(5) To support the professional development of
elected officials at all levels of government.
SEC. 304. ADMINISTRATION.
(a) LEADERSHIP COUNCIL.—
(1) IN GENERAL.—In order to receive a grant
under this title Portland State University shall en-
sure that the Institute operates under the direction
of a Leadership Council (in this title referred to as
the ‘‘Leadership Council’’) that—
‘‘(A) consists of 15 individuals appointed
by the President of Portland State University;
and
‘‘(B) is established in accordance with this
section.
(2) APPOINTMENTS.—Of the individuals ap-
pointed under paragraph (1)(A)—
(A) Portland State University, Willamette
University, the Constitution Project, George
Fox University, Warner Pacific University, and
Oregon Health Sciences University shall each
have a representative;
(B) at least 1 shall represent Mark O.
Hatfield, his family, or a designee thereof;
(C) at least 1 shall have expertise in ele-
mentary and secondary school social sciences or
governmental studies;
(D) at least 2 shall be representative of
business or government and reside outside of
Oregon;
(E) at least 1 shall be an elected official;
and
(F) at least 3 shall be leaders in the pri-
vate sector.
(3) EX-OFFICIO MEMBER.—The Director of the
Mark O. Hatfield School of Government at Portland
State University shall serve as an ex-officio member
of the Leadership Council.
(b) CHAIRPERSON.—
(1) IN GENERAL.—The President of Portland
State University shall designate 1 of the individuals
first appointed to the Leadership Council under sub-
section (a) as the Chairperson of the Leadership
Council. The individual so designated shall serve as
Chairperson for 1 year.
(2) REQUIREMENT.—Upon the expiration of the
term of the Chairperson of the individual designated
as Chairperson under paragraph (1), or the term of
the Chairperson elected under this paragraph, the
members of the Leadership Council shall elect a
Chairperson of the Leadership Council from among
the members of the Leadership Council.
SEC. 305. ENDOWMENT FUND.
(a) MANAGEMENT.—The endowment fund shall be
managed in accordance with the standard endowment poli-
cies established by the Oregon University System.
(b) USE OF INTEREST AND INVESTMENT INCOME.—
Interest and other investment income earned (on or after
the date of enactment of this subsection) from the endow-
ment fund may be used to carry out the duties of the Insti-
tute under section 303.
(c) DISTRIBUTION OF INTEREST AND INVESTMENT
INCOME.—Funds realized from interest and other invest-
ment income earned (on or after the date of enactment
of this subsection) shall be spent by Portland State Uni-
versity in collaboration with Willamette University, George
Fox University, the Constitution Project, Warner Pacific
University, Oregon Health Sciences University, and other
appropriate educational institutions or community-based
organizations. In expending such funds, the Leadership
Council shall encourage programs to establish partner-
ships, to leverage private funds, and to match expendi-
tures from the endowment fund.
SEC. 306. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out
this title $3,000,000.
TITLE IV—PAUL SIMON PUBLIC
POLICY INSTITUTE
SEC. 401. DEFINITIONS.
In this title:
(1) ENDOWMENT
FUND.—The term ‘‘endow-
ment fund’’ means a fund established by the Univer-
sity for the purpose of generating income for the
support of the Institute.
(2) ENDOWMENT
FUND
CORPUS.—The term
‘‘endowment fund corpus’’ means an amount equal
to the grant or grants awarded under this title plus
an amount equal to the matching funds required
under section 402(d).
(3) ENDOWMENT
FUND
INCOME.—The term
‘‘endowment fund income’’ means an amount equal
to the total value of the endowment fund minus the
endowment fund corpus.
(4) INSTITUTE.—The term ‘‘Institute’’ means
the Paul Simon Public Policy Institute described in
section 402.
(5) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Education.
(6) 
UNIVERSITY.—The 
term 
‘‘University’’
means Southern Illinois University at Carbondale,
Illinois.
SEC. 402. PROGRAM AUTHORIZED.
(a) GRANTS.—From the funds appropriated under
section 406, the Secretary is authorized to award a grant
to Southern Illinois University for the establishment of an
endowment fund to support the Paul Simon Public Policy
Institute. The Secretary may enter into agreements with
the University and include in any agreement made pursu-
ant to this title such provisions as are determined nec-
essary by the Secretary to carry out this title.
(b) DUTIES.—In order to receive a grant under this
title, the University shall establish the Institute. The Insti-
tute, in addition to recognizing more than 40 years of pub-
lic service to Illinois, to the Nation, and to the world, shall
engage in research, analysis, debate, and policy rec-
ommendations affecting world hunger, mass media, for-
eign policy, education, and employment.
(c) DEPOSIT INTO ENDOWMENT FUND.—The Uni-
versity shall deposit the proceeds of any grant received
under this section into the endowment fund.
(d) MATCHING FUNDS REQUIREMENT.—The Univer-
sity may receive a grant under this section only if the Uni-
versity has deposited in the endowment fund established
under this title an amount equal to one-third of such grant
and has provided adequate assurances to the Secretary
that the University will administer the endowment fund
in accordance with the requirements of this title. The
source of the funds for the University match shall be de-
rived from State, private foundation, corporate, or individ-
ual gifts or bequests, but may not include Federal funds
or funds derived from any other federally supported fund.
(e) DURATION; CORPUS RULE.—The period of any
grant awarded under this section shall not exceed 20
years, and during such period the University shall not
withdraw or expend any of the endowment fund corpus.
Upon expiration of the grant period, the University may
use the endowment fund corpus, plus any endowment fund
income for any educational purpose of the University.
SEC. 403. INVESTMENTS.
(a) IN GENERAL.—The University shall invest the
endowment fund corpus and endowment fund income in
those low-risk instruments and securities in which a regu-
lated insurance company may invest under the laws of the
State of Illinois, such as federally insured bank savings
accounts or comparable interest bearing accounts, certifi-
cates of deposit, money market funds, or obligations of
the United States.
(b) JUDGMENT AND CARE.—The University, in in-
vesting the endowment fund corpus and endowment fund
income, shall exercise the judgment and care, under cir-
cumstances then prevailing, which a person of prudence,
discretion, and intelligence would exercise in the manage-
ment of the person’s own business affairs.
SEC. 404. WITHDRAWALS AND EXPENDITURES.
(a) IN GENERAL.—The University may withdraw and
expend the endowment fund income to defray any ex-
penses necessary to the operation of the Institute, includ-
ing expenses of operations and maintenance, administra-
tion, academic and support personnel, construction and
renovation, community and student services programs,
technical assistance, and research. No endowment fund in-
come or endowment fund corpus may be used for any type
of support of the executive officers of the University or
for any commercial enterprise or endeavor. Except as pro-
vided in subsection (b), the University shall not, in the
aggregate, withdraw or expend more than 50 percent of
the total aggregate endowment fund income earned prior
to the time of withdrawal or expenditure.
(b) SPECIAL RULE.—The Secretary is authorized to
permit the University to withdraw or expend more than
50 percent of the total aggregate endowment fund income
whenever the University demonstrates such withdrawal or
expenditure is necessary because of—
(1) a financial emergency, such as a pending in-
solvency or temporary liquidity problem;
(2) a life-threatening situation occasioned by a
natural disaster or arson; or
(3) another unusual occurrence or exigent cir-
cumstance.
(c) REPAYMENT.—
(1) INCOME.—If the University withdraws or
expends more than the endowment fund income au-
thorized by this section, the University shall repay
the Secretary an amount equal to one-third of the
amount improperly expended (representing the Fed-
eral share thereof).
(2) CORPUS.—Except as provided in section
402(e)—
(A) the University shall not withdraw or
expend any endowment fund corpus; and
(B) if the University withdraws or expends
any endowment fund corpus, the University
shall repay the Secretary an amount equal to
one-third of the amount withdrawn or expended
(representing the Federal share thereof) plus
any endowment fund income earned thereon.
SEC. 405. ENFORCEMENT.
(a) IN GENERAL.—After notice and an opportunity
for a hearing, the Secretary is authorized to terminate a
grant and recover any grant funds awarded under this sec-
tion if the University—
(1) withdraws or expends any endowment fund
corpus, or any endowment fund income in excess of
the amount authorized by section 404, except as
provided in section 402(e);
(2) fails to invest the endowment fund corpus
or endowment fund income in accordance with the
investment requirements described in section 403; or
(3) fails to account properly to the Secretary,
or the General Accounting Office if properly des-
ignated by the Secretary to conduct an audit of
funds made available under this title, pursuant to
such rules and regulations as may be proscribed by
the Comptroller General of the United States, con-
cerning investments and expenditures of the endow-
ment fund corpus or endowment fund income.
(b) TERMINATION.—If the Secretary terminates a
grant under subsection (a), the University shall return to
the Treasury of the United States an amount equal to the
sum of the original grant or grants under this title, plus
any endowment fund income earned thereon. The Sec-
retary may direct the University to take such other appro-
priate measures to remedy any violation of this title and
to protect the financial interest of the United States.
SEC. 406. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out
this title $3,000,000. Funds appropriated under this sec-
tion shall remain available until expended.
Æ