H. R. 6—3
Sec. 489. Program participation agreements.
Sec. 490. Regulatory relief and improvement.
Sec. 490A. Garnishment requirements.
Sec. 490B. Administrative subpoena authority.
Sec. 490C. Advisory Committee on Student Financial Assistance.
Sec. 490D. Meetings and negotiated rulemaking.
Sec. 490E. Year 2000 requirements at the Department of Education.
Sec. 490F. Procedures for cancellations and deferments for eligible disabled veter-
ans.
PART H—PROGRAM INTEGRITY
Sec. 491. State role and responsibilities.
Sec. 492. Accrediting agency recognition.
Sec. 493. Eligibility and certification procedures.
Sec. 494. Program review and data.
Sec. 495. Review of regulations.
TITLE V—DEVELOPING INSTITUTIONS
Sec. 501. Establishment of new title V.
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—GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
Sec. 701. Revision of title VII.
Sec. 702. Repeals.
TITLE VIII—STUDIES, REPORTS, AND RELATED PROGRAMS
PART A—STUDIES
Sec. 801. Study of market mechanisms in Federal student loan programs.
Sec. 802. Study of the feasibility of alternative financial instruments for determin-
ing lender yields.
Sec. 803. Student-related debt study required.
Sec. 804. Study of transfer of credits.
Sec. 805. Study of opportunities for participation in athletics programs.
Sec. 806. Study of the effectiveness of cohort default rates for institutions with few
student loan borrowers.
PART B—ADVANCED PLACEMENT INCENTIVE PROGRAM
Sec. 810. Advanced placement incentive program.
PART C—COMMUNITY SCHOLARSHIP MOBILIZATION
Sec. 811. Short title.
Sec. 812. Findings.
Sec. 813. Definitions.
Sec. 814. Purpose; endowment grant authority.
Sec. 815. Grant agreement and requirements.
Sec. 816. Authorization of appropriations.
PART D—GRANTS TO STATES FOR WORKPLACE AND COMMUNITY TRANSITION
TRAINING FOR INCARCERATED YOUTH OFFENDERS
Sec. 821. Grants to States for workplace and community transition training for in-
carcerated youth offenders.
PART E—GRANTS TO COMBAT VIOLENT CRIMES AGAINST WOMEN ON CAMPUSES
Sec. 826. Grants to combat violent crimes against women on campuses.
Sec. 827. Study of institutional procedures to report sexual assaults.
PART F—IMPROVING UNITED STATES UNDERSTANDING OF SCIENCE, ENGINEERING,
AND TECHNOLOGY IN EAST ASIA
Sec. 831. Improving United States understanding of science, engineering, and tech-
nology in East Asia.
PART G—OLYMPIC SCHOLARSHIPS
Sec. 836. Extension of authorization.
H. R. 6—4
PART H—UNDERGROUND RAILROAD
Sec. 841. Underground Railroad educational and cultural program.
PART I—SUMMER TRAVEL AND WORK PROGRAMS
Sec. 846. Authority to administer summer travel and work programs.
PART J—WEB-BASED EDUCATION COMMISSION
Sec. 851. Short title; definitions.
Sec. 852. Establishment of Web-Based Education Commission.
Sec. 853. Duties of the Commission.
Sec. 854. Powers of the Commission.
Sec. 855. Commission personnel matters.
Sec. 856. Termination of the Commission.
Sec. 857. Authorization of appropriations.
PART K—MISCELLANEOUS
Sec. 861. Education-welfare study.
Sec. 862. Release of conditions, covenants, and reversionary interests, Guam Com-
munity College conveyance, Barrigada, Guam.
Sec. 863. Sense of Congress regarding good character.
Sec. 864. Educational merchandise licensing codes of conduct.
TITLE IX—AMENDMENTS TO OTHER LAWS
PART A—EXTENSION AND REVISION OF INDIAN HIGHER EDUCATION PROGRAMS
Sec. 901. Tribally controlled colleges and universities.
Sec. 902. Reauthorization of Navajo Community College Act.
PART B—EDUCATION OF THE DEAF
Sec. 911. Short title.
Sec. 912. Elementary and secondary education programs.
Sec. 913. Agreement with Gallaudet University.
Sec. 914. Agreement for the National Technical Institute for the Deaf.
Sec. 915. Definitions.
Sec. 916. Gifts.
Sec. 917. Reports.
Sec. 918. Monitoring, evaluation, and reporting.
Sec. 919. Federal endowment programs.
Sec. 920. Scholarship program.
Sec. 921. Oversight and effect of agreements.
Sec. 922. International students.
Sec. 923. Research priorities.
Sec. 924. National Study on the Education of the Deaf.
Sec. 925. Authorization of appropriations.
PART C—UNITED STATES INSTITUTE OF PEACE
Sec. 931. Authorities of the United States Institute of Peace.
PART D—VOLUNTARY RETIREMENT INCENTIVE PLANS
Sec. 941. Voluntary retirement incentive plans.
PART E—GENERAL EDUCATION PROVISIONS ACT AMENDMENT
Sec. 951. Amendment to Family Educational Rights and Privacy Act of 1974.
Sec. 952. Alcohol or drug possession disclosure.
PART F—LIAISON FOR PROPRIETARY INSTITUTIONS OF HIGHER EDUCATION
Sec. 961. Liaison for proprietary institutions of higher education.
PART G—AMENDMENTS TO OTHER STATUTES
Sec. 971. Nondischareability of certain claims for educational benefits provided to
obtain higher education.
Sec. 972. GNMA guarantee fee.
PART H—REPEALS
Sec. 981. Repeals.
Sec. 982. Repeals of previous higher education amendments provisions.
SEC. 2. REFERENCES.
Except as otherwise expressly provided, whenever in this Act
an amendment or repeal is expressed in terms of an amendment
H. R. 6—5
to, or repeal of, a section or other provision, the reference shall
be considered to be made to a section or other provision of the
Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).
SEC. 3. GENERAL EFFECTIVE DATE.
Except as otherwise provided in this Act or the amendments
made by this Act, the amendments made by this Act shall take
effect on October 1, 1998.
TITLE I—GENERAL PROVISIONS
SEC. 101. REVISION OF TITLE I.
(a) GENERAL PROVISIONS.—Title I (20 U.S.C. 1001 et seq.) is
amended to read as follows:
‘‘TITLE I—GENERAL PROVISIONS
‘‘PART A—DEFINITIONS
‘‘SEC. 101. GENERAL DEFINITION OF INSTITUTION OF HIGHER EDU-
CATION.
‘‘(a) INSTITUTION OF HIGHER EDUCATION.—For purposes of this
Act, other than title IV, the term ‘institution of higher education’
means an educational institution in any State that—
‘‘(1) admits as regular students only persons having a cer-
tificate of graduation from a school providing secondary edu-
cation, or the recognized equivalent of such a certificate;
‘‘(2) is legally authorized within such State to provide a
program of education beyond secondary education;
‘‘(3) provides an educational program for which the institu-
tion awards a bachelor’s degree or provides not less than a
2-year program that is acceptable for full credit toward such
a degree;
‘‘(4) is a public or other nonprofit institution; and
‘‘(5) is accredited by a nationally recognized accrediting
agency or association, or if not so accredited, is an institution
that has been granted preaccreditation status by such an
agency or association that has been recognized by the Secretary
for the granting of preaccreditation status, and the Secretary
has determined that there is satisfactory assurance that the
institution will meet the accreditation standards of such an
agency or association within a reasonable time.
‘‘(b) ADDITIONAL INSTITUTIONS INCLUDED.—For purposes of this
Act, other than title IV, the term ‘institution of higher education’
also includes—
‘‘(1) any school that provides not less than a 1-year program
of training to prepare students for gainful employment in a
recognized occupation and that meets the provision of para-
graphs (1), (2), (4), and (5) of subsection (a); and
‘‘(2) a public or nonprofit private educational institution
in any State that, in lieu of the requirement in subsection
(a)(1), admits as regular students persons who are beyond
the age of compulsory school attendance in the State in which
the institution is located.
‘‘(c) LIST OF ACCREDITING AGENCIES.—For purposes of this sec-
tion and section 102, the Secretary shall publish a list of nationally
H. R. 6—6
recognized accrediting agencies or associations that the Secretary
determines, pursuant to subpart 2 of part H of title IV, to be
reliable authority as to the quality of the education or training
offered.
‘‘SEC. 102. DEFINITION OF INSTITUTION OF HIGHER EDUCATION FOR
PURPOSES OF TITLE IV PROGRAMS.
‘‘(a) DEFINITION OF INSTITUTION OF HIGHER EDUCATION FOR
PURPOSES OF TITLE IV PROGRAMS.—
‘‘(1) INCLUSION OF ADDITIONAL INSTITUTIONS.—Subject to
paragraphs (2) through (4) of this subsection, the term ‘institu-
tion of higher education’ for purposes of title IV includes, in
addition to the institutions covered by the definition in section
101—
‘‘(A) a proprietary institution of higher education (as
defined in subsection (b) of this section);
‘‘(B) a postsecondary vocational institution (as defined
in subsection (c) of this section); and
‘‘(C) only for the purposes of part B of title IV, an
institution outside the United States that is comparable
to an institution of higher education as defined in section
101 and that has been approved by the Secretary for the
purpose of part B of title IV.
‘‘(2) INSTITUTIONS OUTSIDE THE UNITED STATES.—
‘‘(A) IN GENERAL.—For the purpose of qualifying as
an institution under paragraph (1)(C), the Secretary shall
establish criteria by regulation for the approval of institu-
tions outside the United States and for the determination
that such institutions are comparable to an institution
of higher education as defined in section 101. In the case
of a graduate medical or veterinary school outside the
United States, such criteria shall include a requirement
that a student attending such school outside the United
States is ineligible for loans made, insured, or guaranteed
under part B unless—
‘‘(i)(I) at least 60 percent of those enrolled in, and
at least 60 percent of the graduates of, the graduate
medical school outside the United States were not per-
sons described in section 484(a)(5) in the year preced-
ing the year for which a student is seeking a loan
under part B of title IV; and
‘‘(II) at least 60 percent of the individuals who
were students or graduates of the graduate medical
school outside the United States (both nationals of
the United States and others) taking the examinations
administered by the Educational Commission for For-
eign Medical Graduates received a passing score in
the year preceding the year for which a student is
seeking a loan under part B of title IV; or
‘‘(ii) the institution has a clinical training program
that was approved by a State as of January 1, 1992,
or the institution’s students complete their clinical
training at an approved veterinary school located in
the United States.
‘‘(B) ADVISORY PANEL.—
H. R. 6—7
‘‘(i) IN GENERAL.—For the purpose of qualifying
as an institution under paragraph (1)(C) of this sub-
section, the Secretary shall establish an advisory panel
of medical experts that shall—
‘‘(I) evaluate the standards of accreditation
applied to applicant foreign medical schools; and
‘‘(II) determine the comparability of those
standards to standards for accreditation applied
to United States medical schools.
‘‘(ii) SPECIAL RULE.—If the accreditation standards
described in clause (i) are determined not to be com-
parable, the foreign medical school shall be required
to meet the requirements of section 101.
‘‘(C) FAILURE TO RELEASE INFORMATION.—The failure
of an institution outside the United States to provide,
release, or authorize release to the Secretary of such
information as may be required by subparagraph (A) shall
render such institution ineligible for the purpose of part
B of title IV.
‘‘(D) SPECIAL RULE.—If, pursuant to this paragraph,
an institution loses eligibility to participate in the programs
under title IV, then a student enrolled at such institution
may, notwithstanding such loss of eligibility, continue to
be eligible to receive a loan under part B while attending
such institution for the academic year succeeding the aca-
demic year in which such loss of eligibility occurred.
‘‘(3) LIMITATIONS BASED ON COURSE OF STUDY OR ENROLL-
MENT.—An institution shall not be considered to meet the defi-
nition of an institution of higher education in paragraph (1)
if such institution—
‘‘(A) offers more than 50 percent of such institution’s
courses by correspondence, unless the institution is an
institution that meets the definition in section 521(4)(C)
of the Carl D. Perkins Vocational and Applied Technology
Education Act;
‘‘(B) enrolls 50 percent or more of the institution’s
students in correspondence courses, unless the institution
is an institution that meets the definition in such section,
except that the Secretary, at the request of such institution,
may waive the applicability of this subparagraph to such
institution for good cause, as determined by the Secretary
in the case of an institution of higher education that pro-
vides a 2- or 4-year program of instruction (or both) for
which the institution awards an associate or baccalaureate
degree, respectively;
‘‘(C) has a student enrollment in which more than
25 percent of the students are incarcerated, except that
the Secretary may waive the limitation contained in this
subparagraph for a nonprofit institution that provides a
2- or 4-year program of instruction (or both) for which
the institution awards a bachelor’s degree, or an associate’s
degree or a postsecondary diploma, respectively; or
‘‘(D) has a student enrollment in which more than
50 percent of the students do not have a secondary school
diploma or its recognized equivalent, and does not provide
a 2- or 4-year program of instruction (or both) for which
the institution awards a bachelor’s degree or an associate’s
H. R. 6—8
degree, respectively, except that the Secretary may waive
the limitation contained in this subparagraph if a nonprofit
institution demonstrates to the satisfaction of the Secretary
that the institution exceeds such limitation because the
institution serves, through contracts with Federal, State,
or local government agencies, significant numbers of stu-
dents who do not have a secondary school diploma or
its recognized equivalent.
‘‘(4) LIMITATIONS BASED ON MANAGEMENT.—An institution
shall not be considered to meet the definition of an institution
of higher education in paragraph (1) if—
‘‘(A) the institution, or an affiliate of the institution
that has the power, by contract or ownership interest,
to direct or cause the direction of the management or
policies of the institution, has filed for bankruptcy, except
that this paragraph shall not apply to a nonprofit institu-
tion, the primary function of which is to provide health
care educational services (or an affiliate of such an institu-
tion that has the power, by contract or ownership interest,
to direct or cause the direction of the institution’s manage-
ment or policies) that files for bankruptcy under chapter
11 of title 11, United States Code, between July 1, 1998,
and December 1, 1998; or
‘‘(B) the institution, the institution’s owner, or the
institution’s chief executive officer has been convicted of,
or has pled nolo contendere or guilty to, a crime involving
the acquisition, use, or expenditure of funds under title
IV, or has been judicially determined to have committed
fraud involving funds under title IV.
‘‘(5) CERTIFICATION.—The Secretary shall certify an institu-
tion’s qualification as an institution of higher education in
accordance with the requirements of subpart 3 of part H of
title IV.
‘‘(6) LOSS OF ELIGIBILITY.—An institution of higher edu-
cation shall not be considered to meet the definition of an
institution of higher education in paragraph (1) if such institu-
tion is removed from eligibility for funds under title IV as
a result of an action pursuant to part H of title IV.
‘‘(b) PROPRIETARY INSTITUTION OF HIGHER EDUCATION.—
‘‘(1) PRINCIPAL CRITERIA.—For the purpose of this section,
the term ‘proprietary institution of higher education’ means
a school that—
‘‘(A) provides an eligible program of training to prepare
students for gainful employment in a recognized occupation;
‘‘(B) meets the requirements of paragraphs (1) and
(2) of section 101(a);
‘‘(C) does not meet the requirement of paragraph (4)
of section 101(a);
‘‘(D) is accredited by a nationally recognized accrediting
agency or association recognized by the Secretary pursuant
to part H of title IV;
‘‘(E) has been in existence for at least 2 years; and
‘‘(F) has at least 10 percent of the school’s revenues
from sources that are not derived from funds provided
under title IV, as determined in accordance with regula-
tions prescribed by the Secretary.
H. R. 6—9
‘‘(2) ADDITIONAL
INSTITUTIONS.—The term ‘proprietary
institution of higher education’ also includes a proprietary edu-
cational institution in any State that, in lieu of the requirement
in paragraph (1) of section 101(a), admits as regular students
persons who are beyond the age of compulsory school attend-
ance in the State in which the institution is located.
‘‘(c) POSTSECONDARY VOCATIONAL INSTITUTION.—
‘‘(1) PRINCIPAL CRITERIA.—For the purpose of this section,
the term ‘postsecondary vocational institution’ means a school
that—
‘‘(A) provides an eligible program of training to prepare
students for gainful employment in a recognized occupation;
‘‘(B) meets the requirements of paragraphs (1), (2),
(4), and (5) of section 101(a); and
‘‘(C) has been in existence for at least 2 years.
‘‘(2) ADDITIONAL INSTITUTIONS.—The term ‘postsecondary
vocational institution’ also includes an educational institution
in any State that, in lieu of the requirement in paragraph
(1) of section 101(a), admits as regular students persons who
are beyond the age of compulsory school attendance in the
State in which the institution is located.
‘‘SEC. 103. ADDITIONAL DEFINITIONS.
‘‘In this Act:
‘‘(1) COMBINATION
OF
INSTITUTIONS
OF
HIGHER
EDU-
CATION.—The term ‘combination of institutions of higher edu-
cation’ means a group of institutions of higher education that
have entered into a cooperative arrangement for the purpose
of carrying out a common objective, or a public or private
nonprofit agency, organization, or institution designated or cre-
ated by a group of institutions of higher education for the
purpose of carrying out a common objective on the group’s
behalf.
‘‘(2) DEPARTMENT.—The term ‘Department’ means the
Department of Education.
‘‘(3) DISABILITY.—The term ‘disability’ has the same mean-
ing given that term under section 3(2) of the Americans With
Disabilities Act of 1990.
‘‘(4) ELEMENTARY SCHOOL.—The term ‘elementary school’
has the same meaning given that term under section 14101
of the Elementary and Secondary Education Act of 1965.
‘‘(5) GIFTED AND TALENTED.—The term ‘gifted and talented’
has the same meaning given that term under section 14101
of the Elementary and Secondary Education Act of 1965.
‘‘(6) LOCAL
EDUCATIONAL
AGENCY.—The term ‘local edu-
cational agency’ has the same meaning given that term under
section 14101 of the Elementary and Secondary Education Act
of 1965.
‘‘(7) NEW BORROWER.—The term ‘new borrower’ when used
with respect to any date means an individual who on that
date has no outstanding balance of principal or interest owing
on any loan made, insured, or guaranteed under title IV.
‘‘(8) NONPROFIT.—The term ‘nonprofit’ as applied to a
school, agency, organization, or institution means a school,
agency, organization, or institution owned and operated by
one or more nonprofit corporations or associations, no part
H. R. 6—10
of the net earnings of which inures, or may lawfully inure,
to the benefit of any private shareholder or individual.
‘‘(9) SCHOOL OR DEPARTMENT OF DIVINITY.—The term ‘school
or department of divinity’ means an institution, or a department
or a branch of an institution, the program of instruction of
which is designed for the education of students—
‘‘(A) to prepare the students to become ministers of
religion or to enter upon some other religious vocation
(or to provide continuing training for any such vocation);
or
‘‘(B) to prepare the students to teach theological sub-
jects.
‘‘(10) SECONDARY SCHOOL.—The term ‘secondary school’ has
the same meaning given that term under section 14101 of
the Elementary and Secondary Education Act of 1965.
‘‘(11) SECRETARY.—The term ‘Secretary’ means the Sec-
retary of Education.
‘‘(12) SERVICE-LEARNING.—The term ‘service-learning’ has
the same meaning given that term under section 101(23) of
the National and Community Service Act of 1990.
‘‘(13) SPECIAL EDUCATION TEACHER.—The term ‘special edu-
cation teacher’ means teachers who teach children with disabil-
ities as defined in section 602 of the Individuals with Disabil-
ities Education Act.
‘‘(14) STATE EDUCATIONAL AGENCY.—The term ‘State edu-
cational agency’ has the same meaning given that term under
section 14101 of the Elementary and Secondary Education Act
of 1965.
‘‘(15) STATE HIGHER EDUCATION AGENCY.—The term ‘State
higher education agency’ means the officer or agency primarily
responsible for the State supervision of higher education.
‘‘(16) STATE; FREELY ASSOCIATED STATES.—
‘‘(A) STATE.—The term ‘State’ includes, in addition to
the several States of the United States, the Commonwealth
of Puerto Rico, the District of Columbia, Guam, American
Samoa, the United States Virgin Islands, the Common-
wealth of the Northern Mariana Islands, and the Freely
Associated States.
‘‘(B) FREELY
ASSOCIATED
STATES.—The term ‘Freely
Associated States’ means the Republic of the Marshall
Islands, the Federated States of Micronesia, and the Repub-
lic of Palau.
‘‘PART B—ADDITIONAL GENERAL PROVISIONS
‘‘SEC. 111. ANTIDISCRIMINATION.
‘‘(a) IN GENERAL.—Institutions of higher education receiving
Federal financial assistance may not use such financial assistance,
directly or indirectly, to undertake any study or project or fulfill
the terms of any contract containing an express or implied provision
that any person or persons of a particular race, religion, sex, or
national origin be barred from performing such study, project, or
contract, except that nothing in this subsection shall be construed
to prohibit an institution from conducting objective studies or
projects concerning the nature, effects, or prevention of discrimina-
tion, or to have the institution’s curriculum restricted on the subject
of discrimination.
H. R. 6—11
‘‘(b) LIMITATIONS ON STATUTORY CONSTRUCTION.—Nothing in
this Act shall be construed to limit the rights or responsibilities
of any individual under the Americans With Disabilities Act of
1990, the Rehabilitation Act of 1973, or any other law.
‘‘SEC. 112. PROTECTION OF STUDENT SPEECH AND ASSOCIATION
RIGHTS.
‘‘(a) PROTECTION OF RIGHTS.—It is the sense of Congress that
no student attending an institution of higher education on a full-
or part-time basis should, on the basis of participation in protected
speech or protected association, be excluded from participation in,
be denied the benefits of, or be subjected to discrimination or
official sanction under any education program, activity, or division
of the institution directly or indirectly receiving financial assistance
under this Act, whether or not such program, activity, or division
is sponsored or officially sanctioned by the institution.
‘‘(b) CONSTRUCTION.—Nothing in this section shall be con-
strued—
‘‘(1) to discourage the imposition of an official sanction
on a student that has willfully participated in the disruption
or attempted disruption of a lecture, class, speech, presentation,
or performance made or scheduled to be made under the aus-
pices of the institution of higher education; or
‘‘(2) to prevent an institution of higher education from
taking appropriate and effective action to prevent violations
of State liquor laws, to discourage binge drinking and other
alcohol abuse, to protect students from sexual harassment
including assault and date rape, to prevent hazing, or to regu-
late unsanitary or unsafe conditions in any student residence.
‘‘(c) DEFINITIONS.—For the purposes of this section:
‘‘(1) OFFICIAL SANCTION.—The term ‘official sanction’—
‘‘(A) means expulsion, suspension, probation, censure,
condemnation, reprimand, or any other disciplinary, coer-
cive, or adverse action taken by an institution of higher
education or administrative unit of the institution; and
‘‘(B) includes an oral or written warning made by an
official of an institution of higher education acting in the
official capacity of the official.
‘‘(2) PROTECTED ASSOCIATION.—The term ‘protected associa-
tion’ means the joining, assembling, and residing with others
that is protected under the first and 14th amendments to
the Constitution, or would be protected if the institution of
higher education involved were subject to those amendments.
‘‘(3) PROTECTED
SPEECH.—The term ‘protected speech’
means speech that is protected under the first and 14th amend-
ments to the Constitution, or would be protected if the institu-
tion of higher education involved were subject to those amend-
ments.
‘‘SEC. 113. TREATMENT OF TERRITORIES AND TERRITORIAL STUDENT
ASSISTANCE.
‘‘(a) WAIVER AUTHORITY.—The Secretary is required to waive
the eligibility criteria of any postsecondary education program
administered by the Department where such criteria do not take
into account the unique circumstances in Guam, the United States
Virgin Islands, American Samoa, the Commonwealth of the North-
ern Mariana Islands, and the Freely Associated States.
H. R. 6—12
‘‘(b) ELIGIBILITY.—Notwithstanding any other provision of law,
an institution of higher education that is located in any of the
Freely Associated States, rather than in another State, shall be
eligible, if otherwise qualified, for assistance under chapter 1 of
subpart 2 of part A of title IV. This subsection shall cease to
be effective on September 30, 2004.
‘‘SEC. 114. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUAL-
ITY AND INTEGRITY.
‘‘(a) ESTABLISHMENT.—There is established in the Department
a National Advisory Committee on Institutional Quality and Integ-
rity (hereafter in this section referred to as the ‘Committee’), which
shall be composed of 15 members appointed by the Secretary from
among individuals who are representatives of, or knowledgeable
concerning, education and training beyond secondary education,
including representatives of all sectors and types of institutions
of higher education (as defined in section 102), to assess the process
of eligibility and certification of such institutions under title IV
and the provision of financial aid under title IV.
‘‘(b) TERMS
OF MEMBERS.—Terms of office of each member
of the Committee shall be 3 years, except that any member
appointed to fill a vacancy occurring prior to the expiration of
the term for which the member’s predecessor was appointed shall
be appointed for the remainder of such term.
‘‘(c) PUBLIC NOTICE.—The Secretary shall—
‘‘(1) annually publish in the Federal Register a list contain-
ing the name of each member of the Committee and the date
of the expiration of the term of office of the member; and
‘‘(2) publicly solicit nominations for each vacant position
or expiring term of office on the Committee.
‘‘(d) FUNCTIONS.—The Committee shall—
‘‘(1) advise the Secretary with respect to establishment
and enforcement of the standards of accrediting agencies or
associations under subpart 2 of part H of title IV;
‘‘(2) advise the Secretary with respect to the recognition
of a specific accrediting agency or association;
‘‘(3) advise the Secretary with respect to the preparation
and publication of the list of nationally recognized accrediting
agencies and associations;
‘‘(4) develop and recommend to the Secretary standards
and criteria for specific categories of vocational training institu-
tions and institutions of higher education for which there are
no recognized accrediting agencies, associations, or State agen-
cies, in order to establish the eligibility of such institutions
on an interim basis for participation in federally funded pro-
grams;
‘‘(5) advise the Secretary with respect to the eligibility
and certification process for institutions of higher education
under title IV, together with recommendations for improve-
ments in such process;
‘‘(6) advise the Secretary with respect to the relationship
between—
‘‘(A) accreditation of institutions of higher education
and the certification and eligibility of such institutions;
and
‘‘(B) State licensing responsibilities with respect to such
institutions; and
H. R. 6—13
‘‘(7) carry out such other advisory functions relating to
accreditation and institutional eligibility as the Secretary may
prescribe.
‘‘(e) MEETING PROCEDURES.—The Committee shall meet not
less than twice each year at the call of the Chairperson. The
date of, and agenda for, each meeting of the Committee shall
be submitted in advance to the Secretary for approval. A representa-
tive of the Secretary shall be present at all meetings of the Commit-
tee.
‘‘(f ) REPORT.—Not later than November 30 of each year, the
Committee shall make an annual report through the Secretary
to Congress. The annual report shall contain—
‘‘(1) a list of the members of the Committee and their
addresses;
‘‘(2) a list of the functions of the Committee;
‘‘(3) a list of dates and places of each meeting during
the preceding fiscal year; and
‘‘(4) a summary of the activities, findings and recommenda-
tions made by the Committee during the preceding fiscal year.
‘‘(g) TERMINATION.—The Committee shall cease to exist on
September 30, 2004.
‘‘SEC. 115. STUDENT REPRESENTATION.
‘‘The Secretary shall, in appointing individuals to any commis-
sion, committee, board, panel, or other body in connection with
the administration of this Act, include individuals who are, at
the time of appointment, attending an institution of higher edu-
cation.
‘‘SEC. 116. FINANCIAL RESPONSIBILITY OF FOREIGN STUDENTS.
‘‘Nothing in this Act or any other Federal law shall be construed
to prohibit any institution of higher education from requiring a
student who is a foreign national (and not admitted to permanent
residence in the United States) to guarantee the future payment
of tuition and fees to such institution by—
‘‘(1) making advance payment of such tuition and fees;
‘‘(2) making deposits in an escrow account administered
by such institution for such payments; or
‘‘(3) obtaining a bond or other insurance that such pay-
ments will be made.
‘‘SEC. 117. DISCLOSURES OF FOREIGN GIFTS.
‘‘(a) DISCLOSURE REPORT.—Whenever any institution is owned
or controlled by a foreign source or receives a gift from or enters
into a contract with a foreign source, the value of which is $250,000
or more, considered alone or in combination with all other gifts
from or contracts with that foreign source within a calendar year,
the institution shall file a disclosure report with the Secretary
on January 31 or July 31, whichever is sooner.
‘‘(b) CONTENTS
OF REPORT.—Each report to the Secretary
required by this section shall contain the following:
‘‘(1) For gifts received from or contracts entered into with
a foreign source other than a foreign government, the aggregate
dollar amount of such gifts and contracts attributable to a
particular country. The country to which a gift is attributable
is the country of citizenship, or if unknown, the principal resi-
dence for a foreign source who is a natural person, and the
H. R. 6—14
country of incorporation, or if unknown, the principal place
of business, for a foreign source which is a legal entity.
‘‘(2) For gifts received from or contracts entered into with
a foreign government, the aggregate amount of such gifts and
contracts received from each foreign government.
‘‘(3) In the case of an institution which is owned or con-
trolled by a foreign source, the identity of the foreign source,
the date on which the foreign source assumed ownership or
control, and any changes in program or structure resulting
from the change in ownership or control.
‘‘(c) ADDITIONAL DISCLOSURES
FOR RESTRICTED
AND CONDI-
TIONAL GIFTS.—Notwithstanding the provisions of subsection (b),
whenever any institution receives a restricted or conditional gift
or contract from a foreign source, the institution shall disclose
the following:
‘‘(1) For such gifts received from or contracts entered into
with a foreign source other than a foreign government, the
amount, the date, and a description of such conditions or restric-
tions. The report shall also disclose the country of citizenship,
or if unknown, the principal residence for a foreign source
which is a natural person, and the country of incorporation,
or if unknown, the principal place of business for a foreign
source which is a legal entity.
‘‘(2) For gifts received from or contracts entered into with
a foreign government, the amount, the date, a description of
such conditions or restrictions, and the name of the foreign
government.
‘‘(d) RELATION TO OTHER REPORTING REQUIREMENTS.—
‘‘(1) STATE
REQUIREMENTS.—If an institution described
under subsection (a) is within a State which has enacted
requirements for public disclosure of gifts from or contracts
with a foreign source that are substantially similar to the
requirements of this section, a copy of the disclosure report
filed with the State may be filed with the Secretary in lieu
of a report required under subsection (a). The State in which
the institution is located shall provide to the Secretary such
assurances as the Secretary may require to establish that the
institution has met the requirements for public disclosure under
State law if the State report is filed.
‘‘(2) USE OF OTHER FEDERAL REPORTS.—If an institution
receives a gift from, or enters into a contract with, a foreign
source, where any other department, agency, or bureau of the
executive branch requires a report containing requirements
substantially similar to those required under this section, a
copy of the report may be filed with the Secretary in lieu
of a report required under subsection (a).
‘‘(e) PUBLIC INSPECTION.—All disclosure reports required by
this section shall be public records open to inspection and copying
during business hours.
‘‘(f ) ENFORCEMENT.—
‘‘(1) COURT ORDERS.—Whenever it appears that an institu-
tion has failed to comply with the requirements of this section,
including any rule or regulation promulgated under this section,
a civil action may be brought by the Attorney General, at
the request of the Secretary, in an appropriate district court
of the United States, or the appropriate United States court
of any territory or other place subject to the jurisdiction of
H. R. 6—15
the United States, to request such court to compel compliance
with the requirements of this section.
‘‘(2) COSTS.—For knowing or willful failure to comply with
the requirements of this section, including any rule or regula-
tion promulgated thereunder, an institution shall pay to the
Treasury of the United States the full costs to the United
States of obtaining compliance, including all associated costs
of investigation and enforcement.
‘‘(g) REGULATIONS.—The Secretary may promulgate regulations
to carry out this section.
‘‘(h) DEFINITIONS.—For the purpose of this section—
‘‘(1) the term ‘contract’ means any agreement for the
acquisition by purchase, lease, or barter of property or services
by the foreign source, for the direct benefit or use of either
of the parties;
‘‘(2) the term ‘foreign source’ means—
‘‘(A) a foreign government, including an agency of a
foreign government;
‘‘(B) a legal entity, governmental or otherwise, created
solely under the laws of a foreign state or states;
‘‘(C) an individual who is not a citizen or a national
of the United States or a trust territory or protectorate
thereof; and
‘‘(D) an agent, including a subsidiary or affiliate of
a foreign legal entity, acting on behalf of a foreign source;
‘‘(3) the term ‘gift’ means any gift of money or property;
‘‘(4) the term ‘institution’ means any institution, public
or private, or, if a multicampus institution, any single campus
of such institution, in any State, that—
‘‘(A) is legally authorized within such State to provide
a program of education beyond secondary school;
‘‘(B) provides a program for which the institution
awards a bachelor’s degree (or provides not less than a
2-year program which is acceptable for full credit toward
such a degree) or more advanced degrees; and
‘‘(C) is accredited by a nationally recognized accrediting
agency or association and to which institution Federal
financial assistance is extended (directly or indirectly
through another entity or person), or which institution
receives support from the extension of Federal financial
assistance to any of the institution’s subunits; and
‘‘(5) the term ‘restricted or conditional gift or contract’
means any endowment, gift, grant, contract, award, present,
or property of any kind which includes provisions regarding—
‘‘(A) the employment, assignment, or termination of
faculty;
‘‘(B) the establishment of departments, centers,
research or lecture programs, or new faculty positions;
‘‘(C) the selection or admission of students; or
‘‘(D) the award of grants, loans, scholarships, fellow-
ships, or other forms of financial aid restricted to students
of a specified country, religion, sex, ethnic origin, or politi-
cal opinion.
‘‘SEC. 118. APPLICATION OF PEER REVIEW PROCESS.
‘‘All applications submitted under the provisions of this Act
which require peer review shall be read by a panel of readers
H. R. 6—16
composed of individuals selected by the Secretary, which shall
include outside readers who are not employees of the Federal
Government. The Secretary shall ensure that no individual assigned
under this section to review any application has any conflict of
interest with regard to that application which might impair the
impartiality with which that individual conducts the review under
this section.
‘‘SEC. 119. BINGE DRINKING ON COLLEGE CAMPUSES.
‘‘(a) SHORT TITLE.—This section may be cited as the ‘Collegiate
Initiative To Reduce Binge Drinking and Illegal Alcohol Consump-
tion’.
‘‘(b) SENSE OF CONGRESS.—It is the sense of Congress that,
in an effort to change the culture of alcohol consumption on college
campuses, all institutions of higher education should carry out
the following:
‘‘(1) The president of the institution should appoint a task
force consisting of school administrators, faculty, students,
Greek system representatives, and others to conduct a full
examination of student and academic life at the institution.
The task force should make recommendations for a broad range
of policy and program changes that would serve to reduce
alcohol and other drug-related problems. The institution should
provide resources to assist the task force in promoting the
campus policies and proposed environmental changes that have
been identified.
‘‘(2) The institution should provide maximum opportunities
for students to live in an alcohol-free environment and to engage
in stimulating, alcohol-free recreational and leisure activities.
‘‘(3) The institution should enforce a ‘zero tolerance’ policy
on the illegal consumption of alcohol by students at the institu-
tion.
‘‘(4) The institution should vigorously enforce the institu-
tion’s code of disciplinary sanctions for those who violate cam-
pus alcohol policies. Students with alcohol or other drug-related
problems should be referred for assistance, including on-campus
counseling programs if appropriate.
‘‘(5) The institution should adopt a policy to discourage
alcoholic beverage-related sponsorship of on-campus activities.
It should adopt policies limiting the advertisement and pro-
motion of alcoholic beverages on campus.
‘‘(6) The institution should work with the local community,
including local businesses, in a ‘Town/Gown’ alliance to encour-
age responsible policies toward alcohol consumption and to
address illegal alcohol use by students.
‘‘SEC. 120. DRUG AND ALCOHOL ABUSE PREVENTION.
‘‘(a) RESTRICTION ON ELIGIBILITY.—Notwithstanding any other
provision of law, no institution of higher education shall be eligible
to receive funds or any other form of financial assistance under
any Federal program, including participation in any federally
funded or guaranteed student loan program, unless the institution
certifies to the Secretary that the institution has adopted and
has implemented a program to prevent the use of illicit drugs
and the abuse of alcohol by students and employees that, at a
minimum, includes—
‘‘(1) the annual distribution to each student and employee
of—
H. R. 6—17
‘‘(A) standards of conduct that clearly prohibit, at a
minimum, the unlawful possession, use, or distribution of
illicit drugs and alcohol by students and employees on
the institution’s property or as part of any of the institu-
tion’s activities;
‘‘(B) a description of the applicable legal sanctions
under local, State, or Federal law for the unlawful posses-
sion or distribution of illicit drugs and alcohol;
‘‘(C) a description of the health-risks associated with
the use of illicit drugs and the abuse of alcohol;
‘‘(D) a description of any drug or alcohol counseling,
treatment, or rehabilitation or re-entry programs that are
available to employees or students; and
‘‘(E) a clear statement that the institution will impose
sanctions on students and employees (consistent with local,
State, and Federal law), and a description of those sanc-
tions, up to and including expulsion or termination of
employment and referral for prosecution, for violations of
the standards of conduct required by subparagraph (A);
and
‘‘(2) a biennial review by the institution of the institution’s
program to—
‘‘(A) determine the program’s effectiveness and imple-
ment changes to the program if the changes are needed;
and
‘‘(B) ensure that the sanctions required by paragraph
(1)(E) are consistently enforced.
‘‘(b) INFORMATION AVAILABILITY.—Each institution of higher
education that provides the certification required by subsection
(a) shall, upon request, make available to the Secretary and to
the public a copy of each item required by subsection (a)(1) as
well as the results of the biennial review required by subsection
(a)(2).
‘‘(c) REGULATIONS.—
‘‘(1) IN GENERAL.—The Secretary shall publish regulations
to implement and enforce the provisions of this section, includ-
ing regulations that provide for—
‘‘(A) the periodic review of a representative sample
of programs required by subsection (a); and
‘‘(B) a range of responses and sanctions for institutions
of higher education that fail to implement their programs
or to consistently enforce their sanctions, including
information and technical assistance, the development of
a compliance agreement, and the termination of any form
of Federal financial assistance.
‘‘(2) REHABILITATION PROGRAM.—The sanctions required by
subsection (a)(1)(E) may include the completion of an appro-
priate rehabilitation program.
‘‘(d) APPEALS.—Upon determination by the Secretary to termi-
nate financial assistance to any institution of higher education
under this section, the institution may file an appeal with an
administrative law judge before the expiration of the 30-day period
beginning on the date such institution is notified of the decision
to terminate financial assistance under this section. Such judge
shall hold a hearing with respect to such termination of assistance
before the expiration of the 45-day period beginning on the date
that such appeal is filed. Such judge may extend such 45-day
H. R. 6—18
period upon a motion by the institution concerned. The decision
of the judge with respect to such termination shall be considered
to be a final agency action.
‘‘(e) ALCOHOL AND DRUG ABUSE PREVENTION GRANTS.—
‘‘(1) PROGRAM AUTHORITY.—The Secretary may make grants
to institutions of higher education or consortia of such institu-
tions, and enter into contracts with such institutions, consortia,
and other organizations, to develop, implement, operate,
improve, and disseminate programs of prevention, and edu-
cation (including treatment-referral) to reduce and eliminate
the illegal use of drugs and alcohol and the violence associated
with such use. Such grants or contracts may also be used
for the support of a higher education center for alcohol and
drug abuse prevention that will provide training, technical
assistance, evaluation, dissemination, and associated services
and assistance to the higher education community as deter-
mined by the Secretary and institutions of higher education.
‘‘(2) AWARDS.—Grants and contracts shall be awarded
under paragraph (1) on a competitive basis.
‘‘(3) APPLICATIONS.—An institution of higher education, a
consortium of such institutions, or another organization that
desires to receive a grant or contract under paragraph (1)
shall submit an application to the Secretary at such time,
in such manner, and containing or accompanied by such
information as the Secretary may reasonably require by regula-
tion.
‘‘(4) ADDITIONAL REQUIREMENTS.—
‘‘(A) PARTICIPATION.—In awarding grants and contracts
under this subsection the Secretary shall make every effort
to ensure—
‘‘(i) the equitable participation of private and public
institutions of higher education (including community
and junior colleges); and
‘‘(ii) the equitable geographic participation of such
institutions.
‘‘(B) CONSIDERATION.—In awarding grants and con-
tracts under this subsection the Secretary shall give appro-
priate consideration to institutions of higher education with
limited enrollment.
‘‘(5) 
AUTHORIZATION
OF
APPROPRIATIONS.—There 
are
authorized to be appropriated to carry out this subsection
$5,000,000 for fiscal year 1999 and such sums as may be
necessary for each of the 4 succeeding fiscal years.
‘‘(f ) NATIONAL RECOGNITION AWARDS.—
‘‘(1) PURPOSE.—It is the purpose of this subsection to pro-
vide models of innovative and effective alcohol and drug abuse
prevention programs in higher education and to focus national
attention on exemplary alcohol and drug abuse prevention
efforts.
‘‘(2) AWARDS.—
‘‘(A) IN
GENERAL.—The Secretary shall make 5
National Recognition Awards for outstanding alcohol
prevention programs and 5 National Recognition Awards
for outstanding drug abuse prevention programs, on an
annual basis, to institutions of higher education that—
H. R. 6—19
‘‘(i) have developed and implemented innovative
and effective alcohol prevention programs or drug
abuse prevention programs; and
‘‘(ii) with respect to an application for an alcohol
prevention program award, demonstrate in the applica-
tion submitted under paragraph (3) that the institution
has undertaken efforts designed to change the culture
of college drinking consistent with the review criteria
described in paragraph (3)(C)(iii).
‘‘(B) CEREMONY.—The awards shall be made at a cere-
mony in Washington, D.C.
‘‘(C) DOCUMENT.—The Secretary shall publish a docu-
ment describing the alcohol and drug abuse prevention
programs of institutions of higher education that receive
the awards under this subsection and disseminate the docu-
ment nationally to all public and private secondary school
guidance counselors for use by secondary school juniors
and seniors preparing to enter an institution of higher
education. The document shall be disseminated not later
than January 1 of each academic year.
‘‘(D) AMOUNT AND USE.—Each institution of higher edu-
cation selected to receive an award under this subsection
shall receive an award in the amount of $50,000. Such
award shall be used for the maintenance and improvement
of the institution’s outstanding prevention program for the
academic year following the academic year for which the
award is made.
‘‘(3) APPLICATION.—
‘‘(A) IN GENERAL.—Each institution of higher education
desiring an award under this subsection shall submit an
application to the Secretary at such time, in such manner,
and accompanied by such information as the Secretary
may require. Each such application shall contain—
‘‘(i) a clear description of the goals and objectives
of the prevention program of the institution;
‘‘(ii) a description of program activities that focus
on alcohol or drug policy issues, policy development,
modification, or refinement, policy dissemination and
implementation, and policy enforcement;
‘‘(iii) a description of activities that encourage stu-
dent and employee participation and involvement in
activity development and implementation;
‘‘(iv) the objective criteria used to determine the
effectiveness of the methods used in such programs
and the means used to evaluate and improve the pro-
grams’ efforts;
‘‘(v) a description of special initiatives used to
reduce high-risk behavior or increase low-risk behavior;
and
‘‘(vi) a description of coordination and networking
efforts that exist in the community in which the institu-
tion is located for purposes of such programs.
‘‘(B) 
APPLICATION
REVIEW.—The 
Secretary 
shall
appoint a committee to review applications submitted
H. R. 6—20
under this paragraph. The committee may include rep-
resentatives of Federal departments or agencies the pro-
grams of which include alcohol abuse prevention and edu-
cation efforts and drug abuse prevention and education
efforts, directors or heads (or their representatives) of
professional associations that focus on alcohol and drug
abuse prevention efforts, and non-Federal scientists who
have backgrounds in social science evaluation and research
methodology and in education. Decisions of the committee
shall be made directly to the Secretary without review
by any other entity in the Department.
‘‘(C) REVIEW
CRITERIA.—The committee described in
subparagraph (B) shall develop specific review criteria for
reviewing and evaluating applications submitted under this
paragraph. The review criteria shall include—
‘‘(i) measures of the effectiveness of the program
of the institution, that includes changes in the campus
alcohol or other drug environment or the climate and
changes in alcohol or other drug use before and after
the initiation of the program;
‘‘(ii) measures of program institutionalization,
including—
‘‘(I) an assessment of needs of the institution;
‘‘(II) the institution’s alcohol and drug policies,
staff and faculty development activities, drug
prevention criteria, student, faculty, and campus
community involvement; and
‘‘(III) whether the program will be continued
after the cessation of Federal funding; and
‘‘(iii) with respect to an application for an alcohol
prevention program award, criteria for determining
whether the institution has policies in effect that—
‘‘(I) prohibit alcoholic beverage sponsorship of
athletic events, and prohibit alcoholic beverage
advertising inside athletic facilities;
‘‘(II) prohibit alcoholic beverage marketing on
campus, which may include efforts to ban alcohol
advertising in institutional publications or efforts
to prohibit alcohol-related advertisements at cam-
pus events;
‘‘(III) establish or expand upon alcohol-free liv-
ing arrangements for all college students;
‘‘(IV) establish partnerships with community
members and organizations to further alcohol
prevention efforts on campus and the areas
surrounding campus; and
‘‘(V) establish innovative communications pro-
grams involving students and faculty in an effort
to educate students about alcohol-related risks.
‘‘(4) ELIGIBILITY.—In order to be eligible to receive a
National Recognition Award an institution of higher education
shall—
‘‘(A) offer an associate or baccalaureate degree;
‘‘(B) have established an alcohol abuse prevention and
education program or a drug abuse prevention and edu-
cation program;
H. R. 6—21
‘‘(C) nominate itself or be nominated by others, such
as professional associations or student organizations, to
receive the award; and
‘‘(D) not have received an award under this subsection
during the 5 academic years preceding the academic year
for which the determination is made.
‘‘(5) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(A) IN GENERAL.—There is authorized to be appro-
priated to carry out this subsection $750,000 for fiscal
year 1999.
‘‘(B) 
AVAILABILITY.—Funds 
appropriated 
under
subparagraph (A) shall remain available until expended.
‘‘SEC. 121. PRIOR RIGHTS AND OBLIGATIONS.
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) PRE-1987
PARTS
C
AND
D
OF
TITLE
VII.—There are
authorized to be appropriated such sums as may be necessary
for fiscal year 1999 and for each of the 4 succeeding fiscal
years to pay obligations incurred prior to 1987 under parts
C and D of title VII, as such parts were in effect before the
effective date of the Higher Education Amendments of 1992.
‘‘(2) POST-1992 AND PRE-1998 PART C OF TITLE VII.—There
are authorized to be appropriated such sums as may be nec-
essary for fiscal year 1999 and for each of the 4 succeeding
fiscal years to pay obligations incurred prior to the date of
enactment of the Higher Education Amendments of 1998 under
part C of title VII, as such part was in effect during the
period—
‘‘(A) after the effective date of the Higher Education
Amendments of 1992; and
‘‘(B) prior to the date of enactment of the Higher Edu-
cation Amendments of 1998.
‘‘(b) LEGAL RESPONSIBILITIES.—
‘‘(1) PRE-1987 TITLE VII.—All entities with continuing obliga-
tions incurred under parts A, B, C, and D of title VII, as
such parts were in effect before the effective date of the Higher
Education Amendments of 1992, shall be subject to the require-
ments of such part as in effect before the effective date of
the Higher Education Amendments of 1992.
‘‘(2) POST-1992 AND PRE-1998 PART C OF TITLE VII.—All enti-
ties with continuing obligations incurred under part C of title
VII, as such part was in effect during the period—
‘‘(A) after the effective date of the Higher Education
Amendments of 1992; and
‘‘(B) prior to the date of enactment of the Higher Edu-
cation Amendments of 1998,
shall be subject to the requirements of such part as such
part was in effect during such period.
‘‘SEC. 122. RECOVERY OF PAYMENTS.
‘‘(a) PUBLIC BENEFIT.—Congress declares that, if a facility con-
structed with the aid of a grant under part A of title VII as
such part A was in effect prior to the date of enactment of the
Higher Education Amendments of 1998, or part B of such title
as part B was in effect prior to the date of enactment of the
Higher Education Amendments of 1992, is used as an academic
facility for 20 years following completion of such construction, the
public benefit accruing to the United States will equal in value
H. R. 6—22
the amount of the grant. The period of 20 years after completion
of such construction shall therefore be deemed to be the period
of Federal interest in such facility for the purposes of such title
as so in effect.
‘‘(b) RECOVERY UPON CESSATION OF PUBLIC BENEFIT.—If, within
20 years after completion of construction of an academic facility
which has been constructed, in part with a grant under part A
of title VII as such part A was in effect prior to the date of
enactment of the Higher Education Amendments of 1998, or part
B of title VII as such part B was in effect prior to the date
of enactment of the Higher Education Amendments of 1992—
‘‘(1) the applicant under such parts as so in effect (or
the applicant’s successor in title or possession) ceases or fails
to be a public or nonprofit institution; or
‘‘(2) the facility ceases to be used as an academic facility,
or the facility is used as a facility excluded from the term
‘academic facility’ (as such term was defined under title VII,
as so in effect), unless the Secretary determines that there
is good cause for releasing the institution from its obligation,
the United States shall be entitled to recover from such applicant
(or successor) an amount which bears to the value of the facility
at that time (or so much thereof as constituted an approved project
or projects) the same ratio as the amount of Federal grant bore
to the cost of the facility financed with the aid of such grant.
The value shall be determined by agreement of the parties or
by action brought in the United States district court for the district
in which such facility is situated.
‘‘(c) PROHIBITION ON USE FOR RELIGION.—Notwithstanding the
provisions of subsections (a) and (b), no project assisted with funds
under title VII (as in effect prior to the date of enactment of
the Higher Education Amendments of 1998) shall ever be used
for religious worship or a sectarian activity or for a school or
department of divinity.
‘‘PART C—COST OF HIGHER EDUCATION
‘‘SEC. 131. IMPROVEMENTS IN MARKET INFORMATION AND PUBLIC
ACCOUNTABILITY IN HIGHER EDUCATION.
‘‘(a) IMPROVED DATA COLLECTION.—
‘‘(1) DEVELOPMENT OF UNIFORM METHODOLOGY.—The Sec-
retary shall direct the Commissioner of Education Statistics
to convene a series of forums to develop nationally consistent
methodologies for reporting costs incurred by postsecondary
institutions in providing postsecondary education.
‘‘(2) REDESIGN OF DATA SYSTEMS.—On the basis of the meth-
odologies developed pursuant to paragraph (1), the Secretary
shall redesign relevant parts of the postsecondary education
data systems to improve the usefulness and timeliness of the
data collected by such systems.
‘‘(3) INFORMATION TO INSTITUTIONS.—The Commissioner of
Education Statistics shall—
‘‘(A) develop a standard definition for the following
data elements:
‘‘(i) tuition and fees for a full-time undergraduate
student;
H. R. 6—23
‘‘(ii) cost of attendance for a full-time undergradu-
ate student, consistent with the provisions of section
472;
‘‘(iii) average amount of financial assistance
received by an undergraduate student who attends
an institution of higher education, including—
‘‘(I) each type of assistance or benefit described
in section 428(a)(2)(C)(i);
‘‘(II) fellowships; and
‘‘(III) institutional and other assistance; and
‘‘(iv) number of students receiving financial assist-
ance described in each of subclauses (I), (II), and (III)
of clause (iii);
‘‘(B) not later than 90 days after the date of enactment
of the Higher Education Amendments of 1998, report the
definitions to each institution of higher education and
within a reasonable period of time thereafter inform the
Committee on Labor and Human Resources of the Senate
and the Committee on Education and the Workforce of
the House of Representatives of those definitions; and
‘‘(C) collect information regarding the data elements
described in subparagraph (A) with respect to at least
all institutions of higher education participating in pro-
grams under title IV, beginning with the information from
academic year 2000–2001 and annually thereafter.
‘‘(b) DATA DISSEMINATION.—The Secretary shall make available
the data collected pursuant to subsection (a). Such data shall be
available in a form that permits the review and comparison of
the data submissions of individual institutions of higher education.
Such data shall be presented in a form that is easily understandable
and allows parents and students to make informed decisions based
on the costs for typical full-time undergraduate students.
‘‘(c) STUDY.—
‘‘(1) IN GENERAL.—The Commissioner of Education Statis-
tics shall conduct a national study of expenditures at institu-
tions of higher education. Such study shall include information
with respect to—
‘‘(A) the change in tuition and fees compared with
the consumer price index and other appropriate measures
of inflation;
‘‘(B) faculty salaries and benefits;
‘‘(C) administrative salaries, benefits and expenses;
‘‘(D) academic support services;
‘‘(E) research;
‘‘(F) operations and maintenance; and
‘‘(G) institutional expenditures for construction and
technology and the potential cost of replacing instructional
buildings and equipment.
‘‘(2) EVALUATION.—The study shall include an evaluation
of—
‘‘(A) changes over time in the expenditures identified
in paragraph (1);
‘‘(B) the relationship of the expenditures identified in
paragraph (1) to college costs; and
‘‘(C) the extent to which increases in institutional
financial aid and tuition discounting practices affect tuition
increases, including the demographics of students receiving
H. R. 6—24
such discounts, the extent to which financial aid is provided
to students with limited need in order to attract a student
to a particular institution, and the extent to which Federal
financial aid, including loan aid, has been used to offset
the costs of such practices.
‘‘(3) FINAL REPORT.—The Commissioner of Education Statis-
tics shall submit a report regarding the findings of the study
required by paragraph (1) to the appropriate committees of
Congress not later than September 30, 2002.
‘‘(4) HIGHER EDUCATION MARKET BASKET.—The Bureau of
Labor Statistics, in consultation with the Commissioner of Edu-
cation Statistics, shall develop a higher education market bas-
ket that identifies the items that comprise the costs of higher
education. The Bureau of Labor Statistics shall provide a report
on the market basket to the Committee on Labor and Human
Resources of the Senate and the Committee on Education and
the Workforce of the House of Representatives not later than
September 30, 2002.
‘‘(5) FINES.—In addition to actions authorized in section
487(c), the Secretary may impose a fine in an amount not
to exceed $25,000 on an institution of higher education for
failing to provide the information described in paragraph (1)
in a timely and accurate manner, or for failing to otherwise
cooperate with the National Center for Education Statistics
regarding efforts to obtain data on the cost of higher education
under this section and pursuant to the program participation
agreement entered into under section 487.
‘‘(d) STUDENT AID RECIPIENT SURVEY.—(1) The Secretary shall
survey student aid recipients on a regular cycle, but not less than
once every 3 years—
‘‘(A) to identify the population of students receiving Federal
student aid;
‘‘(B) to determine the income distribution and other socio-
economic characteristics of federally aided students;
‘‘(C) to describe the combinations of aid from State, Federal,
and private sources received by students from all income
groups;
‘‘(D) to describe the debt burden of loan recipients and
their capacity to repay their education debts; and
‘‘(E) to disseminate such information in both published
and machine readable form.
‘‘(2) The survey shall be representative of full-time and part-
time, undergraduate, graduate, and professional and current and
former students in all types of institutions, and should be designed
and administered in consultation with the Congress and the post-
secondary education community.
‘‘PART D—ADMINISTRATIVE PROVISIONS FOR
DELIVERY OF STUDENT FINANCIAL ASSIST-
ANCE
‘‘SEC. 141. PERFORMANCE-BASED ORGANIZATION FOR THE DELIVERY
OF FEDERAL STUDENT FINANCIAL ASSISTANCE.
‘‘(a) ESTABLISHMENT AND PURPOSE.—
‘‘(1) ESTABLISHMENT.—There is established in the Depart-
ment a Performance-Based Organization (hereafter referred to
H. R. 6—25
as the ‘PBO’) which shall be a discrete management unit
responsible for managing the operational functions supporting
the programs authorized under title IV of this Act, as specified
in subsection (b).
‘‘(2) PURPOSES.—The purposes of the PBO are—
‘‘(A) to improve service to students and other partici-
pants in the student financial assistance programs author-
ized under title IV, including making those programs more
understandable to students and their parents;
‘‘(B) to reduce the costs of administering those pro-
grams;
‘‘(C) to increase the accountability of the officials
responsible for administering the operational aspects of
these programs;
‘‘(D) to provide greater flexibility in the management
of the operational functions of the Federal student financial
assistance programs;
‘‘(E) to integrate the information systems supporting
the Federal student financial assistance programs;
‘‘(F) to implement an open, common, integrated system
for the delivery of student financial assistance under title
IV; and
‘‘(G) to develop and maintain a student financial assist-
ance system that contains complete, accurate, and timely
data to ensure program integrity.
‘‘(b) GENERAL AUTHORITY.—
‘‘(1) AUTHORITY OF SECRETARY.—Notwithstanding any other
provision of this part, the Secretary shall maintain responsibil-
ity for the development and promulgation of policy and regula-
tions relating to the programs of student financial assistance
under title IV. In the exercise of its functions, the PBO shall
be subject to the direction of the Secretary. The Secretary
shall—
‘‘(A) request the advice of, and work in cooperation
with, the Chief Operating Officer in developing regulations,
policies, administrative guidance, or procedures affecting
the information systems administered by the PBO, and
other functions performed by the PBO;
‘‘(B) request cost estimates from the Chief Operating
Officer for system changes required by specific policies
proposed by the Secretary; and
‘‘(C) assist the Chief Operating Officer in identifying
goals for the administration and modernization of the deliv-
ery system for student financial assistance under title IV.
‘‘(2) PBO FUNCTIONS.—Subject to paragraph (1), the PBO
shall be responsible for administration of the information and
financial systems that support student financial assistance pro-
grams authorized under this title, excluding the development
of policy relating to such programs but including the following:
‘‘(A) The administrative, accounting, and financial
management functions of the delivery system for Federal
student assistance, including—
‘‘(i) the collection, processing and transmission of
applicant data to students, institutions and authorized
third parties, as provided for in section 483;
H. R. 6—26
‘‘(ii) design and technical specifications for software
development and systems supporting the delivery of
student financial assistance under title IV;
‘‘(iii) all software and hardware acquisitions and
all information technology contracts related to the
delivery and management of student financial assist-
ance under title IV;
‘‘(iv) all aspects of contracting for the information
and financial systems supporting student financial
assistance programs under this title; and
‘‘(v) providing all customer service, training, and
user support related to systems that support those
programs.
‘‘(B) Annual development of a budget for the operations
and services of the PBO, in consultation with the Secretary,
and for consideration and inclusion in the Department’s
annual budget submission.
‘‘(3) ADDITIONAL FUNCTIONS.—The Secretary may allocate
to the PBO such additional functions as the Secretary and
the Chief Operating Officer determine are necessary or appro-
priate to achieve the purposes of the PBO.
‘‘(4) INDEPENDENCE.—Subject to paragraph (1), in carrying
out its functions, the PBO shall exercise independent control
of its budget allocations and expenditures, personnel decisions
and processes, procurements, and other administrative and
management functions.
‘‘(5) AUDITS AND REVIEW.—The PBO shall be subject to
the usual and customary Federal audit procedures and to
review by the Inspector General of the Department.
‘‘(6) CHANGES.—
‘‘(A) IN GENERAL.—The Secretary and the Chief Operat-
ing Officer shall consult concerning the effects of policy,
market, or other changes on the ability of the PBO to
achieve the goals and objectives established in the perform-
ance plan described in subsection (c).
‘‘(B) REVISIONS TO AGREEMENT.—The Secretary and the
Chief Operating Officer may revise the annual performance
agreement described in subsection (d)(4) in light of policy,
market, or other changes that occur after the Secretary
and the Chief Operating Officer enter into the agreement.
‘‘(c) PERFORMANCE PLAN AND REPORT.—
‘‘(1) PERFORMANCE PLAN.—
‘‘(A) IN GENERAL.—Each year, the Secretary and Chief
Operating Officer shall agree on, and make available to
the public, a performance plan for the PBO for the succeed-
ing 5 years that establishes measurable goals and objectives
for the organization.
‘‘(B) CONSULTATION.—In developing the 5-year perform-
ance plan and any revision to the plan, the Secretary
and the Chief Operating Officer shall consult with students,
institutions of higher education, Congress, lenders, the
Advisory Committee on Student Financial Assistance, and
other interested parties not less than 30 days prior to
the implementation of the performance plan or revision.
‘‘(C) AREAS.—The plan shall include a concise state-
ment of the goals for a modernized system for the delivery
of student financial assistance under title IV and identify
H. R. 6—27
action steps necessary to achieve such goals. The plan
shall address the PBO’s responsibilities in the following
areas:
‘‘(i) IMPROVING SERVICE.—Improving service to stu-
dents and other participants in student financial aid
programs authorized under this title, including making
those programs more understandable to students and
their parents.
‘‘(ii) REDUCING
COSTS.—Reducing the costs of
administering those programs.
‘‘(iii) IMPROVEMENT AND INTEGRATION OF SUPPORT
SYSTEMS.—Improving and integrating the information
and delivery systems that support those programs.
‘‘(iv) 
DELIVERY
AND
INFORMATION
SYSTEM.—
Developing an open, common, and integrated delivery
and information system for programs authorized under
this title.
‘‘(v) OTHER AREAS.—Any other areas identified by
the Secretary.
‘‘(2) ANNUAL
REPORT.—Each year, the Chief Operating
Officer shall prepare and submit to Congress, through the
Secretary, an annual report on the performance of the PBO,
including an evaluation of the extent to which the PBO met
the goals and objectives contained in the 5-year performance
plan described in paragraph (1) for the preceding year. The
annual report shall include the following:
‘‘(A) An independent financial audit of the expenditures
of both the PBO and programs administered by the PBO.
‘‘(B) 
Financial 
and 
performance 
requirements
applicable to the PBO under the Chief Financial Officer
Act of 1990 and the Government Performance and Results
Act of 1993.
‘‘(C) The results achieved by the PBO during the year
relative to the goals established in the organization’s
performance plan.
‘‘(D) The evaluation rating of the performance of the
Chief Operating Officer and senior managers under sub-
sections (d)(4) and (e)(2), including the amounts of bonus
compensation awarded to these individuals.
‘‘(E) Recommendations for legislative and regulatory
changes to improve service to students and their families,
and to improve program efficiency and integrity.
‘‘(F) Other such information as the Director of the
Office of Management and Budget shall prescribe for
performance based organizations.
‘‘(3) 
CONSULTATION
WITH
STAKEHOLDERS.—The 
Chief
Operating Officer, in preparing the report described in para-
graph (2), shall establish appropriate means to consult with
borrowers, institutions, lenders, guaranty agencies, secondary
markets, and others involved in the delivery system of student
aid under this title—
‘‘(A) regarding the degree of satisfaction with the
delivery system; and
‘‘(B) to seek suggestions on means to improve the
delivery system.
‘‘(d) CHIEF OPERATING OFFICER.—
H. R. 6—28
‘‘(1) APPOINTMENT.—The management of the PBO shall
be vested in a Chief Operating Officer who shall be appointed
by the Secretary to a term of not less than 3 and not more
than 5 years, and compensated without regard to chapters
33, 51, and 53 of title 5, United States Code. The Secretary
shall appoint the Chief Operating Officer within 6 months
after the date of enactment of the Higher Education Amend-
ments of 1998. The appointment shall be made on the basis
of demonstrated management ability and expertise in informa-
tion technology, including experience with financial systems,
and without regard to political affiliation or activity.
‘‘(2) REAPPOINTMENT.—The Secretary may reappoint the
Chief Operating Officer to subsequent terms of not less than
3 and not more than 5 years, so long as the performance
of the Chief Operating Officer, as set forth in the performance
agreement described in paragraph (4), is satisfactory.
‘‘(3) REMOVAL.—The Chief Operating Officer may be
removed by—
‘‘(A) the President; or
‘‘(B) the Secretary, for misconduct or failure to meet
performance goals set forth in the performance agreement
in paragraph (4).
The President or Secretary shall communicate the reasons for
any such removal to the appropriate committees of Congress.
‘‘(4) PERFORMANCE AGREEMENT.—
‘‘(A) IN GENERAL.—Each year, the Secretary and the
Chief Operating Officer shall enter into an annual perform-
ance agreement, that shall set forth measurable organiza-
tion and individual goals for the Chief Operating Officer.
‘‘(B) TRANSMITTAL.—The final agreement, and any revi-
sion to the final agreement, shall be transmitted to the
Committee on Education and the Workforce of the House
of Representatives and the Committee on Labor and
Human Resources of the Senate, and made publicly avail-
able.
‘‘(5) COMPENSATION.—
‘‘(A) IN
GENERAL.—The Chief Operating Officer is
authorized to be paid at an annual rate of basic pay not
to exceed the maximum rate of basic pay for the Senior
Executive Service under section 5382 of title 5, United
States Code, including any applicable locality-based com-
parability payment that may be authorized under section
5304(h)(2)(B) of such title. The compensation of the Chief
Operating Officer shall be considered for purposes of section
207(c)(2)(A) of title 18, United States Code, to be the
equivalent of that described under clause (ii) of section
207(c)(2)(A) of such title.
‘‘(B) BONUS.—In addition, the Chief Operating Officer
may receive a bonus in an amount that does not exceed
50 percent of such annual rate of basic pay, based upon
the Secretary’s evaluation of the Chief Operating Officer’s
performance in relation to the goals set forth in the
performance agreement described in paragraph (2).
‘‘(C) PAYMENT.—Payment of a bonus under this
subparagraph (B) may be made to the Chief Operating
Officer only to the extent that such payment does not
H. R. 6—29
cause the Chief Operating Officer’s total aggregate com-
pensation in a calendar year to equal or exceed the amount
of the President’s salary under section 102 of title 3, United
States Code.
‘‘(e) SENIOR MANAGEMENT.—
‘‘(1) APPOINTMENT.—
‘‘(A) IN GENERAL.—The Chief Operating Officer may
appoint such senior managers as that officer determines
necessary without regard to the provisions of title 5, United
States Code, governing appointments in the competitive
service.
‘‘(B) COMPENSATION.—The senior managers described
in subparagraph (A) may be paid without regard to the
provisions of chapter 51 and subchapter III of chapter
53 of such title relating to classification and General Sched-
ule pay rates.
‘‘(2) PERFORMANCE
AGREEMENT.—Each year, the Chief
Operating Officer and each senior manager appointed under
this subsection shall enter into an annual performance agree-
ment that sets forth measurable organization and individual
goals. The agreement shall be subject to review and renegoti-
ation at the end of each term.
‘‘(3) COMPENSATION.—
‘‘(A) IN GENERAL.—A senior manager appointed under
this subsection may be paid at an annual rate of basic
pay of not more than the maximum rate of basic pay
for the Senior Executive Service under section 5382 of
title 5, United States Code, including any applicable local-
ity-based comparability payment that may be authorized
under section 5304(h)(2)(C) of such title. The compensation
of a senior manager shall be considered for purposes of
section 207(c)(2)(A) of title 18, United States Code, to be
the equivalent of that described under clause (ii) of section
207(c)(2)(A) of such title.
‘‘(B) BONUS.—In addition, a senior manager may
receive a bonus in an amount such that the manager’s
total annual compensation does not exceed 125 percent
of the maximum rate of basic pay for the Senior Executive
Service, including any applicable locality-based comparabil-
ity payment, based upon the Chief Operating Officer’s
evaluation of the manager’s performance in relation to
the goals set forth in the performance agreement described
in paragraph (2).
‘‘(4) REMOVAL.—A senior manager shall be removable by
the Chief Operating Officer, or by the Secretary if the position
of Chief Operating Officer is vacant.
‘‘(f ) STUDENT LOAN OMBUDSMAN.—
‘‘(1) APPOINTMENT.—The Chief Operating Officer, in con-
sultation with the Secretary, shall appoint a Student Loan
Ombudsman to provide timely assistance to borrowers of loans
made, insured, or guaranteed under title IV by performing
the functions described in paragraph (3).
‘‘(2) PUBLIC
INFORMATION.—The Chief Operating Officer
shall disseminate information about the availability and func-
tions of the Ombudsman to borrowers and potential borrowers,
as well as institutions of higher education, lenders, guaranty
H. R. 6—30
agencies, loan servicers, and other participants in those student
loan programs.
‘‘(3) FUNCTIONS OF OMBUDSMAN.—The Ombudsman shall—
‘‘(A) in accordance with regulations of the Secretary,
receive, review, and attempt to resolve informally com-
plaints from borrowers of loans described in paragraph
(1), including, as appropriate, attempts to resolve such
complaints within the Department of Education and with
institutions of higher education, lenders, guaranty agencies,
loan servicers, and other participants in the loan programs
described in paragraph (1)(A); and
‘‘(B) compile and analyze data on borrower complaints
and make appropriate recommendations.
‘‘(4) REPORT.—Each year, the Ombudsman shall submit
a report to the Chief Operating Officer, for inclusion in the
annual report under subsection (c)(2), that describes the activi-
ties, and evaluates the effectiveness of the Ombudsman during
the preceding year.
‘‘(g) PERSONNEL FLEXIBILITY.—
‘‘(1) PERSONNEL CEILINGS.—The PBO shall not be subject
to any ceiling relating to the number or grade of employees.
‘‘(2) ADMINISTRATIVE
FLEXIBILITY.—The Chief Operating
Officer shall work with the Office of Personnel Management
to develop and implement personnel flexibilities in staffing,
classification, and pay that meet the needs of the PBO, subject
to compliance with title 5, United States Code.
‘‘(3) EXCEPTED SERVICE.—The Chief Operating Officer may
appoint, without regard to the provisions of title 5, United
States Code, governing appointments in the competitive service,
not more than 25 technical and professional employees to
administer the functions of the PBO. These employees may
be paid without regard to the provisions of chapter 51 and
subchapter III of chapter 53 of such title relating to classifica-
tion and General Schedule pay rates.
‘‘(h) ESTABLISHMENT OF A FAIR AND EQUITABLE SYSTEM FOR
MEASURING STAFF PERFORMANCE.—The PBO shall establish an
annual performance management system, subject to compliance
with title 5, United States Code and consistent with applicable
provisions of law and regulations, which strengthens the organiza-
tional effectiveness of the PBO by providing for establishing goals
or objectives for individual, group, or organizational performance
(or any combination thereof), consistent with the performance plan
of the PBO and its performance planning procedures, including
those established under the Government Performance and Results
Act of 1993, and communicating such goals or objectives to employ-
ees.
‘‘(i) REPORT.—The Secretary and the Chief Operating Officer,
not later than 180 days after the date of enactment of the Higher
Education Amendments of 1998, shall report to Congress on the
proposed budget and sources of funding for the operation of the
PBO.
‘‘( j) AUTHORIZATION OF APPROPRIATIONS.—The Secretary shall
allocate from funds made available under section 458 such funds
as are appropriate to the functions assumed by the PBO. In addi-
tion, there are authorized to be appropriated such sums as may
be necessary to carry out the purposes of this part, including transi-
tion costs.
H. R. 6—31
‘‘SEC. 142. PROCUREMENT FLEXIBILITY.
‘‘(a) PROCUREMENT AUTHORITY.—Subject to the authority of
the Secretary, the Chief Operating Officer of a PBO may exercise
the authority of the Secretary to procure property and services
in the performance of functions managed by the PBO. For the
purposes of this section, the term ‘PBO’ includes the Chief Operating
Officer of the PBO and any employee of the PBO exercising procure-
ment authority under the preceding sentence.
‘‘(b) IN GENERAL.—Except as provided in this section, the PBO
shall abide by all applicable Federal procurement laws and regula-
tions when procuring property and services. The PBO shall—
‘‘(1) enter into contracts for information systems supporting
the programs authorized under title IV to carry out the func-
tions set forth in section 141(b)(2); and
‘‘(2) obtain the services of experts and consultants without
regard to section 3109 of title 5, United States Code and set
pay in accordance with such section.
‘‘(c) SERVICE CONTRACTS.—
‘‘(1) 
PERFORMANCE-BASED
SERVICING
CONTRACTS.—The
Chief Operating Officer shall, to the extent practicable, maxi-
mize the use of performance-based servicing contracts, consist-
ent with guidelines for such contracts published by the Office
of Federal Procurement Policy, to achieve cost savings and
improve service.
‘‘(2) FEE FOR SERVICE ARRANGEMENTS.—The Chief Operat-
ing Officer shall, when appropriate and consistent with the
purposes of the PBO, acquire services related to the title IV
delivery system from any entity that has the capability and
capacity to meet the requirements for the system. The Chief
Operating Officer is authorized to pay fees that are equivalent
to those paid by other entities to an organization that provides
an information system or service that meets the requirements
of the PBO, as determined by the Chief Operating Officer.
‘‘(d) TWO-PHASE SOURCE-SELECTION PROCEDURES.—
‘‘(1) IN GENERAL.—The PBO may use a two-phase process
for selecting a source for a procurement of property or services.
‘‘(2) FIRST PHASE.—The procedures for the first phase of
the process for a procurement are as follows:
‘‘(A) PUBLICATION OF NOTICE.—The contracting officer
for the procurement shall publish a notice of the procure-
ment in accordance with section 18 of the Office of Federal
Procurement Policy Act (41 U.S.C. 416) and subsections
(e), (f ), and (g) of section 8 of the Small Business Act
(15 U.S.C. 637), except that the notice shall include only
the following:
‘‘(i) A general description of the scope or purpose
of the procurement that provides sufficient information
on the scope or purpose for sources to make informed
business decisions regarding whether to participate in
the procurement.
‘‘(ii) A description of the basis on which potential
sources are to be selected to submit offers in the second
phase.
‘‘(iii) A description of the information that is to
be required under subparagraph (B).
‘‘(iv) Any additional information that the contract-
ing officer determines appropriate.
H. R. 6—32
‘‘(B) INFORMATION
SUBMITTED
BY
OFFERORS.—Each
offeror for the procurement shall submit basic information,
such as information on the offeror’s qualifications, the pro-
posed conceptual approach, costs likely to be associated
with the proposed conceptual approach, and past perform-
ance of the offeror on Federal Government contracts,
together with any additional information that is requested
by the contracting officer.
‘‘(C) SELECTION FOR SECOND PHASE.—The contracting
officer shall select the offerors that are to be eligible to
participate in the second phase of the process. The contract-
ing officer shall limit the number of the selected offerors
to the number of sources that the contracting officer deter-
mines is appropriate and in the best interests of the Federal
Government.
‘‘(3) SECOND PHASE.—
‘‘(A) IN GENERAL.—The contracting officer shall conduct
the second phase of the source selection process in accord-
ance with sections 303A and 303B of the Federal Property
and Administrative Services Act of 1949 (41 U.S.C. 253a
and 253b).
‘‘(B) ELIGIBLE PARTICIPANTS.—Only the sources selected
in the first phase of the process shall be eligible to partici-
pate in the second phase.
‘‘(C) SINGLE OR MULTIPLE PROCUREMENTS.—The second
phase may include a single procurement or multiple
procurements within the scope, or for the purpose,
described in the notice pursuant to paragraph (2)(A).
‘‘(4) PROCEDURES
CONSIDERED
COMPETITIVE.—The proce-
dures used for selecting a source for a procurement under
this subsection shall be considered competitive procedures for
all purposes.
‘‘(e) USE OF SIMPLIFIED PROCEDURES FOR COMMERCIAL ITEMS.—
Whenever the PBO anticipates that commercial items will be offered
for a procurement, the PBO may use (consistent with the special
rules for commercial items) the special simplified procedures for
the procurement without regard to—
‘‘(1) any dollar limitation otherwise applicable to the use
of those procedures; and
‘‘(2) the expiration of the authority to use special simplified
procedures under section 4202(e) of the Clinger-Cohen Act of
1996 (110 Stat. 654; 10 U.S.C. 2304 note).
‘‘(f ) FLEXIBLE WAIT PERIODS AND DEADLINES FOR SUBMISSION
OF OFFERS OF NONCOMMERCIAL ITEMS.—
‘‘(1) AUTHORITY.—In carrying out a procurement, the PBO
may—
‘‘(A) apply a shorter waiting period for the issuance
of a solicitation after the publication of a notice under
section 18 of the Office of Federal Procurement Policy
Act (41 U.S.C. 416) than is required under subsection
(a)(3)(A) of such section; and
‘‘(B) notwithstanding subsection (a)(3) of such section,
establish any deadline for the submission of bids or propos-
als that affords potential offerors a reasonable opportunity
to respond to the solicitation.
‘‘(2) INAPPLICABILITY
TO
COMMERCIAL
ITEMS.—Paragraph
(1) does not apply to a procurement of a commercial item.
H. R. 6—33
‘‘(3) CONSISTENCY WITH APPLICABLE INTERNATIONAL AGREE-
MENTS.—If an international agreement is applicable to the
procurement, any exercise of authority under paragraph (1)
shall be consistent with the international agreement.
‘‘(g) MODULAR CONTRACTING.—
‘‘(1) IN GENERAL.—The PBO may satisfy the requirements
of the PBO for a system incrementally by carrying out succes-
sive procurements of modules of the system. In doing so, the
PBO may use procedures authorized under this subsection to
procure any such module after the first module.
‘‘(2) UTILITY REQUIREMENT.—A module may not be procured
for a system under this subsection unless the module is useful
independently of the other modules or useful in combination
with another module previously procured for the system.
‘‘(3) CONDITIONS FOR USE OF AUTHORITY.—The PBO may
use procedures authorized under paragraph (4) for the procure-
ment of an additional module for a system if—
‘‘(A) competitive procedures were used for awarding
the contract for the procurement of the first module for
the system; and
‘‘(B) the solicitation for the first module included—
‘‘(i) a general description of the entire system that
was sufficient to provide potential offerors with reason-
able notice of the general scope of future modules;
‘‘(ii) other information sufficient for potential
offerors to make informed business judgments regard-
ing whether to submit offers for the contract for the
first module; and
‘‘(iii) a statement that procedures authorized under
this subsection could be used for awarding subsequent
contracts for the procurement of additional modules
for the system.
‘‘(4) PROCEDURES.—If the procurement of the first module
for a system meets the requirements set forth in paragraph
(3), the PBO may award a contract for the procurement of
an additional module for the system using any of the following
procedures:
‘‘(A) SOLE SOURCE.—Award of the contract on a sole-
source basis to a contractor who was awarded a contract
for a module previously procured for the system under
competitive procedures or procedures authorized under
subparagraph (B).
‘‘(B) ADEQUATE COMPETITION.—Award of the contract
on the basis of offers made by—
‘‘(i) a contractor who was awarded a contract for
a module previously procured for the system after hav-
ing been selected for award of the contract under this
subparagraph or other competitive procedures; and
‘‘(ii) at least one other offeror that submitted an
offer for a module previously procured for the system
and is expected, on the basis of the offer for the pre-
viously procured module, to submit a competitive offer
for the additional module.
‘‘(C) OTHER.—Award of the contract under any other
procedure authorized by law.
‘‘(5) NOTICE REQUIREMENT.—
H. R. 6—34
‘‘(A) PUBLICATION.—Not less than 30 days before
issuing a solicitation for offers for a contract for a module
for a system under procedures authorized under subpara-
graph (A) or (B) of paragraph (4), the PBO shall publish
in the Commerce Business Daily a notice of the intent
to use such procedures to enter into the contract.
‘‘(B) EXCEPTION.—Publication of a notice is not required
under this paragraph with respect to a use of procedures
authorized under paragraph (4) if the contractor referred
to in that subparagraph (who is to be solicited to submit
an offer) has previously provided a module for the system
under a contract that contained cost, schedule, and
performance goals and the contractor met those goals.
‘‘(C) CONTENT OF NOTICE.—A notice published under
subparagraph (A) with respect to a use of procedures
described in paragraph (4) shall contain the information
required under section 18(b) of the Office of Federal
Procurement Policy Act (41 U.S.C. 416(b)), other than para-
graph (4) of such section, and shall invite the submission
of any assertion that the use of the procedures for the
procurement involved is not in the best interest of the
Federal Government together with information supporting
the assertion.
‘‘(6) DOCUMENTATION.—The basis for an award of a contract
under this subsection shall be documented. However, a justifica-
tion pursuant to section 303(f ) of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 253(f )) or section
8(h) of the Small Business Act (15 U.S.C. 637(h)) is not
required.
‘‘(7) SIMPLIFIED SOURCE-SELECTION PROCEDURES.—The PBO
may award a contract under any other simplified procedures
prescribed by the PBO for the selection of sources for the
procurement of modules for a system, after the first module,
that are not to be procured under a contract awarded on a
sole-source basis.
‘‘(h) USE OF SIMPLIFIED PROCEDURES FOR SMALL BUSINESS SET-
ASIDES FOR SERVICES OTHER THAN COMMERCIAL ITEMS.—
‘‘(1) AUTHORITY.—The PBO may use special simplified
procedures for a procurement of services that are not commer-
cial items if—
‘‘(A) the procurement is in an amount not greater than
$1,000,000;
‘‘(B) the procurement is conducted as a small business
set-aside pursuant to section 15(a) of the Small Business
Act (15 U.S.C. 644(a)); and
‘‘(C) the price charged for supplies associated with
the services procured are items of supply expected to be
less than 20 percent of the total contract price.
‘‘(2) INAPPLICABILITY
TO
CERTAIN
PROCUREMENTS.—The
authority set forth in paragraph (1) may not be used for—
‘‘(A) an award of a contract on a sole-source basis;
or
‘‘(B) a contract for construction.
‘‘(i) GUIDANCE FOR USE OF AUTHORITY.—
‘‘(1) ISSUANCE BY PBO.—The Chief Operating Officer of the
PBO, in consultation with the Administrator for Federal
H. R. 6—35
Procurement Policy, shall issue guidance for the use by PBO
personnel of the authority provided in this section.
‘‘(2) GUIDANCE FROM OFPP.—As part of the consultation
required under paragraph (1), the Administrator for Federal
Procurement Policy shall provide the PBO with guidance that
is designed to ensure, to the maximum extent practicable, that
the authority under this section is exercised by the PBO in
a manner that is consistent with the exercise of the authority
by the heads of the other performance-based organizations.
‘‘(3) COMPLIANCE WITH OFPP GUIDANCE.—The head of the
PBO shall ensure that the procurements of the PBO under
this section are carried out in a manner that is consistent
with the guidance provided for the PBO under paragraph (2).
‘‘( j) LIMITATION ON MULTIAGENCY CONTRACTING.—No depart-
ment or agency of the Federal Government may purchase property
or services under contracts entered into or administered by a PBO
under this section unless the purchase is approved in advance
by the senior procurement official of that department or agency
who is responsible for purchasing by the department or agency.
‘‘(k) LAWS NOT AFFECTED.—Nothing in this section shall be
construed to waive laws for the enforcement of civil rights or for
the establishment and enforcement of labor standards that are
applicable to contracts of the Federal Government.
‘‘(l) DEFINITIONS.—In this section:
‘‘(1) COMMERCIAL ITEM.—The term ‘commercial item’ has
the meaning given the term in section 4(12) of the Office
of Federal Procurement Policy Act (41 U.S.C. 403(12)).
‘‘(2) COMPETITIVE
PROCEDURES.—The term ‘competitive
procedures’ has the meaning given the term in section 309(b)
of the Federal Property and Administrative Services Act of
1949 (41 U.S.C. 259(b)).
‘‘(3) SOLE-SOURCE BASIS.—The term ‘sole-source basis’, with
respect to an award of a contract, means that the contract
is awarded to a source after soliciting an offer or offers from,
and negotiating with, only that source.
‘‘(4) SPECIAL
RULES
FOR
COMMERCIAL
ITEMS.—The term
‘special rules for commercial items’ means the regulations set
forth in the Federal Acquisition Regulation pursuant to section
303(g)(1) of the Federal Property and Administrative Services
Act of 1949 (41 U.S.C. 253(g)(1)) and section 31 of the Office
of Federal Procurement Policy Act (41 U.S.C. 427).
‘‘(5) SPECIAL SIMPLIFIED PROCEDURES.—The term ‘special
simplified procedures’ means the procedures applicable to pur-
chases of property and services for amounts not greater than
the simplified acquisition threshold that are set forth in the
Federal Acquisition Regulation pursuant to section 303(g)(1)(B)
of the Federal Property and Administrative Services Act of
1949 (41 U.S.C. 253(g)(1)(A)) and section 31(a)(1) of the Office
of Federal Procurement Policy Act (41 U.S.C. 427(a)(1)).
‘‘SEC. 143. ADMINISTRATIVE SIMPLIFICATION OF STUDENT AID DELIV-
ERY.
‘‘(a) IN GENERAL.—In order to improve the efficiency and
effectiveness of the student aid delivery system, the Secretary and
the Chief Operating Officer shall encourage and participate in the
establishment of voluntary consensus standards and requirements
H. R. 6—36
for the electronic transmission of information necessary for the
administration of programs under title IV.
‘‘(b) PARTICIPATION
IN STANDARD SETTING ORGANIZATIONS.—
‘‘(1) The Chief Operating Officer shall participate in the
activities of standard setting organizations in carrying out the
provisions of this section.
‘‘(2) The Chief Operating Officer shall encourage higher
education groups seeking to develop common forms, standards,
and procedures in support of the delivery of Federal student
financial assistance to conduct these activities within a stand-
ard setting organization.
‘‘(3) The Chief Operating Officer may pay necessary dues
and fees associated with participating in standard setting
organizations pursuant to this subsection.
‘‘(c) ADOPTION OF VOLUNTARY CONSENSUS STANDARDS.—Except
with respect to the common financial reporting form under section
483(a), the Secretary shall consider adopting voluntary consensus
standards agreed to by the organization described in subsection
(b) for transactions required under title IV, and common data
elements for such transactions, to enable information to be
exchanged electronically between systems administered by the
Department and among participants in the Federal student aid
delivery system.
‘‘(d) USE OF CLEARINGHOUSES.—Nothing in this section shall
restrict the ability of participating institutions and lenders from
using a clearinghouse or servicer to comply with the standards
for the exchange of information established under this section.
‘‘(e) DATA SECURITY.—Any entity that maintains or transmits
information under a transaction covered by this section shall main-
tain reasonable and appropriate administrative, technical, and
physical safeguards—
‘‘(1) to ensure the integrity and confidentiality of the
information; and
‘‘(2) to protect against any reasonably anticipated security
threats, or unauthorized uses or disclosures of the information.
‘‘(f ) DEFINITIONS.—
‘‘(1) CLEARINGHOUSE.—The term ‘clearinghouse’ means a
public or private entity that processes or facilitates the process-
ing of nonstandard data elements into data elements conform-
ing to standards adopted under this section.
‘‘(2) STANDARD SETTING ORGANIZATION.—The term ‘standard
setting organization’ means an organization that—
‘‘(A) is accredited by the American National Standards
Institute;
‘‘(B) develops standards for information transactions,
data elements, or any other standard that is necessary
to, or will facilitate, the implementation of this section;
and
‘‘(C) is open to the participation of the various entities
engaged in the delivery of Federal student financial assist-
ance.
‘‘(3) VOLUNTARY
CONSENSUS
STANDARD.—The term ‘vol-
untary consensus standard’ means a standard developed or
used by a standard setting organization described in paragraph
(2).’’.
(b) REPEAL OF OLD GENERAL PROVISIONS.—Title XII (20 U.S.C.
1141 et seq.) is repealed.
H. R. 6—37
(c) REPEAL OF TITLE IV DEFINITION.—Section 481 (20 U.S.C.
1088) is amended—
(1) by striking subsections (a), (b), and (c); and
(2) by redesignating subsections (d) through (f ) as sub-
sections (a) through (c), respectively.
SEC. 102. CONFORMING AMENDMENTS.
(a) CONFORMING AMENDMENTS CORRECTING REFERENCES
TO
SECTION 1201.—
(1) AGRICULTURE.—
(A) STUDENT INTERNSHIP PROGRAMS.—Section 922 of
the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 2279c) is amended—
(i) in subsection (a)(1)(B)—
(I) by striking ‘‘1201’’ and inserting ‘‘101’’; and
(II) by striking ‘‘(20 U.S.C. 1141)’’; and
(ii) in subsection (b)(1)—
(I) by striking ‘‘1201’’ and inserting ‘‘101’’; and
(II) by striking ‘‘(20 U.S.C. 1141)’’.
(B) 
AGRICULTURAL
SCIENCES
EDUCATION.—Section
1417( j)(1)(A) of the National Agricultural Research, Exten-
sion, and Teaching Policy Act of 1977 (7 U.S.C.
3152( j)(1)(A)) is amended—
(i) by striking ‘‘1201(a)’’ and inserting ‘‘101’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(2) ARMED FORCES.—
(A) SCIENCE AND MATHEMATICS EDUCATION IMPROVE-
MENT
PROGRAM.—Section 2193(c)(1) of title 10, United
States Code, is amended—
(i) by striking ‘‘1201(a)’’ and inserting ‘‘101’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(B) SUPPORT OF SCIENCE, MATHEMATICS, AND ENGINEER-
ING EDUCATION.—Section 2199(2) of title 10, United States
Code, is amended—
(i) by striking ‘‘1201(a)’’ and inserting ‘‘101’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(C) ALLOWABLE COSTS UNDER DEFENSE CONTRACTS.—
Section 841(c)(2) of the National Defense Authorization
Act for fiscal year 1994 (10 U.S.C. 2324 note) is amended—
(i) by striking ‘‘1201(a)’’ and inserting ‘‘101’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(D) 
ENVIRONMENTAL
RESTORATION
INSTITUTIONAL
GRANTS FOR TRAINING DISLOCATED DEFENSE WORKERS AND
YOUNG ADULTS.—Section 1333(i)(3) of the National Defense
Authorization Act for fiscal year 1994 (10 U.S.C. 2701
note) is amended—
(i) by striking ‘‘1201(a)’’ and inserting ‘‘101’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(E) ENVIRONMENTAL EDUCATION OPPORTUNITIES PRO-
GRAM.—Section 
1334(k)(3) 
of 
the 
National 
Defense
Authorization Act for fiscal year 1994 (10 U.S.C. 2701
note) is amended—
(i) by striking ‘‘1201(a)’’ and inserting ‘‘101’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(F) ENVIRONMENTAL
SCHOLARSHIP
AND
FELLOWSHIP
PROGRAMS.—Section 4451(b)(1) of the National Defense
H. R. 6—38
Authorization Act for 1993 (10 U.S.C. 2701 note) is amend-
ed—
(i) by striking ‘‘1201(a)’’ and inserting ‘‘101’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(3) APPLICATION OF ANTITRUST LAWS TO AWARD OF NEED-
BASED EDUCATIONAL AID.—Section 568(c)(3) of the Improving
America’s Schools Act of 1994 (15 U.S.C. 1 note) is amended—
(A) by striking ‘‘1201(a)’’ and inserting ‘‘101’’; and
(B) by striking ‘‘(20 U.S.C. 1141(a))’’.
(4) OMNIBUS PARKS AND PUBLIC LANDS MANAGEMENT ACT
OF 1996.—Section 1007(c)(5) of the Omnibus Parks and Public
Lands Management Act of 1996 (16 U.S.C. 698u–5) is amended
by striking ‘‘1201(a) of the Higher Education Act of 1965 (20
U.S.C. 1141(a))’’ and inserting ‘‘101 of the Higher Education
Act of 1965’’.
(5) RESTRICTIONS ON FORMER OFFICERS, EMPLOYEES, AND
ELECTED
OFFICIALS
OF
THE
EXECUTIVE
AND
LEGISLATIVE
BRANCHES.—Section 207( j)(2)(B) of title 18, United States Code,
is amended by striking ‘‘1201(a)’’ and inserting ‘‘101’’.
(6) EDUCATION.—
(A) HIGHER EDUCATION AMENDMENTS OF 1992.—Section
1(c) of the Higher Education Amendments of 1992 (20
U.S.C. 1001 note) is amended by striking ‘‘1201’’ and insert-
ing ‘‘101’’.
(B) TREATMENT OF BRANCHES.—Section 498( j)(2) of the
Higher Education Act of 1965 (20 U.S.C. 1099c( j)(2)) is
amended by striking ‘‘1201(a)(2)’’ and inserting ‘‘101(a)(2)’’.
(C) 
DISCLOSURE
REQUIREMENTS.—Section
429(d)(2)(B)(ii) of the General Education Provisions Act
(20 U.S.C. 1228c(d)(2)(B)(ii)) is amended by striking
‘‘1201(a)’’ and inserting ‘‘101’’.
(D) HARRY S. TRUMAN SCHOLARSHIPS.—Section 3(4) of
the Harry S. Truman Memorial Scholarship Act (20 U.S.C.
2002(4)) is amended by striking ‘‘1201(a)’’ and inserting
‘‘101’’.
(E) TECH-PREP EDUCATION.—Section 347(2)(A) of the
Carl D. Perkins Vocational and Applied Technology Edu-
cation Act (20 U.S.C. 2394e(2)(A)) is amended by striking
‘‘1201(a)’’ and inserting ‘‘101’’.
(F) EDUCATION FOR ECONOMIC SECURITY.—Section 3(6)
of the Education for Economic Security Act (20 U.S.C.
3902(6)) is amended by striking ‘‘1201(a)’’ and inserting
‘‘101’’.
(G) JAMES MADISON MEMORIAL FELLOWSHIPS.—Section
815 of the James Madison Memorial Fellowship Act (20
U.S.C. 4514) is amended—
(i) in paragraph (3), by striking ‘‘1201(a)’’ and
inserting ‘‘101’’; and
(ii) in paragraph (4), by striking ‘‘1201(d) of the
Higher Education Act of 1965’’ and inserting ‘‘14101
of the Elementary and Secondary Education Act of
1965’’.
(H) BARRY GOLDWATER SCHOLARSHIPS.—Section 1403(4)
of the Barry Goldwater Scholarship and Excellence in Edu-
cation Act (20 U.S.C. 4702(4)) is amended—
(i) by striking ‘‘1201(a)’’ and inserting ‘‘101’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
H. R. 6—39
(I) MORRIS K. UDALL SCHOLARSHIPS.—Section 4(6) of
the Morris K. Udall Scholarship and Excellence in National
Environmental and Native American Public Policy Act of
1992 (20 U.S.C. 5602(6)) is amended by striking ‘‘1201(a)’’
and inserting ‘‘101’’.
(J) BILINGUAL EDUCATION, AND LANGUAGE ENHANCE-
MENT AND ACQUISITION.—Section 7501(4) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 7601(4))
is amended by striking ‘‘1201(a)’’ and inserting ‘‘101’’.
(K) GENERAL DEFINITIONS.—Section 14101(17) of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 8801(17)) is amended by striking ‘‘1201(a)’’ and
inserting ‘‘101’’.
(L) NATIONAL EDUCATION STATISTICS.—Section 402(c)(3)
of the National Education Statistics Act of 1994 (20 U.S.C.
9001(c)(3)) is amended by striking ‘‘1201(a)’’ and inserting
‘‘101’’.
(7) FOREIGN RELATIONS.—
(A) ENVIRONMENT
AND
SUSTAINABLE
DEVELOPMENT
EXCHANGE PROGRAM.—Section 240(d) of the Foreign Rela-
tions Authorization Act, Fiscal Years 1994 and 1995 (22
U.S.C. 2452 note) is amended by striking ‘‘1201(a)’’ and
inserting ‘‘101’’.
(B) SAMANTHA SMITH MEMORIAL EXCHANGE PROGRAM.—
Section 112(a)(8) of the Mutual Educational and Cultural
Exchange Act of 1961 (22 U.S.C. 2460(a)(8)) is amended—
(i) by striking ‘‘1201(a)’’ and inserting ‘‘101’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(C) SOVIET-EASTERN
EUROPEAN
TRAINING.—Section
803(1) of the Soviet-Eastern European Research and Train-
ing Act of 1983 (22 U.S.C. 4502(1)) is amended by striking
‘‘1201(a)’’ and inserting ‘‘101’’.
(D) DEVELOPING
COUNTRY
SCHOLARSHIPS.—Section
603(d) of the Foreign Relations Authorization Act, Fiscal
Years 1986 and 1987 (22 U.S.C. 4703(d)) is amended by
striking ‘‘1201(a)’’ and inserting ‘‘101’’.
(8) INDIANS.—
(A) SNYDER ACT.—The last paragraph of section 410
of the Act entitled ‘‘An Act authorizing appropriations and
expenditures for the administration of Indian Affairs, and
for other purposes’’, approved November 2, 1921 (25 U.S.C.
13) (commonly known as the Snyder Act) is amended by
striking ‘‘1201’’ and inserting ‘‘101’’.
(B) TRIBALLY CONTROLLED COMMUNITY COLLEGE ASSIST-
ANCE.—Section 2(a)(5) of the Tribally Controlled Commu-
nity College Assistance Act (25 U.S.C. 1801(a)(5)) is amend-
ed by striking ‘‘1201(a)’’ and inserting ‘‘101’’.
(C) 
CONSTRUCTION
OF
NEW
FACILITIES.—Section
113(b)(2) of the Tribally Controlled Community College
Assistance Act (25 U.S.C. 1813(b)(2)) is amended—
(i) by striking ‘‘1201(a)’’ and inserting ‘‘101’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(D) AMERICAN
INDIAN
TEACHER
TRAINING.—Section
1371(a)(1)(B) of the Higher Education Amendments of 1992
(25 U.S.C. 3371(a)(1)(B)) is amended by striking ‘‘1201(a)’’
and inserting ‘‘101’’.
(9) LABOR.—
H. R. 6—40
(A) REHABILITATION DEFINITIONS.—Section 6(23) of the
Rehabilitation Act of 1973 (29 U.S.C. 705(23)) is amended—
(i) by striking ‘‘1201(a)’’ and inserting ‘‘101’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(B) TECHNOLOGY RELATED ASSISTANCE FOR INDIVIDUALS
WITH DISABILITIES ACT OF 1988.—Section 3(8) of the Tech-
nology Related Assistance for Individuals with Disabilities
Act of 1988 (29 U.S.C. 2202(8)) is amended by striking
‘‘1201(a) of the Higher Education Act of 1965 (20 U.S.C.
1141(a))’’ and inserting ‘‘101 of the Higher Education Act
of 1965’’.
(10) SURFACE MINING CONTROL.—Section 701(32) of the Sur-
face Mining Control and Reclamation Act of 1977 (30 U.S.C.
1291(32)) is amended by striking ‘‘1201(a)’’ and inserting ‘‘101’’.
(11) POLLUTION PREVENTION.—Section 112(a)(1) of the Fed-
eral Water Pollution Control Act (33 U.S.C. 1262(a)(1)) is
amended by striking ‘‘1201’’ and inserting ‘‘101’’.
(12) POSTAL SERVICE.—Section 3626(b)(3) of title 39, United
States Code, is amended—
(A) by striking ‘‘1201(a)’’ and inserting ‘‘101’’; and
(B) by striking ‘‘(20 U.S.C. 1141(a))’’.
(13) PUBLIC HEALTH AND WELFARE.—
(A) PUBLIC HEALTH SERVICE ACT.—Section 705(a)(2)(C)
of the Public Health Service Act (42 U.S.C. 292d(a)(2)(C))
is amended by striking ‘‘section 481(a)’’ and inserting ‘‘sec-
tion 102(a)’’.
(B) SCIENTIFIC
AND
TECHNICAL
EDUCATION.—Section
3(g) of the Scientific and Advanced-Technology Act of 1992
(42 U.S.C. 1862i(g)) is amended—
(i) in paragraph (2)—
(I) by striking ‘‘1201(a)’’ and inserting ‘‘101’’;
and
(II) by striking ‘‘(20 U.S.C. 1141(a))’’; and
(ii) in paragraph (3)—
(I) by striking ‘‘1201(a)’’ and inserting ‘‘101’’;
and
(II) by striking ‘‘(20 U.S.C. 1141(a))’’.
(C) OLDER AMERICANS.—Section 102(32) of the Older
Americans Act of 1965 (42 U.S.C. 3002(32)) is amended—
(i) by striking ‘‘1201(a)’’ and inserting ‘‘101’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(D) JUSTICE
SYSTEM
IMPROVEMENT.—Section 901(17)
of the Omnibus Crime Control and Safe Streets Act of
1968 (42 U.S.C. 3791(17)) is amended—
(i) by striking ‘‘1201(a)’’ and inserting ‘‘101’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(E) ENERGY TECHNOLOGY COMMERCIALIZATION SERVICES
PROGRAM.—Section 362(f )(5)(A) of the Energy Policy and
Conservation Act (42 U.S.C. 6322(f )(5)(A)) is amended—
(i) by striking ‘‘1201(a)’’ and inserting ‘‘101’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(F) ENVIRONMENTAL RESTORATION AND WASTE MANAGE-
MENT.—Section 
3132(b)(1) 
of 
the 
National 
Defense
Authorization Act for Fiscal Years 1992 and 1993 (42 U.S.C.
7274e(b)(1)) is amended—
(i) by striking ‘‘1201(a)’’ and inserting ‘‘101’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
H. R. 6—41
(G) HEAD START.—Section 649(c)(3) of the Head Start
Act (42 U.S.C. 9844(c)(3)) is amended—
(i) by striking ‘‘1201(a)’’ and inserting ‘‘101’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(H) STATE DEPENDENT CARE DEVELOPMENT GRANTS.—
Section 670G(5) of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9877(5)) is amended by strik-
ing ‘‘1201(a)’’ and inserting ‘‘101’’.
(I) 
INSTRUCTIONAL
ACTIVITIES
FOR
LOW-INCOME
YOUTH.—The matter preceding subparagraph (A) of section
682(b)(1) of the Community Services Block Grant Act (42
U.S.C. 9910c(b)(1)) is amended by striking ‘‘1201(a)’’ and
inserting ‘‘101’’.
(J) DRUG ABUSE EDUCATION.—Section 3601(7) of the
Anti-Drug Abuse Act of 1988 (42 U.S.C. 11851(7)) is amend-
ed—
(i) by striking ‘‘1201(a)’’ and inserting ‘‘101’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(K) NATIONAL
AND
COMMUNITY
SERVICE.—Section
101(13) of the National and Community Service Act of
1990 (42 U.S.C. 12511(13)) is amended—
(i) by striking ‘‘1201(a)’’ and inserting ‘‘101’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(L) CIVILIAN COMMUNITY CORPS.—Section 166(6) of the
National and Community Service Act of 1990 (42 U.S.C.
12626(6)) is amended—
(i) by striking ‘‘1201(a)’’ and inserting ‘‘101’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(M) CRANSTON-GONZALEZ NATIONAL AFFORDABLE HOUS-
ING ACT.—Section 457(9) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12899f(9)) is amended
by striking ‘‘1201(a)’’ and inserting ‘‘101’’.
(N) COMMUNITY SCHOOLS YOUTH SERVICES AND SUPER-
VISION GRANT PROGRAM.—The definition of public school
in section 30401(b) of the Community Schools Youth Serv-
ices and Supervision Grant Program Act of 1994 (42 U.S.C.
13791(b)) is amended—
(i) by striking ‘‘1201’’ each place the term appears
and inserting ‘‘101’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(i))’’.
(O) POLICE
CORPS.—The definition of institution of
higher education in section 200103 of the Police Corps
Act (42 U.S.C. 14092) is amended—
(i) by striking ‘‘1201(a)’’ and inserting ‘‘101’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(P) LAW ENFORCEMENT SCHOLARSHIP PROGRAM.—The
definition of institution of higher education in section
200202 of the Law Enforcement Scholarship and Recruit-
ment Act (42 U.S.C. 14111) is amended—
(i) by striking ‘‘1201(a)’’ and inserting ‘‘101’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(14) TELECOMMUNICATIONS.—Section 223(h)(4) of the Tele-
communications Act of 1934 (47 U.S.C. 223(h)(4)) is amended—
(A) by striking ‘‘1201’’ and inserting ‘‘101’’; and
(B) by striking ‘‘(20 U.S.C. 1141)’’.
H. R. 6—42
(15) WAR AND NATIONAL DEFENSE.—Section 808(3) of the
David L. Boren National Security Education Act of 1991 (50
U.S.C. 1908(3)) is amended—
(A) by striking ‘‘1201(a)’’ and inserting ‘‘101’’; and
(B) by striking ‘‘(20 U.S.C. 1141(a))’’.
(b) INTERNAL CROSS REFERENCES.—The Act (20 U.S.C. 1001
et seq.) is amended—
(1) in section 402A(c)(2) (20 U.S.C. 1070a–11(c)(2)), by
striking ‘‘1210’’ and inserting ‘‘118’’;
(2) in section 435(a) (20 U.S.C. 1085(a)), by striking ‘‘section
481’’ and inserting ‘‘section 102’’;
(3) in section 485(f )(1)(I) (20 U.S.C. 1092(f )(1)(I)), by
striking ‘‘1213’’ and inserting ‘‘120’’;
(4) in section 487(d) (20 U.S.C. 1094(d)), by striking ‘‘section
481’’ and inserting ‘‘section 102’’;
(5) in subsections ( j) and (k) of section 496 (20 U.S.C.
1099b), by striking ‘‘section 481’’ each place the term appears
and inserting ‘‘section 102’’;
(6) in section 498(i) (20 U.S.C. 1099c) is amended by
striking ‘‘section 481’’ and inserting ‘‘section 102’’;
(7) in section 498( j) (20 U.S.C. 1099c( j))—
(A) in paragraph (1), by striking ‘‘sections 481(b)(5)
and 481(c)(3)’’ and inserting ‘‘sections 102(b)(1)(E) and
102(c)(1)(C)’’; and
(B) in paragraph (2), by striking ‘‘1201(a)(2)’’ and
inserting ‘‘101(a)(2)’’; and
(8) in section 631(a)(8) (20 U.S.C. 1132(a)(8))—
(A) by striking ‘‘section 1201(a)’’ each place the term
appears and inserting ‘‘section 101’’; and
(B) by striking ‘‘of 1201(a)’’ and inserting ‘‘of section
101’’.
(c) 
ADDITIONAL
CONFORMING
AMENDMENTS
CORRECTING
REFERENCES TO SECTION 481.—
(1) SCHOOL-TO-WORK OPPORTUNITIES ACT OF 1994.—Section
4 of the School-to-Work Opportunities Act of 1994 (20 U.S.C.
6103) is amended—
(A) in paragraph (11)(B)(viii), by striking ‘‘section
481(b)’’ and inserting ‘‘section 102(b)’’; and
(B) in paragraph (12), by striking ‘‘section 481’’ and
inserting ‘‘section 102’’.
(2) NATIONAL
AND
COMMUNITY
SERVICE
ACT
OF
1990.—
Section 148(g) of the National and Community Service Act
of 1990 (42 U.S.C. 12604(g)) is amended by striking ‘‘section
481(a) of the Higher Education Act of 1965 (20 U.S.C. 1088(a))’’
and inserting ‘‘section 102 of the Higher Education Act of
1965’’.
(d) WORKFORCE INVESTMENT ACT
OF 1998.—The Workforce
Investment Act of 1998 is amended—
(1) in section 101(35) (29 U.S.C. 2801(35)), by striking
‘‘section 481 of the Higher Education Act of 1965 (20 U.S.C.
1088)’’ and inserting ‘‘section 102 of the Higher Education Act
of 1965’’; and
(2) in section 203(11) (20 U.S.C. 9202(11)), by striking
‘‘section 1201 of the Higher Education Act of 1965 (20 U.S.C.
1141)’’ and inserting ‘‘section 101 of the Higher Education Act
of 1965’’.
H. R. 6—43
TITLE II—TEACHER QUALITY
SEC. 201. TEACHER QUALITY ENHANCEMENT GRANTS.
The Act is amended by inserting after title I (20 U.S.C. 1001
et seq.) the following:
‘‘TITLE 
II—TEACHER 
QUALITY 
EN-
HANCEMENT GRANTS FOR STATES
AND PARTNERSHIPS
‘‘SEC. 201. PURPOSES; DEFINITIONS.
‘‘(a) PURPOSES.—The purposes of this title are to—
‘‘(1) improve student achievement;
‘‘(2) improve the quality of the current and future teaching
force by improving the preparation of prospective teachers and
enhancing professional development activities;
‘‘(3) hold institutions of higher education accountable for
preparing teachers who have the necessary teaching skills and
are highly competent in the academic content areas in which
the teachers plan to teach, such as mathematics, science,
English, foreign languages, history, economics, art, civics,
Government, and geography, including training in the effective
uses of technology in the classroom; and
‘‘(4) recruit highly qualified individuals, including individ-
uals from other occupations, into the teaching force.
‘‘(b) DEFINITIONS.—In this title:
‘‘(1) ARTS
AND
SCIENCES.—The term ‘arts and sciences’
means—
‘‘(A) when referring to an organizational unit of an
institution of higher education, any academic unit that
offers 1 or more academic majors in disciplines or content
areas corresponding to the academic subject matter areas
in which teachers provide instruction; and
‘‘(B) when referring to a specific academic subject mat-
ter area, the disciplines or content areas in which academic
majors are offered by the arts and science organizational
unit.
‘‘(2) HIGH NEED LOCAL EDUCATIONAL AGENCY.—The term
‘high need local educational agency’ means a local educational
agency that serves an elementary school or secondary school
located in an area in which there is—
‘‘(A) a high percentage of individuals from families
with incomes below the poverty line;
‘‘(B) a high percentage of secondary school teachers
not teaching in the content area in which the teachers
were trained to teach; or
‘‘(C) a high teacher turnover rate.
‘‘(3) POVERTY
LINE.—The term ‘poverty line’ means the
poverty line (as defined by the Office of Management and
Budget, and revised annually in accordance with section 673(2)
of the Community Services Block Grant Act (42 U.S.C. 9902(2)))
applicable to a family of the size involved.
H. R. 6—44
‘‘SEC. 202. STATE GRANTS.
‘‘(a) IN GENERAL.—From amounts made available under section
210(1) for a fiscal year, the Secretary is authorized to award grants
under this section, on a competitive basis, to eligible States to
enable the eligible States to carry out the activities described in
subsection (d).
‘‘(b) ELIGIBLE STATE.—
‘‘(1) DEFINITION.—In this title, the term ‘eligible State’
means—
‘‘(A) the Governor of a State; or
‘‘(B) in the case of a State for which the constitution
or law of such State designates another individual, entity,
or agency in the State to be responsible for teacher certifi-
cation and preparation activity, such individual, entity,
or agency.
‘‘(2) CONSULTATION.—The Governor and the individual,
entity, or agency designated under paragraph (1) shall consult
with the Governor, State board of education, State educational
agency, or State agency for higher education, as appropriate,
with respect to the activities assisted under this section.
‘‘(3) CONSTRUCTION.—Nothing in this subsection shall be
construed to negate or supersede the legal authority under
State law of any State agency, State entity, or State public
official over programs that are under the jurisdiction of the
agency, entity, or official.
‘‘(c) APPLICATION.—To be eligible to receive a grant under this
section, an eligible State shall, at the time of the initial grant
application, submit an application to the Secretary that—
‘‘(1) meets the requirement of this section;
‘‘(2) includes a description of how the eligible State intends
to use funds provided under this section; and
‘‘(3) contains such other information and assurances as
the Secretary may require.
‘‘(d) USES OF FUNDS.—An eligible State that receives a grant
under this section shall use the grant funds to reform teacher
preparation requirements, and to ensure that current and future
teachers possess the necessary teaching skills and academic content
knowledge in the subject areas in which the teachers are assigned
to teach, by carrying out 1 or more of the following activities:
‘‘(1) REFORMS.—Implementing reforms that hold institu-
tions of higher education with teacher preparation programs
accountable for preparing teachers who are highly competent
in the academic content areas in which the teachers plan to
teach, and possess strong teaching skills, which may include
the use of rigorous subject matter competency tests and the
requirement that a teacher have an academic major in the
subject area, or related discipline, in which the teacher plans
to teach.
‘‘(2) CERTIFICATION OR LICENSURE REQUIREMENTS.—Reform-
ing teacher certification or licensure requirements to ensure
that teachers have the necessary teaching skills and academic
content knowledge in the subject areas in which teachers are
assigned to teach.
‘‘(3) ALTERNATIVES
TO
TRADITIONAL
PREPARATION
FOR
TEACHING.—Providing prospective teachers with alternatives to
H. R. 6—45
traditional preparation for teaching through programs at col-
leges of arts and sciences or at nonprofit educational organiza-
tions.
‘‘(4) ALTERNATIVE
ROUTES
TO
STATE
CERTIFICATION.—
Carrying out programs that—
‘‘(A) include support during the initial teaching
experience; and
‘‘(B) establish, expand, or improve alternative routes
to State certification of teachers for highly qualified individ-
uals, including mid-career professionals from other occupa-
tions, paraprofessionals, former military personnel and
recent college graduates with records of academic distinc-
tion.
‘‘(5) 
RECRUITMENT; 
PAY; 
REMOVAL.—Developing 
and
implementing effective mechanisms to ensure that local edu-
cational agencies and schools are able to effectively recruit
highly qualified teachers, to financially reward those teachers
and principals whose students have made significant progress
toward high academic performance, such as through perform-
ance-based compensation systems and access to ongoing profes-
sional development opportunities for teachers and administra-
tors, and to expeditiously remove incompetent or unqualified
teachers consistent with procedures to ensure due process for
the teachers.
‘‘(6) SOCIAL PROMOTION.—Development and implementation
of efforts to address the problem of social promotion and to
prepare teachers to effectively address the issues raised by
ending the practice of social promotion.
‘‘(7) RECRUITMENT.—Activities described in section 204(d).
‘‘SEC. 203. PARTNERSHIP GRANTS.
‘‘(a) GRANTS.—From amounts made available under section
210(2) for a fiscal year, the Secretary is authorized to award grants
under this section, on a competitive basis, to eligible partnerships
to enable the eligible partnerships to carry out the activities
described in subsections (d) and (e).
‘‘(b) DEFINITIONS.—
‘‘(1) ELIGIBLE
PARTNERSHIPS.—In this title, the term
‘eligible partnerships’ means an entity that—
‘‘(A) shall include—
‘‘(i) a partner institution;
‘‘(ii) a school of arts and sciences; and
‘‘(iii) a high need local educational agency; and
‘‘(B) may include a Governor, State educational agency,
the State board of education, the State agency for higher
education, an institution of higher education not described
in subparagraph (A), a public charter school, a public or
private elementary school or secondary school, a public
or private nonprofit educational organization, a business,
a teacher organization, or a prekindergarten program.
‘‘(2) PARTNER INSTITUTION.—In this section, the term ‘part-
ner institution’ means a private independent or State-supported
public institution of higher education, the teacher training pro-
gram of which demonstrates that—
‘‘(A) graduates from the teacher training program
exhibit strong performance on State-determined qualifying
assessments for new teachers through—
H. R. 6—46
‘‘(i) demonstrating that 80 percent or more of the
graduates of the program who intend to enter the
field of teaching have passed all of the applicable State
qualification assessments for new teachers, which shall
include an assessment of each prospective teacher’s
subject matter knowledge in the content area or areas
in which the teacher intends to teach; or
‘‘(ii) being ranked among the highest-performing
teacher preparation programs in the State as deter-
mined by the State—
‘‘(I) using criteria consistent with the require-
ments for the State report card under section
207(b); and
‘‘(II) using the State report card on teacher
preparation required under section 207(b), after
the first publication of such report card and for
every year thereafter; or
‘‘(B) the teacher training program requires all the stu-
dents of the program to participate in intensive clinical
experience, to meet high academic standards, and—
‘‘(i) in the case of secondary school candidates,
to successfully complete an academic major in the sub-
ject area in which the candidate intends to teach or
to demonstrate competence through a high level of
performance in relevant content areas; and
‘‘(ii) in the case of elementary school candidates,
to successfully complete an academic major in the arts
and sciences or to demonstrate competence through
a high level of performance in core academic subject
areas.
‘‘(c) APPLICATION.—Each eligible partnership desiring a grant
under this section shall submit an application to the Secretary
at such time, in such manner, and accompanied by such information
as the Secretary may require. Each such application shall—
‘‘(1) contain a needs assessment of all the partners with
respect to teaching and learning and a description of how
the partnership will coordinate with other teacher training
or professional development programs, and how the activities
of the partnership will be consistent with State, local, and
other education reform activities that promote student achieve-
ment;
‘‘(2) contain a resource assessment that describes the
resources available to the partnership, the intended use of
the grant funds, including a description of how the grant funds
will be fairly distributed in accordance with subsection (f ),
and the commitment of the resources of the partnership to
the activities assisted under this title, including financial sup-
port, faculty participation, time commitments, and continuation
of the activities when the grant ends; and
‘‘(3) contain a description of—
‘‘(A) how the partnership will meet the purposes of
this title;
‘‘(B) how the partnership will carry out the activities
required under subsection (d) and any permissible activities
under subsection (e); and
‘‘(C) the partnership’s evaluation plan pursuant to sec-
tion 206(b).
H. R. 6—47
‘‘(d) REQUIRED USES OF FUNDS.—An eligible partnership that
receives a grant under this section shall use the grant funds to
carry out the following activities:
‘‘(1) REFORMS.—Implementing reforms within teacher
preparation programs to hold the programs accountable for
preparing teachers who are highly competent in the academic
content areas in which the teachers plan to teach, and for
promoting strong teaching skills, including working with a
school of arts and sciences and integrating reliable research-
based teaching methods into the curriculum, which curriculum
shall include programs designed to successfully integrate tech-
nology into teaching and learning.
‘‘(2) CLINICAL
EXPERIENCE
AND
INTERACTION.—Providing
sustained and high quality preservice clinical experience includ-
ing the mentoring of prospective teachers by veteran teachers,
and substantially increasing interaction between faculty at
institutions of higher education and new and experienced teach-
ers, principals, and other administrators at elementary schools
or secondary schools, and providing support, including prepara-
tion time, for such interaction.
‘‘(3) PROFESSIONAL DEVELOPMENT.—Creating opportunities
for enhanced and ongoing professional development that
improves the academic content knowledge of teachers in the
subject areas in which the teachers are certified to teach or
in which the teachers are working toward certification to teach,
and that promotes strong teaching skills.
‘‘(e) ALLOWABLE USES OF FUNDS.—An eligible partnership that
receives a grant under this section may use such funds to carry
out the following activities:
‘‘(1) TEACHER PREPARATION AND PARENT INVOLVEMENT.—
Preparing teachers to work with diverse student populations,
including individuals with disabilities and limited English pro-
ficient individuals, and involving parents in the teacher
preparation program reform process.
‘‘(2) DISSEMINATION AND COORDINATION.—Broadly dissemi-
nating information on effective practices used by the partner-
ship, and coordinating with the activities of the Governor, State
board of education, State higher education agency, and State
educational agency, as appropriate.
‘‘(3) MANAGERIAL AND LEADERSHIP SKILLS.—Developing and
implementing proven mechanisms to provide principals and
superintendents with effective managerial and leadership skills
that result in increased student achievement.
‘‘(4) TEACHER RECRUITMENT.—Activities described in section
204(d).
‘‘(f ) SPECIAL RULE.—No individual member of an eligible part-
nership shall retain more than 50 percent of the funds made avail-
able to the partnership under this section.
‘‘(g) CONSTRUCTION.—Nothing in this section shall be construed
to prohibit an eligible partnership from using grant funds to coordi-
nate with the activities of more than one Governor, State board
of education, State educational agency, local educational agency,
or State agency for higher education.
‘‘SEC. 204. TEACHER RECRUITMENT GRANTS.
‘‘(a) PROGRAM AUTHORIZED.—From amounts made available
under section 210(3) for a fiscal year, the Secretary is authorized
H. R. 6—48
to award grants, on a competitive basis, to eligible applicants to
enable the eligible applicants to carry out activities described in
subsection (d).
‘‘(b) ELIGIBLE APPLICANT DEFINED.—In this title, the term
‘eligible applicant’ means—
‘‘(1) an eligible State described in section 202(b); or
‘‘(2) an eligible partnership described in section 203(b).
‘‘(c) APPLICATION.—Any eligible applicant desiring to receive
a grant under this section shall submit an application to the Sec-
retary at such time, in such form, and containing such information
as the Secretary may require, including—
‘‘(1) a description of the assessment that the eligible
applicant, and the other entities with whom the eligible
applicant will carry out the grant activities, have undertaken
to determine the most critical needs of the participating high-
need local educational agencies;
‘‘(2) a description of the activities the eligible applicant
will carry out with the grant; and
‘‘(3) a description of the eligible applicant’s plan for continu-
ing the activities carried out with the grant, once Federal
funding ceases.
‘‘(d) USES OF FUNDS.—Each eligible applicant receiving a grant
under this section shall use the grant funds—
‘‘(1)(A) to award scholarships to help students pay the
costs of tuition, room, board, and other expenses of completing
a teacher preparation program;
‘‘(B) to provide support services, if needed to enable scholar-
ship recipients to complete postsecondary education programs;
and
‘‘(C) for followup services provided to former scholarship
recipients during the recipients first 3 years of teaching; or
‘‘(2) to develop and implement effective mechanisms to
ensure that high need local educational agencies and schools
are able to effectively recruit highly qualified teachers.
‘‘(e) SERVICE REQUIREMENTS.—The Secretary shall establish
such requirements as the Secretary finds necessary to ensure that
recipients of scholarships under this section who complete teacher
education programs subsequently teach in a high-need local edu-
cational agency, for a period of time equivalent to the period for
which the recipients receive scholarship assistance, or repay the
amount of the scholarship. The Secretary shall use any such repay-
ments to carry out additional activities under this section.
‘‘SEC. 205. ADMINISTRATIVE PROVISIONS.
‘‘(a) DURATION; ONE-TIME AWARDS; PAYMENTS.—
‘‘(1) DURATION.—
‘‘(A) ELIGIBLE
STATES
AND
ELIGIBLE
APPLICANTS.—
Grants awarded to eligible States and eligible applicants
under this title shall be awarded for a period not to exceed
3 years.
‘‘(B) ELIGIBLE
PARTNERSHIPS.—Grants awarded to
eligible partnerships under this title shall be awarded for
a period of 5 years.
‘‘(2) ONE-TIME AWARD.—An eligible State and an eligible
partnership may receive a grant under each of sections 202,
203, and 204 only once.
H. R. 6—49
‘‘(3) PAYMENTS.—The Secretary shall make annual pay-
ments of grant funds awarded under this part.
‘‘(b) PEER REVIEW.—
‘‘(1) PANEL.—The Secretary shall provide the applications
submitted under this title to a peer review panel for evaluation.
With respect to each application, the peer review panel shall
initially recommend the application for funding or for dis-
approval.
‘‘(2) PRIORITY.—In recommending applications to the
Secretary for funding under this title, the panel shall—
‘‘(A) with respect to grants under section 202, give
priority to eligible States serving States that—
‘‘(i) have initiatives to reform State teacher certifi-
cation requirements that are designed to ensure that
current and future teachers possess the necessary
teaching skills and academic content knowledge in the
subject areas in which the teachers are certified or
licensed to teach;
‘‘(ii) include innovative reforms to hold institutions
of higher education with teacher preparation programs
accountable for preparing teachers who are highly com-
petent in the academic content area in which the teach-
ers plan to teach and have strong teaching skills; or
‘‘(iii) involve the development of innovative efforts
aimed at reducing the shortage of highly qualified
teachers in high poverty urban and rural areas;
‘‘(B) with respect to grants under section 203—
‘‘(i) give priority to applications from eligible part-
nerships that involve businesses; and
‘‘(ii) take into consideration—
‘‘(I) providing an equitable geographic distribu-
tion of the grants throughout the United States;
and
‘‘(II) the potential of the proposed activities
for creating improvement and positive change.
‘‘(3) SECRETARIAL SELECTION.—The Secretary shall deter-
mine, based on the peer review process, which application shall
receive funding and the amounts of the grants. In determining
grant amounts, the Secretary shall take into account the total
amount of funds available for all grants under this title and
the types of activities proposed to be carried out.
‘‘(c) MATCHING REQUIREMENTS.—
‘‘(1) STATE GRANTS.—Each eligible State receiving a grant
under section 202 or 204 shall provide, from non-Federal
sources, an amount equal to 50 percent of the amount of the
grant (in cash or in kind) to carry out the activities supported
by the grant.
‘‘(2) PARTNERSHIP
GRANTS.—Each eligible partnership
receiving a grant under section 203 or 204 shall provide, from
non-Federal sources (in cash or in kind), an amount equal
to 25 percent of the grant for the first year of the grant,
35 percent of the grant for the second year of the grant, and
50 percent of the grant for each succeeding year of the grant.
‘‘(d) LIMITATION
ON ADMINISTRATIVE EXPENSES.—An eligible
State or eligible partnership that receives a grant under this title
may not use more than 2 percent of the grant funds for purposes
of administering the grant.
H. R. 6—50
‘‘(e) TEACHER QUALIFICATIONS PROVIDED
TO PARENTS UPON
REQUEST.—Any local educational agency or school that benefits
from the activities assisted under this title shall make available,
upon request and in an understandable and uniform format, to
any parent of a student attending any school served by the local
educational agency, information regarding the qualification of the
student’s classroom teacher with regard to the subject matter in
which the teacher provides instruction. The local educational agency
shall inform parents that the parents are entitled to receive the
information upon request.
‘‘SEC. 206. ACCOUNTABILITY AND EVALUATION.
‘‘(a) STATE GRANT ACCOUNTABILITY REPORT.—An eligible State
that receives a grant under section 202 shall submit an annual
accountability report to the Secretary, the Committee on Labor
and Human Resources of the Senate, and the Committee on Edu-
cation and the Workforce of the House of Representatives. Such
report shall include a description of the degree to which the eligible
State, in using funds provided under such section, has made
substantial progress in meeting the following goals:
‘‘(1) STUDENT ACHIEVEMENT.—Increasing student achieve-
ment for all students as defined by the eligible State.
‘‘(2) RAISING
STANDARDS.—Raising the State academic
standards required to enter the teaching profession, including,
where appropriate, through the use of incentives to incorporate
the requirement of an academic major in the subject, or related
discipline, in which the teacher plans to teach.
‘‘(3) INITIAL CERTIFICATION OR LICENSURE.—Increasing suc-
cess in the pass rate for initial State teacher certification or
licensure, or increasing the numbers of highly qualified individ-
uals being certified or licensed as teachers through alternative
programs.
‘‘(4) CORE ACADEMIC SUBJECTS.—
‘‘(A) SECONDARY
SCHOOL
CLASSES.—Increasing the
percentage of secondary school classes taught in core aca-
demic subject areas by teachers—
‘‘(i) with academic majors in those areas or in
a related field;
‘‘(ii) who can demonstrate a high level of com-
petence through rigorous academic subject area tests;
or
‘‘(iii) who can demonstrate competence through a
high level of performance in relevant content areas.
‘‘(B) ELEMENTARY
SCHOOL
CLASSES.—Increasing the
percentage of elementary school classes taught by teach-
ers—
‘‘(i) with academic majors in the arts and sciences;
or
‘‘(ii) who can demonstrate competence through a
high level of performance in core academic subjects.
‘‘(5) DECREASING TEACHER SHORTAGES.—Decreasing short-
ages of qualified teachers in poor urban and rural areas.
‘‘(6) 
INCREASING
OPPORTUNITIES
FOR
PROFESSIONAL
DEVELOPMENT.—Increasing opportunities for enhanced and
ongoing professional development that improves the academic
content knowledge of teachers in the subject areas in which
the teachers are certified or licensed to teach or in which
H. R. 6—51
the teachers are working toward certification or licensure to
teach, and that promotes strong teaching skills.
‘‘(7) TECHNOLOGY INTEGRATION.—Increasing the number of
teachers prepared to integrate technology in the classroom.
‘‘(b) ELIGIBLE PARTNERSHIP EVALUATION.—Each eligible part-
nership receiving a grant under section 203 shall establish and
include in the application submitted under section 203(c), an evalua-
tion plan that includes strong performance objectives. The plan
shall include objectives and measures for—
‘‘(1) increased student achievement for all students as
measured by the partnership;
‘‘(2) increased teacher retention in the first 3 years of
a teacher’s career;
‘‘(3) increased success in the pass rate for initial State
certification or licensure of teachers; and
‘‘(4) increased percentage of secondary school classes taught
in core academic subject areas by teachers—
‘‘(A) with academic majors in the areas or in a related
field; and
‘‘(B) who can demonstrate a high level of competence
through rigorous academic subject area tests or who can
demonstrate competence through a high level of perform-
ance in relevant content areas;
‘‘(5) increasing the percentage of elementary school classes
taught by teachers with academic majors in the arts and
sciences or who demonstrate competence through a high level
of performance in core academic subject areas; and
‘‘(6) increasing the number of teachers trained in tech-
nology.
‘‘(c) REVOCATION OF GRANT.—
‘‘(1) REPORT.—Each eligible State or eligible partnership
receiving a grant under this title shall report annually on
the progress of the eligible State or eligible partnership toward
meeting the purposes of this title and the goals, objectives,
and measures described in subsections (a) and (b).
‘‘(2) REVOCATION.—
‘‘(A) ELIGIBLE
STATES
AND
ELIGIBLE
APPLICANTS.—If
the Secretary determines that an eligible State or eligible
applicant is not making substantial progress in meeting
the purposes, goals, objectives, and measures, as appro-
priate, by the end of the second year of a grant under
this title, then the grant payment shall not be made for
the third year of the grant.
‘‘(B) ELIGIBLE PARTNERSHIPS.—If the Secretary deter-
mines that an eligible partnership is not making substan-
tial progress in meeting the purposes, goals, objectives,
and measures, as appropriate, by the end of the third
year of a grant under this title, then the grant payments
shall not be made for any succeeding year of the grant.
‘‘(d) EVALUATION
AND DISSEMINATION.—The Secretary shall
evaluate the activities funded under this title and report the Sec-
retary’s findings regarding the activities to the Committee on Labor
and Human Resources of the Senate and the Committee on Edu-
cation and the Workforce of the House of Representatives. The
Secretary shall broadly disseminate successful practices developed
by eligible States and eligible partnerships under this title, and
H. R. 6—52
shall broadly disseminate information regarding such practices that
were found to be ineffective.
‘‘SEC. 207. ACCOUNTABILITY FOR PROGRAMS THAT PREPARE TEACH-
ERS.
‘‘(a) DEVELOPMENT OF DEFINITIONS AND REPORTING METHODS.—
Within 9 months of the date of enactment of the Higher Education
Amendments of 1998, the Commissioner of the National Center
for Education Statistics, in consultation with States and institutions
of higher education, shall develop key definitions for terms, and
uniform reporting methods (including the key definitions for the
consistent reporting of pass rates), related to the performance of
elementary school and secondary school teacher preparation pro-
grams.
‘‘(b) STATE
REPORT
CARD
ON
THE
QUALITY
OF
TEACHER
PREPARATION.—Each State that receives funds under this Act shall
provide to the Secretary, within 2 years of the date of enactment
of the Higher Education Amendments of 1998, and annually there-
after, in a uniform and comprehensible manner that conforms with
the definitions and methods established in subsection (a), a State
report card on the quality of teacher preparation in the State,
which shall include at least the following:
‘‘(1) A description of the teacher certification and licensure
assessments, and any other certification and licensure require-
ments, used by the State.
‘‘(2) The standards and criteria that prospective teachers
must meet in order to attain initial teacher certification or
licensure and to be certified or licensed to teach particular
subjects or in particular grades within the State.
‘‘(3) A description of the extent to which the assessments
and requirements described in paragraph (1) are aligned with
the State’s standards and assessments for students.
‘‘(4) The percentage of teaching candidates who passed
each of the assessments used by the State for teacher certifi-
cation and licensure, and the passing score on each assessment
that determines whether a candidate has passed that assess-
ment.
‘‘(5) The percentage of teaching candidates who passed
each of the assessments used by the State for teacher certifi-
cation and licensure, disaggregated and ranked, by the teacher
preparation program in that State from which the teacher
candidate received the candidate’s most recent degree, which
shall be made available widely and publicly.
‘‘(6) Information on the extent to which teachers in the
State are given waivers of State certification or licensure
requirements, including the proportion of such teachers distrib-
uted across high- and low-poverty school districts and across
subject areas.
‘‘(7) A description of each State’s alternative routes to
teacher certification, if any, and the percentage of teachers
certified through alternative certification routes who pass State
teacher certification or licensure assessments.
‘‘(8) For each State, a description of proposed criteria for
assessing the performance of teacher preparation programs
within institutions of higher education in the State, including
indicators of teacher candidate knowledge and skills.
H. R. 6—53
‘‘(9) Information on the extent to which teachers or prospec-
tive teachers in each State are required to take examinations
or other assessments of their subject matter knowledge in the
area or areas in which the teachers provide instruction, the
standards established for passing any such assessments, and
the extent to which teachers or prospective teachers are
required to receive a passing score on such assessments in
order to teach in specific subject areas or grade levels.
‘‘(c) INITIAL REPORT.—
‘‘(1) IN GENERAL.—Each State that receives funds under
this Act, not later than 6 months of the date of enactment
of the Higher Education Amendments of 1998 and in a uniform
and comprehensible manner, shall submit to the Secretary the
information described in paragraphs (1), (5), and (6) of sub-
section (b). Such information shall be compiled by the Secretary
and submitted to the Committee on Labor and Human
Resources of the Senate and the Committee on Education and
the Workforce of the House of Representatives not later than
9 months after the date of enactment of the Higher Education
Amendments of 1998.
‘‘(2) CONSTRUCTION.—Nothing in this subsection shall be
construed to require a State to gather information that is
not in the possession of the State or the teacher preparation
programs in the State, or readily available to the State or
teacher preparation programs.
‘‘(d) REPORT OF THE SECRETARY ON THE QUALITY OF TEACHER
PREPARATION.—
‘‘(1) REPORT CARD.—The Secretary shall provide to Con-
gress, and publish and make widely available, a report card
on teacher qualifications and preparation in the United States,
including all the information reported in paragraphs (1) through
(9) of subsection (b). Such report shall identify States for which
eligible States and eligible partnerships received a grant under
this title. Such report shall be so provided, published and
made available not later than 2 years 6 months after the
date of enactment of the Higher Education Amendments of
1998 and annually thereafter.
‘‘(2) REPORT TO CONGRESS.—The Secretary shall report to
Congress—
‘‘(A) a comparison of States’ efforts to improve teaching
quality; and
‘‘(B) regarding the national mean and median scores
on any standardized test that is used in more than 1
State for teacher certification or licensure.
‘‘(3) SPECIAL
RULE.—In the case of teacher preparation
programs with fewer than 10 graduates taking any single initial
teacher certification or licensure assessment during an aca-
demic year, the Secretary shall collect and publish information
with respect to an average pass rate on State certification
or licensure assessments taken over a 3-year period.
‘‘(e) COORDINATION.—The Secretary, to the extent practicable,
shall coordinate the information collected and published under this
title among States for individuals who took State teacher certifi-
cation or licensure assessments in a State other than the State
in which the individual received the individual’s most recent degree.
‘‘(f ) INSTITUTIONAL REPORT CARDS ON THE QUALITY OF TEACHER
PREPARATION.—
H. R. 6—54
‘‘(1) REPORT CARD.—Each institution of higher education
that conducts a teacher preparation program that enrolls stu-
dents receiving Federal assistance under this Act, not later
than 18 months after the date of enactment of the Higher
Education Amendments of 1998 and annually thereafter, shall
report to the State and the general public, in a uniform and
comprehensible manner that conforms with the definitions and
methods established under subsection (a), the following
information:
‘‘(A) PASS RATE.—(i) For the most recent year for which
the information is available, the pass rate of the institu-
tion’s graduates on the teacher certification or licensure
assessments of the State in which the institution is located,
but only for those students who took those assessments
within 3 years of completing the program.
‘‘(ii) A comparison of the program’s pass rate with
the average pass rate for programs in the State.
‘‘(iii) In the case of teacher preparation programs with
fewer than 10 graduates taking any single initial teacher
certification or licensure assessment during an academic
year, the institution shall collect and publish information
with respect to an average pass rate on State certification
or licensure assessments taken over a 3-year period.
‘‘(B) PROGRAM INFORMATION.—The number of students
in the program, the average number of hours of supervised
practice teaching required for those in the program, and
the faculty-student ratio in supervised practice teaching.
‘‘(C) STATEMENT.—In States that approve or accredit
teacher education programs, a statement of whether the
institution’s program is so approved or accredited.
‘‘(D) DESIGNATION AS LOW-PERFORMING.—Whether the
program has been designated as low-performing by the
State under section 208(a).
‘‘(2) REQUIREMENT.—The information described in para-
graph (1) shall be reported through publications such as school
catalogs and promotional materials sent to potential applicants,
secondary school guidance counselors, and prospective employ-
ers of the institution’s program graduates.
‘‘(3) FINES.—In addition to the actions authorized in section
487(c), the Secretary may impose a fine not to exceed $25,000
on an institution of higher education for failure to provide
the information described in this subsection in a timely or
accurate manner.
‘‘SEC. 208. STATE FUNCTIONS.
‘‘(a) STATE ASSESSMENT.—In order to receive funds under this
Act, a State, not later than 2 years after the date of enactment
of the Higher Education Amendments of 1998, shall have in place
a procedure to identify, and assist, through the provision of technical
assistance, low-performing programs of teacher preparation within
institutions of higher education. Such State shall provide the Sec-
retary an annual list of such low-performing institutions that
includes an identification of those institutions at-risk of being placed
on such list. Such levels of performance shall be determined solely
by the State and may include criteria based upon information
collected pursuant to this title. Such assessment shall be described
in the report under section 207(b).
H. R. 6—55
‘‘(b) TERMINATION OF ELIGIBILITY.—Any institution of higher
education that offers a program of teacher preparation in which
the State has withdrawn the State’s approval or terminated the
State’s financial support due to the low performance of the institu-
tion’s teacher preparation program based upon the State assessment
described in subsection (a)—
‘‘(1) shall be ineligible for any funding for professional
development activities awarded by the Department of Edu-
cation; and
‘‘(2) shall not be permitted to accept or enroll any student
that receives aid under title IV of this Act in the institution’s
teacher preparation program.
‘‘(c) NEGOTIATED RULEMAKING.—If the Secretary develops any
regulations implementing subsection (b)(2), the Secretary shall sub-
mit such proposed regulations to a negotiated rulemaking process,
which shall include representatives of States, institutions of higher
education, and educational and student organizations.
‘‘SEC. 209. GENERAL PROVISIONS.
‘‘(a) METHODS.—In complying with sections 207 and 208, the
Secretary shall ensure that States and institutions of higher edu-
cation use fair and equitable methods in reporting and that the
reporting methods protect the privacy of individuals.
‘‘(b) SPECIAL RULE.—For each State in which there are no
State certification or licensure assessments, or for States that do
not set minimum performance levels on those assessments—
‘‘(1) the Secretary shall, to the extent practicable, collect
data comparable to the data required under this title from
States, local educational agencies, institutions of higher edu-
cation, or other entities that administer such assessments to
teachers or prospective teachers; and
‘‘(2) notwithstanding any other provision of this title, the
Secretary shall use such data to carry out requirements of
this title related to assessments or pass rates.
‘‘(c) LIMITATIONS.—
‘‘(1) FEDERAL CONTROL PROHIBITED.—Nothing in this title
shall be construed to permit, allow, encourage, or authorize
any Federal control over any aspect of any private, religious,
or home school, whether or not a home school is treated as
a private school or home school under State law. This section
shall not be construed to prohibit private, religious, or home
schools from participation in programs or services under this
title.
‘‘(2) NO
CHANGE
IN
STATE
CONTROL
ENCOURAGED
OR
REQUIRED.—Nothing in this title shall be construed to encour-
age or require any change in a State’s treatment of any private,
religious, or home school, whether or not a home school is
treated as a private school or home school under State law.
‘‘(3) NATIONAL SYSTEM OF TEACHER CERTIFICATION PROHIB-
ITED.—Nothing in this title shall be construed to permit, allow,
encourage, or authorize the Secretary to establish or support
any national system of teacher certification.
‘‘SEC. 210. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out this
title $300,000,000 for fiscal year 1999 and such sums as may
be necessary for each of the 4 succeeding fiscal years, of which—
H. R. 6—56
‘‘(1) 45 percent shall be available for each fiscal year to
award grants under section 202;
‘‘(2) 45 percent shall be available for each fiscal year to
award grants under section 203; and
‘‘(3) 10 percent shall be available for each fiscal year to
award grants under section 204.’’.
TITLE III—INSTITUTIONAL AID
SEC. 301. TRANSFERS AND REDESIGNATIONS.
(a) IN
GENERAL.—The Higher Education Act of 1965 is
amended—
(1) by redesignating part D of title III (20 U.S.C. 1066
et seq.) as part F of title III;
(2) by redesignating sections 351, 352, 353, 354, 356, 357,
358, and 360 (20 U.S.C. 1066, 1067, 1068, 1069, 1069b, 1069c,
1069d, and 1069f) as sections 391, 392, 393, 394, 395, 396,
397, and 399, respectively;
(3) by transferring part B of title VII (20 U.S.C. 1132c
et seq.) to title III to follow part C of title III (20 U.S.C.
1065 et seq.), and redesignating such part B as part D;
(4) by redesignating sections 721 through 728 (20 U.S.C.
1132c and 1132c–7) as sections 341 through 348, respectively;
(5) by transferring subparts 1 and 3 of part B of title
X (20 U.S.C. 1135b et seq. and 1135d et seq.) to title III
to follow part D of title III (as redesignated by paragraph
(3)), and redesignating such subpart 3 as subpart 2;
(6) by inserting after part D of title III (as redesignated
by paragraph (3)) the following:
‘‘PART E—MINORITY SCIENCE AND
ENGINEERING IMPROVEMENT PROGRAM’’;
(7) by redesignating sections 1021 through 1023 (20 U.S.C.
1135b and 1135b–2), and sections 1041, 1042, 1043, 1044, 1046,
and 1047 (20 U.S.C. 1135d, 1135d–1, 1135d–2, 1135d–3, 1135d–
5, and 1135d–6) as sections 351 through 353, and sections
361, 362, 363, 364, 365, and 366, respectively; and
(8) by repealing section 366 (as redesignated by paragraph
(7)) (20 U.S.C. 1135d–6).
(b) CONFORMING AMENDMENTS.—Section 361 (as redesignated
by subsection (a)(7)) (20 U.S.C. 1135d) is amended—
(1) in paragraph (1), by inserting ‘‘and’’ after the semicolon;
(2) in paragraph (2), by striking ‘‘; and’’ and inserting
a period; and
(3) by striking paragraph (3).
(c) CROSS REFERENCES.—Title III (20 U.S.C. 1051 et seq.) is
amended—
(1) in section 311(b) (20 U.S.C. 1057(b)), by striking
‘‘360(a)(1)’’ and inserting ‘‘399(a)(1)’’;
(2) in section 312 (20 U.S.C. 1058)—
(A) in subsection (b)(1)(B), by striking ‘‘352(b)’’ and
inserting ‘‘392(b)’’; and
(B) in subsection (c)(2), by striking ‘‘352(a)’’ and
inserting ‘‘392(a)’’;
H. R. 6—57
(3) in section 313(b) (20 U.S.C. 1059(b)), by striking
‘‘354(a)(1)’’ and inserting ‘‘394(a)(1)’’;
(4) in section 342 (as redesignated by subsection (a)(4))
(20 U.S.C. 1132c–1)—
(A) in paragraph (3), by striking ‘‘723(b)’’ and inserting
‘‘343(b)’’;
(B) in paragraph (4), by striking ‘‘723’’ and inserting
‘‘343’’;
(C) in the matter preceding subparagraph (A) of
paragraph (5), by striking ‘‘724(b)’’ and inserting ‘‘344(b)’’;
(D) in paragraph (8), by striking ‘‘725(1)’’ and inserting
‘‘345(1)’’; and
(E) in paragraph (9), by striking ‘‘727’’ and inserting
‘‘347’’;
(5) in section 343 (as redesignated by subsection (a)(4))
(20 U.S.C. 1132c–2)—
(A) in subsection (a), by striking ‘‘724’’ and inserting
‘‘344’’; and
(B) in subsection (b)—
(i) in the matter preceding paragraph (1), by
striking ‘‘725(1) and 726’’ and inserting ‘‘345(1) and
346’’;
(ii) in paragraph (10), by striking ‘‘724’’ and insert-
ing ‘‘344’’; and
(iii) in subsection (d), by striking ‘‘723(c)(1)’’ and
inserting ‘‘343(c)(1)’’;
(6) in section 345(2) (as redesignated by subsection (a)(4))
(20 U.S.C. 1132c–4(2)), by striking ‘‘723’’ and inserting ‘‘343’’;
(7) in section 348 (as redesignated by subsection (a)(4))
(20 U.S.C. 1132c–7), by striking ‘‘725(1)’’ and inserting ‘‘345(1)’’;
(8) in section 353(a) (as redesignated by subsection (a)(7))
(20 U.S.C. 1135b–2(a))—
(A) in paragraph (1), by striking ‘‘1046(6)’’ and
inserting ‘‘365(6)’’;
(B) in paragraph (2), by striking ‘‘1046(7)’’ and
inserting ‘‘365(7)’’;
(C) in paragraph (3), by striking ‘‘1046(8)’’ and
inserting ‘‘365(8)’’; and
(D) in paragraph (4), by striking ‘‘1046(9)’’ and
inserting ‘‘365(9)’’;
(9) in section 361(1) (as redesignated by subsection (a)(7))
(20 U.S.C. 1135d(1)), by striking ‘‘1046(3)’’ and inserting
‘‘365(3)’’;
(10) in section 362(a) (as redesignated by subsection (a)(7))
(20 U.S.C. 1135d–1(a))—
(A) in the matter preceding paragraph (1), by striking
‘‘1041’’ and inserting ‘‘361’’; and
(B) in paragraph (1), by striking ‘‘1021(b)’’ and
inserting ‘‘351(b)’’; and
(11) in section 391(b)(6) (as redesignated by subsection
(a)(2)), by striking ‘‘357’’ and inserting ‘‘396’’.
SEC. 302. FINDINGS.
Section 301(a) (20 U.S.C. 1051(a)) is amended—
(1) by redesignating paragraphs (3) through (7) as para-
graphs (4) through (8), respectively; and
(2) by inserting after paragraph (2) the following:
H. R. 6—58
‘‘(3) in order to be competitive and provide a high-quality
education for all, institutions of higher education should
improve their technological capacity and make effective use
of technology;’’.
SEC. 303. STRENGTHENING INSTITUTIONS.
(a) GRANTS.—Section 311 (20 U.S.C. 1057) is amended by
adding at the end the following:
‘‘(c) AUTHORIZED
ACTIVITIES.—Grants awarded under this
section shall be used for 1 or more of the following activities:
‘‘(1) Purchase, rental, or lease of scientific or laboratory
equipment for educational purposes, including instructional and
research purposes.
‘‘(2) Construction, maintenance, renovation, and improve-
ment in classrooms, libraries, laboratories, and other instruc-
tional facilities, including the integration of computer tech-
nology into institutional facilities to create smart buildings.
‘‘(3) Support of faculty exchanges, faculty development, and
faculty fellowships to assist in attaining advanced degrees in
the field of instruction of the faculty.
‘‘(4) Development and improvement of academic programs.
‘‘(5) Purchase of library books, periodicals, and other edu-
cational materials, including telecommunications program
material.
‘‘(6) Tutoring, counseling, and student service programs
designed to improve academic success.
‘‘(7) Funds management, administrative management, and
acquisition of equipment for use in strengthening funds
management.
‘‘(8) Joint use of facilities, such as laboratories and libraries.
‘‘(9) Establishing or improving a development office to
strengthen or improve contributions from alumni and the pri-
vate sector.
‘‘(10) Establishing or improving an endowment fund.
‘‘(11) Creating or improving facilities for Internet or other
distance learning academic instruction capabilities, including
purchase or rental of telecommunications technology equipment
or services.
‘‘(12) Other activities proposed in the application submitted
pursuant to subsection (c) that—
‘‘(A) contribute to carrying out the purposes of the
program assisted under this part; and
‘‘(B) are approved by the Secretary as part of the
review and acceptance of such application.
‘‘(d) ENDOWMENT FUND.—
‘‘(1) IN GENERAL.—An eligible institution may use not more
than 20 percent of the grant funds provided under this part
to establish or increase an endowment fund at such institution.
‘‘(2) MATCHING REQUIREMENT.—In order to be eligible to
use grant funds in accordance with paragraph (1), the eligible
institution shall provide matching funds from non-Federal
sources, in an amount equal to or greater than the Federal
funds used in accordance with paragraph (1), for the establish-
ment or increase of the endowment fund.
‘‘(3) COMPARABILITY.—The provisions of part C, regarding
the establishment or increase of an endowment fund, that
H. R. 6—59
the Secretary determines are not inconsistent with this sub-
section, shall apply to funds used under paragraph (1).’’.
(b) ENDOWMENT FUND DEFINITION.—Section 312 (as amended
by section 301(c)(2)) (20 U.S.C. 1058) is amended—
(1) by redesignating subsections (c) through (f ) as sub-
sections (d) through (g), respectively; and
(2) by inserting after subsection (b) the following:
‘‘(c) ENDOWMENT FUND.—For the purpose of this part, the term
‘endowment fund’ means a fund that—
‘‘(1) is established by State law, by an institution of higher
education, or by a foundation that is exempt from Federal
income taxation;
‘‘(2) is maintained for the purpose of generating income
for the support of the institution; and
‘‘(3) does not include real estate.’’.
(c) DURATION
OF GRANT.—Section 313 (20 U.S.C. 1059) is
amended—
(1) in subsection (b), by inserting ‘‘subsection (c) and a
grant under’’ before ‘‘section 394(a)(1)’’; and
(2) by adding at the end the following:
‘‘(d) WAIT-OUT-PERIOD.—Each eligible institution that received
a grant under this part for a 5-year period shall not be eligible
to receive an additional grant under this part until 2 years after
the date on which the 5-year grant period terminates.’’.
(d) APPLICATIONS.—Title III is amended by striking section
314 (20 U.S.C. 1059a) and inserting the following:
‘‘SEC. 314. APPLICATIONS.
‘‘Each eligible institution desiring to receive assistance under
this part shall submit an application in accordance with the require-
ments of section 391.’’.
(e) AMERICAN INDIAN TRIBALLY CONTROLLED COLLEGES AND
UNIVERSITIES.—Section 316 (20 U.S.C. 1059c) is amended to read
as follows:
‘‘SEC. 316. AMERICAN INDIAN TRIBALLY CONTROLLED COLLEGES AND
UNIVERSITIES.
‘‘(a) PROGRAM AUTHORIZED.—The Secretary shall provide grants
and related assistance to Indian Tribal Colleges and Universities
to enable such institutions to improve and expand their capacity
to serve Indian students.
‘‘(b) DEFINITIONS.—In this section:
‘‘(1) INDIAN.—The term ‘Indian’ has the meaning given
the term in section 2 of the Tribally Controlled College or
University Assistance Act of 1978.
‘‘(2) INDIAN TRIBE.—The term ‘Indian tribe’ has the meaning
given the term in section 2 of the Tribally Controlled College
or University Assistance Act of 1978.
‘‘(3) TRIBAL COLLEGE OR UNIVERSITY.—The term ‘Tribal Col-
lege or University’ has the meaning give the term ‘tribally
controlled college or university’ in section 2 of the Tribally
Controlled College or University Assistance Act of 1978, and
includes an institution listed in the Equity in Educational
Land Grant Status Act of 1994.
‘‘(4) INSTITUTION OF HIGHER EDUCATION.—The term ‘institu-
tion of higher education’ means an institution of higher edu-
cation as defined in section 101(a), except that paragraph (2)
of such section shall not apply.
H. R. 6—143
‘‘(1) AWARD YEARS PRIOR TO 2000.—For award years prior
to award year 2000, the applicable maximum cohort default
rate is 30 percent.
‘‘(2) AWARD YEAR 2000 AND SUCCEEDING AWARD YEARS.—
For award year 2000 and subsequent years, the applicable
maximum cohort default rate is 25 percent.’’.
(d) COHORT DEFAULT RATE DEFINITION.—Section 462(g) (as
redesignated by subsection (a)(2)(G)) is amended—
(1) by striking the subsection heading and paragraphs (1)
and (2) and inserting the following:
‘‘(g) DEFINITION OF COHORT DEFAULT RATE.—’’;
(2) by striking ‘‘(3)(A) For award year 1994 and any
succeeding award year, the term’’ and inserting the following:
‘‘(1)(A) The term’’;
(3) in paragraph (1) (as redesignated by paragraph (2))—
(A) by striking subparagraphs (B) and (E); and
(B) by redesignating subparagraphs (C), (D), (F), and
(G) as subparagraphs (B), (C), (D), and (F), respectively;
(C) by inserting after subparagraph (D) (as redesig-
nated by subparagraph (B)) the following:
‘‘(E) In determining the number of students who default
before the end of such award year, the institution, in calculating
the cohort default rate, shall exclude—
‘‘(i) any loan on which the borrower has, after the
time periods specified in paragraph (2)—
‘‘(I) voluntarily made 6 consecutive payments;
‘‘(II) voluntarily made all payments currently due;
‘‘(III) repaid in full the amount due on the
loan; or
‘‘(IV) received a deferment or forbearance, based
on a condition that began prior to such time periods;
‘‘(ii) any loan which has, after the time periods specified
in paragraph (2), been rehabilitated or canceled; and
‘‘(iii) any other loan that the Secretary determines
should be excluded from such determination.’’; and
(4) by striking paragraph (4) and inserting the following:
‘‘(2) For purposes of calculating the cohort default rate
under this subsection, a loan shall be considered to be in
default—
‘‘(A) 240 days (in the case of a loan repayable monthly),
or
‘‘(B) 270 days (in the case of a loan repayable quar-
terly),
after the borrower fails to make an installment payment when
due or to comply with other terms of the promissory note.’’.
(e) CONFORMING AMENDMENTS.—Section 462 (20 U.S.C. 1087bb)
is amended—
(1) in the matter following paragraphs (1)(B) and (2)(D)(ii)
of subsection (a), by inserting ‘‘cohort’’ before ‘‘default’’ each
place the term appears;
(2) in the matter following paragraphs (2)(B) and (3)(C)
of subsection (b) (as redesignated by subsection (a)(2)(G)), by
inserting ‘‘cohort’’ before ‘‘default’’ each place the term appears;
(3) in subsection (d)(2) (as redesignated by subsection
(a)(2)(G)), by inserting ‘‘cohort’’ before ‘‘default’’; and
(4) in subsection (g)(1)(F) (as redesignated by subsections
(a)(2)(G) and (d)(3)(B)), by inserting ‘‘cohort’’ before ‘‘default’’.
H. R. 6—144
SEC. 463. AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION.
(a) CONTENTS
OF AGREEMENTS.—Section 463(a) (20 U.S.C.
1087cc(a)) is amended—
(1) by amending subparagraph (B) of paragraph (2) to
read as follows:
‘‘(B) a capital contribution by an institution in an
amount equal to one-third of the Federal capital contribu-
tions described in subparagraph (A);’’;
(2) by striking paragraph (4); and
(3) by redesignating paragraphs (5) through (10) as para-
graphs (4) through (9);
(b) AGREEMENTS WITH CREDIT BUREAUS.—Section 463(c) is
amended—
(1) in paragraph (1)—
(A) by striking ‘‘the Secretary shall’’ and inserting ‘‘the
Secretary and each institution of higher education partici-
pating in the program under this part shall’’; and
(B) by inserting ‘‘and regarding loans held by the Sec-
retary or an institution’’ after ‘‘section 467’’;
(2) in paragraph (2)—
(A) in the matter preceding subparagraph (A), by strik-
ing ‘‘by the Secretary’’ and all that follows through ‘‘of—
’’ and inserting ‘‘by the Secretary or an institution, as
the case may be, to such organizations, with respect to
any loan held by the Secretary or the institution, respec-
tively, of—’’;
(B) by amending subparagraph (A) to read as follows:
‘‘(A) the date of disbursement and the amount of such
loans made to any borrower under this part at the time
of disbursement of the loan;’’;
(C) in subparagraph (B)—
(i) by inserting ‘‘the repayment and’’ after ‘‘concern-
ing’’; and
(ii) by striking ‘‘any defaulted’’ and inserting
‘‘such’’; and
(D) in subparagraph (C), by inserting ‘‘, or upon can-
cellation or discharge of the borrower’s obligation on the
loan for any reason’’ before the period;
(3) in paragraph (3)—
(A) in the matter preceding subparagraph (A)—
(i) by inserting ‘‘or an institution’’ after ‘‘from the
Secretary’’; and
(ii) by striking ‘‘until—’’ and inserting ‘‘until the
loan is paid in full.’’; and
(B) by striking subparagraphs (A) and (B);
(4) by amending paragraph (4) to read as follows:
‘‘(4)(A) Except as provided in subparagraph (B), an institution
of higher education, after consultation with the Secretary and
pursuant to the agreements entered into under paragraph (1), shall
disclose at least annually to any credit bureau organization with
which the Secretary has such an agreement the information set
forth in paragraph (2), and shall disclose promptly to such credit
bureau organization any changes to the information previously dis-
closed.
‘‘(B) The Secretary may promulgate regulations establishing
criteria under which an institution of higher education may cease
H. R. 6—150
determined under such subsection by 9, and multiplying the result
by the number of months in the period of enrollment.’’.
SEC. 474. FAMILY CONTRIBUTION FOR INDEPENDENT STUDENTS WITH-
OUT DEPENDENTS OTHER THAN A SPOUSE.
(a) ADJUSTMENTS FOR ENROLLMENT PERIODS OF LESS THAN
NINE MONTHS.—Section 476(a) (20 U.S.C. 1087pp(a)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph (1)(B);
(2) by inserting ‘‘and’’ after the semicolon at the end of
paragraph (2); and
(3) by inserting after paragraph (2) the following new para-
graph:
‘‘(3) for periods of enrollment of less than 9 months, for
purposes other than subpart 2 of part A—
‘‘(A) dividing the quotient resulting under paragraph
(2) by 9; and
‘‘(B) multiplying the result by the number of months
in the period of enrollment;’’.
(b) 
CONTRIBUTION
FROM
AVAILABLE
INCOME.—Section
476(b)(1)(A)(iv) is amended—
(1) by striking ‘‘allowance of—’’ and inserting ‘‘allowance
of the following amount (or a successor amount prescribed
by the Secretary under section 478)—’’;
(2) in subclauses (I) and (II), by striking ‘‘$3,000’’ each
place the term appears and inserting ‘‘$5,000’’; and
(3) in subclause (III), by striking ‘‘$6,000’’ and inserting
‘‘$8,000’’.
SEC. 475. FAMILY CONTRIBUTION FOR INDEPENDENT STUDENTS WITH
DEPENDENTS OTHER THAN A SPOUSE.
Section 477(a) (20 U.S.C. 1087qq(a)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph (2);
(2) by inserting ‘‘and’’ after the semicolon at the end of
paragraph (3); and
(3) by inserting after paragraph (3) the following new para-
graph:
‘‘(4) for periods of enrollment of less than 9 months, for
purposes other than subpart 2 of part A—
‘‘(A) dividing the quotient resulting under paragraph
(3) by 9; and
‘‘(B) multiplying the result by the number of months
in the period of enrollment;’’.
SEC. 476. REGULATIONS; UPDATED TABLES AND AMOUNTS.
Section 478(b) (20 U.S.C. 1087rr(b)) is amended—
(1) by striking ‘‘For each academic year’’ and inserting
the following:
‘‘(1) REVISED TABLES.—For each academic year’’; and
(2) by adding at the end the following new paragraph:
‘‘(2) REVISED AMOUNTS.—For each academic year after aca-
demic year 2000–2001, the Secretary shall publish in the Fed-
eral Register revised income protection allowances for the pur-
pose of sections 475(g)(2)(D) and 476(b)(1)(A)(iv). Such revised
allowances shall be developed by increasing each of the dollar
amounts contained in such section by a percentage equal to
the estimated percentage increase in the Consumer Price Index
(as determined by the Secretary) between December 1999 and