income from the endowment

6 fund in any fiscal year to support the establishment

7 or ongoing work of regional, State or community

8 program centers to enable such centers to work with

9 local communities to establish local entities in high

10 poverty areas and provide ongoing technical assist11 ance, training workshops, and other activities to help

12 ensure the ongoing success of the local entities;

13 (3) require the national organization to use 30

14 percent of the interest income from the endowment

15 fund in any fiscal year to provide scholarships for

16 postsecondary education to students from low-in17 come families, which scholarships shall be matched

18 on a dollar-for-dollar basis from funds raised by the

19 local entities;

20 (4) require that at least 50 percent of all the

21 interest income from the endowment be allocated to

22 establish new local entities or support regional, State

23 or community program centers in high poverty

24 areas;
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1 (5) require the national organization to submit,

2 for each fiscal year in which such organization uses

3 the interest from the endowment fund, a report to

4 the Secretary that contains—

5 (A) a description of the programs and ac6 tivities supported by the interest on the endow7 ment fund;

8 (B) the audited financial statement of the

9 national organization for the preceding fiscal

10 year;

11 (C) a plan for the programs and activities

12 to be supported by the interest on the endow13 ment fund as the Secretary may require; and

14 (D) an evaluation of the programs and ac15 tivities supported by the interest on the endow16 ment fund as the Secretary may require; and

17 (E) data indicating the number of students

18 from low-income families who receive scholar19 ships from local entities, and the amounts of

20 such scholarships;

21 (6) contain such assurances as the Secretary

22 may require with respect to the management and op23 eration of the endowment fund; and

24 (7) contain an assurance that if the Secretary

25 determines that such organization is not in substan-
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1 tial compliance with the provisions of this part, then

2 the national organization shall pay to the Secretary

3 an amount equal to the corpus of the endowment

4 fund plus any accrued interest on such fund that is

5 available to the national organization on the date of

6 such determination.

7 (b) RETURNED FUNDS.—All funds returned to the

8 Secretary pursuant to subsection (a)(7) shall be available

9 to the Secretary to carry out any scholarship or grant pro10 gram assisted under title IV of the Higher Education Act

11 of 1965 (20 U.S.C. 1070 et seq.).

12 SEC. 746. AUTHORIZATION OF APPROPRIATIONS.

13 There are authorized to be appropriated to carry out

14 this part $10,000,000 for fiscal year 2000.

15 PART E—GRANTS TO STATES FOR WORK16 PLACE AND COMMUNITY TRANSITION

17 TRAINING FOR INCARCERATED

18 YOUTH OFFENDERS

19 SEC. 751. GRANTS TO STATES FOR WORKPLACE AND COM20 MUNITY TRANSITION TRAINING FOR INCAR21 CERATED YOUTH OFFENDERS.

22 (a) FINDINGS.—Congress makes the following find23 ings:
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1 (1) Over 150,000 youth offenders age 21 and

2 younger are incarcerated in the Nation’s jails, juve3 nile facilities, and prisons.

4 (2) Most youth offenders who are incarcerated

5 have been sentenced as first-time adult felons.

6 (3) Approximately 75 percent of youth offend7 ers are high school dropouts who lack basic literacy

8 and life skills, have little or no job experience, and

9 lack marketable skills.

10 (4) The average incarcerated youth has at11 tended school only through grade 10.

12 (5) Most of these youths can be diverted from

13 a life of crime into productive citizenship with avail14 able educational, vocational, work skills, and related

15 service programs.

16 (6) If not involved with educational programs

17 while incarcerated, almost all of these youths will re18 turn to a life of crime upon release.

19 (7) The average length of sentence for a youth

20 offender is about 3 years. Time spent in prison pro21 vides a unique opportunity for education and train22 ing.

23 (8) Even with quality education and training

24 provided during incarceration, a period of intense

25 supervision, support, and counseling is needed upon
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1 release to ensure effective reintegration of youth of2 fenders into society.

3 (9) Research consistently shows that the vast

4 majority of incarcerated youths will not return to

5 the public schools to complete their education.

6 (10) There is a need for alternative educational

7 opportunities during incarceration and after release.

8 (b) DEFINITION.—For purposes of this part, the

9 term ‘‘youth offender’’ means a male or female offender

10 under the age of 25, who is incarcerated in a State prison,

11 including a prerelease facility.

12 (c) GRANT PROGRAM.—The Secretary of Education

13 (in this section referred to as the ‘‘Secretary’’) shall estab14 lish a program in accordance with this section to provide

15 grants to the State correctional education agencies in the

16 States, from allocations for the States under subsection

17 (i), to assist and encourage incarcerated youths to acquire

18 functional literacy, life, and job skills, through the pursuit

19 of a postsecondary education certificate, or an associate

20 of arts or bachelor’s degree while in prison, and employ21 ment counseling and other related services which start

22 during incarceration and continue through prerelease and

23 while on parole.

24 (d) APPLICATION.—To be eligible for a grant under

25 this section, a State correctional education agency shall
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•S 1882 IS

1 submit to the Secretary a proposal for a youth offender

2 program that—

3 (1) identifies the scope of the problem, includ4 ing the number of incarcerated youths in need of

5 postsecondary education and vocational training;

6 (2) lists the accredited public or private edu7 cational institution or institutions that will provide

8 postsecondary educational services;

9 (3) lists the cooperating agencies, public and

10 private, or businesses that will provide related serv11 ices, such as counseling in the areas of career devel12 opment, substance abuse, health, and parenting

13 skills;

14 (4) describes the evaluation methods and per15 formance measures that the State correctional edu16 cation agency will employ, which methods and meas17 ures—

18 (A) shall be appropriate to meet the goals

19 and objectives of the proposal; and

20 (B) shall include measures of—

21 (i) program completion;

22 (ii) student academic and vocational

23 skill attainment;

24 (iii) success in job placement and re25 tention; and
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1 (iv) recidivism;

2 (5) describes how the proposed programs are to

3 be integrated with existing State correctional edu4 cation programs (such as adult education, graduate

5 education degree programs, and vocational training)

6 and State industry programs;

7 (6) addresses the educational needs of youth of8 fenders who are in alternative programs (such as

9 boot camps); and

10 (7) describes how students will be selected so

11 that only youth offenders eligible under subsection

12 (f) will be enrolled in postsecondary programs.

13 (e) PROGRAM REQUIREMENTS.—Each State correc14 tional education agency receiving a grant under this sec15 tion shall—

16 (1) integrate activities carried out under the

17 grant with the objectives and activities of the school18 to-work programs of such State, including—

19 (A) work experience or apprenticeship pro20 grams;

21 (B) transitional worksite job training for

22 vocational education students that is related to

23 the occupational goals of such students and

24 closely linked to classroom and laboratory in25 struction;
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•S 1882 IS

1 (C) placement services in occupations that

2 the students are preparing to enter;

3 (D) employment-based learning programs;

4 and

5 (E) programs that address State and local

6 labor shortages;

7 (2) annually report to the Secretary and the At8 torney General on the results of the evaluations con9 ducted using the methods and performance measures

10 contained in the proposal; and

11 (3) provide to each State for each student eligi12 ble under subsection (f) not more than $1,500 annu13 ally for tuition, books, and essential materials, and

14 not more than $300 annually for related services

15 such as career development, substance abuse coun16 seling, parenting skills training, and health edu17 cation, for each eligible incarcerated youth.

18 (f) STUDENT ELIGIBILITY.—A youth offender shall

19 be eligible for participation in a program receiving a grant

20 under this section if the youth offender—

21 (1) is eligible to be released within 5 years (in22 cluding a youth offender who is eligible for parole

23 within such time); and

24 (2) is 25 years of age or younger.
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1 (g) LENGTH OF PARTICIPATION.—A State correc2 tional education agency receiving a grant under this sec3 tion shall provide educational and related services to each

4 participating youth offender for a period not to exceed 5

5 years, 1 year of which may be devoted to study in a grad6 uate education degree program or to remedial education

7 services for students who have obtained a secondary school

8 diploma. Educational and related services shall start dur9 ing the period of incarceration in prison or prerelease and

10 may continue during the period of parole.

11 (h) EDUCATION DELIVERY SYSTEMS.—State correc12 tional education agencies and cooperating institutions

13 shall, to the extent practicable, use high-tech applications

14 in developing programs to meet the requirements and

15 goals of this section.

16 (i) ALLOCATION OF FUNDS.—From the amounts ap17 propriated pursuant to subsection (j), the Secretary shall

18 allot to each State an amount that bears the same rela19 tionship to such funds as the total number of students

20 eligible under subsection (f) in such State bears to the

21 total number of such students in all States.

22 (j) AUTHORIZATION OF APPROPRIATIONS.—There

23 are authorized to be appropriated to carry out this section

24 $14,000,000 for fiscal year 1999 and such sums as may

25 be necessary for each of the 4 succeeding fiscal years.
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1 PART F—EDUCATION OF THE DEAF

2 SEC. 761. SHORT TITLE.

3 This part may be cited as the ‘‘Education of the Deaf

4 Amendments of 1998’’.

5 SEC. 762. ELEMENTARY AND SECONDARY EDUCATION PRO6 GRAMS.

7 Section 104(b) of the Education of the Deaf Act of

8 1986 (20 U.S.C. 4034(b)) is amended—

9 (1) in paragraph (1)—

10 (A) in subparagraph (A), by inserting

11 ‘‘and’’ after the semicolon;

12 (B) in subparagraph (B), by striking ‘‘;

13 and’’ and inserting a period; and

14 (C) by striking subparagraph (C);

15 (2) in the matter preceding subparagraph (A)

16 of paragraph (2)—

17 (A) by striking ‘‘paragraph (1)’’ and in18 serting ‘‘paragraph (1)(B)’’; and

19 (B) by striking ‘‘section 618(b)’’ and in20 serting ‘‘section 618(a)(1)(A)’’;

21 (3) in paragraph (3), by striking ‘‘intermediate

22 educational unit’’ and inserting ‘‘educational service

23 agency’’;

24 (4) in paragraph (4)—
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1 (A) in subparagraph (A), by striking ‘‘in2 termediate educational unit’’ and inserting

3 ‘‘educational service agency’’; and

4 (B) in subparagraph (B), by striking ‘‘in5 termediate educational units’’ and inserting

6 ‘‘educational service agencies’’; and

7 (5) by amending subparagraph (C) to read as

8 follows:

9 ‘‘(C) provide the child a free appropriate

10 public education in accordance with part B of

11 the Individuals with Disabilities Education Act

12 and procedural safeguards in accordance with

13 the following provisions of section 615 of such

14 Act:

15 ‘‘(i) paragraphs (1), and (3) through

16 (6), of subsection (b).

17 ‘‘(ii) Subsections (c) through (g).

18 ‘‘(iii) Subsection (h), except for the

19 matter in paragraph (4) pertaining to

20 transmission of findings and decisions to a

21 State advisory panel.

22 ‘‘(iv) Paragraphs (1) and (2) of sub23 section (i).

24 ‘‘(v) Subsection (j)—
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1 ‘‘(I) except that such subsection

2 shall not be applicable to a decision by

3 the University to refuse to admit a

4 child; or

5 ‘‘(II) to dismiss a child, except

6 that, before dismissing any child, the

7 University shall give at least 60 days

8 written notice to the child’s parents

9 and to the local educational agency in

10 which the child resides, unless the dis11 missal involves a suspension, expul12 sion, or other change in placement

13 covered under section 615(k).

14 ‘‘(vi) Subsections (k) through (m).’’.

15 SEC. 763. AGREEMENT WITH GALLAUDET UNIVERSITY.

16 Section 105(a) of the Education of the Deaf Act of

17 1986 (20 U.S.C. 4305(a)) is amended—

18 (1) by striking ‘‘within 1 year after enactment

19 of the Education of the Deaf Act Amendments of

20 1992, a new’’ and inserting ‘‘and periodically up21 date, an’’; and

22 (2) by amending the second sentence to read as

23 follows: ‘‘The Secretary or the University shall de24 termine the necessity for the periodic update de25 scribed in the preceding sentence.’’.
319

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1 SEC. 764. AGREEMENT FOR THE NATIONAL TECHNICAL IN2 STITUTE FOR THE DEAF.

3 Paragraph (2) of section 112(a) of the Education of

4 the Deaf Act of 1986 (20 U.S.C. 4332(a)) is amended

5 to read as follows:

6 ‘‘(2) The Secretary and the institution of higher edu7 cation with which the Secretary has an agreement under

8 this section—

9 ‘‘(A) shall periodically assess the need for modi10 fication of the agreement; and

11 ‘‘(B) shall periodically update the agreement as

12 determined necessary by the Secretary or the insti13 tution.’’.

14 SEC. 765. DEFINITIONS.

15 Section 201 of the Education of the Deaf Act of 1986

16 (20 U.S.C. 4351) is amended—

17 (1) in paragraph (1)(C), by striking ‘‘Palau

18 (but only until the Compact of Free Association with

19 Palau takes effect),’’; and

20 (2) in paragraph (5)—

21 (A) by inserting ‘‘and’’ after ‘‘Virgin Is22 lands,’’; and

23 (B) by striking ‘‘, and Palau (but only

24 until the Compact of Free Association with

25 Palau takes effect)’’.
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1 SEC. 766. GIFTS.

2 Subsection (b) of section 203 of the Education of the

3 Deaf Act of 1986 (20 U.S.C. 4353) is amended to read

4 as follows:

5 ‘‘(b) INDEPENDENT FINANCIAL AND COMPLIANCE

6 AUDIT.—

7 ‘‘(1) IN GENERAL.—Gallaudet University shall

8 have an annual independent financial and compli9 ance audit made of the programs and activities of

10 the University, including the national mission and

11 school operations of the elementary and secondary

12 education programs at Gallaudet. The institution of

13 higher education with which the Secretary has an

14 agreement under section 112 shall have an annual

15 independent financial and compliance audit made of

16 the programs and activities of such institution of

17 higher education, including NTID, and containing

18 specific schedules and analyses for all NTID funds,

19 as determined by the Secretary.

20 ‘‘(2) COMPLIANCE.—As used in paragraph (1),

21 compliance means compliance with sections 102(b),

22 105(b)(4), 112(b)(5), and 203(c), paragraphs (2)

23 and (3) of section 207(b), subsections (b)(2), (b)(3),

24 and (c) through (f), of section 207, and subsections

25 (b) and (c) of section 210.
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1 ‘‘(3) SUBMISSION OF AUDITS.—A copy of each

2 audit described in paragraph (1) shall be provided to

3 the Secretary within 15 days of acceptance of the

4 audit by the University or the institution authorized

5 to establish and operate the NTID under section

6 112(a), as the case may be, but not later than Janu7 ary 10 of each year.’’.

8 SEC. 767. REPORTS.

9 Section 204(3) of the Education of the Deaf Act of

10 1986 (20 U.S.C. 4354(3)) is amended—

11 (1) in subparagraph (A), by striking ‘‘The an12 nual’’ and inserting ‘‘A summary of the annual’’;

13 and

14 (2) in subparagraph (B), by striking ‘‘the an15 nual’’ and inserting ‘‘a summary of the annual’’.

16 SEC. 768. MONITORING, EVALUATION, AND REPORTING.

17 Section 205(c) of the Education of the Deaf Act of

18 1986 (20 U.S.C. 4355(c)) is amended by striking ‘‘1993,

19 1994, 1995, 1996, and 1997’’ and inserting ‘‘1998

20 through 2003’’.

21 SEC. 769. INVESTMENTS.

22 Section 207 of the Education of the Deaf Act of 1986

23 (20 U.S.C. 4357) is amended—

24 (1) in subsection (c)(1), by inserting ‘‘the Fed25 eral contribution of’’ after ‘‘shall invest’’;
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•S 1882 IS

1 (2) in subsection (d)(3)(A), by striking ‘‘prior’’

2 and inserting ‘‘current’’; and

3 (3) in subsection (h)—

4 (A) in paragraph (1), by striking ‘‘1993

5 through 1997’’ and inserting ‘‘1998 through

6 2003’’; and

7 (B) in paragraph (2), by striking ‘‘1993

8 through 1997’’ and inserting ‘‘1998 through

9 2003’’.

10 SEC. 770. INTERNATIONAL STUDENTS.

11 Section 210(a) of the Education of the Deaf Act of

12 1986 (20 U.S.C. 4359a(a)) is amended by inserting before

13 the period ‘‘, except that in any school year no United

14 States citizen who is qualified to be admitted to the Uni15 versity or NTID and applies for admission to the Univer16 sity or NTID shall be denied admission because of the

17 admission of an international student’’.

18 SEC. 771. RESEARCH PRIORITIES.

19 Section 211 of the Education of the Deaf Act of 1986

20 (20 U.S.C. 4360) is amended to read as follows:

21 ‘‘SEC. 211. RESEARCH PRIORITIES.

22 ‘‘(a) RESEARCH PRIORITIES.—Gallaudet University

23 and the National Technical Institute for the Deaf shall

24 each establish and disseminate priorities, that reflect pub25 lic input, through a process that includes consumers, con-
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1 stituent groups, and the heads of other federally funded

2 programs. The priorities for the University shall include

3 activities conducted as part of the University’s elementary

4 and secondary education programs under section 104.

5 ‘‘(b) RESEARCH REPORTS.—The University and

6 NTID shall each prepare and submit an annual research

7 report, to the Secretary, the Committee on Education and

8 the Workforce of the House of Representatives, and the

9 Committee on Labor and Human Resources of the Senate,

10 not later than January 10 of each year, that shall in11 clude—

12 ‘‘(1) a summary of the public input received as

13 part of the establishment and dissemination of prior14 ities required by subsection (a), and the University’s

15 and NTID’s response to the input; and

16 ‘‘(2) a summary description of the research un17 dertaken by the University and NTID, the start and

18 projected end dates for each research project, the

19 projected cost and source or sources of funding for

20 each project, and any products resulting from re21 search completed in the prior fiscal year.’’.

22 SEC. 772. AUTHORIZATION OF APPROPRIATIONS.

23 Title II of the Education of the Deaf Act of 1986

24 (20 U.S.C. 4351 et seq.) is amended by adding at the end

25 the following:
324

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1 ‘‘SEC. 212. AUTHORIZATION OF APPROPRIATIONS.

2 ‘‘(a) GALLAUDET UNIVERSITY.—There are author3 ized to be appropriated such sums as may be necessary

4 for each of the fiscal years 1998 through 2003 to carry

5 out the provisions of titles I and II, relating to—

6 ‘‘(1) Gallaudet University;

7 ‘‘(2) Kendall Demonstration Elementary

8 School; and

9 ‘‘(3) the Model Secondary School for the Deaf.

10 ‘‘(b) NATIONAL TECHNICAL INSTITUTE FOR THE

11 DEAF.—There are authorized to be appropriated such

12 sums as may be necessary for each of the fiscal years 1998

13 through 2003 to carry out the provisions of titles I and

14 II relating to the National Technical Institute for the

15 Deaf.’’.

16 SEC. 773. COMMISSION ON EDUCATION OF THE DEAF.

17 The Education of the Deaf Act of 1986 (20 U.S.C.

18 4301 et seq.) is amended by adding at the end the follow19 ing:

20 ‘‘TITLE III—COMMISSION ON

21 EDUCATION OF THE DEAF

22 ‘‘SEC. 301. COMMISSION ESTABLISHED.

23 ‘‘(a) ESTABLISHMENT.—

24 ‘‘(1) IN GENERAL.—The Secretary shall estab25 lish a Commission on the Education of the Deaf to

26 identify those education-related factors in the lives
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1 of individuals who are deaf that result in barriers to

2 successful postsecondary education experiences and

3 employment, and those education-related factors in

4 the lives of individuals who are deaf that contribute

5 to successful postsecondary education experiences

6 and employment.

7 ‘‘(2) DEFINITION OF INDIVIDUALS WHO ARE

8 DEAF.—In this title, the term ‘individuals who are

9 deaf’ means all persons with hearing impairments,

10 including those who are hard-of-hearing, those deaf11 ened later in life, and those who are profoundly deaf.

12 ‘‘(b) COMPOSITION.—

13 ‘‘(1) IN GENERAL.—The Commission shall be

14 composed of 13 members appointed by the Secretary

15 from recommendations made by the National Asso16 ciation of the Deaf, the American Society for Deaf

17 Children, the Alexander Graham Bell Association,

18 the President of Gallaudet, the Vice President of the

19 National Technical Institute for the Deaf, State

20 Schools for the Deaf, projects to train teachers of

21 the deaf funded under section 673(b) of the Individ22 uals with Disabilities Education Act, parent training

23 and information centers funded under section 682 of

24 such Act, the Regional Centers on Postsecondary

25 Education for Individuals who are Deaf funded
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1 under section 672 of such Act, Self-Help for Hard

2 of Hearing People, and the Cothe Council on Edu3 cation of the Deaf.

4 ‘‘(2) QUALIFICATIONS.—

5 ‘‘(A) IN GENERAL.—Members of the Com6 mission shall be appointed from among individ7 uals who have broad experience and expertise in

8 deafness, program evaluation, education, reha9 bilitation, and job training generally, which ex10 pertise and experience shall be directly relevant

11 to the issues to be addressed by the Commis12 sion.

‘‘(B) DEAF INDIVIDUALS.—At least 1 13 ⁄3 of

14 members of the Commission shall be individuals

15 who are deaf.

16 ‘‘(C) CHAIRPERSON.—The chairperson of

17 the Commission shall be elected by a simple

18 majority of the Commission.

19 ‘‘(D) ASSISTANT SECRETARY.—One mem20 ber of the Commission shall be the Assistant

21 Secretary for Special Education and Rehabilita22 tive Services.

23 ‘‘(3) DATE.—Members of the Commission shall

24 be appointed not later than 90 days after the date
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1 of enactment of the Education of the Deaf Amend2 ments of 1998.

3 ‘‘SEC. 302. DUTIES, REPORT, AND DURATION OF THE COM4 MISSION.

5 ‘‘(a) IDENTIFICATION OF FACTORS.—The Commis6 sion shall identify, with respect to individuals who are

7 deaf, factors that pose barriers to or factors that facili8 tate—

9 ‘‘(1) educational performance and progress of

10 students who are deaf in high school;

11 ‘‘(2) educational performance and progress of

12 students who are deaf in postsecondary education;

13 ‘‘(3) career exploration and selection;

14 ‘‘(4) job performance and satisfaction in initial

15 postsecondary employment; and

16 ‘‘(5) career advancement and satisfaction.

17 ‘‘(b) REPORT.—The Commission shall report to the

18 President and Congress such interim reports that the

19 Commission deems appropriate, and not later than 18

20 months after the date of enactment of the Education of

21 the Deaf Amendments of 1998, a final report containing

22 the findings of the Commission with respect to the factors

23 identified under subsection (a). The final report shall in24 clude recommendations, including legislative proposals,

25 that the Commission deems advisable.
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1 ‘‘(c) TERMINATION.—The Commission shall termi2 nate 90 days after the date on which the Commission sub3 mits the Commission’s final report described in subsection

4 (b).

5 ‘‘SEC. 303. ADMINISTRATIVE PROVISIONS.

6 ‘‘(a) PERSONNEL.—

7 ‘‘(1) IN GENERAL.—The Commission may ap8 point such personnel, including a staff director, as

9 the Commission deems necessary without regard to

10 the provisions of title 5, United States Code, except

11 that the rate pay for any employee of the Commis12 sion may not exceed the rate payable for level V of

13 the Executive Schedule under section 5316 of title

14 5, United States Code.

15 ‘‘(2) PROCUREMENT OF TEMPORARY AND

16 INTERMITTENT SERVICES.—The Chairperson of the

17 Commission may procure temporary and intermit18 tent services under section 3109(b) of title 5, United

19 States Code, at rates for individuals which do not

20 exceed the daily equivalent of the annual rate of

21 basic pay prescribed for level V of the Executive

22 Schedule under section 5316 of such title.

23 ‘‘(b) HEARINGS; QUORUM.—

24 ‘‘(1) HEARINGS.—The Commission or, with the

25 authorization of the Commission, any committee of
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1 the Commission, may, for the purpose of carrying

2 out the provisions of this title, hold such hearings,

3 sit, and act at such times and such places in the

4 United States as the Commission or such committee

5 may deem advisable.

6 ‘‘(2) QUORUM.—Seven members of the Com7 mission shall constitute a quorum, but 2 or more

8 members may conduct hearings.

9 ‘‘(3) HEARINGS AND PUBLIC INPUT.—In con10 ducting hearings and acquiring public input under

11 this title, the Commission may use various tele12 communications media, including teleconferencing,

13 video-conferencing, the Internet, and other media.

14 ‘‘(c) CONSULTATION; INFORMATION AND STATISTICS;

15 AGENCY COOPERATION.—

16 ‘‘(1) IN GENERAL.—In carrying out the Com17 mission’s duties under this title and to the extent

18 not prohibited by Federal law, the Commission is

19 authorized to secure consultation, information, sta20 tistics, and cooperation from Federal agencies, enti21 ties funded by the Federal Government, and other

22 entities the Commission deems advisable.

23 ‘‘(2) SPECIAL RULE.—The Commission is au24 thorized to use, with their consent, the services, per25 sonnel, information, and facilities of other Federal,
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1 State, local, and private agencies with or without re2 imbursement.

3 ‘‘SEC. 304. COMPENSATION OF MEMBERS.

4 ‘‘(a) UNITED STATES OFFICER AND EMPLOYEE

5 MEMBERS.—Members of the Commission who are officers

6 or full-time employees of the United States shall serve

7 without compensation in addition to that received for their

8 services as officers or employees of the United States; but

9 may be allowed travel expenses, including per diem in lieu

10 of subsistence, at rates authorized for employees of agen11 cies under subchapter I of chapter 57 of title 5, United

12 States Code, while away from their homes or regular

13 places of business in the performance of services for the

14 Commission.

15 ‘‘(b) PUBLIC MEMBERS.—Members of the Commis16 sion who are not officers or full-time employees of the

17 United States shall receive compensation at a rate that

18 does not exceed the daily rate payable for level V of the

19 Executive Schedule under section 5316 of title 5, United

20 States Code, for each day (including travel time) during

21 which such members are engaged in the actual perform22 ance of the duties of the Commission. In addition, such

23 members may be allowed travel expenses, including per

24 diem in lieu of subsistence, at rates authorized for employ25 ees of agencies under subchapter I of chapter 57 of title
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1 5, United States Code, while away from their homes or

2 regular places of business in the performance of services

3 for the Commission.

4 ‘‘SEC. 305. AUTHORIZATIONS OF APPROPRIATIONS.

5 ‘‘There is authorized to be appropriated to carry out

6 this title such sums as may be necessary for each of the

7 fiscal years 1999 and 2000.’’.

8 PART G—REPEALS

9 SEC. 781. REPEALS.

10 (a) HIGHER EDUCATION ACT OF 1965.—The follow11 ing provisions of the Act (20 U.S.C. 1001 et seq.) are re12 pealed:

13 (1) The heading for, sections 701 and 702 of,

14 and parts A, C, D, and E of, title VII (20 U.S.C.

15 1132a, 1132a–1, 1132b et seq., 1132d et seq.,

16 1132f et seq., and 1132i et seq.).

17 (2) Title VIII (20 U.S.C. 1133 et seq.).

18 (3) The heading for, section 901 of, and parts

19 A, B, E, F, and G of, title IX (20 U.S.C. 1134,

20 1134a et seq., 1134d et seq., 1134r et seq., 20

21 U.S.C. 1134s et seq., and 1134u et seq.).

22 (4) The heading for, subpart 2 of part B of,

23 and parts C, D and E of, title X (20 U.S.C. 1135c

24 et seq., 1135e et seq., 1135f, and 1135g et seq.).
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1 (5) The heading for, and part B of, title XI (20

2 U.S.C. 1137 et seq.).

3 (b) HIGHER EDUCATION AMENDMENTS OF 1992.—

4 The following provisions of the Higher Education Amend5 ments of 1992 (Public Law 102–325; 106 Stat 448) are

6 repealed:

7 (1) Parts E, F, and G of title XIII of the High8 er Education Amendments of 1992 (25 U.S.C. 3332

9 et seq., 3351 et seq., 3371) are repealed.

10 (2) Title XIV.

11 (3) Title XV.

12 PART H—MISCELLANEOUS

13 SEC. 791. YEAR 2000 COMPUTER PROBLEM.

14 (a) SENSE OF CONGRESS.—With the year 2000 fast

15 approaching, it is the sense of Congress that the Depart16 ment of Education should—

17 (1) assess immediately the extent of the risk to

18 the operations of the student financial aid system

19 posed by the year 2000 computer problem;

20 (2) give the highest priority to correcting all 2-

21 digit date-related problems in the Department’s

22 computer systems to ensure that those systems con23 tinue to operate effectively in the year 2000 and be24 yond; and
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1 (3) develop contingency plans, with respect to

2 the year 2000 computer problem, for those computer

3 systems that the Department is unable to correct in

4 time.

5 (b) REPORT REQUIRED.—Not later than March 1,

6 1999, the Secretary of Education shall provide a report

7 to the Committee on Labor and Human Resources of the

8 Senate and the Committee on Education and the Work9 force of the House of Representatives describing the com10 pliance status of all mission critical systems at the Depart11 ment, and contingency plans for those computer systems

12 in the Department that the Department will be unable to

13 correct in time, with respect to the year 2000 computer

14 problem.

Æ