In the Senate of the United States,

July 9, 1998.

Resolved, That the bill from the House of Representatives (H.R. 6) entitled ‘‘An Act to extend the authorization

of programs under the Higher Education Act of 1965, and

for other purposes.’’, do pass with the following

AMENDMENT:

Strike out all after the enacting clause and insert:

1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

2 (a) SHORT TITLE.—This Act may be cited as the

3 ‘‘Higher Education Amendments of 1998’’.

4 (b) TABLE OF CONTENTS.—The table of contents is as

5 follows:

Sec. 1. Short title; table of contents.

Sec. 2. References.

TITLE I—GENERAL PROVISIONS

Sec. 101. General provisions.

Sec. 102. Federal control of education prohibited.

Sec. 103. National Advisory Committee on Institutional Quality and Integrity.

Sec. 104. Grants and recognition awards.

Sec. 105. Prior rights and obligations; recovery of payments.

Sec. 106. Technical and conforming amendments.
2

HR 6 EAS

TITLE II—IMPROVING TEACHER QUALITY

Sec. 201. Improving teacher quality.

TITLE III—INSTITUTIONAL AID

Sec. 301. Transfers and redesignations.

Sec. 302. Findings.

Sec. 303. Strengthening institutions.

Sec. 304. Strengthening HBCU’s.

Sec. 305. Endowment challenge grants.

Sec. 306. HBCU capital financing.

Sec. 307. Minority science and engineering improvement program.

Sec. 308. General provisions.

TITLE IV—STUDENT ASSISTANCE

PART A—GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OF HIGHER

EDUCATION

Sec. 411. Repeals and redesignations.

Sec. 412. Federal Pell grants.

Sec. 413. TRIO programs.

Sec. 414. Connections program.

Sec. 415. Federal supplemental educational opportunity grants.

Sec. 416. Leveraging educational assistance partnership program.

Sec. 417. HEP and CAMP.

Sec. 418. Robert C. Byrd honors scholarship program.

Sec. 419. Child care access means parents in school.

Sec. 420. Learning anytime anywhere partnerships.

PART B—FEDERAL FAMILY EDUCATION LOAN PROGRAM

Sec. 421. Advances for reserve funds.

Sec. 422. Federal Student Loan Reserve Fund.

Sec. 423. Agency Operating Fund.

Sec. 424. Scope and duration of Federal loan insurance program.

Sec. 425. Applicable interest rates.

Sec. 426. Federal payments to reduce student interest costs.

Sec. 427. Voluntary flexible agreements with guaranty agencies.

Sec. 428. Federal PLUS loans.

Sec. 429. Federal consolidation loans.

Sec. 430. Requirements for disbursements of student loans.

Sec. 431. Default reduction program.

Sec. 432. Unsubsidized loans.

Sec. 433. Loan forgiveness for teachers.

Sec. 434. Loan forgiveness for child care providers.

Sec. 435. Notice to Secretary and payment of loss.

Sec. 436. Common forms and formats.

Sec. 437. Student loan information by eligible lenders.

Sec. 438. Definitions.

Sec. 439. Study of the effectiveness of cohort default rates for institutions with few

student loan borrowers.

Sec. 440. Delegation of functions.

Sec. 440A. Special allowances.

Sec. 440B. Study of market-based mechanisms for determining student loan interest rates.
3

HR 6 EAS

PART C—FEDERAL WORK-STUDY PROGRAMS

Sec. 441. Authorization of appropriations; community services.

Sec. 442. Grants for Federal work-study programs.

Sec. 443. Work colleges.

PART D—WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM

Sec. 451. Selection of institutions.

Sec. 452. Terms and conditions.

Sec. 453. Contracts.

Sec. 454. Funds for administrative expenses.

Sec. 455. Loan cancellation for teachers.

PART E—FEDERAL PERKINS LOANS

Sec. 461. Authorization of appropriations.

Sec. 462. Allocation of funds.

Sec. 463. Agreements with institutions of higher education.

Sec. 464. Terms of loans.

Sec. 465. Distribution of assets from student loan funds.

Sec. 466. Perkins Loan Revolving Fund.

PART F—NEED ANALYSIS

Sec. 471. Cost of attendance.

Sec. 472. Family contribution for dependent students.

Sec. 473. Family contribution for independent students without dependents other

than a spouse.

Sec. 474. Regulations; updated tables and amounts.

Sec. 475. Simplified needs test; zero expected family contribution.

Sec. 476. Refusal or adjustment of loan certifications.

Sec. 477. Treatment of other financial assistance.

PART G—GENERAL PROVISIONS

Sec. 481. Definition of institution of higher education.

Sec. 482. Master calendar.

Sec. 483. Forms and regulations.

Sec. 484. Student eligibility.

Sec. 485. Institutional refunds.

Sec. 486. Institutional and financial assistance information for students.

Sec. 487. National student loan data bank system.

Sec. 488. Training in financial aid services.

Sec. 489. Program participation agreements.

Sec. 490. Regulatory relief and improvement.

Sec. 490A. Distance education demonstration programs.

Sec. 490B. Advisory Committee on Student Financial Assistance.

Sec. 490C. Regional meetings and negotiated rulemaking.

Sec. 490D. Procedures for cancellations and deferments for eligible disabled veterans.

PART H—PROGRAM INTEGRITY TRIAD

Sec. 491. State role and responsibilities.

Sec. 492. Accrediting agency recognition.

Sec. 493. Eligibility and certification procedures.

Sec. 494. Program review and data.
4

HR 6 EAS

PART I—ADMINISTRATIVE PROVISIONS FOR DELIVERY OF STUDENT FINANCIAL

ASSISTANCE

Sec. 495. Performance-based organization for the delivery of Federal student financial assistance.

Sec. 496. Student Loan Ombudsman Office.

TITLE V—GRADUATE AND POSTSECONDARY IMPROVEMENT

PROGRAMS

Sec. 501. Repeals, transfers, and redesignations.

Sec. 502. Purpose.

PART A—JACOB K. JAVITS FELLOWSHIP PROGRAM

Sec. 511. Award of fellowships.

PART B—GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED

Sec. 521. Graduate assistance in areas of national need.

PART C—FACULTY DEVLOPMENT PROGRAM

Sec. 531. Faculty development program reauthorized.

PART D—URBAN COMMUNITY SERVICE

Sec. 541. Urban community service.

PART E—FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION

Sec. 551. Fund for the improvement of postsecondary education.

PART F—HIGHER EDUCATION ACCESS FOR STUDENTS WITH DISABILITIES;

HISPANIC-SERVING INSTITUTIONS; GENERAL PROVISIONS

Sec. 561. Higher education access for students with disabilities; Hispanic-serving

institutions; general provisions.

TITLE VI—INTERNATIONAL EDUCATION PROGRAMS

Sec. 601. International and foreign language studies.

Sec. 602. Business and international education programs.

Sec. 603. Institute for International Public Policy.

Sec. 604. General provisions.

TITLE VII—RELATED PROGRAMS AND AMENDMENTS TO OTHER

ACTS

PART A—INDIAN EDUCATION PROGRAMS

Sec. 711. Tribally Controlled Community College Assistance Act of 1978.

Sec. 712. American Indian, Alaska Native, and Native Hawaiian culture and art

development.

Sec. 713. Navajo Community College Act.

PART B—ADVANCED PLACEMENT INCENTIVE PROGRAM

Sec. 721. Advanced placement incentive program.
5

HR 6 EAS

PART C—UNITED STATES INSTITUTE OF PEACE

Sec. 731. Authorities of the United States Institute of Peace.

PART D—COMMUNITY SCHOLARSHIP MOBILIZATION

Sec. 741. Short title.

Sec. 742. Findings.

Sec. 743. Definitions.

Sec. 744. Purpose, endowment grant authority.

Sec. 745. Grant agreement and requirements.

Sec. 746. Authorization of appropriations.

PART E—GRANTS TO STATES FOR WORKPLACE AND COMMUNITY TRANSITION

TRAINING FOR INCARCERATED YOUTH OFFENDERS

Sec. 751. Grants to States for workplace and community transition training for

incarcerated youth offenders.

PART F—WEB-BASED EDUCATION COMMISSION

Sec. 753. Short title; definitions.

Sec. 754. Establishment of Web-Based Education Commission.

Sec. 755. Duties of the Commission.

Sec. 756. Powers of the Commission.

Sec. 757. Commission personnel matters.

Sec. 758. Termination of the Commission.

Sec. 759. Authorization of appropriations.

PART G—EDUCATION OF THE DEAF

Sec. 761. Short title.

Sec. 762. Elementary and secondary education programs.

Sec. 763. Agreement with Gallaudet University.

Sec. 764. Agreement for the National Technical Institute for the Deaf.

Sec. 765. Definitions.

Sec. 766. Gifts.

Sec. 767. Reports.

Sec. 768. Monitoring, evaluation, and reporting.

Sec. 769. Investments.

Sec. 770. International students.

Sec. 771. Research priorities.

Sec. 772. Authorization of appropriations.

Sec. 773. Commission on Education of the Deaf.

PART H—REPEALS

Sec. 781. Repeals.

PART I—MISCELLANEOUS

Sec. 791. Year 2000 requirements at the Department of Education.

Sec. 792. Grants to combat violent crimes against women on campuses.

Sec. 793. Authority to administer summer travel and work programs.

Sec. 794. Improving United States understanding of science, engineering, and

technology in East Asia.

Sec. 795. Underground Railroad educational and cultural program

Sec. 796. GNMA guarantee fee.
6

HR 6 EAS

Sec. 797. Protection of student speech and association rights.

Sec. 798. Binge drinking on college campuses.

Sec. 799. Sense of the Senate regarding higher education.

Sec. 799A. Sense of Congress regarding teacher education.

Sec. 799B. Liaison for proprietary institutions of higher education.

Sec. 799C. Expansion of educational opportunities for welfare recipients.

Sec. 799D. Alcohol or drug possession disclosure.

Sec. 799E. Release of conditions, covenants, and reversionary interests, Guam

Community College conveyance, Barrigada, Guam.

Sec. 799F. Sense of Congress regarding good character.

1 SEC. 2. REFERENCES.

2 Except as otherwise expressly provided, whenever in

3 this Act an amendment or repeal is expressed in terms of

4 an amendment to, or repeal of, a section or other provision,

5 the reference shall be considered to be made to a section or

6 other provision of the Higher Education Act of 1965 (20

7 U.S.C. 1001 et seq.).

8 TITLE I—GENERAL PROVISIONS

9 SEC. 101. GENERAL PROVISIONS.

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

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

12 (1) by repealing title I (20 U.S.C. 1001 et seq.);

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

14 1212 (20 U.S.C. 1143, 1145a, 1145e, and 1145f);

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

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

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

18 et seq.) the following:
7

HR 6 EAS

1 ‘‘TITLE I—GENERAL

2 PROVISIONS’’;

3 (5) by transferring sections 1201, 1202, 1204 (as

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

5 by Public Law 96–374), 1205, 1207, 1208, 1209,

6 1210, and 1213 (20 U.S.C. 1141, 1142, 1144, 1144a,

7 1145, 1145b, 1145c, 1145d, 1145d–1, and 1145g) to

8 follow the heading for title I (as inserted by para9 graph (4)); and

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

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

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

13 1209, 1210, and 1213 as sections 101, 102, 103, 104,

14 105, 106, 107, 108, 109, and 110, respectively.

15 SEC. 102. FEDERAL CONTROL OF EDUCATION PROHIBITED.

16 Section 103 (as redesignated by section 101(a)(6)) (20

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

18 SEC. 103. NATIONAL ADVISORY COMMITTEE ON INSTITU19 TIONAL QUALITY AND INTEGRITY.

20 Section 105 (as redesignated by section 101(a)(6)) (20

21 U.S.C. 1145) is amended—

22 (1) by striking the last sentence of subsection (a);

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

24 as subsections (d) through (g), respectively;
8

HR 6 EAS

1 (3) by inserting after subsection (b) the follow2 ing:

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

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

5 list containing the name of each member of the Com6 mittee and the date of the expiration of the term of

7 office of the member; and

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

9 position or expiring term of office on the Commit10 tee.’’;

11 (4) in subsection (d) (as redesignated by para12 graph (2))—

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

14 (B) by redesignating paragraphs (7) and

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

16 (5) in subsection (g) (as redesignated by para17 graph (2)), by striking ‘‘1998’’ and inserting ‘‘2004’’.

18 SEC. 104. GRANTS AND RECOGNITION AWARDS.

19 Section 110 (as redesignated by section 101(a)(6)) (20

20 U.S.C. 1145g) is amended by adding at the end the follow21 ing:

22 ‘‘(e) ALCOHOL AND DRUG ABUSE PREVENTION

23 GRANTS.—

24 ‘‘(1) PROGRAM AUTHORITY.—The Secretary may

25 make grants to institutions of higher education or
9

HR 6 EAS

1 consortia of such institutions, and enter into con2 tracts with such institutions, consortia, and other or3 ganizations, to develop, implement, operate, improve,

4 and disseminate programs of prevention, and edu5 cation (including treatment-referral) to reduce and

6 eliminate the illegal use of drugs and alcohol and the

7 violence associated with such use. Such grants or con8 tracts may also be used for the support of a higher

9 education center for alcohol and drug abuse preven10 tion that will provide training, technical assistance,

11 evaluation, dissemination, and associated services and

12 assistance to the higher education community as de13 termined by the Secretary and institutions of higher

14 education.

15 ‘‘(2) AWARDS.—Grants and contracts shall be

16 awarded under paragraph (1) on a competitive basis.

17 ‘‘(3) APPLICATIONS.—An institution of higher

18 education, a consortium of such institutions, or an19 other organization that desires to receive a grant or

20 contract under paragraph (1) shall submit an appli21 cation to the Secretary at such time, in such manner,

22 and containing or accompanied by such information

23 as the Secretary may reasonably require by regula24 tion.

25 ‘‘(4) ADDITIONAL REQUIREMENTS.—
10

HR 6 EAS

1 ‘‘(A) PARTICIPATION.—In awarding grants

2 under this subsection the Secretary shall make

3 every effort to ensure—

4 ‘‘(i) the equitable participation of pri5 vate and public institutions of higher edu6 cation (including community and junior

7 colleges); and

8 ‘‘(ii) the equitable geographic partici9 pation of such institutions.

10 ‘‘(B) CONSIDERATION.—In awarding grants

11 and contracts under this subsection the Secretary

12 shall give appropriate consideration to institu13 tions of higher education with limited enroll14 ment.

15 ‘‘(5) AUTHORIZATION OF APPROPRIATIONS.—

16 There are authorized to be appropriated to carry out

17 this subsection $5,000,000 for fiscal year 1999 and

18 such sums as may be necessary for each of the 4 suc19 ceeding fiscal years.

20 ‘‘(f) NATIONAL RECOGNITION AWARDS.—

21 ‘‘(1) PURPOSE.—It is the purpose of this sub22 section to provide models of innovative and effective

23 alcohol prevention programs in higher education and

24 to focus national attention on exemplary alcohol pre25 vention efforts.
11

HR 6 EAS

1 ‘‘(2) AWARDS.—

2 ‘‘(A) IN GENERAL.—The Secretary shall

3 make 10 National Recognition Awards, on an

4 annual basis, to institutions of higher education

5 that—

6 ‘‘(i) have developed and implemented

7 innovative and effective alcohol prevention

8 programs; and

9 ‘‘(ii) demonstrate in the application

10 submitted under paragraph (3) that the in11 stitution has undertaken efforts designed to

12 change the culture of college drinking con13 sistent with the objectives described in para14 graph (4)(B).

15 ‘‘(B) CEREMONY.—The awards shall be

16 made at a ceremony in Washington, D.C.

17 ‘‘(C) DOCUMENT.—The Secretary shall pub18 lish a document describing the alcohol prevention

19 programs of institutions of higher education that

20 receive the awards under this subsection and dis21 seminate the document nationally to all public

22 and private secondary school guidance counselors

23 for use by secondary school juniors and seniors

24 preparing to enter an institution of higher edu-
12

HR 6 EAS

1 cation. The document shall be disseminated not

2 later than January 1 of each academic year.

3 ‘‘(D) AMOUNT AND USE.—Each institution

4 of higher education selected to receive an award

5 under this subsection shall receive an award in

6 the amount of $50,000. Such award shall be used

7 for the maintenance and improvement of the in8 stitution’s alcohol prevention program for the

9 academic year following the academic year for

10 which the award is made.

11 ‘‘(3) APPLICATION.—

12 ‘‘(A) IN GENERAL.—Each institution of

13 higher education desiring an award under this

14 subsection shall submit an application to the

15 Secretary at such time, in such manner, and ac16 companied by such information as the Secretary

17 may require. Each such application shall con18 tain—

19 ‘‘(i) a clear description of the goals

20 and objectives of the alcohol program of the

21 institution;

22 ‘‘(ii) a description of program activi23 ties that focus on alcohol policy issues, pol24 icy development, modification, or refine-
13

HR 6 EAS

1 ment, policy dissemination and implemen2 tation, and policy enforcement;

3 ‘‘(iii) a description of activities that

4 encourage student and employee participa5 tion and involvement in activity develop6 ment and implementation;

7 ‘‘(iv) the objective criteria used to de8 termine the effectiveness of the methods used

9 in the program and the means used to

10 evaluate and improve the program efforts;

11 and

12 ‘‘(v) a description of the activities to be

13 assisted that meet the criteria described in

14 subparagraph (C).

15 ‘‘(B) APPLICATION REVIEW.—The Secretary

16 shall appoint a committee to review applications

17 submitted under this paragraph. The committee

18 may include representatives of Federal depart19 ments or agencies the programs of which include

20 alcohol abuse prevention and education efforts,

21 directors or heads (or their representatives) of

22 professional associations that focus on alcohol

23 abuse prevention efforts, and non-Federal sci24 entists who have backgrounds in social science

25 evaluation and research methodology and in edu-
14

HR 6 EAS

1 cation. Decisions of the committee shall be made

2 directly to the Secretary without review by any

3 other entity in the Department.

4 ‘‘(C) REVIEW CRITERIA.—The committee de5 scribed in subparagraph (B) shall develop spe6 cific review criteria for reviewing and evaluating

7 applications submitted under this paragraph.

8 Such criteria shall include whether the institu9 tion of higher education has policies in effect

10 that—

11 ‘‘(i) prohibit alcoholic beverage spon12 sorship of athletic events, and prohibit alco13 holic beverage advertising inside athletic fa14 cilities;

15 ‘‘(ii) prohibit alcoholic beverage mar16 keting on campus, which may include ef17 forts to ban alcohol advertising in institu18 tional publications or efforts to prohibit al19 cohol-related advertisements at campus

20 events;

21 ‘‘(iii) establish or expand upon alcohol22 free living arrangements for all college stu23 dents;

24 ‘‘(iv) establish partnerships with com25 munity members and organizations to fur-
15

HR 6 EAS

1 ther alcohol prevention efforts on campus

2 and the areas surrounding campus; and

3 ‘‘(v) establish innovative communica4 tions programs involving students and fac5 ulty in an effort to educate students about

6 alcohol-related risks.

7 ‘‘(4) ELIGIBILITY.—

8 ‘‘(A) IN GENERAL.—In order to be eligible

9 to receive a National Recognition Award an in10 stitution of higher education shall—

11 ‘‘(i) offer an associate or baccalaureate

12 degree;

13 ‘‘(ii) have established an alcohol abuse

14 prevention and education program;

15 ‘‘(iii) nominate itself or be nominated

16 by others, such as professional associations

17 or student organizations, to receive the

18 award; and

19 ‘‘(iv) not have received an award

20 under this subsection during the 5 academic

21 years preceding the academic year for which

22 the determination is made.

23 ‘‘(B) OBJECTIVES.—In order to receive a

24 National Recognition Award an institution shall

25 demonstrate in the application submitted under
16

HR 6 EAS

1 paragraph (3) that the institution has accom2 plished all of the following objectives:

3 ‘‘(i) The elimination of alcoholic bev4 erage sponsorship of athletic events, and the

5 elimination of alcoholic beverage advertising

6 inside athletic facilities.

7 ‘‘(ii) The elimination of alcoholic bev8 erage marketing on campus that may in9 clude efforts to ban alcohol advertising in

10 institutional publications or prohibit alco11 hol-related advertisements at campus events.

12 ‘‘(iii) The establishment or expansion

13 of alcohol-free living arrangements for all

14 college students.

15 ‘‘(iv) The establishment of partnerships

16 with community members and organiza17 tions to further alcohol prevention efforts on

18 campus and the surrounding areas.

19 ‘‘(v) The establishment of innovative

20 communications programs involving stu21 dents and faculty in an effort to educate

22 students about alcohol-related risks.

23 ‘‘(5) AUTHORIZATION OF APPROPRIATIONS.—
17

HR 6 EAS

1 ‘‘(A) IN GENERAL.—There is authorized to

2 be appropriated to carry out this subsection

3 $750,000 for fiscal year 1999.

4 ‘‘(B) AVAILABILITY.—Funds appropriated

5 under subparagraph (A) shall remain available

6 until expended.’’.

7 SEC. 105. PRIOR RIGHTS AND OBLIGATIONS; RECOVERY OF

8 PAYMENTS.

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

10 after section 110 (as redesignated by section 101(a)(6)) the

11 following:

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

13 ‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—

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

15 There are authorized to be appropriated such sums as

16 may be necessary for fiscal year 1999 and for each of

17 the 4 succeeding fiscal years to pay obligations in18 curred prior to 1987 under parts C and D of title

19 VII, as such parts were in effect before the effective

20 date of the Higher Education Amendments of 1992.

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

22 VII.—There are authorized to be appropriated such

23 sums as may be necessary for fiscal year 1999 and

24 for each of the 4 succeeding fiscal years to pay obliga25 tions incurred prior to the date of enactment of the
18

HR 6 EAS

1 Higher Education Amendments of 1998 under part C

2 of title VII, as such part was in effect during the pe3 riod—

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

5 Education Amendments of 1992; and

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

7 Higher Education Amendments of 1998.

8 ‘‘(b) LEGAL RESPONSIBILITIES.—

9 ‘‘(1) PRE-1987 TITLE VII.—All entities with con10 tinuing obligations incurred under parts A, B, C, and

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

12 effective date of the Higher Education Amendments of

13 1992, shall be subject to the requirements of such part

14 as in effect before the effective date of the Higher Edu15 cation Amendments of 1992.

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

17 VII.—All entities with continuing obligations incurred

18 under part C of title VII, as such part was in effect

19 during the period—

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

21 Education Amendments of 1992; and

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

23 Higher Education Amendments of 1998,

24 shall be subject to the requirements of such part as

25 such part was in effect during such period.
19

HR 6 EAS

1 ‘‘SEC. 112. RECOVERY OF PAYMENTS.

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

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

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

5 of enactment of the Higher Education Amendments of 1998,

6 or part B of such title as such part B was in effect prior

7 to the date of enactment of the Higher Education Amend8 ments of 1992, is used as an academic facility for 20 years

9 following completion of such construction, the public benefit

10 accruing to the United States will equal in value the

11 amount of the grant. The period of 20 years after comple12 tion of such construction shall therefore be deemed to be the

13 period of Federal interest in such facility for the purposes

14 of such title as so in effect.

15 ‘‘(b) RECOVERY UPON CESSATION OF PUBLIC BENE16 FIT.—If, within 20 years after completion of construction

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

18 with a grant under part A of title VII as such part A was

19 in effect prior to the date of enactment of the Higher Edu20 cation Amendments of 1998, or part B of title VII as such

21 part B was in effect prior to the date of enactment of the

22 Higher Education Amendments of 1992—

23 ‘‘(1) the applicant under such parts as so in ef24 fect (or the applicant’s successor in title or possession)

25 ceases or fails to be a public or nonprofit institution,

26 or
20

HR 6 EAS

1 ‘‘(2) the facility ceases to be used as an academic

2 facility, or the facility is used as a facility excluded

3 from the term ‘academic facility’ (as such term was

4 defined under title VII, as so in effect), unless the Sec5 retary determines that there is good cause for releas6 ing the institution from its obligation,

7 the United States shall be entitled to recover from such ap8 plicant (or successor) an amount which bears to the value

9 of the facility at that time (or so much thereof as constituted

10 an approved project or projects) the same ratio as the

11 amount of Federal grant bore to the cost of the facility fi12 nanced with the aid of such grant. The value shall be deter13 mined by agreement of the parties or by action brought in

14 the United States district court for the district in which

15 such facility is situated.

16 ‘‘(c) PROHIBITION ON USE FOR RELIGION.—Notwith17 standing the provisions of subsections (a) and (b), no

18 project assisted with funds under title VII (as in effect prior

19 to the date of enactment of the Higher Education Amend20 ments of 1998) shall ever be used for religious worship or

21 a sectarian activity or for a school or department of divin22 ity.
21

HR 6 EAS

1 ‘‘SEC. 113. STUDENT-RELATED DEBT STUDY REQUIRED.

2 ‘‘(a) IN GENERAL.—The Secretary shall conduct a

3 study that analyzes the distribution and increase in stu4 dent-related debt in terms of—

5 ‘‘(1) demographic characteristics, such as race or

6 ethnicity, and family income;

7 ‘‘(2) type of institution and whether the institu8 tion is a public or private institution;

9 ‘‘(3) loan source, such as Federal, State, institu10 tional or other, and, if the loan source is Federal,

11 whether the loan is or is not subsidized;

12 ‘‘(4) academic field of study;

13 ‘‘(5) parent loans, and whether the parent loans

14 are federally guaranteed, private, or property-secured

15 such as home equity loans; and

16 ‘‘(6) relation of student debt or anticipated debt

17 to—

18 ‘‘(A) students’ decisions about whether and

19 where to enroll in college and whether or how

20 much to borrow in order to attend college;

21 ‘‘(B) the length of time it takes students to

22 earn baccalaureate degrees;

23 ‘‘(C) students’ decisions about whether and

24 where to attend graduate school;

25 ‘‘(D) graduates’ employment decisions;
22

HR 6 EAS

1 ‘‘(E) graduates’ burden of repayment as re2 flected by the graduates’ ability to save for retire3 ment or invest in a home; and

4 ‘‘(F) students’ future earnings.

5 ‘‘(b) REPORT.—After conclusion of the study required

6 by subsection (a), the Secretary shall submit a final report

7 regarding the findings of the study to the Committee on

8 Labor and Human Resources of the Senate and the Com9 mittee on Education and the Workforce of the House of Rep10 resentatives not later than 18 months after the date of enact11 ment of the Higher Education Amendments of 1998.

12 ‘‘(c) INFORMATION.—After the study and report under

13 this section are concluded, the Secretary shall determine

14 which information described in subsection (a) would be use15 ful for families to know and shall include such information

16 as part of the comparative information provided to families

17 about the costs of higher education under the provisions of

18 section 486(a)(1).

19 ‘‘SEC. 114. STUDY OF FORECLOSED PROPERTY OR ASSETS.

20 ‘‘Not later than 90 days after the date of enactment

21 of the Higher Education Amendments of 1998, the Comp22 troller General, in consultation with the Inspector General

23 of the Department, shall submit a report to the Committee

24 on Labor and Human Resources of the Senate and the Com-
23

HR 6 EAS

1 mittee on Education and the Workforce of the House of Rep2 resentatives that provides the following:

3 ‘‘(1) Descriptions of legislative changes that can

4 be made to strengthen laws governing the transfer of

5 foreclosed property or assets by the Department to in6 dividuals or their agents that have had prior dealings

7 with the Department. Such descriptions shall address

8 the transfer of property to individuals or their agents

9 who have been in positions of management or over10 sight at postsecondary educational institutions that

11 have failed, or are failing, to make payments to the

12 Department on property loans, or defaulted on any

13 property or asset loan from a Federal agency.

14 ‘‘(2) Changes that can be implemented at the De15 partment to strengthen all rules and regulations gov16 erning the transfer of foreclosed property or assets by

17 the Department to individuals or their agents as de18 scribed in paragraph (1).

19 ‘‘SEC. 115. STATE REQUIREMENT.

20 ‘‘(a) IN GENERAL.—Except as provided in subsection

21 (b), each State, that has individuals who reside in the State

22 and who receive financial assistance under this Act, shall

23 provide an appropriate number of mail voter registration

24 forms (as described in section 6(a) of the National Voter

25 Registration Act (42 U.S.C. 1973gg–4(a))) to each eligible
24

HR 6 EAS

1 institution under section 487 in the State, not later than

2 60 days before each date that is the last day to register to

3 vote for a regularly scheduled—

4 ‘‘(1) election (as defined in section 301(1) of the

5 Federal Election Campaign Act of 1971 (2 U.S.C.

6 431(1)); or

7 ‘‘(2) election for Governor or other chief executive

8 within such State.

9 ‘‘(b) NONAPPLICABILITY TO CERTAIN STATES.—The

10 requirement of subsection (a) shall not apply to a State

11 which is described in section 4(b) of the National Voter Reg12 istration Act (42 U.S.C. 1973gg–2(b)).

13 ‘‘SEC. 116. STUDY OF OPPORTUNITIES FOR PARTICIPATION

14 IN ATHLETICS PROGRAMS.

15 ‘‘(a) STUDY.—The Comptroller General shall conduct

16 a study of the opportunities for participation in intercolle17 giate athletics. The study shall address issues including—

18 ‘‘(1) the extent to which the number of—

19 ‘‘(A) secondary school athletic teams has in20 creased or decreased in the 20 years preceding

21 1998 (in aggregate terms); and

22 ‘‘(B) intercollegiate athletic teams has in23 creased or decreased in the 20 years preceding

24 1998 (in aggregate terms) at 2-year and 4-year

25 institutions of higher education;
25

HR 6 EAS

1 ‘‘(2) the extent to which participation by stu2 dent-athletes in secondary school and intercollegiate

3 athletics has increased or decreased in the 20 years

4 preceding 1998 (in aggregate terms);

5 ‘‘(3) over the 20-year period preceding 1998, a

6 list of the men’s and women’s secondary school and

7 intercollegiate sports, ranked in order of the sports

8 most affected by increases or decreases in levels of

9 participation and numbers of teams (in the aggre10 gate);

11 ‘‘(4) all factors that have influenced campus offi12 cials to add or discontinue sports teams at secondary

13 schools and institutions of higher education, includ14 ing—

15 ‘‘(A) institutional mission and priorities;

16 ‘‘(B) budgetary pressures;

17 ‘‘(C) institutional reforms and restructur18 ing;

19 ‘‘(D) escalating liability insurance pre20 miums;

21 ‘‘(E) changing student and community in22 terest in a sport;

23 ‘‘(F) advancement of diversity among stu24 dents;
26

HR 6 EAS

1 ‘‘(G) lack of necessary level of competitive2 ness of the sports program;

3 ‘‘(H) club level sport achieving a level of

4 competitiveness to make the sport a viable var5 sity level sport;

6 ‘‘(I) injuries or deaths; and

7 ‘‘(J) conference realignment;

8 ‘‘(5) the actions that institutions of higher edu9 cation have taken when decreasing the level of partici10 pation in intercollegiate sports, or the number of

11 teams, in terms of providing information, advice,

12 scholarship maintenance, counseling, advance warn13 ing, and an opportunity for student-athletes to be in14 volved in the decisionmaking process;

15 ‘‘(6) the administrative processes and procedures

16 used by institutions of higher education when deter17 mining whether to increase or decrease intercollegiate

18 athletic teams or participation by student-athletes;

19 ‘‘(7) the budgetary or fiscal impact, if any, of a

20 decision by an institution of higher education—

21 ‘‘(A) to increase or decrease the number of

22 intercollegiate athletic teams or the participation

23 of student-athletes; or

24 ‘‘(B) to be involved in a conference realign25 ment; and
27

HR 6 EAS

1 ‘‘(8) the alternatives, if any, institutions of high2 er education have pursued in lieu of eliminating, or

3 severely reducing the funding for, an intercollegiate

4 sport, and the success of such alternatives.

5 ‘‘(b) REPORT.—The Comptroller General shall submit

6 a report regarding the results of the study to the Committee

7 on Labor and Human Resources of the Senate and the Com8 mittee on Education and the Workforce of the House of Rep9 resentatives.

10 ‘‘SEC. 117. SPECIAL RULE.

11 ‘‘Notwithstanding any other provision of law, the sum

12 of financial assistance received under this Act and other

13 Federal financial assistance for postsecondary education re14 ceived by an individual shall not exceed the individual’s

15 cost of attendance as defined in section 472, except that no

16 individual shall have the amount of a Federal Pell Grant

17 for which the individual is eligible reduced as a result of

18 the application of this section.’’.

19 SEC. 106. TECHNICAL AND CONFORMING AMENDMENTS.

20 (a) CONFORMING AMENDMENTS CORRECTING REF21 ERENCES TO SECTION 1201.—

22 (1) AGRICULTURE.—

23 (A) STUDENT INTERNSHIP PROGRAMS.—

24 Section 922 of the Federal Agriculture Improve-
28

HR 6 EAS

1 ment and Reform Act of 1996 (7 U.S.C. 2279c)

2 is amended—

3 (i) in subsection (a)(1)(B)—

4 (I) by striking ‘‘1201’’ and insert5 ing ‘‘101’’; and

6 (II) by striking ‘‘(20 U.S.C.

7 1141)’’; and

8 (ii) in subsection (b)(1)—

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

11 (II) by striking ‘‘(20 U.S.C.

12 1141)’’.

13 (B) AGRICULTURAL SCIENCES EDU14 CATION.—Section 1417(h)(1)(A) of the National

15 Agricultural Research, Extension, and Teaching

16 Policy Act of 1977 (7 U.S.C. 3152(h)(1)(A)) is

17 amended—

18 (i) by striking ‘‘1201(a)’’ and inserting

19 ‘‘101(a)’’; and

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

21 (2) ARMED FORCES.—

22 (A) SCIENCE AND MATHEMATICS EDU23 CATION IMPROVEMENT PROGRAM.—Section

24 2193(c)(1) of title 10, United States Code, is

25 amended—
29

HR 6 EAS

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

2 ‘‘101(a)’’; and

3 (ii) by striking ‘‘(20 U.S.C. 1141(a))’’.

4 (B) SUPPORT OF SCIENCE, MATHEMATICS,

5 AND ENGINEERING EDUCATION.—Section 2199(2)

6 of title 10, United States Code, is amended—

7 (i) by striking ‘‘1201(a)’’ and inserting

8 ‘‘101(a)’’; and

9 (ii) by striking ‘‘(20 U.S.C. 1141(a))’’.

10 (C) ALLOWABLE COSTS UNDER DEFENSE

11 CONTRACTS.—Section 841(c)(2) of the National

12 Defense Authorization Act for fiscal year 1994

13 (10 U.S.C. 2324 note) is amended—

14 (i) by striking ‘‘1201(a)’’ and inserting

15 ‘‘101(a)’’; and

16 (ii) by striking ‘‘(20 U.S.C. 1141(a))’’.

17 (D) ENVIRONMENTAL RESTORATION INSTI18 TUTIONAL GRANTS FOR TRAINING DISLOCATED

19 DEFENSE WORKERS AND YOUNG ADULTS.—Sec20 tion 1333(i)(3) of the National Defense Author21 ization Act for fiscal year 1994 (10 U.S.C. 2701

22 note) is amended—

23 (i) by striking ‘‘1201(a)’’ and inserting

24 ‘‘101(a)’’; and

25 (ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
30

HR 6 EAS

1 (E) ENVIRONMENTAL EDUCATION OPPORTU2 NITIES PROGRAM.—Section 1334(k)(3) of the Na3 tional Defense Authorization Act for fiscal year

4 1994 (10 U.S.C. 2701 note) is amended—

5 (i) by striking ‘‘1201(a)’’ and inserting

6 ‘‘101(a)’’; and

7 (ii) by striking ‘‘(20 U.S.C. 1141(a))’’.

8 (F) ENVIRONMENTAL SCHOLARSHIP AND

9 FELLOWSHIP PROGRAMS.—Section 4451(b)(1) of

10 the National Defense Authorization Act for 1993

11 (10 U.S.C. 2701 note) is amended—

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

13 ‘‘101(a)’’; and

14 (ii) by striking ‘‘(20 U.S.C. 1141(a))’’.

15 (3) APPLICATION OF ANTITRUST LAWS TO AWARD

16 OF NEED-BASED EDUCATIONAL AID.—Section

17 568(c)(3) of the Improving America’s Schools Act of

18 1994 (15 U.S.C. 1 note) is amended—

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

20 ‘‘101(a)’’; and

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

22 (4) RESTRICTIONS ON FORMER OFFICERS, EM23 PLOYEES, AND ELECTED OFFICIALS OF THE EXECU24 TIVE AND LEGISLATIVE BRANCHES.—Section

25 207(j)(2)(B) of title 18, United States Code, is
31

HR 6 EAS

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

2 ‘‘101(a)’’.

3 (5) EDUCATION.—

4 (A) HIGHER EDUCATION AMENDMENTS OF

5 1992.—Section 1(c) of the Higher Education

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

7 amended by striking ‘‘1201’’ and inserting

8 ‘‘101’’.

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

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

11 1088) is amended—

12 (i) in subsection (a)—

13 (I) in the matter preceding para14 graph (1)(A), by striking ‘‘1201(a)’’

15 and inserting ‘‘101(a)’’;

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

17 striking ‘‘1201(a)’’ and inserting

18 ‘‘101(a)’’;

19 (III) in the first sentence of the

20 matter preceding clause (i) of para21 graph (2)(A), by striking ‘‘1201(a)’’

22 and inserting ‘‘101(a)’’; and

23 (IV) in the matter following para24 graph (2)(B)(ii), by striking ‘‘1201(a)’’

25 and inserting ‘‘101(a)’’;
32

HR 6 EAS

1 (ii) in subsection (b)—

2 (I) in the first sentence—

3 (aa) in paragraph (2), by

4 striking ‘‘1201(a)’’ and inserting

5 ‘‘101(a)’’; and

6 (bb) in paragraph (3), by

7 striking ‘‘1201(a)’’ and inserting

8 ‘‘101(a)’’; and

9 (II) in the second sentence, by

10 striking ‘‘1201(a)’’ and inserting

11 ‘‘101(a)’’; and

12 (iii) in subsection (c)—

13 (I) in the first sentence, by strik14 ing ‘‘1201(a)’’ and inserting ‘‘101(a)’’;

15 and

16 (II) in the second sentence, by

17 striking ‘‘1201(a)’’ and inserting

18 ‘‘101(a)’’.

19 (C) TREATMENT OF BRANCHES.—Section

20 498(j)(2) of the Higher Education Act of 1965

21 (20 U.S.C. 1099c(j)(2)) is amended by striking

22 ‘‘1201(a)(2)’’ and inserting ‘‘101(a)(2)’’.

23 (D) INTERNATIONAL EDUCATION PRO24 GRAMS.—Section 631(a)(8) of the Higher Edu25 cation Act of 1965 (20 U.S.C. 1132(a)(8)) is
33

HR 6 EAS

1 amended by striking ‘‘1201(a)’’ each place it ap2 pears and inserting ‘‘101(a)’’.

3 (E) DWIGHT D. EISENHOWER LEADERSHIP

4 PROGRAM.—Section 1081(d) of the Higher Edu5 cation Act of 1965 (20 U.S.C. 1135f(d)) is

6 amended by striking ‘‘1201’’ and inserting

7 ‘‘101’’.

8 (F) DISCLOSURE REQUIREMENTS.—Section

9 429(d)(2)(B)(ii) of the General Education Provi10 sions Act (20 U.S.C. 1228c(d)(2)(B)(ii)) is

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

12 ‘‘101(a)’’.

13 (G) HARRY S. TRUMAN SCHOLARSHIPS.—

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

15 Scholarship Act (20 U.S.C. 2002(4)) is amended

16 by striking ‘‘1201(a)’’ and inserting ‘‘101(a)’’.

17 (H) TECH-PREP EDUCATION.—Section

18 347(2)(A) of the Carl D. Perkins Vocational and

19 Applied Technology Education Act (20 U.S.C.

20 2394e(2)(A)) is amended by striking ‘‘1201(a)’’

21 and inserting ‘‘101(a)’’.

22 (I) EDUCATION FOR ECONOMIC SECURITY.—

23 Section 3(6) of the Education for Economic Se24 curity Act (20 U.S.C. 3902(6)) is amended by

25 striking ‘‘1201(a)’’ and inserting ‘‘101(a)’’.
34

HR 6 EAS

1 (J) JAMES MADISON MEMORIAL FELLOW2 SHIPS.—Section 815 of the James Madison Me3 morial Fellowship Act (20 U.S.C. 4514) is

4 amended—

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

6 ‘‘1201(a)’’ and inserting ‘‘101(a)’’; and

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

8 ‘‘1201(d) of the Higher Education Act of

9 1965’’ and inserting ‘‘14101 of the Elemen10 tary and Secondary Education Act of

11 1965’’.

12 (K) BARRY GOLDWATER SCHOLARSHIPS.—

13 Section 1403(4) of the Barry Goldwater Scholar14 ship and Excellence in Education Act (20 U.S.C.

15 4702(4)) is amended—

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

17 ‘‘101(a)’’; and

18 (ii) by striking ‘‘(20 U.S.C. 1141(a))’’.

19 (L) MORRIS K. UDALL SCHOLARSHIPS.—

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

21 and Excellence in National Environmental and

22 Native American Public Policy Act of 1992 (20

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

24 ‘‘1201(a)’’ and inserting ‘‘101(a)’’.
35

HR 6 EAS

1 (M) BILINGUAL EDUCATION, AND LANGUAGE

2 ENHANCEMENT AND ACQUISITION.—Section

3 7501(4) of the Elementary and Secondary Edu4 cation Act of 1965 (20 U.S.C. 7601(4)) is

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

6 ‘‘101(a)’’.

7 (N) GENERAL DEFINITIONS.—Section

8 14101(17) of the Elementary and Secondary

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

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

11 ‘‘101(a)’’.

12 (O) NATIONAL EDUCATION STATISTICS.—

13 Section 402(c)(3) of the National Education Sta14 tistics Act of 1994 (20 U.S.C. 9001(c)(3)) is

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

16 ‘‘101(a)’’.

17 (6) FOREIGN RELATIONS.—

18 (A) ENVIRONMENT AND SUSTAINABLE DE19 VELOPMENT EXCHANGE PROGRAM.—Section

20 240(d) of the Foreign Relations Authorization

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

22 2452 note) is amended by striking ‘‘1201(a)’’

23 and inserting ‘‘101(a)’’.

24 (B) SAMANTHA SMITH MEMORIAL EX25 CHANGE PROGRAM.—Section 112(a)(8) of the
36

HR 6 EAS

1 Mutual Educational and Cultural Exchange Act

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

3 (i) by striking ‘‘1201(a)’’ and inserting

4 ‘‘101(a)’’; and

5 (ii) by striking ‘‘(20 U.S.C. 1141(a))’’.

6 (C) SOVIET-EASTERN EUROPEAN TRAIN7 ING.—Section 803(1) of the Soviet-Eastern Euro8 pean Research and Training Act of 1983 (22

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

10 ‘‘1201(a)’’ and inserting ‘‘101(a)’’.

11 (D) DEVELOPING COUNTRY SCHOLAR12 SHIPS.—Section 603(d) of the Foreign Relations

13 Authorization Act, Fiscal Years 1986 and 1987

14 (22 U.S.C. 4703(d)) is amended by striking

15 ‘‘1201(a)’’ and inserting ‘‘101(a)’’.

16 (7) INDIANS.—

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

18 section 410 of the Act entitled ‘‘An Act authoriz19 ing appropriations and expenditures for the ad20 ministration of Indian Affairs, and for other

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

22 U.S.C. 13) (commonly known as the Snyder Act)

23 is amended by striking ‘‘1201’’ and inserting

24 ‘‘101’’.
37

HR 6 EAS

1 (B) TRIBALLY CONTROLLED COMMUNITY

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

3 Tribally Controlled Community College Assist4 ance Act (25 U.S.C. 1801(a)(5)) is amended by

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

6 (C) CONSTRUCTION OF NEW FACILITIES.—

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

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

9 1813(b)(2)) is amended—

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

11 ‘‘101(a)’’; and

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

13 (D) AMERICAN INDIAN TEACHER TRAIN14 ING.—Section 1371(a)(1)(B) of the Higher Edu15 cation Amendments of 1992 (25 U.S.C.

16 3371(a)(1)(B)) is amended by striking ‘‘1201(a)’’

17 and inserting ‘‘101(a)’’.

18 (8) LABOR.—

19 (A) REHABILITATION DEFINITIONS.—Sec20 tion 7(32) of the Rehabilitation Act of 1973 (29

21 U.S.C. 706(32)) is amended—

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

23 ‘‘101(a)’’; and

24 (ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
38

HR 6 EAS

1 (B) STATE PLANS.—Section

2 101(a)(7)(A)(iv)(II) of the Rehabilitation Act of

3 1973 (29 U.S.C. 721(a)(7)(A)(iv)(II)) is amend4 ed—

5 (i) by striking ‘‘1201(a)’’ and inserting

6 ‘‘101(a)’’; and

7 (ii) by striking ‘‘(20 U.S.C. 1141(a))’’.

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

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

10 1503(12)) is amended by striking ‘‘1201(a)’’ and

11 inserting ‘‘101(a)’’.

12 (D) TUITION CHARGES.—Section

13 141(d)(3)(B) of the Job Training Partnership

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

15 (i) by striking ‘‘1201(a)’’ and inserting

16 ‘‘101(a)’’; and

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

18 (9) SURFACE MINING CONTROL.—Section

19 701(32) of the Surface Mining Control and Reclama20 tion Act of 1977 (30 U.S.C. 1291(32)) is amended by

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

22 (10) POLLUTION PREVENTION.—Section

23 112(a)(1) of the Federal Water Pollution Control Act

24 (33 U.S.C. 1262(a)(1)) is amended by striking

25 ‘‘1201’’ and inserting ‘‘101’’.
39

HR 6 EAS

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

2 title 39, United States Code, is amended—

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

4 ‘‘101(a)’’; and

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

6 (12) PUBLIC HEALTH AND WELFARE.—

7 (A) SCIENTIFIC AND TECHNICAL EDU8 CATION.—Section 3(g) of the Scientific and Ad9 vanced-Technology Act of 1992 (42 U.S.C.

10 1862i(g)) is amended—

11 (i) in paragraph (2)—

12 (I) by striking ‘‘1201(a)’’ and in13 serting ‘‘101(a)’’; and

14 (II) by striking ‘‘(20 U.S.C.

15 1141(a))’’; and

16 (ii) in paragraph (3)—

17 (I) by striking ‘‘1201(a)’’ and in18 serting ‘‘101(a)’’; and

19 (II) by striking ‘‘(20 U.S.C.

20 1141(a))’’.

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

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

23 3002(32)) is amended—

24 (i) by striking ‘‘1201(a)’’ and inserting

25 ‘‘101(a)’’; and
40

HR 6 EAS

1 (ii) by striking ‘‘(20 U.S.C. 1141(a))’’.

2 (C) JUSTICE SYSTEM IMPROVEMENT.—Sec3 tion 901(17) of the Omnibus Crime Control and

4 Safe Streets Act of 1968 (42 U.S.C. 3791(17)) is

5 amended—

6 (i) by striking ‘‘1201(a)’’ and inserting

7 ‘‘101(a)’’; and

8 (ii) by striking ‘‘(20 U.S.C. 1141(a))’’.

9 (D) ENERGY TECHNOLOGY COMMERCIALIZA10 TION SERVICES PROGRAM.—Section 362(f)(5)(A)

11 of the Energy Policy and Conservation Act (42

12 U.S.C. 6322(f)(5)(A)) is amended—

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

14 ‘‘101(a)’’; and

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

16 (E) ENVIRONMENTAL RESTORATION AND

17 WASTE MANAGEMENT.—Section 3132(b)(1) of the

18 National Defense Authorization Act for Fiscal

19 Years 1992 and 1993 (42 U.S.C. 7274e(b)(1)) is

20 amended—

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

22 ‘‘101(a)’’; and

23 (ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
41

HR 6 EAS

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

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

3 amended—

4 (i) by striking ‘‘1201(a)’’ and inserting

5 ‘‘101(a)’’; and

6 (ii) by striking ‘‘(20 U.S.C. 1141(a))’’.

7 (G) STATE DEPENDENT CARE DEVELOP8 MENT GRANTS.—Section 670G(5) of the Child

9 Care and Development Block Grant Act of 1990

10 (42 U.S.C. 9877(5)) is amended by striking

11 ‘‘1201(a)’’ and inserting ‘‘101(a)’’.

12 (H) INSTRUCTIONAL ACTIVITIES FOR LOW13 INCOME YOUTH.—The matter preceding subpara14 graph (A) of section 682(b)(1) of the Community

15 Services Block Grant Act (42 U.S.C.

16 9910c(b)(1)) is amended by striking ‘‘1201(a)’’

17 and inserting ‘‘101(a)’’.

18 (I) DRUG ABUSE EDUCATION.—Section

19 3601(7) of the Anti-Drug Abuse Act of 1988 (42

20 U.S.C. 11851(7)) is amended—

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

22 ‘‘101(a)’’; and

23 (ii) by striking ‘‘(20 U.S.C. 1141(a))’’.

24 (J) NATIONAL AND COMMUNITY SERVICE.—

25 Section 101(13) of the National and Community
42

HR 6 EAS

1 Service Act of 1990 (42 U.S.C. 12511(13)) is

2 amended—

3 (i) by striking ‘‘1201(a)’’ and inserting

4 ‘‘101(a)’’; and

5 (ii) by striking ‘‘(20 U.S.C. 1141(a))’’.

6 (K) CIVILIAN COMMUNITY CORPS.—Section

7 166(6) of the National and Community Service

8 Act of 1990 (42 U.S.C. 12626(6)) is amended—

9 (i) by striking ‘‘1201(a)’’ and inserting

10 ‘‘101(a)’’; and

11 (ii) by striking ‘‘(20 U.S.C. 1141(a))’’.

12 (L) COMMUNITY SCHOOLS YOUTH SERVICES

13 AND SUPERVISION GRANT PROGRAM.—The defini14 tion of public school in section 30401(b) of the

15 Community Schools Youth Services and Super16 vision Grant Program Act of 1994 (42 U.S.C.

17 13791(b)) is amended—

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

19 appears and inserting ‘‘101’’; and

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

21 (M) POLICE CORPS.—The definition of in22 stitution of higher education in section 200103 of

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

24 amended—
43

HR 6 EAS

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

2 ‘‘101(a)’’; and

3 (ii) by striking ‘‘(20 U.S.C. 1141(a))’’.

4 (N) LAW ENFORCEMENT SCHOLARSHIP PRO5 GRAM.—The definition of institution of higher

6 education in section 200202 of the Law Enforce7 ment Scholarship and Recruitment Act (42

8 U.S.C. 14111) is amended—

9 (i) by striking ‘‘1201(a)’’ and inserting

10 ‘‘101(a)’’; and

11 (ii) by striking ‘‘(20 U.S.C. 1141(a))’’.

12 (13) TELECOMMUNICATIONS.—Section 223(h)(4)

13 of the Telecommunications Act of 1934 (47 U.S.C.

14 223(h)(4)) is amended—

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

16 ‘‘101’’; and

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

18 (14) WAR AND NATIONAL DEFENSE.—Section

19 808(3) of the David L. Boren National Security Edu20 cation Act of 1991 (50 U.S.C. 1908(3)) is amended—

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

22 ‘‘101(a)’’; and

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

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

25 et seq.) is amended—
44

HR 6 EAS

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

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

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

4 (A) in subsection (a)—

5 (i) in paragraph (1)—

6 (I) in the matter preceding sub7 paragraph (A), by striking ‘‘1201(a)’’

8 and inserting ‘‘101(a)’’; and

9 (II) in subparagraph (C), by

10 striking ‘‘1201(a)’’ and inserting

11 ‘‘101(a)’’; and

12 (ii) in paragraph (2)—

13 (I) in the matter preceding clause

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

15 ‘‘1201(a)’’ and inserting ‘‘101(a)’’; and

16 (II) in the matter following clause

17 (ii) of subparagraph (B), by striking

18 ‘‘1201(a)’’ and inserting ‘‘101(a)’’;

19 (B) in subsection (b), by striking ‘‘1201(a)’’

20 each place the term appears and inserting

21 ‘‘101(a)’’; and

22 (C) in subsection (c), by striking ‘‘1201(a)’’

23 each place the term appears and inserting

24 ‘‘101(a)’’;
45

HR 6 EAS

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

2 1092(f)(1)(I)), by striking ‘‘1213’’ and inserting

3 ‘‘111’’;

4 (4) in section 498(j)(2) (20 U.S.C. 1099c(j)(2)),

5 by striking ‘‘1201(a)(2)’’ and inserting ‘‘101(a)(2)’’;

6 (5) in section 591(d)(2) (20 U.S.C. 1115(d)(2)),

7 by striking ‘‘1201(a)’’ and inserting ‘‘101(a)’’;

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

9 1132(a)(8))—

10 (A) by striking ‘‘section 1201(a)’’ each place

11 the term appears and inserting ‘‘section 101(a)’’;

12 and

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

14 ‘‘of section 101(a)’’; and

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

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

17 TITLE II—IMPROVING TEACHER

18 QUALITY

19 SEC. 201. IMPROVING TEACHER QUALITY.

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

21 after section 112 (as added by section 105) the following:

22 ‘‘TITLE II—IMPROVING TEACHER

23 QUALITY

24 ‘‘SEC. 201. PURPOSES.

25 ‘‘The purpose of this title is to—
46

HR 6 EAS

1 ‘‘(1) improve student achievement;

2 ‘‘(2) improve the quality of the current and fu3 ture teaching force by improving the preparation of

4 prospective teachers and enhancing professional devel5 opment activities; and

6 ‘‘(3) hold institutions of higher education ac7 countable for preparing teachers who have the nec8 essary teaching skills and are highly competent in the

9 academic content areas in which the teachers plan to

10 teach, including training in the effective uses of tech11 nologies in the classroom.

12 ‘‘PART A—TEACHER QUALITY

13 ‘‘Subpart 1—Teacher Quality Enhancement Grants

14 ‘‘SEC. 211. GRANTS AUTHORIZED.

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

16 award grants to States to enable the States to carry out

17 the activities described in section 212. Each grant may be

18 awarded for a period of not more than 5 years.

19 ‘‘(b) STATE DESIGNATION.—

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

21 under this subpart shall, consistent with State law,

22 designate the chief individual or entity in the State

23 responsible for the State supervision of education, to

24 administer the activities assisted under this subpart.
47

HR 6 EAS

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

2 designated under paragraph (1) shall consult with the

3 Governor, State board of education, or State edu4 cational agency, as appropriate.

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

6 shall be construed to negate or supersede the legal au7 thority under State law of any State agency, State

8 entity, or State public official over programs that are

9 under the jurisdiction of the agency, entity, or offi10 cial.

11 ‘‘(c) MATCHING REQUIREMENT.—Each State receiving

12 a grant under this subpart shall provide, from non-Federal

sources, an amount equal to 1 13 ⁄2 of the amount of the grant,

14 in cash or in kind, to carry out the activities supported

15 through the grant.

16 ‘‘SEC. 212. USE OF FUNDS.

17 ‘‘A State that receives a grant under this subpart shall

18 use the grant funds to reform teacher preparation require19 ments, and to ensure that current and future teachers pos20 sess the necessary teaching skills and academic content

21 knowledge in the subject areas in which the teachers are

22 assigned to teach, by carrying out 1 or more of the following

23 activities:

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

25 hold institutions of higher education with teacher
48

HR 6 EAS

1 preparation programs accountable for preparing

2 teachers who are highly competent in the academic

3 content areas in which the teachers plan to teach,

4 which may include the use of rigorous subject matter

5 competency tests and the requirement that a teacher

6 have an academic major in the subject area, or relat7 ed discipline, in which the teacher plans to teach.

8 ‘‘(2) CERTIFICATION OR LICENSURE REQUIRE9 MENTS.—Reforming teacher certification or licensure

10 requirements to ensure that new teachers have the nec11 essary teaching skills and academic content knowledge

12 in the subject areas in which teachers are assigned to

13 teach.

14 ‘‘(3) ALTERNATIVES TO TRADITIONAL PREPARA15 TION FOR TEACHING.—Providing prospective teachers

16 alternatives to traditional preparation for teaching

17 through programs at colleges of arts and sciences or

18 at nonprofit educational organizations.

19 ‘‘(4) ALTERNATIVE ROUTES.—Funding programs

20 that establish, expand, or improve alternative routes

21 to State certification for highly qualified individuals

22 from other occupations and recent college graduates

23 with records of academic distinction, including sup24 port during the initial teaching experience.
49

HR 6 EAS

1 ‘‘(5) RECRUITMENT; PAY; REMOVAL.—Developing

2 and implementing effective mechanisms to ensure that

3 schools are able to effectively recruit highly qualified

4 teachers, to financially reward those teachers and

5 principals whose students have made significant

6 progress toward high academic performance, such as

7 through performance-based compensation systems and

8 access to ongoing professional development opportuni9 ties for teachers and administrators, and to remove

10 teachers who are not qualified.

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

12 implementation of innovative efforts aimed at reduc13 ing the shortage of highly qualified teachers in high

14 poverty urban and rural areas, and in school districts

15 with disproportionately high numbers of limited

16 English proficient students, that may include the re17 cruitment of highly qualified individuals from other

18 occupations through alternative certification pro19 grams.

20 ‘‘(7) SOCIAL PROMOTION.—Development and im21 plementation of efforts to address the problem of social

22 promotion and to prepare teachers to effectively ad23 dress the issues raised by ending the practice of social

24 promotion.
50

HR 6 EAS

1 ‘‘SEC. 213. COMPETITIVE AWARDS.

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

3 Secretary shall award grants under this subpart annually

4 and on a competitive basis.

5 ‘‘(b) PEER REVIEW PANEL.—The Secretary shall pro6 vide the applications submitted by States under section 214

7 to a peer review panel for evaluation. With respect to each

8 application, the peer review panel shall initially rec9 ommend the application for funding or for disapproval.

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

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

12 applications from States that describe activities that—

13 ‘‘(1) include innovative reforms to hold institu14 tions of higher education with teacher preparation

15 programs accountable for preparing teachers who are

16 highly competent in the academic content areas in

17 which the teachers plan to teach; and

18 ‘‘(2) involve the development of innovative efforts

19 aimed at reducing the shortage of highly qualified

20 teachers in high poverty urban and rural areas.

21 ‘‘SEC. 214. APPLICATIONS.

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

23 this subpart shall submit an application to the Secretary

24 at such time, in such manner and accompanied by such

25 information as the Secretary may require.
51

HR 6 EAS

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

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

3 funds provided under this subpart.

4 ‘‘Subpart 2—Teacher Training Partnerships Grants

5 ‘‘SEC. 221. GRANTS AUTHORIZED.

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

7 award grants to teacher training partnerships to enable the

8 partnerships to carry out the activities described in section

9 222. Each grant may be awarded for a period of not more

10 than 5 years.

11 ‘‘(b) DEFINITIONS.—In this part:

12 ‘‘(1) TEACHER TRAINING PARTNERSHIPS.—

13 ‘‘(A) IN GENERAL.—The term ‘teacher

14 training partnership’ means a partnership

15 that—

16 ‘‘(i) shall include a school of arts and

17 sciences, a school or program of education,

18 a local educational agency, and a kinder19 garten through grade 12 school;

20 ‘‘(ii) shall include a high need local

21 educational agency or kindergarten through

22 grade 12 school; and

23 ‘‘(iii) may include a State educational

24 agency, a pre-kindergarten program, a non-
52

HR 6 EAS

1 profit educational organization, a business,

2 or a teacher organization.

3 ‘‘(B) HIGH NEED.—A local educational

4 agency or kindergarten through grade 12 school

5 shall be considered high need for purposes of sub6 paragraph (A)(ii) if the agency or school serves

7 an area within a State in which there is—

8 ‘‘(i) a large number of individuals

9 from families with incomes below the pov10 erty line;

11 ‘‘(ii) a high percentage of teachers not

12 teaching in the content area in which the

13 teachers were trained to teach; or

14 ‘‘(iii) a high teacher turnover rate.

15 ‘‘(2) KINDERGARTEN THROUGH GRADE 12

16 SCHOOL.—The term ‘kindergarten through grade 12

17 school’ means a school having any one of the grades

18 kindergarten through grade 12.

19 ‘‘(c) PRIORITY.—In awarding grants under this sub20 part the Secretary shall give priority to partnerships that

21 involve businesses.

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

23 subpart the Secretary shall take into consideration—

24 ‘‘(1) providing an equitable geographic distribu25 tion of the grants throughout the United States; and
53

HR 6 EAS

1 ‘‘(2) the proposed project’s potential for creating

2 improvement and positive change.

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

4 a grant under this subpart shall provide, from sources other

5 than this subpart, an amount equal to 25 percent of the

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

7 and 50 percent in each succeeding such year, of the amount

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

9 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 shall

14 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;
54

HR 6 EAS

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 effectively

15 in the classroom;

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

17 methods into the curriculum;

18 ‘‘(7) broadly disseminate information on effective

19 practices used by the partnership; and

20 ‘‘(8) provide support, including preparation

21 time, for interaction between faculty at an institution

22 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.
55

HR 6 EAS

1 ‘‘(c) CONSTRUCTION.—Nothing in this part shall be

2 construed to prohibit a teacher training partnership from

3 using grant funds to coordinate with the activities of more

4 than 1 Governor, State board of education, or State edu5 cational agency.

6 ‘‘SEC. 223. APPLICATIONS.

7 ‘‘Each teacher training partnership desiring a grant

8 under this subpart shall submit an application to the Sec9 retary at such time, in such manner, and accompanied by

10 such information as the Secretary may require. Each such

11 application shall—

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

13 and the involvement of each partner in the develop14 ment of the application;

15 ‘‘(2) contain a needs assessment that includes an

16 analysis of the needs of all the partners with respect

17 to teaching and learning;

18 ‘‘(3) contain a resource assessment that in19 cludes—

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

21 the partnership;

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

23 grant funds;

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

25 will coordinate with other teacher training or
56

HR 6 EAS

1 professional development programs, including

2 Federal, State, local, private, and other pro3 grams;

4 ‘‘(D) a description of how the activities as5 sisted under this subpart are consistent with

6 educational reform activities that promote stu7 dent achievement; and

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

9 resources of the partnership to the activities as10 sisted under this subpart, including financial

11 support, faculty participation, and time commit12 ments;

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

14 the participation of the schools, colleges, or depart15 ments of arts and sciences within an institution of

16 higher education to ensure the integration of teaching

17 techniques and content in teaching preparation;

18 ‘‘(5) describe how the partnership will restruc19 ture and improve teaching, teacher training, and de20 velopment programs, and how such systemic changes

21 will contribute to increased student achievement;

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

23 teachers to work with diverse student populations, in24 cluding individuals with disabilities and limited

25 English proficient individuals;
57

HR 6 EAS

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

2 teachers to use technology;

3 ‘‘(8) contain a dissemination plan regarding

4 knowledge and information with respect to effective

5 teaching practices, and a description of how such

6 knowledge and information will be implemented in el7 ementary schools or secondary schools as well as insti8 tutions of higher education;

9 ‘‘(9) describe the commitment of the partnership

10 to continue the activities assisted under this subpart

11 without grant funds provided under this subpart; and

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

13 and include parents in the reform process.

14 ‘‘Subpart 3—General Provisions

15 ‘‘SEC. 231. ACCOUNTABILITY AND EVALUATION.

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

17 ‘‘(1) ACCOUNTABILITY REPORT.—A State that re18 ceives a grant under subpart 1 shall submit an an19 nual accountability report to the Secretary, the Com20 mittee on Labor and Human Resources of the Senate,

21 and the Committee on Education and the Workforce

22 of the House of Representatives. Such report shall in23 clude a description of the degree to which the State,

24 in using funds provided under subpart 1, has made

25 substantial progress in meeting the following goals:
58

HR 6 EAS

1 ‘‘(A) STUDENT ACHIEVEMENT.—Increasing

2 student achievement for all students, as measured

3 by increased graduation rates, decreased dropout

4 rates, or higher scores on local, State or other as5 sessments.

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

7 State academic standards required to enter the

8 teaching profession, including, where appro9 priate, incentives to incorporate the requirement

10 of an academic major in the subject, or related

11 discipline, in which the teacher plans to teach.

12 ‘‘(C) INITIAL CERTIFICATION OR LICEN13 SURE.—Increasing success in the passage rate

14 for initial State teacher certification or licen15 sure, or increasing numbers of highly qualified

16 individuals being certified or licensed as teachers

17 through alternative programs.

18 ‘‘(D) CORE ACADEMIC SUBJECTS.—(i) In19 creasing the percentage of secondary school class20 es taught in core academic subject areas by

21 teachers—

22 ‘‘(I) with academic majors in those

23 areas or in a related field;
59

HR 6 EAS

1 ‘‘(II) who can demonstrate a high level

2 of competence through rigorous academic

3 subject area tests; or

4 ‘‘(III) who can demonstrate high levels

5 of competence through experience in rel6 evant content areas.

7 ‘‘(ii) Increasing the percentage of elemen8 tary school classes taught by teachers—

9 ‘‘(I) with academic majors in the arts

10 and sciences; or

11 ‘‘(II) who can demonstrate high levels

12 of competence through experience in rel13 evant content areas.

14 ‘‘(E) DECREASING SHORTAGES FOR PRO15 FESSIONAL DEVELOPMENT.—Decreasing short16 ages of qualified teachers in poor urban and

17 rural areas.

18 ‘‘(F) INCREASING OPPORTUNITIES.—In19 creasing opportunities for enhanced and ongoing

20 professional development that improves the aca21 demic content knowledge of teachers in the sub22 ject areas in which the teachers are certified to

23 teach or in which the teachers are working to24 ward certification to teach.
60

HR 6 EAS

1 ‘‘(G) TECHNOLOGY INTEGRATION.—Increas2 ing the number of teachers prepared to integrate

3 technology in the classroom.

4 ‘‘(2) TEACHER QUALIFICATIONS PROVIDED TO

5 PARENT UPON REQUEST.—Any local educational

6 agency that benefits from the activities assisted under

7 subpart 1 shall make available, upon request and in

8 an understandable and uniform format, to any par9 ent of a student attending any school served by the

10 local educational agency, information regarding the

11 qualifications of the student’s classroom teacher with

12 regard to the subject matter in which the teacher pro13 vides instruction. The local educational agency shall

14 inform parents that the parents are entitled to receive

15 the information upon request.

16 ‘‘(b) TEACHER TRAINING PARTNERSHIP EVALUATION

17 PLAN.—Each teacher training partnership receiving a

18 grant under subpart 2 shall establish an evaluation plan

19 that includes strong performance objectives established in

20 negotiation with the Secretary at the time of the grant

21 award. The plan shall include objectives and measures for—

22 ‘‘(1) increased student achievement for all stu23 dents as measured by increased graduation rates, de24 creased dropout rates, or higher scores on local, State,

25 or other assessments for a year compared to student
61

HR 6 EAS

1 achievement as determined by the rates or scores, as

2 the case may be, for the year prior to the year for

3 which a grant under this part is received;

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

5 years of a teacher’s career;

6 ‘‘(3) increased success in the passage rate for ini7 tial State certification or licensure of teachers;

8 ‘‘(4) increased percentages of secondary school

9 classes taught in core academic subject areas by teach10 ers—

11 ‘‘(A) with academic majors in those areas

12 or in a related field;

13 ‘‘(B) who can demonstrate a high level of

14 competence through rigorous academic subject

15 area tests; and

16 ‘‘(C) increasing the percentage of elemen17 tary school classes taught by teachers with aca18 demic majors in the arts and sciences;

19 ‘‘(5) increased integration of technology in teach20 er preparation and in classroom instruction;

21 ‘‘(6) restructuring or change of methodology

22 courses to reflect best practices learned from elemen23 tary schools, secondary schools or other entities;

24 ‘‘(7) increased dissemination of information

25 about effective teaching strategies and practices; and
62

HR 6 EAS

1 ‘‘(8) other effects of increased integration among

2 members of the partnership.

3 ‘‘SEC. 232. REVOCATION OF GRANT.

4 ‘‘Each State or teacher training partnership receiving

5 a grant under this part shall report annually on progress

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

7 objectives and measures described in section 231. If the Sec8 retary, after consultation with the peer review panel de9 scribed in section 213(b) determines that the State or part10 nership is not making substantial progress in meeting the

11 purposes, goals, objectives and measures, as appropriate, by

12 the end of the second year of the grant, the grant shall not

13 be continued for the third year of the grant.

14 ‘‘SEC. 233. EVALUATION AND DISSEMINATION.

15 ‘‘The Secretary shall evaluate the activities funded

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

17 Committee on Labor and Human Resources of the Senate

18 and the Committee on Education and the Workforce of the

19 House of Representatives. The Secretary shall broadly dis20 seminate successful practices developed by the States and

21 teacher training partnerships under this part, and shall

22 broadly disseminate information regarding such practices

23 so developed that were found to be ineffective.
63

HR 6 EAS

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

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

3 through the National Center for Education Statistics re4 garding the ways teachers are trained and the extent to

5 which teachers in the United States and other comparable

6 countries are teaching in areas other than the teachers’ field

7 of study or expertise. The study will examine specific fields

8 and will outline the nature and extent of the problem of

9 out-of-field teaching in the United States and in other coun10 tries that are considered comparable to the United States.

11 The study shall include, at a minimum, all the countries

12 that participated in the Third International Mathematics

13 and Science Study (TIMSS).

14 ‘‘(b) REPORT.—The Secretary shall report to Congress

15 regarding the results of the study described in subsection

16 (a).

17 ‘‘SEC. 235. ACCOUNTABILITY FOR PROGRAMS THAT PRE18 PARE TEACHERS.

19 ‘‘(a) INFORMATION COLLECTION AND PUBLICATION.—

20 ‘‘(1) DEFINITIONS.—

21 ‘‘(A) Within six months of the date of enact22 ment of the Higher Education Amendments of

23 1998, the Commissioner of the National Center

24 for Education Statistics, in consultation with

25 States and institutions of higher education, shall

26 develop key definitions and uniform methods of
64

HR 6 EAS

1 calculation for terms related to the performance

2 of elementary school and secondary school teach3 er preparation programs.

4 ‘‘(B) In complying with this section, the

5 Secretary and State shall ensure that fair and

6 equitable methods are used in reporting and that

7 they protect the privacy of individuals.

8 ‘‘(2) INFORMATION.—

9 ‘‘(A) STATE REPORT CARD ON THE QUALITY

10 OF TEACHER PREPARATION.—States that receive

11 funds under this Act shall provide to the Sec12 retary, within two years of enactment of the

13 Higher Education Amendments of 1998, and an14 nually thereafter, in a uniform and comprehen15 sible manner that conforms with the definitions

16 and methods established in subsection (a)(1), a

17 State report card on the quality of teacher prep18 aration, which shall include at least the follow19 ing:

20 ‘‘(i) A description of the teacher certifi21 cation and licensure assessments, and any

22 other certification and licensure require23 ments, used by each State.

24 ‘‘(ii) The standards and criteria that

25 prospective teachers must meet in order to
65

HR 6 EAS

1 attain initial teacher licensing or certifi2 cation and to be licensed to teach particular

3 subjects or in particular grades within the

4 State.

5 ‘‘(iii) A description of the extent to

6 which those assessments and requirements

7 are aligned with the State’s standards and

8 assessments for students.

9 ‘‘(iv) The percentage of teaching can10 didates who passed each of the assessments

11 used by the State for licensure and certifi12 cation, and the ‘cut score’ on each assess13 ment that determines whether a candidate

14 has passed that assessment.

15 ‘‘(v) The percentage of teaching can16 didates who passed each of the assessments

17 used by the State for licensure and certifi18 cation, disaggregated by the teacher prepa19 ration program in that State from which

20 the teacher candidate received his or her

21 most recent degree. States shall make these

22 data available widely and publicly.

23 ‘‘(vi) Information on the extent to

24 which teachers in the State have been given

25 waivers of State licensure or certification
66

HR 6 EAS

1 requirements, including the proportion of

2 such teachers distributed across high and

3 low poverty districts and across subject

4 areas.

5 ‘‘(vii) A description of each State’s al6 ternative routes to teacher certification, if

7 any, and the percentage of teachers certified

8 through alternative certification routes who

9 pass State licensing assessments.

10 ‘‘(viii) For each State, a description of

11 proposed criteria for assessing the perform12 ance of teacher preparation programs with13 in institutions of higher education, includ14 ing but not limited to indicators of teacher

15 candidate knowledge and skills as described

16 in subsection (b)(1)(A).

17 ‘‘(B) REPORT OF THE SECRETARY ON THE

18 QUALITY OF TEACHER PREPARATION.—The Sec19 retary shall publish annually and make widely

20 available a report card on teacher qualifications

21 and preparation in the United States, including

22 all the information reported in subparagraphs

23 (A) (i)–(viii), beginning three years after enact24 ment of the Higher Education Amendments of

25 1998. The Secretary shall report to Congress a
67

HR 6 EAS

1 comparison of States’ efforts to improve teaching

2 quality. The Secretary shall also report on the

3 national mean and median scores on any stand4 ardized test that is used in more than one State

5 for teacher licensure or certification. In the case

6 of teacher preparation programs with fewer than

7 10 graduates taking any single initial teacher

8 certification assessment during any administra9 tion of such assessment, the Secretary shall col10 lect and publish information with respect to an

11 average pass rate on State certification or licen12 sure assessments taken over 3 years.

13 ‘‘(C) INSTITUTIONAL REPORT CARDS ON

14 THE QUALITY OF TEACHER PREPARATION.—Each

15 institution of higher education that conducts a

16 teacher preparation program that enrolls stu17 dents receiving Federal assistance shall, not later

18 than two years after the enactment of the Higher

19 Education Amendments of 1998, and annually

20 thereafter, report, in a uniform and comprehen21 sible manner, the following information to the

22 State, and the general public, including through

23 publications such as course catalogues and pro24 motional materials sent to potential applicants,

25 high school guidance counselors, and prospective
68

HR 6 EAS

1 employers of its program graduates, in a manner

2 that conforms with the definitions and methods

3 established under subsection (a)(1):

4 ‘‘(i) For the most recent year for which

5 the information is available, the passing

6 rate of its graduates on the teacher certifi7 cation and licensure assessments of the

8 State in which it is located, but only for

9 those students who took those assessments

10 within three years of completing the pro11 gram. A comparison of the program’s pass

12 rate with the State average pass rate shall

13 be included as well. In the case of teacher

14 preparation programs with fewer than 10

15 graduates taking any single initial teacher

16 certification assessment during any admin17 istration of such assessment, the institution

18 shall collect and publish information with

19 respect to an average pass rate on State cer20 tification or licensure assessments taken

21 over 3 years.

22 ‘‘(ii) The number of students in the

23 program, the average number of hours of su24 pervised practice teaching required for those
69

HR 6 EAS

1 in the program, and the faculty-student

2 ratio in supervised practice teaching.

3 ‘‘(iii) In States that approve or ac4 credit teacher education programs, a state5 ment of whether the institution’s program is

6 so approved or accredited.

7 ‘‘(iv) Whether the program has been

8 designated as low-performing by the State

9 under subsection (b)(1)(B).

10 In addition to the actions authorized in section

11 487(c), the Secretary may impose a fine not to

12 exceed $25,000 on a teacher preparation pro13 gram for failure to provide the information de14 scribed in subsection (a)(2)(B) in a timely or ac15 curate manner.

16 ‘‘(b) ACCOUNTABILITY.—

17 ‘‘(1) States receiving funding under this Act,

18 shall develop and implement, no later than three

19 years after enactment of the Higher Education

20 Amendments of 1998, the following teacher prepara21 tion program accountability measures and publish the

22 measures publicly and widely:

23 ‘‘(A) A description of State criteria for

24 identifying low-performing teacher preparation

25 programs which may include a baseline pass
70

HR 6 EAS

1 rate on State licensing assessments and other in2 dicators of teacher candidate knowledge and

3 skill. States that do not employ assessments as

4 part of their criteria for licensing or certification

5 are not required to meet this criterion until such

6 time as the State initiates the use of such assess7 ments.

8 ‘‘(B) Procedures for identifying low-per9 forming teacher preparation programs based on

10 the criteria developed by the State as required by

11 subsection (b)(1)(A), and publish a list of those

12 programs.

13 ‘‘(C) States that have, prior to enactment,

14 already conformed with subsections (b)(1) (A)–

15 (B), need not change their procedures, unless the

16 State chooses to do so.

17 ‘‘(2) Not later than four years after enactment of

18 the Higher Education Amendments of 1998, any

19 teacher preparation programs for which the State has

20 withdrawn its approval or terminated its financial

21 support due to the low performance of its teacher

22 preparation program based on procedures described

23 in subsection (b)(1)—
71

HR 6 EAS

1 ‘‘(A) shall be ineligible for any funding for

2 professional development activities awarded by

3 the Department of Education; and

4 ‘‘(B) shall not be permitted to accept or en5 roll any student that receives aid under title IV

6 of this Act in its teacher preparation program.

7 ‘‘SEC. 236. AUTHORIZATION OF APPROPRIATIONS.

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

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

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

11 which—

12 ‘‘(1) 50 percent shall be available for each fiscal

13 year to carry out subpart 1; and

14 ‘‘(2) 50 percent shall be available for each fiscal

15 year to carry out subpart 2.

16 ‘‘PART B—RECRUITING NEW TEACHERS FOR

17 UNDERSERVED AREAS

18 ‘‘SEC. 251. STATEMENT OF PURPOSE.

19 ‘‘It is the purpose of this part to—

20 ‘‘(1) provide scholarships and, as necessary, sup21 port services for students with high potential to be22 come effective teachers, particularly minority stu23 dents;

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

25 teachers nationally; and
72

HR 6 EAS

1 ‘‘(3) increase the ability of schools in under2 served areas to recruit a qualified teaching staff.

3 ‘‘SEC. 252. DEFINITIONS.

4 ‘‘In this part—

5 ‘‘(1) ELIGIBLE PARTNERSHIP.—

6 ‘‘(A) IN GENERAL.—The term ‘eligible part7 nership’ means a partnership consisting of—

8 ‘‘(i) an institution of higher education

9 that awards baccalaureate degrees and pre10 pares teachers for their initial entry into

11 the teaching profession; and

12 ‘‘(ii) one or more local educational

13 agencies that serve underserved areas.

14 ‘‘(B) ADDITIONAL PARTNERS.—Such a

15 partnership may also include—

16 ‘‘(i) 2-year institutions of higher edu17 cation that operate teacher preparation pro18 grams and maintain articulation agree19 ments, with the institutions of higher edu20 cation that award baccalaureate degrees for

21 the transfer of credits in teacher prepara22 tion;

23 ‘‘(ii) State agencies that have respon24 sibility for policies related to teacher prepa-
73

HR 6 EAS

1 ration and teacher certification or licensure;

2 and

3 ‘‘(iii) other public and private, non4 profit agencies and organizations that serve,

5 or are located in, communities served by the

6 local educational agencies in the partner7 ship, and that have an interest in teacher

8 recruitment, preparation, and induction.

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

10 services’ means—

11 ‘‘(A) academic advice and counseling;

12 ‘‘(B) tutorial services;

13 ‘‘(C) mentoring; and

14 ‘‘(D) child care and transportation, if fund15 ing for those services cannot be arranged from

16 other sources.

17 ‘‘(3) UNDERSERVED AREA.—The term ‘under18 served area’ means—

19 ‘‘(A) the area served by the 3 local edu20 cational agencies in the State that have the high21 est numbers of children, ages 5 through 17, from

22 families below the poverty level (based on data

23 satisfactory to the Secretary); and

24 ‘‘(B) the area served by any other local edu25 cational agency in which the percentage of such
74

HR 6 EAS

1 children is at least 20 percent, or the number of

2 such children is at least 10,000.

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

4 ‘‘(a) GRANTS AUTHORIZED.—

5 ‘‘(1) GRANTS.—

6 ‘‘(A) IN GENERAL.—From amounts appro7 priated under section 262 the Secretary shall

8 award grants, on a competitive basis, to eligible

9 partnerships to enable the eligible partnerships

10 to pay the Federal share of the cost of carrying

11 out the activities described in section 255.

12 ‘‘(B) DURATION.—Each grant awarded

13 under subparagraph (A) shall be awarded for a

14 period not to exceed 5 years.

15 ‘‘(2) CONTINUING ELIGIBILITY; REVIEW OF

16 PROGRESS.—The Secretary shall—

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

18 the second and succeeding years of a grant

19 awarded under this part, only after determining

20 that the eligible partnership is making satisfac21 tory progress in carrying out the activities under

22 the grant; and

23 ‘‘(B) conduct an intensive review of the eli24 gible partnerships’s progress under the grant,

25 with the assistance of outside experts, before
75

HR 6 EAS

1 making grant payments for the fourth year of

2 the grant.

3 ‘‘(3) MAXIMUM NUMBER.—No eligible partner4 ship may receive more than 2 grants under this sub5 section.

6 ‘‘(b) MATCHING REQUIREMENT.—

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

8 cost of activities carried out under a grant made

9 under subsection (a) shall not exceed—

10 ‘‘(A) 70 percent of the cost in the first year

11 of the grant;

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

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

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

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

16 succeeding year (including each year of the sec17 ond grant, if any).

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

19 share of activities carried out with a grant under sub20 section (a) may be provided in cash or in kind, fairly

21 evaluated, and may be obtained from any non-Fed22 eral public or private source.

23 ‘‘(c) PLANNING GRANTS.—
76

HR 6 EAS

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

2 planning grants to eligible partnerships that are not

3 ready to implement programs under subsection (a).

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

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

6 in addition to the period of any grant under sub7 section (a).

8 ‘‘(3) REQUIREMENT.—Any recipient of a plan9 ning grant under this subsection that wishes to re10 ceive a grant under subsection (a)(1) shall separately

11 apply for a grant under that subsection.

12 ‘‘SEC. 254. GRANT APPLICATIONS.

13 ‘‘(a) APPLICATIONS REQUIRED.—Any eligible partner14 ship desiring to receive a grant under this part shall submit

15 an application to the Secretary at such time, in such form,

16 and containing such information as the Secretary may re17 quire.

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

19 a grant under section 253(a) shall include—

20 ‘‘(1) a designation of the institution or agency,

21 within the eligible partnership, that will serve as the

22 fiscal agent for the grant;

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

24 preparation program of the institution of higher edu25 cation participating in the eligible partnership and
77

HR 6 EAS

1 how the eligible partnership will ensure, through im2 provements in the eligible partnership’s teacher prep3 aration practices or other appropriate strategies, that

4 scholarship recipients will receive high-quality prepa5 ration;

6 ‘‘(3) a description of the assessment the members

7 of the eligible partnership have undertaken—

8 ‘‘(A) to determine—

9 ‘‘(i) the most critical needs of the local

10 educational agencies, particularly the needs

11 of schools in high-poverty areas, for new

12 teachers (which may include teachers in

13 particular subject areas or at certain grade

14 levels); and

15 ‘‘(ii) how the project carried out under

16 the grant will address those needs; and

17 ‘‘(B) that reflects the input of all significant

18 entities in the community (including organiza19 tions representing teachers and parents) that

20 have an interest in teacher recruitment, prepara21 tion, and induction;

22 ‘‘(4) a description of the project the eligible part23 nership will carry out with the grant, including in24 formation regarding—
78

HR 6 EAS

1 ‘‘(A) the recruitment and outreach efforts

2 the eligible partnership will undertake to pub3 licize the availability of scholarships and other

4 assistance under the program;

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

6 that the eligible partnership will serve under the

7 program, which may include education para8 professionals seeking to achieve full teacher cer9 tification or licensure; teachers whom the partner

10 local educational agencies have hired under

11 emergency certification or licensure procedures;

12 or former military personnel, mid-career profes13 sionals, or AmeriCorps or Peace Corps volun14 teers, who desire to enter teaching; and

15 ‘‘(ii) the criteria that the eligible partner16 ship will use in selecting the students, including

17 criteria to determine whether individuals have

18 the capacity to benefit from the program, com19 plete teacher certification requirements, and be20 come effective teachers;

21 ‘‘(C) the activities the eligible partnership

22 will carry out under the grant, including a de23 scription of, and justification for, any support

24 services the institution of higher education par-
79

HR 6 EAS

1 ticipating in the eligible partnership will offer to

2 participating students;

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

4 scholarships the institution will provide to stu5 dents; and

6 ‘‘(E) the procedures the institution will es7 tablish for entering into, and enforcing, agree8 ments with scholarship recipients regarding the

9 recipients’ fulfillment of the service commitment

10 described in section 259;

11 ‘‘(5) a description of how the institution will use

12 funds provided under the grant only—

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

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

15 teachers;

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

17 teacher preparation programs; or

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

19 preparation programs that the grant will

20 support; or

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

22 who are minority individuals, with high poten23 tial to be effective teachers;

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

25 local educational agencies participating in the part-
80

HR 6 EAS

1 nership, to hire qualified scholarship recipients in the

2 schools served by the agencies and in the subject areas

3 or grade levels for which the scholarship recipients

4 will be trained, and a description of the actions the

5 participating institution of higher education, the par6 ticipating local educational agencies, and the other

7 partners will take to facilitate the successful transi8 tion of the recipients into teaching; and

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

10 plan for institutionalizing the activities the partner11 ship is carrying out under this part, so that the ac12 tivities will continue once Federal funding ceases.

13 ‘‘SEC. 255. USES OF FUNDS.

14 ‘‘(a) IN GENERAL.—Each eligible partnership receiv15 ing a grant under section 523(a) shall use the grant funds

16 for the following:

17 ‘‘(1) SCHOLARSHIPS.—Scholarships to help stu18 dents pay the costs of tuition, room, board, and other

19 expenses of completing a teacher preparation pro20 gram.

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

22 needed to enable scholarship recipients to complete

23 postsecondary education programs.
81

HR 6 EAS

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

2 provided to former scholarship recipients during the

3 recipients’ first 3 years of teaching.

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

5 educational agencies, if needed to enable the agencies

6 to permit paraprofessional staff to participate in

7 teacher preparation programs (such as the cost of re8 lease time for the staff).

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

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

11 costs of additional courses taken by former scholar12 ship recipients during the recipients’ initial 3 years

13 of teaching.

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

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

16 costs of planning for the implementation of a grant under

17 section 253(a).

18 ‘‘SEC. 256. SELECTION OF APPLICANTS.

19 ‘‘(a) PEER REVIEW.—The Secretary, using a peer re20 view process, shall select eligible partnerships to receive

21 funding under this part on the basis of—

22 ‘‘(1) the quality of the teacher preparation pro23 gram offered by the institution participating in the

24 partnership;
82

HR 6 EAS

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

2 under the application; and

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

4 the grant successfully.

5 ‘‘(b) CRITERIA.—

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

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

8 that—

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

10 carry out a variety of approaches to preparing

11 new teachers; and

12 ‘‘(B) there is an equitable geographic dis13 tribution of the grants.

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

15 complying with paragraph (1), the Secretary shall

16 give special consideration to—

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

18 the preparation of increased numbers of individ19 uals with high potential for effective teaching

20 who are minority individuals;

21 ‘‘(B) applications from partnerships that

22 have as members of the partnerships historically

23 Black colleges and universities, Hispanic-serving

24 institutions, and Tribal Colleges and Univer25 sities; or
83

HR 6 EAS

1 ‘‘(C) applications from partnerships that

2 propose to carry out programs that use innova3 tive means, including technology, to recruit for

4 participation in the activities assisted under the

5 programs students who are Native Hawaiian,

6 Alaska Native, or Native American Pacific Is7 lander.

8 ‘‘(c) SECOND FIVE-YEAR GRANTS.—In selecting eligi9 ble partnerships to receive second year grant payments

10 under this part, the Secretary shall give a preference to eli11 gible partnerships whose projects have resulted in—

12 ‘‘(1) the placement and retention of a substantial

13 number of high-quality graduates in teaching posi14 tions in underserved, high-poverty schools;

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

16 the teacher preparation needs of high-poverty urban

17 and rural areas; and

18 ‘‘(3) effective partnerships with elementary

19 schools and secondary schools that are supporting im20 provements 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—
84

HR 6 EAS

1 ‘‘(1) for more than 5 years of postsecondary edu2 cation; 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 in8 stitution 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 indi12 vidual’s receipt of other forms of Federal student fi13 nancial 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 stu17 dent’s eligibility for grant, loan, or work assistance

18 under title IV.

19 ‘‘SEC. 258. SCHOLARSHIP CONDITIONS.

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

21 this part shall continue to receive the scholarship assistance

22 only as long as the recipient is—

23 ‘‘(1) enrolled as a full-time student and pursuing

24 a course of study leading to teacher certification, un25 less the recipient is working in a public school (as a
85

HR 6 EAS

1 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 pro18 gram, teach full-time for at least 5 years in a high-poverty

19 school in an underserved geographic area or repay the

20 amount of the scholarship, under the terms and conditions

21 established by the Secretary.

22 ‘‘(b) REGULATIONS. The Secretary shall prescribe regu23 lations relating to the requirements of subsection (a), in24 cluding any provisions for waiver of those requirements.
86

HR 6 EAS

1 ‘‘SEC. 260. EVALUATION.

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

3 program carried out under this part, which shall asses such

4 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 successful

10 in completing teacher preparation programs, becom11 ing fully certified teachers, and obtaining teaching

12 positions in underserved areas, and whether the re13 cipients 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 teach21 er preparation programs conducted by institutions of

22 higher education participating in the eligible partner23 ship and on the institutions’ relationships with their

24 partner local educational agencies and other members

25 of the partnership; and
87

HR 6 EAS

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 per5 formance 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, 354,

25 356, 357, 358, and 360 (20 U.S.C. 1066, 1067, 1068,
88

HR 6 EAS

1 1069, 1069b, 1069c, 1069d, and 1069f) as sections

2 391, 392, 393, 394, 395, 396, 397, and 398, respec3 tively;

4 (3) by transferring part B of title VII (20 U.S.C.

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

6 (20 U.S.C. 1065 et seq.), and redesignating such part

7 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 seq.)

13 to title III to follow part D of title III (as redesig14 nated by paragraph (3)), and redesignating such sub15 part 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 1024

21 (20 U.S.C. 1135b and 1135b–3), and sections 1041,

22 1042, 1043, 1044, 1046, and 1047 (20 U.S.C. 1135d,

23 1135d–1, 1135d–2, 1135d–3, 1135d–5, and 1135d–6)

24 as sections 351 through 354, and sections 361, 362,

25 363, 364, 365, and 366, respectively; and
89

HR 6 EAS

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

2 paragraph (7)) (20 U.S.C. 1135d–6).

3 (b) CONFORMING AMENDMENT.—Section 361 (as re4 designated by subsection (a)(7)) (20 U.S.C. 1135d) is

5 amended—

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

7 the semicolon;

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

9 inserting a period; and

10 (3) by striking paragraph (3).

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

12 et seq.) is amended—

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

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

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

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

17 ‘‘352(b)’’ and inserting ‘‘392(b)’’; and

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

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

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

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

22 (4) in section 342 (as redesignated by subsection

23 (a)(4)) (20 U.S.C. 1132c–1)—

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

25 and inserting ‘‘343(b)’’;
90

HR 6 EAS

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

2 and inserting ‘‘343’’;

3 (C) in the matter preceding subparagraph

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

5 inserting ‘‘344(b)’’;

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

7 and inserting ‘‘345(1)’’; and

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

9 and inserting ‘‘347’’;

10 (5) in section 343 (as redesignated by subsection

11 (a)(4)) (20 U.S.C. 1132c–2)—

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

13 inserting ‘‘344’’; and

14 (B) in subsection (b)—

15 (i) in the matter preceding paragraph

16 (1), by striking ‘‘725(1) and 726’’ and in17 serting ‘‘345(1) and 346’’;

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

19 ‘‘724’’ and inserting ‘‘344’’; and

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

21 ‘‘723(c)(1)’’ and inserting ‘‘343(c)(1)’’;

22 (6) in section 345(2) (as redesignated by sub23 section (a)(4)) (20 U.S.C. 1132c–4(2)), by striking

24 ‘‘723’’ and inserting ‘‘343’’;
91

HR 6 EAS

1 (7) in section 348 (as redesignated by subsection

2 (a)(4)) (20 U.S.C. 1132c–7), by striking ‘‘725(1)’’

3 and inserting ‘‘345(1)’’;

4 (8) in section 353(a) (as redesignated by sub5 section (a)(7)) (20 U.S.C. 1135b–2(a))—

6 (A) in paragraph (1), by striking ‘‘1046(6)’’

7 and inserting ‘‘365(6)’’;

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

9 ‘‘1046(7)’’ and inserting ‘‘365(7)’’;

10 (C) in paragraph (3), by striking ‘‘1046(8)’’

11 and inserting ‘‘365(8)’’; and

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

13 ‘‘1046(9)’’ and inserting ‘‘365(9)’’;

14 (9) in section 361(1) (as redesignated by sub15 section (a)(7)) (20 U.S.C. 1135d(1)), by striking

16 ‘‘1046(3)’’ and inserting ‘‘365(3)’’;

17 (10) in section 362(a) (as redesignated by sub18 section (a)(7)) (20 U.S.C. 1135d–1(a))—

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

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

21 (B) in paragraph (1), by striking ‘‘1021(b)’’

22 and inserting ‘‘351(b)’’; and

23 (11) in section 391(b)(6) (as redesignated by sub24 section (a)(2)), by striking ‘‘357’’ and inserting

25 ‘‘396’’.
92

HR 6 EAS

1 SEC. 302. FINDINGS.

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

3 (1) by redesignating paragraphs (3) through (7)

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

5 (2) by inserting after paragraph (2) the follow6 ing:

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

8 high-quality education for all, institutions of higher

9 education should improve their technological capacity

10 and make effective use of technology;’’.

11 SEC. 303. STRENGTHENING INSTITUTIONS.

12 (a) GRANTS.—Section 311 (20 U.S.C. 1057) is amend13 ed—

14 (1) in subsection (b)(3)(D), by inserting ‘‘, in15 cluding high technology equipment,’’ after ‘‘equip16 ment’’; and

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

18 ‘‘(c) ENDOWMENT FUND.—

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

20 use not more than 20 percent of the grant funds pro21 vided under this part to establish or increase an en22 dowment fund at such institution.

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

24 eligible to use grant funds in accordance with para25 graph (1), the eligible institution shall provide match26 ing funds, in an amount equal to the Federal funds
93

HR 6 EAS

1 used in accordance with paragraph (1), for the estab2 lishment or increase of the endowment fund.

3 ‘‘(3) COMPARABILITY.—The provisions of part C,

4 regarding the establishment or increase of an endow5 ment fund, that the Secretary determines are not in6 consistent with this subsection, shall apply to funds

7 used under paragraph (1).’’.

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

9 1059) is amended by adding at the end the following:

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

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

12 shall not be eligible to receive an additional grant under

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

14 grant period terminates.

15 (c) AMERICAN INDIAN TRIBALLY CONTROLLED COL16 LEGES AND UNIVERSITIES.—Section 316 (20 U.S.C. 1059c)

17 is amended to read as follows:

18 ‘‘SEC. 316. AMERICAN INDIAN TRIBALLY CONTROLLED COL19 LEGES AND UNIVERSITIES.

20 ‘‘(a) PROGRAM AUTHORIZED.—The Secretary shall

21 provide grants and related assistance to American Indian

22 Tribal Colleges and Universities to enable such institutions

23 to improve and expand their capacity to serve Indian stu24 dents.

25 ‘‘(b) DEFINITIONS.—In this section:
94

HR 6 EAS

1 ‘‘(1) INDIAN.—The term ‘Indian’ has the mean2 ing given the term in section 2 of the Tribally Con3 trolled College or University Assistance Act of 1978.

4 ‘‘(2) INDIAN TRIBE.—The term ‘Indian tribe’ has

5 the meaning given the term in section 2 of the Trib6 ally Controlled College or University Assistance Act of

7 1978.

8 ‘‘(3) TRIBAL COLLEGE OR UNIVERSITY.—The

9 term ‘Tribal College or University’ has the meaning

10 give the term ‘tribally controlled college or university’

11 in section 2 of the Tribally Controlled College or Uni12 versity Assistance Act of 1978, and includes an insti13 tution listed in the Equity in Educational Land

14 Grant Status Act of 1994.

15 ‘‘(4) INSTITUTION OF HIGHER EDUCATION.—The

16 term ‘institution of higher education’ means an insti17 tution of higher education as defined in section

18 1201(a), except that paragraph (2) of such section

19 shall not apply.

20 ‘‘(c) AUTHORIZED ACTIVITIES.—

21 ‘‘(1) IN GENERAL.—Grants awarded under this

22 section shall be used by Tribal Colleges or Universities

23 to assist such institutions to plan, develop, undertake,

24 and carry out activities to improve and expand such

25 institutions’ capacity to serve Indian students.
95

HR 6 EAS

1 ‘‘(2) EXAMPLES OF AUTHORIZED ACTIVITIES.—

2 The activities described in paragraph (1) may in3 clude—

4 ‘‘(A) purchase, rental, or lease of scientific

5 or laboratory equipment for educational pur6 poses, including instructional and research pur7 poses;

8 ‘‘(B) construction, maintenance, renovation,

9 and improvement in classrooms, libraries, lab10 oratories, and other instructional facilities, in11 cluding purchase or rental of telecommunications

12 technology equipment or services;

13 ‘‘(C) support of faculty exchanges, faculty

14 development, and faculty fellowships to assist in

15 attaining advanced degrees in the faculty’s field

16 of instruction;

17 ‘‘(D) academic instruction in disciplines in

18 which American Indians are underrepresented;

19 ‘‘(E) purchase of library books, periodicals,

20 and other educational materials, including tele21 communications program material;

22 ‘‘(F) tutoring, counseling, and student serv23 ice programs designed to improve academic suc24 cess;
96

HR 6 EAS

1 ‘‘(G) funds management, administrative

2 management, and acquisition of equipment for

3 use in strengthening funds management;

4 ‘‘(H) joint use of facilities, such as labora5 tories and libraries;

6 ‘‘(I) establishing or improving a develop7 ment office to strengthen or improve contribu8 tions from alumni and the private sector;

9 ‘‘(J) establishing or enhancing a program of

10 teacher education designed to qualify students to

11 teach in elementary schools or secondary schools,

12 with a particular emphasis on teaching Amer13 ican Indian children and youth, that shall in14 clude, as part of such program, preparation for

15 teacher certification;

16 ‘‘(K) establishing community outreach pro17 grams that encourage American Indian elemen18 tary school and secondary school students to de19 velop the academic skills and the interest to pur20 sue postsecondary education;

21 ‘‘(L) other activities proposed in the appli22 cation submitted pursuant to subsection (d)

23 that—
97

HR 6 EAS

1 ‘‘(i) contribute to carrying out the ac2 tivities described in subparagraphs (A)

3 through (K); and

4 ‘‘(ii) are approved by the Secretary as

5 part of the review and acceptance of such

6 application.

7 ‘‘(3) ENDOWMENT FUND.—

8 ‘‘(A) IN GENERAL.—A Tribal College or

9 University may use not more than 20 percent of

10 the grant funds provided under this section to es11 tablish or increase an endowment fund at the in12 stitution.

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

14 to be eligible to use grant funds in accordance

15 with subparagraph (A), the Tribal College or

16 University shall provide matching funds, in an

17 amount equal to the Federal funds used in ac18 cordance with subparagraph (A), for the estab19 lishment or increase of the endowment fund.

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

21 part C regarding the establishment or increase of

22 an endowment fund, that the Secretary deter23 mines are not inconsistent with this paragraph,

24 shall apply to funds used under subparagraph

25 (A).
98

HR 6 EAS

1 ‘‘(d) APPLICATION PROCESS.—

2 ‘‘(1) INSTITUTIONAL ELIGIBILITY.—To be eligible

3 to receive assistance under this section, a Tribal Col4 lege or University shall be an institution that—

5 ‘‘(A) is an eligible institution under section

6 312(b);

7 ‘‘(B) is eligible to receive assistance under

8 the Tribally Controlled College or University As9 sistance Act of 1978; or

10 ‘‘(C) is eligible to receive funds under the

11 Equity in Educational Land Grant Status Act

12 of 1994.

13 ‘‘(2) APPLICATION.—Any Tribal College or Uni14 versity desiring to receive assistance under this sec15 tion shall submit an application to the Secretary at

16 such time, and in such manner, as the Secretary may

17 by regulation reasonably require. Each such applica18 tion shall include—

19 ‘‘(A) a 5-year plan for improving the assist20 ance provided by the Tribal College or Univer21 sity to Indian students, increasing the rates at

22 which Indian secondary school students enroll in

23 higher education, and increasing overall post24 secondary retention rates for Indian students;

25 and
99

HR 6 EAS

1 ‘‘(B) such enrollment data and other infor2 mation and assurances as the Secretary may re3 quire to demonstrate compliance with subpara4 graph (A) or (B) of paragraph (1).

5 ‘‘(3) SPECIAL RULE.—For the purposes of this

6 part, no Tribal College or University that is eligible

7 for and receives funds under this section may concur8 rently receive other funds under this part or part B.’’.

9 (d) ALASKA NATIVE AND NATIVE HAWAIIAN-SERVING

10 INSTITUTIONS.—Part A of title III (20 U.S.C. 1057 et seq.)

11 is amended by adding at the end the following:

12 ‘‘SEC. 317. ALASKA NATIVE AND NATIVE HAWAIIAN-SERVING

13 INSTITUTIONS.

14 ‘‘(a) PROGRAM AUTHORIZED.—The Secretary shall

15 provide grants and related assistance to Alaska Native-serv16 ing institutions and Native Hawaiian-serving institutions

17 to enable such institutions to improve and expand their ca18 pacity to serve Alaska Natives and Native Hawaiians.

19 ‘‘(b) DEFINITIONS.—For the purpose of this section—

20 ‘‘(1) the term ‘Alaska Native’ has the meaning

21 given the term in section 9308 of the Elementary and

22 Secondary Education Act of 1965;

23 ‘‘(2) the term ‘Alaska Native-serving institution’

24 means an institution of higher education that—
100

HR 6 EAS

1 ‘‘(A) is an eligible institution under section

2 312(b); and

3 ‘‘(B) at the time of application, has an en4 rollment of undergraduate students that is at

5 least 20 percent Alaska Native students;

6 ‘‘(3) the term ‘Native Hawaiian’ has the mean7 ing given the term in section 9212 of the Elementary

8 and Secondary Education Act of 1965; and

9 ‘‘(4) the term ‘Native Hawaiian-serving institu10 tion’ means an institution of higher education

11 which—

12 ‘‘(A) is an eligible institution under section

13 312(b); and

14 ‘‘(B) at the time of application, has an en15 rollment of undergraduate students that is at

16 least 10 percent Native Hawaiian students.

17 ‘‘(c) AUTHORIZED ACTIVITIES.—

18 ‘‘(1) TYPES OF ACTIVITIES AUTHORIZED.—

19 Grants awarded under this section shall be used by

20 Alaska Native-serving institutions and Native Ha21 waiian-serving institutions to assist such institutions

22 to plan, develop, undertake, and carry out programs.

23 ‘‘(2) EXAMPLES OF AUTHORIZED ACTIVITIES.—

24 Such programs may include—
101

HR 6 EAS

1 ‘‘(A) purchase, rental, or lease of scientific

2 or laboratory equipment for educational pur3 poses, including instructional and research pur4 poses;

5 ‘‘(B) renovation and improvement in class6 room, library, laboratory, and other instruc7 tional facilities;

8 ‘‘(C) support of faculty exchanges, and fac9 ulty development and faculty fellowships to as10 sist in attaining advanced degrees in their field

11 of instruction;

12 ‘‘(D) curriculum development and academic

13 instruction;

14 ‘‘(E) purchase of library books, periodicals,

15 microfilm, and other educational materials;

16 ‘‘(F) funds and administrative manage17 ment, and acquisition of equipment for use in

18 strengthening funds management;

19 ‘‘(G) joint use of facilities such as labora20 tories and libraries; and

21 ‘‘(H) academic tutoring and counseling pro22 grams and student support services.

23 ‘‘(d) APPLICATION PROCESS.—

24 ‘‘(1) INSTITUTIONAL ELIGIBILITY.—Each Alaska

25 Native-serving institution and Native Hawaiian-serv-
102

HR 6 EAS

1 ing institution desiring to receive assistance under

2 this section shall submit to the Secretary such enroll3 ment data as may be necessary to demonstrate that

4 it is an Alaska Native-serving institution or a Native

5 Hawaiian-serving institution as defined in subsection

6 (b), along with such other information and data as

7 the Secretary may by regulation require.

8 ‘‘(2) APPLICATIONS.—Any institution which is

9 determined by the Secretary to be an Alaska Native10 serving institution or a Native Hawaiian-serving in11 stitution may submit an application for assistance

12 under this section to the Secretary. Such application

13 shall include—

14 ‘‘(A) a 5-year plan for improving the assist15 ance provided by the Alaska Native-serving insti16 tution or the Native Hawaiian-serving institu17 tion to Alaska Native or Native Hawaiian stu18 dents; and

19 ‘‘(B) such other information and assurance

20 as the Secretary may require.

21 ‘‘(e) SPECIAL RULE.—For the purposes of this section,

22 no Alaska Native-serving institution or Native Hawaiian23 serving institution which is eligible for and receives funds

24 under this section may concurrently receive other funds

25 under this part or part B.’’.
103

HR 6 EAS

1 SEC. 304. STRENGTHENING HBCU’s.

2 (a) GRANTS.—Section 323 (20 U.S.C. 1062) is amend3 ed—

4 (1) by redesignating subsection (b) as subsection

5 (c); and

6 (2) by inserting after subsection (a) the follow7 ing:

8 ‘‘(b) ENDOWMENT FUND.—

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

10 more than 20 percent of the grant funds provided

11 under this part to establish or increase an endowment

12 fund at the institution.

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

14 eligible to use grant funds in accordance with para15 graph (1), the eligible institution shall provide match16 ing funds, in an amount equal to the Federal funds

17 used in accordance with paragraph (1), for the estab18 lishment or increase of the endowment fund.

19 ‘‘(3) COMPARABILITY.—The provisions of part C

20 regarding the establishment or increase of an endow21 ment fund, that the Secretary determines are not in22 consistent with this subsection, shall apply to funds

23 used under paragraph (1).’’.

24 (b) PROFESSIONAL OR GRADUATE INSTITUTIONS.—

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

26 (1) in subsection (a)—
104

HR 6 EAS

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

2 ‘‘$500,000’’ and inserting ‘‘$1,000,000’’; and

3 (B) by adding at the end of paragraph (2)

4 the following: ‘‘If a grant of less than $1,000,000

5 is made under this section, matching funds pro6 vided from non-Federal sources are not required.

7 If a grant equal to or in excess of $1,000,000 is

8 made under this section, matching funds pro9 vided from non-Federal sources are required only

10 with respect to the amount of the grant that ex11 ceeds $1,000,000.’’; and

12 (2) in subsection (d)(2), by striking ‘‘$500,000’’

13 and inserting ‘‘$1,000,000’’.

14 (3) in subsection (e)(1)—

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

16 and any Tuskegee University qualified graduate

17 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 graduate

23 program’’ before the semicolon;
105

HR 6 EAS

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;

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

8 and any North Carolina Central University

9 qualified graduate program’’ before the semi10 colon;

11 (G) in subparagraph (O), by striking ‘‘and’’

12 after the semicolon.

13 (H) in subparagraph (P)—

14 (i) by inserting ‘‘University’’ after

15 ‘‘State’’; and

16 (ii) by striking the period and insert17 ing a semicolon; and

18 (I) by adding at the end the following:

19 ‘‘(Q) Norfolk State University qualified

20 graduate program; and

21 ‘‘(R) Tennessee State University qualified

22 graduate program.’’;

23 (4) in subsection (f)—

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

25 ‘‘$12,000,000’’ and inserting ‘‘$15,000,000’’;
106

HR 6 EAS

1 (B) in paragraph (2)—

2 (i) in the matter preceding subpara3 graph (A), by striking ‘‘$12,000,000’’ and

4 inserting ‘‘$15,000,000 but not in excess of

5 $28,000,000’’;

6 (ii) in subparagraph (A), by striking

7 ‘‘$500,000’’ and inserting ‘‘$1,000,000’’;

8 and

9 (iii) in subparagraph (B)—

10 (I) by striking ‘‘(A) through (P)’’

11 and inserting ‘‘(Q) and (R)’’; and

12 (II) by striking the period and in13 serting ‘‘; and

14 (C) by adding at the end the following:

15 ‘‘(3) any amount appropriated in excess of

16 $28,000,000 shall be available for the purpose of mak17 ing grants to institutions or programs described in

18 subparagraphs (A) through (R), on a competitive

19 basis and through a peer review process that takes

20 into consideration—

21 ‘‘(A) the ability of the institution to match

22 Federal funds with non-Federal funds;

23 ‘‘(B) the number of students enrolled in the

24 institution or program for which funds are

25 sought;
107

HR 6 EAS

1 ‘‘(C) the percentage of students enrolled in

2 the institution or program for which funds are

3 sought who are eligible for need-based student

4 aid;

5 ‘‘(D) the percentage of students enrolled in

6 the institution or program for which funds are

7 sought who complete their degrees within a rea8 sonable period of time as determined by the Sec9 retary; and

10 ‘‘(E) the quality of the proposal.’’; and

11 (5) by adding at the end the following:

12 ‘‘(g) SPECIAL RULE.—No institution or program de13 scribed in subsection (e)(1) that received a grant under this

14 section for fiscal year 1998 and that is eligible to receive

15 a grant under this section in a subsequent fiscal year shall

16 receive a grant under this section in any subsequent fiscal

17 year in an amount that is less than the grant amount re18 ceived for fiscal year 1996 or 1997, whichever is greater,

19 unless—

20 ‘‘(1) the amount appropriated for the subsequent

21 fiscal year is not sufficient to provide grants under

22 this section to all such institutions or programs; or

23 ‘‘(2) the institution or program cannot provide

24 sufficient matching funds to meet the requirements of

25 this section.’’.
108

HR 6 EAS

1 SEC. 305. ENDOWMENT CHALLENGE GRANTS.

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

3 is amended by striking subparagraphs (B) and (C) and in4 serting the following:

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

6 to an eligible institution in any fiscal year if the institu7 tion—

8 ‘‘(i) applies for a grant in an amount not ex9 ceeding $500,000; and

10 ‘‘(ii) has deposited in the eligible institution’s

11 endowment fund established under this section an

amount which is equal to 1 12 ⁄2 of the amount of such

13 grant.

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

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

16 eligible to receive an additional grant under subparagraph

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

18 terminates.’’.

19 SEC. 306. HBCU CAPITAL FINANCING.

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

21 section 301(a)(4)) (20 U.S.C. 1132c–1(5)) is amended—

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

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

24 (2) by inserting after subparagraph (A) the fol25 lowing:
109

HR 6 EAS

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

2 educational program, or a student center or stu3 dent union, except that not more than 5 percent

4 of the loan proceeds provided under this part

5 may be used for the facility, center or union if

6 the facility, center or union is owned, leased,

7 managed, or operated by a private business,

8 that, in return for such use, makes a payment to

9 the eligible institution;’’;

10 (3) by inserting after subparagraph (C) (as re11 designated by paragraph (1)) the following:

12 ‘‘(D) a maintenance, storage, or utility fa13 cility that is essential to the operation of a facil14 ity, a library, a dormitory, equipment, instru15 mentation, a fixture, real property or an interest

16 therein, described in this paragraph;

17 ‘‘(E) a facility designed to provide pri18 marily outpatient health care for students or fac19 ulty;’’; and

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

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

22 ‘‘(F)’’.

23 (b) FULL FAITH AND CREDIT.—Section 343 (as redes24 ignated by section 301(a)(4)) (20 U.S.C. 1132c–2) is

25 amended by adding at the end the following:
110

HR 6 EAS

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

2 Secretary may sell a qualified bond guaranteed under this

3 part to any party that offers terms that the Secretary deter4 mines are in the best interest of the eligible institution.’’.

5 SEC. 307. MINORITY SCIENCE AND ENGINEERING IMPROVE6 MENT PROGRAM.

7 (a) MINORITY SCIENCE IMPROVEMENT PROGRAM

8 FINDINGS.—Subpart 1 of part E of title III (as redesig9 nated by paragraphs (6) and (7) of section 301) (20 U.S.C.

10 1135b et seq.) is amended by inserting after the subpart

11 heading the following:

12 ‘‘SEC. 350. FINDINGS.

13 ‘‘Congress makes the following findings:

14 ‘‘(1) It is incumbent on the Federal Government

15 to support the technological and economic competi16 tiveness of the United States by improving and ex17 panding the scientific and technological capacity of

18 the United States. More and better prepared sci19 entists, engineers, and technical experts are needed to

20 improve and expand such capacity.

21 ‘‘(2) As the Nation’s population becomes more

22 diverse, it is important that the educational and

23 training needs of all Americans are met. Underrep24 resentation of minorities in science and technological

25 fields diminishes our Nation’s competitiveness by im-
111

HR 6 EAS

1 pairing the quantity of well prepared scientists, engi2 neers, and technical experts in these fields.

3 ‘‘(3) Despite significant limitations in resources,

4 minority institutions provide an important edu5 cational opportunity for minority students, particu6 larly in science and engineering fields. Aid to minor7 ity institutions is a good way to address the under8 representation of minorities in science and techno9 logical fields.

10 ‘‘(4) There is a strong Federal interest in im11 proving science and engineering programs at minor12 ity institutions as such programs lag behind in pro13 gram offerings and in student enrollment compared to

14 such programs at other institutions of higher edu15 cation.’’.

16 (b) DEFINITIONS.—Section 365(4) (as redesignated by

17 section 301(a)(7)) (20 U.S.C. 1135d–5(4)) is amended by

18 inserting ‘‘behavioral,’’ after ‘‘physical,’’.

19 SEC. 308. GENERAL PROVISIONS.

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

21 (as redesignated by section 301(a)(2)) (20 U.S.C. 1066(b))

22 is amended by inserting ‘‘, D or E’’ after ‘‘part C’’.

23 (b) APPLICATION REVIEW PROCESS.—Section 393 (as

24 redesignated by section 301(a)(2)) (20 U.S.C. 1068) is

25 amended by adding at the end the following:
112

HR 6 EAS

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

2 not apply to applications submitted under part D.’’.

3 (c) WAIVERS.—Paragraph (2) of section 395(b) (as re4 designated by section 301(a)(2)) (20 U.S.C. 1069b(b)) is

5 amended by striking ‘‘title IV, VII, or VIII’’ and inserting

6 ‘‘part D or title IV’’.

7 (d) AUTHORIZATION OF APPROPRIATIONS.—Section

8 398(a) (as redesignated by section 301(a)(2)) (20 U.S.C.

9 1069f) is amended—

10 (1) in paragraph (1)—

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

12 ‘‘1993’’ and inserting ‘‘1999’’;

13 (B) in subparagraph (B)—

14 (i) in clause (i), by striking

15 ‘‘$45,000,000 for fiscal year 1993’’ and in16 serting ‘‘$5,000,000 for fiscal year 1999’’;

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

18 (iii) by striking ‘‘(B)(i) There’’ and in19 serting ‘‘(B) There’’; and

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

21 ‘‘(C) There are authorized to be appropriated to

22 carry out section 317, $5,000,000 for fiscal year 1999

23 and such sums as may be necessary for each of the

24 4 succeeding fiscal years.’’;

25 (2) in paragraph (2)—
113

HR 6 EAS

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 inserting

5 ‘‘$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 appro11 priated to carry out part D, $110,000 for fiscal year

12 1999, and such sums as may be necessary for each of

13 the 4 succeeding fiscal years.

14 ‘‘(5) PART E.—There are authorized to be appro15 priated to carry out part E, $10,000,000 for fiscal

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

17 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 Part A of title IV (20 U.S.C. 1070 et seq.) is amend23 ed—
114

HR 6 EAS

1 (1) in subpart 2 (20 U.S.C. 1070a–11), by re2 pealing chapters 3 through 8 (20 U.S.C. 1070a–31 et

3 seq. and 1070a–81 et seq.); and

4 (2) by repealing subpart 8 (20 U.S.C. 1070f).

5 SEC. 412. FEDERAL PELL GRANTS.

6 (a) AMENDMENT TO SUBPART HEADING.—The head7 ing for subpart 1 of part A of title IV (20 U.S.C. 1070a

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

9 Opportunity Grants’’ and inserting ‘‘Federal Pell

10 Grants’’.

11 (b) FEDERAL PELL GRANTS.—Section 401 (20 U.S.C.

12 1070a) is amended—

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

14 EDUCATIONAL OPPORTUNITY GRANTS’’ and in15 serting ‘‘FEDERAL PELL GRANTS’’;

16 (2) in subsection (a)(1)—

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

18 during the period beginning July 1, 1972, and

19 ending September 30, 1998,’’ and inserting ‘‘, for

20 each fiscal year through fiscal year 2004, shall’’;

21 and

22 (B) in the second sentence, by inserting

23 ‘‘until such time as the Secretary determines and

24 publishes in the Federal Register with an oppor25 tunity for comment, an alternative payment sys-
115

HR 6 EAS

1 tem that provides payments to institutions in an

2 accurate and timely manner,’’ after ‘‘pay eligible

3 students’’;

4 (3) in subsection (b)—

5 (A) in paragraph (2)(A), by striking clauses

6 (i) through (v), and inserting the following:

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

8 2000;

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

10 2001;

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

12 2002;

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

14 2003; and

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

16 2004.’’;

17 (B) by amending paragraph (3) to read as

18 follows:

19 ‘‘(3) For any academic year for which an appro20 priation Act provides a maximum basic grant in an

21 amount in excess of $2,400, the amount of a student’s

22 basic grant shall equal $2,400 plus—

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

24 maximum basic grant exceeds $2,400; plus

25 ‘‘(B) the lesser of—
116

HR 6 EAS

1 ‘‘(i) the remaining one-half of such ex2 cess; or

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

4 fees, and if the student has dependent care

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

6 disability-related expenses (as described in

7 section 472(9)), an allowance determined by

8 the institution for such expenses.’’;

9 (C) in paragraph (5), by striking ‘‘$400, ex10 cept’’ and all that follows through ‘‘grant of

11 $400’’ and insert ‘‘$200’’; and

12 (D) in paragraph (6)—

13 (i) by redesignating subparagraphs (A)

14 and (B) as clauses (i) and (ii), respectively;

15 (ii) by inserting ‘‘(A)’’ after the para16 graph designation; and

17 (iii) by adding at the end the follow18 ing:

19 ‘‘(B) The Secretary shall promulgate regula20 tions implementing this paragraph.’’; 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, re-
117

HR 6 EAS

1 quired for the completion of the first undergradu2 ate baccalaureate course of study pursued by the

3 student at the institution at which the student is

4 in attendance, that does not exceed 150 percent

5 of the period normally required by a full-time

6 student (or the equivalent period, in the case of

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

8 study at the institution, as determined by the in9 stitution.

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

11 under this subpart for a period that exceeds the

12 period described in subparagraph (A) or clause

13 (ii) to the extent the institution in which the stu14 dent is enrolled determines necessary to accom15 modate the rights of students with disabilities

16 under section 504 of the Rehabilitation Act of

17 1973.

18 ‘‘(ii) Notwithstanding subsection (a)(1), the

19 Secretary may allow, on a case-by-case basis, a

20 student to receive a basic grant if the student—

‘‘(I) is carrying at least 1 21 ⁄2 the normal

22 full-time work load for the course of study

23 the student is pursuing, as determined by

24 the institution of higher education; and
118

HR 6 EAS

1 ‘‘(II) is enrolled or accepted for enroll2 ment in a postbaccalaureate program that

3 does not lead to a graduate degree, and in

4 courses required by a State in order for the

5 student to receive a professional certifi6 cation or licensing credential that is re7 quired for employment as a teacher in an

8 elementary school or secondary school in

9 that State,

10 except that this subparagraph shall not apply to

11 a student who is enrolled in an institution of

12 higher education that offers a baccalaureate de13 gree in education.’’; and

14 (B) in paragraph (2)—

15 (i) by striking ‘‘Nothing’’ and insert16 ing ‘‘(A) Except as provided in subpara17 graph (B), nothing’’;

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

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

20 (iii) by adding at the end the follow21 ing:

22 ‘‘(B)(i) A student may receive a basic grant

23 to attend English language instruction that is a

24 separate course of instruction only if—
119

HR 6 EAS

1 ‘‘(I) not less than a minimum percent2 age of the students enrolled in the course

3 complete the course;

4 ‘‘(II) students enrolled in the course

5 are required to take an independently ad6 ministered standardized test of English lan7 guage proficiency upon completion of the

8 course; and

9 ‘‘(III) not less than a minimum per10 centage of the students enrolled in the course

11 achieve a passing score on that test.

12 ‘‘(ii) The Secretary shall promulgate regula13 tions that specify the minimum percentage of

14 students who complete the course of instruction,

15 1 or more standardized tests of English pro16 ficiency, the minimum percentage of students

17 who must achieve a passing score on the tests,

18 and such other requirements as the Secretary de19 termines are necessary to implement clause (i).’’.

20 SEC. 413. TRIO PROGRAMS.

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

22 1070a–11) is amended—

23 (1) in subsection (b)(3)—
120

HR 6 EAS

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 per12 mit a Director of a program assisted under this chap13 ter to also administer 1 or more additional programs

14 for disadvantaged students operated by the sponsoring

15 entity regardless of the funding source of such addi16 tional program.’’;

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

18 for fiscal year 1993’’ and inserting ‘‘$700,000,000 for

19 fiscal year 1999’’; and

20 (4) in subsection (g), by adding at the end the

21 following:

22 ‘‘(4) WAIVER.—The Secretary may waive the

23 service requirements in subparagraph (A) or (B) of

24 paragraph (3) if the Secretary determines the appli-
121

HR 6 EAS

1 cation of the service requirements to a veteran will de2 feat the purpose of a program under this chapter.’’.

3 (b) TALENT SEARCH.—(1) AMENDMENT TO SECTION

4 402B(b)(5).—Section 402B(b)(5) (20 U.S.C. 1070a–12(b)(5))

5 is amended by inserting ‘‘, or activities designed to ac6 quaint individuals from disadvantaged backgrounds with

7 careers in which the individuals are particularly underrep8 resented’’ before the semicolon.

9 (2) AMENDMENT TO SECTION 402B(b)(9).—Section

10 402B(b)(9) (20 U.S.C. 1070a–12(b)(9)) is amended by in11 serting ‘‘or counselors’’ after ‘‘teachers’’.

12 (c) UPWARD BOUND.—Section 402C (20 U.S.C.

13 1070a–13) is amended—

14 (1) in subsection (b)—

15 (A) in paragraph (9)—

16 (i) by inserting ‘‘or counselors’’ after

17 ‘‘teachers’’; and

18 (ii) by striking ‘‘and’’ after the semi19 colon;

20 (B) by redesignating paragraph (10) as

21 paragraph (11);

22 (C) by inserting after paragraph (9) the fol23 lowing:
122

HR 6 EAS

1 ‘‘(10) work-study positions where youth partici2 pating in the project are exposed to careers requiring

3 a postsecondary degree; and’’; and

4 (D) in paragraph (11) (as redesignated by

5 subparagraph (B)), by striking ‘‘(9)’’ and insert6 ing ‘‘(10)’’; and

7 (2) in subsection (e), by striking ‘‘and not in ex8 cess of $40 per month during the remaining period of

9 the year.’’ and inserting ‘‘except that youth partici10 pating in a work-study position under subsection

11 (b)(10) may be paid a stipend of $300 per month

12 during June, July, and August. Youths participating

13 in a project proposed to be carried out under any ap14 plication may be paid stipends not in excess of $40

15 per month during the remaining period of the year.’’.

16 (d) STUDENT SUPPORT SERVICES.—Paragraph (6) of

17 section 402D(c) (20 U.S.C. 1070a–14(c)(6)) is amended to

18 read as follows:

19 ‘‘(6) consider, in addition to such other criteria

20 as the Secretary may prescribe, the institution’s ef21 fort, and where applicable past history, in—

22 ‘‘(A) providing sufficient financial assist23 ance to meet the full financial need of each stu24 dent at the institution; and
123

HR 6 EAS

1 ‘‘(B) maintaining the loan burden of each

2 such student at a manageable level.’’.

3 (e) STAFF DEVELOPMENT ACTIVITIES.—Section

4 402G(a) (20 U.S.C. 1070a–17(a)) is amended by inserting

5 ‘‘participating in,’’ after ‘‘leadership personnel employed

6 in,’’.

7 (f) EVALUATION AND DISSEMINATION.—Section 402H

8 (20 U.S.C. 1070a–18) is amended to read as follows:

9 ‘‘SEC. 402H. EVALUATIONS AND GRANTS FOR PROJECT IM10 PROVEMENT AND DISSEMINATION PARTNER11 SHIP PROJECTS.

12 ‘‘(a) EVALUATIONS.—

13 ‘‘(1) IN GENERAL.—For the purpose of improv14 ing the effectiveness of the programs and projects as15 sisted under this subpart, the Secretary may make

16 grants to or enter into contracts with institutions of

17 higher education and other public and private insti18 tutions and organizations to evaluate the effectiveness

19 of the programs and projects assisted under this sub20 part.

21 ‘‘(2) PRACTICES.—The evaluations described in

22 paragraph (1) shall identify institutional, commu23 nity, and program or project practices that are par24 ticularly effective in enhancing the access of low-in25 come individuals and first-generation college students
124

HR 6 EAS

1 to postsecondary education, the preparation of the in2 dividuals and students for postsecondary education,

3 and the success of the individuals and students in

4 postsecondary education.

5 ‘‘(b) GRANTS.—The Secretary may award grants to

6 institutions of higher education or other private and public

7 institutions and organizations, that are carrying out a pro8 gram or project assisted under this subpart prior to the date

9 of enactment of the Higher Education Amendments of 1998,

10 to enable the institutions and organizations to expand and

11 leverage the success of such programs or projects by working

12 in partnership with other institutions, community-based

13 organizations, or combinations of such institutions and or14 ganizations, that are not receiving assistance under this

15 subpart and are serving low-income students and first gen16 eration college students, in order to—

17 ‘‘(1) disseminate and replicate best practices of

18 programs or projects assisted under this subpart; and

19 ‘‘(2) provide technical assistance regarding pro20 grams and projects assisted under this subpart.

21 ‘‘(c) RESULTS.—In order to improve overall program

22 or project effectiveness, the results of evaluations and grants

23 described in this section shall be disseminated by the Sec24 retary to similar programs or projects assisted under this

25 subpart, as well as other individuals concerned with post-
125

HR 6 EAS

1 secondary access for and retention of low-income individ2 uals and first-generation college students.’’.

3 SEC. 414. CONNECTIONS PROGRAM.

4 Chapter 2 of subpart 2 of part A of title IV (20 U.S.C.

5 1070a–21 et seq.) is amended to read as follows:

6 ‘‘CHAPTER 2—CONNECTIONS PROGRAM

7 ‘‘SEC. 404A. EARLY INTERVENTION AND COLLEGE AWARE8 NESS PROGRAM AUTHORIZED.

9 ‘‘(a) IN GENERAL.—The Secretary is authorized, in

10 accordance with the requirements of this chapter, to estab11 lish a program that—

12 ‘‘(1) encourages eligible entities to provide or

13 maintain a guarantee to eligible low-income students

14 who obtain a secondary school diploma (or its recog15 nized equivalent), of the financial assistance necessary

16 to permit the students to attend an institution of

17 higher education; and

18 ‘‘(2) supports eligible entities in providing—

19 ‘‘(A) additional counseling, mentoring, aca20 demic support, outreach, and supportive services

21 to elementary, middle, and secondary school stu22 dents who are at risk of dropping out of school;

23 and

24 ‘‘(B) information to students and their par25 ents about the advantages of obtaining a post-
126

HR 6 EAS

1 secondary education and their college financing

2 options.

3 ‘‘(b) AWARDS.—

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

5 grants to eligible entities to carry out the program

6 authorized under subsection (a).

7 ‘‘(2) PRIORITY.—In making the awards de8 scribed in paragraph (1), the Secretary shall—

9 ‘‘(A) give priority to eligible entities that—

10 ‘‘(i) carried out, prior to the date of

11 enactment of the Higher Education Amend12 ments of 1998, successful educational oppor13 tunity programs; and

14 ‘‘(ii) have a prior, demonstrated com15 mitment to early intervention leading to

16 college access through collaboration and rep17 lication of successful strategies; and

18 ‘‘(B) ensure that students served under this

19 chapter prior to the date of enactment of the

20 Higher Education Amendments of 1998 continue

21 to receive service through the completion of sec22 ondary school.

23 ‘‘(c) DEFINITIONS.—For the purposes of this chapter,

24 the term ‘eligible entity’ means—

25 ‘‘(1) a State; or
127

HR 6 EAS

1 ‘‘(2) a partnership consisting of—

2 ‘‘(A) 1 or more local educational agencies

3 acting on behalf of—

4 ‘‘(i) 1 or more public schools; and

5 ‘‘(ii) the public secondary schools that

6 students from the schools described in clause

7 (i) would normally attend;

8 ‘‘(B) 1 or more degree granting institutions

9 of higher education; and

10 ‘‘(C) at least 2 community organizations or

11 entities, such as businesses, professional associa12 tions, community-based organizations, philan13 thropic organizations, State agencies, institu14 tions or agencies sponsoring programs authorized

15 under subpart 4, or other public or private agen16 cies or organizations.

17 ‘‘(d) COORDINATION.—Each eligible entity shall ensure

18 that the activities assisted under this chapter are, to the

19 extent practicable, coordinated with, and complement and

20 enhance—

21 ‘‘(1) services under this chapter provided by

22 other eligible entities serving the same school district

23 or State; and

24 ‘‘(2) related services under other Federal or non25 Federal programs.
128

HR 6 EAS

1 ‘‘SEC. 404B. ELIGIBILITY ENTITY PLANS.

2 ‘‘(a) PLAN REQUIRED FOR ELIGIBILITY.—

3 ‘‘(1) IN GENERAL.—In order for an eligible en4 tity to qualify for a grant under this chapter, the eli5 gible entity shall submit to the Secretary a plan for

6 carrying out the program under this chapter. Such

7 plan shall provide for the conduct of both a scholar8 ship component in accordance with section 404D and

9 an early intervention component in accordance with

10 section 404C.

11 ‘‘(2) CONTENTS.—Each plan submitted pursuant

12 to paragraph (1) shall be in such form, contain or be

13 accompanied by such information or assurances, and

14 be submitted at such time as the Secretary may re15 quire by regulation. Each such plan shall—

16 ‘‘(A) describe the activities for which assist17 ance under this chapter is sought; and

18 ‘‘(B) provide such additional assurances as

19 the Secretary determines necessary to ensure

20 compliance with the requirements of this chapter.

21 ‘‘(b) MATCHING REQUIREMENT.—

22 ‘‘(1) IN GENERAL.—The Secretary shall not ap23 prove a plan submitted under subsection (a) unless

24 such plan—

25 ‘‘(A) provides that the eligible entity will

26 provide, from State, local, institutional, or pri-
129

HR 6 EAS

vate funds, not less than 1 1 ⁄2 the cost of the pro2 gram, which matching funds may be provided in

3 cash or in kind;

4 ‘‘(B) specifies the methods by which such

5 share of the costs will be paid; and

6 ‘‘(C) includes provisions designed to ensure

7 that funds provided under this chapter shall sup8 plement and not supplant funds expended for ex9 isting programs.

10 ‘‘(2) SPECIAL RULE.—The Secretary may change

11 the share of the costs required to be provided under

12 paragraph (1)(A) for eligible entities defined in sec13 tion 402A(c)(2).

14 ‘‘(c) METHODS FOR COMPLYING WITH MATCHING RE15 QUIREMENT.—An eligible entity may count toward the

16 share of the costs required by subsection (b)(1)(A)—

17 ‘‘(1) the amount of the grants paid to students

18 from State, local, institutional, or private funds

19 under this chapter;

20 ‘‘(2) the amount of tuition, fees, room or board

21 waived or reduced for recipients of grants under this

22 chapter; and

23 ‘‘(3) the amount expended on documented, tar24 geted, long-term mentoring and counseling provided

25 by volunteers or paid staff of nonschool organizations,
130

HR 6 EAS

1 including businesses, religious organizations, commu2 nity groups, postsecondary educational institutions,

3 nonprofit and philanthropic organizations, and other

4 organizations.

5 ‘‘(d) COHORT APPROACH.—

6 ‘‘(1) IN GENERAL.—The Secretary may require

7 that eligible entities—

8 ‘‘(A) provide services under this chapter to

9 at least 1 grade level of students, beginning not

10 later than 7th grade, in a participating public

11 school that has a 7th grade and in which at least

12 50 percent of the students enrolled are eligible for

13 free or reduced-price lunch (or, if an eligible en14 tity determines that it would promote the effec15 tiveness of a project, an entire grade level of stu16 dents, beginning not later than the 7th grade,

17 who reside in public housing as defined in sec18 tion 3(b)(1) of the United States Housing Act of

19 1937); and

20 ‘‘(B) ensure that the services are provided

21 through the 12th grade to students in the partici22 pating grade level.

23 ‘‘(2) COORDINATION REQUIREMENT.—In order

24 for the Secretary to require the cohort approach de25 scribed in paragraph (1), the Secretary shall, where
131

HR 6 EAS

1 applicable, ensure that the cohort approach is done in

2 coordination and collaboration with existing early

3 intervention programs and does not duplicate the

4 services already provided to a school or community.

5 ‘‘SEC. 404C. EARLY INTERVENTION.

6 ‘‘(a) SERVICES.—

7 ‘‘(1) In order to receive a grant under this chap8 ter, an eligible entity shall demonstrate to the satis9 faction of the Secretary, in the plan submitted under

10 section 404B, that the eligible entity will provide

11 comprehensive mentoring, counseling, outreach, and

12 supportive services to students participating in pro13 grams under this chapter who are enrolled in any of

14 the grades preschool through grade 12. Such counsel15 ing shall include financial aid counseling that pro16 vides—

17 ‘‘(A) information regarding the opportuni18 ties for financial assistance under this title; and

19 ‘‘(B) activities or information regarding—

20 ‘‘(i) fostering and improving parent

21 involvement in promoting postsecondary in22 formation regarding the advantages of a

23 college education, academic admission re24 quirements, and the need to take college

25 preparation courses;
132

HR 6 EAS

1 ‘‘(ii) admissions and achievement tests;

2 and

3 ‘‘(iii) application procedures.

4 ‘‘(2) METHODS.—The eligible entity shall

5 demonstrate in such plan, pursuant to regula6 tions of the Secretary, the methods by which the

7 eligible entity will target services on priority

8 students.

9 ‘‘(b) USES OF FUNDS.—

10 ‘‘(1) IN GENERAL.—The Secretary shall, by regu11 lation, establish criteria for determining whether com12 prehensive mentoring, counseling, outreach, and sup13 portive services programs may be used to meet the re14 quirements of subsection (a).

15 ‘‘(2) ALLOWABLE PROVIDERS.—For those eligible

16 entities defined in section 404A(c)(1), the activities

17 required by subsection (a) may be provided by service

18 providers such as community-based organizations,

19 schools, institutions of higher education, public and

20 private agencies, nonprofit and philanthropic organi21 zations, businesses, institutions and agencies sponsor22 ing programs authorized under subpart 4 of this part,

23 and other organizations the State deems appropriate.
133

HR 6 EAS

1 ‘‘(3) PERMISSIBLE ACTIVITIES.—Examples of ac2 tivities that meet the requirements of subsection (a)

3 include the following:

4 ‘‘(A) Providing eligible students in pre5 school through grade 12 with a continuing sys6 tem of mentoring and advising that—

7 ‘‘(i) is coordinated with the Federal

8 and State community service initiatives;

9 and

10 ‘‘(ii) may include such support services

11 as after school and summer tutoring, assist12 ance in obtaining summer jobs, career men13 toring, and academic counseling.

14 ‘‘(B) Requiring each student to enter into

15 an agreement under which the student agrees to

16 achieve certain academic milestones, such as

17 completing a prescribed set of courses and main18 taining satisfactory academic progress described

19 in section 484(c), in exchange for receiving tui20 tion assistance for a period of time to be estab21 lished by each State.

22 ‘‘(C) Activities designed to ensure secondary

23 school completion and college enrollment of at24 risk children, including identification of at-risk

25 children, after school and summer tutoring, as-
134

HR 6 EAS

1 sistance in obtaining summer jobs, academic

2 counseling, volunteer and parent involvement,

3 providing former or current scholarship recipi4 ents as mentor or peer counselors, skills assess5 ment, providing access to rigorous core courses

6 that reflect challenging academic standards, per7 sonal counseling, family counseling and home

8 visits, staff development, and programs and ac9 tivities described in this subparagraph that are

10 specially designed for students of limited English

11 proficiency.

12 ‘‘(D) Summer programs for individuals

13 planning to attend an institution of higher edu14 cation in the next academic year that—

15 ‘‘(i) are carried out at an institution

16 of higher education that also has programs

17 of academic year supportive services for dis18 advantaged students through projects au19 thorized under section 402D or through

20 comparable projects funded by the State or

21 other sources;

22 ‘‘(ii) provide for the participation of

23 the individuals who are eligible for assist24 ance under section 402D or who are eligible
135

HR 6 EAS

1 for comparable programs funded by the

2 State;

3 ‘‘(iii)(I) provide summer instruction

4 in remedial, developmental or supportive

5 courses;

6 ‘‘(II) provide such summer services as

7 counseling, tutoring, or orientation; and

8 ‘‘(III) provide grant aid to the individ9 uals to cover the individuals’ summer costs

10 for books, supplies, living costs, and per11 sonal expenses; and

12 ‘‘(iv) provide the individuals with fi13 nancial aid during each academic year the

14 individuals are enrolled at the participat15 ing institution after the summer program.

16 ‘‘(E) Requiring eligible students to meet

17 other standards or requirements as the State de18 termines necessary to meet the purposes of this

19 section.

20 ‘‘(c) PRIORITY STUDENTS.—In administering the

21 early intervention component, the eligible entity shall treat

22 as priority students any student in preschool through grade

23 12 who is eligible—

24 ‘‘(1) to be counted under section 1005(c) of the

25 Elementary and Secondary Education Act of 1965;
136

HR 6 EAS

1 ‘‘(2) for free or reduced price meals pursuant to

2 the National School Lunch Act; or

3 ‘‘(3) for assistance pursuant to part A of title IV

4 of the Social Security Act.

5 ‘‘SEC. 404D. SCHOLARSHIP COMPONENT.

6 ‘‘(a) IN GENERAL.—

7 ‘‘(1) STATES.—In order to receive a grant under

8 this chapter, an eligible entity described in section

9 404A(c)(1) shall establish or maintain a financial as10 sistance program that awards grants to students in

11 accordance with the requirements of this section. The

12 Secretary shall encourage the eligible entity to ensure

13 that the tuition assistance provided pursuant to this

14 section is available to an eligible student for use at

15 any institution of higher education.

16 ‘‘(2) PARTNERSHIPS.—An eligible entity de17 scribed in section 404A(c)(2) may award scholarships

18 to eligible students.

19 ‘‘(b) GRANT AMOUNTS.—The maximum amount of the

20 grant that an eligible student shall be eligible to receive

21 under this section shall be established by the State. The

22 minimum amount of the grant for each fiscal year shall

23 not be less than the lesser of—

24 ‘‘(1) 75 percent of the average cost of attendance

25 for an in-State student, in a 4-year program of in-
137

HR 6 EAS

1 struction, at public institutions of higher education in

2 such State, as determined in accordance with regula3 tions prescribed by the Secretary; or

4 ‘‘(2) the maximum Federal Pell Grant funded

5 under section 401 for such fiscal year.

6 ‘‘(c) RELATION TO OTHER ASSISTANCE.—Tuition as7 sistance provided under this chapter shall not be considered

8 for the purpose of awarding Federal grant assistance under

9 this title, except that in no case shall the total amount of

10 student financial assistance awarded to a student under

11 this title exceed such student’s total cost of attendance.

12 ‘‘(d) ELIGIBLE STUDENTS.—A student eligible for as13 sistance under this section is a student who—

14 ‘‘(1) is less than 22 years old at time of first

15 grant award under this section;

16 ‘‘(2) receives a secondary school diploma or its

17 recognized equivalent on or after January 1, 1993;

18 ‘‘(3) is enrolled or accepted for enrollment in a

19 program of undergraduate instruction at an institu20 tion of higher education that is located within the

21 State’s boundaries, except that, at the State’s option,

22 an eligible entity may offer grant program portability

23 for recipients who attend institutions of higher edu24 cation outside such State; and
138

HR 6 EAS

1 ‘‘(4) who participated in the early intervention

2 component required under section 404C.

3 ‘‘(e) PRIORITY.—The Secretary shall ensure that each

4 eligible entity places a priority on awarding scholarships

5 to students who will receive a Federal Pell Grant for the

6 academic year for which the scholarship is awarded under

7 this section.

8 ‘‘(f) SPECIAL RULE.—An eligible entity may consider

9 students who have successfully participated in programs

10 funded under chapter 1 of this subpart to have met the re11 quirements of subsection (d)(4).

12 ‘‘SEC. 404E. 21ST CENTURY SCHOLAR CERTIFICATES.

13 ‘‘(a) AUTHORITY.—The Secretary, using funds appro14 priated under section 404G, not to exceed $200,000 annu15 ally—

16 ‘‘(1) shall ensure that certificates, to be known as

17 21st Century Scholar Certificates, are provided to all

18 students participating in programs under this chap19 ter; and

20 ‘‘(2) may, as practicable, ensure that such cer21 tificates are provided to all students in grades 6

22 through 12 who attend schools at which at least 50

23 percent of the students enrolled are eligible for a free

24 or reduced price lunch.
139

HR 6 EAS

1 ‘‘(b) INFORMATION REQUIRED.—A 21st Century

2 Scholar Certificate shall be personalized for each student

3 and indicate the amount of Federal financial aid for college

4 which a student may be eligible to receive.

5 ‘‘SEC. 404F. EVALUATION AND REPORT.

6 ‘‘(a) EVALUATION.—Each eligible entity receiving a

7 grant under this chapter shall biennially evaluate the early

8 intervention program assisted under this chapter in accord9 ance with the standards described in subsection (b) and

10 shall submit to the Secretary a copy of such evaluation. The

11 evaluation shall permit service providers to track eligible

12 student progress during the period such students are par13 ticipating in the program assisted under this section and

14 shall be consistent with the standards developed by the Sec15 retary pursuant to subsection (b).

16 ‘‘(b) EVALUATION STANDARDS.—The Secretary shall

17 prescribe standards for the evaluation described in sub18 section (a). Such standards shall—

19 ‘‘(1) provide for input from eligible entities and

20 service providers; and

21 ‘‘(2) ensure that data protocols and procedures

22 are consistent and uniform.

23 ‘‘(c) FEDERAL EVALUATION.—In order to evaluate and

24 improve the impact of the program assisted under this

25 chapter, the Secretary shall, with funds appropriated under
140

HR 6 EAS

1 section 404G, make grants to, and enter into contracts and

2 cooperative agreements with public and private institutions

3 and organizations, to evaluate the effectiveness of the pro4 gram and, as appropriate, disseminate the results of the

5 evaluation.

6 ‘‘(d) REPORT.—The Secretary shall biennially report

7 to Congress on the activities assisted under this chapter and

8 the evaluations conducted pursuant to this section.

9 ‘‘SEC. 404G. APPROPRIATIONS.

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

11 this chapter $200,000,000 for fiscal year 1999 and such

12 sums as may be necessary for each of the 4 succeeding fiscal

13 years.’’.

14 SEC. 415. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPOR15 TUNITY GRANTS.

16 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

17 413A(b) (20 U.S.C. 1070b) is amended by striking

18 ‘‘$675,000,000 for fiscal year 1993’’ and inserting

19 ‘‘$700,000,000 for fiscal year 1999’’.

20 (b) USE OF FUNDS FOR LESS-THAN-FULL-TIME STU21 DENTS.—Subsection (d) of section 413C (20 U.S.C. 1070b–

22 2) is amended to read as follows:

23 ‘‘(d) USE OF FUNDS FOR LESS-THAN-FULL-TIME

24 STUDENTS.—If the institution’s allocation under this sub25 part is directly or indirectly based in part on the financial
141

HR 6 EAS

1 need demonstrated by students who are independent stu2 dents or attending the institution on less than a full-time

3 basis, a reasonable proportion of the allocation shall be

4 made available to such students.’’.

5 (c) CARRYOVER, CARRYBACK, AND REALLOCATION.—

6 Subpart 3 of part A of title IV (20 U.S.C. 1070b et seq.)

7 is amended by adding at the end the following:

8 ‘‘SEC. 413E. CARRYOVER, CARRYBACK, AND REALLOCATION.

9 ‘‘(a) CARRYOVER AUTHORITY.—Of the sums made

10 available to an eligible institution under this subpart for

11 a fiscal year, not more than 10 percent may, at the discre12 tion of the institution, remain available for expenditure

13 during the succeeding fiscal year to carry out the program

14 under this subpart.

15 ‘‘(b) CARRYBACK AUTHORITY.—Of the sums made

16 available to an eligible institution under this subpart for

17 a fiscal year, not more than 10 percent may, at the discre18 tion of the institution, be used by the institution for expend19 iture for the fiscal year preceding the fiscal year for which

20 the sums were appropriated.

21 ‘‘(c) REALLOCATION.—Any of the sums made available

22 to an eligible institution under this subpart for a fiscal year

23 that are not needed by the institution to award supple24 mental grants during that fiscal year, that the institution

25 does not wish to use during the succeeding fiscal year as
142

HR 6 EAS

1 authorized in subsection (a), and that the institution does

2 not wish to use for the preceding fiscal year as authorized

3 in subsection (b), shall be made available to the Secretary

4 for reallocation under section 413D(e) until the end of the

5 second fiscal year after the fiscal year for which such sums

6 were appropriated.’’.

7 SEC. 416. LEVERAGING EDUCATIONAL ASSISTANCE PART8 NERSHIP PROGRAM.

9 (a) AMENDMENT TO SUBPART HEADING.—

10 (1) IN GENERAL.—The heading for subpart 4 of

11 part A of title IV (20 U.S.C. 1070c et seq.) is amend12 ed to read as follows:

13 ‘‘SUBPART 4—LEVERAGING EDUCATIONAL ASSISTANCE

14 PARTNERSHIP PROGRAM’’.

15 (2) CONFORMING AMENDMENTS.—Subpart 4 of

16 part A of title IV (20 U.S.C. 1070c et seq.) is amend17 ed—

18 (A) in section 415B(b) (20 U.S.C. 1070c–

19 1(b)), by striking ‘‘State student grant incen20 tive’’ and inserting ‘‘leveraging educational as21 sistance partnership’’; and

22 (B) in the heading for section 415C (20

23 U.S.C. 1070c–2), by striking ‘‘STATE STUDENT

24 INCENTIVE GRANT’’ and inserting
143

HR 6 EAS

1 ‘‘LEVERAGING EDUCATIONAL ASSISTANCE

2 PARTNERSHIP’’.

3 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

4 415A(b) (20 U.S.C. 1070c(b)) is amended—

5 (1) in paragraph (1), by striking ‘‘1993’’ and in6 serting ‘‘1999’’;

7 (2) by redesignating paragraph (2) as para8 graph (3); and

9 (3) by inserting after paragraph (1) the follow10 ing:

11 ‘‘(2) RESERVATION.—For any fiscal year for

12 which the amount appropriated under paragraph (1)

13 exceeds $35,000,000, the excess shall be available to

14 carry out section 415E.’’.

15 (c) SPECIAL LEVERAGING EDUCATIONAL ASSISTANCE

16 PARTNERSHIP PROGRAM.—Subpart 4 of part A of title IV

17 (20 U.S.C. 1070c et seq.) is amended—

18 (1) by redesignating section 415E as 415F;

19 (2) by inserting after section 415D the following:

20 ‘‘SEC. 415E. SPECIAL LEVERAGING EDUCATIONAL ASSIST21 ANCE PARTNERSHIP PROGRAM.

22 ‘‘(a) IN GENERAL.—From amounts reserved under sec23 tion 415A(b)(2) for each fiscal year, the Secretary shall—
144

HR 6 EAS

1 ‘‘(1) make allotments among States in the same

2 manner as the Secretary makes allotments among

3 States under section 415B; and

4 ‘‘(2) award grants to States, from allotments

5 under paragraph (1), to enable the States to pay the

6 Federal share of the cost of the authorized activities

7 described in subsection (c).

8 ‘‘(b) APPLICABILITY RULE.—The provisions of this

9 subpart which are not inconsistent with this section shall

10 apply to the program authorized by this section.

11 ‘‘(c) AUTHORIZED ACTIVITIES.—Each State receiving

12 a grant under this section may use the grant funds for—

13 ‘‘(1) increasing the dollar amount of grants

14 awarded under section 415B to eligible students who

15 demonstrate financial need;

16 ‘‘(2) carrying out transition programs from sec17 ondary school to postsecondary education for eligible

18 students who demonstrate financial need;

19 ‘‘(3) making funds available for community serv20 ice work-study activities for eligible students who

21 demonstrate financial need;

22 ‘‘(4) creating a postsecondary scholarship pro23 gram for eligible students who demonstrate financial

24 need and wish to enter teaching;
145

HR 6 EAS

1 ‘‘(5) creating a scholarship program for eligible

2 students who demonstrate financial need and wish to

3 enter a program of study leading to a degree in math4 ematics, computer science, or engineering;

5 ‘‘(6) carrying out early intervention programs,

6 mentoring programs, and career education programs

7 for eligible students who demonstrate financial need;

8 and

9 ‘‘(7) awarding merit or academic scholarships to

10 eligible students who demonstrate financial need.

11 ‘‘(d) MAINTENANCE OF EFFORT REQUIREMENT.—

12 Each State receiving a grant under this section for a fiscal

13 year shall provide the Secretary an assurance that the ag14 gregate amount expended per student or the aggregate ex15 penditures by the State, from funds derived from non-Fed16 eral sources, for the authorized activities described in sub17 section (c) for the preceding fiscal year were not less than

18 the amount expended per student or the aggregate expendi19 tures by the State for the activities for the second preceding

20 fiscal year.

21 ‘‘(e) FEDERAL SHARE.—The Federal share of the cost

22 of the authorized activities described in subsection (c) for

any fiscal year shall be 331 23 ⁄3 percent.’’; and

24 (3) by adding at the end the following:
146

HR 6 EAS

1 ‘‘SEC. 415G. FEDERAL-STATE RELATIONSHIPS; STATE

2 AGREEMENTS.

3 ‘‘(a) IN GENERAL.—Any State that desires to receive

4 assistance under this subpart shall enter into an agreement

5 with the Secretary pursuant to subsection (b) setting forth

6 the terms and conditions for the relationship between the

7 Federal Government and that State for the purposes set

8 forth under this subpart.

9 ‘‘(b) CONTENTS.—

10 ‘‘(1) IN GENERAL.—Such agreement shall consist

11 of assurances by the State, including a description of

12 the means to be used by the State to fulfill the assur13 ances, that—

14 ‘‘(A) the State will provide for such methods

15 of administration as are necessary for the proper

16 and efficient administration of the program

17 under this subpart in keeping with the purposes

18 set forth under this subpart;

19 ‘‘(B) the State will provide for such fiscal

20 control and fund accounting procedures as may

21 be necessary to ensure proper disbursement of,

22 and accounting for, Federal funds paid to the

23 State under this subpart;

24 ‘‘(C) the State will follow policies and prac25 tices of administration that will ensure that non26 Federal funds will not be supplanted by Federal
147

HR 6 EAS

1 funds, and that equitable and appropriate cri2 teria will be used in evaluation of applications

3 or proposals for grants under this subpart; and

4 ‘‘(D) the State has a comprehensive plan5 ning or policy formulation process that—

6 ‘‘(i) considers the relation between

7 State administration of the program under

8 this subpart, and administration of similar

9 State programs or processes;

10 ‘‘(ii) encourages State policies designed

11 to consider effects on declining enrollments

12 on all sectors of postsecondary education in

13 the State;

14 ‘‘(iii) considers the postsecondary edu15 cation needs of unserved and underserved

16 individuals within the State, including in17 dividuals beyond the traditional college age;

18 ‘‘(iv) considers the resources of institu19 tions, organizations, or agencies (both pub20 lic and private) within the State capable of

21 providing postsecondary educational oppor22 tunities in the State; and

23 ‘‘(v) provides for direct, equitable, and

24 active participation in the comprehensive

25 planning or policy formulation process or
148

HR 6 EAS

1 processes of representatives of institutions of

2 higher education (including community col3 leges, proprietary institutions, and inde4 pendent colleges and universities), students,

5 other providers of postsecondary education

6 services, and the general public in the State.

7 ‘‘(2) SPECIAL RULE.—Participation under para8 graph (1)(D)(v) shall, consistent with State law, be

9 achieved through membership on State planning com10 missions, State advisory councils, or other State enti11 ties established by the State to conduct federally as12 sisted comprehensive planning or policy formulation.

13 ‘‘(c) SPECIAL RULE.—The information and assurances

14 provided by a State in accordance with subparagraphs (A),

15 (B), and (C) of subsection (b)(1), and regulations issued

16 by the Secretary related directly to such assurances, shall

17 be satisfactory for the purposes of, and shall be considered

18 in lieu of, any comparable requirements for information

19 and assurances in any program under this subpart.

20 ‘‘(d) AGREEMENT DURATION; COMPLIANCE.—

21 ‘‘(1) AGREEMENT DURATION.—An agreement of

22 a State shall remain in effect subject to modification

23 as changes in information or circumstances require.

24 ‘‘(2) COMPLIANCE.—Whenever the Secretary,

25 after reasonable notice and opportunity for a hearing
149

HR 6 EAS

1 has been given to the State, finds that there is a fail2 ure to comply substantially with the assurances re3 quired in subparagraph (A), (B), or (C) of subsection

4 (b)(1), the Secretary shall notify the State that the

5 State is no longer eligible to participate in the pro6 gram under this subpart until the Secretary is satis7 fied that there is no longer any such failure to com8 ply.

9 ‘‘(e) SPECIAL RULES.—

10 ‘‘(1) ENTITIES ENTERING INTO AGREEMENTS.—

11 For the purpose of this section, the selection of the

12 State entity or entities authorized to act on behalf of

13 the State for the purpose of entering into an agree14 ment with the Secretary shall be in accordance with

15 the State law of each individual State with respect to

16 the authority to make legal agreements between the

17 State and the Federal Government.

18 ‘‘(2) CONSTRUCTION.—

19 ‘‘(A) STATE STRUCTURE.—Nothing in this

20 section shall be construed to authorize the Sec21 retary to require any State to adopt, as a condi22 tion for entering into an agreement, or for par23 ticipation in a program under this subpart, a

24 specific State organizational structure for

25 achieving participation in the planning, or ad-
150

HR 6 EAS

1 ministration of programs, or for statewide plan2 ning, coordination, governing, regulating, or ad3 ministering of postsecondary education agencies,

4 institutions, or programs in the State.

5 ‘‘(B) STATE AUTHORITY.—Nothing in this

6 section shall be construed as a limitation on the

7 authority of any State to adopt a State organi8 zational structure for postsecondary education

9 agencies, institutions, or programs that is appro10 priate to the needs, traditions, and cir11 cumstances of that State, or as a limitation on

12 the authority of a State entering into an agree13 ment pursuant to this section to modify the

14 State organizational structure at any time subse15 quent to entering into such an agreement.’’.

16 (d) TECHNICAL AND CONFORMING AMENDMENTS.—

17 (1) PURPOSE.—Subsection (a) of section 415A

18 (20 U.S.C. 1070c(a)) is amended to read as follows:

19 ‘‘(a) PURPOSE OF SUBPART.—It is the purpose of this

20 subpart to make incentive grants available to States to as21 sist States in—

22 ‘‘(1) providing grants to—

23 ‘‘(A) eligible students attending institutions

24 of higher education or participating in programs

25 of study abroad that are approved for credit by
151

HR 6 EAS

1 institutions of higher education at which such

2 students are enrolled; and

3 ‘‘(B) eligible students for campus-based

4 community service work-study; and

5 ‘‘(2) carrying out the activities described in sec6 tion 415F.’’.

7 (2) ALLOTMENT.—Section 415B(a)(1) (20 U.S.C.

8 1070c–1(a)(1)) is amended by inserting ‘‘and not re9 served under section 415A(b)(2)’’ after ‘‘415A(b)(1)’’.

10 SEC. 417. HEP AND CAMP.

11 Section 418A(g) (20 U.S.C. 1070d–2(g)) is amended—

12 (1) in paragraph (1), by striking ‘‘$15,000,000

13 for fiscal year 1993’’ and inserting ‘‘$25,000,000 for

14 fiscal year 1999’’; and

15 (2) in paragraph (2), by striking ‘‘$5,000,000 for

16 fiscal year 1993’’ and inserting ‘‘$10,000,000 for fis17 cal year 1999’’.

18 SEC. 418. ROBERT C. BYRD HONORS SCHOLARSHIP PRO19 GRAM.

20 Section 419K (20 U.S.C. 1070d–41) is amended by

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

22 ‘‘$45,000,000 for fiscal year 1999’’.
152

HR 6 EAS

1 SEC. 419. CHILD CARE ACCESS MEANS PARENTS IN

2 SCHOOL.

3 Part A of title IV (20 U.S.C. 1070 et seq.) is amended

4 by inserting after subpart 6 (20 U.S.C. 1070d–31 et seq.)

5 the following:

6 ‘‘Subpart 7—Child Care Access Means Parents in

7 School

8 ‘‘SEC. 419N. CHILD CARE ACCESS MEANS PARENTS IN

9 SCHOOL.

10 ‘‘(a) PURPOSE.—The purpose of this section is to sup11 port the participation of low-income parents in postsecond12 ary education through the provision of campus-based child

13 care services.

14 ‘‘(b) PROGRAM AUTHORIZED.—

15 ‘‘(1) AUTHORITY.—The Secretary may award

16 grants to institutions of higher education to assist the

17 institutions in providing campus-based child care

18 services primarily to low-income students.

19 ‘‘(2) AMOUNT OF GRANTS.—

20 ‘‘(A) IN GENERAL.—The amount of a grant

21 awarded to an institution of higher education

22 under this section for a fiscal year shall not ex23 ceed 1 percent of the total amount of all Federal

24 Pell Grant funds awarded to students enrolled at

25 the institution of higher education for the preced26 ing fiscal year.
153

HR 6 EAS

1 ‘‘(B) MINIMUM.—A grant under this section

2 shall be awarded in an amount that is not less

3 than $10,000.

4 ‘‘(3) DURATION; RENEWAL; AND PAYMENTS.—

5 ‘‘(A) DURATION.—The Secretary shall

6 award a grant under this section for a period of

7 3 years.

8 ‘‘(B) RENEWAL.—A grant under this sec9 tion may be renewed for a period of 3 years.

10 ‘‘(C) PAYMENTS.—Subject to subsection

11 (e)(2), the Secretary shall make annual grant

12 payments under this section.

13 ‘‘(4) ELIGIBLE INSTITUTIONS.—An institution of

14 higher education shall be eligible to receive a grant

15 under this section for a fiscal year if the total amount

16 of all Federal Pell Grant funds awarded to students

17 enrolled at the institution of higher education for the

18 preceding fiscal year equals or exceeds $350,000.

19 ‘‘(5) USE OF FUNDS.—Grant funds under this

20 section shall be used by an institution of higher edu21 cation to support or establish a campus-based child

22 care program primarily serving the needs of low-in23 come students enrolled at the institution of higher

24 education. Grant funds under this section may be

25 used to provide before and after school services to the
154

HR 6 EAS

1 extent necessary to enable low-income students en2 rolled at the institution of higher education to pursue

3 postsecondary education.

4 ‘‘(6) CONSTRUCTION.—Nothing in this section

5 shall be construed to prohibit an institution of higher

6 education that receives grant funds under this section

7 from serving the child care needs of the community

8 served by the institution.

9 ‘‘(7) DEFINITION OF LOW-INCOME STUDENT.—

10 For the purpose of this section, the term ‘‘low-income

11 student’’ means a student who is eligible to receive a

12 Federal Pell Grant for the fiscal year for which the

13 determination is made.

14 ‘‘(c) APPLICATIONS.—An institution of higher edu15 cation desiring a grant under this section shall submit an

16 application to the Secretary at such time, in such manner,

17 and accompanied by such information as the Secretary

18 may require. Each application shall—

19 ‘‘(1) demonstrate that the institution is an eligi20 ble institution described in subsection (b)(4);

21 ‘‘(2) specify the amount of funds requested;

22 ‘‘(3) demonstrate the need of low-income students

23 at the institution for campus-based child care services

24 by including in the application—
155

HR 6 EAS

1 ‘‘(A) information regarding student demo2 graphics;

3 ‘‘(B) an assessment of child care capacity

4 on or near campus;

5 ‘‘(C) information regarding the existence of

6 waiting lists for existing child care;

7 ‘‘(D) information regarding additional

8 needs created by concentrations of poverty or by

9 geographic isolation; and

10 ‘‘(E) other relevant data;

11 ‘‘(4) contain a description of the activities to be

12 assisted, including whether the grant funds will sup13 port an existing child care program or a new child

14 care program;

15 ‘‘(5) identify the resources, including technical

16 expertise and financial support, the institution will

17 draw upon to support the child care program and the

18 participation of low-income students in the program,

19 such as accessing social services funding, using stu20 dent activity fees to help pay the costs of child care,

21 using resources obtained by meeting the needs of par22 ents who are not low-income students, and accessing

23 foundation, corporate or other institutional support,

24 and demonstrate that the use of the resources will not

25 result in increases in student tuition;
156

HR 6 EAS

1 ‘‘(6) contain an assurance that the institution

2 will meet the child care needs of low-income students

3 through the provision of services, or through a con4 tract for the provision of services;

5 ‘‘(7) describe the extent to which the child care

6 program will coordinate with the institution’s early

7 childhood education curriculum, to the extent the cur8 riculum is available, to meet the needs of the students

9 in the early childhood education program at the insti10 tution, and the needs of the parents and children par11 ticipating in the child care program assisted under

12 this section;

13 ‘‘(8) in the case of an institution seeking assist14 ance for a new child care program—

15 ‘‘(A) provide a timeline, covering the period

16 from receipt of the grant through the provision

17 of the child care services, delineating the specific

18 steps the institution will take to achieve the goal

19 of providing low-income students with child care

20 services;

21 ‘‘(B) specify any measures the institution

22 will take to assist low-income students with child

23 care during the period before the institution pro24 vides child care services; and
157

HR 6 EAS

1 ‘‘(C) include a plan for identifying re2 sources needed for the child care services, includ3 ing space in which to provide child care services,

4 and technical assistance if necessary;

5 ‘‘(9) contain an assurance that any child care

6 facility assisted under this section will meet the ap7 plicable State or local government licensing, certifi8 cation, approval, or registration requirements; and

9 ‘‘(10) contain a plan for any child care facility

10 assisted under this section to become accredited with11 in 3 years of the date the institution first receives as12 sistance under this section.

13 ‘‘(d) PRIORITY.—The Secretary shall give priority in

14 awarding grants under this section to institutions of higher

15 education that submit applications describing programs

16 that—

17 ‘‘(1) leverage significant local or institutional re18 sources, including in-kind contributions, to support

19 the activities assisted under this section; and

20 ‘‘(2) utilize a sliding fee scale for child care serv21 ices provided under this section in order to support

22 a high number of low-income parents pursuing post23 secondary education at the institution.

24 ‘‘(e) REPORTING REQUIREMENTS; CONTINUING ELIGI25 BILITY.—
158

HR 6 EAS

1 ‘‘(1) REPORTING REQUIREMENTS.—

2 ‘‘(A) REPORTS.—Each institution of higher

3 education receiving a grant under this section

4 shall report to the Secretary 18 months, and 36

5 months, after receiving the first grant payment

6 under this section.

7 ‘‘(B) CONTENTS.—The report shall in8 clude—

9 ‘‘(i) data on the population served

10 under this section;

11 ‘‘(ii) information on campus and com12 munity resources and funding used to help

13 low-income students access child care serv14 ices;

15 ‘‘(iii) information on progress made

16 toward accreditation of any child care facil17 ity; and

18 ‘‘(iv) information on the impact of the

19 grant on the quality, availability, and af20 fordability of campus-based child care serv21 ices.

22 ‘‘(2) CONTINUING ELIGIBILITY.—The Secretary

23 shall make the third annual grant payment under

24 this section to an institution of higher education only

25 if the Secretary determines, on the basis of the 18-
159

HR 6 EAS

1 month report submitted under paragraph (1), that the

2 institution is making a good faith effort to ensure

3 that low-income students at the institution have ac4 cess to affordable, quality child care services.

5 ‘‘(f) CONSTRUCTION.—No funds provided under this

6 section shall be used for construction, except for minor ren7 ovation or repair to meet applicable State or local health

8 or safety requirements.

9 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There

10 are authorized to be appropriated to carry out this section

11 $60,000,000 for fiscal year 1999 and such sums as may be

12 necessary for each of the 4 succeeding fiscal years.’’.

13 SEC. 420. LEARNING ANYTIME ANYWHERE PARTNERSHIPS.

14 Part A of title IV (20 U.S.C. 1070 et seq.) is amended

15 further by adding at the end the following:

16 ‘‘Subpart 9—Learning Anytime Anywhere

17 Partnerships

18 ‘‘SEC. 420D. FINDINGS.

19 ‘‘Congress makes the following findings:

20 ‘‘(1) The nature of postsecondary education de21 livery is changing, and new technology and other re22 lated innovations can provide promising education

23 opportunities for individuals who are currently not

24 being served, particularly for individuals without

25 easy access to traditional campus-based postsecondary
160

HR 6 EAS

1 education or for whom traditional courses are a poor

2 match with education or training needs.

3 ‘‘(2) Individuals, including individuals seeking

4 basic or technical skills or their first postsecondary

5 experience, individuals with disabilities, dislocated

6 workers, individuals making the transition from wel7 fare-to-work, and individuals who are limited by time

8 and place constraints can benefit from nontradi9 tional, noncampus-based postsecondary education op10 portunities and appropriate support services.

11 ‘‘(3) The need for high-quality, nontraditional,

12 technology-based education opportunities is great, as

13 is the need for skill competency credentials and other

14 measures of educational progress and attainment that

15 are valid and widely accepted, but neither need is

16 likely to be adequately addressed by the uncoordinated

17 efforts of agencies and institutions acting independ18 ently and without assistance.

19 ‘‘(4) Partnerships, consisting of institutions of

20 higher education, community organizations, or other

21 public or private agencies or organizations, can co22 ordinate and combine institutional resources—

23 ‘‘(A) to provide the needed variety of edu24 cation options to students; and
161

HR 6 EAS

1 ‘‘(B) to develop new means of ensuring ac2 countability and quality for innovative edu3 cation methods.

4 ‘‘SEC. 420E. PURPOSE; PROGRAM AUTHORIZED.

5 ‘‘(a) PURPOSE.—It is the purpose of this subpart to

6 enhance the delivery, quality, and accountability of post7 secondary education and career-oriented lifelong learning

8 through technology and related innovations.

9 ‘‘(b) PROGRAM AUTHORIZED.—

10 ‘‘(1) GRANTS.—

11 ‘‘(A) IN GENERAL.—The Secretary may,

12 from funds appropriated under section 420J

13 make grants to, or enter into contracts or cooper14 ative agreements with, eligible partnerships to

15 carry out the authorized activities described in

16 section 420G.

17 ‘‘(B) DURATION.—Grants under this sub18 part shall be awarded for periods that do not ex19 ceed 5 years.

20 ‘‘(2) DEFINITION OF ELIGIBLE PARTNERSHIP.—

21 For purposes of this subpart, the term ‘eligible part22 nership’ means a partnership consisting of 2 or more

23 independent agencies, organizations, or institutions.

24 The agencies, organizations, or institutions may in25 clude institutions of higher education, community or-
162

HR 6 EAS

1 ganizations, and other public and private institu2 tions, agencies, and organizations.

3 ‘‘SEC. 420F. APPLICATION.

4 ‘‘(a) REQUIREMENT.—An eligible partnership desiring

5 to receive a grant under this subpart shall submit an appli6 cation to the Secretary, in such form and containing such

7 information, as the Secretary may require.

8 ‘‘(b) CONTENTS.—Each application shall include—

9 ‘‘(1) the name of each partner and a description

10 of the responsibilities of the partner, including the

11 designation of a nonprofit organization as the fiscal

12 agent for the partnership;

13 ‘‘(2) a description of the need for the project, in14 cluding a description of how the project will build on

15 any existing services and activities;

16 ‘‘(3) a listing of human, financial (other than

17 funds provided under this subpart), and other re18 sources that each member of the partnership will con19 tribute to the partnership, and a description of the ef20 forts each member of the partnership will make in

21 seeking additional resources; and

22 ‘‘(4) a description of how the project will oper23 ate, including how funds awarded under this subpart

24 will be used to meet the purpose of this subpart.
163

HR 6 EAS

1 ‘‘SEC. 420G. AUTHORIZED ACTIVITIES.

2 ‘‘Funds awarded to an eligible partnership under this

3 subpart shall be used to—

4 ‘‘(1) develop and assess model distance learning

5 programs or innovative educational software;

6 ‘‘(2) develop methodologies for the identification

7 and measurement of skill competencies;

8 ‘‘(3) develop and assess innovative student sup9 port services; or

10 ‘‘(4) support other activities that are consistent

11 with the purpose of this subpart.

12 ‘‘SEC. 420H. MATCHING REQUIREMENT.

13 ‘‘Federal funds shall provide not more than 50 percent

14 of the cost of a project under this subpart. The non-Federal

15 share of project costs may be in cash or in kind, fairly eval16 uated, including services, supplies, or equipment.

17 ‘‘SEC. 420I. PEER REVIEW.

18 ‘‘The Secretary shall use a peer review process to re19 view applications under this subpart and to make rec20 ommendations for funding under this subpart to the Sec21 retary.

22 ‘‘SEC. 420J. AUTHORIZATION OF APPROPRIATIONS.

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

24 this subpart $30,000,000 for fiscal year 1999 and such sums

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

26 years.’’.
164

HR 6 EAS

1 PART B—FEDERAL FAMILY EDUCATION LOAN

2 PROGRAM

3 SEC. 421. ADVANCES FOR RESERVE FUNDS.

4 Section 422 (20 U.S.C. 1072) is amended—

5 (1) in subsection (c)—

6 (A) in paragraph (6)(B)(i), by striking

7 ‘‘written’’ and inserting ‘‘written, electronic’’;

8 and

9 (B) in paragraph (7)(A), by striking ‘‘dur10 ing the transition from the Federal Family Edu11 cation Loan Program under this part to the Fed12 eral Direct Student Loan Program under part D

13 of this title’’;

14 (2) in the matter preceding subparagraph (A) of

15 subsection (g)(1), by striking ‘‘or the program author16 ized by part D of this title’’ each place the term ap17 pears; and

18 (3) by adding at the end the following:

19 ‘‘(i) ADDITIONAL RECALL OF RESERVES FOR FISCAL

20 YEARS 1999, 2000, 2001, AND 2002.—

21 ‘‘(1) IN GENERAL.—Notwithstanding any other

22 provision of law and subject to paragraph (4), the

23 Secretary shall recall $21,250,000 for each of the fis24 cal years 1999, 2000, 2001, and 2002 from reserve

25 funds held in the Federal Student Loan Reserve
165

HR 6 EAS

1 Funds established under section 422A by guaranty

2 agencies.

3 ‘‘(2) DEPOSIT.—Funds recalled by the Secretary

4 under this subsection shall be deposited in the Treas5 ury.

6 ‘‘(3) REQUIRED SHARE.—The Secretary shall re7 quire each guaranty agency to return reserve funds

under paragraph (1) annually on the basis of 1 8 ⁄4 of

9 the agency’s required share. For purposes of this

10 paragraph, a guaranty agency’s required share shall

11 be determined as follows:

12 ‘‘(A) EQUAL PERCENTAGE.—The Secretary

13 shall require each guaranty agency to return an

14 equal percentage reduction in the amount of re15 serve funds held by the agency on September 30,

16 1996.

17 ‘‘(B) CALCULATION.—The equal percentage

18 reduction shall be the percentage obtained by di19 viding—

20 ‘‘(i) $85,000,000, by

21 ‘‘(ii) the total amount of all guaranty

22 agencies’ reserve funds held on September

23 30, 1996.

24 ‘‘(C) SPECIAL RULE.—Notwithstanding sub25 paragraphs (A) and (B), the percentage reduc-
166

HR 6 EAS

1 tion under subparagraph (B) shall not result in

2 the depletion of the reserve funds of any agency

3 which charges the 1.0 percent insurance pre4 mium pursuant to section 428(b)(1)(H) below an

5 amount equal to the amount of lender claim pay6 ments paid 90 days prior to the date of the re7 turn under this subsection. If any additional

8 amount is required to be returned after deduct9 ing the total of the required shares under sub10 paragraph (B) and as a result of the preceding

11 sentence, such additional amount shall be ob12 tained by imposing on each guaranty agency to

13 which the preceding sentence does not apply, an

14 equal percentage reduction in the amount of the

15 agency’s remaining reserve funds.

16 ‘‘(4) OFFSET OF REQUIRED SHARES.—If any

17 guaranty agency returns to the Secretary any reserve

18 funds in excess of the amount required under this sub19 section or subsection (h), the total amount required to

20 be returned under paragraph (1) shall be reduced by

21 the amount of such excess reserve funds returned.

22 ‘‘(5) DEFINITION OF RESERVE FUNDS.—The term

23 ‘reserve funds’ when used with respect to a guaranty

24 agency—
167

HR 6 EAS

1 ‘‘(A) includes any reserve funds in cash or

2 liquid assets held by the guaranty agency, or

3 held by, or under the control of, any other entity;

4 and

5 ‘‘(B) does not include buildings, equipment,

6 or other nonliquid assets.

7 ‘‘(j) ADDITIONAL RECALL OF RESERVES ON SEPTEM8 BER 1, 2007.—

9 ‘‘(1) IN GENERAL.—Notwithstanding any other

10 provision of law and subject to paragraph (4), the

11 Secretary shall recall, on September 1, 2007,

12 $165,000,000 from reserve funds held in the Federal

13 Student Loan Reserve Funds established under section

14 422A by guaranty agencies.

15 ‘‘(2) DEPOSIT.—Funds recalled by the Secretary

16 under this subsection shall be deposited in the Treas17 ury.

18 ‘‘(3) EQUAL PERCENTAGE REDUCTION.—The Sec19 retary shall require each guaranty agency to return

20 reserve funds under paragraph (1) by requiring an

21 equal percentage reduction in the amount of reserve

22 funds held by the agency on September 30, 1996.

23 ‘‘(4) OFFSET OF REQUIRED SHARES.—If any

24 guaranty agency returns to the Secretary any reserve

25 funds in excess of the amount required under this sub-
168

HR 6 EAS

1 section, subsection (h), or subsection (i), the total

2 amount required to be returned under paragraph (1)

3 shall be reduced by the amount of such excess reserve

4 funds returned.

5 ‘‘(5) DEFINITION OF RESERVE FUNDS.—The term

6 ‘reserve funds’ when used with respect to a guaranty

7 agency—

8 ‘‘(A) includes any reserve funds in cash or

9 liquid assets held by the guaranty agency, or

10 held by, or under the control of, any other entity;

11 and

12 ‘‘(B) does not include buildings, equipment,

13 or other nonliquid assets.’’.

14 SEC. 422. FEDERAL STUDENT LOAN RESERVE FUND.

15 Part B of title IV (20 U.S.C. 1071 et seq.) is amended

16 by inserting after section 422 (20 U.S.C. 1072) the follow17 ing:

18 ‘‘SEC. 422A. FEDERAL STUDENT LOAN RESERVE FUND.

19 ‘‘(a) ESTABLISHMENT.—Each guaranty agency shall,

20 not later than 45 days after the date of enactment of this

21 section, deposit all funds, securities, and other liquid assets

22 contained in the reserve fund established pursuant to sec23 tion 422 into a Federal Student Loan Reserve Fund (in

24 this section referred to as the ‘Federal Fund’), in an account
169

HR 6 EAS

1 of a type selected by the agency, with the approval of the

2 Secretary.

3 ‘‘(b) INVESTMENT OF FUNDS.—Funds transferred to

4 the Federal Fund shall be invested in obligations issued or

5 guaranteed by the United States or a State, or in other

6 similarly low-risk securities selected by the guaranty agen7 cy, with the approval of the Secretary. Earnings from the

8 Federal Fund shall be the sole property of the Federal Gov9 ernment.

10 ‘‘(c) ADDITIONAL DEPOSITS.—After the establishment

11 of the Federal Fund, a guaranty agency shall deposit into

12 the Federal Fund—

13 ‘‘(1) all amounts received from the Secretary as

14 payment of reinsurance on loans pursuant to section

15 428(c)(1);

16 ‘‘(2) from amounts collected on behalf of the obli17 gation of a defaulted borrower, a percentage amount

18 equal to the complement of the reinsurance percentage

19 in effect when payment under the guaranty agreement

20 was made with respect to the defaulted loan pursuant

21 to section 428(c)(6)(A); and

22 ‘‘(3) the amount of the insurance premium col23 lected from borrowers pursuant to section

24 428(b)(1)(H).
170

HR 6 EAS

1 ‘‘(d) USES OF FUNDS.—Subject to subsection (f), the

2 Federal Fund may only be used by a guaranty agency—

3 ‘‘(1) to pay lender claims pursuant to sections

4 428(b)(1)(G), 428(j), 437, and 439(q); and

5 ‘‘(2) to pay into the Agency Operating Fund es6 tablished pursuant to section 422B a default preven7 tion fee in accordance with section 428(l).

8 ‘‘(e) OWNERSHIP OF FEDERAL FUND.—The Federal

9 Fund, and any nonliquid asset (such as a building or

10 equipment) developed or purchased by the guaranty agency

11 in whole or in part with Federal reserve funds, regardless

12 of who holds or controls the Federal reserve funds or such

13 asset, shall be considered to be the property of the United

14 States, prorated based on the percentage of such asset devel15 oped or purchased with Federal reserve funds, which prop16 erty shall be used in the operation of the program author17 ized by the part, as provided in subsection (d). The Sec18 retary may restrict or regulate the use of such asset only

19 to the extent necessary to reasonably protect the Secretary’s

20 prorated share of the value of such asset. The Secretary may

21 direct a guaranty agency, or such agency’s officers or direc22 tors, to cease any activity involving expenditures, use, or

23 transfer of the Federal Fund administered by the guaranty

24 agency that the Secretary determines is a misapplication,
171

HR 6 EAS

1 misuse, or improper expenditures of the Federal fund or the

2 Secretary’s share of such asset.

3 ‘‘(f) TRANSITION.—

4 ‘‘(1) IN GENERAL.—In order to establish the

5 Agency Operating Fund established by section 422B,

6 each agency may transfer not more than 180 days

7 cash expenses for normal operating expenses, as a

8 working capital reserve as defined in Office of Man9 agement and Budget Circular A–87 (Cost Accounting

10 Standards) for use in the performance of the agency’s

11 duties under this part. Such transfers may occur dur12 ing the first 3 years following the establishment of the

13 Agency Operating Fund, except that no agency may

14 transfer in excess of 40 percent of the Federal Fund

15 balance to the agency’s Agency Operating Fund dur16 ing any fiscal year. In determining the amount nec17 essary for transfer, the agency shall assure that suffi18 cient funds remain in the Federal Fund to pay lender

19 claims within the required time periods and to meet

20 the reserve funds recall requirements of subsection (b).

21 ‘‘(2) REPAYMENT PROVISIONS.—Each guaranty

22 agency shall begin repayment of sums transferred

23 pursuant to this subsection not later than 3 years

24 after the establishment of the Agency Operating Fund,

25 and shall repay all sums transferred not later than
172

HR 6 EAS

1 5 years from the date of the establishment of the

2 Agency Operating Fund. The guaranty agency shall

3 provide to the Secretary a schedule for repayment of

4 the sums transferred and an annual financial analy5 sis demonstrating the agency’s ability to comply with

6 the schedule and repay all outstanding sums trans7 ferred.

8 ‘‘(3) PROHIBITION.—If a guaranty agency trans9 fers funds from the Federal Fund in accordance with

10 this section, and fails to make scheduled repayments

11 to the Federal Fund, the agency may not receive any

12 other funds under this part until the Secretary deter13 mines that the agency has made such repayments.

14 The Secretary shall pay to the guaranty agency any

15 funds withheld in accordance with this paragraph

16 immediately upon making the determination that the

17 guaranty agency has made all such repayments.

18 ‘‘(4) WAIVER.—The Secretary may waive the re19 quirements of paragraph (3) for a guaranty agency

20 described in such paragraph if the Secretary deter21 mines there are extenuating circumstances beyond the

22 control of the agency that justify such a waiver.

23 ‘‘(5) INVESTMENT OF FEDERAL FUNDS.—Funds

24 transferred from the Federal Fund to the Agency Op25 erating Fund for operating expenses shall be invested
173

HR 6 EAS

1 in obligations issued or guaranteed by the United

2 States or a State, or in other similarly low-risk secu3 rities selected by the guaranty agency, with the ap4 proval of the Secretary.

5 ‘‘(6) SPECIAL RULE.—In applying the minimum

6 reserve level required by section 428(c)(9)(A), the Sec7 retary shall include all amounts owed to the Federal

8 Fund by the guaranty agency in the calculation.’’.

9 SEC. 423. AGENCY OPERATING FUND.

10 Part B of title IV (20 U.S.C. 1071 et seq.) is amended

11 further by inserting after section 422A (as added by section

12 422) the following:

13 ‘‘SEC. 422B. AGENCY OPERATING FUND.

14 ‘‘(a) ESTABLISHMENT.—Each guaranty agency shall,

15 not later than 45 days after the date of enactment of this

16 section, establish a fund designated as the Agency Operating

17 Fund (in this section referred to as the ‘Operating Fund’).

18 ‘‘(b) INVESTMENT OF FUNDS.—Funds deposited into

19 the Operating Fund, with the exception of funds transferred

20 from the Federal Student Loan Reserve Fund pursuant to

21 section 422A(f), shall be invested at the discretion of the

22 guaranty agency.

23 ‘‘(c) ADDITIONAL DEPOSITS.—After the establishment

24 of the Operating Fund, the guaranty agency shall deposit

25 into the Operating Fund—
174

HR 6 EAS

1 ‘‘(1) the loan processing and issuance fee paid by

2 the Secretary pursuant to section 428(f);

3 ‘‘(2) administrative cost allowances paid under

4 section 458, as such section was in effect on the day

5 preceding the date of enactment of the Higher Edu6 cation Amendments of 1998, and the portfolio mainte7 nance fee paid by the Secretary in accordance with

8 section 458;

9 ‘‘(3) the default prevention fee paid in accord10 ance with section 428(l); and

11 ‘‘(4) amounts remaining pursuant to section

12 428(c)(6)(B) from collection on defaulted loans held

13 by the agency, after payment of the Secretary’s equi14 table share, excluding amounts deposited in the Fed15 eral Student Loan Reserve Fund pursuant to section

16 422A(c)(2).

17 ‘‘(d) USES OF FUNDS.—

18 ‘‘(1) IN GENERAL.—Funds in the Operating

19 Fund shall be used for application processing, loan

20 disbursement, enrollment and repayment status man21 agement, default prevention activities (including those

22 described in section 422(h)(8), default collection ac23 tivities, school and lender training, compliance mon24 itoring, and other student financial aid related ac25 tivities as determined by the Secretary.
175

HR 6 EAS

1 ‘‘(2) SPECIAL RULE.—The guaranty agency

2 may, in the agency’s discretion, transfer funds from

3 the Operating Fund to the Federal Student Loan Re4 serve Fund for use pursuant to section 422A. Such

5 transfer shall be irrevocable, and any funds so trans6 ferred shall become the sole property of the United

7 States.

8 ‘‘(3) DEFINITIONS.—For purposes of this sub9 section:

10 ‘‘(A) DEFAULT COLLECTION ACTIVITIES.—

11 The term ‘default collection activities’ means ac12 tivities of a guaranty agency that are directly

13 related to the collection of the loan on which a

14 default claim has been paid to the participating

15 lender, including the attributable compensation

16 of collection personnel (and in the case of person17 nel who perform several functions for such an

18 agency only the portion of the compensation at19 tributable to the collection activity), attorney’s

20 fees, fees paid to collection agencies, postage,

21 equipment, supplies, telephone, and similar

22 charges.

23 ‘‘(B) DEFAULT PREVENTION ACTIVITIES.—

24 The term ‘default prevention activities’ means

25 activities of a guaranty agency, including those
176

HR 6 EAS

1 described in section 422(h)(8), that are directly

2 related to providing collection assistance to the

3 lender on a delinquent loan, prior to the loan’s

4 being in a default status, including the attrib5 utable compensation of appropriate personnel

6 (and in the case of personnel who perform sev7 eral functions for such an agency only the por8 tion of compensation attributable to the default

9 prevention activity), fees paid to locate a miss10 ing borrower, postage, equipment, supplies, tele11 phone, and similar charges.

12 ‘‘(C) ENROLLMENT AND REPAYMENT STATUS

13 MANAGEMENT.—The term ‘enrollment and repay14 ment status management’ means activities of a

15 guaranty agency that are directly related to

16 ascertaining the student’s enrollment status, in17 cluding prompt notification to the lender of such

18 status, an audit of the note or written agreement

19 to determine if the provisions of that note or

20 agreement are consistent with the records of the

21 guaranty agency as to the principal amount of

22 the loan guaranteed, and an examination of the

23 note or agreement to assure that the repayment

24 provisions are consistent with the provisions of

25 this title.
177

HR 6 EAS

1 ‘‘(e) OWNERSHIP OF OPERATING FUND.—The Operat2 ing Fund, with the exception of funds transferred from the

3 Federal Student Loan Reserve Fund in accordance with

4 section 422A(f), shall be considered to be the property of

5 the guaranty agency. The Secretary may not regulate the

6 uses or expenditure of moneys in the Operating Fund, but

7 the Secretary may require such necessary reports and au8 dits as provided in section 428(b)(2). However, during any

9 period in which funds are owed to the Federal Student

10 Loan Reserve Fund as a result of transfer under section

11 422A(f), moneys in the Operating Fund may only be used

12 for expenses related to the student loan programs authorized

13 under this part.’’.

14 SEC. 424. SCOPE AND DURATION OF FEDERAL LOAN INSUR15 ANCE PROGRAM.

16 Section 424(a) (20 U.S.C. 1074(a)) is amended—

17 (1) by striking ‘‘October 1, 2002’’ and inserting

18 ‘‘October 1, 2004’’; and

19 (2) by striking ‘‘September 30, 2006’’ and insert20 ing ‘‘September 30, 2008’’.

21 SEC. 425. APPLICABLE INTEREST RATES.

22 (a) APPLICABLE INTEREST RATES.—

23 (1) AMENDMENT.—Section 427A (20 U.S.C.

24 1077a et seq.) is amended by amending subsection (j)

25 to read as follows:
178

HR 6 EAS

1 ‘‘(j) INTEREST RATES FOR NEW LOANS ON OR AFTER

2 OCTOBER 1, 1998, AND BEFORE JULY 1, 2003.—

3 ‘‘(1) IN GENERAL.—Notwithstanding subsection

4 (h) and subject to paragraph (2), with respect to any

5 loan made, insured, or guaranteed under this part

6 (other than a loan made pursuant to section 428B or

7 428C) for which the first disbursement is made on or

8 after October 1, 1998, and before July 1, 2003, the

9 applicable rate of interest shall, during any 12-month

10 period beginning on July 1 and ending on June 30,

11 be determined on the preceding June 1 and be equal

12 to—

13 ‘‘(A) the bond equivalent rate of 91-day

14 Treasury bills auctioned at the final auction held

15 prior to such June 1; plus

16 ‘‘(B) 2.3 percent,

17 except that such rate shall not exceed 8.25 percent.

18 ‘‘(2) IN SCHOOL AND GRACE PERIOD RULES.—

19 Notwithstanding subsection (h), with respect to any

20 loan under this part (other than a loan made pursu21 ant to section 428B or 428C) for which the first dis22 bursement is made on or after October 1, 1998, and

23 before July 1, 2003, the applicable rate of interest for

24 interest which accrues—
179

HR 6 EAS

1 ‘‘(A) prior to the beginning of the repay2 ment period of the loan; or

3 ‘‘(B) during the period in which principal

4 need not be paid (whether or not such principal

5 is in fact paid) by reason of a provision de6 scribed in section 428(b)(1)(M) or 427(a)(2)(C),

7 shall be determined under paragraph (1) by substitut8 ing ‘1.7 percent’ for ‘2.3 percent’.

9 ‘‘(3) PLUS LOANS.—Notwithstanding subsection

10 (h), with respect to any loan under section 428B for

11 which the first disbursement is made on or after Octo12 ber 1, 1998, and before July 1, 2003, the applicable

13 rate of interest shall be determined under paragraph

14 (1)—

15 ‘‘(A) by substituting ‘3.1 percent’ for ‘2.3

16 percent’; and

17 ‘‘(B) by substituting ‘9.0 percent’ for ‘8.25

18 percent’.

19 ‘‘(4) CONSULTATION.—The Secretary shall deter20 mine the applicable rate of interest under this sub21 section after consultation with the Secretary of the

22 Treasury and shall publish such rate in the Federal

23 Register as soon as practicable after the date of deter24 mination.’’.
180

HR 6 EAS

1 (2) CONFORMING AMENDMENT.—Section

2 428B(d)(4) (20 U.S.C. 1078–2(d)(4)) is amended by

3 striking ‘‘section 427A(c)’’ and inserting ‘‘section

4 427A(j)(3)’’.

5 (b) SPECIAL ALLOWANCES.

6 (1) AMENDMENT.—Section 438(b)(2)(G) (20

7 U.S.C. 1087–1(b)(2)(G)) is amended to read as fol8 lows:

9 ‘‘(G) LOANS DISBURSED BETWEEN OCTOBER

10 1, 1998, AND BEFORE JULY 1, 2003.—

11 ‘‘(i) IN GENERAL.—Subject to para12 graph (4) and clauses (ii), (iii), and (iv) of

13 this subparagraph, and except as provided

14 in subparagraph (B), the special allowance

15 paid pursuant to this subsection on loans

16 for which the first disbursement is made on

17 or after October 1, 1998, and before July 1,

18 2003, shall be computed—

19 ‘‘(I) by determining the average of the

20 bond equivalent rates of 91-day Treasury

21 bills auctioned for such 3-month period;

22 ‘‘(II) by subtracting the applicable in23 terest rates on such loans from such average

24 bond equivalent rate;
181

HR 6 EAS

1 ‘‘(III) by adding 2.8 percent to the re2 sultant percent; and

3 ‘‘(IV) by dividing the resultant percent

4 by 4.

5 ‘‘(ii) IN SCHOOL AND GRACE PERIOD.—In

6 the case of any loan for which the first disburse7 ment is made on or after October 1, 1998, and

8 before July 1, 2003, and for which the applicable

9 rate of interest is described in section 427A(j)(2),

10 clause (i)(III) of this subparagraph shall be ap11 plied by substituting ‘2.2 percent’ for ‘2.8 per12 cent’.

13 ‘‘(iii) PLUS LOANS.—In the case of any

14 loan for which the first disbursement is made on

15 or after October 1, 1998, and before July 1,

16 2003, and for which the applicable rate of inter17 est is described in section 427A(j)(3), clause

18 (i)(III) of this subparagraph shall be applied by

19 substituting ‘3.1 percent’ for ‘2.8 percent’, subject

20 to clause (iv) of this subparagraph.

21 ‘‘(iv) LIMITATION ON SPECIAL ALLOWANCES

22 FOR PLUS LOANS.—In the case of loans disbursed

23 on or after October 1, 1998, and before July 1,

24 2003, for which the interest rate is determined

25 under section 427A(j)(3), a special allowance
182

HR 6 EAS

1 shall not be paid for a loan made under section

2 428B unless the rate determined for any 12-

3 month period under section 427A(j)(3) exceeds 9

4 percent.’’.

5 (2) CONFORMING AMENDMENT.—Section

6 438(b)(2)(C)(ii) is amended by striking ‘‘In the case’’

7 and inserting ‘‘Subject to subparagraph (G), in the

8 case’’.

9 (c) EFFECTIVE DATE.—The amendments made by this

10 section shall apply with respect to any loan made, insured,

11 or guaranteed under part B of title IV of the Higher Edu12 cation Act of 1965 for which the first disbursement is made

13 on or after October 1, 1998, and before July 1, 2003.

14 SEC. 426. FEDERAL PAYMENTS TO REDUCE STUDENT IN15 TEREST COSTS.

16 (a) FEDERAL INTEREST SUBSIDIES.—Section 428(a)

17 (20 U.S.C. 1078(a)) is amended—

18 (1) in paragraph (2)—

19 (A) in subparagraph (A)—

20 (i) in clause (i), by striking subclauses

21 (I), (II), and (III) and inserting the follow22 ing:

23 ‘‘(I) sets forth the loan amount for

24 which the student shows financial need; and
183

HR 6 EAS

1 ‘‘(II) sets forth a schedule for disburse2 ment of the proceeds of the loan in install3 ments, consistent with the requirements of

4 section 428G; and’’; and

5 (ii) by amending clause (ii) to read as

6 follows:

7 ‘‘(ii) meets the requirements of subpara8 graph (B); and’’;

9 (B) by amending subparagraph (B) to read

10 as follows:

11 ‘‘(B) For the purpose of clause (ii) of subpara12 graph (A), a student shall qualify for a portion of an

13 interest payment under paragraph (1) (and a loan

14 amount pursuant to section 428H) if the eligible in15 stitution has determined and documented the stu16 dent’s amount of need for a loan based on the stu17 dent’s estimated cost of attendance, estimated finan18 cial assistance, and, for the purpose of an interest

19 payment pursuant to this section, the expected family

20 contribution (as determined under part F), subject to

21 the provisions of subparagraph (D).’’;

22 (C) by amending subparagraph (C) to read

23 as follows:

24 ‘‘(C) For the purpose of subparagraph (B) and

25 this paragraph—
184

HR 6 EAS

1 ‘‘(i) a student’s cost of attendance shall be

2 determined under section 472;

3 ‘‘(ii) a student’s estimated financial assist4 ance means, for the period for which the loan is

5 sought, the amount of assistance such student

6 will receive under subpart 1 of part A (as deter7 mined in accordance with section 484(b)), sub8 part 3 of part A, parts C and E, and any veter9 ans’ education benefits paid because of enroll10 ment in a postsecondary education institution,

11 including veterans’ education benefits (as defined

12 in section 480(c)), plus other scholarship, grant,

13 or loan assistance; and

14 ‘‘(iii) the determination of need and of the

15 amount of a loan by an eligible institution

16 under subparagraph (B) with respect to a stu17 dent shall, with the exception of loans made

18 under section 428H, be calculated in accordance

19 with part F.’’; and

20 (D) by striking subparagraph (F);

21 (2) in paragraph (3)(A)(v)—

22 (A) in subclause (I), by inserting ‘‘by the

23 institution’’ after ‘‘disbursement’’; and

24 (B) in clause (II), by inserting ‘‘by the in25 stitution’’ after ‘‘disbursement’’; and
185

HR 6 EAS

1 (3) in paragraph (5)—

2 (A) by striking ‘‘September 30, 2002’’ and

3 inserting ‘‘September 30, 2004’’; and

4 (B) by striking ‘‘September 30, 2006’’ and

5 inserting ‘‘September 30, 2008’’.

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 program,

25 and $5,500 for coursework necessary
186

HR 6 EAS

1 for enrollment in a graduate or profes2 sional degree or certification program;

3 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 elemen8 tary or secondary school;’’;

9 (B) by amending subparagraph (E) to read

10 as follows:

11 ‘‘(E) subject to subparagraphs (D) and (L),

12 and except as provided by subparagraph (M),

13 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, the

19 option of repaying the loan in accordance

20 with a graduated, income-sensitive, or ex21 tended repayment schedule (as described in

22 paragraph (9)) established by the lender in

23 accordance with regulations provided by the

24 Secretary; and
187

HR 6 EAS

1 ‘‘(ii) repayment of loans shall be in in2 stallments in accordance with the repay3 ment plan selected under paragraph (9) and

4 commencing at the beginning of the repay5 ment period determined under paragraph

6 (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) or

10 (iii) of paragraph (9)(A),’’ before ‘‘during any’’;

11 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 (except that each lender described

16 in section 435(d)(1)(A)(ii)(III) shall annually

17 submit the results of an audit required by this

18 clause),’’ before ‘‘at least once a year’’;

19 (2) in paragraph (7), by adding at the end the

20 following:

21 ‘‘(D) There shall be excluded from the 6-month

22 period that begins on the date on which a student

23 ceases to carry at least one-half the normal full-time

24 academic workload as described in subparagraph

25 (A)(i) any period not to exceed 3 years during which
188

HR 6 EAS

1 a borrower who is a member of a reserve component

2 of the Armed Forces named in section 10101 of title

3 10, United States Code, is called or ordered to active

4 duty for a period of more than 30 days (as defined

5 in section 101(d)(2) of such title). Such period of ex6 clusion shall include the period necessary to resume

7 enrollment at the borrower’s next available regular

8 enrollment period.’’; and

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

10 ‘‘(9) REPAYMENT PLANS.—

11 ‘‘(A) DESIGN AND SELECTION.—In accord12 ance with regulations promulgated by the Sec13 retary, the lender shall offer a borrower of a loan

14 made under this part the plans described in this

15 subparagraph for repayment of such loan, in16 cluding principal and interest thereon. Except as

17 provided in paragraph (1)(L)(i), no plan may

18 require a borrower to repay a loan in less than

19 5 years. The borrower may choose from—

20 ‘‘(i) a standard repayment plan, with

21 a fixed annual repayment amount paid

22 over a fixed period of time, not to exceed 10

23 years;
189

HR 6 EAS

1 ‘‘(ii) a graduated repayment plan paid

2 over a fixed period of time, not to exceed 10

3 years;

4 ‘‘(iii) an income-sensitive repayment

5 plan, with income-sensitive repayment

6 amounts paid over a fixed period of time,

7 not to exceed 10 years, except that the bor8 rower’s scheduled payments shall not be less

9 than the amount of interest due; and

10 ‘‘(iv) for first-time borrowers on or

11 after the date of enactment of the Higher

12 Education Amendments of 1998 with out13 standing loans under this part totaling

14 more than $30,000, an extended repayment

15 plan, with a fixed annual or graduated re16 payment amount paid over an extended pe17 riod of time, not to exceed 25 years, except

18 that the borrower shall repay annually a

19 minimum amount determined in accord20 ance with paragraph (2)(L).

21 ‘‘(B) LENDER SELECTION OF OPTION IF

22 BORROWER DOES NOT SELECT.—If a borrower of

23 a loan made under this part does not select a re24 payment plan described in subparagraph (A),
190

HR 6 EAS

1 the lender shall provide the borrower with a re2 payment plan described in subparagraph (A)(i).

3 ‘‘(C) CHANGES IN SELECTION.—The bor4 rower of a loan made under this part may

5 change the borrower’s selection of a repayment

6 plan under subparagraph (B), as the case may

7 be, under such conditions as may be prescribed

8 by the Secretary in regulation.

9 ‘‘(D) ACCELERATION PERMITTED.—Under

10 any of the plans described in this paragraph, the

11 borrower shall be entitled to accelerate, without

12 penalty, repayment on the borrower’s loans

13 under this part.’’.

14 (c) GUARANTY AGREEMENTS FOR REIMBURSING

15 LOSSES.—Section 428(c) (20 U.S.C. 1078(c)) is amended—

16 (1) in paragraph (1)—

17 (A) in the fourth sentence of subparagraph

18 (A), by striking ‘‘as reimbursement under this

19 subsection shall be equal to 98 percent’’ and in20 serting ‘‘as reimbursement for loans for which

21 the first disbursement is made on or after the

22 date of enactment of the Higher Education

23 Amendments of 1998 shall be equal to 95 per24 cent’’;

25 (B) in subparagraph (B)—
191

HR 6 EAS

1 (i) in clause (i), by striking ‘‘88 per2 cent of the amount of such excess’’ and in3 serting ‘‘85 percent of the amount of such

4 excess for loans for which the first disburse5 ment is made on or after the date of enact6 ment of the Higher Education Amendments

7 of 1998’’; and

8 (ii) in clause (ii), by striking ‘‘78 per9 cent of the amount of such excess’’ and in10 serting ‘‘75 percent of the amount of such

11 excess for loans for which the first disburse12 ment is made on or after the date of enact13 ment of the Higher Education Amendments

14 of 1998’’;

15 (C) in subparagraph (E)—

16 (i) in clause (i), by striking ‘‘98 per17 cent’’ and inserting ‘‘95 percent’’;

18 (ii) in clause (ii), by striking ‘‘88 per19 cent’’ and inserting ‘‘85 percent’’; and

20 (iii) in clause (iii), by striking ‘‘78

21 percent’’ and inserting ‘‘75 percent’’; and

22 (D) in subparagraph (F)—

23 (i) in clause (i), by striking ‘‘98 per24 cent’’ and inserting ‘‘95 percent’’; and
192

HR 6 EAS

1 (ii) in clause (ii), by striking ‘‘88 per2 cent’’ and inserting ‘‘85 percent’’;

3 (2) in paragraph (2)—

4 (A) in subparagraph (A), by striking ‘‘proof

5 that reasonable attempts were made’’ and insert6 ing ‘‘proof that the institution was contacted and

7 other reasonable attempts were made’’; and

8 (B) in subparagraph (G), by striking ‘‘cer9 tifies to the Secretary that diligent attempts have

10 been made’’ and inserting ‘‘certifies to the Sec11 retary that diligent attempts, including contact

12 with the institution, have been made’’.

13 (3) in paragraph (3)—

14 (A) in subparagraph (A)(i), by inserting

15 ‘‘or electronic’’ after ‘‘written’’;

16 (B) in subparagraph (B), by striking ‘‘and’’

17 after the semicolon;

18 (C) in subparagraph (C), by striking the

19 period and inserting ‘‘; and’’; and

20 (D) by inserting before the matter following

21 subparagraph (C) the following:

22 ‘‘(D) shall contain provisions that specify

23 that forbearance for a period not to exceed 60

24 days may be granted if the lender determines

25 that such a suspension of collection activity is
193

HR 6 EAS

1 warranted following a borrower’s request for for2 bearance in order to collect or process appro3 priate supporting documentation related to the

4 request, and that during such period interest

5 shall not be capitalized.’’;

6 (4) by amending paragraph (6) to read as fol7 lows:

8 ‘‘(6) SECRETARY’S EQUITABLE SHARE.—For the

9 purpose of paragraph (2)(D), the Secretary’s equitable

10 share of payments made by the borrower shall be that

11 portion of the payments remaining after the guaranty

12 agency with which the Secretary has an agreement

13 under this subsection has deducted from such pay14 ments—

15 ‘‘(A) a percentage amount equal to the com16 plement of the reinsurance percentage in effect

17 when payment under the guaranty agreement

18 was made with respect to the loan; and

19 ‘‘(B) an amount equal to 24 percent of such

20 payments for use in accordance with section

21 422B, except that, beginning on September 30,

22 2003, this subparagraph shall be applied by sub23 stituting ‘23 percent’ for ‘24 percent’.’’;

24 (5) in paragraph (8)—
194

HR 6 EAS

1 (A) by striking ‘‘(A) If’’ and inserting ‘‘If’’;

2 and

3 (B) by striking subparagraph (B); and

4 (6) in paragraph (9)—

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

6 ‘‘maintain a current minimum reserve level of at

7 least .5 percent’’ and inserting ‘‘maintain in the

8 agency’s Federal Student Loan Reserve Fund es9 tablished under section 422A a current mini10 mum reserve level of at least 0.25 percent’’;

11 (B) in subparagraph (C)—

12 (i) by striking ‘‘80 percent’’ and in13 serting ‘‘78 percent’’;

14 (ii) by striking ‘‘, as appropriate,’’;

15 and

16 (iii) by striking ‘‘30 working’’ and in17 serting ‘‘45 working’’;

18 (C) in subparagraph (E)—

19 (i) in clause (iv), by inserting ‘‘or’’

20 after the semicolon;

21 (ii) in clause (v), by striking ‘‘; or’’

22 and inserting a period; and

23 (iii) by striking clause (vi);

24 (D) in subparagraph (F), by amending

25 clause (vii) to read as follows:
195

HR 6 EAS

1 ‘‘(vii) take any other action the Secretary

2 determines necessary to avoid disruption of the

3 student loan program, to ensure the continued

4 availability of loans made under this part to

5 residents of each State in which the guaranty

6 agency did business, to ensure the full honoring

7 of all guarantees issued by the guaranty agency

8 prior to the Secretary’s assumption of the func9 tions of such agency, and to ensure the proper

10 servicing of loans guaranteed by the guaranty

11 agency prior to the Secretary’s assumption of the

12 functions of such agency.’’; and

13 (E) in subparagraph (K), by striking ‘‘and

14 the progress of the transition from the loan pro15 grams under this part to the direct student loan

16 programs under part D of this title’’.

17 (d) PAYMENT FOR LENDER REFERRAL SERVICES.—

18 Subsection (e) of section 428 (20 U.S.C. 1078) is repealed.

19 (e) PAYMENT OF CERTAIN COSTS.—Subsection (f) of

20 section 428 (20 U.S.C. 1078) is amended to read as follows:

21 ‘‘(f) PAYMENTS OF CERTAIN COSTS.—

22 ‘‘(1) PAYMENT FOR CERTAIN ACTIVITIES.—

23 ‘‘(A) IN GENERAL.—The Secretary—

24 ‘‘(i) for loans originated on or after

25 October 1, 1998, and before October 1, 2003,
196

HR 6 EAS

1 and in accordance with the provisions of

2 this paragraph, shall pay to each guaranty

3 agency, a loan processing and issuance fee

4 equal to 0.65 percent of the total principal

5 amount of the loans on which insurance

6 was issued under this part during such fis7 cal year by such agency; and

8 ‘‘(ii) for loans originated on or after

9 October 1, 2003, and in accordance with the

10 provisions of this paragraph, shall pay to

11 each guaranty agency, a loan processing

12 and issuance fee equal to 0.40 percent of the

13 total principal amount of the loans on

14 which insurance was issued under this part

15 during such fiscal year by such agency.

16 ‘‘(B) PAYMENT.—The payment required by

17 subparagraph (A) shall be paid on a quarterly

18 basis. The guaranty agency shall be deemed to

19 have a contractual right against the United

20 States to receive payments according to the pro21 visions of this subparagraph. Payments shall be

22 made promptly and without administrative

23 delay to any guaranty agency submitting an ac24 curate and complete application therefore under

25 this subparagraph.’’.
197

HR 6 EAS

1 (f) LENDERS-OF-LAST-RESORT.—Paragraph (3) of

2 section 428(j) (20 U.S.C. 1078(j)) is amended—

3 (1) in the paragraph heading, by striking ‘‘DUR4 ING TRANSITION TO DIRECT LENDING’’; and

5 (2) in subparagraph (A), by striking ‘‘during the

6 transition from the Federal Family Education Loan

7 Program under this part to the Federal Direct Stu8 dent Loan Program under part D of this title’’;

9 (g) DEFAULT AVERSION ASSISTANCE.—Subsection (l)

10 of section 428 (20 U.S.C. 1078) is amended to read as fol11 lows:

12 ‘‘(l) DEFAULT AVERSION ASSISTANCE.—

13 ‘‘(1) ASSISTANCE REQUIRED.—Upon receipt of a

14 proper request from the lender not earlier than the

15 60th nor later than the 90th day of delinquency, a

16 guaranty agency having an agreement with the Sec17 retary under subsection (c) shall engage in default

18 aversion activities designed to prevent the default by

19 a borrower on a loan covered by such agreement.

20 ‘‘(2) DEFAULT PREVENTION FEE REQUIRED.—

21 ‘‘(A) IN GENERAL.—A guaranty agency, in

22 accordance with the provisions of this para23 graph, may transfer from the Federal Student

24 Loan Reserve Fund to the Agency Operating

25 Fund a default prevention fee. Such fee shall be
198

HR 6 EAS

1 paid for any loan on which a claim for default

2 has not been presented that the guaranty agency

3 successfully brings into current repayment status

4 on or before the 300th day after the loan becomes

5 60 days delinquent.

6 ‘‘(B) AMOUNT.—The default prevention fee

7 shall be equal to 1 percent of the total unpaid

8 principal and accrued interest on the loan cal9 culated at the time the request is submitted by

10 the lender. Such fee shall not be paid more than

11 once on any loan for which the guaranty agency

12 averts the default unless the borrower remained

13 current in payments for at least 24 months prior

14 to the subsequent delinquency. A guaranty agen15 cy may transfer such fees earned under this sub16 section not more frequently than monthly.

17 ‘‘(C) DEFINITION OF CURRENT REPAYMENT

18 STATUS.—For the purpose of this paragraph, the

19 term ‘current repayment status’ means that the

20 borrower is not delinquent, in any respect, in the

21 payment of principal and interest on the loan at

22 the time the guaranty agency qualifies for the de23 fault prevention fee.’’.

24 (h) STATE SHARE OF DEFAULT COSTS.—Subsection

25 (n) of section 428 (20 U.S.C. 1078) is repealed.
199

HR 6 EAS

1 SEC. 427. VOLUNTARY FLEXIBLE AGREEMENTS WITH GUAR2 ANTY AGENCIES.

3 Part B of title IV (20 U.S.C. 1071 et seq.) is amended

4 by inserting after section 428 (20 U.S.C. 1078) the follow5 ing:

6 ‘‘SEC. 428A. VOLUNTARY FLEXIBLE AGREEMENTS WITH

7 GUARANTY AGENCIES.

8 ‘‘(a) VOLUNTARY AGREEMENTS.—

9 ‘‘(1) AUTHORITY.—The Secretary may enter into

10 a voluntary, flexible agreement, subject to paragraph

11 (2), with guaranty agencies under this section, in lieu

12 of agreements with a guaranty agency under sub13 sections (b) and (c) of section 428. The Secretary may

14 waive or modify any requirement under such sub15 sections, except that the Secretary may not waive any

16 statutory requirement pertaining to the terms and

17 conditions attached to student loans, default claim

18 payments made to lenders, or the prohibitions on in19 ducements contained in section 428(b)(3).

20 ‘‘(2) ELIGIBILITY.—During fiscal years 1999,

21 2000, and 2001, the Secretary may enter into a vol22 untary, flexible agreement with not more than 6 guar23 anty agencies that had 1 or more agreements with the

24 Secretary under subsections (b) and (c) of section 428

25 as of the day before the date of enactment of the High26 er Education Amendments of 1998. Beginning in fis-
200

HR 6 EAS

1 cal year 2002, any guaranty agency or consortium

2 thereof may enter into a similar agreement with the

3 Secretary.

4 ‘‘(3) REPORT REQUIRED.—Not later than Sep5 tember 30, 2001, the Secretary shall report to the

6 Committee on Labor and Human Resources of the

7 Senate and the Committee on Education and the

8 Workforce of the House of Representatives regarding

9 the impact that the voluntary flexible agreements have

10 had upon program integrity, program and cost effi11 ciencies, and the availability and delivery of student

12 financial aid. Such report shall include—

13 ‘‘(A) a description of each voluntary flexible

14 agreement and the performance goals established

15 by the Secretary for each agreement;

16 ‘‘(B) a list of participating guaranty agen17 cies and the specific statutory or regulatory

18 waivers provided to each guaranty agency;

19 ‘‘(C) a description of the standards by

20 which each agency’s performance under the agen21 cy’s voluntary flexible agreement was assessed

22 and the degree to which each agency achieved the

23 performance standards; and
201

HR 6 EAS

1 ‘‘(D) an analysis of the fees paid by the

2 Secretary, and the costs and efficiencies achieved

3 under each voluntary agreement.

4 ‘‘(b) TERMS OF AGREEMENT.—An agreement between

5 the Secretary and a guaranty agency under this section—

6 ‘‘(1) shall be developed by the Secretary, in con7 sultation with the guaranty agency, on a case-by case

8 basis;

9 ‘‘(2) may be secured by the parties;

10 ‘‘(3) may only include provisions—

11 ‘‘(A) specifying the responsibilities of the

12 guaranty agency under the agreement, with re13 spect to—

14 ‘‘(i) administering the issuance of in15 surance on loans made under this part on

16 behalf of the Secretary;

17 ‘‘(ii) monitoring insurance commit18 ments made under this part;

19 ‘‘(iii) default aversion activities;

20 ‘‘(iv) review of default claims made by

21 lenders;

22 ‘‘(v) payment of default claims;

23 ‘‘(vi) collection of defaulted loans;

24 ‘‘(vii) adoption of internal systems of

25 accounting and auditing that are acceptable
202

HR 6 EAS

1 to the Secretary, and reporting the result

2 thereof to the Secretary in a timely manner,

3 and on an accurate, and auditable basis;

4 ‘‘(viii) timely and accurate collection

5 and reporting of such other data as the Sec6 retary may require to carry out the pur7 poses of the programs under this title;

8 ‘‘(ix) monitoring of institutions and

9 lenders participating in the program under

10 this part; and

11 ‘‘(x) informational outreach to schools

12 and students in support of access to higher

13 education;

14 ‘‘(B) regarding the fees the Secretary shall

15 pay, in lieu of revenues that the guaranty agen16 cy may otherwise receive under this part, to the

17 guaranty agency under the agreement, and other

18 funds that the guaranty agency may receive or

19 retain under the agreement, except that in no

20 case may the cost to the Secretary of the agree21 ment, as reasonably projected by the Secretary,

22 exceed the cost to the Secretary, as similarly pro23 jected, in the absence of the agreement;

24 ‘‘(C) regarding the use of net revenues, as

25 described in the agreement under this section, for
203

HR 6 EAS

1 such other activities in support of postsecondary

2 education as may be agreed to by the Secretary

3 and the guaranty agency;

4 ‘‘(D) regarding the standards by which the

5 guaranty agency’s performance of the agency’s

6 responsibilities under the agreement will be as7 sessed, and the consequences for a guaranty

8 agency’s failure to achieve a specified level of

9 performance on one or more performance stand10 ards;

11 ‘‘(E) regarding the circumstances in which

12 a guaranty agency’s agreement under this sec13 tion may be ended in advance of the agreement’s

14 expiration date;

15 ‘‘(F) regarding such other businesses, pre16 viously purchased or developed with reserve

17 funds, that relate to the program under this part

18 and in which the Secretary permits the guaranty

19 agency to engage; and

20 ‘‘(G) such other provisions as the Secretary

21 may determine to be necessary to protect the

22 United States from the risk of unreasonable loss

23 and to promote the purposes of this part;
204

HR 6 EAS

1 ‘‘(4) shall provide for uniform lender participa2 tion with the guaranty agency under the terms of the

3 agreement; and

4 ‘‘(5) shall not prohibit or restrict borrowers from

5 selecting a lender of the borrower’s choosing, subject to

6 the prohibitions and restrictions applicable to the se7 lection under this Act.

8 ‘‘(c) PUBLIC NOTICE.—

9 ‘‘(1) IN GENERAL.—The Secretary shall publish

10 in the Federal Register a notice to all guaranty agen11 cies that sets forth—

12 ‘‘(A) an invitation for the guaranty agen13 cies to enter into agreements under this section;

14 and

15 ‘‘(B) the criteria that the Secretary will use

16 for selecting the guaranty agencies with which

17 the Secretary will enter into agreements under

18 this section.

19 ‘‘(2) AGREEMENT NOTICE.—The Secretary shall

20 notify the Chairperson and the Ranking Minority

21 Members of the Committee on Labor and Human Re22 sources of the Senate, and the Committee on Edu23 cation and Workforce of the House of Representatives,

24 and shall publish a notice in the Federal Register,

25 with a request for public comment, at least 30 days
205

HR 6 EAS

1 prior to concluding an agreement under this section.

2 The notice shall contain—

3 ‘‘(A) a description of the voluntary flexible

4 agreement and the performance goals established

5 by the Secretary for the agreement;

6 ‘‘(B) a list of participating guaranty agen7 cies and the specific statutory or regulatory

8 waivers provided to each guaranty agency;

9 ‘‘(C) a description of the standards by

10 which each guaranty agency’s performance under

11 the agreement will be assessed; and

12 ‘‘(D) a description of the fees that will be

13 paid to each participating guaranty agency.

14 ‘‘(3) PUBLIC AVAILABILITY.—The text of any vol15 untary flexible agreement, and any subsequent revi16 sions, shall be readily available to the public.

17 ‘‘(4) MODIFICATION NOTICE.—The Secretary

18 shall notify the Chairperson and the Ranking Minor19 ity Member of the Committee on Labor and Human

20 Resources of the Senate, and the Committee on Edu21 cation and Workforce of the House of Representatives

22 30 days prior to any modifications to an agreement

23 under this section.

24 ‘‘(d) TERMINATION.—At the expiration or early termi25 nation of an agreement under this section, the Secretary
206

HR 6 EAS

1 shall reinstate the guaranty agency’s prior agreements

2 under subsections (b) and (c) of section 428, subject only

3 to such additional requirements as the Secretary determines

4 to be necessary in order to ensure the efficient transfer of

5 responsibilities between the agreement under this section

6 and the agreements under subsections (b) and (c) of section

7 428, and including the guaranty agency’s compliance with

8 reserve requirements under sections 422 and 428.’’.

9 SEC. 428. FEDERAL PLUS LOANS.

10 Section 428B (20 U.S.C. 1078–2) is amended—

11 (1) by amending subsection (a) to read as fol12 lows:

13 ‘‘(a) AUTHORITY TO BORROW.—

14 ‘‘(1) AUTHORITY AND ELIGIBILITY.—Parents of a

15 dependent student shall be eligible to borrow funds

16 under this section in amounts specified in subsection

17 (b), if—

18 ‘‘(A) the parents do not have an adverse

19 credit history as determined pursuant to regula20 tions promulgated by the Secretary; and

21 ‘‘(B) the parents meet such other eligibility

22 criteria as the Secretary may establish by regu23 lation, after consultation with guaranty agen24 cies, eligible lenders, and other organizations in25 volved in student financial assistance.
207

HR 6 EAS

1 ‘‘(2) TERMS, CONDITIONS, AND BENEFITS.—Ex2 cept as provided in subsections (c), (d), and (e), loans

3 made under this section shall have the same terms,

4 conditions, and benefits as all other loans made under

5 this part.

6 ‘‘(3) SPECIAL RULE.—Whenever necessary to

7 carry out the provisions of this section, the terms

8 ‘‘student’’ and ‘‘borrower’’ as used in this part shall

9 include a parent borrower under this section.’’; and

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

11 ‘‘(f) VERIFICATION OF IMMIGRATION STATUS AND SO12 CIAL SECURITY NUMBER.—A parent who wishes to borrow

13 funds under this section shall be subject to verification of

14 the parent’s—

15 ‘‘(1) immigration status in the same manner as

16 immigration status is verified for students under sec17 tion 484(g); and

18 ‘‘(2) social security number in the same manner

19 as social security numbers are verified for students

20 under section 484(p).’’.

21 SEC. 429. FEDERAL CONSOLIDATION LOANS.

22 (a) IN GENERAL.—Section 428C(a)(3) (20 U.S.C.

23 1078–3(a)(3)) is amended—
208

HR 6 EAS

1 (1) by amending subparagraph (A) to read as

2 follows: ‘‘(A) For the purpose of this section, the term

3 ‘eligible borrower’ means a borrower who—

4 ‘‘(i) is not subject to a judgment secured

5 through litigation or an order for wage garnish6 ment under section 488A; or

7 ‘‘(ii) at the time of application for a con8 solidation loan—

9 ‘‘(I) is in repayment status;

10 ‘‘(II) is in a grace period preceding re11 payment; or

12 ‘‘(III) is a defaulted borrower who has

13 made arrangements to repay the obligation

14 on the defaulted loans satisfactory to the

15 holders of the defaulted loans.’’; and

16 (2) in subparagraph (B)(i)—

17 (A) in subclause (I), by striking ‘‘and’’ after

18 the semicolon;

19 (B) by redesignating subclause (II) as sub20 clause (III);

21 (C) by inserting after subclause (I) the fol22 lowing:

23 ‘‘(II) with respect to eligible student loans

24 received prior to the date of consolidation that

25 the borrower may wish to include with eligible
209

HR 6 EAS

1 loans specified in subclause (I) in a later con2 solidation loan; and’’; and

3 (D) in subclause (III) (as redesignated by

4 subparagraph (B)—

5 (i) by striking ‘‘that loans’’ and insert6 ing ‘‘with respect to loans’’; and

7 (ii) by inserting ‘‘that’’ before ‘‘may be

8 added’’.

9 (b) DATE CHANGE.—Section 428C(e) (20 U.S.C.

10 1078–3(e)) is amended by striking ‘‘September 30, 2002’’

11 and inserting ‘‘September 30, 2004’’.

12 SEC. 430. REQUIREMENTS FOR DISBURSEMENTS OF STU13 DENT LOANS.

14 (a) IN GENERAL.—Section 428G (20 U.S.C. 1078G)

15 is amended—

16 (1) in subsection (a)(1), by striking ‘‘The pro17 ceeds’’ and inserting ‘‘Except for a loan made for the

18 final period of enrollment, that is less than an aca19 demic year, in a student’s baccalaureate program of

20 study, at an institution with a cohort default rate (as

21 calculated under section 435(m)) that is 5 percent or

22 less, the proceeds’’;

23 (2) in subsection (b)(1), by striking ‘‘The first’’

24 and inserting ‘‘Except for a loan made to a student

25 borrower entering an institution with a cohort default
210

HR 6 EAS

1 rate (as calculated under section 435(m)) of less than

2 5 percent, the first’’; and

3 (3) in subsection (e)—

4 (A) by striking ‘‘or made’’ and inserting ‘‘,

5 made’’; and

6 (B) by inserting ‘‘, or made to a student to

7 cover the cost of attendance in a program of

8 study abroad approved by the home eligible in9 stitution if the home eligible institution has a co10 hort default rate (as calculated under section

11 435(m)) of less than 5 percent’’ before the period.

12 (b) EFFECTIVE DATE.—The amendment made by sub13 section (a)(2) shall be effective during the period beginning

14 on October 1, 1998, and ending on September 30, 2002.

15 SEC. 431. DEFAULT REDUCTION PROGRAM.

16 The heading for subsection (b) of section 428F (20

17 U.S.C. 1078–6) is amended by striking ‘‘SPECIAL RULE’’

18 and inserting ‘‘SATISFACTORY REPAYMENT ARRANGE19 MENTS TO RENEW ELIGIBILITY’’.

20 SEC. 432. UNSUBSIDIZED LOANS.

21 (a) IN GENERAL.—Section 428H (20 U.S.C. 1078–8)

22 is amended—

23 (1) by amending subsection (b) to read as fol24 lows:
211

HR 6 EAS

1 ‘‘(b) ELIGIBLE BORROWERS.—Any student meeting

2 the requirements for student eligibility under section 484

3 (including graduate and professional students as defined in

4 regulations promulgated by the Secretary) shall be entitled

5 to borrow an unsubsidized Stafford loan if the eligible insti6 tution at which the student has been accepted for enroll7 ment, or at which the student is in attendance, has—

8 ‘‘(1) determined and documented the student’s

9 need for the loan based on the student’s estimated cost

10 of attendance (as determined under section 472) and

11 the student’s estimated financial assistance, including

12 a loan which qualifies for interest subsidy payments

13 under section 428; and

14 ‘‘(2) provided the lender a statement—

15 ‘‘(A) certifying the eligibility of the student

16 to receive a loan under this section and the

17 amount of the loan for which such student is eli18 gible, in accordance with subsection (c); and

19 ‘‘(B) setting forth a schedule for disburse20 ment of the proceeds of the loan in installments,

21 consistent with the requirements of section

22 428G.’’;

23 (2) in subsection (d)—

24 (A) in paragraph (2)—
212

HR 6 EAS

1 (i) in the matter preceding subpara2 graph (A)—

3 (I) by inserting ‘‘, as defined in

4 section 481(d)(2),’’ after ‘‘academic

5 year’’; and

6 (II) by striking ‘‘or in any period

7 of 7 consecutive months, whichever is

8 longer,’’;

9 (ii) in subparagraph (C), by inserting

10 ‘‘and’’ after the semicolon; and

11 (iii) by inserting before the matter fol12 lowing subparagraph (C) the following:

13 ‘‘(D) in the case of a student enrolled in

14 coursework specified in sections 484(b)(3)(B) and

15 484(b)(4)(B)—

16 ‘‘(i) $4,000 for coursework necessary

17 for enrollment in an undergraduate degree

18 or certificate program, and $5,000 for

19 coursework necessary for enrollment in a

20 graduate or professional program; and

21 ‘‘(ii) $5,000 for coursework necessary

22 for a professional credential or certification

23 from a State required for employment as a

24 teacher in an elementary or secondary

25 school;’’; and
213

HR 6 EAS

1 (B) in paragraph (3), by adding at the end

2 the following: ‘‘The maximum aggregate amount

3 shall not include interest capitalized from an in4 school period.’’;

5 (3) in subsection (e)—

6 (A) by amending paragraph (2) to read as

7 follows:

8 ‘‘(2) CAPITALIZATION OF INTEREST.—Interest on

9 loans made under this section for which payments of

10 principal are not required during the in-school and

11 grace periods or for which payments are deferred

12 under sections 427(a)(2)(C) and 428(b)(1)(M) shall, if

13 agreed upon by the borrower and the lender—

14 ‘‘(A) be paid monthly or quarterly; or

15 ‘‘(B) be added to the principal amount of

16 the loan by the lender only—

17 ‘‘(i) when the loan enters repayment;

18 ‘‘(ii) at the expiration of a grace pe19 riod, in the case of a loan that qualifies for

20 a grace period;

21 ‘‘(iii) at the expiration of a period of

22 deferment; or

23 ‘‘(iv) when the borrower defaults.’’; and

24 (B) in paragraph (6), by striking ‘‘10 year

25 repayment period under section 428(b)(1)(D)’’
214

HR 6 EAS

1 and inserting ‘‘repayment period under section

2 428(b)(9)’’.

3 (b) SENSE OF THE SENATE ON LOAN LIMIT FLEXIBIL4 ITY.—

5 (1) FINDINGS.—The Senate finds that—

6 (A) due to the annual borrowing ceilings on

7 the Federal student loan programs, increasing

8 numbers of needy students are borrowing from

9 more expensive private sector loan programs

10 than from the Federal loan programs;

11 (B) according to the College Board, in aca12 demic year 1996–1997, students borrowed ap13 proximately $1,200,000,000 from private sector

14 loan programs;

15 (C) the alternative private sector loan pro16 grams are not only more expensive, but the in17 terest rates are not capped, leaving students vul18 nerable to higher monthly payments when inter19 est rates increase; and

20 (D) with more flexible Federal annual loan

21 ceilings, students could be kept in Federal stu22 dent loan programs, thereby making available to

23 the students the debt management advantages of

24 loan consolidation and alternative repayment

25 options that are available under Federal student
215

HR 6 EAS

1 loan programs, and lowering the costs of month2 ly payments.

3 (2) SENSE OF THE SENATE.—It is the sense of

4 the Senate that Congress should consider the growing

5 problem described in paragraph (1) by continuing to

6 examine the potential for adding borrowing flexibility

7 to the annual, but not the aggregate, amounts that

8 both undergraduate and graduate students are al9 lowed to borrow under section 428H of the Higher

10 Education Act of 1965.

11 SEC. 433. LOAN FORGIVENESS FOR TEACHERS.

12 Section 428J (20 U.S.C. 1078–10) is amended to read

13 as follows:

14 ‘‘SEC. 428J. LOAN FORGIVENESS FOR TEACHERS.

15 ‘‘(a) STATEMENT OF PURPOSE.—It is the purpose of

16 this section to encourage individuals to enter and continue

17 in the teaching profession.

18 ‘‘(b) PROGRAM AUTHORIZED.—The Secretary is au19 thorized to carry out a program, through the holder of the

20 loan, of assuming the obligation to repay a qualifying loan

21 made under section 428 that is eligible for interest subsidy,

22 for any new borrower on or after October 1, 1998, who—

23 ‘‘(1) has been employed as a full-time teacher for

24 3 consecutive complete school years—
216

HR 6 EAS

1 ‘‘(A) in a school that qualifies under section

2 465(a)(2)(A) for loan cancellation for Perkins

3 loan recipients who teach in such schools;

4 ‘‘(B) if employed as a secondary school

5 teacher, is teaching a subject area that is rel6 evant to the borrower’s academic major as cer7 tified by the chief administrative officer of the

8 public or nonprofit private secondary school in

9 which the borrower is employed; and

10 ‘‘(C) if employed as an elementary school

11 teacher, has demonstrated, in accordance with

12 State teacher certification or licensing require13 ments and as certified by the chief administra14 tive officer of the public or nonprofit private ele15 mentary school in which the borrower is em16 ployed, knowledge and teaching skills in reading,

17 writing, mathematics and other areas of the ele18 mentary school curriculum; and

19 ‘‘(2) is not in default on a loan for which the

20 borrower seeks forgiveness.

21 ‘‘(c) QUALIFYING LOANS.—For purposes of this sec22 tion, a loan is a qualifying loan if—

23 ‘‘(1) the loan was obtained to cover the cost of

24 instruction for an academic year after the first and

25 second years of undergraduate education; and
217

HR 6 EAS

1 ‘‘(2) the loan did not cover the costs of instruc2 tion for more than 2 academic years, or 3 academic

3 years in the case of a program of instruction nor4 mally requiring 5 years to complete.

5 ‘‘(d) REGULATIONS.—The Secretary is authorized to

6 issue such regulations as may be necessary to carry out the

7 provisions of this section.

8 ‘‘(e) LOAN REPAYMENT DURING CONTINUING TEACH9 ING SERVICE.—

10 ‘‘(1) IN GENERAL.—The Secretary shall assume

11 the obligation to repay through reimbursement to the

12 holder—

13 ‘‘(A) 30 percent of the total outstanding

14 amount and applicable interest of subsidized

15 Federal Stafford loans that are qualifying loans

16 and are owed by the student borrower after the

17 completion of the fourth or fifth complete school

18 year of service described in subsection (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 $8,000.
218

HR 6 EAS

1 ‘‘(2) CONSTRUCTION.—Nothing in this section

2 shall be construed to authorize any refunding of any

3 repayment of a loan.

4 ‘‘(f) LIST.—If the list of schools in which a teacher

5 may perform service pursuant to subsection (b) is not avail6 able before May 1 of any year, the Secretary may use the

7 list for the year preceding the year for which the determina8 tion is made to make such service determination.

9 ‘‘(g) CONTINUED ELIGIBILITY.—Any teacher who per10 forms 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 teach

15 in such school and shall be eligible for loan forgiveness

16 pursuant to subsection (b).’’.

17 SEC. 434. LOAN FORGIVENESS FOR CHILD CARE PROVID18 ERS.

19 Part B (20 U.S.C. 1071 et seq.) is amended by insert20 ing after section 428J (as added by section 433) (20 U.S.C.

21 1078–10) the following:

22 ‘‘SEC. 428K. LOAN FORGIVENESS FOR CHILD CARE PROVID23 ERS.

24 ‘‘(a) PURPOSE.—It is the purpose of this section—
219

HR 6 EAS

1 ‘‘(1) to bring more highly trained individuals

2 into the early child care profession; and

3 ‘‘(2) to keep more highly trained child care pro4 viders in the early child care field for longer periods

5 of time.

6 ‘‘(b) DEFINITIONS.—In this section:

7 ‘‘(1) CHILD CARE FACILITY.—The term ‘child

8 care facility’ means a facility, including a home,

9 that—

10 ‘‘(A) provides child care services; and

11 ‘‘(B) meets applicable State or local govern12 ment licensing, certification, approval, or reg13 istration requirements, if any.

14 ‘‘(2) CHILD CARE SERVICES.—The term ‘child

15 care services’ means activities and services provided

16 for the education and care of children from birth

17 through age 5 by an individual who has a degree in

18 early childhood education.

19 ‘‘(3) DEGREE.—The term ‘degree’ means an as20 sociate’s or bachelor’s degree awarded by an institu21 tion of higher education.

22 ‘‘(4) EARLY CHILDHOOD EDUCATION.—The term

23 ‘early childhood education’ means education in the

24 areas of early child education, child care, or any
220

HR 6 EAS

1 other educational area related to child care that the

2 Secretary determines appropriate.

3 ‘‘(5) INSTITUTION OF HIGHER EDUCATION.—The

4 term ‘institution of higher education’ has the meaning

5 given the term in section 101.

6 ‘‘(c) DEMONSTRATION PROGRAM.—

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

8 a demonstration program of assuming the obligation

9 to repay, pursuant to subsection (d), a loan made, in10 sured or guaranteed under this part or part D (ex11 cluding loans made under sections 428B and 428C)

12 for any new borrower after the date of enactment of

13 the Higher Education Amendments of 1998, who—

14 ‘‘(A) completes a degree in early childhood

15 education;

16 ‘‘(B) obtains employment in a child care fa17 cility; and

18 ‘‘(C) has worked full time for the 2 consecu19 tive years preceding the year for which the deter20 mination is made as a child care provider in a

21 low-income community.

22 ‘‘(2) LOW-INCOME COMMUNITY.—For the pur23 poses of this subsection, the term ‘low-income commu24 nity’ means a community in which 70 percent of
221

HR 6 EAS

1 households within the community earn less than 85

2 percent of the State median household income.

3 ‘‘(3) AWARD BASIS; PRIORITY.—

4 ‘‘(A) AWARD BASIS.—Subject to subpara5 graph (B), loan repayment under this section

6 shall be on a first-come, first-served basis and

7 subject to the availability of appropriations.

8 ‘‘(B) PRIORITY.—The Secretary shall give

9 priority in providing loan repayment under this

10 section for a fiscal year to student borrowers who

11 received loan repayment under this section for

12 the preceding fiscal year.

13 ‘‘(4) REGULATIONS.—The Secretary is author14 ized to prescribe such regulations as may be necessary

15 to carry out the provisions of this section.

16 ‘‘(d) LOAN REPAYMENT.—

17 ‘‘(1) IN GENERAL.—The Secretary shall assume

18 the obligation to repay—

19 ‘‘(A) after the second consecutive year of

20 employment described in subparagraphs (B) and

21 (C) of subsection (c)(1), 20 percent of the total

22 amount of all loans made after date of enactment

23 of the Higher Education Amendments of 1998, to

24 a student under this part or part D;
222

HR 6 EAS

1 ‘‘(B) after the third consecutive year of such

2 employment, 20 percent of the total amount of

3 all such loans; and

4 ‘‘(C) after each of the fourth and fifth con5 secutive years of such employment, 30 percent of

6 the total amount of all such loans.

7 ‘‘(2) CONSTRUCTION.—Nothing in this section

8 shall be construed to authorize the refunding of any

9 repayment of a loan made under this part or part D.

10 ‘‘(3) INTEREST.—If a portion of a loan is repaid

11 by the Secretary under this section for any year, the

12 proportionate amount of interest on such loan which

13 accrues for such year shall be repaid by the Secretary.

14 ‘‘(4) SPECIAL RULE.—In the case where a stu15 dent borrower who is not participating in loan repay16 ment pursuant to this section returns to an institu17 tion of higher education after graduation from an in18 stitution of higher education for the purpose of ob19 taining a degree in early childhood education, the

20 Secretary is authorized to assume the obligation to

21 repay the total amount of loans made under this part

22 or part D incurred for a maximum of two academic

23 years in returning to an institution of higher edu24 cation for the purpose of obtaining a degree in early

25 childhood education. Such loans shall only be repaid
223

HR 6 EAS

1 for borrowers who qualify for loan repayment pursu2 ant to the provisions of this section, and shall be re3 paid in accordance with the provisions of paragraph

4 (1).

5 ‘‘(5) INELIGIBILITY OF NATIONAL SERVICE

6 AWARD RECIPIENTS.—No student borrower may, for

7 the same volunteer service, receive a benefit under

8 both this section and subtitle D of title I of the Na9 tional and Community Service Act of 1990 (42

10 U.S.C. 12601 et seq.).

11 ‘‘(e) REPAYMENT TO ELIGIBLE LENDERS.—The Sec12 retary shall pay to each eligible lender or holder for each

13 fiscal year an amount equal to the aggregate amount of

14 loans which are subject to repayment pursuant to this sec15 tion for such year.

16 ‘‘(f) APPLICATION FOR REPAYMENT.—

17 ‘‘(1) IN GENERAL.—Each eligible individual de18 siring loan repayment under this section shall submit

19 a complete and accurate application to the Secretary

20 at such time, in such manner, and containing such

21 information as the Secretary may require.

22 ‘‘(2) CONDITIONS.—An eligible individual may

23 apply for loan repayment under this section after

24 completing each year of qualifying employment. The

25 borrower shall receive forbearance while engaged in
224

HR 6 EAS

1 qualifying employment unless the borrower is in

2 deferment while so engaged.

3 ‘‘(g) EVALUATION.—

4 ‘‘(1) IN GENERAL.—The Secretary shall conduct,

5 by grant or contract, an independent national evalua6 tion of the impact of the demonstration program as7 sisted under this section on the field of early child8 hood education.

9 ‘‘(2) COMPETITIVE BASIS.—The grant or con10 tract described in subsection (b) shall be awarded on

11 a competitive basis.

12 ‘‘(3) CONTENTS.—The evaluation described in

13 this subsection shall—

14 ‘‘(A) determine the number of individuals

15 who were encouraged by the demonstration pro16 gram assisted under this section to pursue early

17 childhood education;

18 ‘‘(B) determine the number of individuals

19 who remain employed in a child care facility as

20 a result of participation in the program;

21 ‘‘(C) identify the barriers to the effectiveness

22 of the program;

23 ‘‘(D) assess the cost-effectiveness of the pro24 gram in improving the quality of—

25 ‘‘(i) early childhood education; and
225

HR 6 EAS

1 ‘‘(ii) child care services;

2 ‘‘(E) identify the reasons why participants

3 in the program have chosen to take part in the

4 program;

5 ‘‘(F) identify the number of individuals

6 participating in the program who received an

7 associate’s degree and the number of such indi8 viduals who received a bachelor’s degree; and

9 ‘‘(G) identify the number of years each in10 dividual participates in the program.

11 ‘‘(4) INTERIM AND FINAL EVALUATION RE12 PORTS.—The Secretary shall prepare and submit to

13 the President and the Congress such interim reports

14 regarding the evaluation described in this subsection

15 as the Secretary deems appropriate, and shall prepare

16 and so submit a final report regarding the evaluation

17 by January 1, 2002.

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.’’.

22 SEC. 435. NOTICE TO SECRETARY AND PAYMENT OF LOSS.

23 The third sentence of section 430(a) (20 U.S.C.

24 1080(a)) is amended by inserting ‘‘the institution was con25 tacted and other’’ after ‘‘submit proof that’’.
226

HR 6 EAS

1 SEC. 436. COMMON FORMS AND FORMATS.

2 Section 432 (20 U.S.C. 1082) is amended—

3 (1) in subsection (m)(1)—

4 (A) in subparagraph (A), by striking ‘‘a

5 common application form and promissory note’’

6 and inserting ‘‘common application forms and

7 promissory notes, or master promissory notes,’’;

8 (B) by striking subparagraph (C);

9 (C) by redesignating subparagraph (D) as

10 subparagraph (C); and

11 (D) in subparagraph (C) (as redesignated

12 by subparagraph (C))—

13 (i) by inserting ‘‘, application and

14 other’’ after ‘‘electronic’’; and

15 (ii) by adding at the end the following:

16 ‘‘Guaranty agencies, borrowers, and lenders

17 may use electronically printed versions of

18 common forms approved for use by the Sec19 retary.’’; and

20 (2) in subsection (p), by striking ‘‘State post21 secondary reviewing entities designated under subpart

22 1 of part H,’’.

23 SEC. 437. STUDENT LOAN INFORMATION BY ELIGIBLE

24 LENDERS.

25 Section 433 (20 U.S.C. 1083) is amended—
227

HR 6 EAS

1 (1) in subsection (a), by amending the matter

2 preceding paragraph (1) to read as follows:

3 ‘‘(a) REQUIRED DISCLOSURE BEFORE DISBURSE4 MENT.—Each eligible lender shall, at or prior to the time

5 such lender disburses a loan that is insured or guaranteed

6 under this part (other than a loan made under section

7 428C), provide thorough and accurate loan information on

8 such loan to the borrower. Any disclosure required by this

9 subsection may be made by an eligible lender by written

10 or electronic means, including as part of the application

11 material provided to the borrower, as part of the promissory

12 note evidencing the loan, or on a separate written form pro13 vided to the borrower. Each lender shall provide a telephone

14 number, and may provide an electronic address, to each

15 borrower through which additional loan information can

16 be obtained. The disclosure shall include—’’; and

17 (2) in subsection (b), by amending the matter

18 preceding paragraph (1) to read as follows:

19 ‘‘(b) REQUIRED DISCLOSURE BEFORE REPAYMENT.—

20 Each eligible lender shall, at or prior to the start of the

21 repayment period of the student borrower on loans made,

22 insured, or guaranteed under this part, disclose to the bor23 rower by written or electronic means the information re24 quired under this subsection. Each eligible lender shall pro25 vide a telephone number, and may provide an electronic
228

HR 6 EAS

1 address, to each borrower through which additional loan in2 formation can be obtained. For any loan made, insured,

3 or guaranteed under this part, other than a loan made

4 under section 428B or 428C, such disclosure required by

5 this subsection shall be made not less than 30 days nor more

6 than 240 days before the first payment on the loan is due

7 from the borrower. The disclosure shall include—’’.

8 SEC. 438. DEFINITIONS.

9 (a) ELIGIBLE INSTITUTION.—Section 435(a) (20

10 U.S.C. 1085(a)) is amended—

11 (1) in paragraph (2)—

12 (A) by adding after the matter following

13 subparagraph (A)(ii) the following:

14 ‘‘If an institution continues to participate in a pro15 gram under this part, and the institution’s appeal of

16 the loss of eligibility is unsuccessful, the institution

17 shall be required to pay to the Secretary an amount

18 equal to the amount of interest, special allowance, re19 insurance, and any related payments made by the

20 Secretary (or which the Secretary is obligated to

21 make) with respect to loans made under this part to

22 students attending, or planning to attend, that insti23 tution during the pendency of such appeal. In order

24 to continue to participate during an appeal under

25 this paragraph, the institution shall provide a letter
229

HR 6 EAS

1 of credit in favor of the Secretary or other third-party

2 financial guarantees satisfactory to the Secretary in

3 an amount determined by the Secretary to be suffi4 cient to satisfy the institution’s potential liability on

5 such loans under the preceding sentence.’’; and

6 (B) by amending subparagraph (C) to read

7 as follows:

8 ‘‘(C)(i) This paragraph shall not apply to any

9 institution described in clause (ii), and any such in10 stitution that exceeds the threshold percentage in sub11 paragraph (A)(ii) for 2 consecutive years shall submit

12 to the Secretary a default management plan satisfac13 tory to the Secretary and containing criteria de14 signed, in accordance with the regulations of the Sec15 retary, to demonstrate continuous improvement by the

16 institution in the institution’s cohort default rate. If

17 the institution fails to submit the required plan, or to

18 satisfy the criteria in the plan, the institution shall

19 be subject to a loss of eligibility in accordance with

20 this paragraph, except as the Secretary may otherwise

21 specify in regulations.

22 ‘‘(ii) An institution referred to in clause (i) is—

23 ‘‘(I) a part B institution within the mean24 ing of section 322(2);
230

HR 6 EAS

1 ‘‘(II) a Tribally Controlled College or Uni2 versity within the meaning of section 2(a)(4) of

3 the Tribally Controlled College or University As4 sistance Act of 1978; or

5 ‘‘(III) a Navajo Community College under

6 the Navajo Community College Act.’’;

7 (2) in the matter following subparagraph (C)—

8 (A) by inserting ‘‘for a reasonable period of

9 time, not to exceed 30 days,’’ after ‘‘access’’; and

10 (B) by striking ‘‘of the affected guaranty

11 agencies and loan servicers for a reasonable pe12 riod of time, not to exceed 30 days’’ and insert13 ing ‘‘used by a guaranty agency in determining

14 whether to pay a claim on a defaulted loan’’;

15 and

16 (3) by adding at the end the following:

17 ‘‘(4) PARTICIPATION RATE INDEX.—

18 ‘‘(A) IN GENERAL.—An institution that

19 demonstrates to the Secretary that the institu20 tion’s participation rate index is equal to or less

21 than 0.0375 for any of the 3 applicable partici22 pation rate indices shall not be subject to para23 graph (2). The participation rate index shall be

24 determined by multiplying the institution’s co25 hort default rate for loans under part B or D,
231

HR 6 EAS

1 or weighted average cohort default rate for loans

2 under parts B and D, by the percentage of the

3 institution’s regular students, enrolled on at least

4 a half-time basis, who received a loan made

5 under part B or D for a 12-month period ending

6 during the 6 months immediately preceding the

7 fiscal year for which the cohort of borrowers used

8 to calculate the institution’s cohort default rate

9 is determined.

10 ‘‘(B) DATA.—An institution shall provide

11 the Secretary with sufficient data to determine

12 the institution’s participation rate index within

13 30 days after receiving an initial notification of

14 the institution’s draft cohort default rate.

15 ‘‘(C) NOTIFICATION.—Prior to publication

16 of a final cohort default rate for an institution

17 that provides the data described in subparagraph

18 (B), the Secretary shall notify the institution of

19 the institution’s compliance or noncompliance

20 with subparagraph (A).’’.

21 (b) EFFECTIVE DATE.—The amendment made by sub22 section (a)(1)(B) shall be effective during the period begin23 ning on the date of enactment of this Act and ending on

24 September 30, 2002.
232

HR 6 EAS

1 (c) ELIGIBLE LENDER.—Section 435(d)(1)(A)(ii) (20

2 U.S.C. 1085(d)(1)(A)(ii) is amended—

3 (1) by striking ‘‘or’’ after ‘‘1992,’’; and

4 (2) by inserting before the semicolon the follow5 ing: ‘‘, or (III) it is a bank (as defined in section

6 3(a)(1) of the Federal Deposit Insurance Act (12

7 U.S.C. 1813(a)(1)) that is a wholly owned subsidiary

8 of a nonprofit foundation, the foundation is described

9 in section 501(c)(3) of the Internal Revenue Code of

10 1986 and exempt from taxation under section 501(1)

11 of such Code, and the bank makes loans under this

12 part only to undergraduate students who are age 22

13 or younger and has a portfolio of such loans that is

14 not more than $5,000,000’’.

15 (d) DEFINITION OF DEFAULT.—

16 (1) AMENDMENT.—Section 435(l) (20 U.S.C.

17 1085l) is amended—

18 (A) by striking ‘‘180 days’’ and inserting

19 ‘‘270 days’’; and

20 (B) by striking ‘‘240 days’’ and inserting

21 ‘‘330 days’’.

22 (2) EFFECTIVE DATE.—The amendment made by

23 paragraph (1) shall apply with respect to loans for

24 which the first day of delinquency occurs on or after

25 the date of enactment of this Act.
233

HR 6 EAS

1 (e) COHORT DEFAULT RATE.—Section 435(m)(1)(B)

2 (20 U.S.C. 1085(m)(1)(B)) is amended by striking ‘‘insur3 ance, and, in considering appeals with respect to cohort de4 fault rates pursuant to subsection (a)(3), exclude’’ and in5 serting ‘‘insurance. In considering appeals with respect to

6 cohort default rates pursuant to subsection (a)(3), the Sec7 retary shall exclude, from the calculation of the number of

8 students who entered repayment and from the calculation

9 of the number of students who default,’’.

10 (f) PUBLICATION DATE.—Section 435(m)(4) (20

11 U.S.C. 1085(m)(4)) is amended by adding at the end the

12 following:

13 ‘‘(D) The Secretary shall publish the report de14 scribed in subparagraph (C) by September 30 of each

15 year.’’.

16 SEC. 439. STUDY OF THE EFFECTIVENESS OF COHORT DE17 FAULT RATES FOR INSTITUTIONS WITH FEW

18 STUDENT LOAN BORROWERS.

19 Part A of title IV (20 U.S.C. 1071 et seq.) is amended

20 by adding after section 435 the following:

21 ‘‘SEC. 435A. STUDY OF THE EFFECTIVENESS OF COHORT DE22 FAULT RATES FOR INSTITUTIONS WITH FEW

23 STUDENT LOAN BORROWERS.

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

25 a study of the effectiveness of cohort default rates as an indi-
234

HR 6 EAS

1 cator of administrative capability and program quality for

2 institutions of higher education at which less than 15 per3 cent of students eligible to borrow participate in the Federal

4 student loan programs under this title and fewer than 30

5 borrowers enter repayment in any fiscal year. At a mini6 mum, the study shall include—

7 ‘‘(1) identification of the institutions included in

8 the study and of the student populations the institu9 tions serve;

10 ‘‘(2) analysis of cohort default rates as indicators

11 of administrative shortcomings and program quality

12 at the institutions;

13 ‘‘(3) analysis of the effectiveness of cohort default

14 rates as a means to prevent fraud and abuse in the

15 programs assisted under this title;

16 ‘‘(4) analysis of the extent to which the institu17 tions with high cohort default rates are no longer par18 ticipants in the Federal student loan programs under

19 this title; and

20 ‘‘(5) analysis of the costs incurred by the Depart21 ment for the calculation, publication, correction, and

22 appeal of cohort default rates for the institutions in

23 relation to any benefits to taxpayers.
235

HR 6 EAS

1 ‘‘(b) CONSULTATION.—In conducting the study de2 scribed in subsection (a), the Secretary shall consult with

3 institutions of higher education.

4 ‘‘(c) REPORT TO CONGRESS.—The Secretary shall re5 port to the Committee on Labor and Human Resources of

6 the Senate and the Committee on Education and the Work7 force of the House of Representatives not later than Septem8 ber 30, 1999, regarding the results of the study described

9 in subsection (a).’’.

10 SEC. 440. DELEGATION OF FUNCTIONS.

11 Section 436 (20 U.S.C. 1086) is amended to read as

12 follows:

13 ‘‘SEC. 436. DELEGATION OF FUNCTIONS.

14 ‘‘(a) IN GENERAL.—An eligible lender or guaranty

15 agency that contracts with another entity to perform any

16 of the lender’s or agency’s functions under this title, or oth17 erwise delegates the performance of such functions to such

18 other entity—

19 ‘‘(1) shall not be relieved of the lender’s or agen20 cy’s duty to comply with the requirements of this

21 title; and

22 ‘‘(2) shall monitor the activities of such other en23 tity for compliance with such requirements.

24 ‘‘(b) SPECIAL RULE.—A lender that holds a loan made

25 under part B in the lender’s capacity as a trustee is respon-
236

HR 6 EAS

1 sible for complying with all statutory and regulatory re2 quirements imposed on any other holder of a loan made

3 under this part.’’.

4 SEC. 440A. SPECIAL ALLOWANCES.

5 (a) AMENDMENTS.—Section 438 (20 U.S.C. 1087–1)

6 is amended—

7 (1) in subsection (c), by amending paragraph

8 (1) to read as follows:

9 ‘‘(1) DEDUCTION FROM INTEREST AND SPECIAL

10 ALLOWANCE SUBSIDIES.—(A) Notwithstanding sub11 section (b), the Secretary shall collect the amount the

12 lender is authorized to charge as an origination fee

13 in accordance with paragraph (2) of this subsection—

14 ‘‘(i) by reducing the total amount of interest

15 and special allowance payable under section

16 428(a)(3)(A) and subsection (b) of this section,

17 respectively, to any holder; or

18 ‘‘(ii) directly from the holder of the loan, if

19 the lender fails or is not required to bill the Sec20 retary for interest and special allowance or with21 draws from the program with unpaid loan origi22 nation fees.

23 ‘‘(B) If the Secretary collects the origination fee

24 under this subsection through the reduction of interest

25 and special allowance, and the total amount of inter-
237

HR 6 EAS

1 est and special allowance payable under section

2 428(a)(3)(A) and subsection (b) of this section, respec3 tively, is less than the amount the lender was author4 ized to charge borrowers for origination fees in that

5 quarter, the Secretary shall deduct the excess amount

6 from the subsequent quarters’ payments until the total

7 amount has been deducted.’’;

8 (2) in subsection (d), by amending paragraph

9 (1) to read as follows:

10 ‘‘(1) DEDUCTION FROM INTEREST AND SPECIAL

11 ALLOWANCE SUBSIDIES.—

12 ‘‘(A) IN GENERAL.—Notwithstanding sub13 section (b), the Secretary shall collect a loan fee

14 in an amount determined in accordance with

15 paragraph (2)—

16 ‘‘(i) by reducing the total amount of

17 interest and special allowance payable

18 under section 428(a)(3)(A) and subsection

19 (b), respectively, to any holder of a loan; or

20 ‘‘(ii) directly from the holder of the

21 loan, if the lender—

22 ‘‘(I) fails or is not required to bill

23 the Secretary for interest and special

24 allowance payments; or
238

HR 6 EAS

1 ‘‘(II) withdraws from the program

2 with unpaid loan fees.

3 ‘‘(B) SPECIAL RULE.—If the Secretary col4 lects loan fees under this subsection through the

5 reduction of interest and special allowance pay6 ments, and the total amount of interest and spe7 cial allowance payable under section

8 428(a)(3)(A) and subsection (b), respectively, is

9 less than the amount of such loan fees, then the

10 Secretary shall deduct the amount of the loan fee

11 balance from the amount of interest and special

12 allowance payments that would otherwise be

13 payable, in subsequent quarterly increments

14 until the balance has been deducted.’’; and

15 (3) in subsection (e)—

16 (A) by striking paragraphs (1) and (2); and

17 (B) by redesignating paragraphs (3) and

18 (4) as paragraphs (1) and (2), respectively.

19 (b) CONFORMING AMENDMENT.—Section 432(f)(1)(D)

20 is amended by striking ‘‘required to file a plan for doing

21 business under section 438(d)’’ and inserting ‘‘that meets

22 the requirements of section 438(e)’’.
239

HR 6 EAS

1 SEC. 440B. STUDY OF MARKET-BASED MECHANISMS FOR DE2 TERMINING STUDENT LOAN INTEREST

3 RATES.

4 (a) STUDY REQUIRED.—

5 (1) IN GENERAL.—The Secretary of the Treasury

6 shall conduct a study of the feasibility of employing

7 market-based mechanisms, including some form of

8 auction, for determining student loan interest rates

9 under title IV of the Higher Education Act of 1965

10 (20 U.S.C. 1070 et seq.). The study shall include—

11 (A) analysis of the potential impact of the

12 mechanisms on the delivery of student financial

13 aid;

14 (B) analysis of the implications of the

15 mechanisms with respect to student and institu16 tional access to student loan capital;

17 (C) analysis of the potential impact of the

18 mechanisms on the costs of the programs under

19 such title for students and the Federal Govern20 ment; and

21 (D) a plan for structuring and implement22 ing the mechanisms in such a manner that en23 sures the cost-effective availability of student

24 loans for students and their families.

25 (b) CONSULTATION.—In conducting the study de26 scribed in paragraph (1), the Secretary shall consult with
240

HR 6 EAS

1 lenders, secondary markets, guaranty agencies, institutions

2 of higher education, student loan borrowers, and other par3 ticipants in the student loan programs under title IV of

4 the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.).

5 (c) REPORT TO CONGRESS.—The Secretary of the

6 Treasury shall report to the Committee on Labor and

7 Human Resources of the Senate, and the Committee on

8 Education and the Workforce of the House of Representa9 tives not later than September 30, 1999, regarding the re10 sults of the study described in subsection (a).

11 PART C—FEDERAL WORK-STUDY PROGRAMS

12 SEC. 441. AUTHORIZATION OF APPROPRIATIONS; COMMU13 NITY SERVICES.

14 Section 441 (20 U.S.C. 2751) is amended—

15 (1) in subsection (b), by striking ‘‘$800,000,000

16 for fiscal year 1993’’ and inserting ‘‘$900,000,000 for

17 fiscal year 1999’’; and

18 (2) in subsection (c)—

19 (A) in paragraph (1), by inserting ‘‘(in20 cluding child care services provided on campus)’’

21 after ‘‘child care’’; and

22 (B) in paragraph (3), by inserting ‘‘, in23 cluding students with disabilities who are en24 rolled at the institution’’ before the semicolon.
241

HR 6 EAS

1 SEC. 442. GRANTS FOR FEDERAL WORK-STUDY PROGRAMS.

2 Section 443(b) (20 U.S.C. 2753(b)) is amended—

3 (1) in paragraph (1), by inserting ‘‘, including

4 internships or research assistanceships as determined

5 by the Secretary,’’ after ‘‘part-time employment’’;

6 (2) by amending paragraph (3) to read as fol7 lows:

8 ‘‘(3) provide that in the selection of students for

9 employment under such work-study program, only

10 students who demonstrate financial need in accord11 ance with part F of this title and meet the require12 ments of section 484 will be assisted, except that if the

13 institution’s grant under this part is directly or indi14 rectly based in part on the financial need dem15 onstrated by students who are (A) attending the insti16 tution on less than a full-time basis, or (B) independ17 ent students, a reasonable portion of the allocation

18 shall be made available to such students;’’;

19 (3) in paragraph (5)—

20 (A) by striking ‘‘provide that’’ and insert21 ing ‘‘(A) provide that’’;

22 (B) by striking ‘‘1993–1994’’ and inserting

23 ‘‘1999–2000’’; and

24 (C) by inserting ‘‘and (B) provide that the

25 Federal share of the compensation of students

26 employed in community service shall not exceed
242

HR 6 EAS

1 90 percent for academic years 1999–2000 and

2 succeeding academic years,’’ after ‘‘academic

3 years,’’; and

4 (4) in paragraph (6), by striking ‘‘, and to

5 make’’ and all that follows through ‘‘such employ6 ment’’.

7 SEC. 443. WORK COLLEGES.

8 Section 448 (20 U.S.C. 2756b) is amended—

9 (1) in subsection (b)(2)—

10 (A) in subparagraph (C), by striking ‘‘and’’

11 after the semicolon;

12 (B) in subparagraph (D)(ii), by striking the

13 period and inserting a semicolon; and

14 (C) by adding at the end the following:

15 ‘‘(E) coordinate and carry out joint projects

16 and activities to promote work service learning;

17 and

18 ‘‘(F) carry out a comprehensive, longitu19 dinal study of student academic progress and

20 academic and career outcomes, relative to stu21 dent self-sufficiency in financing their higher

22 education, repayment of student loans, continued

23 community service, kind and quality of service

24 performed, and career choice and community

25 service selected after graduation.’’; and
243

HR 6 EAS

1 (2) in subsection (f), by striking ‘‘$5,000,000 for

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

3 year 1999’’.

4 PART D—WILLIAM D. FORD FEDERAL DIRECT

5 LOAN PROGRAM

6 SEC. 451. SELECTION OF INSTITUTIONS.

7 Section 453(c) (20 U.S.C. 1087c(c)) is amended—

8 (1) in paragraph (2)—

9 (A) in the paragraph heading, by striking

10 ‘‘TRANSITION’’;

11 (B) by striking subparagraph (E); and

12 (C) by redesignating subparagraphs (F),

13 (G), and (H) as subparagraphs (E), (F), and

14 (G), respectively; and

15 (2) in paragraph (3)—

16 (A) in the paragraph heading, by striking

17 ‘‘AFTER TRANSITION’’; and

18 (B) by striking ‘‘For academic year 1995–

19 1996 and subsequent academic years, the’’ and

20 inserting ‘‘The’’.

21 SEC. 452. TERMS AND CONDITIONS.

22 (a) DIRECT LOAN INTEREST RATES.—Section 455(b)

23 (20 U.S.C. 1087e(b)) is amended by amending paragraph

24 (5) to read as follows:

25 ‘‘(5) INTEREST RATE PROVISION.—
244

HR 6 EAS

1 ‘‘(A) RATES FOR FDSL AND FDUSL.—Not2 withstanding the preceding paragraphs of this

3 subsection, for Federal Direct Unsubsidized Staf4 ford/Ford Loans for which the first disbursement

5 is made on or after October 1, 1998, and before

6 July 1, 2003, the applicable rate of interest shall,

7 during any 12-month period beginning on July

8 1 and ending on June 30, be determined on the

9 preceding June 1 and be equal to—

10 ‘‘(i) the bond equivalent rate of 91-day

11 Treasury bills auctioned at the final auc12 tion held prior to such June 1; plus

13 ‘‘(ii) 2.3 percent,

14 except that such rate shall not exceed 8.25 per15 cent.

16 ‘‘(B) IN SCHOOL AND GRACE PERIOD

17 RULES.—Notwithstanding the preceding para18 graphs of this subsection, with respect to any

19 Federal Direct Stafford/Ford Loan or Federal

20 Direct Unsubsidized Stafford/Ford Loan for

21 which the first disbursement is made on or after

22 October 1, 1998, and before July 1, 2003, the ap23 plicable rate of interest for interest which ac24 crues—
245

HR 6 EAS

1 ‘‘(i) prior to the beginning of the re2 payment period of the loan; or

3 ‘‘(ii) during the period in which prin4 cipal need not be paid (whether or not such

5 principal is in fact paid) by reason of a

6 provision described in section 428(b)(1)(M)

7 or 427(a)(2)(C),

8 shall be determined under subparagraph (A) by

9 substituting ‘1.7 percent’ for ‘2.3 percent’.

10 ‘‘(C) PLUS LOANS.—Notwithstanding the

11 preceding paragraphs of this subsection, with re12 spect to Federal Direct PLUS Loan for which

13 the first disbursement is made on or after Octo14 ber 1, 1998, and before July 1, 2003, the appli15 cable rate of interest shall be determined under

16 subparagraph (A)—

17 ‘‘(i) by substituting ‘3.1 percent’ for

18 ‘2.3 percent’; and

19 ‘‘(ii) by substituting ‘9.0 percent’ for

20 ‘8.25 percent’.’’.

21 (b) EFFECTIVE DATE.—The amendments made by sub22 section (a) shall apply with respect to any loan made under

23 part D of title IV of the Higher Education Act of 1965 for

24 which the first disbursement is made on or after October

25 1, 1998, and before July 1, 2003.
246

HR 6 EAS

1 (c) REPAYMENT INCENTIVES.—Section 455(b) (20

2 U.S.C. 1087e(b)) is amended further by adding at the end

3 the following:

4 ‘‘(7) REPAYMENT INCENTIVES.—

5 ‘‘(A) IN GENERAL.—Notwithstanding any

6 other provision of this part, the Secretary is au7 thorized to prescribe by regulation such reduc8 tions in the interest rate paid by a borrower of

9 a loan made under this part as the Secretary de10 termines appropriate to encourage on-time re11 payment of the loan. Such reductions may be of12 fered only if the Secretary determines the reduc13 tions are cost neutral and in the best financial

14 interest of the Federal Government. Any increase

15 in subsidy costs resulting from such reductions

16 shall be completely offset by corresponding sav17 ings in funds available for the William D. Ford

18 Federal Direct Loan Program in that fiscal year

19 from section 458 and other administrative ac20 counts.

21 ‘‘(B) ACCOUNTABILITY.—The Secretary

22 shall ensure the cost neutrality of such reductions

23 by obtaining an official report from the Director

24 of the Office of Management and Budget and the

25 Director of the Congressional Budget Office that
247

HR 6 EAS

1 any such reductions will be completely cost neu2 tral. The reports shall be transmitted to the Com3 mittee on Labor and Human Resources of the

4 Senate and the Committee on Education and the

5 Workforce of the House of Representatives not

6 less than 60 days prior to the publication of reg7 ulations proposing such reductions.’’.

8 SEC. 453. CONTRACTS.

9 Section 456(b) (20 U.S.C. 1087f(b)) is amended—

10 (1) in paragraph (3), by inserting ‘‘and’’ after

11 the semicolon;

12 (2) by striking paragraph (4); and

13 (3) by redesignating paragraph (5) as para14 graph (4).

15 SEC. 454. FUNDS FOR ADMINISTRATIVE EXPENSES.

16 Section 458 (20 U.S.C. 1087h) is amended—

17 (1) by amending subsection (a) to read as fol18 lows:

19 ‘‘(a) ADMINISTRATIVE EXPENSES.—

20 ‘‘(1) IN GENERAL.—Each fiscal year there shall

21 be available to the Secretary, from funds not other22 wise appropriated, funds to be obligated for—

23 ‘‘(A) administrative costs under this part

24 and part B, including the costs of the direct stu25 dent loan programs under this part; and
248

HR 6 EAS

1 ‘‘(B) account maintenance fees payable to

2 guaranty agencies under part B and calculated

3 in accordance with subsections (b) and (c),

4 not to exceed (from such funds not otherwise appro5 priated) $612,000,000 in fiscal year 1999,

6 $730,000,000 in fiscal year 2000, $765,000,000 in fis7 cal year 2001, $770,000,000 in fiscal year 2002, and

8 $785,000,000 in fiscal year 2003.

9 ‘‘(2) ACCOUNT MAINTENANCE FEES.—Account

10 maintenance fees under paragraph (1)(B) shall be

11 paid quarterly and deposited in the Agency Operat12 ing Fund established under section 422B.

13 ‘‘(3) CARRYOVER.—The Secretary may carry

14 over funds made available under this section to a sub15 sequent fiscal year.’’;

16 (2) by amending subsection (b) to read as fol17 lows:

18 ‘‘(b) CALCULATION BASIS.—Except as provided in

19 subsection (c), account maintenance fees payable to guar20 anty agencies under paragraph (1)(B) shall be calculated—

21 ‘‘(1) for fiscal years 1999 and 2000, on the basis

22 of 0.12 percent of the original principal amount of

23 outstanding loans on which insurance was issued

24 under part B; and
249

HR 6 EAS

1 ‘‘(2) for fiscal year 2001, 2002, and 2003, on the

2 basis of 0.10 percent of the original principal amount

3 of outstanding loans on which insurance was issued

4 under part B.’’;

5 (3) by redesignating subsections (c) and (d) as

6 subsections (d) and (e), respectively; and

7 (4) by inserting after subsection (b) the follow8 ing:

9 ‘‘(c) SPECIAL RULES.—

10 ‘‘(1) FEE CAP.—The total amount of account

11 maintenance fees payable under this section—

12 ‘‘(A) for fiscal year 1999, shall not exceed

13 $177,000,000;

14 ‘‘(B) for fiscal year 2000, shall not exceed

15 $180,000,000;

16 ‘‘(C) for fiscal year 2001, shall not exceed

17 $170,000,000;

18 ‘‘(D) for fiscal year 2002, shall not exceed

19 $180,000,000; and

20 ‘‘(E) for fiscal year 2003, shall not exceed

21 $195,000,000.

22 ‘‘(2) INSUFFICIENT FUNDING.—

23 ‘‘(A) IN GENERAL.—Notwithstanding sec24 tion 422A(d), if the amount made available

25 under subsection (a) is insufficient to pay the ac-
250

HR 6 EAS

1 count maintenance fees payable to guaranty

2 agencies under paragraph (1) for a fiscal year,

3 the Secretary shall pay the insufficiency by re4 quiring guaranty agencies to transfer funds from

5 the Federal Student Loan Reserve Funds under

6 section 422A to the Agency Operating Funds

7 under section 422B.

8 ‘‘(B) ENTITLEMENT.—A guaranty agency

9 shall be deemed to have a contractual right

10 against the United States to receive payments

11 according to the provisions of subparagraph

12 (A).’’.

13 SEC. 455. LOAN CANCELLATION FOR TEACHERS.

14 Part D of title IV (20 U.S.C. 1087a et seq.) is amended

15 by adding at the end the following:

16 ‘‘SEC. 459. LOAN CANCELLATION FOR TEACHERS.

17 ‘‘(a) STATEMENT OF PURPOSE.—It is the purpose of

18 this section to encourage individuals to enter and continue

19 in the teaching profession.

20 ‘‘(b) PROGRAM AUTHORIZED.—The Secretary is au21 thorized to carry out a program of canceling the obligation

22 to repay a Federal Direct Stafford/Ford Loan made under

23 this part that is eligible for an interest subsidy and is a

24 qualifying loan, for any new borrower on or after October

25 1, 1998, who—
251

HR 6 EAS

1 ‘‘(1) has been employed as a full-time teacher for

2 3 consecutive complete school years—

3 ‘‘(A) in a school that qualifies under section

4 465(a)(2)(A) for loan cancellation for Perkins

5 loan recipients who teach in such schools;

6 ‘‘(B) if employed as a secondary school

7 teacher, is teaching a subject area that is rel8 evant to the borrower’s academic major as cer9 tified by the chief administrative officer of the

10 public or non-profit private secondary school in

11 which the borrower is employed; and

12 ‘‘(C) if employed as an elementary school

13 teacher, has demonstrated, in accordance with

14 State teacher certification or licensing require15 ments and as certified by the chief administra16 tive officer of the public or nonprofit private ele17 mentary school in which the borrower is em18 ployed, knowledge and teaching skills in reading,

19 writing, mathematics and other areas of the ele20 mentary school curriculum; and

21 ‘‘(2) is not in default on a loan for which the

22 borrower seeks forgiveness.

23 ‘‘(c) QUALIFYING LOANS.—For purposes of this sec24 tion, a loan is a qualifying loan if—
252

HR 6 EAS

1 ‘‘(1) the loan was obtained to cover the cost of

2 instruction for an academic year after the first and

3 second years of undergraduate education; and

4 ‘‘(2) the loan did not cover the costs of instruc5 tion for more than 2 academic years, or 3 academic

6 years in the case of a program of instruction nor7 mally requiring 5 years to complete.

8 ‘‘(d) REGULATIONS.—The Secretary is authorized to

9 issue such regulations as may be necessary to carry out the

10 provisions of this section.

11 ‘‘(e) LOAN CANCELLATION DURING CONTINUING

12 TEACHING SERVICE.—

13 ‘‘(1) IN GENERAL.—The Secretary shall cancel

14 the obligation to repay—

15 ‘‘(A) 30 percent of the total outstanding

16 amount and applicable interest of subsidized

17 Federal Direct Stafford/Ford loans that are

18 qualifying loans and are owed by the student

19 borrower after the completion of the fourth or

20 fifth complete school year of service described in

21 subsection (b);

22 ‘‘(B) 40 percent of such total amount after

23 the completion of the sixth complete school year

24 of such service; and
253

HR 6 EAS

1 ‘‘(C) a total amount for any borrower that

2 shall not exceed $8,000.

3 ‘‘(2) CONSTRUCTION.—Nothing in this section

4 shall be construed to authorize any refunding of any

5 canceled loan.

6 ‘‘(f) LIST.—If the list of schools in which a teacher

7 may perform service pursuant to subsection (b) is not avail8 able before May 1 of any year, the Secretary may use the

9 list for the year preceding the year for which the determina10 tion is made to make such service determination.

11 ‘‘(g) CONTINUED ELIGIBILITY.—Any teacher who per12 forms service in a school that—

13 ‘‘(1) meets the requirements of subsection

14 (b)(1)(A) in any year during such service; and

15 ‘‘(2) in a subsequent year fails to meet the re16 quirements of such subsection, may continue to teach

17 in such school and shall be eligible for loan cancella18 tion pursuant to subsection (b).’’.

19 PART E—FEDERAL PERKINS LOANS

20 SEC. 461. AUTHORIZATION OF APPROPRIATIONS.

21 Subsection (b) of section 461 (20 U.S.C. 1087aa) is

22 amended—

23 (1) in paragraph (1), by striking ‘‘1993’’ and in24 serting ‘‘1999’’; and
254

HR 6 EAS

1 (2) in paragraph (2), by striking ‘‘1997’’ each

2 place the term appears and inserting ‘‘2003’’.

3 SEC. 462. ALLOCATION OF FUNDS.

4 (a) AMENDMENTS.—Section 462 (20 U.S.C. 1087bb) is

5 amended—

6 (1) in the matter preceding subparagraph (A) of

7 subsection (d)(3), by striking ‘‘the Secretary, for’’ and

8 all that follows through ‘‘years,’’;

9 (2) by amending subsection (f) to read as follows:

10 ‘‘(f) DEFAULT PENALTIES.—

11 ‘‘(1) IN GENERAL.—For fiscal year 1998 and

12 any succeeding fiscal year, any institution with a co13 hort default rate (as defined under subsection (h))

14 that equals or exceeds 25 percent shall have a default

15 penalty of zero.

16 ‘‘(2) INELIGIBILITY.—

17 ‘‘(A) IN GENERAL.—For fiscal year 1998

18 and any succeeding fiscal year, any institution

19 with a cohort default rate (as defined in sub20 section (h)) that equals or exceeds 50 percent for

21 each of the 3 most recent years for which data

22 are available shall not be eligible to participate

23 in a program under this part for the fiscal year

24 for which the determination is made and the 2

25 succeeding fiscal years, unless, within 30 days of
255

HR 6 EAS

1 receiving notification from the Secretary of the

2 loss of eligibility under this paragraph, the insti3 tution appeals the loss of eligibility to the Sec4 retary. The Secretary shall issue a decision on

5 any such appeal within 45 days after the sub6 mission of the appeal. Such decision may permit

7 the institution to continue to participate in a

8 program under this part if—

9 ‘‘(i) the institution demonstrates to the

10 satisfaction of the Secretary that the cal11 culation of the institution’s cohort default

12 rate is not accurate, and that recalculation

13 would reduce the institution’s cohort default

14 rate for any of the 3 fiscal years below 50

15 percent; or

16 ‘‘(ii) there are, in the judgment of the

17 Secretary, exceptional mitigating cir18 cumstances such as a small number of bor19 rowers entering repayment, that would

20 make the application of this subparagraph

21 inequitable.

22 ‘‘(B) CONTINUED PARTICIPATION.—During

23 an appeal under subparagraph (A), the Sec24 retary may permit the institution to continue to

25 participate in a program under this part.
256

HR 6 EAS

1 ‘‘(C) DEFINITION.—For the purposes of sub2 paragraph (A), the term ‘loss of eligibility’ shall

3 be defined as the mandatory liquidation of an

4 institution’s student loan fund, and assignment

5 of the institution’s outstanding loan portfolio to

6 the Secretary.’’;

7 (3) by amending paragraph (1) of subsection (g)

8 to read as follows: ‘‘(1) For award year 1998 and

9 subsequent years, the maximum cohort default rate is

10 25 percent.’’; and

11 (4) in subsection (h)—

12 (A) in the subsection heading, by striking

13 ‘‘DEFINITIONS OF DEFAULT RATE AND’’ and in14 serting ‘‘DEFINITION OF’’;

15 (B) by striking paragraphs (1) and (2);

16 (C) by redesignating paragraphs (3) and

17 (4) as paragraphs (1) and (2), respectively;

18 (D) in paragraph (1) (as redesignated by

19 subparagraph (C))—

20 (i) by striking subparagraph (B); and

21 (ii) by redesignating subparagraphs

22 (C) through (G) as subparagraphs (B)

23 through (F), respectively; and

24 (E) in the matter preceding subparagraph

25 (A) of paragraph (2) (as redesignated by sub-
257

HR 6 EAS

1 paragraph (C)), by striking ‘‘A loan’’ and insert2 ing ‘‘For purposes of calculating the cohort de3 fault rate under this subsection, a loan’’.

4 (b) CONFORMING AMENDMENTS.—Section 462 (20

5 U.S.C. 1087bb) is amended—

6 (1) in the matter following paragraphs (1)(B)

7 and (2)(D)(ii) of subsection (a), by inserting ‘‘cohort’’

8 before ‘‘default’’ each place the term appears;

9 (2) in the matter following paragraphs (2)(B)

10 and (3)(C) of subsection (c), by inserting ‘‘cohort’’ be11 fore ‘‘default’’ each place the term appears;

12 (3) in subsection (e)(2), by inserting ‘‘cohort’’ be13 fore ‘‘default’’; and

14 (4) in subsection (h)(1)(F) (as redesignated by

15 subparagraphs (C) and (D)(ii) of subsection (a)(4)),

16 by inserting ‘‘cohort’’ before ‘‘default’’.

17 SEC. 463. AGREEMENTS WITH INSTITUTIONS OF HIGHER

18 EDUCATION.

19 Section 463 (20 U.S.C. 1087cc) is amended—

20 (1) by amending subparagraph (B) of subsection

21 (a)(2) to read as follows:

22 ‘‘(B) a capital contribution by an institu23 tion in an amount equal to one-third of the Fed24 eral capital contributions described in subpara25 graph (A);’’;
258

HR 6 EAS

1 (2) in subsection (c)—

2 (A) in paragraph (2)—

3 (i) in the matter preceding subpara4 graph (A), by striking ‘‘by the Secretary’’

5 and all that follows through ‘‘of—’’ and in6 serting ‘‘by the Secretary or an institution,

7 as the case may be, to such organizations,

8 with respect to any loan held by the Sec9 retary or the institution, respectively,

10 of—’’;

11 (ii) by amending subparagraph (A) to

12 read as follows:

13 ‘‘(A) the date of disbursement and the

14 amount of such loans made to any borrower

15 under this part at the time of disbursement of

16 the loan;’’;

17 (iii) in subparagraph (B)—

18 (I) by inserting ‘‘the repayment

19 and’’ after ‘‘concerning’’; and

20 (II) by striking ‘‘any defaulted’’

21 and inserting ‘‘such’’; and

22 (iv) in subparagraph (C), by inserting

23 ‘‘, or upon cancellation or discharge of the

24 borrower’s obligation on the loan for any

25 reason’’ before the period;
259

HR 6 EAS

1 (B) in paragraph (3)—

2 (i) in the matter preceding subpara3 graph (A), by striking ‘‘until—’’ and in4 serting ‘‘until the loan is paid in full.’’; and

5 (ii) by striking subparagraphs (A) and

6 (B); and

7 (C) by amending paragraph (4) to read as

8 follows:

9 ‘‘(4)(A) Except as provided in subparagraph

10 (B), an institution of higher education, after con11 sultation with the Secretary and pursuant to the

12 agreements entered into under paragraph (1), shall

13 disclose at least annually to any credit bureau orga14 nization with which the Secretary has such an agree15 ment the information set forth in paragraph (2), and

16 shall disclose promptly to such credit bureau organi17 zation any changes to the information previously dis18 closed.

19 ‘‘(B) The Secretary may promulgate regulations

20 establishing criteria under which an institution of

21 higher education may cease reporting the information

22 described in paragraph (2) before a loan is paid in

23 full.’’.

24 SEC. 464. TERMS OF LOANS.

25 Section 464 (20 U.S.C. 1087dd) is amended—
260

HR 6 EAS

1 (1) in subsection (a), by amending paragraph

2 (2) to read as follows:

3 ‘‘(2)(A) Except as provided in paragraph (4),

4 the total of loans made to a student in any academic

5 year or its equivalent by an institution of higher edu6 cation from a loan fund established pursuant to an

7 agreement under this part shall not exceed—

8 ‘‘(i) $4,000, in the case of a student who has

9 not successfully completed a program of under10 graduate education; or

11 ‘‘(ii) $6,000, in the case of a graduate or

12 professional student (as defined in regulations

13 issued by the Secretary).

14 ‘‘(B) Except as provided in paragraph (4), the

15 aggregate of the loans for all years made to a student

16 by institutions of higher education from loan funds

17 established pursuant to agreements under this part

18 may not exceed—

19 ‘‘(i) $40,000, in the case of any graduate or

20 professional student (as defined by regulations

21 issued by the Secretary, and including any loans

22 from such funds made to such person before such

23 person became a graduate or professional stu24 dent);
261

HR 6 EAS

1 ‘‘(ii) $20,000, in the case of a student who

2 has successfully completed 2 years of a program

3 of education leading to a bachelor’s degree but

4 who has not completed the work necessary for

5 such a degree (determined under regulations

6 issued by the Secretary, and including any loans

7 from such funds made to such person before such

8 person became such a student); and

9 ‘‘(iii) $8,000, in the case of any other stu10 dent.

11 ‘‘(C)(i) The total of loans made to a student de12 scribed in clause (ii) in any academic year or its

13 equivalent by an institution of higher education from

14 loan funds established pursuant to agreements under

15 this part may not exceed—

16 ‘‘(I) $8,000 for each of the third and fourth

17 years of the program of instruction leading to a

18 bachelor’s degree; or

19 ‘‘(II) $10,000 for the first year of graduate

20 study (as defined in regulations issued by the

21 Secretary).

22 ‘‘(ii) A student referred to in clause (i) is any

23 student—

24 ‘‘(I) who is a junior in a program of in25 struction leading to a bachelor’s degree;
262

HR 6 EAS

1 ‘‘(II) who states in writing that the student

2 will pursue a course of study to become an ele3 mentary or secondary school teacher; and

4 ‘‘(III) who states in writing that the student

5 intends to become a full-time teacher in a school

6 which meets the requirements of section

7 465(a)(2)(A).

8 ‘‘(iii) Each institution shall provide a report to

9 the Secretary annually containing the number of

10 loans under this subparagraph that are made, the

11 amount of each loan, and whether students benefiting

12 from the higher loan limits met the requirements for

13 receiving those loans.

14 ‘‘(iv) If 3 years after the date of enactment of the

15 Higher Education Amendments of 1998, the Secretary

16 determines that an institution has engaged in a pat17 tern of abuse of this subparagraph, the Secretary may

18 reduce or terminate the institution’s Federal capital

19 contribution.’’;

20 (2) in subsection (b), by amending paragraph

21 (2) to read as follows:

22 ‘‘(2) If the institution’s capital contribution

23 under section 462 is directly or indirectly based in

24 part on the financial need demonstrated by students

25 who are (A) attending the institution less than full
263

HR 6 EAS

1 time; or (B) independent students, a reasonable por2 tion of the loans made from the institution’s student

3 loan fund containing the contribution shall be made

4 available to such students.’’;

5 (3) in subsection (c)(1)—

6 (A) in subparagraph (D), by striking ‘‘(i) 3

7 percent’’ and all that follows through ‘‘or (iii)’’;

8 (B) by redesignating subparagraphs (H)

9 and (I) as subparagraphs (I) and (J), respec10 tively; and

11 (C) by inserting after subparagraph (G) the

12 following:

13 ‘‘(H) shall provide that, in the case of a

14 loan made on or after July 1, 1999, the loan

15 shall be considered in default (except as other16 wise provided in section 462(h)) if the borrower

17 of a loan made under this part fails to make an

18 installment payment when due, or to meet any

19 other term of the promissory note or written re20 payment agreement, and such failure persists

21 for—

22 ‘‘(i) 180 days in the case of a loan that

23 is repayable in monthly installments; or
264

HR 6 EAS

1 ‘‘(ii) 240 days in the case of a loan

2 that is repayable in less frequent install3 ments;’’;

4 (4) in subsection (c), by adding at the end the

5 following:

6 ‘‘(7) There shall be excluded from the 9-month period

7 that begins on the date on which a student ceases to carry

8 at least one-half the normal full-time academic workload

9 as described in paragraph (1)(A) any period not to exceed

10 3 years during which a borrower who is a member of a

11 reserve component of the Armed Forces named in section

12 10101 of title 10, United States Code, is called or ordered

13 to active duty for a period of more than 30 days (as defined

14 in section 101(d)(2) of such title). Such period of exclusion

15 shall include the period necessary to resume enrollment at

16 the borrower’s next available regular enrollment period.’’;

17 and

18 (5) by adding at the end the following:

19 ‘‘(g) DISCHARGE.—

20 ‘‘(1) IN GENERAL.—If a student borrower who

21 received a loan made under this part on or after Jan22 uary 1, 1986, is unable to complete the program in

23 which such student is enrolled due to the closure of the

24 institution, then the Secretary shall discharge the bor25 rower’s liability on the loan (including the interest
265

HR 6 EAS

1 and collection fees) by repaying the amount owed on

2 the loan and shall subsequently pursue any claim

3 available to such borrower against the institution and

4 the institution’s affiliates and principals, or settle the

5 loan obligation pursuant to the financial responsibil6 ity standards described in section 498(c).

7 ‘‘(2) ASSIGNMENT.—A borrower whose loan has

8 been discharged pursuant to this subsection shall be

9 deemed to have assigned to the United States the right

10 to a loan refund in an amount that does not exceed

11 the amount discharged against the institution and the

12 institution’s affiliates and principals.

13 ‘‘(3) ELIGIBILITY FOR ADDITIONAL ASSIST14 ANCE.—The period during which a student was un15 able to complete a course of study due to the closing

16 of the institution shall not be considered for purposes

17 of calculating the student’s period of eligibility for ad18 ditional assistance under this title.

19 ‘‘(4) SPECIAL RULE.—A borrower whose loan has

20 been discharged pursuant to this subsection shall not

21 be precluded, because of that discharge, from receiving

22 additional grant, loan, or work assistance under this

23 title for which the borrower would be otherwise eligi24 ble (but for the default on the discharged loan).
266

HR 6 EAS

1 ‘‘(5) REPORTING.—The Secretary or institution,

2 as the case may be, shall report to credit bureaus with

3 respect to loans that have been discharged pursuant to

4 this subsection.

5 ‘‘(h) REHABILITATION OF LOANS.—

6 ‘‘(1) REHABILITATION.—

7 ‘‘(A) IN GENERAL.—If the borrower of a

8 loan made under this part who has defaulted on

9 the loan makes 12 ontime, consecutive, monthly

10 payments of amounts owed on the loan, as deter11 mined by the institution, the loan shall be con12 sidered rehabilitated, and the institution that

13 made that loan (or the Secretary, in the case of

14 a loan held by the Secretary) shall instruct any

15 credit bureau organization or credit reporting

16 agency to which the default was reported to re17 move the default from the borrower’s credit his18 tory.

19 ‘‘(B) COMPARABLE CONDITIONS.—As long

20 as the borrower continues to make scheduled re21 payments on a loan rehabilitated under this

22 paragraph, the rehabilitated loan shall be subject

23 to the same terms and conditions, and qualify

24 for the same benefits and privileges, as other

25 loans made under this part.
267

HR 6 EAS

1 ‘‘(C) ADDITIONAL ASSISTANCE.—The bor2 rower of a rehabilitated loan shall not be pre3 cluded by section 484 from receiving additional

4 grant, loan, or work assistance under this title

5 (for which the borrower is otherwise eligible) on

6 the basis of defaulting on the loan prior to such

7 rehabilitation.

8 ‘‘(D) LIMITATIONS.—A borrower only once

9 may obtain the benefit of this paragraph with

10 respect to rehabilitating a loan under this part.

11 ‘‘(2) RESTORATION OF ELIGIBILITY.—If the bor12 rower of a loan made under this part who has de13 faulted on that loan makes 6 ontime, consecutive,

14 monthly payments of amounts owed on such loan, the

15 borrower’s eligibility for grant, loan, or work assist16 ance under this title shall be restored. A borrower

17 only once may obtain the benefit of this paragraph

18 with respect to restored eligibility.

19 ‘‘(i) INCENTIVE REPAYMENT PROGRAM.—

20 ‘‘(1) IN GENERAL.—Each institution of higher

21 education may establish, with the approval of the Sec22 retary, an incentive repayment program designed to

23 reduce default and to replenish student loan funds es24 tablished under this part. Each such incentive repay25 ment program may—
268

HR 6 EAS

1 ‘‘(A) offer a reduction of the interest rate on

2 a loan on which the borrower has made 48

3 ontime, consecutive, monthly repayments, but in

4 no event may the rate be reduced by more than

5 1 percent;

6 ‘‘(B) provide for a discount on the balance

7 owed on a loan on which the borrower pays the

8 principal and interest in full prior to the end of

9 the applicable repayment period, but in no event

10 may the discount exceed 5 percent of the unpaid

11 principal balance due on the loan at the time the

12 early repayment is made; and

13 ‘‘(C) include such other incentive repayment

14 options as the institution determines will carry

15 out the objectives of this subsection.

16 ‘‘(2) LIMITATION.—No incentive repayment op17 tion under an incentive repayment program author18 ized by this subsection may be paid for with Federal

19 funds, including any Federal funds from the student

20 loan fund, nor can an incentive repayment option be

21 paid for with institutional funds from the student

22 loan fund.’’.

23 SEC. 465. DISTRIBUTION OF ASSETS FROM STUDENT LOAN

24 FUNDS.

25 Section 466 (20 U.S.C. 1087ff) is amended—
269

HR 6 EAS

1 (1) in subsection (a)—

2 (A) in the matter preceding paragraph

3 (1)—

4 (i) by striking ‘‘1996’’ and inserting

5 ‘‘2003’’; and

6 (ii) by striking ‘‘1997’’ and inserting

7 ‘‘2004’’; and

8 (B) in paragraph (1), by striking ‘‘1996’’

9 and inserting ‘‘2003’’;

10 (2) in subsection (b)—

11 (A) by striking ‘‘2005’’ and inserting

12 ‘‘2012’’; and

13 (B) by striking ‘‘1996’’ and inserting

14 ‘‘2003’’; and

15 (3) in subsection (c), by striking ‘‘1997’’ and in16 serting ‘‘2004’’.

17 SEC. 466. PERKINS LOAN REVOLVING FUND.

18 (a) REPEAL.—Subsection (c) of section 467 (20 U.S.C.

19 1087gg(c)) is repealed.

20 (b) TRANSFER OF BALANCE.—Any funds in the Per21 kins Loan Revolving Fund on the date of enactment of this

22 Act shall be transferred to and deposited in the Treasury.

23 PART F—NEED ANALYSIS

24 SEC. 471. COST OF ATTENDANCE.

25 Section 472 (20 U.S.C. 1087ll) is amended—
270

HR 6 EAS

1 (1) in paragraph (3)—

2 (A) in subparagraph (A), by striking ‘‘of

3 not less than $1,500’’ and inserting ‘‘determined

4 by the institution’’; and

5 (B) in subparagraph (C), by striking ‘‘, ex6 cept that the amount may not be less than

7 $2,500’’; and

8 (2) in paragraph (11), by striking ‘‘placed’’ and

9 inserting ‘‘engaged’’.

10 SEC. 472. FAMILY CONTRIBUTION FOR DEPENDENT STU11 DENTS.

12 Section 475 (20 U.S.C. 1087oo) is amended—

13 (1) in subsection (g)—

14 (A) in paragraph (2)—

15 (i) in subparagraph (D)—

16 (I) by striking ‘‘$1,750’’ and in17 serting ‘‘$2,200’’; and

18 (II) by striking ‘‘and’’ after the

19 semicolon;

20 (ii) in subparagraph (E), by striking

21 the period and inserting ‘‘; and’’; and

22 (iii) by adding at the end the follow23 ing:
271

HR 6 EAS

1 ‘‘(F) an allowance for parents’ negative

2 available income, determined in accordance with

3 paragraph (6).’’; and

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

5 ‘‘(6) ALLOWANCE FOR PARENTS’ NEGATIVE

6 AVAILABLE INCOME.—The allowance for parents’ neg7 ative available income is the amount, if any, by

8 which the sum of the amounts deducted under sub9 paragraphs (A) through (F) of paragraph (1) exceeds

10 the parents’ total income (as defined in section

11 480).’’; and

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

13 ‘‘(j) ADJUSTMENTS TO STUDENTS CONTRIBUTION FOR

14 ENROLLMENT PERIODS OF LESS THAN NINE MONTHS.—

15 For periods of enrollment of less than 9 months, the stu16 dent’s contribution from adjusted available income (as de17 termined under subsection (g)) is determined, for purposes

18 other than subpart 2 of part A, by dividing the amount

19 determined under such subsection by 9, and multiplying the

20 result by the number of months in the period of enroll21 ment.’’.
272

HR 6 EAS

1 SEC. 473. FAMILY CONTRIBUTION FOR INDEPENDENT STU2 DENTS WITHOUT DEPENDENTS OTHER THAN

3 A SPOUSE.

4 Section 476(b)(1)(A)(iv) (20 U.S.C.

5 1087pp(b)(1)(A)(iv)) is amended—

6 (1) in subclause (I), by striking ‘‘$3,000’’ and

7 inserting ‘‘$4,250’’;

8 (2) in subclause (II), by striking ‘‘$3,000’’ and

9 inserting ‘‘$4,250’’; and

10 (3) in subclause (III), by striking ‘‘$6,000’’ and

11 inserting ‘‘$7,250’’.

12 SEC. 474. REGULATIONS; UPDATED TABLES AND AMOUNTS.

13 Section 478(b) (20 U.S.C. 1087rr(b)) is amended—

14 (1) by striking ‘‘For each academic year’’ and

15 inserting the following:

16 ‘‘(1) REVISED TABLES.—For each academic

17 year’’; and

18 (2) by adding at the end the following new para19 graph:

20 ‘‘(2) REVISED AMOUNTS.—For each academic

21 year after academic year 1999–2000, the Secretary

22 shall publish in the Federal Register revised income

23 protection allowances for the purpose of sections

24 475(g)(2)(D) and 476(b)(1)(A)(iv). Such revised al25 lowances shall be developed by increasing each of the

26 dollar amounts contained in such section by a per-
273

HR 6 EAS

1 centage equal to the estimated percentage increase in

2 the Consumer Price Index (as determined by the Sec3 retary) between December 1998 and the December

4 next preceding the beginning of such academic year,

5 and rounding the result to the nearest $10.’’.

6 SEC. 475. SIMPLIFIED NEEDS TEST; ZERO EXPECTED FAM7 ILY CONTRIBUTION.

8 Section 479 (20 U.S.C. 1087ss) is amended—

9 (1) in subsection (b)(3)—

10 (A) in subparagraph (A), by striking ‘‘or’’

11 after the semicolon;

12 (B) by redesignating subparagraph (B) as

13 subparagraph (C); and

14 (C) by inserting after subparagraph (A) the

15 following:

16 ‘‘(B) a form 1040 (including any prepared

17 or electronic version of such form) required pur18 suant to the Internal Revenue Code of 1986, ex19 cept that such form shall be considered a form

20 described in this paragraph only if the student

21 or family files such form in order to take a tax

22 credit under section 25A of the Internal Revenue

23 Code of 1986, and would otherwise be eligible to

24 file a form described in subparagraph (A); or’’;

25 and
274

HR 6 EAS

1 (2) in subsection (c)—

2 (A) in paragraph (1), by amending sub3 paragraph (A) to read as follows:

4 ‘‘(A)(i) the student’s parents file, or are eli5 gible to file, a form described in subsection

6 (b)(3), or the parents certify to the Secretary

7 that the parents are not required to file an in8 come tax return; and

9 ‘‘(ii) the student files, or is eligible to file,

10 a form described in subsection (b)(3), or the stu11 dent certifies to the Secretary that the student is

12 not required to file an income tax return; and’’;

13 and

14 (B) in paragraph (2), by amending sub15 paragraph (A) to read as follows:

16 ‘‘(A) the student (and the student’s spouse,

17 if any) files, or is eligible to file, a form de18 scribed in subsection (b)(3), or the student cer19 tifies to the Secretary that the student (and the

20 student’s spouse, if any) is not required to file

21 an income tax return; and’’.

22 SEC. 476. REFUSAL OR ADJUSTMENT OF LOAN CERTIFI23 CATIONS.

24 Section 479A (20 U.S.C. 1087tt) is amended—
275

HR 6 EAS

1 (1) in subsection (a), by inserting ‘‘Special cir2 cumstances may include tuition expenses at an ele3 mentary school or secondary school, medical or dental

4 expenses not covered by insurance, other changes in a

5 family’s income or assets, or changes in a student’s

6 status.’’ after ‘‘absence of special circumstances.’’; and

7 (2) by amending subsection (c) to read as fol8 lows:

9 ‘‘(c) REFUSAL OR ADJUSTMENT OF LOAN CERTIFI10 CATIONS.—An eligible institution may refuse to certify a

11 statement that permits a student to receive a loan under

12 part B, or refuse to make a loan under part D, or may

13 certify a loan amount or make a loan that is less than the

14 student’s determination of need (as determined under this

15 part), if the reason for the action is documented and pro16 vided in written form to the student. No eligible institution

17 shall discriminate against any borrower or applicant in ob18 taining a loan on the basis of race, national origin, reli19 gion, sex, marital status, age, or disability status.’’.

20 SEC. 477. TREATMENT OF OTHER FINANCIAL ASSISTANCE.

21 Section 480(j)(3) (20 U.S.C. 1087vv(j)(3)) is amended

22 by inserting ‘‘educational assistance after discharge or re23 lease from service under chapter 30 of title 38, United

24 States Code, or’’ after ‘‘paragraph (1),’’.
276

HR 6 EAS

1 PART G—GENERAL PROVISIONS

2 SEC. 481. DEFINITION OF INSTITUTION OF HIGHER EDU3 CATION.

4 Subparagraph (A) of section 481(a)(2) (20 U.S.C.

5 1088(a)(2)) is amended—

6 (1) in the second sentence, by inserting ‘‘or vet7 erinary’’ after ‘‘case of a graduate medical’’;

8 (2) by striking ‘‘attending a graduate medical

9 school’’ and inserting ‘‘attending such school’’; and

10 (3) by amending clause (ii) to read as follows:

11 ‘‘(ii) the institution has a clinical

12 training program that was approved by a

13 State as of January 1, 1992, or students en14 rolled in the institution complete their clini15 cal training at an approved veterinary

16 school located in the United States.’’.

17 SEC. 482. MASTER CALENDAR.

18 Section 482 (20 U.S.C. 1089) is amended—

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

20 following:

21 ‘‘(3) To the extent feasible, the Secretary shall

22 notify eligible institutions and vendors by December

23 1 prior to the start of an award year of minimal

24 hardware and software requirements necessary to ad25 minister programs under this title.’’; and
277

HR 6 EAS

1 (2) by amending subsection (c) to read as fol2 lows:

3 ‘‘(c) DELAY OF EFFECTIVE DATE OF LATE PUBLICA4 TIONS.—(1) Except as provided in paragraph (2), any reg5 ulatory changes initiated by the Secretary affecting the pro6 grams under this title that have not been published in final

7 form by November 1 prior to the start of the award year

8 shall not become effective until the beginning of the second

9 award year after such November 1 date.

10 ‘‘(2)(A) The Secretary may designate any regulatory

11 provision that affects the programs under this title and is

12 published in final form after November 1 as one that an

13 entity subject to the provision may, in the entity’s discre14 tion, choose to implement prior to the effective date de15 scribed in paragraph (1). The Secretary may specify in the

16 designation when, and under what conditions, an entity

17 may implement the provision prior to that effective date.

18 The Secretary shall publish any designation under this sub19 paragraph in the Federal Register.

20 ‘‘(B) If an entity chooses to implement a regulatory

21 provision prior to the effective date described in paragraph

22 (1), as permitted by subparagraph (A), the provision shall

23 be effective with respect to that entity in accordance with

24 the terms of the Secretary’s designation.’’.
278

HR 6 EAS

1 SEC. 483. FORMS AND REGULATIONS.

2 Section 483 (20 U.S.C. 1090) is amended—

3 (1) in subsection (a)—

4 (A) in the subsection heading, by striking

5 ‘‘FORM’’ and inserting ‘‘FORM DEVELOPMENT’’;

6 (B) by amending paragraph (1) to read as

7 follows:

8 ‘‘(1) SINGLE FORM REQUIREMENTS.—The Sec9 retary, in cooperation with representatives of agencies

10 and organizations involved in student financial as11 sistance, shall produce, distribute, and process free of

12 charge a common financial reporting form (which

13 shall include electronic versions of the form) to be

14 used—

15 ‘‘(A) to determine the need (including the

16 expected family contribution and, if appropriate,

17 cost of attendance) and eligibility of a student

18 for financial assistance under parts A, C, D, and

19 E; and

20 ‘‘(B) to determine the need (including the

21 expected family contribution and cost of attend22 ance) of a student for the purposes of part B.

23 ‘‘(2) STATE DATA ITEMS.—The Secretary shall

24 include on the form developed under this subsection

25 such data items, selected in consultation with the

26 States to assist the States in awarding State student
279

HR 6 EAS

1 financial assistance, as the Secretary determines are

2 appropriate for inclusion.

3 ‘‘(3) PARENT’S SOCIAL SECURITY NUMBER.—The

4 Secretary shall include on the form developed under

5 this paragraph space for the social security number

6 of parents of dependent students seeking financial as7 sistance under this title.

8 ‘‘(4) USE.—The Secretary shall require that the

9 form developed under this paragraph be used for the

10 purpose of collecting eligibility and other data for

11 purposes of part B, including the applicant’s choice

12 of lender.’’; and

13 (C) in paragraph (3)—

14 (i) by striking ‘‘Institutions of higher

15 education and States shall receive’’ and in16 serting ‘‘The Secretary shall provide’’; and

17 (ii) by striking ‘‘by the Secretary’’;

18 and

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

20 ‘‘(g) PAYMENT FOR DATA.—The Secretary may pay

21 such charges as the Secretary determines are necessary to

22 obtain data that the Secretary considers essential to the effi23 cient administration of the programs under this title.

24 ‘‘(h) MASTER PROMISSORY NOTE.—
280

HR 6 EAS

1 ‘‘(1) IN GENERAL.—The Secretary shall develop

2 and require the use of a master promissory note, for

3 loans made under this title for periods of enrollment

4 beginning on or after July 1, 2000, that may be ap5 plicable to more than 1 academic year, or more than

6 1 type of loan made under this title. Prior to imple7 menting the master promissory note for all loans

8 made under this title, the Secretary may develop, test,

9 and require the use of such a master promissory note

10 on a limited or pilot basis.

11 ‘‘(2) CONSULTATION.—In developing the master

12 promissory note under this subsection, the Secretary

13 shall consult with representatives of guaranty agen14 cies, eligible lenders, institutions of higher education,

15 students, and organizations involved in student fi16 nancial assistance.

17 ‘‘(3) SALE; ASSIGNMENT; ENFORCEABILITY.—

18 Notwithstanding any other provision of law, each

19 loan made under a master promissory note under this

20 subsection may be sold or assigned independently of

21 any other loan made under the same promissory note

22 and each such loan shall be separately enforceable in

23 all Federal and State courts on the basis of an origi24 nal or copy of the master promissory note in accord25 ance with the terms of the master promissory note.’’.
281

HR 6 EAS

1 SEC. 484. STUDENT ELIGIBILITY.

2 (a) AMENDMENTS.—Section 484 (20 U.S.C. 1091) is

3 amended—

4 (1) in subsection (d)—

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

6 by striking ‘‘either’’; and

7 (B) by adding at the end the following:

8 ‘‘(3) The student has completed a high school

9 education in a home school setting and has met any

10 State requirements with respect to such education in

11 a home school setting.’’;

12 (2) in subsection (l), by amending paragraph (1)

13 to read as follows:

14 ‘‘(1) RELATION TO CORRESPONDENCE

15 COURSES.—

16 ‘‘(A) IN GENERAL.—A student enrolled in a

17 course of instruction at an institution of higher

18 education that is offered in whole or in part

19 through telecommunications and leads to a recog20 nized certificate for a program of study of 1 year

21 or longer, or a recognized associate, bacca22 laureate, or graduate degree, conferred by such

23 institution, shall not be considered to be enrolled

24 in correspondence courses unless the total

25 amount of telecommunications and correspond26 ence courses at such institution equals or exceeds
282

HR 6 EAS

1 50 percent of the total amount of all courses at

2 the institution.

3 ‘‘(B) REQUIREMENT.—An institution of

4 higher education referred to in subparagraph (A)

5 is an institution of higher education—

6 ‘‘(i) that is not an institute or school

7 described in section 521(4)(C) of the Carl

8 D. Perkins Vocational and Applied Tech9 nology Education Act; and

10 ‘‘(ii) for which at least 50 percent of

11 the programs of study offered by the institu12 tion lead to the award of a recognized asso13 ciate, baccalaureate, or graduate degree.’’;

14 and

15 (3) by adding at the end the following:

16 ‘‘(q) VERIFICATION OF IRS RETURN INFORMATION.—

17 The Secretary shall verify the information reported by all

18 applicants for assistance on the form prescribed under sec19 tion 483 with the return information (as defined in section

20 6103 of the Internal Revenue Code of 1986) available to

21 the Secretary of the Treasury. Notwithstanding section 6103

22 of such Code the Secretary of the Treasury shall provide

23 the return information to the Secretary. In the case of a

24 dependent student the return information shall include the

25 return information of the parent of the student. The form
283

HR 6 EAS

1 prescribed by the Secretary under section 483 shall contain

2 a prominent notice of the verification of the information

3 and a warning to all the applicants of the penalties for

4 misrepresentation, with respect to the information, under

5 the United States Code.

6 ‘‘(r) SUSPENSION OF ELIGIBILITY FOR DRUG-RELAT7 ED OFFENSES.—

8 ‘‘(1) IN GENERAL.—A student who has been con9 victed of any offense under any Federal or State law

10 involving the possession or sale of a controlled sub11 stance shall not be eligible to receive any grant, loan,

12 or work assistance under this title during the period

13 beginning on the date of such conviction and ending

14 after the interval specified in the following table:

‘‘If convicted of an offense involving:

The possession of a controlled substance: Ineligibility period is:

First offense .............................. 1 year

Second offense ........................... 2 years

Third offense ............................. Indefinite.

The sale of a controlled

substance: Ineligibility period is:

First offense .............................. 2 years

Second offense ........................... Indefinite.

15 ‘‘(2) REHABILITATION.—A student whose eligi16 bility has been suspended under paragraph (1) may

17 resume eligibility before the end of the ineligibility pe18 riod determined under such paragraph if—

19 ‘‘(A) the student satisfactorily completes a

20 drug rehabilitation program that—
284

HR 6 EAS

1 ‘‘(i) complies with such criteria as the

2 Secretary shall prescribe in regulations for

3 purposes of this paragraph; and

4 ‘‘(ii) includes 2 unannounced drug

5 tests; or

6 ‘‘(B) the conviction is expunged by pardon,

7 reversed, set aside, or otherwise rendered nuga8 tory.

9 ‘‘(3) DEFINITIONS.—In this subsection, the term

10 ‘controlled substance’ has the meaning given the term

11 in section 102(6) of the Controlled Substances Act (21

12 U.S.C. 802(6)).’’.

13 (b) EFFECTIVE DATE.—The amendment made by sub14 section (a)(2) regarding suspension of eligibility for drug15 related offenses, shall apply with respect to financial assist16 ance to cover the costs of attendance for periods of enroll17 ment beginning after the date of enactment of this Act.

18 SEC. 485. INSTITUTIONAL REFUNDS.

19 Section 484B (20 U.S.C. 1091b) is amended to read

20 as follows:

21 ‘‘SEC. 484B. INSTITUTIONAL REFUNDS.

22 ‘‘(a) RETURN OF TITLE IV FUNDS.—

23 ‘‘(1) IN GENERAL.—If a recipient of assistance

24 under this title withdraws from a payment period in

25 which the recipient began attendance, the amount of
285

HR 6 EAS

1 grant (other than assistance received under part C of

2 this title) or loan assistance to be returned to the title

3 IV programs is calculated according to paragraph (2)

4 and returned in accordance with subsection (b).

5 ‘‘(2) CALCULATION OF AMOUNT OF TITLE IV AS6 SISTANCE EARNED.—

7 ‘‘(A) IN GENERAL.—The amount of grant or

8 loan assistance under this title that is earned by

9 the recipient for purposes of this section is cal10 culated by—

11 ‘‘(i) determining the percentage of

12 grant and loan assistance under this title

13 that has been earned by the student, as de14 scribed in subparagraph (B); and

15 ‘‘(ii) applying such percentage to the

16 total amount of such grant and loan assist17 ance that was disbursed (and that could

18 have been disbursed) to the student, or on

19 the student’s behalf, for the payment period,

20 as of the day the student withdrew.

21 ‘‘(B) PERCENTAGE EARNED.—For purposes

22 of subparagraph (A)(i), the percentage of grant

23 or loan assistance under this title that has been

24 earned by the student is—
286

HR 6 EAS

1 ‘‘(i) equal to the percentage of the pay2 ment period completed (as determined in

3 accordance with subsection (d)) as of the

4 day the student withdrew, provided that

5 such date occurs on or before the completion

6 of 60 percent of the payment period; or

7 ‘‘(ii) 100 percent, if the day the stu8 dent withdrew occurs after the student has

9 completed 60 percent of the payment period.

10 ‘‘(C) PERCENTAGE NOT EARNED.—For pur11 poses of subsection (b), the amount of grant and

12 loan assistance awarded under this title that has

13 not been earned by the student shall be calculated

14 by—

15 ‘‘(i) determining the complement of the

16 percentage of grant or loan assistance under

17 this title has been earned by the student de18 scribed in subparagraph (B); and

19 ‘‘(ii) applying the percentage deter20 mined under clause (i) to the total amount

21 of such grant and loan assistance that was

22 disbursed (and that could have been dis23 bursed) to the student, or on the student’s

24 behalf, for the payment period, as of the day

25 the student withdrew.
287

HR 6 EAS

1 ‘‘(3) DIFFERENCES BETWEEN AMOUNTS EARNED

2 AND AMOUNTS RECEIVED.—

3 ‘‘(A) IN GENERAL.—If the student has re4 ceived less grant or loan assistance than the

5 amount earned, as calculated under paragraph

6 (2)(B), the institution of higher education shall

7 comply with the procedures for late disbursement

8 specified by the Secretary in regulations.

9 ‘‘(B) RETURN.—If the student has received

10 more grant or loan assistance than the amount

11 earned, as calculated under paragraph (2)(B),

12 the unearned funds shall be returned by the in13 stitution or the student, or both, as may be re14 quired under paragraphs (1) and (2) of sub15 section (b), to the programs under this title in

16 the order specified in subsection (b)(3).

17 ‘‘(b) RETURN OF TITLE IV PROGRAM FUNDS.—

18 ‘‘(1) RESPONSIBILITY OF THE INSTITUTION.—

19 The institution shall return, in the order specified in

20 paragraph (3), the lesser of—

21 ‘‘(A) the amount of grant and loan assist22 ance awarded under this title that has not been

23 earned by the student, as calculated under sub24 section (a)(2)(C); or

25 ‘‘(B) an amount equal to—
288

HR 6 EAS

1 ‘‘(i) the total institutional charges for

2 the payment period; multiplied by

3 ‘‘(ii) the percentage of grant and loan

4 assistance awarded under this title that has

5 not been earned by the student, as described

6 in subsection (a)(2)(C).

7 ‘‘(2) RESPONSIBILITY OF THE STUDENT.—

8 ‘‘(A) IN GENERAL.—The student shall re9 turn assistance that has not been earned by the

10 student as described in subsection (a)(2)(C) in

11 the order specified in paragraph (3) minus the

12 amount the institution is required to return

13 under paragraph (1).

14 ‘‘(B) SPECIAL RULE.—The student shall re15 turn or repay, as appropriate, the amount deter16 mined under subparagraph (A) to—

17 ‘‘(i) a loan program under this title in

18 accordance with the terms of the loan; and

19 ‘‘(ii) a grant program under this title,

20 as an overpayment of such grant and shall

21 be subject to overpayment collection proce22 dures prescribed by the Secretary.

23 ‘‘(3) ORDER OF RETURN OF TITLE IV FUNDS.—

24 ‘‘(A) IN GENERAL.—Excess funds returned

25 by the institution or the student, as appropriate,
289

HR 6 EAS

1 in accordance with paragraph (1) or (2), respec2 tively, shall be credited to outstanding balances

3 on loans made under this title to the student or

4 on behalf of the student for the payment period

5 for which a return of funds is required. Such ex6 cess funds shall be credited in the following

7 order:

8 ‘‘(i) To outstanding balances on loans

9 made under section 428H for the payment

10 period for which a return of funds is re11 quired.

12 ‘‘(ii) To outstanding balances on loans

13 made under section 428 for the payment pe14 riod for which a return of funds is required.

15 ‘‘(iii) To outstanding balances on un16 subsidized loans (other than parent loans)

17 made under part D for the payment period

18 for which a return of funds is required.

19 ‘‘(iv) To outstanding balances on sub20 sidized loans made under part D for the

21 payment period for which a return of funds

22 is required.

23 ‘‘(v) To outstanding balances on loans

24 made under part E for the payment period

25 for which a return of funds is required.
290

HR 6 EAS

1 ‘‘(vi) To outstanding balances on loans

2 made under section 428B for the payment

3 period for which a return of funds is re4 quired.

5 ‘‘(vii) To outstanding balances on par6 ent loans made under part D for the pay7 ment period for which a return of funds is

8 required.

9 ‘‘(B) REMAINING EXCESSES.—If excess

10 funds remain after repaying all outstanding

11 loan amounts, the remaining excess shall be cred12 ited in the following order:

13 ‘‘(i) To awards under subpart 1 of

14 part A for the payment period for which a

15 return of funds is required.

16 ‘‘(ii) To awards under subpart 3 of

17 part A for the payment period for which a

18 return of funds is required.

19 ‘‘(iii) To other assistance awarded

20 under this title for which a return of funds

21 is required.

22 ‘‘(c) WITHDRAWAL DATE.—

23 ‘‘(1) IN GENERAL.—In this section, the term ‘day

24 the student withdrew’—
291

HR 6 EAS

1 ‘‘(A) is the date that the institution deter2 mines—

3 ‘‘(i) the student began the withdrawal

4 process prescribed by the institution;

5 ‘‘(ii) the student otherwise provided of6 ficial notification to the institution of the

7 intent to withdraw; or

8 ‘‘(iii) in the case of a student who does

9 not begin the withdrawal process or other10 wise notify the institution of the intent to

11 withdraw, the date that the payment period

12 ends for which aid under this title was dis13 bursed; or

14 ‘‘(B) for schools required to take attendance,

15 is determined by the institution from such at16 tendance records.

17 ‘‘(2) SPECIAL RULE.—Notwithstanding para18 graph (1), if the institution determines that a student

19 was not able to begin the withdrawal process, or oth20 erwise notify the institution of the intent to with21 draw, due to illness, accident, grievous personal loss,

22 or other such circumstances beyond the student’s con23 trol, the institution may determine the appropriate

24 withdrawal date.
292

HR 6 EAS

1 ‘‘(d) PERCENTAGE OF THE PAYMENT PERIOD COM2 PLETED.—For purposes of subsection (a)(2)(B)(i), the per3 centage of the payment period completed is determined—

4 ‘‘(1) in the case of a program that is measured

5 in credit hours, by dividing the total number of cal6 endar days comprising the payment period into the

7 number of calendar days completed in that period as

8 of the day the student withdrew; and

9 ‘‘(2) in the case of a program that is measured

10 in clock hours, by dividing the total number of clock

11 hours comprising the payment period into the number

12 of clock hours completed by the student in that pay13 ment period as of the day the student withdrew.’’.

14 SEC. 486. INSTITUTIONAL AND FINANCIAL ASSISTANCE IN15 FORMATION FOR STUDENTS.

16 (a) INFORMATION DISSEMINATION ACTIVITIES.—Sec17 tion 485(a) (20 U.S.C. 1092(a)) is amended—

18 (1) in paragraph (1)—

19 (A) in the second sentence, by striking ‘‘,

20 through appropriate publications and mailings,

21 to all current students, and to any prospective

22 student upon request.’’ and inserting ‘‘upon re23 quest, through appropriate publications, mail24 ings, and electronic media to an enrolled stu25 dent, and to any prospective student.’’;
293

HR 6 EAS

1 (B) by inserting after the second sentence

2 the following: ‘‘Each eligible institution annually

3 shall provide to all students enrolled at the insti4 tution, a list of the information that is required

5 by this section, together with a statement of the

6 procedures required to obtain the information.’’;

7 (C) by amending subparagraph (F) to read

8 as follows:

9 ‘‘(F) a statement of—

10 ‘‘(i) the requirements of any refund

11 policy with which the institution is required

12 to comply;

13 ‘‘(ii) the requirements under section

14 484B for the return of grant or loan assist15 ance provided under this title; and

16 ‘‘(iii) the requirements for officially

17 withdrawing from the institution;’’;

18 (D) in subparagraph (M)(ii), by striking

19 ‘‘and’’ after the semicolon; and

20 (E) in subparagraph (N), by striking the

21 period and inserting ‘‘; and’’;

22 (2) in paragraph (2), by inserting ‘‘an applica23 tion for’’ after ‘‘concerning’’; and

24 (3) in paragraph (3), by amending subpara25 graph (A) to read as follows:
294

HR 6 EAS

1 ‘‘(A) shall be made available by July 1 each

2 year to current and prospective students prior to

3 enrolling or entering into any financial obliga4 tion; and’’.

5 (b) EXIT COUNSELING FOR BORROWERS.—Section

6 485(b) (20 U.S.C. 1092(b)) is amended—

7 (1) in paragraph (1)(A), by striking ‘‘(individ8 ually or in groups)’’; and

9 (2) in paragraph (2), by adding at the end the

10 following:

11 ‘‘(C) Nothing in this subsection shall be construed to

12 prohibit an institution of higher education from utilizing

13 electronic means to provide personalized exit counseling.’’.

14 (c) DISCLOSURES REQUIRED WITH RESPECT TO ATH15 LETICALLY RELATED STUDENT AID.—Section 485(e) (20

16 U.S.C. 1092(e)) is amended—

17 (1) by amending paragraph (2) to read as fol18 lows:

19 ‘‘(2) When an institution described in paragraph

20 (1) offers a potential student athlete athletically relat21 ed student aid, such institution shall provide to the

22 student, the student’s parents, the student’s guidance

23 counselor, and the student’s coach the information

24 contained in the report submitted by such institution

25 pursuant to paragraph (1). If the institution is a
295

HR 6 EAS

1 member of a national collegiate athletic association

2 that compiles graduation rate data on behalf of its

3 member institutions, that the Secretary determines is

4 substantially comparable to the information described

5 in the previous sentence, the distribution of the com6 pilation to all secondary schools shall fulfill the re7 sponsibility of the institution to provide the informa8 tion to a prospective student athlete’s guidance coun9 selor and coach.’’; and

10 (2) by amending paragraph (9) to read as fol11 lows:

12 ‘‘(9) The reports required by this subsection shall

13 be due each July 1 and shall cover the 1-year period

14 ending August 31 of the preceding year.’’.

15 (d) DISCLOSURE OF CAMPUS SECURITY POLICY AND

16 CAMPUS CRIME STATISTICS.—Section 485(f) (20 U.S.C.

17 1092(f)) is amended—

18 (1) by amending subparagraph (F) of paragraph

19 (1) to read as follows:

20 ‘‘(F) Statistics concerning the occurrence on

21 campus, during the most recent calendar year,

22 and during the 2 preceding calendar years for

23 which data are available—
296

HR 6 EAS

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 non8 forcible;

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 (7)

25 as paragraphs (5) through (8), respectively;
297

HR 6 EAS

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 po5 lice or security department of any kind shall make,

6 keep, and maintain a daily log, written in a form

7 that can be easily understood, recording all crimes re8 ported to such police or security department, includ9 ing—

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 to

15 this paragraph shall, except where disclosure of such

16 information is prohibited by law or such disclosure

17 would jeopardize the confidentiality of the victim, be

18 open to public inspection within 2 business days of

19 the initial report being made to the department or a

20 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 infor-
298

HR 6 EAS

1 mation becomes available to the police or security de2 partment.

3 ‘‘(iii) Where there is clear and convincing evi4 dence that the release of such information would jeop5 ardize an ongoing criminal investigation or the safety

6 of an individual, cause a suspect to flee or evade de7 tection, or result in the destruction of evidence, such

8 information may be withheld until that damage is no

9 longer likely to occur from the release of such infor10 mation.

11 ‘‘(iv) Notwithstanding clause (iii), an institution

12 of higher education shall record all criminal incidents

13 occurring on campus and shall make the reports open

14 to public inspection not later than 2 business days

15 after the requirements of clause (iii) are met.’’;

16 (4) in paragraph (6) (as redesignated by para17 graph (2)), by amending subparagraph (A) to read as

18 follows: ‘‘(A) For purposes of this section the term

19 ‘campus’ means—

20 ‘‘(i) any building or property owned or con21 trolled by an institution of higher education

22 within the same reasonably contiguous geo23 graphic area of the institution, including a

24 building or property owned by the institution,
299

HR 6 EAS

1 but controlled by another person, such as a food

2 or other retail vendor;

3 ‘‘(ii) any building or property owned or

4 controlled by a student organization recognized

5 by the institution;

6 ‘‘(iii) all public property that is within the

7 same reasonably contiguous geographic area of

8 the institution, such as a sidewalk, a street, other

9 thoroughfare, or parking facility, that is adjacent

10 to a facility owned or controlled by the institu11 tion;

12 ‘‘(iv) any building or property (other than

13 a branch campus) owned or controlled by an in14 stitution of higher education that is used in di15 rect support of, or in relation to, the institution’s

16 educational purposes, is used by students, and is

17 not within the same reasonably contiguous geo18 graphic area of the institution; and

19 ‘‘(v) all dormitories or other student resi20 dential facilities owned or controlled by the in21 stitution.’’;

22 (5) in paragraph (7) (as redesignated by sub23 paragraph (B)), by inserting at the end the following:

24 ‘‘Such statistics shall not identify victims of crimes or
300

HR 6 EAS

1 persons accused of crimes, except as required by State

2 or local law.’’; and

3 (6) by adding at the end the following:

4 ‘‘(9) STUDY.—

5 ‘‘(A) IN GENERAL.—The Secretary, in con6 sultation with the Attorney General, shall pro7 vide for a national study to examine procedures

8 undertaken after an institution of higher edu9 cation receives a report of sexual assault.

10 ‘‘(B) REPORT.—The study required by sub11 paragraph (A) shall include an analysis of—

12 ‘‘(i) the existence and publication of

13 the institution of higher education’s and

14 State’s definition of sexual assault;

15 ‘‘(ii) the existence and publication of

16 the institution’s policy for campus sexual

17 assaults;

18 ‘‘(iii) the individuals to whom reports

19 of sexual assault are given most often and—

20 ‘‘(I) how the individuals are

21 trained to respond to the reports; and

22 ‘‘(II) the extent to which the indi23 viduals are trained;
301

HR 6 EAS

1 ‘‘(iv) the reporting options that are ar2 ticulated to the victim or victims of the sex3 ual assault regarding—

4 ‘‘(I) on-campus reporting and

5 procedure options; and

6 ‘‘(II) off-campus reporting and

7 procedure options;

8 ‘‘(v) the resources available for victims’

9 safety, support, medical health, and con10 fidentiality, including—

11 ‘‘(I) how well the resources are ar12 ticulated both specifically to the victim

13 of sexual assault and generally to the

14 campus at large; and

15 ‘‘(II) the security of the resources

16 in terms of confidentiality or reputa17 tion;

18 ‘‘(vi) policies and practices that may

19 prevent or discourage the reporting of cam20 pus sexual assaults to local crime authori21 ties, or that may otherwise obstruct justice

22 or interfere with the prosecution of per23 petrators of campus sexual assaults;

24 ‘‘(vii) policies and practices found suc25 cessful in aiding the report and any ensu-
302

HR 6 EAS

1 ing investigation or prosecution of a cam2 pus sexual assault;

3 ‘‘(viii) the on-campus procedures for

4 investigation and disciplining the perpetra5 tor of a sexual assault, including—

6 ‘‘(I) the format for collecting evi7 dence; and

8 ‘‘(II) the format of the investiga9 tion and disciplinary proceeding, in10 cluding the faculty responsible for run11 ning the disciplinary procedure and

12 the persons allowed to attend the dis13 ciplinary procedure; and

14 ‘‘(ix) types of punishment for offenders,

15 including—

16 ‘‘(I) whether the case is directed

17 outside for further punishment; and

18 ‘‘(II) how the institution punishes

19 perpetrators.

20 ‘‘(C) SUBMISSION OF REPORT.—The report

21 required by subparagraph (B) shall be submitted

22 to Congress not later than September 1, 1999.

23 ‘‘(D) DEFINITION.—For purposes of this

24 section, the term ‘campus sexual assaults’ means

25 sexual assaults occurring at institutions of high-
303

HR 6 EAS

1 er education and sexual assaults committed

2 against or by students or employees of such insti3 tutions.

4 ‘‘(E) AUTHORIZATION OF APPROPRIA5 TIONS.—There is authorized to be appropriated

6 to carry out this section $1,000,000 for fiscal

7 year 1999.

8 ‘‘(10)(A) The Secretary shall report to the appro9 priate committees of Congress each institution of

10 higher education that the Secretary determines is not

11 in compliance with the reporting requirements of this

12 subsection.

13 ‘‘(B) The Secretary shall provide to an institu14 tion of higher education that the Secretary determines

15 is having difficulty, or is not in compliance, with the

16 reporting requirements of this subsection—

17 ‘‘(i) data and analysis regarding successful

18 practices employed by institutions of higher edu19 cation to reduce campus crime; and

20 ‘‘(ii) technical assistance.

21 ‘‘(11) For purposes of reporting the statistics de22 scribed in paragraphs (1)(F) and (1)(H), an institu23 tion of higher education shall distinguish, by means

24 of separate categories, any criminal offenses that

25 occur—
304

HR 6 EAS

1 ‘‘(A) on publicly owned sidewalks, streets,

2 or other thoroughfares, or in parking facilities,

3 that are adjacent to facilities owned by the insti4 tution; and

5 ‘‘(B) in dormitories or other residential fa6 cilities for students on campus.

7 ‘‘(12)(A) Upon determination, after reasonable

8 notice and opportunity for a hearing on the record,

9 that an institution of higher education—

10 ‘‘(i) has violated or failed to carry out any

11 provision of this subsection or any regulation

12 prescribed under this subsection; or

13 ‘‘(ii) has substantially misrepresented the

14 number, location, or nature of the crimes re15 quired to be reported under this subsection,

16 the Secretary shall impose a civil penalty upon the

17 institution of not to exceed $25,000 for each violation,

18 failure, or misrepresentation.

19 ‘‘(B) Any civil penalty may be compromised by

20 the Secretary. In determining the amount of such

21 penalty, or the amount agreed upon in compromise,

22 the appropriateness of the penalty to the size of the

23 institution of higher education subject to the deter24 mination, and the gravity of the violation, failure, or

25 misrepresentation shall be considered. The amount of
305

HR 6 EAS

1 such penalty, when finally determined, or the amount

2 agreed upon in compromise, may be deducted from

3 any sums owing by the United States to the institu4 tion charged.

5 ‘‘(13)(A) Nothing in this subsection may be con6 strued to—

7 ‘‘(i) create a cause of action against any in8 stitution of higher education or any employee of

9 such an institution for any civil liability; or

10 ‘‘(ii) establish any standard of care.

11 ‘‘(B) Notwithstanding any other provision of

12 law, evidence regarding compliance or noncompliance

13 with this subsection shall not be admissible as evi14 dence in any proceeding of any court, agency, board,

15 or other entity, except with respect to an action to en16 force this subsection

17 ‘‘(14) This subsection may be cited as the

18 ‘Jeanne Clery Disclosure of Campus Security Policy

19 and Campus Crime Statistics Act’.’’.

20 (e) DATA REQUIRED.—Section 485(g) (20 U.S.C.

21 1092(g)) is amended—

22 (1) in paragraph (1), by adding at the end the

23 following:

24 ‘‘(I)(i) The total revenues, and the revenues

25 from football, men’s basketball, women’s basket-
306

HR 6 EAS

1 ball, all other men’s sports combined, and all

2 other women’s sports combined, derived by the

3 institution from the institution’s intercollegiate

4 athletics activities.

5 ‘‘(ii) For the purpose of clause (i) revenues

6 from intercollegiate athletics activities allocable

7 to a sport shall include, without limitation, gate

8 receipts, broadcast revenues, appearance guaran9 tees and options, concessions and advertising, ex10 cept that revenues such as student activities fees

11 or alumni contributions not so allocable shall be

12 included in the calculation of total revenues

13 only.

14 ‘‘(J)(i) The total expenses, and the expenses

15 attributable to football, men’s basketball, wom16 en’s basketball, all other men’s sports combined

17 and all other women’s sports combined, made by

18 the institution for the institution’s intercollegiate

19 athletics activities.

20 ‘‘(ii) For the purpose of clause (i) expenses

21 for intercollegiate athletics activities allocable to

22 a sport shall include without limitation grants23 in-aid, salaries, travel, equipment, and supplies,

24 except that expenses such as general and admin-
307

HR 6 EAS

1 istrative overhead not so allocable shall be in2 cluded in the calculation of total expenses only.’’.

3 (2) by striking paragraph (5);

4 (3) by redesignating paragraph (4) as para5 graph (5); and

6 (4) by inserting after paragraph (3) the follow7 ing:

8 ‘‘(4) SUBMISSION; REPORT; INFORMATION AVAIL9 ABILITY.—(A) Each institution of higher education

10 described in paragraph (1) shall provide to the Sec11 retary, within 15 days of the date that the institution

12 makes available the report under paragraph (1), the

13 information contained in the report.

14 ‘‘(B) The Secretary shall prepare a report re15 garding the information received under subparagraph

16 (A) for each year by April 1 of the year. The report

17 shall—

18 ‘‘(i) summarize the information and iden19 tify trends in the information;

20 ‘‘(ii) aggregate the information by divisions

21 of the National Collegiate Athletic Association;

22 and

23 ‘‘(iii) contain information on each individ24 ual institution of higher education.
308

HR 6 EAS

1 ‘‘(C) The Secretary shall ensure that the report

2 described in subparagraph (B) is made available on

3 the Internet within a reasonable period of time.

4 ‘‘(D) The Secretary shall notify, not later than

5 180 days after the date of enactment of the Higher

6 Education Amendments of 1998, all secondary schools

7 in all States regarding the availability of the infor8 mation reported under subparagraph (B) and the in9 formation made available under paragraph (1), and

10 how such information may be accessed.’’.

11 (f) GEPA AMENDMENT.—Section 444(a)(4)(B) of the

12 General Education Provisions Act (20 U.S.C.

13 1232g(a)(4)(B)) is amended—

14 (1) by redesignating clauses (iii) and (iv) as

15 clauses (iv) and (v), respectively; and

16 (2) by inserting after clause (ii) the following:

17 ‘‘(iii) records that are maintained by

18 local police or campus security officers of an

19 educational agency or institution about—

20 ‘‘(I) individuals who have been

21 found guilty of, or have pled guilty to,

22 committing or participating in any

23 criminal activity as defined in Fed24 eral, State, or local law that has oc25 curred while the individual was a stu-
309

HR 6 EAS

1 dent in attendance, including audit or

2 noncredit, at an educational institu3 tion; and

4 ‘‘(II) findings of guilt of criminal

5 misconduct and related sanctions from

6 any previously attended educational

7 agencies or institutions where such

8 records were created on or after Sep9 tember 1, 1999;’’.

10 SEC. 487. NATIONAL STUDENT LOAN DATA BANK SYSTEM.

11 Section 485B (20 U.S.C. 1092b) is amended by adding

12 at the end the following:

13 ‘‘(h) STUDENT STATUS CONFIRMATION REPORT.—In

14 order to reduce unnecessary paperwork and to increase the

15 efficient administration, the Secretary shall assure that bor16 rowers under part E are included in the Student Status

17 Confirmation Report in the same manner as borrowers

18 under parts B and D.’’.

19 SEC. 488. TRAINING IN FINANCIAL AID SERVICES.

20 Section 486 (20 U.S.C. 1093) is amended to read as

21 follows:
310

HR 6 EAS

1 ‘‘SEC. 486. INFORMATION ON THE COSTS OF HIGHER EDU2 CATION.

3 ‘‘(a) IN GENERAL.—For the purpose of providing com4 parative information to families about the costs of higher

5 education—

6 ‘‘(1) the National Center for Education Statistics

7 shall—

8 ‘‘(A) develop a standard definition for the

9 following data elements:

10 ‘‘(i) Tuition and fees for a full-time

11 undergraduate student.

12 ‘‘(ii) Cost of attendance for a full-time

13 undergraduate student, consistent with the

14 provisions of section 472.

15 ‘‘(iii) Average amount of financial as16 sistance received by an undergraduate stu17 dent who attends an institution of higher

18 education, including—

19 ‘‘(I) each type of assistance or

20 benefit described in section

21 428(a)(2)(C)(i);

22 ‘‘(II) fellowships; and

23 ‘‘(III) institutional and other as24 sistance.
311

HR 6 EAS

1 ‘‘(iv) Percentage of students receiving

2 financial assistance described in each of

3 subclauses (I), (II), and (III) of clause (iii);

4 ‘‘(B) report the definitions to each institu5 tion of higher education and the Committee on

6 Labor and Human Resources of the Senate and

7 the Committee on Education and the Workforce

8 of the House of Representatives not later than 90

9 days after the date of enactment of the Higher

10 Education Amendments of 1998;

11 ‘‘(C) collect information regarding the data

12 elements described in subparagraph (A) with re13 spect to at least all institutions of higher edu14 cation participating in the program under this

15 title, and make available the information each

16 year in a timely fashion through the integrated

17 postsecondary education data system, beginning

18 with the information from the 1999–2000 aca19 demic year;

20 ‘‘(D) provide the public notice when the in21 formation described in subparagraph (C) is

22 available for public inspection; and

23 ‘‘(E) publish in a timely fashion a report

24 after the third year of collection of the informa25 tion described in subparagraph (C) that com-
312

HR 6 EAS

1 pares the information described in subparagraph

2 (C) longitudinally by institution, which infor3 mation shall be presented in a form that is eas4 ily understandable, including clear definitions of

5 the data elements described in subparagraph (A),

6 to allow parents and students to make informed

7 decisions about attending college; and

8 ‘‘(2) institutions of higher education shall pro9 vide information regarding each data element de10 scribed in paragraph (1)(A) to the National Center

11 for Education Statistics by March 1 of each year, be12 ginning in the year 2000.

13 ‘‘(b) STUDY.—

14 ‘‘(1) IN GENERAL.—In consultation with the Bu15 reau of Labor Statistics, the National Center for Edu16 cation Statistics shall conduct a national study of ex17 penditures at institutions of higher education. Such

18 study shall include information about—

19 ‘‘(A) expenditures for—

20 ‘‘(i) faculty salaries and benefits;

21 ‘‘(ii) administrative salaries, benefits,

22 and expenses;

23 ‘‘(iii) academic support services;

24 ‘‘(iv) research;

25 ‘‘(v) operations and maintenance;
313

HR 6 EAS

1 ‘‘(vi) construction; and

2 ‘‘(vii) technology;

3 ‘‘(B) the replacement cost of instructional

4 buildings and equipment;

5 ‘‘(C) how the expenditures described in sub6 paragraph (A) change over time; and

7 ‘‘(D) how the expenditures described in sub8 paragraph (A) and the replacement cost de9 scribed in subparagraph (B) relate to college

10 costs.

11 ‘‘(2) FINAL REPORT.—The National Center for

12 Education Statistics shall submit a report regarding

13 the findings of the study required by paragraph (1)

14 to the Committee on Labor and Human Resources of

15 the Senate and the Committee on Education and the

16 Workforce of the House of Representatives not later

17 than September 30, 2001.

18 ‘‘(c) HIGHER EDUCATION MARKET BASKET.—In con19 sultation with the Bureau of Labor Statistics, the National

20 Center for Education Statistics shall develop a Higher Edu21 cation Market Basket that identifies the items that comprise

22 the costs of higher education. The National Center for Edu23 cation Statistics shall provide a report on the market basket

24 to the Committee on Labor and Human Resources of the

25 Senate and the Committee on Education and the Workforce
314

HR 6 EAS

1 of the House of Representatives not later than September

2 30, 2002.

3 ‘‘(d) FINES.—In addition to the actions authorized in

4 section 487(c), the Secretary may impose a fine in an

5 amount not to exceed $25,000 on an institution of higher

6 education for failure to provide the information described

7 in subsection (a)(2) in a timely or accurate manner, or for

8 failure to otherwise cooperate with the National Center for

9 Education Statistics regarding efforts to obtain data on the

10 cost of higher education under such subsection.’’.

11 SEC. 489. PROGRAM PARTICIPATION AGREEMENTS.

12 (a) IN GENERAL.—Section 487 (20 U.S.C. 1094) is

13 amended—

14 (1) in subsection (a)—

15 (A) in paragraph (3)—

16 (i) by striking subparagraph (B); and

17 (ii) by redesignating subparagraphs

18 (C) and (D) as subparagraphs (B) and (C),

19 respectively;

20 (B) in paragraph (9), by striking ‘‘part B’’

21 and inserting ‘‘part B or D’’;

22 (C) in paragraph (14)—

23 (i) in subparagraph (A), by striking

24 ‘‘part B’’ and inserting ‘‘part B or D’’; and

25 (ii) in subparagraph (B)—
315

HR 6 EAS

1 (I) by inserting ‘‘for-profit’’ after

2 ‘‘Any’’;

3 (II) by striking ‘‘and any eligible

4 institution which’’ and inserting ‘‘or’’;

5 and

6 (III) by striking ‘‘part B’’ and in7 serting ‘‘part B or D’’;

8 (D) in paragraph (15), by striking ‘‘State

9 review entities’’ and inserting ‘‘the State agen10 cies’’;

11 (E) by striking paragraph (18);

12 (F) by redesignating paragraphs (19)

13 through (22) as paragraphs (18) through (21),

14 respectively; and

15 (G) by amending paragraph (20) (as redes16 ignated by subparagraph (F)) to read as follows:

17 ‘‘(20) The institution will meet the requirements

18 established by the Secretary and accrediting agencies

19 or associations, and will provide evidence to the Sec20 retary that the institution has the authority to oper21 ate within a State.’’; and

22 (2) in subsection (c)—

23 (A) in paragraph (1)(A)—

24 (i) in clause (i)—
316

HR 6 EAS

1 (I) by striking ‘‘clause (ii)’’ and

2 inserting ‘‘clauses (ii) and (iii)’’;

3 (II) by striking ‘‘State review en4 tities referred to in’’ and inserting

5 ‘‘appropriate State agency notifying

6 the Secretary under’’; and

7 (III) by striking ‘‘or’’ after the

8 semicolon;

9 (ii) in clause (ii), by inserting ‘‘or’’

10 after the semicolon; and

11 (iii) by adding at the end the follow12 ing:

13 ‘‘(iii) with regard to an eligible institution

14 (other than an eligible institution described in section

15 481(a)(1)(C)) that has obtained less than $200,000 in

16 funds under this title during each of the 2 award

17 years that precede the audit period and submits a let18 ter of credit payable to the Secretary equal to not less

than 1 19 ⁄2 of the annual potential liabilities of such in20 stitution as determined by the Secretary, deeming an

21 audit conducted every 3 years to satisfy the require22 ments of clause (i), except for the award year imme23 diately preceding renewal of the institution’s eligi24 bility under section 498(g);’’;
317

HR 6 EAS

1 (B) in paragraph (4), by striking ‘‘, after

2 consultation with each State review entity des3 ignated under subpart 1 of part H,’’; and

4 (C) in paragraph (5), by striking ‘‘State re5 view entities designated’’ and inserting ‘‘State

6 agencies notifying the Secretary’’.

7 (b) PROVISION OF VOTER REGISTRATION FORMS.—

8 (1) PROGRAM PARTICIPATION REQUIREMENT.—

9 Section 487(a) (20 U.S.C. 1094(a)) is amended by

10 adding at the end the following:

11 ‘‘(23) The institution, if located in a State to

12 which section 113 applies, will make a good faith ef13 fort to provide a mail voter registration form, re14 ceived from such State, to each student enrolled in a

15 degree or certificate program and in attendance at the

16 institution and to make such forms widely available

17 to students at the institution.’’.

18 (2) REGULATION PROHIBITED.—No officer of the

19 executive branch is authorized to instruct the State in

20 the manner in which the amendment made by this

21 subsection is carried out.

22 SEC. 490. REGULATORY RELIEF AND IMPROVEMENT.

23 Section 487A (20 U.S.C. 1094a) is amended to read

24 as follows:
318

HR 6 EAS

1 ‘‘SEC. 487A. REGULATORY RELIEF AND IMPROVEMENT.

2 ‘‘(a) QUALITY ASSURANCE PROGRAM.—

3 ‘‘(1) IN GENERAL.—The Secretary is authorized

4 to select institutions for voluntary participation in a

5 Quality Assurance Program that provides participat6 ing institutions with an alternative management ap7 proach through which individual schools develop and

8 implement their own comprehensive systems, includ9 ing processing and disbursement of student financial

10 aid, verification of student financial aid application

11 data, and entrance and exit interviews, thereby en12 hancing program integrity within the student aid de13 livery system. The Quality Assurance Program au14 thorized by this section shall be based on criteria that

15 include demonstrated institutional performance, as

16 determined by the Secretary, and shall take into con17 sideration current quality assurance goals, as deter18 mined by the Secretary.

19 ‘‘(2) WAIVER.—The Secretary is authorized to

20 waive for any institution participating in the Qual21 ity Assurance Program any regulations dealing with

22 reporting or verification requirements in this title

23 that are addressed by the institution’s alternative

24 management system, and may substitute such quality

25 assurance reporting as the Secretary determines nec-
319

HR 6 EAS

1 essary to ensure accountability and compliance with

2 the purposes of the programs under this title.

3 ‘‘(3) DETERMINATION.—The Secretary is author4 ized to determine—

5 ‘‘(A) when an institution that is unable to

6 administer the Quality Assurance Program shall

7 be removed from such program; and

8 ‘‘(B) when institutions desiring to cease

9 participation in such program will be required

10 to complete the current award year under the re11 quirements of the Quality Assurance Program.

12 ‘‘(4) REVIEW AND EVALUATION.—The Secretary

13 shall review and evaluate the Quality Assurance Pro14 gram conducted by each participating institution

15 and, on the basis of that evaluation, make rec16 ommendations regarding amendments to this Act that

17 will streamline the administration and enhance the

18 integrity of Federal student assistance programs.

19 Such recommendations shall be submitted to the Com20 mittee on Labor and Human Resources of the Senate

21 and the Committee on Education and the Workforce

22 of the House of Representatives.

23 ‘‘(b) REGULATORY IMPROVEMENT AND STREAMLINING

24 EXPERIMENTS.—
320

HR 6 EAS

1 ‘‘(1) IN GENERAL.—The Secretary shall review

2 and evaluate the experience of institutions participat3 ing as experimental sites during the period of 1993

4 through 1998 under this section (as such section was

5 in effect on the day before the date of enactment of

6 the Higher Education Amendments of 1998), and

7 shall submit a report based on this review and eval8 uation to the Committee on Labor and Human Re9 sources of the Senate and the Committee on Edu10 cation and the Workforce of the House of Representa11 tives not later than 6 months after the enactment of

12 the Higher Education Amendments of 1998. Such re13 port shall include—

14 ‘‘(A) a list of participating institutions and

15 the specific statutory or regulatory waivers

16 granted to each institution;

17 ‘‘(B) the findings and conclusions reached

18 regarding each of the experiments conducted; and

19 ‘‘(C) recommendations for amendments to

20 improve and streamline this Act, based on the

21 results of the experiment.

22 ‘‘(2) SELECTION.—

23 ‘‘(A) IN GENERAL.—The Secretary is au24 thorized to select a limited number of institu25 tions for voluntary participation as experi-
321

HR 6 EAS

1 mental sites to provide recommendations to the

2 Secretary on the impact and effectiveness of pro3 posed regulations or new management initia4 tives, except that additional institutions may not

5 be selected by the Secretary until the report re6 quired by subsection (b)(1) has been submitted to

7 Congress.

8 ‘‘(B) CONSULTATION.—Prior to approving

9 any additional experimental sites, the Secretary

10 shall consult with the Committee on Labor and

11 Human Resources of the Senate and the Com12 mittee on Education and the Workforce of the

13 House of Representatives and shall provide—

14 ‘‘(i) a list of institutions proposed for

15 participation in the experiment and the

16 specific statutory or regulatory waivers pro17 posed to be granted to each institution;

18 ‘‘(ii) the objectives to be achieved

19 through the experiment; and

20 ‘‘(iii) the period of time over which the

21 experiment is to be conducted.

22 ‘‘(C) WAIVERS.—The Secretary is author23 ized to waive, for any institution participating

24 as an experimental site under subparagraph (A),

25 any requirements in this title, or regulations
322

HR 6 EAS

1 prescribed under this title, that will bias experi2 mental results.

3 ‘‘(c) REGULATORY AND STATUTORY RELIEF FOR

4 SMALL VOLUME INSTITUTIONS.—The Secretary, following

5 discussions with representatives of eligible institutions

6 (other than eligible institutions described in section

7 481(a)(1)(C)) that have obtained in each of the 2 most re8 cent award years prior to the date of enactment of the High9 er Education Amendments of 1998 less than $200,000 in

10 funds through this title, shall review and evaluate ways in

11 which regulations under and provisions of this Act affecting

12 the institutions may be improved, streamlined, or elimi13 nated, and shall submit, not later than 1 year after the en14 actment of the Higher Education Amendments of 1998, a

15 report to the Committee on Labor and Human Resources

16 of the Senate and the Committee on Education and the

17 Workforce of the House of Representatives detailing the Sec18 retary’s findings and recommendations, including a time19 table for implementation of any recommended changes.

20 ‘‘(d) DEFINITIONS.—For purposes of this section, the

21 term ‘current award year’ is defined as the award year dur22 ing which the participating institution indicates the insti23 tution’s intention to cease participation.’’.
323

HR 6 EAS

1 SEC. 490A. DISTANCE EDUCATION DEMONSTRATION PRO2 GRAMS.

3 Part G (20 U.S.C. 1088 et seq.) is amended by insert4 ing after section 487B (20 U.S.C. 1094a) the following:

5 ‘‘SEC. 487C. DISTANCE EDUCATION DEMONSTRATION PRO6 GRAMS.

7 ‘‘(a) PURPOSE.—It is the purpose of this section—

8 ‘‘(1) to allow demonstration programs that are

9 strictly monitored by the Department to test the qual10 ity and viability of expanded distance education pro11 grams currently restricted under this Act;

12 ‘‘(2) to help determine the specific statutory and

13 regulatory requirements which should be altered to

14 provide greater access to high quality distance edu15 cation programs; and

16 ‘‘(3) to help determine the appropriate level of

17 Federal assistance for students enrolled in distance

18 education programs.

19 ‘‘(b) DEMONSTRATION PROGRAMS AUTHORIZED.—

20 ‘‘(1) IN GENERAL.—The Secretary, in accordance

21 with the provisions of subsection (d), is authorized to

22 select institutions of higher education or consortia of

23 such institutions for voluntary participation in a

24 Distance Education Demonstration Program that

25 provides participating institutions with the ability to

26 offer distance education programs that do not meet all
324

HR 6 EAS

1 or a portion of the sections or regulations described

2 in paragraph (2).

3 ‘‘(2) WAIVERS.—The Secretary is authorized to

4 waive for any institution of higher education, system

5 of institutions of higher education, or consortium par6 ticipating in a Distance Education Demonstration

7 Program, the requirements of section 472(5) as the

8 section relates to computer costs, sections 481(d) and

9 481(e) as such sections relate to requirements for a

10 minimum number of weeks of instruction, sections

11 472(10), 481(a)(3)(A), 481(a)(3)(B), 484(l)(1), or 1

12 or more of the regulations prescribed under this part

13 or part F which inhibit the operation of quality dis14 tance education programs.

15 ‘‘(3) SPECIAL RULES.—

16 ‘‘(A) ELIGIBLE INSTITUTIONS.—Only an

17 institution of higher education that provides at

18 least a 2-year, or 4-year program of instruction

19 for which the institution awards an associate or

20 a baccalaureate degree, or provides a graduate

21 degree, shall be eligible to participate in the dem22 onstration program authorized under this sec23 tion.

24 ‘‘(B) PROHIBITION.—An institution of high25 er education described in section 481(a)(1)(C)
325

HR 6 EAS

1 shall not be eligible to participate in the dem2 onstration program authorized under this sec3 tion.

4 ‘‘(C) SPECIAL RULE.—Subject to subpara5 graph (B), an institution of higher education

6 that meets the requirements of subsection (a) of

7 section 481, other than the requirement of para8 graph (3)(A) or (3)(B) of such subsection, shall

9 be eligible to participate in the demonstration

10 program authorized under this section.

11 ‘‘(D) REQUIREMENT.—Notwithstanding any

12 other provision of this paragraph, Western Gov13 ernors University shall be considered eligible to

14 participate in the demonstration program au15 thorized under this section, and the Secretary

16 may, in addition to the waivers described in

17 paragraph (2), waive for such university such

18 other requirements of this title as the Secretary

19 determines to be appropriate because of the

20 unique characteristics of such university. In car21 rying out the preceding sentence, the Secretary

22 shall ensure that adequate program integrity

23 and accountability measures apply to such uni24 versity’s participation in the demonstration pro25 gram authorized under this section.
326

HR 6 EAS

1 ‘‘(c) APPLICATION.—

2 ‘‘(1) IN GENERAL.—Each institution or consortia

3 of institutions desiring to participate in a demonstra4 tion program under this section shall submit an ap5 plication to the Secretary at such time and in such

6 manner as the Secretary may require.

7 ‘‘(2) CONTENTS.—Each application shall in8 clude—

9 ‘‘(A) a description of the institution or con10 sortium’s consultation with a recognized accred11 iting agency or association with respect to qual12 ity assurances for the distance education pro13 grams to be offered;

14 ‘‘(B) a description of the statutory and reg15 ulatory requirements described in subsection

16 (b)(2) for which a waiver is sought and the rea17 sons for which the waiver is sought;

18 ‘‘(C) a description of the distance education

19 programs to be offered;

20 ‘‘(D) a description of the students to whom

21 distance education programs will be offered;

22 ‘‘(E) an assurance that the institution or

23 consortium will offer full cooperation with the

24 ongoing evaluations of the demonstration pro25 gram provided for in this section; and
327

HR 6 EAS

1 ‘‘(F) such other information as the Sec2 retary may require.

3 ‘‘(d) SELECTION.—

4 ‘‘(1) IN GENERAL.—For the first year of the

5 demonstration program authorized under this section,

6 the Secretary is authorized to select for participation

7 in the program not more than 15 institutions, sys8 tems of institutions, or consortia of institutions. For

9 the third year of the demonstration program author10 ized under this title, the Secretary may select not

11 more than 35 institutions, systems, or consortia, in

12 addition to the institutions, systems, or consortia se13 lected pursuant to the preceding sentence, to partici14 pate in the demonstration program if the Secretary

15 determines that such expansion is warranted based on

16 the evaluations conducted in accordance with sub17 sections (f) and (g).

18 ‘‘(2) CONSIDERATIONS.—In selecting institutions

19 to participate in the demonstration program in the

20 first or succeeding years of the program, the Secretary

21 shall take into account—

22 ‘‘(A) the number and quality of applica23 tions received;
328

HR 6 EAS

1 ‘‘(B) the Department’s capacity to oversee

2 and monitor each institution’s participation;

3 and

4 ‘‘(C) an institution’s—

5 ‘‘(i) financial responsibility;

6 ‘‘(ii) administrative capability; and

7 ‘‘(iii) program or programs being of8 fered via distance education.

9 ‘‘(e) NOTIFICATION.—The Secretary shall make avail10 able to the public and to the Committee on Labor and

11 Human Resources of the Senate and the Committee on Edu12 cation and the Workforce of the House of Representatives

13 a list of institutions or consortia selected to participate in

14 the demonstration program authorized by this section. Such

15 notice shall include a listing of the specific statutory and

16 regulatory requirements being waived for each institution

17 or consortia and a description of the distance education

18 courses to be offered.

19 ‘‘(f) EVALUATIONS AND REPORTS.—

20 ‘‘(1) EVALUATION.—The Secretary, on an an21 nual basis, shall evaluate the demonstration programs

22 authorized under this section. Such evaluations shall

23 specifically review—

24 ‘‘(A) the number and types of students par25 ticipating in the programs being offered, includ-
329

HR 6 EAS

1 ing the progress of participating students toward

2 recognized associate, bachelor’s, or graduate de3 grees, and the degree to which participation in

4 such programs increased;

5 ‘‘(B) issues related to student financial as6 sistance for distance education; and

7 ‘‘(C) the extent to which statutory or regu8 latory requirements not waived under the dem9 onstration program present difficulties for stu10 dents or institutions.

11 ‘‘(2) POLICY ANALYSIS.—In addition, the Sec12 retary shall review current policies and identify those

13 policies which present impediments to the develop14 ment and use of distance education and other non15 traditional methods of expanding access to education.

16 ‘‘(3) REPORTS.—

17 ‘‘(A) IN GENERAL.—Within 18 months of

18 the initiation of the demonstration program, the

19 Secretary shall report to the Committee on Labor

20 and Human Resources of the Senate and the

21 Committee on Education and the Workforce of

22 the House of Representatives with respect to—

23 ‘‘(i) the evaluations of the demonstra24 tion programs authorized under this section;

25 and
330

HR 6 EAS

1 ‘‘(ii) any proposed statutory changes

2 designed to enhance the use of distance edu3 cation.

4 ‘‘(B) ADDITIONAL REPORTS.—The Secretary

5 shall provide additional reports to the Committee

6 on Labor and Human Resources of the Senate

7 and the Committee on Education and the Work8 force of the House of Representatives on an an9 nual basis regarding—

10 ‘‘(i) the demonstration programs au11 thorized under this section; and

12 ‘‘(ii) the number and types of students

13 receiving assistance under this title for in14 struction leading to a recognized certificate,

15 as provided for in section 484(l)(1), includ16 ing the progress of such students toward rec17 ognized certificates and the degree to which

18 participation in such programs leading to

19 such certificates increased.

20 ‘‘(g) INDEPENDENT EVALUATION.—

21 ‘‘(1) IN GENERAL.—The Secretary shall enter

22 into a contract with the National Academy of

23 Sciences to study the quality of and student learning

24 outcomes in distance education programs. Such study

25 shall include—
331

HR 6 EAS

1 ‘‘(A) identification of the elements by which

2 quality in distance education can be assessed,

3 such as subject matter, interactivity, and student

4 outcomes; and

5 ‘‘(B) identification of the types of students

6 which can most benefit from distance education

7 in areas such as access to higher education, per8 sistence, and graduation.

9 ‘‘(2) SCOPE.—Such study shall include distance

10 education programs offered by the institutions or con11 sortia participating in the demonstration program

12 authorized by this section, as well as the distance edu13 cation programs offered by other institutions.

14 ‘‘(3) INTERIM AND FINAL REPORTS.—The Sec15 retary shall request that the National Academy of

16 Sciences submit an interim report to the Secretary,

17 the Committee on Labor and Human Resources of the

18 Senate, and the Committee on Education and the

19 Workforce of the House of Representatives not later

20 than December 31, 2000, and a final report not later

21 than December 31, 2002, regarding the study.

22 ‘‘(4) FUNDING.—The Secretary shall make avail23 able not more than $1,000,000 for the study required

24 by this subsection.
332

HR 6 EAS

1 ‘‘(h) OVERSIGHT.—In conducting the demonstration

2 program authorized under this section, the Secretary shall,

3 on a continuing basis—

4 ‘‘(1) assure compliance of institutions or consor5 tia with the requirements of this title (other than the

6 sections and regulations that are waived under sub7 section (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, the

16 term ‘distance education’ means an educational process that

17 is characterized by the separation, in time or place, between

18 instructor and student. Distance education may include

19 courses offered principally through the use of—

20 ‘‘(1) television, audio, or computer transmission,

21 such as open broadcast, closed circuit, cable, micro22 wave, or satellite transmission;

23 ‘‘(2) audio or computer conferencing;

24 ‘‘(3) video cassettes or discs; or

25 ‘‘(4) correspondence.’’.
333

HR 6 EAS

1 SEC. 490B. 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 ‘‘and

6 expenditures’’ and inserting ‘‘, expenditures and

7 staffing levels’’; and

8 (B) by inserting after the third sentence the

9 following: ‘‘Reports, publications, and other doc10 uments, 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), respec16 tively; and

17 (B) by inserting after paragraph (2) the fol18 lowing:

19 ‘‘(3) No officers or full-time employees of the

20 Federal Government shall serve as members of the Ad21 visory Committee.’’;

22 (3) in subsection (g), by striking ‘‘(1) Members’’

23 and all that follows through ‘‘of the United States

24 may’’ and inserting ‘‘Members of the Advisory Com25 mittee may’’;

26 (4) in subsection (h)(1)—
334

HR 6 EAS

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 more

5 than 1 full-time equivalent, nonpermanent, con6 sultant without regard to the provisions of title

7 5, United States Code. The Advisory Committee

8 shall not be required by the Secretary to reduce

9 personnel to meet agency personnel reduction

10 goals.’’;

11 (5) in subsection (i), by striking ‘‘$750,000’’ and

12 inserting ‘‘$800,000’’;

13 (6) by amending subsection (j) to read as follows:

14 ‘‘(j) SPECIAL ANALYSES AND ACTIVITIES.—The Advi15 sory Committee shall—

16 ‘‘(1) monitor and evaluate the modernization of

17 student financial aid systems and delivery processes,

18 including the implementation of a performance-based

19 organization within the Department, and report to

20 Congress regarding such modernization on not less

21 than an annual basis, including recommendations for

22 improvement;

23 ‘‘(2) assess the adequacy of current methods for

24 disseminating information about programs under this

25 title and recommend improvements, as appropriate,
335

HR 6 EAS

1 regarding early needs assessment and information for

2 first-year secondary school students;

3 ‘‘(3) assess and make recommendations concern4 ing the feasibility and degree of use of appropriate

5 technology in the application for, and delivery and

6 management of, financial assistance under this title,

7 as well as policies that promote use of such technology

8 to reduce cost and enhance service and program integ9 rity, including electronic application and reapplica10 tion, just-in-time delivery of funds, reporting of dis11 bursements and reconciliation;

12 ‘‘(4) assess the implications of distance education

13 on student eligibility and other requirements for fi14 nancial assistance under this title, and make rec15 ommendations that will enhance access to postsecond16 ary education through distance education while main17 taining access, through on-campus instruction at eli18 gible institutions, and program integrity; and

19 ‘‘(5) make recommendations to the Secretary re20 garding redundant or outdated provisions of and reg21 ulations under this Act, consistent with the Sec22 retary’s requirements under section 498A(b)(3).’’;

23 (7) in subsection (k), by striking ‘‘1998’’ and in24 serting ‘‘2004’’; and

25 (8) by repealing subsection (l).
336

HR 6 EAS

1 SEC. 490C. REGIONAL MEETINGS AND NEGOTIATED RULE2 MAKING.

3 Section 492 (20 U.S.C. 1098a) is amended—

4 (1) in subsection (a)—

5 (A) in paragraph (1)—

6 (i) by inserting ‘‘D,’’ after ‘‘B,’’; and

7 (ii) by striking ‘‘Such meetings shall

8 include’’ and inserting ‘‘The Secretary shall

9 obtain the advice of and recommendations

10 from’’; and

11 (B) in paragraph (2)—

12 (i) by striking ‘‘During such meetings

13 the’’ and inserting ‘‘The’’;

14 (ii) by inserting ‘‘D,’’ after ‘‘B,’’; and

15 (iii) by striking ‘‘1992’’ and inserting

16 ‘‘1998 through such mechanisms as regional

17 meetings and electronic exchanges of infor18 mation’’; and

19 (2) in subsection (b)—

20 (A) by striking ‘‘After’’ and inserting the

21 following:

22 ‘‘(1) IN GENERAL.—After’’;

23 (B) in paragraph (1) (as redesignated by

24 subparagraph (A))—

25 (i) by striking ‘‘holding regional meet26 ings’’ and inserting ‘‘obtaining the advice
337

HR 6 EAS

1 and recommendations described in sub2 section (a)(1)’’;

3 (ii) by inserting ‘‘D,’’ after ‘‘B,’’;

4 (iii) by striking ‘‘1992’’ and inserting

5 ‘‘1998’’; and

6 (iv) by striking ‘‘The Secretary shall

7 follow the guidance provided in sections

8 305.82–4 and 305.85–5 of chapter 1, Code

9 of Federal Regulations, and any successor

10 recommendation, regulation, or law.’’; 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 the

17 negotiated rulemaking process, unless the Secretary

18 determines that exceptional circumstances exist mak19 ing negotiated rulemaking unnecessary or inadvisable

20 with respect to given regulations and publishes the

21 basis for such determination in the Federal Register

22 at the same time as the proposed regulations in ques23 tions are first published. All published proposed regu24 lations shall conform, unless impracticable, to agree25 ments resulting from such negotiated rulemaking.
338

HR 6 EAS

1 Such negotiated rulemaking shall be conducted in ac2 cordance with the provisions of paragraph (1).’’.

3 SEC. 490D. PROCEDURES FOR CANCELLATIONS AND

4 DEFERMENTS FOR ELIGIBLE DISABLED VET5 ERANS.

6 Part G of title IV (20 U.S.C. 1088 et seq.) is amended

7 by adding at the end the following:

8 ‘‘SEC. 493A. PROCEDURES FOR CANCELLATIONS AND

9 DEFERMENTS FOR ELIGIBLE DISABLED VET10 ERANS.

11 ‘‘The Secretary, in consultation with the Secretary of

12 Veterans Affairs, shall develop and implement a procedure

13 to permit Department of Veterans Affairs physicians to pro14 vide the certifications and affidavits needed to enable dis15 abled veterans enrolled in the Department of Veterans Af16 fairs health care system to document such veterans’ eligi17 bility for deferments or cancellations of student loans made,

18 insured, or guaranteed under this title. Not later than 6

19 months after the date of enactment of the Higher Education

20 Amendments of 1998, the Secretary and the Secretary of

21 Veterans Affairs jointly shall report to Congress on the

22 progress made in developing and implementing the proce23 dure.’’.
339

HR 6 EAS

1 PART H—PROGRAM INTEGRITY TRIAD

2 SEC. 491. STATE ROLE AND RESPONSIBILITIES.

3 Subpart 1 of part H of title IV (20 U.S.C. 1099a et

4 seq.) is amended to read as follows:

5 ‘‘Subpart 1—State Role

6 ‘‘SEC. 495. STATE RESPONSIBILITIES.

7 ‘‘(a) STATE RESPONSIBILITIES.—As part of the integ8 rity program authorized by this part, each State, through

9 1 State agency or several State agencies selected by the

10 State, shall—

11 ‘‘(1) furnish the Secretary, upon request, infor12 mation with respect to the process for licensing or

13 other authorization for institutions of higher edu14 cation to operate within the State;

15 ‘‘(2) notify the Secretary promptly whenever the

16 State revokes a license or other authority to operate

17 an institution of higher education; and

18 ‘‘(3) notify the Secretary promptly whenever the

19 State has credible evidence that an institution of

20 higher education within the State—

21 ‘‘(A) has committed fraud in the adminis22 tration of the student assistance programs au23 thorized by this title; or

24 ‘‘(B) has substantially violated a provision

25 of this title.
340

HR 6 EAS

1 ‘‘(b) INSTITUTIONAL RESPONSIBILITY.—Each institu2 tion of higher education shall provide evidence to the Sec3 retary that the institution has authority to operate within

4 a State at the time the institution is certified under subpart

5 3.’’.

6 SEC. 492. ACCREDITING AGENCY RECOGNITION.

7 (a) AMENDMENTS TO HEADINGS.—Subpart 2 of part

8 H of title IV (20 U.S.C. 1099b et seq.) is amended—

9 (1) in the subpart heading, by striking ‘‘Ap10 proval’’ and inserting ‘‘Recognition’’; and

11 (2) in the heading for section 496, by striking

12 ‘‘APPROVAL’’ and inserting ‘‘RECOGNITION’’.

13 (b) RECOGNITION OF ACCREDITING AGENCY OR ASSO14 CIATION.—Section 496 (20 U.S.C. 1099b) is amended—

15 (1) in the heading for subsection (a), by striking

16 ‘‘STANDARDS’’ and inserting ‘‘CRITERIA’’;

17 (2) in subsection (a)—

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

19 by striking ‘‘standards’’ each place the term ap20 pears and inserting ‘‘criteria’’;

21 (B) in paragraph (4)—

22 (i) by striking ‘‘at the institution’’ and

23 inserting ‘‘offered by the institution’’; and
341

HR 6 EAS

1 (ii) by inserting ‘‘, including distance

2 education courses or programs,’’ after

3 ‘‘higher education’’; and

4 (C) in paragraph (5)—

5 (i) by striking subparagraph (I);

6 (ii) by redesignating subparagraphs

7 (A) through (H) as subparagraphs (B)

8 through (I), respectively;

9 (iii) by inserting before subparagraph

10 (B) the following:

11 ‘‘(A) success with respect to student achieve12 ment in relation to the institution’s mission, in13 cluding, as appropriate, consideration of course

14 completion, State licensing examination, and job

15 placement rates;’’;

16 (iv) in subparagraph (I) (as redesig17 nated by clause (ii)), by striking ‘‘in clock

18 hours or credit hours’’; and

19 (v) in subparagraph (L)—

20 (I) by inserting ‘‘record of’’ before

21 ‘‘compliance’’;

22 (II) by striking ‘‘Act, including

23 any’’ and inserting ‘‘Act based on the’’;

24 (III) by inserting ‘‘any’’ after ‘‘re25 views, and’’; and
342

HR 6 EAS

1 (IV) in the matter following sub2 paragraph (L), by striking ‘‘(G),’’;

3 (3) by amending paragraph (1) of subsection (l)

4 to read as follows: ‘‘(1)(A)(i) If the Secretary deter5 mines that an accrediting agency or association has

6 failed to apply effectively the standards in this sec7 tion, or is otherwise not in compliance with the re8 quirements of this section, the Secretary shall—

9 ‘‘(I) after notice and opportunity for a

10 hearing, limit, suspend, or terminate the ap11 proval of the agency or association; or

12 ‘‘(II) require the agency or association to

13 take appropriate action to bring the agency or

14 association into compliance with such require15 ments within a timeframe specified by the Sec16 retary, except that—

17 ‘‘(aa) such timeframe shall not exceed

18 12 months unless the Secretary extends such

19 period for good cause; and

20 ‘‘(bb) if the agency or association fails

21 to bring the agency or association into com22 pliance within such timeframe, the Sec23 retary shall, after notice and opportunity

24 for a hearing, limit, suspend, or terminate
343

HR 6 EAS

1 the approval of the agency or association.’’;

2 and

3 (4) in subsection (n)(3), by adding at the end the

4 following: ‘‘When the Secretary decides to recognize

5 an accrediting agency or association, the Secretary

6 shall determine the agency or association’s scope of

7 recognition. If the agency or association reviews insti8 tutions offering distance education courses or pro9 grams and the Secretary determines that the agency

10 or association meets the requirements of this section,

11 then the agency shall be recognized and the scope of

12 recognition shall include accreditation of institutions

13 offering distance education courses or programs.’’.

14 SEC. 493. ELIGIBILITY AND CERTIFICATION PROCEDURES.

15 (a) SINGLE APPLICATION FORM.—Section 498(b) (20

16 U.S.C. 1099c(b)) is amended—

17 (1) in paragraph (1), by striking ‘‘and capabil18 ity’’ and inserting ‘‘financial responsibility, and ad19 ministrative capability’’;

20 (2) by amending paragraph (3) to read as fol21 lows:

22 ‘‘(3) requires—

23 ‘‘(A) a description of the third party

24 servicers of an institution of higher education;

25 and
344

HR 6 EAS

1 ‘‘(B) the institution to maintain a copy of

2 any contract with a financial aid service pro3 vider or loan servicer, and provide a copy of any

4 such contract to the Secretary upon request;’’;

5 (3) in paragraph (4), by striking the period and

6 inserting ‘‘; and’’; and

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

8 ‘‘(5) provides, at the option of the institution, for

9 participation in 1 or more of the programs under

10 part B or D.’’.

11 (b) FINANCIAL RESPONSIBILITY STANDARDS.—Section

12 498(c) (20 U.S.C. 1099c(c)) is amended—

13 (1) in paragraph (2), by striking ‘‘with respect

14 to operating losses, net worth, asset to liabilities ra15 tios, or operating fund deficits’’ and inserting ‘‘re16 garding ratios that demonstrate financial responsibil17 ity,’’;

18 (2) in paragraph (3)(A), by striking ‘‘Secretary

19 third party’’ and all that follows through ‘‘payable to

20 the Secretary’’ and inserting ‘‘Secretary any third

21 party guarantees, which the Secretary determines are

22 reasonable, that’’; and

23 (3) in paragraph (4)—
345

HR 6 EAS

1 (A) in the matter preceding subparagraph

2 (A), by striking ‘‘ratio of current assets to cur3 rent liabilities’’ and inserting ‘‘criteria’’; and

4 (B) in subparagraph (C), by striking ‘‘cur5 rent operating ratio requirement’’ and inserting

6 ‘‘criteria’’.

7 (c) FINANCIAL GUARANTEES FROM OWNERS.—Section

8 498(e) (20 U.S.C. 1099c(e)) is amended—

9 (1) in the subsection heading, by inserting ‘‘OF

10 FOR-PROFIT INSTITUTIONS’’ after ‘‘OWNERS’’;

11 (2) in paragraph (1)(A), by striking ‘‘from an’’

12 and inserting ‘‘from a for-profit’’;

13 (3) in paragraph (2)—

14 (A) in the matter preceding clause (i) of

15 subparagraph (A), by inserting ‘‘for-profit’’ after

16 ‘‘or more’’;

17 (B) in subparagraph (B), by inserting ‘‘for18 profit’’ after ‘‘or more’’;

19 (4) in paragraph (3), by striking ‘‘operation of,

20 an institution or’’ and inserting ‘‘operation of, a for21 profit institution or the’’; and

22 (5) by adding at the end the following:

23 ‘‘(6) Notwithstanding any other provision of law,

24 any individual, whom the Secretary determines, in

25 accordance with paragraph (2), exercises substantial
346

HR 6 EAS

1 control over an institution participating in, or seek2 ing to participate in, a program under this title, re3 quired to pay, on behalf of a student or borrower, a

4 refund of unearned institutional charges to a lender,

5 or to the Secretary, who willfully fails to pay such re6 fund or willfully attempts in any manner to evade

7 payment of such refund, shall, in addition to other

8 penalties provided by law, be liable to the Secretary

9 for the amount of the refund not paid, to the same ex10 tent with respect to such refund that such an individ11 ual would be liable as a responsible person for a pen12 alty under section 6672(a) of Internal Revenue Code

13 of 1986 with respect to the nonpayment of taxes.’’.

14 (d) APPLICATIONS AND SITE VISITS.—Section 498(f)

15 (20 U.S.C. 1099c(f)) is amended—

16 (1) in the subsection heading by striking ‘‘; SITE

17 VISITS AND FEES’’ and inserting ‘‘AND SITE VISITS’’;

18 (2) in the second sentence, by striking ‘‘shall’’

19 and inserting ‘‘may’’;

20 (3) in the third sentence, strike ‘‘may’’ and in21 sert ‘‘shall’’; and

22 (4) by striking the fourth sentence.

23 (e) TIME LIMITATIONS ON, AND RENEWAL OF, ELIGI24 BILITY.—Subsection (g) of section 498 (20 U.S.C. 1099c)

25 is amended to read as follows:
347

HR 6 EAS

1 ‘‘(g) TIME LIMITATIONS ON, AND RENEWAL OF, ELIGI2 BILITY.—

3 ‘‘(1) GENERAL RULE.—After the expiration of

4 the certification of any institution under the schedule

5 prescribed under this section (as in effect prior to the

6 enactment of the Higher Education Act Amendments

7 of 1998), or upon request for initial certification from

8 an institution not previously certified, the Secretary

9 may certify the eligibility for the purposes of any pro10 gram authorized under this title of each such institu11 tion for a period not to exceed 6 years.

12 ‘‘(2) NOTIFICATION.—The Secretary shall notify

13 each institution of higher education not later than 6

14 months prior to the date of the expiration of the insti15 tution’s certification.

16 ‘‘(3) INSTITUTIONS OUTSIDE THE UNITED

17 STATES.—The Secretary shall promulgate regulations

18 regarding the recertification requirements applicable

19 to an institution of higher education outside of the

20 United States that meets the requirements of section

21 481(a)(1)(C) and received less than $500,000 in funds

22 under part B for the most recent year for which data

23 are available.’’.

24 (f) PROVISIONAL CERTIFICATION.—Section 498(h) (20

25 U.S.C. 1099c(h)) is amended—
348

HR 6 EAS

1 (1) in paragraph (1)(B)(ii), by striking ‘‘an eli2 gible’’ and inserting ‘‘a for-profit eligible’’; and

3 (2) in paragraph (2), by striking ‘‘the approval’’

4 and inserting ‘‘the recognition’’.

5 (g) TREATMENT OF CHANGES OF OWNERSHIP.—Sec6 tion 498(i) (20 U.S.C. 1099c(i)) is amended—

7 (1) in the subsection heading, by inserting ‘‘OF

8 FOR-PROFIT INSTITUTIONS’’ after ‘‘OWNERSHIP’’; and

9 (2) in paragraph (2)—

10 (A) in subparagraph (A), by inserting ‘‘for11 profit’’ before ‘‘institution’’;

12 (B) in subparagraph (C), by striking ‘‘two’’

13 and inserting ‘‘a for-profit institution with one’’;

14 (C) in subparagraph (D), by inserting ‘‘for15 profit’’ before ‘‘institutions’’;

16 (D) in subparagraph (E), by inserting ‘‘for17 profit’’ before ‘‘institutions’’; and

18 (E) in subparagraph (F), by inserting ‘‘for19 profit’’ before ‘‘institution’’.

20 (h) TREATMENT OF BRANCHES.—The second sentence

21 of section 498(j)(1) (20 U.S.C. 1099c(j)(1)) is amended by

22 inserting ‘‘after the branch is certified by the Secretary as

23 a branch campus participating in a program under title

24 IV,’’ after ‘‘2 years’’.
349

HR 6 EAS

1 SEC. 494. PROGRAM REVIEW AND DATA.

2 Section 498A (20 U.S.C. 1099c–1) is amended—

3 (1) in subsection (a)—

4 (A) in paragraph (2)—

5 (i) in the matter preceding subpara6 graph (A), by striking ‘‘may’’ and inserting

7 ‘‘shall’’;

8 (ii) by amending subparagraph (C) to

9 read as follows:

10 ‘‘(C) institutions with a significant fluctua11 tion in Federal Stafford Loan volume, Federal

12 Direct Stafford/Ford Loan volume, or Federal

13 Pell Grant award volume, or any combination

14 thereof, in the year for which the determination

15 is made, compared to the year prior to such

16 year, that are not accounted for by changes in

17 the Federal Stafford Loan program, the Federal

18 Direct Stafford/Ford Loan program, or the Pell

19 Grant program, or any combination thereof;’’;

20 (iii) by amending subparagraph (D) to

21 read as follows:

22 ‘‘(D) institutions reported to have defi23 ciencies or financial aid problems by the State

24 licensing or authorizing agency, or by the appro25 priate accrediting agency or association;’’;
350

HR 6 EAS

1 (iv) in subparagraph (E), by inserting

2 ‘‘and’’ after the semicolon; and

3 (v) by striking subparagraphs (F) and

4 (G), and inserting the following:

5 ‘‘(F) such other institutions that the Sec6 retary determines may pose a significant risk of

7 failure to comply with the administrative capa8 bility or financial responsibility provisions of

9 this title; and’’; and

10 (B) in paragraph (3)(A), by inserting ‘‘rel11 evant’’ after ‘‘all’’; and

12 (2) by amending subsection (b) to read as fol13 lows:

14 ‘‘(b) SPECIAL ADMINISTRATIVE RULES.—

15 ‘‘(1) IN GENERAL.—In carrying out paragraphs

16 (1) and (2) of subsection (a) and any other relevant

17 provisions of this title, the Secretary shall—

18 ‘‘(A) establish guidelines designed to ensure

19 uniformity of practice in the conduct of program

20 reviews of institutions of higher education;

21 ‘‘(B) make available to each institution par22 ticipating in programs authorized under this

23 title complete copies of all review guidelines and

24 procedures used in program reviews;
351

HR 6 EAS

1 ‘‘(C) permit the institution to correct or

2 cure an administrative, accounting, or record3 keeping error if the error is not part of a pattern

4 of error and there is no evidence of fraud or mis5 conduct related to the error;

6 ‘‘(D) base any civil penalty assessed against

7 an institution of higher education resulting from

8 a program review or audit on the gravity of the

9 violation, failure, or misrepresentation; and

10 ‘‘(E) inform the appropriate State and ac11 crediting agency or association whenever the Sec12 retary takes action against an institution of

13 higher education under this section, section 498,

14 or section 432.

15 ‘‘(2) UNIFORMITY OF APPLICATION OF REGULA16 TIONS.—The Secretary shall review the regulations of

17 the Department and the application of such regula18 tions to ensure the uniformity of interpretation and

19 application of the regulations.

20 ‘‘(3) NONDUPLICATION AND COORDINATION.—The

21 Secretary shall establish a process for ensuring that

22 eligibility and compliance issues, such as institu23 tional audit, program review, and recertification, are

24 considered simultaneously, and shall establish a proc25 ess for identifying unnecessary duplication of report-
352

HR 6 EAS

1 ing and related regulatory requirements. In develop2 ing such processes, the Secretary shall consult with

3 relevant representatives of institutions participating

4 in the programs authorized by this title.’’.

5 PART I—ADMINISTRATIVE PROVISIONS FOR

6 DELIVERY OF STUDENT FINANCIAL ASSISTANCE

7 SEC. 495. PERFORMANCE-BASED ORGANIZATION FOR THE

8 DELIVERY OF FEDERAL STUDENT FINANCIAL

9 ASSISTANCE.

10 Title IV (20 U.S.C. 1070 et seq.) is amended by adding

11 at the end the following:

12 ‘‘PART I—ADMINISTRATIVE PROVISIONS FOR

13 DELIVERY OF STUDENT FINANCIAL ASSISTANCE

14 ‘‘SEC. 499. PERFORMANCE-BASED ORGANIZATION FOR THE

15 DELIVERY OF FEDERAL STUDENT FINANCIAL

16 ASSISTANCE.

17 ‘‘(a) ESTABLISHMENT.—The Secretary shall establish

18 in the Department a performance-based organization (here19 after in this part referred to as the ‘PBO’) to administer

20 various functions relating to student financial assistance

21 programs authorized under this title.

22 ‘‘(b) OVERSIGHT AND AUTHORITY.—

23 ‘‘(1) POLICY OVERSIGHT AND DIRECTION.—The

24 Secretary shall maintain responsibility for the policy

25 relating to functions managed by the PBO, and the
353

HR 6 EAS

1 PBO shall remain subject to the Secretary’s oversight

2 and direction.

3 ‘‘(2) AUDITS AND REVIEW.—The PBO shall be

4 subject to the usual and customary Federal audit pro5 cedures and to review by the Inspector General of the

6 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 on

11 the ability of the PBO to achieve the goals and

12 objectives established in the performance plan de13 scribed in subsection (e).

14 ‘‘(B) REVISIONS TO AGREEMENT.—The Sec15 retary and the Chief Operating Officer may re16 vise the annual performance agreement described

17 in subsection (f)(2) in light of policy, market, or

18 other changes that occur after the Secretary and

19 the Chief Operating Officer 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
354

HR 6 EAS

1 those programs more understandable to students and

2 their parents;

3 ‘‘(2) to reduce the costs of administering those

4 programs;

5 ‘‘(3) to increase the accountability of the officials

6 responsible for administering those programs;

7 ‘‘(4) to provide greater flexibility in the adminis8 tration 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 financial

13 assistance system that contains complete, accurate,

14 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 adminis18 tration of the information and financial systems that

19 support student financial assistance programs author20 ized under this title, including—

21 ‘‘(A) collecting, processing, and transmit22 ting applicant data to students, institutions, and

23 authorized third parties, as provided for in sec24 tion 483;
355

HR 6 EAS

1 ‘‘(B) contracting for the information and fi2 nancial systems supporting student financial as3 sistance 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 as

12 the Secretary determines necessary or appropriate to

13 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 years

20 that establishes measurable goals and objectives

21 for the organization.

22 ‘‘(B) CONSULTATION.—In developing the 5-

23 year performance plan and any revision to the

24 plan, the Secretary and the Chief Operating Of25 ficer shall consult with students, institutions of
356

HR 6 EAS

1 higher education, Congress, lenders, and other

2 interested parties not less than 30 days prior to

3 the implementation of the performance plan or

4 revision.

5 ‘‘(C) AREAS.—The plan shall address the

6 PBO’s responsibilities in the following areas:

7 ‘‘(i) IMPROVING SERVICE.—Improving

8 service to students and other participants in

9 student financial aid programs authorized

10 under this title, including making those

11 programs more understandable to students

12 and their parents.

13 ‘‘(ii) REDUCING COSTS.—Reducing the

14 costs of administering those programs.

15 ‘‘(iii) IMPROVEMENT AND INTEGRATION

16 OF SUPPORT SYSTEMS.—Improving and in17 tegrating the information and delivery sys18 tems that support those programs.

19 ‘‘(iv) DELIVERY AND INFORMATION

20 SYSTEM.—Developing an open, common,

21 and integrated delivery and information

22 system for programs authorized under this

23 title.

24 ‘‘(v) OTHER AREAS.—Any other areas

25 identified by the Secretary.
357

HR 6 EAS

1 ‘‘(2) ANNUAL REPORT.—(A) IN GENERAL.—Each

2 year, the Chief Operating Officer shall prepare and

3 submit to Congress, through the Secretary, an annual

4 report on the performance of the PBO, including an

5 evaluation of the extent to which the PBO met the

6 goals and objectives contained in the 5-year perform7 ance plan described in paragraph (1) for the preced8 ing year.

9 ‘‘(B) CONSULTATION WITH STAKEHOLDERS.—

10 The Chief Operating Officer, in preparing the report

11 described in subparagraph (A), shall establish appro12 priate means to consult with borrowers, institutions,

13 lenders, guaranty agencies, secondary markets, and

14 others involved in the delivery system of student aid

15 under this title—

16 ‘‘(i) regarding the degree of satisfaction

17 with the delivery system; and

18 ‘‘(ii) to seek suggestions on means to im19 prove the delivery system.

20 ‘‘(f) CHIEF OPERATING OFFICER.—

21 ‘‘(1) APPOINTMENT.—

22 ‘‘(A) IN GENERAL.—The management of the

23 PBO shall be vested in a Chief Operating Officer

24 who shall be appointed by the Secretary to a

25 term of not less than 3 and not more than 5
358

HR 6 EAS

1 years and compensated without regard to chap2 ters 33, 51, and 53 of title 5, United States Code.

3 ‘‘(B) BASIS.—The appointment shall be

4 made on the basis of demonstrated ability in

5 management and experience in information tech6 nology or financial services.

7 ‘‘(C) REAPPOINTMENT.—The Secretary may

8 reappoint the Chief Operating Officer to subse9 quent terms of not less than 3 and not more than

10 5 years, so long as the performance of the Chief

11 Operating Officer, as set forth in the perform12 ance agreement described in paragraph (2), is

13 satisfactory.

14 ‘‘(2) PERFORMANCE AGREEMENT.—

15 ‘‘(A) IN GENERAL.—Each year, the Sec16 retary and the Chief Operating Officer shall

17 enter into an annual performance agreement,

18 that shall set forth measurable organization and

19 individual goals for the Chief Operating Officer.

20 ‘‘(B) TRANSMITTAL.—The final agreement,

21 and any revision to the final agreement, shall be

22 transmitted to the Committee on Education and

23 the Workforce of the House of Representatives

24 and the Committee on Labor and Human Re-
359

HR 6 EAS

1 sources of the Senate, and made publicly avail2 able.

3 ‘‘(3) COMPENSATION.—

4 ‘‘(A) IN GENERAL.—The Chief Operating

5 Officer is authorized to be paid at an annual

6 rate of basic pay not to exceed the maximum

7 rate of basic pay for the Senior Executive Serv8 ice under section 5382 of title 5, United States

9 Code, including any applicable locality-based

10 comparability payment that may be authorized

11 under section 5304(h)(2)(C) of such title.

12 ‘‘(B) BONUS.—In addition, the Chief Oper13 ating Officer may receive a bonus in an amount

14 that does not exceed 50 percent of such annual

15 rate of basic pay, based upon the Secretary’s

16 evaluation of the Chief Operating Officer’s per17 formance in relation to the goals set forth in the

18 performance agreement described in paragraph

19 (2).

20 ‘‘(C) PAYMENT.—Payment of a bonus under

21 this subparagraph (B) may be made to the Chief

22 Operating Officer only to the extent that such

23 payment does not cause the Chief Operating Of24 ficer’s total aggregate compensation in a cal25 endar year to equal or exceed the amount of the
360

HR 6 EAS

1 President’s salary under section 102 of title 3,

2 United States Code.

3 ‘‘(4) REMOVAL.—The Chief Operating Officer

4 shall be removable—

5 ‘‘(A) by the President; or

6 ‘‘(B) by the Secretary for misconduct or

7 failure to meet the goals set forth in the perform8 ance agreement described in paragraph (2).

9 ‘‘(g) SENIOR MANAGEMENT.—

10 ‘‘(1) APPOINTMENT.—

11 ‘‘(A) IN GENERAL.—The Chief Operating

12 Officer may appoint such senior managers as

13 that officer determines necessary without regard

14 to the provisions of title 5, United States Code,

15 governing appointments in the competitive serv16 ice.

17 ‘‘(B) COMPENSATION.—The senior managers

18 described in subparagraph (A) may be paid

19 without regard to the provisions of chapter 51

20 and subchapter III of chapter 53 of such title re21 lating to classification and General Schedule pay

22 rates.

23 ‘‘(2) PERFORMANCE AGREEMENT.—Each year,

24 the Chief Operating Officer and each senior manager

25 appointed under this subsection shall enter into an
361

HR 6 EAS

1 annual performance agreement that sets forth measur2 able organization and individual goals.

3 ‘‘(3) COMPENSATION.—

4 ‘‘(A) IN GENERAL.—A senior manager ap5 pointed under this subsection may be paid at an

6 annual rate of basic pay of not more than the

7 maximum rate of basic pay for the Senior Exec8 utive Service under section 5382 of title 5,

9 United States Code, including any applicable lo10 cality-based comparability payment that may be

11 authorized under section 5304(h)(2)(C) of such

12 title 5.

13 ‘‘(B) BONUS.—In addition, a senior man14 ager may receive a bonus in an amount such

15 that the manager’s total annual compensation

16 does not exceed 125 percent of the maximum rate

17 of basic pay for the Senior Executive Service, in18 cluding any applicable locality-based com19 parability payment, based upon the Chief Oper20 ating Officer’s evaluation of the manager’s per21 formance in relation to the goals set forth in the

22 performance agreement described in paragraph

23 (2).
362

HR 6 EAS

1 ‘‘(4) REMOVAL.—A senior manager shall be re2 movable by the Secretary or by the Chief Operating

3 Officer.

4 ‘‘(h) REPORT.—The Secretary and the Chief Operating

5 Officer, not later than 180 days after the date of enactment

6 of the Higher Education Amendments of 1998, shall report

7 to Congress on the proposed budget and sources of funding

8 for the operation of the PBO.

9 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—The Sec10 retary shall allocate from funds made available under sec11 tion 458 such funds as are appropriate to the functions as12 sumed by the PBO. In addition, there are authorized to be

13 appropriated such sums as may be necessary to carry out

14 the purposes of this part, including transition costs.

15 ‘‘SEC. 499A. PERSONNEL FLEXIBILITIES.

16 ‘‘(a) GENERAL PROVISIONS.—

17 ‘‘(1) CERTAIN LIMITATIONS NOT APPLICABLE.—

18 The PBO shall not be subject to any limitation relat19 ed to the number or grade of its employees.

20 ‘‘(2) APPLICABLE PROVISIONS OF TITLE 5.—

21 ‘‘(A) PROVISIONS.—Any flexibilities pro22 vided under this section shall be exercised in a

23 manner consistent with the following provisions

24 of title 5, United States Code:
363

HR 6 EAS

1 ‘‘(i) Chapter 23, relating to merit sys2 tem principles and prohibited personnel

3 practices.

4 ‘‘(ii) Provisions relating to preference

5 eligibles.

6 ‘‘(iii) Section 5307, relating to the ag7 gregate limitation on pay.

8 ‘‘(iv) Chapter 71, relating to labor9 management relations, except to the extent

10 provided by paragraph (3).

11 ‘‘(B) EXERCISE OF AUTHORITY.—The exer12 cise of any authorities provided under this sec13 tion shall be subject to subsections (b) and (c) of

14 section 1104 of title 5, United States Code, as

15 though such authorities were delegated to the

16 PBO under subsection (a)(2) of such section. The

17 PBO shall provide the Office of Personnel Man18 agement with any information the Office re19 quires in carrying out its responsibilities under

20 this subsection.

21 ‘‘(3) LABOR ORGANIZATION AGREEMENTS.—Em22 ployees within a unit to which a labor organization

23 is accorded exclusive recognition under chapter 71 of

24 title 5, United States Code, shall not be subject to any

25 flexibility provided under this section unless the ex-
364

HR 6 EAS

1 clusive representative and PBO have entered into a

2 written agreement which specifically provides for the

3 exercise of that flexibility. A written agreement may

4 not be imposed by the Federal Services Impasses

5 Panel under section 7119 of title 5, United States

6 Code.

7 ‘‘(4) FLEXIBILITIES.—

8 ‘‘(A) PRIOR APPROVAL.—The PBO may ex9 ercise any of the flexibilities provided under sub10 sections (b), (c)(1), and (d) without prior ap11 proval of the Office of Personnel Management.

12 ‘‘(B) PLAN AND APPROVAL.—The PBO may

13 exercise the flexibilities described in subsection

14 (c)(2) only after a specific plan for implementa15 tion of those flexibilities is submitted to and ap16 proved by the Director of the Office of Personnel

17 Management.

18 ‘‘(5) DEMONSTRATION PROJECTS.—

19 ‘‘(A) IN GENERAL.—The exercise of any

20 flexibilities under this section shall not affect the

21 authority of the PBO to implement a demonstra22 tion project subject to chapter 47 of title 5,

23 United States Code, and as provided in subpara24 graph (B).
365

HR 6 EAS

1 ‘‘(B) APPLICATION OF TITLE 5.—In apply2 ing section 4703 of title 5, United States Code,

3 to a project described in subparagraph (A)—

4 ‘‘(i) section 4703(b)(1) shall be deemed

5 to read as follows:

6 ‘‘ ‘(1) develop a plan for such project which de7 scribes its purpose, the employees to be covered, the

8 project itself, its anticipated outcomes, and the meth9 od of evaluating the project;’;

10 ‘‘(ii) section 4703(b)(3) shall not

11 apply;

12 ‘‘(iii) the 180-day notification period

13 in section 4703(b)(4) shall be deemed to be

14 a 30-day notification period;

15 ‘‘(iv) section 4703(b)(6) shall be

16 deemed to read as follows:

17 ‘‘ ‘(6) provide each House of Congress with the

18 final version of the plan.’;

19 ‘‘(v) section 4703(c)(1) shall be deemed

20 to read as follows:

21 ‘‘ ‘(1) subchapter V of chapter 63 or subpart G

22 of part III of this title;’;

23 ‘‘(vi) section 4703(d) shall not apply;

24 and
366

HR 6 EAS

1 ‘‘(vii) section 4703(f) shall not apply,

2 and, in lieu thereof, paragraph (3) of this

3 subsection shall apply as though the dem4 onstration project were a flexibility author5 ity provided under this subsection.

6 ‘‘(b) PERFORMANCE MANAGEMENT.—

7 ‘‘(1) IN GENERAL.—The PBO shall establish a

8 performance management system that—

9 ‘‘(A) maintains individual accountability

10 by—

11 ‘‘(i) establishing 1 or more retention

12 standards for each employee related to the

13 work of the employee and expressed in terms

14 of individual performance, and commu15 nicating such retention standards to em16 ployees;

17 ‘‘(ii) making periodic determinations

18 of whether each employee meets or does not

19 meet the employee’s established retention

20 standards; and

21 ‘‘(iii) taking actions, in accordance

22 with applicable laws and regulations, with

23 respect to any employee whose performance

24 does not meet established retention stand25 ards, including denying any increase in
367

HR 6 EAS

1 basic pay, promotions, and credit for per2 formance under section 3502 of title 5,

3 United States Code, and taking 1 or more

4 of the following actions:

5 ‘‘(I) Reassignment;

6 ‘‘(II) An action under chapter 43

7 or 75 of title 5, United States Code; or

8 ‘‘(III) Any other appropriate ac9 tion to resolve the performance prob10 lem; and

11 ‘‘(B) strengthens its effectiveness by provid12 ing for—

13 ‘‘(i) establishing goals or objectives for

14 individual, group, or organizational per15 formance (or any combination thereof), con16 sistent with the annual performance agree17 ment described in section 499(f)(2) and

18 PBO performance planning procedures, in19 cluding those established under the Govern20 ment Performance and Results Act of 1993,

21 and communicating such goals or objectives

22 to employees;

23 ‘‘(ii) using such goals and objectives to

24 make performance distinctions among em25 ployees or groups of employees; and
368

HR 6 EAS

1 ‘‘(iii) using performance assessments

2 as a basis for granting employee awards,

3 adjusting an employee’s rate of basic pay,

4 and other appropriate personnel actions, in

5 accordance with applicable provisions or

6 law and regulation.

7 ‘‘(2) PERFORMANCE.—

8 ‘‘(A) ASSESSMENT.—For purposes of para9 graph (1)(B), the term ‘performance assessment’

10 means a determination of whether or not reten11 tion standards established under paragraph

12 (1)(A)(i) are met, and any additional perform13 ance determination made on the basis of per14 formance goals and objectives established under

15 paragraph (1)(B)(i).

16 ‘‘(B) UNACCEPTABLE PERFORMANCE.—For

17 purposes of title 5, United States Code, the term

18 ‘unacceptable performance’ with respect to an

19 employee of the PBO means performance of the

20 employee which fails to meet a retention stand21 ard established under paragraph (1)(A)(i).

22 ‘‘(3) AWARDS PROGRAM.—

23 ‘‘(A) IN GENERAL.—The PBO may establish

24 an awards program designed to provide incen25 tives for and recognition of organizational,
369

HR 6 EAS

1 group, and individual achievements by provid2 ing for granting awards to employees who, as in3 dividuals or members of a group, contribute to

4 meeting the performance goals and objectives es5 tablished under this part by such means as a su6 perior individual or group accomplishment, a

7 documented productivity gain, or sustained su8 perior performance.

9 ‘‘(B) LIMITATION.—Notwithstanding section

10 4502(b) of title 5, United States Code, the PBO

11 may grant a cash award in an amount not ex12 ceeding $25,000, with the approval of the Chief

13 Operating Officer.

14 ‘‘(c) CLASSIFICATION AND PAY FLEXIBILITIES.—

15 ‘‘(1) IN GENERAL.—

16 ‘‘(A) DEFINITION.—For purposes of this sec17 tion, the term ‘broad-banded system’ means a

18 system for grouping positions for pay, job eval19 uation, and other purposes that is different from

20 the system established under chapter 51 and sub21 chapter III of chapter 53 of title 5, United States

22 Code, as a result of combining grades and relat23 ed ranges of rates of pay in 1 or more occupa24 tional series.
370

HR 6 EAS

1 ‘‘(B) ESTABLISHMENT.—The PBO may,

2 subject to criteria to be prescribed by the Office

3 of Personnel Management, establish 1 or more

4 broad-banded systems covering all or any por5 tion of its workforce. The Office may require the

6 PBO to submit to the Office such information re7 lating to its broad-banded systems as the Office

8 may require. Laws and regulations pertaining to

9 General Schedule employees (other than chapter

10 52 and subchapter II of chapter 53 of title 5,

11 United States Code) shall continue to be applica12 ble to employees under a broad-banded system.

13 ‘‘(C) CRITERIA.—The criteria to be pre14 scribed by the Office of Personnel Management

15 shall, at a minimum—

16 ‘‘(i) ensure that the structure of any

17 broad-banded system maintains, through

18 linkage to the General Schedule, the prin19 ciple of equal pay for substantially equal

20 work;

21 ‘‘(ii) establish the minimum and maxi22 mum number of grades that may be com23 bined into pay bands;
371

HR 6 EAS

1 ‘‘(iii) establish requirements for adjust2 ing the pay of an employee within a pay

3 band;

4 ‘‘(iv) establish requirements for setting

5 the pay of a supervisory employee whose po6 sition is in a pay band or who supervises

7 employees whose positions are in pay bands;

8 and

9 ‘‘(v) establish requirements and meth10 odologies for setting the pay of an employee

11 upon conversion to a broad-banded system,

12 initial appointment, change of position or

13 type of appointment (including promotion,

14 demotion, transfer, reassignment, reinstate15 ment, placement in another pay band, or

16 movement to a different geographic loca17 tion), and movement between a broad-band18 ed system and another pay system.

19 ‘‘(2) ALTERNATIVE JOB EVALUATION SYSTEMS

20 FLEXIBILITIES.—

21 ‘‘(A) IN GENERAL.—With the approval of

22 the Office of Personnel Management in accord23 ance with subsection (a)(4)(B), the PBO may es24 tablish 1 or more alternative job evaluation sys25 tems that include any positions or groups of po-
372

HR 6 EAS

1 sitions that the PBO determines, for reasons of

2 effective administration—

3 ‘‘(i) should not be classified under

4 chapter 51 of title 5, United States Code, or

5 paid under the General Schedule;

6 ‘‘(ii) should not be classified or paid

7 under subchapter IV of chapter 53 of such

8 title; or

9 ‘‘(iii) should not be paid under section

10 5376 of such title.

11 ‘‘(B) PAY.—

12 ‘‘(i) GENERAL LIMITATION.—An alter13 native job evaluation system established

14 under this section that includes positions

15 described in clause (i) or (ii), or both, of

16 subparagraph (A) may not provide a rate of

17 basic pay for any employee in excess of the

18 maximum rate of pay under the General

19 Schedule.

20 ‘‘(ii) SPECIFIC LIMITATION.—An alter21 native job evaluation system established

22 under this section that includes positions

23 described in clause (iii) of subparagraph

24 (A) may not provide a rate of basic pay for

25 any employee in excess of the annual rate
373

HR 6 EAS

1 of basic pay of the Chief Operating Officer

2 under the first sentence of section 499(f)(3).

3 ‘‘(C) IMPLEMENTATION.—An alternative job

4 evaluation system established under this section

5 shall be implemented in such a way as to ensure

6 the maintenance of the principle of equal pay for

7 substantially equal work.

8 ‘‘(D) APPLICABILITY OF LAWS.—Except as

9 otherwise provided under this part, employees

10 under an alternative job evaluation system shall

11 continue to be subject to the laws and regulations

12 covering employees under the pay system that

13 would otherwise apply to them. If the alternative

14 job evaluation system combines employees from

15 different pay systems into a single system, the

16 plan submitted under subsection (a)(4)(B) shall

17 address the applicability of the laws and regula18 tions for the different pay systems.

19 ‘‘(d) STAFFING FLEXIBILITIES.—

20 ‘‘(1) APPOINTMENT.—

21 ‘‘(A) CONDITIONS.—Except as otherwise

22 provided under this subsection, an employee of

23 the PBO may be selected for a permanent ap24 pointment in the competitive service in the PBO
374

HR 6 EAS

1 through internal competitive promotion proce2 dures if—

3 ‘‘(i) the employee has completed, in the

4 competitive service, 2 years of current con5 tinuous service under a term appointment

6 or any combination of term appointments;

7 ‘‘(ii) such term appointment or ap8 pointments were made under competitive

9 procedures prescribed for permanent ap10 pointments;

11 ‘‘(iii) the employee’s performance

12 under such term appointment or appoint13 ments met established retention standards;

14 and

15 ‘‘(iv) the vacancy announcement for

16 the term appointment from which the con17 version is made stated that there was a po18 tential for subsequent conversion to a per19 manent appointment.

20 ‘‘(B) SIMILAR APPOINTMENT.—An appoint21 ment under this section may be made only to a

22 position in the same line of work as a position

23 to which the employee received a term appoint24 ment under competitive procedures.

25 ‘‘(2) CATEGORY RATING SYSTEMS.—
375

HR 6 EAS

1 ‘‘(A) IN GENERAL.—Notwithstanding sub2 chapter I of chapter 33 of title 5, United States

3 Code, the PBO may establish category rating

4 systems for evaluating job applicants for posi5 tions in the competitive service. Qualified can6 didates under such rating systems shall be di7 vided into 2 or more quality categories on the

8 basis of relative degrees of merit, rather than as9 signed individual numerical ratings. Each ap10 plicant who meets the minimum qualification re11 quirements for the position to be filled shall be

12 assigned to an appropriate category based on an

13 evaluation of the applicant’s knowledge, skills,

14 and abilities relative to those needed for success15 ful performance in the position to be filled.

16 ‘‘(B) PREFERENCE ELIGIBLES.—Within

17 each quality category established under subpara18 graph (A), preference eligibles shall be listed

19 ahead of individuals who are not preference eli20 gibles. For other than scientific and professional

21 positions at or higher than level GS–9 (or equiv22 alent), preference eligibles who have a compen23 sable service-connected disability of 10 percent or

24 more, and who meet the minimum qualification
376

HR 6 EAS

1 standards, shall be listed in the highest quality

2 category.

3 ‘‘(C) SELECTION.—An appointing authority

4 may select any applicant from the highest qual5 ity category or, if fewer than 3 candidates have

6 been assigned to the highest quality category,

7 from a merged category consisting of the highest

8 and second highest quality categories. Notwith9 standing the preceding sentence, the appointing

10 authority may not pass over a preference eligible

11 in the same or higher category from which selec12 tion is made, unless the requirements of section

13 3317(b) or 3318(b) of title 5, United States Code,

14 as applicable, are satisfied.

15 ‘‘(3) EXCEPTED SERVICE.—The Chief Operating

16 Officer may appoint, without regard to the provisions

17 of title 5, United States Code, governing appoint18 ments in the competitive service, not more than 25

19 technical and professional employees to administer

20 the functions of the PBO. These employees may be

21 paid without regard to the provisions of chapter 51

22 and subchapter III of chapter 53 of such title relating

23 to classification and General Schedule pay rates.
377

HR 6 EAS

1 ‘‘(4) RULE OF CONSTRUCTION.—Notwithstanding

2 paragraphs (1) through (3), no provision of this sub3 section exempts the PBO from—

4 ‘‘(A) any employment priorities established

5 under direction of the President for the place6 ment of surplus or displaced employees; or

7 ‘‘(B) its obligations under any court order

8 or decree relating to the employment practices of

9 the PBO or the Department of Education.

10 ‘‘SEC. 499B. PROCUREMENT FLEXIBILITY.

11 ‘‘(a) PROCUREMENT AUTHORITY.—Subject to the au12 thority, direction, and control of the Secretary, the Chief

13 Operating Officer of a PBO may exercise the authority of

14 the Secretary to procure property and services in the per15 formance of functions managed by the PBO. For the pur16 poses of this section, the term ‘PBO’ includes the Chief Op17 erating Officer of the PBO and any employee of the PBO

18 exercising procurement authority under the preceding sen19 tence.

20 ‘‘(b) APPLICABILITY OF PROCUREMENT LAWS.—Ex21 cept to the extent otherwise authorized in this section, a

22 PBO shall comply with all laws and regulations that are

23 generally applicable to procurements of property and serv24 ices by the head of an executive agency of the Federal Gov25 ernment.
378

HR 6 EAS

1 ‘‘(c) USE OF MUTUAL BENEFIT CORPORATION.—The

2 PBO may acquire services related to the title IV delivery

3 system from any mutual benefit corporation that has the

4 capability and capacity to meet the requirements for the

5 system, as determined by the Chief Operating Officer of the

6 PBO.

7 ‘‘(d) TWO-PHASE SOURCE-SELECTION PROCE8 DURES.—

9 ‘‘(1) IN GENERAL.—The PBO may use a two10 phase process for selecting a source for a procurement

11 of property or services.

12 ‘‘(2) FIRST PHASE.—The procedures for the first

13 phase of the process for a procurement are as follows:

14 ‘‘(A) PUBLICATION OF NOTICE.—The con15 tracting officer for the procurement shall publish

16 a notice of the procurement in accordance with

17 section 18 of the Office of Federal Procurement

18 Policy Act (41 U.S.C. 416) and subsections (e),

19 (f), and (g) of section 8 of the Small Business

20 Act (15 U.S.C. 637), except that the notice shall

21 include only the following:

22 ‘‘(i) A general description of the scope

23 or purpose of the procurement that provides

24 sufficient information on the scope or pur25 pose for sources to make informed business
379

HR 6 EAS

1 decisions regarding whether to participate

2 in the procurement.

3 ‘‘(ii) A description of the basis on

4 which potential sources are to be selected to

5 submit offers in the second phase.

6 ‘‘(iii) A description of the information

7 that is to be required under subparagraph

8 (B).

9 ‘‘(iv) Any additional information that

10 the contracting officer determines appro11 priate.

12 ‘‘(B) INFORMATION SUBMITTED BY

13 OFFERORS.—Each offeror for the procurement

14 shall submit basic information, such as informa15 tion on the offeror’s qualifications, the proposed

16 conceptual approach, costs likely to be associated

17 with the proposed conceptual approach, and past

18 performance of the offeror on Federal Govern19 ment contracts, together with any additional in20 formation that is requested by the contracting of21 ficer.

22 ‘‘(C) SELECTION FOR SECOND PHASE.—The

23 contracting officer shall select the offerors that

24 are to be eligible to participate in the second

25 phase of the process. The contracting officer shall
380

HR 6 EAS

1 limit the number of the selected offerors to the

2 number of sources that the contracting officer de3 termines is appropriate and in the best interests

4 of the Federal Government.

5 ‘‘(3) SECOND PHASE.—

6 ‘‘(A) IN GENERAL.—The contracting officer

7 shall conduct the second phase of the source selec8 tion process in accordance with sections 303A

9 and 303B of the Federal Property and Adminis10 trative Services Act of 1949 (41 U.S.C. 253a and

11 253b).

12 ‘‘(B) ELIGIBLE PARTICIPANTS.—Only the

13 sources selected in the first phase of the process

14 shall be eligible to participate in the second

15 phase.

16 ‘‘(C) SINGLE OR MULTIPLE PROCURE17 MENTS.—The second phase may include a single

18 procurement or multiple procurements within

19 the scope, or for the purpose, described in the no20 tice pursuant to paragraph (2)(A).

21 ‘‘(4) PROCEDURES CONSIDERED COMPETITIVE.—

22 The procedures used for selecting a source for a pro23 curement under this subsection shall be considered

24 competitive procedures for all purposes.
381

HR 6 EAS

1 ‘‘(e) USE OF SIMPLIFIED PROCEDURES FOR COMMER2 CIAL ITEMS.—Whenever the PBO anticipates that commer3 cial items will be offered for a procurement, the PBO may

4 use (consistent with the special rules for commercial items)

5 the special simplified procedures for the procurement with6 out regard to—

7 ‘‘(1) any dollar limitation otherwise applicable

8 to the use of those procedures; and

9 ‘‘(2) the expiration of the authority to use special

10 simplified procedures under section 4202(e) of the

11 Clinger-Cohen Act of 1996 (110 Stat. 654; 10 U.S.C.

12 2304 note).

13 ‘‘(f) FLEXIBLE WAIT PERIODS AND DEADLINES FOR

14 SUBMISSION OF OFFERS OF NONCOMMERCIAL ITEMS.—

15 ‘‘(1) AUTHORITY.—In carrying out a procure16 ment, the PBO may—

17 ‘‘(A) apply a shorter waiting period for the

18 issuance of a solicitation after the publication of

19 a notice under section 18 Office of Federal Pro20 curement Policy Act (41 U.S.C. 416) than is re21 quired under subsection (a)(3)(A) of such section;

22 and

23 ‘‘(B) notwithstanding subsection (a)(3) of

24 such section, establish any deadline for the sub25 mission of bids or proposals that affords poten-
382

HR 6 EAS

1 tial offerors a reasonable opportunity to respond

2 to the solicitation.

3 ‘‘(2) INAPPLICABILITY TO COMMERCIAL ITEMS.—

4 Paragraph (1) does not apply to a procurement of a

5 commercial item.

6 ‘‘(3) CONSISTENCY WITH APPLICABLE INTER7 NATIONAL AGREEMENTS.—If an international agree8 ment is applicable to the procurement, any exercise of

9 authority under paragraph (1) shall be consistent

10 with the international agreement.

11 ‘‘(g) MODULAR CONTRACTING.—

12 ‘‘(1) IN GENERAL.—The PBO may satisfy the re13 quirements of the PBO for a system incrementally by

14 carrying out successive procurements of modules of

15 the system. In doing so, the PBO may use procedures

16 authorized under this subsection to procure any such

17 module after the first module.

18 ‘‘(2) UTILITY REQUIREMENT.—A module may

19 not be procured for a system under this subsection un20 less the module is useful independently of the other

21 modules or useful in combination with another mod22 ule previously procured for the system.

23 ‘‘(3) CONDITIONS FOR USE OF AUTHORITY.—The

24 PBO may use procedures authorized under paragraph
383

HR 6 EAS

1 (4) for the procurement of an additional module for

2 a system if—

3 ‘‘(A) competitive procedures were used for

4 awarding the contract for the procurement of the

5 first module for the system; and

6 ‘‘(B) the solicitation for the first module in7 cluded—

8 ‘‘(i) a general description of the entire

9 system that was sufficient to provide poten10 tial offerors with reasonable notice of the

11 general scope of future modules;

12 ‘‘(ii) other information sufficient for

13 potential offerors to make informed business

14 judgments regarding whether to submit of15 fers for the contract for the first module;

16 and

17 ‘‘(iii) a statement that procedures au18 thorized under this subsection could be used

19 for awarding subsequent contracts for the

20 procurement of additional modules for the

21 system.

22 ‘‘(4) PROCEDURES.—If the procurement of the

23 first module for a system meets the requirements set

24 forth in paragraph (3), the PBO may award a con-
384

HR 6 EAS

1 tract for the procurement of an additional module for

2 the system using any of the following procedures:

3 ‘‘(A) SOLE SOURCE.—Award of the contract

4 on a sole-source basis to a contractor who was

5 awarded a contract for a module previously pro6 cured for the system under competitive proce7 dures or procedures authorized under subpara8 graph (B).

9 ‘‘(B) ADEQUATE COMPETITION.—Award of

10 the contract on the basis of offers made by—

11 ‘‘(i) a contractor who was awarded a

12 contract for a module previously procured

13 for the system after having been selected for

14 award of the contract under this subpara15 graph or other competitive procedures; and

16 ‘‘(ii) at least one other offeror that sub17 mitted an offer for a module previously pro18 cured for the system and is expected, on the

19 basis of the offer for the previously procured

20 module, to submit a competitive offer for the

21 additional module.

22 ‘‘(C) OTHER.—Award of the contract under

23 any other procedure authorized by law.

24 ‘‘(5) NOTICE REQUIREMENT.—
385

HR 6 EAS

1 ‘‘(A) PUBLICATION.—Not less than 30 days

2 before issuing a solicitation for offers for a con3 tract for a module for a system under procedures

4 authorized under subparagraph (A) or (B) of

5 paragraph (4), the PBO shall publish in the

6 Commerce Business Daily a notice of the intent

7 to use such procedures to enter into the contract.

8 ‘‘(B) EXCEPTION.—Publication of a notice

9 is not required under this paragraph with re10 spect to a use of procedures authorized under

11 paragraph (4) if the contractor referred to in

12 that subparagraph (who is to be solicited to sub13 mit an offer) has previously provided a module

14 for the system under a contract that contained

15 cost, schedule, and performance goals and the

16 contractor met those goals.

17 ‘‘(C) CONTENT OF NOTICE.—A notice pub18 lished under subparagraph (A) with respect to a

19 use of procedures described in paragraph (4)

20 shall contain the information required under sec21 tion 18(b) of the Office of Federal Procurement

22 Policy Act (41 U.S.C. 416(b)), other than para23 graph (4) of such section, and shall invite the

24 submission of any assertion that the use of the

25 procedures for the procurement involved is not in
386

HR 6 EAS

1 the best interest of the Federal Government to2 gether with information supporting the assertion.

3 ‘‘(6) DOCUMENTATION.—The basis for an award

4 of a contract under this subsection shall be docu5 mented. However, a justification pursuant to section

6 303(f) of the Federal Property and Administrative

7 Services Act of 1949 (41 U.S.C. 253(f)) or section

8 8(h) of the Small Business Act (15 U.S.C. 637(h)) is

9 not required.

10 ‘‘(7) SIMPLIFIED SOURCE-SELECTION PROCE11 DURES.—The PBO may award a contract under any

12 other simplified procedures prescribed by the PBO for

13 the selection of sources for the procurement of modules

14 for a system, after the first module, that are not to

15 be procured under a contract awarded on a sole16 source basis.

17 ‘‘(h) USE OF SIMPLIFIED PROCEDURES FOR SMALL

18 BUSINESS SET-ASIDES FOR SERVICES OTHER THAN COM19 MERCIAL ITEMS.—

20 ‘‘(1) AUTHORITY.—The PBO may use special

21 simplified procedures for a procurement of services

22 that are not commercial items if—

23 ‘‘(A) the procurement is in an amount not

24 greater than $1,000,000;
387

HR 6 EAS

1 ‘‘(B) the procurement is conducted as a

2 small business set-aside pursuant to section

3 15(a) of the Small Business Act (15 U.S.C.

4 644(a)); and

5 ‘‘(C) the price charged for supplies associ6 ated with the services procured are items of sup7 ply expected to be less than 20 percent of the

8 total contract price.

9 ‘‘(2) INAPPLICABILITY TO CERTAIN PROCURE10 MENTS.—The authority set forth in paragraph (1)

11 may not be used for—

12 ‘‘(A) an award of a contract on a sole13 source basis; or

14 ‘‘(B) a contract for construction.

15 ‘‘(i) GUIDANCE FOR USE OF AUTHORITY.—

16 ‘‘(1) ISSUANCE BY PBO.—The Chief Operating

17 Officer of the PBO, in consultation with the Adminis18 trator for Federal Procurement Policy, shall issue

19 guidance for the use by PBO personnel of the author20 ity provided in this section.

21 ‘‘(2) GUIDANCE FROM OFPP.—As part of the con22 sultation required under paragraph (1), the Adminis23 trator for Federal Procurement Policy shall provide

24 the PBO with guidance that is designed to ensure, to

25 the maximum extent practicable, that the authority
388

HR 6 EAS

1 under this section is exercised by the PBO in a man2 ner that is consistent with the exercise of the author3 ity by the heads of the other performance-based orga4 nizations.

5 ‘‘(3) COMPLIANCE WITH OFPP GUIDANCE.—The

6 head of the PBO shall ensure that the procurements

7 of the PBO under this section are carried out in a

8 manner that is consistent with the guidance provided

9 for the PBO under paragraph (2).

10 ‘‘(j) LIMITATION ON MULTIAGENCY CONTRACTING.—

11 No department or agency of the Federal Government may

12 purchase property or services under contracts entered into

13 or administered by a PBO under this section unless the

14 purchase is approved in advance by the senior procurement

15 official of that department or agency who is responsible for

16 purchasing by the department or agency.

17 ‘‘(k) LAWS NOT AFFECTED.—Nothing in this section

18 shall be construed to waive laws for the enforcement of civil

19 rights or for the establishment and enforcement of labor

20 standards that are applicable to contracts of the Federal

21 Government.

22 ‘‘(l) DEFINITIONS.—In this section:

23 ‘‘(1) COMMERCIAL ITEM.—The term ‘commercial

24 item’ has the meaning given the term in section 4(12)
389

HR 6 EAS

1 of the Office of Federal Procurement Policy Act (41

2 U.S.C. 403(12)).

3 ‘‘(2) COMPETITIVE PROCEDURES.—The term

4 ‘competitive procedures’ has the meaning given the

5 term in section 309(b) of the Federal Property and

6 Administrative Services Act of 1949 (41 U.S.C.

7 259(b)).

8 ‘‘(3) MUTUAL BENEFIT CORPORATION.—The term

9 ‘mutual benefit corporation’ means a corporation or10 ganized and chartered as a mutual benefit corpora11 tion under the laws of any State governing the incor12 poration of nonprofit corporations.

13 ‘‘(4) SOLE-SOURCE BASIS.—The term ‘sole-source

14 basis’, with respect to an award of a contract, means

15 that the contract is awarded to a source after solicit16 ing an offer or offers from, and negotiating with, only

17 that source.

18 ‘‘(5) SPECIAL RULES FOR COMMERCIAL ITEMS.—

19 The term ‘special rules for commercial items’ means

20 the regulations set forth in the Federal Acquisition

21 Regulation pursuant to section 303(g)(1) of the Fed22 eral Property and Administrative Services Act of

23 1949 (41 U.S.C. 253(g)(1)) and section 31 of the Of24 fice of Federal Procurement Policy Act (41 U.S.C.

25 427).
390

HR 6 EAS

1 ‘‘(6) SPECIAL SIMPLIFIED PROCEDURES.—The

2 term ‘special simplified procedures’ means the proce3 dures applicable to purchases of property and services

4 for amounts not greater than the simplified acquisi5 tion threshold that are set forth in the Federal Acqui6 sition Regulation pursuant to section 303(g)(1)(B) of

7 the Federal Property and Administrative Services Act

8 of 1949 (41 U.S.C. 253(g)(1)(A)) and section 31(a)(1)

9 of the Office of Federal Procurement Policy Act (41

10 U.S.C. 427(a)(1)).’’.

11 SEC. 496. STUDENT LOAN OMBUDSMAN OFFICE.

12 Title IV (20 U.S.C. 1070 et seq.) is amended by adding

13 after part I (as added by section 495) the following:

14 ‘‘PART J—STUDENT LOAN OMBUDSMAN OFFICE

15 ‘‘SEC. 499F. STUDENT LOAN OMBUDSMAN OFFICE.

16 ‘‘(a) OFFICE ESTABLISHED.—The Secretary shall es17 tablish, within the Department, a Student Loan Ombuds18 man Office.

19 ‘‘(b) INDEPENDENCE OF STUDENT LOAN OMBUDSMAN

20 OFFICE.—In the exercise of its functions, powers, and du21 ties, the Student Loan Ombudsman Office shall be inde22 pendent of the Secretary and the other offices and officers

23 of the Department.

24 ‘‘(c) STUDENT LOAN OMBUDSMAN.—The Student Loan

25 Ombudsman Office shall be managed by the Student Loan
391

HR 6 EAS

1 Ombudsman, who shall be appointed by the Secretary to

2 a 5-year term. The Secretary shall appoint the Student

3 Loan Ombudsman not later than 6 months after the date

4 of enactment of the Higher Education Amendments of 1998.

5 The appointment shall be made without regard to political

6 affiliation or activity. The Secretary may reappoint the

7 Student Loan Ombudsman to subsequent terms.

8 ‘‘(d) DUTIES AND RESPONSIBILITIES.—The Student

9 Loan Ombudsman Office shall—

10 ‘‘(1) directly assist student loan borrowers with

11 loans made, insured, or guaranteed under this title;

12 ‘‘(2) ensure that student loan borrower com13 plaints and requests for assistance are promptly re14 solved and responded to by the Secretary, contractors

15 or servicers, guaranty agencies, lenders, and other

16 loan holders, or the agents of such individuals or enti17 ties;

18 ‘‘(3) investigate and resolve complaints of stu19 dent loan borrowers;

20 ‘‘(4) provide information on the experience of

21 borrowers with respect to existing and proposed stat22 utes, regulations, and Department directives and ac23 tions;
392

HR 6 EAS

1 ‘‘(5) track and analyze complaint data by loan

2 program, institution, lender, guaranty agency, and

3 servicer, as applicable; and

4 ‘‘(6) report annually to the appropriate commit5 tees of Congress, which report shall be made available

6 to the public, regarding the responsibilities and per7 formance of the Student Loan Ombudsman Office, in8 cluding an analysis of complaint data described in

9 paragraph (5).

10 ‘‘(e) STUDENT LOAN OMBUDSMAN OFFICE ACCESS TO

11 RECORDS.—The Student Loan Ombudsman Office shall,

12 upon presentation of a signed release form from a student

13 loan borrower, have full and complete access to all records

14 regarding the borrower’s loan and education program that

15 are necessary to carry out the Student Loan Ombudsman’s

16 duties. The Student Loan Ombudsman shall maintain per17 sonal identifying information in the strictest confidence

18 and use such information only for the purpose of assisting

19 the borrower in pursuing resolution of the individual’s com20 plaint, unless written authorization is obtained to use such

21 information for other specified purposes.

22 ‘‘(f) ACCESSIBILITY FOR BORROWERS.—The Student

23 Loan Ombudsman Office shall maintain a toll-free tele24 phone number and Internet web site for receiving borrower

25 complaints.
393

HR 6 EAS

1 ‘‘(g) NOTIFICATION TO BORROWERS.—The Student

2 Loan Ombudsman Office shall encourage maximum out3 reach to borrowers by all appropriate parties, including the

4 Department, Congress, lenders, institutions of higher edu5 cation, loan servicers, and guaranty agencies, to provide on6 going notice, to student loan borrowers, of the Student Loan

7 Ombudsman Office. Such notice, including the toll-free tele8 phone number, at a minimum, shall be given to borrowers

9 in publications and on Internet web sites.

10 ‘‘(h) CONFLICT OF INTEREST.—Employees of the Stu11 dent Loan Ombudsman Office shall not be employees or offi12 cers of any participant in the student loan programs under

13 this Act (other than the Department), including any lender,

14 guaranty agency, proprietary institution of higher edu15 cation, postsecondary vocational institution, institution of

16 higher education, loan servicer, collections agency, or trade

17 association or education advocacy group representing any

18 such entity. The Student Loan Ombudsman Office shall

19 avoid all conflicts of interest and appearances of impropri20 ety.

21 ‘‘(i) SUPPLEMENT AND NOT SUPPLANT.—The remedies

22 and procedures of the Student Loan Ombudsman Office

23 shall supplement and not supplant any other consumer

24 remedies and procedures available to borrowers.
394

HR 6 EAS

1 ‘‘(j) FUNDING.—In each fiscal year, not less than

2 $2,000,000 of the amount appropriated for the fiscal year

3 for salaries and expenses at the Department shall be avail4 able to carry out this section.’’.

5 TITLE V—GRADUATE AND POST6 SECONDARY IMPROVEMENT

7 PROGRAMS

8 SEC. 501. REPEALS, TRANSFERS, AND REDESIGNATIONS.

9 (a) IN GENERAL.—Title V (20 U.S.C. 1101 et seq.) is

10 amended—

11 (1) by amending the title heading to read as fol12 lows:

13 ‘‘TITLE V—GRADUATE AND POST14 SECONDARY IMPROVEMENT

15 PROGRAMS’’;

16 (2) by repealing parts A, B, C, D, E, and F of

17 title V (20 U.S.C. 1102 et seq., 1103 et seq., 1104 et

18 seq., 1107 et seq., 1111 et seq., and 1113 et seq.);

19 (3) by transferring part C of title IX, part D of

20 title IX, part A of title XI, and part A of title X (20

21 U.S.C. 1134h et seq., 1134l et seq., 1136 et seq., and

22 1135 et seq.) to title V and redesignating such parts

23 as parts A, B, D, and E, respectively;
395

HR 6 EAS

1 (4) by redesignating sections 931 through 935

2 (20 U.S.C. 1134h et seq. and 1134k–1 et seq.) as sec3 tions 501 through 505, respectively;

4 (5) by redesignating sections 941 through 947

5 (20 U.S.C. 1134l and 1134q–1) as section 511

6 through 517, respectively;

7 (6) by redesignating sections 1101 through 1109

8 (20 U.S.C. 1136 through 1136h) as sections 531

9 through 539, respectively; and

10 (7) by redesignating sections 1001, 1002, 1003,

11 1004, and 1011 (20 U.S.C. 1135, 1135a–1, 1135a–2,

12 1135a–3, and 1135a–11) as sections 541, 542, 543,

13 544, and 551, respectively.

14 (b) CROSS REFERENCE CONFORMING AMENDMENTS.—

15 (1) JACOB K. JAVITS FELLOWSHIP PROGRAM.—

16 Section 504(a) (as redesignated by subsection (a)(4))

17 (20 U.S.C. 1134k(a)) is amended by striking ‘‘933’’

18 and inserting ‘‘503’’.

19 (2) GRADUATE ASSISTANCE IN AREAS OF NA20 TIONAL NEED.—Part B of title V (as redesignated by

21 paragraphs (3) and (5) of subsection (a)) (20 U.S.C.

22 1134l et seq.) is amended—

23 (A) in section 514(b)(7) (as redesignated by

24 subsection (a)(5)) (20 U.S.C. 1134o(b)(7)), by

25 striking ‘‘945’’ and inserting ‘‘515’’; and
396

HR 6 EAS

1 (B) in section 515(c) (as redesignated by

2 subsection (a)(5)) (20 U.S.C. 1134p(c))—

3 (i) by striking ‘‘946(a)’’ and inserting

4 ‘‘516(a)’’; and

5 (ii) by striking ‘‘944(b)(2)’’ and insert6 ing ‘‘514(b)(2)’’.

7 (3) URBAN AND COMMUNITY SERVICE.—Part C

8 of title V (as redesignated by paragraphs (3) and (6)

9 of subsection (a)) (20 U.S.C. 1136 et seq.) is amend10 ed—

11 (A) in section 532(b) (20 U.S.C. 1136a(b)),

12 by striking ‘‘1104’’ and inserting ‘‘534’’;

13 (B) in section 534(12) (20 U.S.C.

14 1136c(12)), by striking ‘‘1103(a)(2)(B)’’ and in15 serting ‘‘533(a)(2)(B)’’; and

16 (C) in section 538(1) (20 U.S.C. 1136g(1)),

17 by striking ‘‘1103’’ and inserting ‘‘533’’.

18 (4) FIPSE.—Subsections (b) and (c) of section

19 544 (as redesignated by subsection (a)(7)) (20 U.S.C.

20 1135a–3) each are amended by striking ‘‘1001(b)’’

21 and inserting ‘‘541(b)’’.

22 SEC. 502. PURPOSE.

23 Section 500 (20 U.S.C. 1101) is amended to read as

24 follows:
397

HR 6 EAS

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 superior

6 ability and achievement, exceptional promise,

7 and demonstrated financial need, into high-qual8 ity graduate programs and provide the students

9 with the financial support necessary to complete

10 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;

15 ‘‘(ii) encourage talented students to

16 pursue scholarly careers in the humanities,

17 social sciences, and the arts; and

18 ‘‘(iii) encourage talented individuals

19 from underrepresented groups to pursue fac20 ulty careers in higher education; and

21 ‘‘(2) to promote postsecondary programs.’’.

22 PART A—JACOB K. JAVITS FELLOWSHIP

23 PROGRAM

24 SEC. 511. AWARD OF FELLOWSHIPS.

25 (a) AWARD OF JACOB K. JAVITS FELLOWSHIPS.—Sec26 tion 501 (as redesignated by section 501(4)) is amended—
398

HR 6 EAS

1 (1) in subsection (a)—

2 (A) in the first sentence, by inserting ‘‘, fi3 nancial need,’’ after ‘‘demonstrated achieve4 ment’’;

5 (B) in the second sentence—

6 (i) by striking ‘‘students intending’’

7 and inserting ‘‘students who are eligible to

8 receive any grant, loan, or work assistance

9 pursuant to section 484 and intend’’; and

10 (ii) by striking ‘‘commonly accepted’’

11 and all that follows through ‘‘degree-grant12 ing institution’’ and inserting ‘‘the terminal

13 highest degree awarded in the area of

14 study’’; and

15 (C) in the third sentence, by inserting ‘‘fol16 lowing the fiscal year’’ after ‘‘July 1 of the fiscal

17 year’’; and

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

19 ‘‘(d) PROCESS AND TIMING OF COMPETITION.—The

20 Secretary shall make applications for fellowships under this

21 part available not later than October 1 of the academic year

22 preceding the academic year for which fellowships will be

23 awarded, and shall announce the recipients of fellowships

24 under this section not later than March 1 of the academic
399

HR 6 EAS

1 year preceding the academic year for which the fellowships

2 are awarded.

3 ‘‘(e) AUTHORITY TO CONTRACT.—The Secretary is au4 thorized to enter into a contract with a nongovernmental

5 agency to administer the program assisted under this part

6 if the Secretary determines that entering into the contract

7 is an efficient means of carrying out the program.’’.

8 (b) ALLOCATION OF FELLOWSHIPS.—Section 502 (as

9 redesignated by section 501(4)) (20 U.S.C. 1134i) is amend10 ed—

11 (1) in subsection (a)—

12 (A) in the third sentence of paragraph (1),

13 by striking ‘‘knowledgeable about and have expe14 rience’’ and inserting ‘‘representative of a range

15 of disciplines’’; and

16 (B) in paragraph (2)—

17 (i) by amending subparagraph (B) to

18 read as follows:

19 ‘‘(B) establish general criteria for the award

20 of fellowships in academic fields identified by the

21 Board, or, in the event that the Secretary enters

22 into a contract with a nongovernmental entity to

23 administer the program assisted under this part,

24 by such nongovernmental entity;’’; and
400

HR 6 EAS

1 (ii) in subparagraph (C), by inserting

2 ‘‘except that, in the event that the Secretary

3 enters into a contract with a nongovern4 mental entity to administer the program,

5 such panels may be appointed by such non6 governmental entity’’ before the semicolon;

7 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 503 (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 measurements

20 of need approved by the Secretary’’ and inserting

21 ‘‘determined in accordance with part F of title

22 IV’’; and

23 (2) in subsection (b)(1)(A)—

24 (A) in clause (i)—
401

HR 6 EAS

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 1993–1994’’

11 and inserting ‘‘$10,000 for the academic

12 year 1999–2000’’; and

13 (iii) in subclause (II), by striking

14 ‘‘$9,000’’ and inserting ‘‘$10,000’’.

15 (d) AUTHORIZATION OF APPROPRIATIONS.—Section

16 505 (as redesignated by section 501(4)) (20 U.S.C. 1134k–

17 1) is amended by striking ‘‘1993’’ and inserting ‘‘1999’’.

18 PART B—GRADUATE ASSISTANCE IN AREAS OF

19 NATIONAL NEED

20 SEC. 521. GRADUATE ASSISTANCE IN AREAS OF NATIONAL

21 NEED.

22 (a) DESIGNATION OF AREAS OF NATIONAL NEED.—

23 Subsection (b) of section 513 (as redesignated by section

24 501(5)) (20 U.S.C. 1134n) is amended to read as follows:
402

HR 6 EAS

1 ‘‘(b) DESIGNATION OF AREAS OF NATIONAL NEED.—

2 After consultation with the National Science Foundation,

3 the National Academy of Sciences, and other appropriate

4 Federal and nonprofit agencies and organizations, the Sec5 retary shall designate areas of national need. In making

6 such designations, the Secretary shall take into consider7 ation—

8 ‘‘(1) the extent to which the national interest in

9 the area is compelling;

10 ‘‘(2) the extent to which other Federal programs

11 support postbaccalaureate study in the area con12 cerned; 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 514(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;
403

HR 6 EAS

1 (2) by redesignating paragraphs (4) through (9)

2 as paragraphs (5) through (10), respectively;

3 (3) by inserting after paragraph (3) the follow4 ing:

5 ‘‘(4) describe the number, types, and amounts of

6 the fellowships that the applicant intends to offer with

7 grant funds provided under this part;’’ and

8 (4) in paragraph (5)(A) (as redesignated by

9 paragraph (2)), by striking ‘‘criteria developed by the

10 institution’’ and inserting ‘‘part F of title IV’’.

11 (c) AWARDS.—Section 515 (as redesignated by section

12 501(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 measurements

17 of need approved by the Secretary’’ and inserting

18 ‘‘determined in accordance with part F of title

19 IV’’; and

20 (2) in subsection (c), by striking ‘‘such pay21 ments’’ and inserting ‘‘such excess’’.

22 (d) INSTITUTIONAL PAYMENTS.—Section 516(a)(1) (as

23 redesignated by section 501(5)) (20 U.S.C. 1134q(a)(1)) is

24 amended—

25 (1) in subparagraph (A)—
404

HR 6 EAS

1 (A) by striking ‘‘$6,000 annually’’ and in2 serting ‘‘$10,000 for each academic year,’’; and

3 (B) by striking ‘‘1993–1994’’ and inserting

4 ‘‘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 the

10 academic year 1993–1994’’ and inserting

11 ‘‘$10,000 for the academic year 1999–2000’’; and

12 (C) in clause (ii), by striking ‘‘$9,000’’ and

13 inserting ‘‘$10,000’’.

14 (e) AUTHORIZATION OF APPROPRIATIONS.—Section

15 517 (as redesignated by section 501(5)) (20 U.S.C. 1134q–

16 1) is amended by striking ‘‘$40,000,000 for fiscal year

17 1993’’ and inserting ‘‘$30,000,000 for fiscal year 1999’’.

18 PART C—FACULTY DEVELOPMENT PROGRAM

19 SEC. 531. FACULTY DEVELOPMENT PROGRAM REAUTHOR20 IZED.

21 Title V (20 U.S.C. 1101 et seq.) is amended further

22 by inserting after part B (as redesignated by section

23 501(a)(3)) the following:
405

HR 6 EAS

1 ‘‘PART C—FACULTY DEVELOPMENT

2 FELLOWSHIPS

3 ‘‘SEC. 521. FACULTY DEVELOPMENT FELLOWSHIPS AUTHOR4 IZED.

5 ‘‘(a) IN GENERAL.—The Secretary shall make grants

6 to institutions of higher education, or consortia of such in7 stitutions, to enable such institutions to award fellowships

8 to talented graduate students in order to increase the access

9 of individuals from underrepresented groups to pursue

10 graduate study, and to teach in institutions of higher edu11 cation.

12 ‘‘(b) UNDERREPRESENTED GROUPS DEFINED.—For

13 the purpose of this part, the term ‘underrepresented groups’

14 means African Americans, Hispanic Americans, Asian

15 Americans, Native Americans, Pacific Islanders, Native

16 Hawaiians, and individuals who are pursuing graduate

17 study in academic disciplines in which the individuals are

18 underrepresented for the individuals’ gender.

19 ‘‘(c) PREFERENCE.—In making awards under this

20 part, the Secretary shall give preference to applicants with

21 a demonstrated record of—

22 ‘‘(1) admitting students from the Ronald E.

23 McNair Postbaccalaureate Achievement Program or a

24 program with a similar purpose;

25 ‘‘(2) graduating individuals from groups under26 represented in graduate education; and
406

HR 6 EAS

1 ‘‘(3) placing the graduates of the institution or

2 consortium in faculty positions in institutions of

3 higher education.

4 ‘‘(d) REPORTING.—Each institution of higher edu5 cation or consortium receiving a grant under this section

6 shall, on an annual basis, provide to the Secretary evidence

7 regarding—

8 ‘‘(1) the success of the institution in attracting

9 underrepresented students into graduate programs;

10 ‘‘(2) graduating the students; and

11 ‘‘(3) the success of each graduate in obtaining a

12 faculty position in an institution of higher education.

13 ‘‘(e) APPLICATION REQUIRED.—

14 ‘‘(1) IN GENERAL.—Each academic department

15 or program of an institution of higher education de16 siring a grant under this part shall submit an appli17 cation to the Secretary at such time, in such manner,

18 and containing such information as the Secretary

19 may reasonably require.

20 ‘‘(2) ADDITIONAL ASSURANCES.—Each applica21 tion submitted pursuant to paragraph (1) shall—

22 ‘‘(A) provide an assurance that, in the event

23 that funds made available to the academic de24 partment or program under this part are insuf25 ficient to provide assistance due a student under
407

HR 6 EAS

1 a commitment entered into between the academic

2 department and the student, the academic de3 partment or program will endeavor, from funds

4 available to the department or program, to fulfill

5 the commitment made to the student; and

6 ‘‘(B) contain such other assurances as the

7 Secretary may reasonably require.

8 ‘‘(3) APPROVAL OF APPLICATIONS.—The Sec9 retary shall prescribe criteria for the approval of ap10 plications submitted under paragraph (1).

11 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There are

12 authorized to be appropriated to carry out this part

13 $30,000,000 for fiscal year 1999 and such sums as may be

14 necessary for each of the 4 succeeding fiscal years.’’.

15 PART D—URBAN COMMUNITY SERVICE

16 SEC. 541. URBAN COMMUNITY SERVICE.

17 (a) PRIORITY.—Section 533(b) (as redesignated by sec18 tion 501(a)(6)) (20 U.S.C. 1136b(b)) is amended by adding

19 at the end the following: ‘‘In addition, the Secretary shall

20 give priority to eligible institutions submitting applications

21 that demonstrate the eligible institution’s commitment to

22 urban community service.’’.

23 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

24 539 (as redesignated by section 501(a)(6)) (20 U.S.C.
408

HR 6 EAS

1 1136h) is amended by striking ‘‘1993’’ and inserting

2 ‘‘1999’’.

3 PART E—FUND FOR THE IMPROVEMENT OF

4 POSTSECONDARY EDUCATION

5 SEC. 551. FUND FOR THE IMPROVEMENT OF POSTSECOND6 ARY EDUCATION.

7 (a) AUTHORITY.—Section 541(a) (as redesignated by

8 section 501(a)(7)) (20 U.S.C. 1135(a)) is amended—

9 (1) in the matter preceding paragraph (1)—

10 (A) by striking ‘‘or combinations of such in11 stitutions’’ and inserting ‘‘, combinations of such

12 institutions,’’; and

13 (B) by striking ‘‘institutions and combina14 tions of such institutions’’ and inserting ‘‘insti15 tutions, combinations, and agencies’’; and

16 (2) in paragraph (2)—

17 (A) by striking ‘‘and programs involving

18 new’’ and inserting ‘‘, programs and joint efforts

19 involving’’; and

20 (B) by striking ‘‘new combinations’’ and in21 serting ‘‘combinations’’.

22 (b) TECHNICAL EMPLOYEES.—Section 543(a) (as re23 designated by section 501(a)(7)) (20 U.S.C. 1135a–2(a)) is

24 amended by striking ‘‘5 technical’’ and inserting ‘‘7 tech25 nical’’.
409

HR 6 EAS

1 (c) AUTHORIZATION OF APPROPRIATIONS.—Section

2 544 (as redesignated by section 501(a)(7)) (20 U.S.C.

3 1135a–3) is amended—

4 (1) in subsection (a), by striking ‘‘$20,000,000

5 for fiscal year 1993’’ and inserting ‘‘$26,000,000 for

6 fiscal year 1999’’; and

7 (2) in subsection (b), by striking ‘‘1993’’ and in8 serting ‘‘1999’’.

9 (d) AREAS OF NATIONAL NEED.—

10 (1) AREAS.—Section 551(c) (as redesignated by

11 section 501(a)(7)) (20 U.S.C. 1135a–11(c)) is amend12 ed—

13 (A) in paragraph (2), by striking ‘‘Campus

14 climate and culture’’ and inserting ‘‘Institu15 tional restructuring to improve learning and

16 promote cost efficiencies’’;

17 (B) in paragraph (3), by inserting ‘‘of

18 model programs’’ after ‘‘dissemination’’; and

19 (C) by adding at the end the following:

20 ‘‘(4) Articulation between 2-year and 4-year in21 stitutions of higher education, including developing

22 innovative methods for ensuring the successful trans23 fer of students from 2-year to 4-year institutions of

24 higher education.’’.
410

HR 6 EAS

1 (2) AUTHORIZATION OF APPROPRIATIONS.—Sec2 tion 551(d) (as redesignated by section 501(a)(7)) (20

3 U.S.C. 1135a–11(d)) is amended by striking ‘‘1993’’

4 and inserting ‘‘1999’’.

5 PART F—HIGHER EDUCATION ACCESS FOR STU6 DENTS WITH DISABILITIES; HISPANIC-SERV7 ING INSTITUTIONS; GENERAL PROVISIONS

8 SEC. 561. HIGHER EDUCATION ACCESS FOR STUDENTS

9 WITH DISABILITIES; HISPANIC-SERVING IN10 STITUTIONS; GENERAL PROVISIONS.

11 Title V (20 U.S.C. 1101 et seq.) is amended further

12 by adding at the end the following:

13 ‘‘PART F—HIGHER EDUCATION ACCESS FOR

14 STUDENTS WITH DISABILITIES

15 ‘‘SEC. 571. HIGHER EDUCATION ACCESS FOR STUDENTS

16 WITH DISABILITIES.

17 ‘‘(a) PURPOSE.—It is the purpose of this part—

18 ‘‘(1) to support the development of model pro19 grams to provide technical assistance or training, and

20 professional development, for faculty and administra21 tors in institutions of higher education, as defined in

22 section 481(a), to provide the faculty and administra23 tors with the skills and assistance to teach effectively

24 students with disabilities; and
411

HR 6 EAS

1 ‘‘(2) to ensure effective evaluation and dissemi2 nation of such model programs.

3 ‘‘(b) GRANTS AUTHORIZED.—

4 ‘‘(1) IN GENERAL.—The Secretary is authorized

5 to award grants to institutions of higher education to

6 carry out the purposes of this part.

7 ‘‘(2) MODEL PROGRAMS.—To the extent feasible,

8 the model programs developed under this part shall be

9 developed for a range of types and sizes of institutions

10 of higher education.

11 ‘‘(3) GEOGRAPHIC DISTRIBUTION.—In awarding

12 grants under this part, the Secretary shall consider—

13 ‘‘(A) providing an equitable geographic dis14 tribution of such grants; and

15 ‘‘(B) distributing such grants to urban and

16 rural areas.

17 ‘‘(4) APPROACHES.—The Secretary shall award

18 grants under this part for a range of approaches to

19 providing support to faculty and administrators, such

20 as in-service training, professional development, cus21 tomized and general technical assistance, workshops,

22 summer institutes, distance learning and the use of

23 educational technology.

24 ‘‘(c) DISSEMINATION OF GRANTS.—The Secretary may

25 award grants to institutions of higher education that have
412

HR 6 EAS

1 demonstrated exceptional programs for students with dis2 abilities under this part in order to disseminate those pro3 grams.

4 ‘‘(d) APPLICATIONS.—Each institution of higher edu5 cation desiring a grant under this part shall submit an ap6 plication to the Secretary at such time, in such manner,

7 and accompanied by such information as the Secretary

8 may require. Each such application shall include—

9 ‘‘(1) a plan to assess the needs of the institution

10 of higher education in order to meet the purposes of

11 this part, in consultation with a broad range of per12 sons within that institution; and

13 ‘‘(2) a plan for coordinating with or collaborat14 ing with the office within the institution that pro15 vides services to students with disabilities, and the

16 equal opportunity office within the institution, if the

17 offices exist.

18 ‘‘(e) USE OF FUNDS.—Any institution of higher edu19 cation receiving a grant under this part—

20 ‘‘(1) shall use the grant funds to—

21 ‘‘(A) meet the purposes of this section; and

22 ‘‘(B) ensure that projects assisted under this

23 part include components for model development,

24 demonstration, evaluation, and dissemination to

25 other institutions of higher education; and
413

HR 6 EAS

1 ‘‘(2) may include, to the extent practicable, grad2 uate teaching assistants in the services provided

3 under the grant.

4 ‘‘(f) GRANT AWARDS.—The Secretary shall award

5 grants under this part for a period of 3 years.

6 ‘‘(g) CONSTRUCTION.—Nothing in this section shall be

7 construed to impose any additional duty, obligation, or re8 sponsibility on an institution of higher education, or on

9 the institution’s administrators, faculty, or staff, in addi10 tion to the requirements of section 504 of the Rehabilitation

11 Act of 1973 and the Americans with Disabilities Act of

12 1990.

13 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There

14 are authorized to be appropriated to carry out this section

15 $10,000,000 for fiscal year 1999 and such sums as may be

16 necessary for each of the 4 succeeding fiscal years.

17 ‘‘PART G—HISPANIC-SERVING INSTITUTIONS

18 ‘‘SEC. 580. FINDINGS.

19 ‘‘Congress makes the following findings:

20 ‘‘(1) Hispanic Americans are at high risk of not

21 enrolling or graduating from institutions of higher

22 education.

23 ‘‘(2) Disparities between the enrollment of non24 Hispanic white students and Hispanic students in

25 postsecondary education are increasing. Between 1973
414

HR 6 EAS

1 and 1994, enrollment of white secondary school grad2 uates in 4-year institutions of higher education in3 creased at a rate 2 times higher than that of His4 panic secondary school graduates.

5 ‘‘(3) Despite significant limitations in resources,

6 Hispanic-serving institutions provide a significant

7 proportion of postsecondary opportunities for His8 panic students.

9 ‘‘(4) Relative to other institutions of higher edu10 cation, Hispanic-serving institutions are under11 funded. Such institutions receive significantly less in

12 State and local funding, per full-time equivalent stu13 dent, than other institutions of higher education.

14 ‘‘(5) Hispanic-serving institutions are succeeding

15 in educating Hispanic students despite significant re16 source problems that—

17 ‘‘(A) limit the ability of such institutions to

18 expand and improve the academic programs of

19 such institutions; and

20 ‘‘(B) could imperil the financial and ad21 ministrative stability of such institutions.

22 ‘‘(6) There is a national interest in remedying

23 the disparities described in paragraphs (2) and (4)

24 and ensuring that Hispanic students have an equal

25 opportunity to pursue postsecondary opportunities.
415

HR 6 EAS

1 ‘‘SEC. 581. PURPOSE.

2 ‘‘The purpose of this part is to—

3 ‘‘(1) expand educational opportunities for, and

4 improve the academic attainment of, Hispanic stu5 dents; and

6 ‘‘(2) expand and enhance the academic offerings,

7 program quality, and institutional stability of col8 leges and universities that are educating the majority

9 of Hispanic college students and helping large num10 bers of Hispanic students and other low-income indi11 viduals complete postsecondary degrees.

12 ‘‘SEC. 582. PROGRAM AUTHORIZED.

13 ‘‘(a) IN GENERAL.—The Secretary shall provide grants

14 and related assistance to Hispanic-serving institutions to

15 enable such institutions to improve and expand their capac16 ity to serve Hispanic students and other low-income indi17 viduals.

18 ‘‘(b) AUTHORIZED ACTIVITIES.—

19 ‘‘(1) TYPES OF ACTIVITIES AUTHORIZED.—

20 Grants awarded under this section shall be used by

21 Hispanic-serving institutions of higher education to

22 assist such institutions to plan, develop, undertake,

23 and carry out programs to improve and expand such

24 institutions’ capacity to serve Hispanic students and

25 other low-income students.
416

HR 6 EAS

1 ‘‘(2) EXAMPLES OF AUTHORIZED ACTIVITIES.—

2 The programs described in paragraph (1) may in3 clude—

4 ‘‘(A) purchase, rental, or lease of scientific

5 or laboratory equipment for educational pur6 poses, including instructional and research pur7 poses;

8 ‘‘(B) renovation and improvement in class9 room, library, laboratory, and other instruc10 tional facilities;

11 ‘‘(C) support of faculty exchanges, and fac12 ulty development and faculty fellowships to as13 sist in attaining advanced degrees in their field

14 of instruction;

15 ‘‘(D) curriculum development and academic

16 instruction;

17 ‘‘(E) purchase of library books, periodicals,

18 microfilm, and other educational materials;

19 ‘‘(F) funds and administrative manage20 ment, and acquisition of equipment for use in

21 strengthening funds management;

22 ‘‘(G) joint use of facilities such as labora23 tories and libraries;

24 ‘‘(H) academic tutoring and counseling pro25 grams and student support services; and
417

HR 6 EAS

1 ‘‘(I) expanding the number of Hispanic and

2 other underrepresented graduate and professional

3 students that can be served by the institution by

4 expanding courses and institutional resources.

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 in10 stitution.

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 subparagraph (A), for the estab17 lishment or increase of the endowment fund.

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

19 part C of title III regarding the establishment or

20 increase of an endowment fund, that the Sec21 retary determines are not inconsistent with this

22 paragraph, shall apply to funds used under sub23 paragraph (A).

24 ‘‘(c) WAIT-OUT-PERIOD.—Each Hispanic-serving in25 stitution that receives a grant under this part shall not be
418

HR 6 EAS

1 eligible to receive an additional grant under this part until

2 2 years after the date on which the preceding grant period

3 terminates.

4 ‘‘SEC. 583. APPLICATION PROCESS.

5 ‘‘(a) INSTITUTIONAL ELIGIBILITY.—Each Hispanic6 serving institution desiring to receive assistance under this

7 part shall submit to the Secretary such enrollment data as

8 may be necessary to demonstrate that the institution is a

9 Hispanic-serving institution as defined in section 585,

10 along with such other data and information as the Sec11 retary may by regulation require.

12 ‘‘(b) APPLICATIONS.—Any institution which is deter13 mined by the Secretary to be a Hispanic-serving institution

14 (on the basis of the data and information submitted under

15 subsection (a)) may submit an application for assistance

16 under this part to the Secretary. Such application shall in17 clude—

18 ‘‘(1) a 5-year plan for improving the assistance

19 provided by the Hispanic-serving institution to His20 panic students and other low-income individuals; and

21 ‘‘(2) such other information and assurance as the

22 Secretary may require.

23 ‘‘(c) PRIORITY.—With respect to applications for as24 sistance under this section, the Secretary shall give priority

25 to an application that contains satisfactory evidence that
419

HR 6 EAS

1 the Hispanic-serving institution has entered into or will

2 enter into a collaborative arrangement with at least one

3 local educational agency or community-based organization

4 to provide such agency or organization with assistance

5 (from funds other than funds provided under this part) in

6 reducing dropout rates for Hispanic students, improving

7 rates of academic achievement for Hispanic students, and

8 increasing the rates at which Hispanic secondary school

9 graduates enroll in higher education.

10 ‘‘SEC. 584. SPECIAL RULE.

11 ‘‘No Hispanic-serving institution that is eligible for

12 and receives funds under this part may receive funds under

13 part A or B of title III during the period for which funds

14 under this part are awarded.

15 ‘‘SEC. 585. DEFINITIONS.

16 ‘‘For purposes of this part:

17 ‘‘(1) HISPANIC-SERVING INSTITUTION.—The term

18 ‘Hispanic-serving institution’ means an institution of

19 higher education which—

20 ‘‘(A) is an eligible institution under section

21 312(b);

22 ‘‘(B) at the time of application, has an en23 rollment of undergraduate full-time equivalent

24 students that is at least 25 percent Hispanic stu25 dents; and
420

HR 6 EAS

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

2 50 percent of its Hispanic students are low-in3 come individuals.

4 ‘‘(2) LOW-INCOME INDIVIDUAL.—The term ‘low5 income individual’ means an individual from a fam6 ily whose taxable income for the preceding year did

7 not exceed 150 percent of an amount equal to the pov8 erty level determined by using criteria of poverty es9 tablished by the Bureau of the Census.

10 ‘‘SEC. 586. AUTHORIZATION OF APPROPRIATIONS.

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

12 this part $45,000,000 for fiscal year 1999 and such sums

13 as may be necessary for each of the 4 succeeding fiscal years.

14 ‘‘PART H—THURGOOD MARSHALL LEGAL

15 EDUCATIONAL OPPORTUNITY PROGRAM

16 ‘‘SEC. 588. LEGAL EDUCATIONAL OPPORTUNITY PROGRAM.

17 ‘‘(a) PROGRAM AUTHORITY.—The Secretary shall

18 carry out a program to be known as the ‘Thurgood Marshall

19 Legal Educational Opportunity Program’ designed to pro20 vide low-income, minority, or disadvantaged college stu21 dents with the information, preparation, and financial as22 sistance to gain access to and complete law school study.

23 ‘‘(b) ELIGIBILITY.—A college student is eligible for as24 sistance under this section if the student is—

25 ‘‘(1) from a low-income family;
421

HR 6 EAS

1 ‘‘(2) a minority; or

2 ‘‘(3) from an economically or otherwise dis3 advantaged background.

4 ‘‘(c) CONTRACT OR GRANT AUTHORIZED.—The Sec5 retary is authorized to enter into a contract with, or make

6 a grant to, the Council on Legal Education Opportunity,

7 for a period of not less than 5 years—

8 ‘‘(1) to identify college students who are from

9 low-income families, are minorities, or are from dis10 advantaged backgrounds described in subsection

11 (b)(3);

12 ‘‘(2) to prepare such students for study at ac13 credited law schools;

14 ‘‘(3) to assist such students to select the appro15 priate law school, make application for entry into

16 law school, and receive financial assistance for such

17 study;

18 ‘‘(4) to provide support services to such students

19 who are first-year law students to improve retention

20 and success in law school studies; and

21 ‘‘(5) to motivate and prepare such students with

22 respect to law school studies and practice in low-in23 come communities.

24 ‘‘(d) SERVICES PROVIDED.—In carrying out the pur25 poses described in subsection (c), the contract or grant shall
422

HR 6 EAS

1 provide for the delivery of services through prelaw informa2 tion resource centers, summer institutes, midyear seminars,

3 and other educational activities, conducted under this sec4 tion. Such services may include—

5 ‘‘(1) information and counseling regarding—

6 ‘‘(A) accredited law school academic pro7 grams, especially tuition, fees, and admission re8 quirements;

9 ‘‘(B) course work offered and required for

10 graduation;

11 ‘‘(C) faculty specialties and areas of legal

12 emphasis; and

13 ‘‘(D) undergraduate preparatory courses

14 and curriculum selection;

15 ‘‘(2) tutoring and academic counseling, includ16 ing assistance in preparing for bar examinations;

17 ‘‘(3) prelaw mentoring programs, involving law

18 school faculty, members of State and local bar asso19 ciations, and retired and sitting judges, justices, and

20 magistrates;

21 ‘‘(4) assistance in identifying preparatory

22 courses and material for the law school aptitude or

23 admissions tests;

24 ‘‘(5) summer institutes for Thurgood Marshall

25 Fellows that expose the Fellows to a rigorous curricu-
423

HR 6 EAS

1 lum that emphasizes abstract thinking, legal analysis,

2 research, writing, and examination techniques; and

3 ‘‘(6) midyear seminars and other educational ac4 tivities that are designed to reinforce reading, writ5 ing, and studying skills of Thurgood Marshall Fel6 lows.

7 ‘‘(e) DURATION OF THE PROVISION OF SERVICES.—

8 The services described in subsection (d) may be provided—

9 ‘‘(1) prior to the period of law school study;

10 ‘‘(2) during the period of law school study; and

11 ‘‘(3) during the period following law school study

12 and prior to taking a bar examination.

13 ‘‘(f) SUBCONTRACTS AND SUBGRANTS.—For the pur14 poses of planning, developing, or delivering one or more of

15 the services described in subsection (d), the Council on Legal

16 Education Opportunity shall enter into subcontracts with,

17 and make subgrants to, institutions of higher education,

18 law schools, public and private agencies and organizations,

19 and combinations of such institutions, schools, agencies,

20 and organizations.

21 ‘‘(g) STIPENDS.—The Secretary shall annually estab22 lish the maximum stipend to be paid (including allowances

23 for participant travel and for the travel of the dependents

24 of the participant) to Thurgood Marshall Fellows for the

25 period of participation in summer institutes and midyear
424

HR 6 EAS

1 seminars. A Fellow may be eligible for such a stipend only

2 if the Fellow maintains satisfactory academic progress to3 ward the Juris Doctor or Bachelor of Laws degree, as deter4 mined by the respective institutions.

5 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There

6 are authorized to be appropriated to carry out this section

7 $5,000,000 for fiscal year 1999 and each of the 4 succeeding

8 fiscal years.

9 ‘‘PART I—GENERAL PROVISIONS

10 ‘‘SEC. 591. ADMINISTRATIVE PROVISIONS FOR PARTS A, B,

11 AND C.

12 ‘‘(a) COORDINATED ADMINISTRATION.—In carrying

13 out the purpose described in section 500(1), the Secretary

14 shall provide for coordinated administration and regulation

15 of graduate programs assisted under parts A, B, and C with

16 other Federal programs providing assistance for graduate

17 education in order to minimize duplication and improve

18 efficiency to ensure that the programs are carried out in

19 a manner most compatible with academic practices and

20 with the standard timetables for applications for, and noti21 fications of acceptance to, graduate programs.

22 ‘‘(b) HIRING AUTHORITY.—For purposes of carrying

23 out parts A, B, and C, the Secretary shall appoint, without

24 regard to the provisions of title 5, United States Code, that

25 govern appointments in the competitive service, such ad-
425

HR 6 EAS

1 ministrative and technical employees, with the appropriate

2 educational background, as shall be needed to assist in the

3 administration of such parts. The employees shall be paid

4 without regard to the provisions of chapter 51 and sub5 chapter III of chapter 53 of such title relating to classifica6 tion and General Schedule pay rates.

7 ‘‘(c) USE FOR RELIGIOUS PURPOSES PROHIBITED.—

8 No institutional payment or allowance under section 503(b)

9 or 516 shall be paid to a school or department of divinity

10 as a result of the award of a fellowship under part A or

11 B, respectively, to an individual who is studying for a reli12 gious vocation.

13 ‘‘(d) EVALUATION.—The Secretary shall evaluate the

14 success of assistance provided to individuals under part A,

15 B, or C with respect to graduating from their degree pro16 grams, and placement in faculty and professional positions.

17 ‘‘(e) CONTINUATION AWARDS.—The Secretary, using

18 funds appropriated to carry out parts A and B, and before

19 awarding any assistance under such parts to a recipient

20 that did not receive assistance under part C or D of title

21 IX (as such parts were in effect prior to the date of enact22 ment of the Higher Education Amendments of 1998) shall

23 continue to provide funding to recipients of assistance

24 under such part C or D (as so in effect), as the case may

25 be, pursuant to any multiyear award of such assistance.’’.
426

HR 6 EAS

1 TITLE VI—INTERNATIONAL

2 EDUCATION PROGRAMS

3 SEC. 601. INTERNATIONAL AND FOREIGN LANGUAGE STUD4 IES.

5 Part A of title VI (20 U.S.C. 1121 et seq.) is amended

6 to read as follows:

7 ‘‘PART A—INTERNATIONAL AND FOREIGN

8 LANGUAGE STUDIES

9 ‘‘SEC. 601. FINDINGS AND PURPOSES.

10 ‘‘(a) FINDINGS.—The Congress finds that—

11 ‘‘(1) the well-being of the United States, its econ12 omy and long-range security, is dependent on the edu13 cation and training of Americans in international

14 and foreign language studies and on a strong research

15 base in these areas;

16 ‘‘(2) knowledge of other countries and the ability

17 to communicate in other languages is essential to the

18 promotion of mutual understanding and cooperation

19 among nations; and

20 ‘‘(3) systematic efforts are necessary to enhance

21 the capacity of institutions of higher education in the

22 United States for—

23 ‘‘(A) producing graduates with inter24 national and foreign language expertise and

25 knowledge; and
427

HR 6 EAS

1 ‘‘(B) research regarding such expertise and

2 knowledge.

3 ‘‘(b) PURPOSES.—It is the purpose of this part—

4 ‘‘(1) to assist in the development of knowledge,

5 international study, resources and trained personnel;

6 ‘‘(2) to stimulate the attainment of foreign lan7 guage acquisition and fluency;

8 ‘‘(3) to develop a pool of international experts to

9 meet national needs; and

10 ‘‘(4) to coordinate the programs of the Federal

11 Government in the areas of foreign language, area

12 and other international studies, including profes13 sional international affairs education, and research.

14 ‘‘SEC. 602. GRADUATE AND UNDERGRADUATE LANGUAGE

15 AND AREA CENTERS AND PROGRAMS.

16 ‘‘(a) NATIONAL LANGUAGE AND AREA CENTERS AND

17 PROGRAMS AUTHORIZED.—

18 ‘‘(1) CENTERS AND PROGRAMS.—

19 ‘‘(A) IN GENERAL.—The Secretary is au20 thorized—

21 ‘‘(i) to make grants to institutions of

22 higher education, or combinations thereof,

23 for the purpose of establishing, strengthen24 ing, and operating comprehensive language

25 and area centers and programs; and
428

HR 6 EAS

1 ‘‘(ii) to make grants to such institu2 tions or combinations for the purpose of es3 tablishing, strengthening, and operating a

4 diverse network of undergraduate language

5 and area centers and programs.

6 ‘‘(B) NATIONAL RESOURCES.—The centers

7 and programs referred to in paragraph (1) shall

8 be national resources for—

9 ‘‘(i) teaching of any modern foreign

10 language;

11 ‘‘(ii) instruction in fields needed to

12 provide full understanding of areas, regions,

13 or countries in which such language is com14 monly used;

15 ‘‘(iii) research and training in inter16 national studies, and the international and

17 foreign language aspects of professional and

18 other fields of study; and

19 ‘‘(iv) instruction and research on

20 issues in world affairs which concern one or

21 more countries.

22 ‘‘(2) AUTHORIZED ACTIVITIES.—Any such grant

23 may be used to pay all or part of the cost of establish24 ing or operating a center or program, including the

25 cost of—
429

HR 6 EAS

1 ‘‘(A) faculty, staff, and student travel in

2 foreign areas, regions, or countries;

3 ‘‘(B) teaching and research materials;

4 ‘‘(C) curriculum planning and development;

5 ‘‘(D) bringing visiting scholars and faculty

6 to the center to teach or to conduct research;

7 ‘‘(E) establishing and maintaining linkages

8 with overseas institutions of higher education

9 and other organizations that may contribute to

10 the teaching and research of the center or pro11 gram; and

12 ‘‘(F) training and improvement of the staff,

13 for the purpose of, and subject to such conditions

14 as the Secretary finds necessary for, carrying out

15 this section.

16 ‘‘(3) GRANTS TO MAINTAIN LIBRARY COLLEC17 TIONS.—The Secretary may make grants to centers

18 described in paragraph (1) having important library

19 collections, as determined by the Secretary, for the

20 maintenance of such collections.

21 ‘‘(4) OUTREACH GRANTS AND SUMMER INSTI22 TUTES.—The Secretary may make additional grants

23 to centers described in paragraph (1) for any one or

24 more of the following purposes:
430

HR 6 EAS

1 ‘‘(A) Programs of linkage or outreach be2 tween foreign language, area studies, and other

3 international fields and professional schools and

4 colleges.

5 ‘‘(B) Programs of linkage or outreach with

6 2-year and 4-year colleges and universities.

7 ‘‘(C) Programs of linkage or outreach with

8 departments or agencies of Federal and State

9 Governments.

10 ‘‘(D) Programs of linkage or outreach with

11 the news media, business, professional, or trade

12 associations.

13 ‘‘(E) Summer institutes in foreign area,

14 foreign language, and other international fields

15 designed to carry out the programs of linkage

16 and outreach in subparagraphs (A), (B), (C),

17 and (D).

18 ‘‘(b) STIPENDS FOR FOREIGN LANGUAGE AND AREA

19 STUDIES.—

20 ‘‘(1) IN GENERAL.—The Secretary is authorized

21 to make grants to institutions of higher education or

22 combinations of such institutions for the purpose of

23 paying stipends to individuals undergoing advanced

24 training in any center or program approved by the

25 Secretary.
431

HR 6 EAS

1 ‘‘(2) REQUIREMENTS.—Students receiving sti2 pends described in paragraph (1) shall be individuals

3 who are engaged in an instructional program with

4 stated performance goals for functional foreign lan5 guage use or in a program developing such perform6 ance goals, in combination with area studies, inter7 national studies, or the international aspects of a pro8 fessional studies program.

9 ‘‘(3) ALLOWANCES.—Stipends awarded to grad10 uate level recipients may include allowances for de11 pendents and for travel for research and study in the

12 United States and abroad.

13 ‘‘(c) SPECIAL RULE WITH RESPECT TO TRAVEL.—No

14 funds may be expended under this part for undergraduate

15 travel except in accordance with rules prescribed by the Sec16 retary setting forth policies and procedures to assure that

17 Federal funds made available for such travel are expended

18 as part of a formal program of supervised study.

19 ‘‘SEC. 603. LANGUAGE RESOURCE CENTERS.

20 ‘‘(a) LANGUAGE RESOURCE CENTERS AUTHORIZED.—

21 The Secretary is authorized to make grants to and enter

22 into contracts with institutions of higher education, or com23 binations of such institutions, for the purpose of establish24 ing, strengthening, and operating a small number of na25 tional language resource and training centers, which shall
432

HR 6 EAS

1 serve as resources to improve the capacity to teach and

2 learn foreign languages effectively.

3 ‘‘(b) AUTHORIZED ACTIVITIES.—The activities carried

4 out by the centers described in subsection (a)—

5 ‘‘(1) shall include effective dissemination efforts,

6 whenever appropriate; and

7 ‘‘(2) may include—

8 ‘‘(A) the conduct and dissemination of re9 search on new and improved teaching methods,

10 including the use of advanced educational tech11 nology;

12 ‘‘(B) the development and dissemination of

13 new teaching materials reflecting the use of such

14 research in effective teaching strategies;

15 ‘‘(C) the development, application, and dis16 semination of performance testing appropriate to

17 an educational setting for use as a standard and

18 comparable measurement of skill levels in all

19 languages;

20 ‘‘(D) the training of teachers in the admin21 istration and interpretation of performance tests,

22 the use of effective teaching strategies, and the

23 use of new technologies;

24 ‘‘(E) the publication and dissemination to

25 individuals and organizations in the foreign lan-
433

HR 6 EAS

1 guage field of instructional materials in the less

2 commonly taught languages;

3 ‘‘(F) the development and dissemination of

4 materials designed to serve as a resource for for5 eign language teachers at the elementary and

6 secondary school levels; and

7 ‘‘(G) the operation of intensive summer lan8 guage institutes to train advanced foreign lan9 guage students, provide professional development,

10 and improve language instruction through

11 preservice and inservice language training for

12 teachers.

13 ‘‘(c) CONDITIONS FOR GRANTS.—Grants under this

14 section shall be made on such conditions as the Secretary

15 determines to be necessary to carry out the provisions of

16 this section.

17 ‘‘SEC. 604. UNDERGRADUATE INTERNATIONAL STUDIES

18 AND FOREIGN LANGUAGE PROGRAMS.

19 ‘‘(a) INCENTIVES FOR THE CREATION OF NEW PRO20 GRAMS AND THE STRENGTHENING OF EXISTING PROGRAMS

21 IN UNDERGRADUATE INTERNATIONAL STUDIES AND FOR22 EIGN LANGUAGES.—

23 ‘‘(1) AUTHORITY.—The Secretary is authorized

24 to make grants to institutions of higher education,

25 combinations of such institutions, or partnerships be-
434

HR 6 EAS

1 tween nonprofit educational institutions and institu2 tions of higher education, to assist such institutions,

3 combinations or partnerships in planning, develop4 ing, and carrying out programs to improve under5 graduate instruction in international studies and for6 eign languages. Such grants shall be awarded to insti7 tutions, combinations or partnerships seeking to cre8 ate new programs or to strengthen existing programs

9 in area studies, foreign languages, and other inter10 national fields.

11 ‘‘(2) FEDERAL SHARE AND USE OF FUNDS.—

12 Grants made under this section may be used to pay

13 not more than 50 percent of the cost of projects and

14 activities which are an integral part of such a pro15 gram, such as—

16 ‘‘(A) planning for the development and ex17 pansion of undergraduate programs in inter18 national studies and foreign languages;

19 ‘‘(B) teaching, research, curriculum develop20 ment, faculty training in the United States or

21 abroad, and other related activities, including

22 the expansion of library and teaching resources;

23 ‘‘(C) expansion of opportunities for learning

24 foreign languages, including less commonly

25 taught languages;
435

HR 6 EAS

1 ‘‘(D) programs under which foreign teachers

2 and scholars may visit institutions as visiting

3 faculty;

4 ‘‘(E) programs designed to develop or en5 hance linkages between 2-year and 4-year insti6 tutions of higher education, or baccalaureate and

7 post-baccalaureate programs or institutions;

8 ‘‘(F) the development of undergraduate

9 study abroad programs in locations abroad in

10 which such study opportunities are not otherwise

11 available and the integration of these programs

12 into specific on-campus degree programs;

13 ‘‘(G) the development of model programs to

14 enhance the effectiveness of study abroad, includ15 ing predeparture and post return programs;

16 ‘‘(H) the development of programs designed

17 to integrate professional and technical education

18 with area studies, foreign languages, and other

19 international fields;

20 ‘‘(I) the conduct of summer institutes in for21 eign area, foreign language, and other inter22 national fields for purposes that are consistent

23 with the projects and activities described in this

24 subsection; and
436

HR 6 EAS

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 and

10 noninstitutional funds, including State, private sec11 tor, 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 to

16 have successfully completed at least 2 years of second17 ary school foreign language instruction or that re18 quire each graduating student to earn 2 years of post19 secondary credit in a foreign language (or have dem20 onstrated equivalent competence in the foreign lan21 guage) or, in the case of a 2-year degree granting in22 stitution, offer 2 years of postsecondary credit in a

23 foreign language.

24 ‘‘(5) GRANT CONDITIONS.—Grants under this

25 subsection shall be made on such conditions as the
437

HR 6 EAS

1 Secretary determines to be necessary to carry out this

2 subsection.

3 ‘‘(6) APPLICATION.—Each application for assist4 ance 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 in

11 ongoing collaboration with regard to achieving

12 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 pro16 gram 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 sup20 plement and not supplant funds expended by the

21 institution, prior to the receipt of the Federal as22 sistance, for programs to improve undergraduate

23 instruction in international studies and foreign

24 languages.
438

HR 6 EAS

1 ‘‘(7) EVALUATION.—The Secretary may establish

2 requirements for program evaluations and require

3 grant recipients to submit annual reports that evalu4 ate the progress and performance of students partici5 pating in programs assisted under this subsection.

6 ‘‘(b) PROGRAMS OF NATIONAL SIGNIFICANCE.—The

7 Secretary may also award grants to public and private

8 nonprofit agencies and organizations, including profes9 sional and scholarly associations, whenever the Secretary

10 determines such grants will make an especially significant

11 contribution to improving undergraduate international

12 studies and foreign language programs.

13 ‘‘SEC. 605. RESEARCH; STUDIES; ANNUAL REPORT.

14 ‘‘(a) AUTHORIZED ACTIVITIES.—The Secretary may,

15 directly or through grants or contracts, conduct research

16 and studies that contribute to achieving the purposes of this

17 part. Such research and studies may include—

18 ‘‘(1) studies and surveys to determine needs for

19 increased or improved instruction in foreign lan20 guage, area studies, or other international fields, in21 cluding the demand for foreign language, area, and

22 other international specialists in government, edu23 cation, and the private sector;

24 ‘‘(2) studies and surveys to assess the utilization

25 of graduates of programs supported under this title by
439

HR 6 EAS

1 governmental, educational, and private sector organi2 zations and other studies assessing the outcomes and

3 effectiveness of programs so supported;

4 ‘‘(3) evaluation of the extent to which programs

5 assisted under this title that address national needs

6 would not otherwise be offered;

7 ‘‘(4) comparative studies of the effectiveness of

8 strategies to provide international capabilities at in9 stitutions of higher education;

10 ‘‘(5) research on more effective methods of pro11 viding instruction and achieving competency in for12 eign languages;

13 ‘‘(6) the development and publication of special14 ized materials for use in foreign language, area stud15 ies, and other international fields, or for training for16 eign language, area, and other international special17 ists;

18 ‘‘(7) studies and evaluations of effective practices

19 in the dissemination of international information,

20 materials, research, teaching strategies, and testing

21 techniques throughout the education community, in22 cluding elementary and secondary schools; and

23 ‘‘(8) the application of performance tests and

24 standards across all areas of foreign language instruc25 tion and classroom use.
440

HR 6 EAS

1 ‘‘(b) ANNUAL REPORT.—The Secretary shall prepare,

2 publish, and announce an annual report listing the books

3 and research materials produced with assistance under this

4 section.

5 ‘‘SEC. 606. SELECTION OF CERTAIN GRANT RECIPIENTS.

6 ‘‘(a) COMPETITIVE GRANTS.—The Secretary shall

7 award grants under section 602 competitively on the basis

8 of criteria that separately, but not less rigorously, evaluates

9 the applications for comprehensive and undergraduate lan10 guage and area centers and programs.

11 ‘‘(b) SELECTION CRITERIA.—The Secretary shall set

12 criteria for grants awarded under section 602 by which a

13 determination of excellence shall be made to meet the differ14 ing objectives of graduate and undergraduate institutions.

15 ‘‘(c) EQUITABLE DISTRIBUTION OF GRANTS.—The

16 Secretary shall, to the extent practicable, award grants

17 under this part (other than section 602) in such manner

18 as to achieve an equitable distribution of the grant funds

19 throughout the United States, based on the merit of a pro20 posal as determined pursuant to a peer review process in21 volving broadly representative professionals.

22 ‘‘SEC. 607. EQUITABLE DISTRIBUTION OF CERTAIN FUNDS.

23 ‘‘(a) SELECTION CRITERIA.—The Secretary shall make

24 excellence the criterion for selection of grants awarded

25 under section 602.
441

HR 6 EAS

1 ‘‘(b) EQUITABLE DISTRIBUTION.—To the extent prac2 ticable and consistent with the criterion of excellence, the

3 Secretary shall award grants under this part (other than

4 section 602) in such a manner as will achieve an equitable

5 distribution of funds throughout the United States.

6 ‘‘(c) SUPPORT FOR UNDERGRADUATE EDUCATION.—

7 The Secretary shall also award grants under this part in

8 such manner as to ensure that an appropriate portion of

9 the funds appropriated for this part (as determined by the

10 Secretary) are used to support undergraduate education.

11 ‘‘SEC. 608. AMERICAN OVERSEAS RESEARCH CENTERS.

12 ‘‘(a) CENTERS AUTHORIZED.—The Secretary is au13 thorized to make grants to and enter into contracts with

14 any American overseas research center that is a consortium

15 of institutions of higher education (hereafter in this section

16 referred to as a ‘‘center’’) to enable such center to promote

17 postgraduate research, exchanges and area studies.

18 ‘‘(b) USE OF GRANTS.—Grants made and contracts

19 entered into pursuant to this section may be used to pay

20 all or a portion of the cost of establishing or operating a

21 center or program, including—

22 ‘‘(1) the cost of faculty and staff stipends and

23 salaries;

24 ‘‘(2) the cost of faculty, staff, and student travel;
442

HR 6 EAS

1 ‘‘(3) the cost of the operation and maintenance

2 of overseas facilities;

3 ‘‘(4) the cost of teaching and research materials;

4 ‘‘(5) the cost of acquisition, maintenance, and

5 preservation of library collections;

6 ‘‘(6) the cost of bringing visiting scholars and

7 faculty to a center to teach or to conduct research;

8 ‘‘(7) the cost of organizing and managing con9 ferences; and

10 ‘‘(8) the cost of publication and dissemination of

11 material for the scholarly and general public.

12 ‘‘(c) LIMITATION.—The Secretary shall only award

13 grants to and enter into contracts with centers under this

14 section that—

15 ‘‘(1) receive more than 50 percent of their fund16 ing from public or private United States sources;

17 ‘‘(2) have a permanent presence in the country

18 in which the center is located; and

19 ‘‘(3) are organizations described in section

20 501(c)(3) of the Internal Revenue Code of 1986 which

21 are exempt from taxation under section 501(a) of

22 such Code.

23 ‘‘(d) DEVELOPMENT GRANTS.—The Secretary is au24 thorized to make grants for the establishment of new centers.

25 The grants may be used to fund activities that, within 1
443

HR 6 EAS

1 year, will result in the creation of a center described in

2 subsection (c).

3 ‘‘SEC. 609. AUTHORIZATION OF APPROPRIATIONS.

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

5 this part $80,000,000 for fiscal year 1999, and such sums

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

7 years.’’.

8 SEC. 602. BUSINESS AND INTERNATIONAL EDUCATION PRO9 GRAMS.

10 Part B of title VI (20 U.S.C. 1130 et seq.) is amend11 ed—

12 (1) in section 612 (20 U.S.C. 1130–1)—

13 (A) in subsection (c)—

14 (i) in paragraph (1)—

15 (I) in subparagraph (B), by strik16 ing ‘‘advanced’’; and

17 (II) in subparagraph (C), by

18 striking ‘‘evening or summer’’; and

19 (ii) in paragraph (2)(C), by inserting

20 ‘‘foreign language,’’ after ‘‘studies,’’; and

21 (B) in subsection (d)(2)(G), by inserting ‘‘,

22 such as a representative of a community college

23 in the region served by the center’’ before the pe24 riod; and

25 (2) in section 614 (20 U.S.C. 1130b)—
444

HR 6 EAS

1 (A) in subsection (a), by striking ‘‘1993’’

2 and inserting ‘‘1999’’; and

3 (B) in subsection (b), by striking ‘‘1993’’

4 and inserting ‘‘1999’’.

5 SEC. 603. INSTITUTE FOR INTERNATIONAL PUBLIC POLICY.

6 Part C of title VI (20 U.S.C. 1131 et seq.) is amend7 ed—

8 (1) in section 621(e) (20 U.S.C. 1131(e))—

9 (A) by striking ‘‘one-fourth’’ and inserting

10 ‘‘one-half’’; and

11 (B) by adding at the end the following:

12 ‘‘The non-Federal contribution shall be made

13 from private sector sources.’’;

14 (2) by redesignating sections 622 through 627

15 (20 U.S.C. 1131a and 1131f) as sections 623 through

16 628, respectively; and

17 (3) by inserting after section 621 (20 U.S.C.

18 1131) the following:

19 ‘‘SEC. 622. INSTITUTIONAL DEVELOPMENT.

20 ‘‘(a) IN GENERAL.—The Institute shall award grants,

21 from amounts available to the Institute for each fiscal year,

22 to historically Black colleges and universities, Hispanic23 serving institutions, Tribally Controlled Colleges or Univer24 sities, and minority institutions, to enable such colleges,
445

HR 6 EAS

1 universities, and institutions to strengthen international af2 fairs programs.

3 ‘‘(b) APPLICATION.—No grant may be made by the In4 stitute unless an application is made by the college, univer5 sity, or institution at such time, in such manner, and ac6 companied by such information as the Institute may re7 quire.

8 ‘‘(c) DEFINITIONS.—In this section—

9 ‘‘(1) the term ‘historically Black college and uni10 versity’ has the meaning given the term in section

11 322;

12 ‘‘(2) the term ‘Hispanic-serving institution’ has

13 the meaning given the term in section 585;

14 ‘‘(3) the term ‘Tribally Controlled College or

15 University’ has the meaning given the term in section

16 2 of the Tribally Controlled College or University As17 sistance Act of 1978 (25 U.S.C. 1801); and

18 ‘‘(4) the term ‘minority institution’ has the

19 meaning given the term in section 365.’’;

20 (4) in section 623 (as redesignated by paragraph

21 (2))—

22 (A) in the section heading, by striking

23 ‘‘JUNIOR YEAR’’ and inserting ‘‘STUDY’’;

24 (B) in subsection (b)(2)—
446

HR 6 EAS

1 (i) by inserting ‘‘, or completing the

2 third year of study in the case of a summer

3 abroad program,’’ after ‘‘study’’; and

4 (ii) by striking ‘‘junior year’’ and in5 serting ‘‘study’’;

6 (C) in subsection (c)—

7 (i) in the matter preceding paragraph

8 (1), by striking ‘‘junior year’’ and inserting

9 ‘‘study’’;

10 (ii) in paragraph (1), by striking

11 ‘‘junior year’’ and inserting ‘‘study’’; and

12 (iii) in paragraph (2)—

13 (I) by striking ‘‘one-half’’ and in14 serting ‘‘one-third’’; and

15 (II) by striking ‘‘junior year’’ and

16 inserting ‘‘study’’;

17 (5) in section 627 (as redesignated by paragraph

18 (2)) (20 U.S.C. 1131e), by striking ‘‘625’’ and insert19 ing ‘‘626’’; and

20 (6) in section 628 (as redesignated by paragraph

21 (2)) (20 U.S.C. 1131f), by striking ‘‘1993’’ and insert22 ing ‘‘1999’’.

23 SEC. 604. GENERAL PROVISIONS.

24 Section 632 (20 U.S.C. 1132–1) is repealed.
447

HR 6 EAS

1 TITLE VII—RELATED PROGRAMS

2 AND AMENDMENTS TO OTHER

3 ACTS

4 PART A—INDIAN EDUCATION PROGRAMS

5 SEC. 711. TRIBALLY CONTROLLED COMMUNITY COLLEGE

6 ASSISTANCE ACT OF 1978.

7 (a) REAUTHORIZATION.—

8 (1) AMOUNT OF GRANTS.—Section 108(a)(2) of

9 the Tribally Controlled Community College Assistance

10 Act of 1978 (25 U.S.C. 1808(a)(2)) is amended by

11 striking ‘‘$5,820’’ and inserting ‘‘$6,000’’.

12 (2) AUTHORIZATION OF APPROPRIATIONS.—

13 (A) TITLE I.—Section 110(a) of the Trib14 ally Controlled Community College Assistance

15 Act of 1978 (25 U.S.C. 1810(a)) is amended—

16 (i) in paragraph (1), by striking

17 ‘‘1993’’ and inserting ‘‘1999’’;

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

19 ‘‘$30,000,000 for fiscal year 1993’’ and in20 serting ‘‘$40,000,000 for fiscal year 1999’’;

21 (iii) in paragraph (3), by striking

22 ‘‘1993’’ and inserting ‘‘1999’’; and

23 (iv) in paragraph (4), by striking

24 ‘‘1993’’ and inserting ‘‘1999’’.
448

HR 6 EAS

1 (B) TITLE III.—Section 306(a) of the Trib2 ally Controlled Community College Assistance

3 Act of 1978 (25 U.S.C. 1836(a)) is amended by

4 striking ‘‘1993’’ and inserting ‘‘1999’’.

5 (C) TITLE IV.—Section 403 of the Tribal

6 Economic Development and Technology Related

7 Education Assistance Act of 1990 (25 U.S.C.

8 1852) is amended by striking ‘‘1993’’ and insert9 ing ‘‘1999’’.

10 (b) NAME CHANGE.—The Tribally Controlled Commu11 nity College Assistance Act of 1978 (25 U.S.C. 1801 et seq.)

12 is amended—

13 (1) by striking ‘‘community college’’ each place

14 the term appears and inserting ‘‘college or univer15 sity’’;

16 (2) by striking ‘‘Community College’’ each place

17 the term appears (other than when such term is pre18 ceded by the term ‘‘Navajo’’) and inserting ‘‘College or

19 University’’;

20 (3) by striking ‘‘community colleges’’ each place

21 the term appears and inserting ‘‘colleges or univer22 sities’’;

23 (4) by striking ‘‘such college’’ each place the term

24 appears and inserting ‘‘such college or university’’;

25 and
449

HR 6 EAS

1 (5) by striking ‘‘community college’s’’ and insert2 ing ‘‘college or university’s’’.

3 SEC. 712. AMERICAN INDIAN, ALASKA NATIVE, AND NATIVE

4 HAWAIIAN CULTURE AND ART DEVELOP5 MENT.

6 Section 1531 of the American Indian, Alaska Native,

7 and Native Hawaiian Culture and Art Development Act

8 (20 U.S.C. 4451) is amended to read as follows:

9 ‘‘SEC. 1531. AUTHORIZATION OF APPROPRIATIONS.

10 ‘‘There is authorized to be appropriated to carry out

11 part A $5,000,000 for fiscal year 1999.’’.

12 SEC. 713. NAVAJO COMMUNITY COLLEGE ACT.

13 Section 5(a)(1) of the Navajo Community College Act

14 (25 U.S.C. 640c–1(a)(1)) is amended by striking ‘‘1993’’

15 and inserting ‘‘1999’’.

16 PART B—ADVANCED PLACEMENT INCENTIVE

17 PROGRAM

18 SEC. 721. ADVANCED PLACEMENT INCENTIVE PROGRAM.

19 (a) PROGRAM ESTABLISHED.—The Secretary of Edu20 cation is authorized to make grants to States having appli21 cations approved under subsection (d), from allotments

22 under subsection (b), to enable the States to reimburse low23 income individuals to cover part or all of the cost of ad24 vanced placement test fees, if the low-income individuals—
450

HR 6 EAS

1 (1) are enrolled in an advanced placement class;

2 and

3 (2) plan to take an advanced placement test.

4 (b) ALLOTMENT.—From the sum appropriated under

5 subsection (j) for a fiscal year, the Secretary shall allot to

6 each State an amount that bears the same relation to the

7 sum as the number of low-income individuals in the State

8 bears to the number of low-income individuals in all States.

9 (c) INFORMATION DISSEMINATION.—The State edu10 cational agency may use not more than 5 percent of grant

11 funds received for a fiscal year to disseminate information

12 regarding the availability of test fee payments under this

13 section to eligible individuals through secondary school

14 teachers and guidance counselors.

15 (d) REQUIREMENTS FOR APPROVAL OF APPLICA16 TIONS.—In approving applications for grants the Secretary

17 of Education shall—

18 (1) require that each such application contain a

19 description of the advance placement test fees the

20 State will pay on behalf of individual students;

21 (2) require an assurance that any funds received

22 under this section, other than funds used in accord23 ance with subsection (c), shall be used only to pay ad24 vanced placement test fees; and
451

HR 6 EAS

1 (3) contain such information as the Secretary

2 may require to demonstrate that the State will ensure

3 that a student is eligible for payments under this sec4 tion, including the documentation required by chapter

5 1 of subpart 2 of part A of title IV of the Higher

6 Education Act of 1965 (20 U.S.C. 1070a–11 et seq.).

7 (e) FUNDING RULE.—Funds provided under this sec8 tion shall be used to supplement and not supplant other

9 Federal, State, local or private funds available to assist low10 income individuals in paying for advanced placement test11 ing, except that such funds may be used to supplant the

12 funds so available if the funds used to supplant are used

13 to increase the participation of low-income individuals in

14 advanced placement courses through teacher training and

15 other activities directly related to increasing the availabil16 ity of advanced placement courses.

17 (f) SPECIAL RULE.—The Secretary of Education shall

18 only award grants under this section for a fiscal year if

19 the amount the College Board spends for the College Board’s

20 fee assistance program for low-income students for the fiscal

21 year is not less than the amount the College Board spent

22 for such program for the preceding fiscal year.

23 (g) REGULATIONS.—The Secretary of Education shall

24 prescribe such regulations as are necessary to carry out this

25 section.
452

HR 6 EAS

1 (h) REPORT.—Each State annually shall report to the

2 Secretary of Education regarding—

3 (1) the number of low-income individuals in the

4 State who receive assistance under this section; and

5 (2) the teacher training and other activities de6 scribed in subsection (e).

7 (i) DEFINITION.—In this section:

8 (1) ADVANCED PLACEMENT TEST.—The term

9 ‘‘advanced placement test’’ includes only an advanced

10 placement test approved by the Secretary of Edu11 cation for the purposes of this section.

12 (2) LOW-INCOME INDIVIDUAL.—The term ‘‘low13 income individual’’ has the meaning given the term

14 in section 402A(g)(2) of the Higher Education Act of

15 1965 (20 U.S.C. 1070a–11(g)(2)).

16 (j) AUTHORIZATION OF APPROPRIATIONS.—There are

17 authorized to be appropriated $10,000,000 for fiscal year

18 1999 and such sums as may be necessary for each of the

19 4 succeeding fiscal years to carry out this section.

20 PART C—UNITED STATES INSTITUTE OF PEACE

21 SEC. 731. AUTHORITIES OF THE UNITED STATES INSTITUTE

22 OF PEACE.

23 The United States Institute of Peace Act (22 U.S.C.

24 4601 et seq.) is amended—

25 (1) in section 1705 (22 U.S.C. 4604)—
453

HR 6 EAS

1 (A) in subsection (f), by inserting ‘‘personal

2 service and other’’ after ‘‘may enter into’’; and

3 (B) in subsection (o), by inserting after

4 ‘‘Services’’ the following: ‘‘and use all sources of

5 supply and services of the General Services Ad6 ministration’’;

7 (2) in section 1710(a)(1) (22 U.S.C.

8 4609(a)(1))—

9 (A) by striking ‘‘1993’’ and inserting

10 ‘‘1999’’; and

11 (B) by striking ‘‘6’’ and inserting ‘‘4’’; and

12 (3) in the second and third sentences of section

13 1712 (22 U.S.C. 4611), by striking ‘‘shall’’ each place

14 the term appears and inserting ‘‘may’’.

15 PART D—COMMUNITY SCHOLARSHIP

16 MOBILIZATION

17 SEC. 741. SHORT TITLE.

18 This part may be cited as the ‘‘Community Scholar19 ship Mobilization Act.’’

20 SEC. 742. FINDINGS.

21 Congress finds that—

22 (1) the local community, when properly orga23 nized and challenged, is one of the best sources of aca24 demic support, motivation toward achievement, and
454

HR 6 EAS

1 financial resources for aspiring postsecondary stu2 dents;

3 (2) local communities, working to complement or

4 augment services currently offered by area schools and

5 colleges, can raise the educational expectations and

6 increase the rate of postsecondary attendance of their

7 youth by forming locally-based organizations that

8 provide both academic support (including guidance,

9 counseling, mentoring, tutoring, encouragement, and

10 recognition) and tangible, locally raised, effectively

11 targeted, publicly recognized, financial assistance;

12 (3) proven methods of stimulating these commu13 nity efforts can be promoted through Federal support

14 for the establishment of regional, State or community

15 program centers to organize and challenge community

16 efforts to develop educational incentives and support

17 for local students; and

18 (4) using Federal funds to leverage private con19 tributions to help students from low-income families

20 attain educational and career goals is an efficient

21 and effective investment of scarce taxpayer-provided

22 resources.

23 SEC. 743. DEFINITIONS.

24 In this part:
455

HR 6 EAS

1 (1) REGIONAL, STATE OR COMMUNITY PROGRAM

2 CENTER.—The term ‘‘regional, State or community

3 program center’’ means an organization that—

4 (A) is a division or member of, responsible

5 to, and overseen by, a national organization;

6 and

7 (B) is staffed by professionals trained to

8 create, develop, and sustain local entities in

9 towns, cities, and neighborhoods.

10 (2) LOCAL ENTITY.—The term ‘‘local entity’’

11 means an organization that—

12 (A) is a nonprofit organization that is de13 scribed in section 501(c)(3) of the Internal Reve14 nue Code of 1986, and exempt from taxation

15 under section 501(a) of such Code (or shall meet

16 this criteria through affiliation with the national

17 organization);

18 (B) is formed for the purpose of providing

19 educational scholarships and academic support

20 for residents of the local community served by

21 such organization;

22 (C) solicits broad-based community support

23 in its academic support and fund-raising activi24 ties;
456

HR 6 EAS

1 (D) is broadly representative of the local

2 community in the structures of its volunteer-op3 erated organization and has a board of directors

4 that includes leaders from local neighborhood or5 ganizations and neighborhood residents, such as

6 school or college personnel, parents, students,

7 community agency representatives, retirees, and

8 representatives of the business community;

9 (E) awards scholarships without regard to

10 age, sex, marital status, race, creed, color, reli11 gion, national origin or disability; and

12 (F) gives priority to awarding scholarships

13 for postsecondary education to deserving students

14 from low-income families in the local commu15 nity.

16 (3) NATIONAL ORGANIZATION.—The term ‘‘na17 tional organization’’ means an organization that—

18 (A) has the capacity to create, develop and

19 sustain local entities and affiliated regional,

20 State or community program centers;

21 (B) has the capacity to sustain newly cre22 ated local entities in towns, cities, and neighbor23 hoods through ongoing training support pro24 grams;
457

HR 6 EAS

1 (C) is described in section 501(c)(3) of the

2 Internal Revenue Code of 1986, and exempt from

3 taxation under section 501(a) of such Code;

4 (D) is a publicly supported organization

5 within the meaning of section 170(b)(1)(A)(iv) of

6 such Code;

7 (E) ensures that each of the organization’s

8 local entities meet the criteria described in sub9 paragraphs (C) and (D); and

10 (F) has a program for or experience in co11 operating with secondary and postsecondary in12 stitutions in carrying out the organization’s

13 scholarship and academic support activities.

14 (4) HIGH POVERTY AREA.—The term ‘‘high pov15 erty area’’ means a community with a higher per16 centage of children from low-income families than the

17 national average of such percentage and a lower per18 centage of children pursuing postsecondary education

19 than the national average of such percentage.

20 (5) STUDENTS FROM LOW-INCOME FAMILIES.—

21 The term ‘‘students from low-income families’’ means

22 students determined, pursuant to part F of title IV of

23 the Higher Education Act of 1965 (20 U.S.C. 1087kk

24 et seq.), to be eligible for a Federal Pell Grant under
458

HR 6 EAS

1 subpart 1 of part A of title IV of such Act (20 U.S.C.

2 1070a).

3 SEC. 744. PURPOSE, ENDOWMENT GRANT AUTHORITY.

4 (a) PURPOSE.—It is the purpose of this part to estab5 lish and support regional, State or community program

6 centers to enable such centers to foster the development of

7 local entities in high poverty areas that promote higher edu8 cation goals for students from low-income families by—

9 (1) providing academic support, including guid10 ance, counseling, mentoring, tutoring, and recogni11 tion; and

12 (2) providing scholarship assistance for the cost

13 of postsecondary education.

14 (b) ENDOWMENT GRANT AUTHORITY.—From the funds

15 appropriated pursuant to the authority of section 746, the

16 Secretary shall award an endowment grant, on a competi17 tive basis, to a national organization to enable such organi18 zation to support the establishment or ongoing work of re19 gional, State or community program centers that foster the

20 development of local entities in high poverty areas to im21 prove high school graduation rates and postsecondary at22 tendance through the provision of academic support services

23 and scholarship assistance for the cost of postsecondary edu24 cation.
459

HR 6 EAS

1 SEC. 745. GRANT AGREEMENT AND REQUIREMENTS.

2 (a) IN GENERAL.—The Secretary shall award one or

3 more endowment grants described in section 744(b) pursu4 ant to an agreement between the Secretary and a national

5 organization. Such agreement shall—

6 (1) require a national organization to establish

7 an endowment fund in the amount of the grant, the

8 corpus of which shall remain intact and the interest

9 income from which shall be used to support the activi10 ties described in paragraphs (2) and (3);

11 (2) require a national organization to use 70

12 percent of the interest income from the endowment

13 fund in any fiscal year to support the establishment

14 or ongoing work of regional, State or community pro15 gram centers to enable such centers to work with local

16 communities to establish local entities in high poverty

17 areas and provide ongoing technical assistance, train18 ing workshops, and other activities to help ensure the

19 ongoing success of the local entities;

20 (3) require a national organization to use 30

21 percent of the interest income from the endowment

22 fund in any fiscal year to provide scholarships for

23 postsecondary education to students from low-income

24 families, which scholarships shall be matched on a

25 dollar-for-dollar basis from funds raised by the local

26 entities;
460

HR 6 EAS

1 (4) require that at least 50 percent of all the in2 terest income from the endowment be allocated to es3 tablish new local entities or support regional, State or

4 community program centers in high poverty areas;

5 (5) require a national organization to submit,

6 for each fiscal year in which such organization uses

7 the interest from the endowment fund, a report to the

8 Secretary that contains—

9 (A) a description of the programs and ac10 tivities supported by the interest on the endow11 ment fund;

12 (B) the audited financial statement of the

13 national organization for the preceding fiscal

14 year;

15 (C) a plan for the programs and activities

16 to be supported by the interest on the endowment

17 fund as the Secretary may require; and

18 (D) an evaluation of the programs and ac19 tivities supported by the interest on the endow20 ment fund as the Secretary may require; and

21 (E) data indicating the number of students

22 from low-income families who receive scholar23 ships from local entities, and the amounts of

24 such scholarships;
461

HR 6 EAS

1 (6) contain such assurances as the Secretary

2 may require with respect to the management and op3 eration of the endowment fund; and

4 (7) contain an assurance that if the Secretary

5 determines that such organization is not in substan6 tial compliance with the provisions of this part, then

7 the national organization shall pay to the Secretary

8 an amount equal to the corpus of the endowment fund

9 plus any accrued interest on such fund that is avail10 able to the national organization on the date of such

11 determination.

12 (b) RETURNED FUNDS.—All funds returned to the Sec13 retary pursuant to subsection (a)(7) shall be available to

14 the Secretary to carry out any scholarship or grant pro15 gram assisted under title IV of the Higher Education Act

16 of 1965 (20 U.S.C. 1070 et seq.).

17 SEC. 746. AUTHORIZATION OF APPROPRIATIONS.

18 There are authorized to be appropriated to carry out

19 this part $10,000,000 for fiscal year 2000.
462

HR 6 EAS

1 PART E—GRANTS TO STATES FOR WORKPLACE

2 AND COMMUNITY TRANSITION TRAINING

3 FOR INCARCERATED YOUTH OFFENDERS

4 SEC. 751. GRANTS TO STATES FOR WORKPLACE AND COM5 MUNITY TRANSITION TRAINING FOR INCAR6 CERATED YOUTH OFFENDERS.

7 (a) FINDINGS.—Congress makes the following findings:

8 (1) Over 150,000 youth offenders age 21 and

9 younger are incarcerated in the Nation’s jails, juve10 nile facilities, and prisons.

11 (2) Most youth offenders who are incarcerated

12 have been sentenced as first-time adult felons.

13 (3) Approximately 75 percent of youth offenders

14 are high school dropouts who lack basic literacy and

15 life skills, have little or no job experience, and lack

16 marketable skills.

17 (4) The average incarcerated youth has attended

18 school only through grade 10.

19 (5) Most of these youths can be diverted from a

20 life of crime into productive citizenship with available

21 educational, vocational, work skills, and related serv22 ice programs.

23 (6) If not involved with educational programs

24 while incarcerated, almost all of these youths will re25 turn to a life of crime upon release.
463

HR 6 EAS

1 (7) The average length of sentence for a youth of2 fender is about 3 years. Time spent in prison pro3 vides a unique opportunity for education and train4 ing.

5 (8) Even with quality education and training

6 provided during incarceration, a period of intense su7 pervision, support, and counseling is needed upon re8 lease to ensure effective reintegration of youth offend9 ers into society.

10 (9) Research consistently shows that the vast ma11 jority of incarcerated youths will not return to the

12 public schools to complete their education.

13 (10) There is a need for alternative educational

14 opportunities during incarceration and after release.

15 (b) DEFINITION.—For purposes of this part, the term

16 ‘‘youth offender’’ means a male or female offender under

17 the age of 25, who is incarcerated in a State prison, includ18 ing a prerelease facility.

19 (c) GRANT PROGRAM.—The Secretary of Education

20 (in this section referred to as the ‘‘Secretary’’) shall estab21 lish a program in accordance with this section to provide

22 grants to the State correctional education agencies in the

23 States, from allocations for the States under subsection (i),

24 to assist and encourage incarcerated youths to acquire func25 tional literacy, life, and job skills, through the pursuit of
464

HR 6 EAS

1 a postsecondary education certificate, or an associate of arts

2 or bachelor’s degree while in prison, and employment coun3 seling and other related services which start during incar4 ceration and continue through prerelease and while on pa5 role.

6 (d) APPLICATION.—To be eligible for a grant under

7 this section, a State correctional education agency shall sub8 mit to the Secretary a proposal for a youth offender pro9 gram that—

10 (1) identifies the scope of the problem, including

11 the number of incarcerated youths in need of post12 secondary education and vocational training;

13 (2) lists the accredited public or private edu14 cational institution or institutions that will provide

15 postsecondary educational services;

16 (3) lists the cooperating agencies, public and pri17 vate, or businesses that will provide related services,

18 such as counseling in the areas of career development,

19 substance abuse, health, and parenting skills;

20 (4) describes the evaluation methods and per21 formance measures that the State correctional edu22 cation agency will employ, which methods and meas23 ures—

24 (A) shall be appropriate to meet the goals

25 and objectives of the proposal; and
465

HR 6 EAS

1 (B) shall include measures of—

2 (i) program completion;

3 (ii) student academic and vocational

4 skill attainment;

5 (iii) success in job placement and re6 tention; and

7 (iv) recidivism;

8 (5) describes how the proposed programs are to

9 be integrated with existing State correctional edu10 cation programs (such as adult education, graduate

11 education degree programs, and vocational training)

12 and State industry programs;

13 (6) addresses the educational needs of youth of14 fenders who are in alternative programs (such as boot

15 camps); and

16 (7) describes how students will be selected so that

17 only youth offenders eligible under subsection (f) will

18 be enrolled in postsecondary programs.

19 (e) PROGRAM REQUIREMENTS.—Each State correc20 tional education agency receiving a grant under this section

21 shall—

22 (1) integrate activities carried out under the

23 grant with the objectives and activities of the school24 to-work programs of such State, including—
466

HR 6 EAS

1 (A) work experience or apprenticeship pro2 grams;

3 (B) transitional worksite job training for

4 vocational education students that is related to

5 the occupational goals of such students and close6 ly linked to classroom and laboratory instruc7 tion;

8 (C) placement services in occupations that

9 the students are preparing to enter;

10 (D) employment-based learning programs;

11 and

12 (E) programs that address State and local

13 labor shortages;

14 (2) annually report to the Secretary and the At15 torney General on the results of the evaluations con16 ducted using the methods and performance measures

17 contained in the proposal; and

18 (3) provide to each State for each student eligible

19 under subsection (f) not more than $1,500 annually

20 for tuition, books, and essential materials, and not

21 more than $300 annually for related services such as

22 career development, substance abuse counseling, par23 enting skills training, and health education, for each

24 eligible incarcerated youth.
467

HR 6 EAS

1 (f) STUDENT ELIGIBILITY.—A youth offender shall be

2 eligible for participation in a program receiving a grant

3 under this section if the youth offender—

4 (1) is eligible to be released within 5 years (in5 cluding a youth offender who is eligible for parole

6 within such time); and

7 (2) is 25 years of age or younger.

8 (g) LENGTH OF PARTICIPATION.—A State correctional

9 education agency receiving a grant under this section shall

10 provide educational and related services to each participat11 ing youth offender for a period not to exceed 5 years, 1

12 year of which may be devoted to study in a graduate edu13 cation degree program or to remedial education services for

14 students who have obtained a secondary school diploma.

15 Educational and related services shall start during the pe16 riod of incarceration in prison or prerelease and may con17 tinue during the period of parole.

18 (h) EDUCATION DELIVERY SYSTEMS.—State correc19 tional education agencies and cooperating institutions

20 shall, to the extent practicable, use high-tech applications

21 in developing programs to meet the requirements and goals

22 of this section.

23 (i) ALLOCATION OF FUNDS.—From the amounts ap24 propriated pursuant to subsection (j), the Secretary shall

25 allot to each State an amount that bears the same relation-
468

HR 6 EAS

1 ship to such funds as the total number of students eligible

2 under subsection (f) in such State bears to the total number

3 of such students in all States.

4 (j) AUTHORIZATION OF APPROPRIATIONS.—There are

5 authorized to be appropriated to carry out this section

6 $14,000,000 for fiscal year 1999 and such sums as may be

7 necessary for each of the 4 succeeding fiscal years.

8 PART F—WEB-BASED EDUCATION COMMISSION

9 SEC. 753. SHORT TITLE; DEFINITIONS.

10 (a) IN GENERAL.—This part may be cited as the

11 ‘‘Web-Based Education Commission Act’’.

12 (b) DEFINITIONS.—In this part:

13 (1) COMMISSION.—The term ‘‘Commission’’

14 means the Web-Based Education Commission estab15 lished under section 754.

16 (2) INFORMATION TECHNOLOGY.—The term ‘‘in17 formation technology’’ has the meaning given that

18 term in section 5002 of the Information Technology

19 Management Reform Act of 1996 (110 Stat. 679).

20 (3) STATE.—The term ‘‘State’’ means each of the

21 several States of the United States and the District of

22 Columbia.
469

HR 6 EAS

1 SEC. 754. ESTABLISHMENT OF WEB-BASED EDUCATION

2 COMMISSION.

3 (a) ESTABLISHMENT.—There is established a commis4 sion to be known as the Web-Based Education Commission.

5 (b) MEMBERSHIP.—

6 (1) COMPOSITION.—The Commission shall be

7 composed of 14 members, of which—

8 (A) 3 members shall be appointed by the

9 President, from among individuals representing

10 the Internet technology industry;

11 (B) 3 members shall be appointed by the

12 Secretary, from among individuals with exper13 tise in accreditation, establishing statewide cur14 ricula, and establishing information technology

15 networks pertaining to education curricula;

16 (C) 2 members shall be appointed by the

17 Majority Leader of the Senate;

18 (D) 2 members shall be appointed by the

19 Minority Leader of the Senate;

20 (E) 2 members shall be appointed by the

21 Speaker of the House of Representatives; and

22 (F) 2 members shall be appointed by the

23 Minority Leader of the House of Representatives.

24 (2) DATE.—The appointments of the members of

25 the Commission shall be made not later than 45 days

26 after the date of enactment of this Act.
470

HR 6 EAS

1 (c) PERIOD OF APPOINTMENT; VACANCIES.—Members

2 shall be appointed for the life of the Commission. Any va3 cancy in the Commission shall not affect its powers, but

4 shall be filled in the same manner as the original appoint5 ment.

6 (d) INITIAL MEETING.—No later than 30 days after

7 the date on which all members of the Commission have been

8 appointed, the Commission shall hold its first meeting.

9 (e) MEETINGS.—The Commission shall meet at the call

10 of the Chairperson.

11 (f) QUORUM.—A majority of the members of the Com12 mission shall constitute a quorum, but a lesser number of

13 members may hold hearings.

14 (g) CHAIRPERSON AND VICE CHAIRPERSON.—The

15 Commission shall select a chairperson and vice chairperson

16 from among its members.

17 SEC. 755. DUTIES OF THE COMMISSION.

18 (a) STUDY.—

19 (1) IN GENERAL.—The Commission shall conduct

20 a thorough study to assess the educational software

21 available in retail markets for secondary and post22 secondary students who choose to use such software.

23 (2) PUBLIC HEARINGS.—As part of the study

24 conducted under this subsection, the Commission shall

25 hold public hearings in each region of the United
471

HR 6 EAS

1 States concerning the assessment referred to in para2 graph (1).

3 (3) EXISTING INFORMATION.—To the extent

4 practicable, in carrying out the study under this sub5 section, the Commission shall identify and use exist6 ing information related to the assessment referred to

7 in paragraph (1).

8 (b) REPORT.—Not later than 6 months after the first

9 meeting of the Commission, the Commission shall submit

10 a report to the President and Congress that shall contain

11 a detailed statement of the findings and conclusions of the

12 Commission resulting from the study, together with its rec13 ommendations—

14 (1) for such legislation and administrative ac15 tions as the Commission considers to be appropriate;

16 and

17 (2) regarding the appropriate Federal role in de18 termining quality educational software products.

19 (c) FACILITATION OF EXCHANGE OF INFORMATION.—

20 In carrying out the study under subsection (a), the Commis21 sion shall, to the extent practicable, facilitate the exchange

22 of information concerning the issues that are the subject of

23 the study among—
472

HR 6 EAS

1 (1) officials of the Federal Government, and

2 State governments and political subdivisions of

3 States; and

4 (2) educators from Federal, State, and local in5 stitutions of higher education and secondary schools.

6 SEC. 756. POWERS OF THE COMMISSION.

7 (a) HEARINGS.—The Commission may hold such hear8 ings, sit and act at such times and places, take such testi9 mony, and receive such evidence as the Commission consid10 ers advisable to carry out the purposes of this part.

11 (b) INFORMATION FROM FEDERAL AGENCIES.—The

12 Commission may secure directly from any Federal depart13 ment or agency such information as the Commission con14 siders necessary to carry out the provisions of this part.

15 Upon request of the Chairperson of the Commission, the

16 head of such department or agency shall furnish such infor17 mation to the Commission.

18 (c) POSTAL SERVICES.—The Commission may use the

19 United States mails in the same manner and under the

20 same conditions as other departments and agencies of the

21 Federal Government.

22 (d) GIFTS.—The Commission may accept, use, and

23 dispose of gifts or donations of services or property.
473

HR 6 EAS

1 SEC. 757. COMMISSION PERSONNEL MATTERS.

2 (a) COMPENSATION OF MEMBERS.—Except as pro3 vided in subsection (b), each member of the Commission who

4 is not an officer or employee of the Federal Government

5 shall serve without compensation. All members of the Com6 mission who are officers or employees of the United States

7 shall serve without compensation in addition to that re8 ceived for their services as officers or employees of the

9 United States.

10 (b) TRAVEL EXPENSES.—The members of the Commis11 sion shall be allowed travel expenses, including per diem

12 in lieu of subsistence, at rates authorized for employees of

13 agencies under subchapter I of chapter 57 of title 5, United

14 States Code, while away from their homes or regular places

15 of business in the performance of services for the Commis16 sion.

17 (c) STAFF.—

18 (1) IN GENERAL.—The Chairperson of the Com19 mission may, without regard to the civil service laws

20 and regulations, appoint and terminate an executive

21 director and such other additional personnel as may

22 be necessary to enable the Commission to perform its

23 duties. The employment of an executive director shall

24 be subject to confirmation by the Commission.

25 (2) COMPENSATION.—The Chairperson of the

26 Commission may fix the compensation of the execu-
474

HR 6 EAS

1 tive director and other personnel without regard to

2 the provisions of chapter 51 and subchapter III of

3 chapter 53 of title 5, United States Code, relating to

4 classification of positions and General Schedule pay

5 rates, except that the rate of pay for the executive di6 rector and other personnel may not exceed the rate

7 payable for level V of the Executive Schedule under

8 section 5316 of such title.

9 (d) DETAIL OF GOVERNMENT EMPLOYEES.—Any Fed10 eral Government employee may be detailed to the Commis11 sion without reimbursement, and such detail shall be with12 out interruption or loss of civil service status or privilege.

13 (e) PROCUREMENT OF TEMPORARY AND INTERMIT14 TENT SERVICES.—The Chairperson of the Commission may

15 procure temporary and intermittent services under section

16 3109(b) of title 5, United States Code, at rates for individ17 uals that do not exceed the daily equivalent of the annual

18 rate of basic pay prescribed for level V of the Executive

19 Schedule under section 5316 of such title.

20 SEC. 758. TERMINATION OF THE COMMISSION.

21 The Commission shall terminate on the date that is

22 90 days after the date on which the Commission submits

23 its report under section 755(b).
475

HR 6 EAS

1 SEC. 759. AUTHORIZATION OF APPROPRIATIONS.

2 (a) IN GENERAL.—There are authorized to be appro3 priated $650,000 for fiscal year 1999 to the Commission

4 to carry out this part.

5 (b) AVAILABILITY.—Any sums appropriated under the

6 authorization contained in this section shall remain avail7 able, without fiscal year limitation, until expended.

8 PART G—EDUCATION OF THE DEAF

9 SEC. 761. SHORT TITLE.

10 This part may be cited as the ‘‘Education of the Deaf

11 Amendments of 1998’’.

12 SEC. 762. ELEMENTARY AND SECONDARY EDUCATION PRO13 GRAMS.

14 Section 104(b) of the Education of the Deaf Act of 1986

15 (20 U.S.C. 4034(b)) is amended—

16 (1) in paragraph (1)—

17 (A) in subparagraph (A), by inserting

18 ‘‘and’’ after the semicolon;

19 (B) in subparagraph (B), by striking ‘‘;

20 and’’ and inserting a period; and

21 (C) by striking subparagraph (C);

22 (2) in the matter preceding subparagraph (A) of

23 paragraph (2)—

24 (A) by striking ‘‘paragraph (1)’’ and insert25 ing ‘‘paragraph (1)(B)’’; and
476

HR 6 EAS

1 (B) by striking ‘‘section 618(b)’’ and insert2 ing ‘‘section 618(a)(1)(A)’’;

3 (3) in paragraph (3), by striking ‘‘intermediate

4 educational unit’’ and inserting ‘‘educational service

5 agency’’;

6 (4) in paragraph (4)—

7 (A) in subparagraph (A), by striking ‘‘in8 termediate educational unit’’ and inserting ‘‘edu9 cational service agency’’; and

10 (B) in subparagraph (B), by striking ‘‘in11 termediate educational units’’ and inserting

12 ‘‘educational service agencies’’; and

13 (5) by amending subparagraph (C) to read as

14 follows:

15 ‘‘(C) provide the child a free appropriate

16 public education in accordance with part B of

17 the Individuals with Disabilities Education Act

18 and procedural safeguards in accordance with

19 the following provisions of section 615 of such

20 Act:

21 ‘‘(i) paragraphs (1), and (3) through

22 (6), of subsection (b).

23 ‘‘(ii) Subsections (c) through (g).

24 ‘‘(iii) Subsection (h), except for the

25 matter in paragraph (4) pertaining to
477

HR 6 EAS

1 transmission of findings and decisions to a

2 State advisory panel.

3 ‘‘(iv) Paragraphs (1) and (2) of sub4 section (i).

5 ‘‘(v) Subsection (j)—

6 ‘‘(I) except that such subsection

7 shall not be applicable to a decision by

8 the University to refuse to admit a

9 child; or

10 ‘‘(II) to dismiss a child, except

11 that, before dismissing any child, the

12 University shall give at least 60 days

13 written notice to the child’s parents

14 and to the local educational agency in

15 which the child resides, unless the dis16 missal involves a suspension, expul17 sion, or other change in placement cov18 ered under section 615(k).

19 ‘‘(vi) Subsections (k) through (m).’’.

20 SEC. 763. AGREEMENT WITH GALLAUDET UNIVERSITY.

21 Section 105(a) of the Education of the Deaf Act of

22 1986 (20 U.S.C. 4305(a)) is amended—

23 (1) by striking ‘‘within 1 year after enactment

24 of the Education of the Deaf Act Amendments of
478

HR 6 EAS

1 1992, a new’’ and inserting ‘‘and periodically update,

2 an’’; and

3 (2) by amending the second sentence to read as

4 follows: ‘‘The Secretary or the University shall deter5 mine the necessity for the periodic update described

6 in the preceding sentence.’’.

7 SEC. 764. AGREEMENT FOR THE NATIONAL TECHNICAL IN8 STITUTE FOR THE DEAF.

9 Paragraph (2) of section 112(a) of the Education of

10 the Deaf Act of 1986 (20 U.S.C. 4332(a)) is amended to

11 read as follows:

12 ‘‘(2) The Secretary and the institution of higher edu13 cation with which the Secretary has an agreement under

14 this section—

15 ‘‘(A) shall periodically assess the need for modi16 fication of the agreement; and

17 ‘‘(B) shall periodically update the agreement as

18 determined necessary by the Secretary or the institu19 tion.’’.

20 SEC. 765. DEFINITIONS.

21 Section 201 of the Education of the Deaf Act of 1986

22 (20 U.S.C. 4351) is amended—

23 (1) in paragraph (1)(C), by striking ‘‘Palau (but

24 only until the Compact of Free Association with

25 Palau takes effect),’’; and
479

HR 6 EAS

1 (2) in paragraph (5)—

2 (A) by inserting ‘‘and’’ after ‘‘Virgin Is3 lands,’’; and

4 (B) by striking ‘‘, and Palau (but only

5 until the Compact of Free Association with

6 Palau takes effect)’’.

7 SEC. 766. GIFTS.

8 Subsection (b) of section 203 of the Education of the

9 Deaf Act of 1986 (20 U.S.C. 4353) is amended to read as

10 follows:

11 ‘‘(b) INDEPENDENT FINANCIAL AND COMPLIANCE

12 AUDIT.—

13 ‘‘(1) IN GENERAL.—Gallaudet University shall

14 have an annual independent financial and compli15 ance audit made of the programs and activities of the

16 University, including the national mission and school

17 operations of the elementary and secondary education

18 programs at Gallaudet. The institution of higher edu19 cation with which the Secretary has an agreement

20 under section 112 shall have an annual independent

21 financial and compliance audit made of the programs

22 and activities of such institution of higher education,

23 including NTID, and containing specific schedules

24 and analyses for all NTID funds, as determined by

25 the Secretary.
480

HR 6 EAS

1 ‘‘(2) COMPLIANCE.—As used in paragraph (1),

2 compliance means compliance with sections 102(b),

3 105(b)(4), 112(b)(5), and 203(c), paragraphs (2) and

4 (3) of section 207(b), subsections (b)(2), (b)(3), and

5 (c) through (f), of section 207, and subsections (b) and

6 (c) of section 210.

7 ‘‘(3) SUBMISSION OF AUDITS.—A copy of each

8 audit described in paragraph (1) shall be provided to

9 the Secretary within 15 days of acceptance of the

10 audit by the University or the institution authorized

11 to establish and operate the NTID under section

12 112(a), as the case may be, but not later than Janu13 ary 10 of each year.’’.

14 SEC. 767. REPORTS.

15 Section 204(3) of the Education of the Deaf Act of

16 1986 (20 U.S.C. 4354(3)) is amended—

17 (1) in subparagraph (A), by striking ‘‘The an18 nual’’ and inserting ‘‘A summary of the annual’’; and

19 (2) in subparagraph (B), by striking ‘‘the an20 nual’’ and inserting ‘‘a summary of the annual’’.

21 SEC. 768. MONITORING, EVALUATION, AND REPORTING.

22 Section 205(c) of the Education of the Deaf Act of 1986

23 (20 U.S.C. 4355(c)) is amended by striking ‘‘1993, 1994,

24 1995, 1996, and 1997’’ and inserting ‘‘1998 through 2003’’.
481

HR 6 EAS

1 SEC. 769. INVESTMENTS.

2 Section 207 of the Education of the Deaf Act of 1986

3 (20 U.S.C. 4357) is amended—

4 (1) in subsection (c)(1), by inserting ‘‘the Fed5 eral contribution of’’ after ‘‘shall invest’’;

6 (2) in subsection (d)(3)(A), by striking ‘‘prior’’

7 and inserting ‘‘current’’; and

8 (3) in subsection (h)—

9 (A) in paragraph (1), by striking ‘‘1993

10 through 1997’’ and inserting ‘‘1998 through

11 2003’’; and

12 (B) in paragraph (2), by striking ‘‘1993

13 through 1997’’ and inserting ‘‘1998 through

14 2003’’.

15 SEC. 770. INTERNATIONAL STUDENTS.

16 Section 210(a) of the Education of the Deaf Act of

17 1986 (20 U.S.C. 4359a(a)) is amended by inserting before

18 the period ‘‘, except that in any school year no United

19 States citizen who is qualified to be admitted to the Univer20 sity or NTID and applies for admission to the University

21 or NTID shall be denied admission because of the admission

22 of an international student’’.

23 SEC. 771. RESEARCH PRIORITIES.

24 Section 211 of the Education of the Deaf Act of 1986

25 (20 U.S.C. 4360) is amended to read as follows:
482

HR 6 EAS

1 ‘‘SEC. 211. RESEARCH PRIORITIES.

2 ‘‘(a) RESEARCH PRIORITIES.—Gallaudet University

3 and the National Technical Institute for the Deaf shall each

4 establish and disseminate priorities for their national mis5 sion with respect to deafness related research, development,

6 and demonstration activities, that reflect public input,

7 through a process that includes consumers, constituent

8 groups, and the heads of other federally funded programs.

9 The priorities for the University shall include activities

10 conducted as part of the University’s elementary and sec11 ondary education programs under section 104.

12 ‘‘(b) RESEARCH REPORTS.—The University and

13 NTID shall each prepare and submit an annual research

14 report, to the Secretary, the Committee on Education and

15 the Workforce of the House of Representatives, and the Com16 mittee on Labor and Human Resources of the Senate, not

17 later than January 10 of each year, that shall include—

18 ‘‘(1) a summary of the public input received as

19 part of the establishment and dissemination of prior20 ities required by subsection (a), and the University’s

21 and NTID’s response to the input; and

22 ‘‘(2) a summary description of the research un23 dertaken by the University and NTID, the start and

24 projected end dates for each research project, the pro25 jected cost and source or sources of funding for each
483

HR 6 EAS

1 project, and any products resulting from research

2 completed in the prior fiscal year.’’.

3 SEC. 772. AUTHORIZATION OF APPROPRIATIONS.

4 Title II of the Education of the Deaf Act of 1986 (20

5 U.S.C. 4351 et seq.) is amended by adding at the end the

6 following:

7 ‘‘SEC. 212. AUTHORIZATION OF APPROPRIATIONS.

8 ‘‘(a) GALLAUDET UNIVERSITY.—There are authorized

9 to be appropriated such sums as may be necessary for each

10 of the fiscal years 1998 through 2003 to carry out the provi11 sions of titles I and II, relating to—

12 ‘‘(1) Gallaudet University;

13 ‘‘(2) Kendall Demonstration Elementary School;

14 and

15 ‘‘(3) the Model Secondary School for the Deaf.

16 ‘‘(b) NATIONAL TECHNICAL INSTITUTE FOR THE

17 DEAF.—There are authorized to be appropriated such sums

18 as may be necessary for each of the fiscal years 1998

19 through 2003 to carry out the provisions of titles I and II

20 relating to the National Technical Institute for the Deaf.’’.

21 SEC. 773. COMMISSION ON EDUCATION OF THE DEAF.

22 The Education of the Deaf Act of 1986 (20 U.S.C. 4301

23 et seq.) is amended by adding at the end the following:
484

HR 6 EAS

1 ‘‘TITLE III—COMMISSION ON

2 EDUCATION OF THE DEAF

3 ‘‘SEC. 301. COMMISSION ESTABLISHED.

4 ‘‘(a) ESTABLISHMENT.—

5 ‘‘(1) IN GENERAL.—The Secretary shall establish

6 a Commission on the Education of the Deaf to iden7 tify those education-related factors in the lives of in8 dividuals who are deaf that result in barriers to suc9 cessful postsecondary education experiences and em10 ployment, and those education-related factors in the

11 lives of individuals who are deaf that contribute to

12 successful postsecondary education experiences and

13 employment.

14 ‘‘(2) DEFINITION OF INDIVIDUALS WHO ARE

15 DEAF.—In this title, the term ‘individuals who are

16 deaf’ means all persons with hearing impairments,

17 including those who are hard-of-hearing, those deaf18 ened later in life, and those who are profoundly deaf.

19 ‘‘(b) COMPOSITION.—

20 ‘‘(1) IN GENERAL.—The Commission shall be

21 composed of 13 members appointed by the Secretary

22 from recommendations made by the National Associa23 tion of the Deaf, the American Society for Deaf Chil24 dren, the Alexander Graham Bell Association, the

25 President of Gallaudet, the Vice President of the Na-
485

HR 6 EAS

1 tional Technical Institute for the Deaf, State Schools

2 for the Deaf, projects to train teachers of the deaf

3 funded under section 673(b) of the Individuals with

4 Disabilities Education Act, parent training and in5 formation centers funded under section 682 of such

6 Act, the Regional Centers on Postsecondary Edu7 cation for Individuals who are Deaf funded under sec8 tion 672 of such Act, Self-Help for Hard of Hearing

9 People, and the Cothe Council on Education of the

10 Deaf.

11 ‘‘(2) QUALIFICATIONS.—

12 ‘‘(A) IN GENERAL.—Members of the Com13 mission shall be appointed from among individ14 uals who have broad experience and expertise in

15 deafness, program evaluation, education, reha16 bilitation, and job training generally, which ex17 pertise and experience shall be directly relevant

18 to the issues to be addressed by the Commission.

‘‘(B) DEAF INDIVIDUALS.—At least 1 19 ⁄3 of

20 members of the Commission shall be individuals

21 who are deaf.

22 ‘‘(C) CHAIRPERSON.—The chairperson of

23 the Commission shall be elected by a simple ma24 jority of the Commission.
486

HR 6 EAS

1 ‘‘(D) ASSISTANT SECRETARY.—One member

2 of the Commission shall be the Assistant Sec3 retary for Special Education and Rehabilitative

4 Services.

5 ‘‘(3) DATE.—Members of the Commission shall

6 be appointed not later than 90 days after the date of

7 enactment of the Education of the Deaf Amendments

8 of 1998.

9 ‘‘SEC. 302. DUTIES, REPORT, AND DURATION OF THE COM10 MISSION.

11 ‘‘(a) IDENTIFICATION OF FACTORS.—The Commission

12 shall identify, with respect to individuals who are deaf, fac13 tors that pose barriers to or factors that facilitate—

14 ‘‘(1) educational performance and progress of

15 students who are deaf in high school;

16 ‘‘(2) educational performance and progress of

17 students who are deaf in postsecondary education;

18 ‘‘(3) career exploration and selection;

19 ‘‘(4) job performance and satisfaction in initial

20 postsecondary employment; and

21 ‘‘(5) career advancement and satisfaction.

22 ‘‘(b) REPORT.—The Commission shall report to the

23 President and Congress such interim reports that the Com24 mission deems appropriate, and not later than 18 months

25 after the date of enactment of the Education of the Deaf
487

HR 6 EAS

1 Amendments of 1998, a final report containing the findings

2 of the Commission with respect to the factors identified

3 under subsection (a). The final report shall include rec4 ommendations, including legislative proposals, that the

5 Commission deems advisable.

6 ‘‘(c) TERMINATION.—The Commission shall terminate

7 90 days after the date on which the Commission submits

8 the Commission’s final report described in subsection (b).

9 ‘‘SEC. 303. ADMINISTRATIVE PROVISIONS.

10 ‘‘(a) PERSONNEL.—

11 ‘‘(1) IN GENERAL.—The Commission may ap12 point such personnel, including a staff director, as the

13 Commission deems necessary without regard to the

14 provisions of title 5, United States Code, except that

15 the rate pay for any employee of the Commission may

16 not exceed the rate payable for level V of the Executive

17 Schedule under section 5316 of title 5, United States

18 Code.

19 ‘‘(2) PROCUREMENT OF TEMPORARY AND INTER20 MITTENT SERVICES.—The Chairperson of the Com21 mission may procure temporary and intermittent

22 services under section 3109(b) of title 5, United States

23 Code, at rates for individuals which do not exceed the

24 daily equivalent of the annual rate of basic pay pre-
488

HR 6 EAS

1 scribed for level V of the Executive Schedule under

2 section 5316 of such title.

3 ‘‘(b) HEARINGS; QUORUM.—

4 ‘‘(1) HEARINGS.—The Commission or, with the

5 authorization of the Commission, any committee of

6 the Commission, may, for the purpose of carrying out

7 the provisions of this title, hold such hearings, sit,

8 and act at such times and such places in the United

9 States as the Commission or such committee may

10 deem advisable.

11 ‘‘(2) QUORUM.—Seven members of the Commis12 sion shall constitute a quorum, but 2 or more mem13 bers may conduct hearings.

14 ‘‘(3) HEARINGS AND PUBLIC INPUT.—In con15 ducting hearings and acquiring public input under

16 this title, the Commission may use various tele17 communications media, including teleconferencing,

18 video-conferencing, the Internet, and other media.

19 ‘‘(c) CONSULTATION; INFORMATION AND STATISTICS;

20 AGENCY COOPERATION.—

21 ‘‘(1) IN GENERAL.—In carrying out the Commis22 sion’s duties under this title and to the extent not

23 prohibited by Federal law, the Commission is author24 ized to secure consultation, information, statistics,

25 and cooperation from Federal agencies, entities fund-
489

HR 6 EAS

1 ed by the Federal Government, and other entities the

2 Commission deems advisable.

3 ‘‘(2) SPECIAL RULE.—The Commission is au4 thorized to use, with their consent, the services, per5 sonnel, information, and facilities of other Federal,

6 State, local, and private agencies with or without re7 imbursement.

8 ‘‘SEC. 304. COMPENSATION OF MEMBERS.

9 ‘‘(a) UNITED STATES OFFICER AND EMPLOYEE MEM10 BERS.—Members of the Commission who are officers or full11 time employees of the United States shall serve without com12 pensation in addition to that received for their services as

13 officers or employees of the United States; but may be al14 lowed travel expenses, including per diem in lieu of subsist15 ence, at rates authorized for employees of agencies under

16 subchapter I of chapter 57 of title 5, United States Code,

17 while away from their homes or regular places of business

18 in the performance of services for the Commission.

19 ‘‘(b) PUBLIC MEMBERS.—Members of the Commission

20 who are not officers or full-time employees of the United

21 States shall receive compensation at a rate that does not

22 exceed the daily rate payable for level V of the Executive

23 Schedule under section 5316 of title 5, United States Code,

24 for each day (including travel time) during which such

25 members are engaged in the actual performance of the du-
490

HR 6 EAS

1 ties of the Commission. In addition, such members may be

2 allowed travel expenses, including per diem in lieu of sub3 sistence, at rates authorized for employees of agencies under

4 subchapter I of chapter 57 of title 5, United States Code,

5 while away from their homes or regular places of business

6 in the performance of services for the Commission.

7 ‘‘SEC. 305. AUTHORIZATIONS OF APPROPRIATIONS.

8 ‘‘There is authorized to be appropriated to carry out

9 this title such sums as may be necessary for each of the

10 fiscal years 1999 and 2000.’’.

11 PART H—REPEALS

12 SEC. 781. REPEALS.

13 (a) HIGHER EDUCATION ACT OF 1965.—The following

14 provisions of the Act (20 U.S.C. 1001 et seq.) are repealed:

15 (1) The heading for, sections 701 and 702 of,

16 and parts A, C, D, and E of, title VII (20 U.S.C.

17 1132a, 1132a–1, 1132b et seq., 1132d et seq., 1132f et

18 seq., and 1132i et seq.).

19 (2) Title VIII (20 U.S.C. 1133 et seq.).

20 (3) The heading for, section 901 of, and parts A,

21 B, E, F, and G of, title IX (20 U.S.C. 1134, 1134a

22 et seq., 1134d et seq., 1134r et seq., 20 U.S.C. 1134s

23 et seq., and 1134u et seq.).
491

HR 6 EAS

1 (4) The heading for, subpart 2 of part B of, and

2 parts C, D and E of, title X (20 U.S.C. 1135c et seq.,

3 1135e et seq., 1135f, and 1135g et seq.).

4 (5) The heading for, and part B of, title XI (20

5 U.S.C. 1137 et seq.).

6 (b) HIGHER EDUCATION AMENDMENTS OF 1992.—The

7 following provisions of the Higher Education Amendments

8 of 1992 (Public Law 102–325; 106 Stat 448) are repealed:

9 (1) Parts E, F, and G of title XIII of the Higher

10 Education Amendments of 1992 (25 U.S.C. 3332 et

11 seq., 3351 et seq., 3371) are repealed.

12 (2) Title XIV.

13 (3) Title XV.

14 PART I—MISCELLANEOUS

15 SEC. 791. YEAR 2000 REQUIREMENTS AT THE DEPARTMENT

16 OF EDUCATION.

17 In order to ensure that the processing, delivery, and

18 administration of grant, loan, and work assistance pro19 vided under title IV of the Higher Education Act of 1965

20 is not interrupted due to operational problems related to

21 the inability of computer systems to indicate accurately

22 dates after December 31, 1999, the Secretary shall—

23 (1) take such actions as are necessary to ensure

24 that all internal and external systems, hardware and

25 data exchange infrastructure administered by the De-
492

HR 6 EAS

1 partment of Education that are necessary for the

2 processing, delivery, and administration of the grant,

3 loan, and work assistance are year 2000 compliant,

4 such that there will be no business interruption after

5 December 31, 1999;

6 (2) ensure that the Robert T. Stafford Federal

7 Student Loan Program and the William D. Ford

8 Federal Direct Loan Program are equal in level of

9 priority with respect to addressing, and that resources

10 are managed to provide for successful resolution of,

11 the year 2000 computer problem in both programs by

12 December 31, 1999;

13 (3) work with institutions of higher education,

14 guaranty agencies, third party servicers, and other

15 persons to ensure successful data exchanges necessary

16 for the processing, delivery, and administration of the

17 grant, loan, and work assistance;

18 (4) ensure that the Inspector General of the De19 partment of Education (or an external, independent

20 entity selected by the Inspector General) performs and

21 publishes a risk assessment of the systems and hard22 ware under the Department’s management, that has

23 been reviewed by an independent entity, and make

24 such assessment publicly available not later than 60
493

HR 6 EAS

1 days after the date of enactment of the Higher Edu2 cation Amendments of 1998;

3 (5) not later than June 30, 1999, ensure that the

4 Inspector General (or an external, independent entity

5 selected by the Inspector General) conducts a review

6 of the Department’s Year 2000 compliance for the

7 processing, delivery, and administration systems and

8 data exchange systems for the grant, loan, and work

9 assistance, and submits a report reflecting the results

10 of that review to the Chairperson of the Committee on

11 Labor and Human Resources of the Senate and the

12 Chairperson of the Committee on Education and the

13 Workforce of the House of Representatives;

14 (6) develop a contingency plan to ensure the pro15 grams under title IV of the Higher Education Act of

16 1965 will continue to run uninterrupted in the event

17 of a computer failure after December 31, 1999, which

18 the contingency plan shall include a prioritization of

19 mission critical systems and strategies to allow data

20 partners to transfer data; and

21 (7) alert Congress at the earliest possible time if

22 mission critical deadlines will not be met.

23 SEC. 792. GRANTS TO COMBAT VIOLENT CRIMES AGAINST

24 WOMEN ON CAMPUSES.

25 (a) GRANTS AUTHORIZED.—
494

HR 6 EAS

1 (1) IN GENERAL.—The Attorney General is au2 thorized to make grants to institutions of higher edu3 cation, for use by consortia consisting of campus per4 sonnel, student organizations, campus administrators,

5 security personnel, and regional crisis centers affili6 ated with the institution, to develop and strengthen

7 effective security and investigation strategies to com8 bat violent crimes against women on campuses, and

9 to develop and strengthen victim services in cases in10 volving violent crimes against women on campuses,

11 which may include partnerships with local criminal

12 justice authorities and community-based victim serv13 ices agencies.

14 (2) AWARD BASIS.—The Attorney General shall

15 award grants and contracts under this section on a

16 competitive basis.

17 (3) EQUITABLE PARTICIPATION.—The Attorney

18 General shall make every effort to ensure—

19 (A) the equitable participation of private

20 and public institutions of higher education in

21 the activities assisted under this section; and

22 (B) the equitable geographic distribution of

23 grants under this section among the various re24 gions of the United States.
495

HR 6 EAS

1 (b) USE OF GRANT FUNDS.—Grants funds awarded

2 under this section may be used for the following purposes:

3 (1) To provide personnel, training, technical as4 sistance, data collection, and other equipment with re5 spect to the increased apprehension, investigation,

6 and adjudication of persons committing violent

7 crimes against women on campus.

8 (2) To train campus administrators and campus

9 security personnel to more effectively identify and re10 spond to violent crimes against women on campus,

11 including the crimes of sexual assault, stalking, and

12 domestic violence.

13 (3) To develop, train, or expand campus security

14 personnel and campus administrators with respect to

15 specifically targeting violent crimes against women

16 on campus, including the crimes of sexual assault,

17 stalking, and domestic violence.

18 (4) To develop and implement more effective

19 campus policies, protocols, orders, and services spe20 cifically devoted to prevent, identify, and respond to

21 violent crimes against women on campus, including

22 the crimes of sexual assault, stalking, and domestic

23 violence.

24 (5) To develop, install, or expand data collection

25 and communication systems, including computerized
496

HR 6 EAS

1 systems, linking campus security to the local law en2 forcement for the purpose of identifying and tracking

3 arrests, protection orders, violations of protection or4 ders, prosecutions, and convictions with respect to

5 violent crimes against women on campus, including

6 the crimes of sexual assault, stalking, and domestic

7 violence.

8 (6) To develop, enlarge, or strengthen victim

9 services programs for the campus and to improve de10 livery of victim services on campus.

11 (7) To provide capital improvements on campus

12 to address violent crimes against women on campus,

13 including the crimes of sexual assault, stalking, and

14 domestic violence.

15 (8) To support improved coordination among

16 campus administrators, campus security personnel,

17 and local law enforcement to reduce violent crimes

18 against women on campus.

19 (c) APPLICATIONS.—

20 (1) IN GENERAL.—In order to be eligible to be

21 awarded a grant under this section for any fiscal

22 year, an institution of higher education shall submit

23 an application to the Attorney General at such time

24 and in such manner as the Attorney General shall

25 prescribe.
497

HR 6 EAS

1 (2) CONTENTS.—Each application submitted

2 under paragraph (1) shall—

3 (A) describe the need for grant funds and

4 the plan for implementation for any of the pur5 poses described in subsection (b);

6 (B) describe how the campus authorities

7 shall consult and coordinate with nonprofit, non8 governmental victim services programs, includ9 ing sexual assault and domestic violence victim

10 services programs;

11 (C) describe the characteristics of the popu12 lation being served, including type of campus,

13 demographics of the population, and number of

14 students;

15 (D) provide measurable goals and expected

16 results from the use of the grants funds;

17 (E) provide assurances that the Federal

18 funds made available under this section shall be

19 used to supplement and, to the extent practical,

20 increase the level of funds that would, in the ab21 sence of Federal funds, be made available by the

22 institution for the purposes described in sub23 section (b); and
498

HR 6 EAS

1 (F) include such other information and as2 surances as the Attorney General reasonably de3 termines to be necessary.

4 (d) GRANTEE REPORTING.—Each institution of higher

5 education receiving a grant under this section, upon com6 pletion of the grant period under this section, shall file a

7 performance report with the Attorney General explaining

8 the activities carried out under the grant, together with an

9 assessment of the effectiveness of the activities in achieving

10 the purposes described in subsection (b).

11 (e) DEFINITIONS.—In this section—

12 (1) the term ‘‘domestic violence’’ includes acts or

13 threats of violence, not including acts of self defense,

14 committed by a current or former spouse of the vic15 tim, by a person with whom the victim shares a child

16 in common, by a person who is cohabitating with or

17 has cohabitated with the victim, by a person similarly

18 situated to a spouse of the victim under the domestic

19 or family violence laws of the jurisdiction, or by any

20 other person against a victim who is protected from

21 that person’s acts under the domestic or family vio22 lence laws of the jurisdiction;

23 (2) the term ‘‘sexual assault’’ means any conduct

24 proscribed by chapter 109A of title 18, United States

25 Code, whether or not the conduct occurs in the special
499

HR 6 EAS

1 maritime and territorial jurisdiction of the United

2 States or in a Federal prison, including both assaults

3 committed by offenders who are strangers to the vic4 tim and assaults committed by offenders who are

5 known or related by blood or marriage to the victim;

6 and

7 (3) the term ‘‘victim services’’ means a non8 profit, nongovernmental organization that assists do9 mestic violence or sexual assault victims, including

10 campus women’s centers, rape crisis centers, battered

11 women’s shelters, and other sexual assault or domestic

12 violence programs, including campus counseling sup13 port and victim advocate organizations with domestic

14 violence, stalking, and sexual assault programs,

15 whether or not organized and staffed by students.

16 (f) GENERAL TERMS AND CONDITIONS.—

17 (1) NONMONETARY ASSISTANCE.—In addition to

18 the assistance provided under this section, the Attor19 ney General may request any Federal agency to use

20 the agency’s authorities and the resources granted to

21 the agency under Federal law (including personnel,

22 equipment, supplies, facilities, and managerial, tech23 nical, and advisory services) in support of campus se24 curity, and investigation and victim service efforts.
500

HR 6 EAS

1 (2) REPORTING.—Not later than 180 days after

2 the end of the fiscal year for which grants are award3 ed under this section, the Attorney General shall sub4 mit to the committees of the House of Representatives

5 and the Senate responsible for issues relating to high6 er education and crime, a report that includes—

7 (A) the number of grants, and the amount

8 of funds, distributed under this section;

9 (B) a summary of the purposes for which

10 the grants were provided and an evaluation of

11 the progress made under the grant;

12 (C) a statistical summary of the persons

13 served, detailing the nature of victimization, and

14 providing data on age, sex, race, ethnicity, lan15 guage, disability, relationship to offender, geo16 graphic distribution, and type of campus; and

17 (D) an evaluation of the effectiveness of pro18 grams funded under this section.

19 (3) REGULATIONS OR GUIDELINES.—Not later

20 than 120 days after the date of enactment of this sec21 tion, the Secretary shall publish proposed regulations

22 or guidelines implementing this section. Not later

23 than 180 days after the date of enactment of this sec24 tion, the Attorney General shall publish final regula25 tions or guidelines implementing this section.
501

HR 6 EAS

1 (g) AUTHORIZATION OF APPROPRIATIONS.—For the

2 purpose of carrying out this section, there are authorized

3 to be appropriated $10,000,000 for each of the fiscal years

4 1999 through 2002.

5 SEC. 793. AUTHORITY TO ADMINISTER SUMMER TRAVEL

6 AND WORK PROGRAMS.

7 The Director of the United States Information Agency

8 is authorized to administer summer travel and work pro9 grams without regard to preplacement requirements.

10 SEC. 794. IMPROVING UNITED STATES UNDERSTANDING OF

11 SCIENCE, ENGINEERING, AND TECHNOLOGY

12 IN EAST ASIA.

13 (a) ESTABLISHMENT.—The Director of the National

14 Science Foundation is authorized, beginning in fiscal year

15 2000, to carry out an interdisciplinary program of edu16 cation and research on East Asian science, engineering, and

17 technology. The Director shall carry out the interdiscipli18 nary program in consultation with the Secretary of Edu19 cation.

20 (b) PURPOSES.—The purposes of the program estab21 lished under this section shall be to—

22 (1) increase understanding of East Asian re23 search, and innovation for the creative application of

24 science and technology to the problems of society;
502

HR 6 EAS

1 (2) provide scientists, engineers, technology man2 agers, and students with training in East Asian lan3 guages, and with an understanding of research, tech4 nology, and management of innovation, in East

5 Asian countries;

6 (3) provide program participants with opportu7 nities to be directly involved in scientific and engi8 neering research, and activities related to the manage9 ment of scientific and technological innovation, in

10 East Asia; and

11 (4) create mechanisms for cooperation and part12 nerships among United States industry, universities,

13 colleges, not-for-profit institutions, Federal labora14 tories (within the meaning of section 4(6) of the Ste15 venson-Wydler Technology Innovation Act of 1980 (15

16 U.S.C. 3703(6))), and government, to disseminate the

17 results of the program assisted under this section for

18 the benefit of United States research and innovation.

19 (c) PARTICIPATION BY FEDERAL SCIENTISTS, ENGI20 NEERS, AND MANAGERS.—Scientists, engineers, and man21 agers of science and engineering programs in Federal agen22 cies and the Federal laboratories shall be eligible to partici23 pate in the program assisted under this section on a reim24 bursable basis.
503

HR 6 EAS

1 (d) REQUIREMENT FOR MERIT REVIEW.—Awards

2 made under the program established under this section shall

3 only be made using a competitive, merit-based review proc4 ess.

5 (e) AUTHORIZATION OF APPROPRIATIONS.—There is

6 authorized to be appropriated to carry out this section

7 $10,000,000 for fiscal year 2000.

8 SEC. 795. UNDERGROUND RAILROAD EDUCATIONAL AND

9 CULTURAL PROGRAM.

10 (a) PROGRAM ESTABLISHED.—The Secretary of Edu11 cation, in consultation and cooperation with the Secretary

12 of the Interior, is authorized to make grants to 1 or more

13 nonprofit educational organizations that are established to

14 research, display, interpret, and collect artifacts relating to

15 the history of the Underground Railroad.

16 (b) GRANT AGREEMENT.—Each nonprofit educational

17 organization awarded a grant under this section shall enter

18 into an agreement with the Secretary of Education. Each

19 such agreement shall require the organization—

20 (1) to establish a facility to house, display, and

21 interpret the artifacts related to the history of the Un22 derground Railroad, and to make the interpretive ef23 forts available to institutions of higher education that

24 award a baccalaureate or graduate degree;
504

HR 6 EAS

1 (2) to demonstrate substantial private support

2 for the facility through the implementation of a pub3 lic-private partnership between a State or local public

4 entity and a private entity for the support of the fa5 cility, which private entity shall provide matching

6 funds for the support of the facility in an amount

7 equal to 4 times the amount of the contribution of the

8 State or local public entity, except that not more than

9 20 percent of the matching funds may be provided by

10 the Federal Government;

11 (3) to create an endowment to fund any and all

12 shortfalls in the costs of the on-going operations of the

13 facility;

14 (4) to establish a network of satellite centers

15 throughout the United States to help disseminate in16 formation regarding the Underground Railroad

17 throughout the United States, if such satellite centers

18 raise 80 percent of the funds required to establish the

19 satellite centers from non-Federal public and private

20 sources;

21 (5) to establish the capability to electronically

22 link the facility with other local and regional facili23 ties that have collections and programs which inter24 pret the history of the Underground Railroad; and
505

HR 6 EAS

1 (6) to submit, for each fiscal year for which the

2 organization receives funding under this section, a re3 port to the Secretary of Education that contains—

4 (A) a description of the programs and ac5 tivities supported by the funding;

6 (B) the audited financial statement of the

7 organization for the preceding fiscal year;

8 (C) a plan for the programs and activities

9 to be supported by the funding as the Secretary

10 may require; and

11 (D) an evaluation of the programs and ac12 tivities supported by the funding as the Sec13 retary may require.

14 (c) AUTHORIZATION OF APPROPRIATIONS.—There are

15 authorized to be appropriated to carry out this section

16 $6,000,000 for fiscal year 1999, $6,000,000 for fiscal year

17 2000, $6,000,000 for fiscal year 2001, $3,000,000 for fiscal

18 year 2002, and $3,000,000 for fiscal year 2003.

19 SEC. 796. GNMA GUARANTEE FEE.

20 (a) IN GENERAL.—Section 306(g)(3)(A) of the Na21 tional Housing Act (12 U.S.C. 1721(g)(3)(A)) is amended

22 by striking ‘‘No fee or charge’’ and all that follows through

23 ‘‘States)’’ and inserting ‘‘The Association shall assess and

24 collect a fee in an amount equal to 9 basis points’’.
506

HR 6 EAS

1 (b) EFFECTIVE DATE.—The amendment made by this

2 section shall take effect on October 1, 2002.

3 SEC. 797. PROTECTION OF STUDENT SPEECH AND ASSOCIA4 TION RIGHTS.

5 (a) PROTECTION OF RIGHTS.—It is the sense of Con6 gress that no student attending an institution of higher edu7 cation on a full- or part-time basis should, on the basis

8 of participation in protected speech or protected associa9 tion, be excluded from participation in, be denied the bene10 fits of, or be subjected to discrimination or official sanction

11 under any education program, activity, or division of the

12 institution directly or indirectly receiving financial assist13 ance under the Higher Education Act of 1965, whether or

14 not such program, activity, or division is sponsored or offi15 cially sanctioned by the institution.

16 (b) CONSTRUCTION.—Nothing in this section shall be

17 construed—

18 (1) to discourage the imposition of an official

19 sanction on a student that has willfully participated

20 in the disruption or attempted disruption of a lecture,

21 class, speech, presentation, or performance made or

22 scheduled to be made under the auspices of the insti23 tution of higher education; or

24 (2) to prevent an institution of higher education

25 from taking appropriate and effective action to pre-
507

HR 6 EAS

1 vent violations of State liquor laws, to discourage

2 binge drinking and other alcohol abuse, to protect stu3 dents from sexual harassment including assault and

4 date rape, or to regulate unsanitary or unsafe condi5 tions in any student residence.

6 (c) DEFINITIONS.—For the purposes of this section:

7 (1) OFFICIAL SANCTION.—The term ‘‘official

8 sanction’’—

9 (A) means expulsion, suspension, probation,

10 censure, condemnation, reprimand, or any other

11 disciplinary, coercive, or adverse action taken by

12 an institution of higher education or adminis13 trative unit of the institution; and

14 (B) includes an oral or written warning

15 made by an official of an institution of higher

16 education acting in the official capacity of the

17 official.

18 (2) PROTECTED ASSOCIATION.—The term ‘‘pro19 tected association’’ means the joining, assembling,

20 and residing with others that is protected under the

21 first and 14th amendments to the Constitution, or

22 would be protected if the institution of higher edu23 cation involved were subject to those amendments.

24 (3) PROTECTED SPEECH.—The term ‘‘protected

25 speech’’ means speech that is protected under the first
508

HR 6 EAS

1 and 14th amendments to the Constitution, or would

2 be protected if the institution of higher education in3 volved were subject to those amendments.

4 SEC. 798. BINGE DRINKING ON COLLEGE CAMPUSES.

5 (a) SHORT TITLE.—This section may be cited as the

6 ‘‘Collegiate Initiative To Reduce Binge Drinking’’.

7 (b) FINDINGS.—Congress makes the following findings:

8 (1) Many college president rank alcohol abuse as

9 the number one problem on campus.

10 (2) Alcohol is a factor in the 3 leading causes of

11 death (accidents, homicides, and suicides) for individ12 uals aged 15 through 24.

13 (3) More than any other group, college students

14 tend to consume large numbers of drinks in rapid

15 succession with the intention of becoming drunk.

16 (4) 84 percent of college students report drinking

17 alcohol during the school year, with 44 percent of all

18 college students qualifying as binge drinkers and 19

19 percent of all college students qualifying as frequent

20 binge drinkers.

21 (5) Alcohol is involved in a large percentage of

22 all campus rapes, violent crimes, student suicides,

23 and fraternity hazing accidents.

24 (6) Heavy alcohol consumption on college cam25 puses can result in drunk driving crashes, hos-
509

HR 6 EAS

1 pitalization for alcohol overdoses, trouble with police,

2 injury, missed classes, and academic failure.

3 (7) The secondhand effects of student alcohol con4 sumption range from assault, property damage, and

5 unwanted sexual advances, to interruptions in study

6 or sleep, or having to ‘‘babysit’’ another student who

7 drank too much.

8 (8) Campus binge drinking can also lead to the

9 death of our Nation’s young and promising students.

10 (c) SENSE OF CONGRESS.—It is the sense of Congress

11 that, in an effort to change the culture of alcohol consump12 tion on college campuses, all institutions of higher edu13 cation should carry out the following:

14 (1) The president of the institution should ap15 point a task force consisting of school administrators,

16 faculty, students, Greek system representatives, and

17 others to conduct a full examination of student and

18 academic life at the institution. The task force should

19 make recommendations for a broad range of policy

20 and program changes that would serve to reduce alco21 hol and other drug-related problems. The institution

22 should provide resources to assist the task force in

23 promoting the campus policies and proposed environ24 mental changes that have been identified.
510

HR 6 EAS

1 (2) The institution should provide maximum op2 portunities for students to live in an alcohol-free envi3 ronment and to engage in stimulating, alcohol-free

4 recreational and leisure activities.

5 (3) The institution should enforce a ‘‘zero toler6 ance’’ policy on the illegal consumption of alcohol by

7 students at the institution.

8 (4) The institution should vigorously enforce the

9 institution’s code of disciplinary sanctions for those

10 who violate campus alcohol policies. Students with al11 cohol or other drug-related problems should be referred

12 for appropriate assistance.

13 (5) The institution should adopt a policy of

14 eliminating alcoholic beverage-related sponsorship of

15 on-campus activities. The institution should adopt

16 policies limiting the advertisement and production of

17 alcoholic beverages on campus.

18 (6) The institution should work with the local

19 community, including local businesses, in a ‘‘Town/

20 Gown’’ alliance to encourage responsible policies to21 ward alcohol consumption and to address illegal alco22 hol use by students.
511

HR 6 EAS

1 SEC. 799. SENSE OF THE SENATE REGARDING HIGHER EDU2 CATION.

3 (a) FINDINGS.—The Senate makes the following find4 ings:

5 (1) Higher education must be kept affordable for

6 all families as the number of students attending insti7 tutions of higher education in the 1995–1996 aca8 demic year reached 19,400,000 students at all levels.

9 (2) According to the College Board’s Annual

10 Survey of Colleges, 1997–1998 undergraduate students

11 at United States colleges will pay on average, ap12 proximately 5 percent more for the 1997–1998 aca13 demic year in tuition and fees at 4-year institutions

14 of higher education than the students paid for the

15 1996–1997 academic year, and from 2 to 4 percent

16 more for the 1997–1998 academic year in tuition and

17 fees at 2-year institutions of higher education than

18 the students paid for the 1996–1997 academic year.

19 (3) From academic years 1980–1981 to academic

20 years 1994–1995, tuition at 4-year public colleges

21 and universities increased 234 percent, while median

22 household income rose only 82 percent, and as a re23 sult, families now spend nearly twice as much of their

24 income on college tuition as families did in 1980.
512

HR 6 EAS

1 (4) A college education has become less affordable

2 as undergraduate public school tuition has increased

3 substantially in the years preceding 1998.

4 (5) In the 1997–1998 school year, average under5 graduate tuition and fees—

6 (A) for public 4-year institutions of higher

7 education were $3,111, representing a 97 percent

8 increase from the 1988–1989 school year; and

9 (B) for private 4-year institutions of higher

10 education were $13,664, representing an increase

11 of 71 percent from the 1988–1989 school year.

12 (6) In the 1996–1997 academic year—

13 (A) over $580,000,000 in Federal Supple14 mental Educational Opportunity Grants were

15 disbursed to more than 990,000 students;

16 (B) $760,000,000 in Federal funds sup17 ported more than 700,000 students in the Fed18 eral Work-Study Program; and

19 (C) more than 700,000 students borrowed

20 approximately $940,000,000 in Federal Perkins

21 Loans.

22 (7) In the 1996–1997 academic year, Federal

23 loan programs provided over $30,000,000,000 in fi24 nancial aid to students.
513

HR 6 EAS

1 (8) Student financial aid in the form of loans is

2 disproportionate to the amount of financial aid re3 ceived through grants. In 1980, approximately 40

4 percent of Federal student financial aid was distrib5 uted through loans. In the 1996–1997 academic year,

6 60 percent of Federal, State, and institutional student

7 financial aid was distributed through loans.

8 (9) As the proportion of Federal grants continues

9 to decline, students and families will have to consider

10 alternative ways to finance a college education.

11 (10) In the 1970s, Federal Pell Grants financed

3 12 ⁄4 of the costs at a public 4-year institution of higher

education and 1 13 ⁄3 of the costs at a private 4-year in14 stitution of higher education. In contrast, in the

15 1996–1997 academic year, Federal Pell Grants financed 1 16 ⁄3 of the costs at a 4-year public institution

of higher education and 1 17 ⁄7 of the costs at a private

18 4-year institution of higher education.

19 (11) While student dependence on Federal loans

20 programs has increased, the default rate on those

21 loans has decreased. According to the Department of

22 Education, in fiscal year 1990, the national default

23 rate on federally insured student loans was 22.4 per24 cent. In fiscal year 1994, the national default rate de25 clined to 10.4 percent.
514

HR 6 EAS

1 (12) The National Commission on the Cost of

2 Higher Education concluded in the report of the Na3 tional Commission that Federal student aid grants

4 have not contributed to increases in tuition while the

5 evidence is inconclusive regarding the impact of Fed6 eral student loans on increases in tuition.

7 (b) SENSE OF THE SENATE.—It is the sense of the Sen8 ate that—

9 (1) the cost of tuition at institutions of higher

10 education continues to increase at a rate above the

11 Consumer Price Index, affecting the nearly

12 20,000,000 students at all levels, resulting in an in13 crease in the number of students seeking Federal loans

14 and Federal grants;

15 (2) efforts should be made to address the dis16 proportionate share of Federal student aid in the

17 form of Federal student loans compared to Federal

18 student grants available for students at institutions of

19 higher education; and

20 (3) Federal incentives provided to public and

21 private institutions of higher education may be an ef22 fective way to limit tuition growth.

23 SEC. 799A. SENSE OF CONGRESS REGARDING TEACHER

24 EDUCATION.

25 (a) FINDINGS.—Congress finds that—
515

HR 6 EAS

1 (1) the education of teachers is a university-wide

2 responsibility requiring the integration of subject

3 matter and teacher education course work across fac4 ulties with multiple site-based clinical learning expe5 riences;

6 (2) teachers well prepared in both subject matter

7 and good professional practice are essential to raising

8 the achievement levels of our Nation’s students, espe9 cially in mathematics and the sciences;

10 (3) teacher educators, substantive experts, and

11 kindergarten through grade 12 teachers need to inter12 act with one another through shared experiences that

13 incorporate school-site-based knowledge into the teach14 er preparation curriculum;

15 (4) partnerships between practitioners and aca16 demics working together in all phases of teacher edu17 cation improve the quality of such education and cre18 ate incentives for teachers to pursue excellence in their

19 teaching;

20 (5) individuals may be more likely to choose

21 teaching as a career if more flexible teacher prepara22 tion programs, tailored to the needs and experiences

23 of the individuals, with multiple entry points and

24 pathways into the teaching profession, are made

25 available;
516

HR 6 EAS

1 (6) strong leadership skills of school principals

2 are essential to improving the quality of teaching and

3 academic achievement of all students;

4 (7) collaboration among teacher educators, other

5 university faculty, elementary and secondary schools,

6 and community colleges facilitate, strengthen, and

7 renew all the individuals and entities participating

8 in the collaboration.

9 (b) SENSE OF CONGRESS.—It is the sense of Congress

10 that—

11 (1) Federal programs, including the Federal

12 Work-Study Programs, should encourage students,

13 particularly prospective teachers, to become involved

14 in supervised tutoring and mentoring activities in

15 kindergarten through grade 12 schools;

16 (2) institutions of higher education, kindergarten

17 through grade 12 schools, local educational agencies,

18 States, and the Department of Education should enter

19 into partnerships to identify and prepare promising

20 candidates as future education leaders and to provide

21 continuing professional development opportunities to

22 current principals and other education leaders;

23 (3) options for access to teacher preparation pro24 grams and new avenues to careers in teaching should

25 be expanded to reach professionals seeking second ca-
517

HR 6 EAS

1 reers and individuals whose prior experiences encom2 pass critical subject areas such as mathematics and

3 the sciences;

4 (4) partnerships between institutions of higher

5 education and kindergarten through grade 12 schools

6 should emphasize contacts between faculty and the

7 business community to align expectations for aca8 demic achievement to create a more seamless transi9 tion for students from secondary to postsecondary

10 schools and to the workplace; and

11 (5) Congress should focus on identifying, rep12 licating, and facilitating the expansion of exemplary

13 partnerships between institutions of higher education

14 and kindergarten through grade 12 schools, with par15 ticular emphasis on partnerships targeted toward fos16 tering excellence in kindergarten through grade 12

17 school leadership, attracting and preparing qualified

18 professionals for new careers in teaching, helping

19 teachers incorporate technology into curricula, and

20 aligning the curricula and expectations for student

21 achievement in secondary schools and institutions of

22 higher education, and for the workplace.
518

HR 6 EAS

1 SEC. 799B. LIAISON FOR PROPRIETARY INSTITUTIONS OF

2 HIGHER EDUCATION.

3 Title II of the Department of Education Organization

4 Act (20 U.S.C. 3411 et seq.) is amended by adding at the

5 end the following:

6 ‘‘SEC. 219. LIAISON FOR PROPRIETARY INSTITUTIONS OF

7 HIGHER EDUCATION.

8 ‘‘(a) ESTABLISHMENT.—There shall be in the Depart9 ment a Liaison for Proprietary Institutions of Higher Edu10 cation, who shall be an officer of the Department appointed

11 by the Secretary.

12 ‘‘(b) APPOINTMENT.—The Secretary shall appoint, not

13 later than 6 months after the date of enactment of the High14 er Education Amendments of 1998 a Liaison for Propri15 etary Institutions of Higher Education who shall be a per16 son who—

17 ‘‘(1) has attained a certificate or degree from a

18 proprietary institution of higher education; or

19 ‘‘(2) has been employed in a proprietary institu20 tion setting for not less than 5 years.

21 ‘‘(c) DUTIES.—The Liaison for Proprietary Institu22 tions of Higher Education shall—

23 ‘‘(1) serve as the principal advisor to the Sec24 retary on matters affecting proprietary institutions of

25 higher education;
519

HR 6 EAS

1 ‘‘(2) provide guidance to programs within the

2 Department that involve functions affecting propri3 etary institutions of higher education; and

4 ‘‘(3) work with the Federal Interagency Commit5 tee on Education to improve the coordination of—

6 ‘‘(A) the outreach programs in the numer7 ous Federal departments and agencies that ad8 minister education and job training programs;

9 ‘‘(B) collaborative business and education

10 partnerships; and

11 ‘‘(C) education programs located in, and in12 volving, rural areas.’’.

13 SEC 799C. EXPANSION OF EDUCATIONAL OPPORTUNITIES

14 FOR WELFARE RECIPIENTS.

15 (a) 24 MONTHS OF POSTSECONDARY EDUCATION AND

16 VOCATIONAL EDUCATIONAL TRAINING MADE PERMISSIBLE

17 WORK ACTIVITIES.—Section 407(d)(8) of the Social Secu18 rity Act (42 U.S.C. 607(d)(8)) is amended to read as fol19 lows:

20 ‘‘(8) postsecondary education and vocational

21 educational training (not to exceed 24 months with

22 respect to any individual);’’.

23 (b) MODIFICATIONS TO THE EDUCATIONAL CAP.—

24 (1) REMOVAL OF TEEN PARENTS FROM 30 PER25 CENT LIMITATION.—Section 407(c)(2)(D) of the Social
520

HR 6 EAS

1 Security Act (42 U.S.C. 607(c)(2)(D)) is amended by

2 striking ‘‘, or (if the month is in fiscal year 2000 or

3 thereafter) deemed to be engaged in work for the

4 month by reason of subparagraph (C) of this para5 graph’’.

6 (2) EXTENSION OF CAP TO POSTSECONDARY EDU7 CATION.—Section 407(c)(2)(D) of the Social Security

8 Act (42 U.S.C. 607(c)(2)(D)) is amended by striking

9 ‘‘vocational educational training’’ and inserting

10 ‘‘training described in subsection (d)(8)’’.

11 SEC. 799D. ALCOHOL OR DRUG POSSESSION DISCLOSURE.

12 Nothing in this Act shall be construed to prohibit an

13 institution of postsecondary education from disclosing, to

14 a parent of a student, information regarding violation of

15 any Federal, State, or local laws governing the use or pos16 session of alcohol or drugs, whether or not that information

17 is contained in the student’s education records, if the stu18 dent is under the age of 21.

19 SEC. 799E. RELEASE OF CONDITIONS, COVENANTS, AND RE20 VERSIONARY INTERESTS, GUAM COMMUNITY

21 COLLEGE CONVEYANCE, BARRIGADA, GUAM.

22 (a) RELEASE.—The Secretary of Education shall re23 lease all conditions and covenants that were imposed by the

24 United States, and the reversionary interests that were re25 tained by the United States, as part of the conveyance of
521

HR 6 EAS

1 a parcel of Federal surplus property located in Barrigada,

2 Guam, consisting of approximately 314.28 acres and known

3 as Naval Communications Area Master Station,

4 WESTPAC, parcel IN, which was conveyed to the Guam

5 Community College pursuant to—

6 (1) the quitclaim deed dated June 8, 1990, con7 veying 61.45 acres, between the Secretary, acting

8 through the Administrator for Management Services,

9 and the Guam Community College, acting through its

10 Board of Trustees; and

11 (2) the quitclaim deed dated June 8, 1990, con12 veying 252.83 acres, between the Secretary, acting

13 through the Administrator for Management Services,

14 and the Guam Community College, acting through its

15 Board of Trustees, and the Governor of Guam.

16 (b) CONSIDERATION.—The Secretary shall execute the

17 release of the conditions, covenants, and reversionary inter18 ests under subsection (a) without consideration.

19 (c) INSTRUMENT OF RELEASE.—The Secretary shall

20 execute and file in the appropriate office or offices a deed

21 of release, amended deed, or other appropriate instrument

22 effectuating the release of the conditions, covenants, and re23 versionary interests under subsection (a).
522

HR 6 EAS

1 SEC. 799F. SENSE OF CONGRESS REGARDING GOOD CHAR2 ACTER.

3 (a) FINDINGS.—Congress finds that—

4 (1) the future of our Nation and world will be

5 determined by the young people of today;

6 (2) record levels of youth crime, violence, teenage

7 pregnancy, and substance abuse indicate a growing

8 moral crisis in our society;

9 (3) character development is the long-term proc10 ess of helping young people to know, care about, and

11 act upon such basic values as trustworthiness, respect

12 for self and others, responsibility, fairness, compas13 sion, and citizenship;

14 (4) these values are universal, reaching across

15 cultural and religious differences;

16 (5) a recent poll found that 90 percent of Ameri17 cans support the teaching of core moral and civic val18 ues;

19 (6) parents will always be children’s primary

20 character educators;

21 (7) good moral character is developed best in the

22 context of the family;

23 (8) parents, community leaders, and school offi24 cials are establishing successful partnerships across

25 the Nation to implement character education pro26 grams;
523

HR 6 EAS

1 (9) character education programs also ask par2 ents, faculty, and staff to serve as role models of core

3 values, to provide opportunities for young people to

4 apply these values, and to establish high academic

5 standards that challenge students to set high goals,

6 work to achieve the goals, and persevere in spite of

7 difficulty;

8 (10) the development of virtue and moral char9 acter, those habits of mind, heart, and spirit that help

10 young people to know, desire, and do what is right,

11 has historically been a primary mission of colleges

12 and universities; and

13 (11) the Congress encourages parents, faculty,

14 and staff across the Nation to emphasize character de15 velopment in the home, in the community, in our

16 schools, and in our colleges and universities.

17 (b) SENSE OF CONGRESS.—It is the sense of Congress

18 that Congress should support and encourage character

19 building initiatives in schools across America and urge col20 leges and universities to affirm that the development of

21 character is one of the primary goals of higher education.

Attest:

Secretary.
105TH CONGRESS

2D SESSION H. R. 6

AMENDMENT
HR 6 EAS——15

HR 6 EAS——14HR 6 EAS——13HR 6 EAS——12HR 6 EAS——11HR 6 EAS——10HR 6 EAS——9HR 6 EAS——8HR 6 EAS——7HR 6 EAS——6HR 6 EAS——5HR 6 EAS——4HR 6 EAS——3HR 6 EAS——2
HR 6 EAS——29

HR 6 EAS——28HR 6 EAS——27HR 6 EAS——26HR 6 EAS——25HR 6 EAS——24HR 6 EAS——23HR 6 EAS——22HR 6 EAS——21HR 6 EAS——20HR 6 EAS——19HR 6 EAS——18HR 6 EAS——17HR 6 EAS——16
HR 6 EAS——40

HR 6 EAS——39HR 6 EAS——38HR 6 EAS——37HR 6 EAS——36HR 6 EAS——35HR 6 EAS——34HR 6 EAS——33HR 6 EAS——32HR 6 EAS——31HR 6 EAS——30