‘‘(3) not to exceed 11 percent shall be available 
for demonstration projects under paragraph (1) of 
section 804(a); 
‘‘(4) not to exceed 11 percent shall be available 
for training and resource centers under paragraph 
(2) of section 804(a); and 
‘‘(5) not to exceed 3 percent shall be available 
for research under paragraph (3) of section 804(a). 
‘‘(c) AVAILABILITY
OF APPROPRIATIONS.—Appro-
priations under this title shall not be available for the pay-
ment of compensation of students for employment by em-
ployers under arrangements pursuant to this title. 
‘‘SEC. 803. GRANTS FOR COOPERATIVE EDUCATION. 
‘‘(a) GRANTS AUTHORIZED.—
‘‘(1) IN GENERAL.—The Secretary is author-
ized—
‘‘(A) from the amount available under sec-
tion 802(b)(1) in each fiscal year and in accord-
ance with the provisions of this title, to make 
grants to institutions of higher education or 
combinations of such institutions that have not 
received a grant under this paragraph in the 
10-year period preceding the date for which a 
grant under this section is requested to pay the 
Federal share of the cost of planning, estab-
lishing, expanding, or carrying out programs of 
cooperative education by such institutions or 
combinations of institutions; and 
‘‘(B) from the amount available under sec-
tion 802(b)(2) in each fiscal year and in accord-
ance with the provisions of this title, to make 
grants to institutions of higher education that 
are operating an existing cooperative education 
program as determined by the Secretary to pay 
the cost of planning, establishing, expanding, or 
carrying out programs of cooperative education 
by such institutions. 
‘‘(2) PROGRAM
REQUIREMENT.—Cooperative 
education programs assisted under this section shall 
provide alternating or parallel periods of academic 
study and of public or private employment, giving 
students work experience related to their academic 
or occupational objectives and the opportunity to 
earn the funds necessary for continuing and com-
pleting their education. 
‘‘(3) AMOUNT OF GRANTS.—
‘‘(A) The amount of each grant awarded 
pursuant to paragraph (1)(A) to any institution 
of higher education or combination of such in-
stitutions in any fiscal year shall not exceed 
$500,000. 
‘‘(B)(i) Except as provided in clauses (ii) 
and (iii), the Secretary shall award grants in 
each fiscal year to each institution of higher 
education described in paragraph (1)(B) that 
has an application approved under subsection 
(b) in an amount which bears the same ratio to 
the amount reserved pursuant to section 
802(b)(2) for such fiscal year as the number of 
unduplicated students placed in cooperative 
education jobs during the preceding fiscal year 
(other than cooperative education jobs under 
section 804 and as determined by the Sec-
retary) by such institution of higher education 
bears to the total number of all such students 
placed in such jobs during the preceding fiscal 
year by all such institutions. 
‘‘(ii) No institution of higher education 
shall receive a grant pursuant to paragraph 
(1)(B) in any fiscal year in an amount which 
exceeds 25 percent of such institution’s cooper-
ative education program’s personnel and oper-
ating budget for the preceding fiscal year.
‘‘(iii) The minimum annual grant amount 
which an institution of higher education is eligi-
ble to receive under paragraph (1)(B) is $1,000 
and the maximum annual grant amount is 
$75,000. 
‘‘(4) LIMITATION.—The Secretary shall not 
award grants pursuant to paragraphs (1)(A) and 
(1)(B) to the same institution of higher education or 
combination of such institution in any one fiscal 
year. 
‘‘(5) USES.—Grants under paragraph (1)(B) 
shall be used exclusively—
‘‘(A) to expand the quality and participa-
tion of a cooperative education program; 
‘‘(B) for outreach in new curricular areas; 
and 
‘‘(C) for outreach to potential participants 
including underrepresented and nontraditional 
populations. 
‘‘(b) APPLICATIONS.—Each institution of higher edu-
cation or combination of such institutions desiring to re-
ceive a grant under this section shall submit an application 
to the Secretary at such time and in such manner as the 
Secretary shall prescribe. Each such application shall—
‘‘(1) set forth the program or activities for 
which a grant is authorized under this section; 
‘‘(2) specify each portion of such program or 
activities which will be performed by a nonprofit or-
ganization or institution other than the applicant 
and the compensation to be paid for such perform-
ance; 
‘‘(3) provide that the applicant will expend dur-
ing such fiscal year for the purpose of such program 
or activities not less than the amount expended for 
such purpose during the previous fiscal year; 
‘‘(4) describe the plans which the applicant will 
carry out to assure, and contain a formal statement 
of the institution’s commitment which assures, that 
the applicant will continue the cooperative education 
program beyond the 5-year period of Federal assist-
ance described in subsection (c)(1) at a level which 
is not less than the total amount expended for such 
program during the first year such program was as-
sisted under this section; 
‘‘(5) provide that, in the case of an institution 
of higher education that provides a 2-year program 
which is acceptable for full credit toward a bach-
elor’s degree, the cooperative education program will 
be available to students who are certificate or asso-
ciate degree candidates and who carry at least one-
half the normal full-time academic workload; 
‘‘(6) provide that the applicant will—
‘‘(A) make such reports as may be essen-
tial to ensure that the applicant is complying 
with the provisions of this section, including the 
reports for the second and each succeeding fis-
cal year for which the applicant receives a grant 
with respect to the impact of the cooperative 
education program in the previous fiscal year, 
including—
‘‘(i) the number of unduplicated stu-
dent applicants in the cooperative edu-
cation program; 
‘‘(ii) the number of unduplicated stu-
dents placed in cooperative education jobs; 
‘‘(iii) the number of employers who 
have hired cooperative education students; 
‘‘(iv) the income for students derived 
from working in cooperative education 
jobs; and 
‘‘(v) the increase or decrease in the 
number of unduplicated students placed in 
cooperative education jobs in each fiscal
year compared to the previous fiscal year; 
and 
‘‘(B) keep such records as are essential to 
ensure that the applicant is complying with the 
provisions of this title, including the notation of 
cooperative education employment on the stu-
dent’s transcript; 
‘‘(7) describe the extent to which programs in 
the academic discipline for which the application is 
made have had a favorable reception by public and 
private sector employers; 
‘‘(8) describe the extent to which the institution 
is committed to extending cooperative education on 
an institution-wide basis for all students who can 
benefit; 
‘‘(9) describe the plans that the applicant will 
carry out to evaluate the applicant’s cooperative edu-
cation program at the end of the grant period; 
‘‘(10) provide for such fiscal control and fund 
accounting procedures as may be necessary to assure 
proper disbursement of, and accounting for, Federal 
funds paid to the applicant under this title; 
‘‘(11) demonstrate a commitment to serving all 
underserved populations; and
‘‘(12) include such other information as is es-
sential to carry out the provisions of this title. 
‘‘(c) DURATION OF GRANTS; FEDERAL SHARE.—
‘‘(1) DURATION OF GRANTS.—No individual in-
stitution of higher education may receive, individ-
ually or as a participant in a combination of such in-
stitutions—
‘‘(A) a grant pursuant to subsection 
(a)(1)(A) for more than 5 fiscal years; or 
‘‘(B) a grant pursuant to subsection 
(a)(1)(B) for more than 5 fiscal years. 
‘‘(2) FEDERAL SHARE.—The Federal share of a 
grant under section 803(a)(1)(A) may not exceed—
‘‘(A) 85 percent of the cost of carrying out 
the program or activities described in the appli-
cation in the first year the applicant receives a 
grant under this section; 
‘‘(B) 70 percent of such cost in the second 
such year; 
‘‘(C) 55 percent of such cost in the third 
such year; 
‘‘(D) 40 percent of such cost in the fourth 
such year; and 
‘‘(E) 25 percent of such cost in the fifth 
such year.
‘‘(3) SPECIAL RULE.—Any provision of law to 
the contrary notwithstanding, the Secretary shall not 
waive the provisions of this subsection. 
‘‘(d) MAINTENANCE OF EFFORT.—If the Secretary 
determines that a recipient of funds under this section has 
failed to maintain the fiscal effort described in subsection 
(b)(3), then the Secretary may elect not to make grant 
payments under this section to such recipient. 
‘‘(e) FACTORS FOR SPECIAL CONSIDERATION OF AP-
PLICATIONS.—
‘‘(1) IN GENERAL.—In approving applications 
under this section, the Secretary shall give special 
consideration to applications from institutions of 
higher education or combinations of such institu-
tions for programs which show the greatest promise 
of success because of—
‘‘(A) the extent to which programs in the 
academic discipline with respect to which the 
application is made have had a favorable recep-
tion by public and private sector employers; 
‘‘(B) the strength of the commitment of 
the institution of higher education or combina-
tion of such institutions to cooperative edu-
cation as demonstrated by the plans and for-
malized institutional commitment statement
which such institution or combination has made 
to continue the program after the termination 
of Federal financial assistance, 
‘‘(C) the extent to which the institution or 
combination is committed to extending coopera-
tive education for all students who can benefit, 
and 
‘‘(D) such other factors as are consistent 
with the purposes of this section. 
‘‘(2) ADDITIONAL SPECIAL CONSIDERATION.—
The Secretary shall also give special consideration to 
applications from institutions of higher education or 
combinations of such institutions which demonstrate 
a commitment to serving all underserved popu-
lations. 
‘‘SEC. 804. DEMONSTRATION AND INNOVATION PROJECTS; 
TRAINING AND RESOURCE CENTERS; AND RE-
SEARCH. 
‘‘(a) AUTHORIZATION.—The Secretary is authorized, 
in accordance with the provisions of this section, to make 
grants and enter into contracts for—
‘‘(1) the conduct of demonstration projects de-
signed to demonstrate or determine the feasibility or 
value of innovative methods of cooperative education
from the amounts available in each fiscal year under 
section 802(b)(3); 
‘‘(2) the conduct of training and resource cen-
ters designed to—
‘‘(A) train personnel in the field of cooper-
ative education; 
‘‘(B) improve materials used in cooperative 
education programs if such improvement is con-
ducted in conjunction with other activities de-
scribed in this paragraph; 
‘‘(C) furnish technical assistance to institu-
tions of higher education to increase the poten-
tial of the institution to continue to conduct a 
cooperative education program without Federal 
assistance; 
‘‘(D) encourage model cooperative edu-
cation programs which furnish education and 
training in occupations in which there is a na-
tional need; 
‘‘(E) support partnerships under which an 
institution carrying out a comprehensive cooper-
ative education program joins with one or more 
institutions of higher education in order to (i) 
assist the institution other than the comprehen-
sive cooperative education institution to develop
‘‘(A) The Secretary may not use more than 
3 percent of the amount appropriated to carry 
out this section in each fiscal year to enter into 
contracts described in paragraph (1)(A). 
‘‘(B) The Secretary may use not more 
than 3 percent of the amount appropriated to 
carry out this section in each fiscal year to 
enter into contracts described in paragraph 
(1)(B). 
‘‘(c) SUPPLEMENT NOT SUPPLANT.—A recipient of 
a grant or contract under this section may use the funds 
provided only so as to supplement and, to the extent pos-
sible, increase the level of funds that would, in the absence 
of such funds, be made available from non-Federal sources 
to carry out the activities supported by such grant or con-
tract, and in no case to supplant such funds from non-
Federal sources.’’. 
SEC. 8. STUDY. 
(a) IN GENERAL.—The Secretary of Education shall 
commission the National Research Council to conduct a 
national study to determine the viability of developing and 
implementing standards in environmental, health, and 
safety areas to provide for differential regulation of indus-
trial laboratories and facilities, on the one hand, and re-
search and teaching laboratories on the other. The Na-
tional Research Council shall make specific recommenda-
tions for statutory and regulatory changes that are needed 
to develop such a differential approach. 
(b) REPORT.—The Secretary of Education shall sub-
mit the list of those regulations that impose the greatest 
compliance costs on institutions of higher education and 
make recommendations for statutory changes to ease the 
compliance burden to the Committee on Health, Edu-
cation, Labor, and Pensions of the Senate and the Com-
mittee on Education and the Workforce of the House of 
Representatives. 
SEC. 
9. 
ARTICULATION 
AGREEMENT 
DEMONSTRATION 
PROGRAM. 
Part G of title IV is amended by inserting after sec-
tion 486 (20 U.S.C. 1093) the following new section: 
‘‘SEC. 486A. ARTICULATION AGREEMENT DEMONSTRATION 
PROGRAM. 
‘‘(a) PURPOSE; DEFINITION.——
‘‘(1) PURPOSE.—It is the purpose of this sec-
tion to allow demonstration programs that are mon-
itored by the Department of Education to encourage 
institutions of higher education to enter into articu-
lation agreements or consortia groups, as a means to 
lower tuition prices to students.
‘‘(2) DEFINITION.—For the purposes of this 
section, the term ‘articulation agreement’ means an 
agreement between institutions of higher education 
that specifies the acceptability of courses in transfer 
toward meeting specific degree requirements. 
‘‘(b) DEMONSTRATION PROGRAMS AUTHORIZED.—
‘‘(1) IN GENERAL.—The Secretary is authorized 
to select institutions of higher education, systems of 
such institutions, or consortia of such institutions 
for voluntary participation in an articulation agree-
ment demonstration program. 
‘‘(2) ELIGIBLE APPLICANTS.—
‘‘(A) ELIGIBLE INSTITUTIONS.—Except as 
provided in subparagraphs (B), (C), and (D), 
only an institution of higher education that is 
eligible to participate in programs under this 
title shall be eligible to participate in the articu-
lation program authorized under this section. 
‘‘(B) PROHIBITION.—An institution of 
higher 
education 
described 
in 
section 
102(a)(1)(C) shall not be eligible to participate 
in the articulation program authorized under 
this section. 
‘‘(C) SPECIAL RULE.—Subject to subpara-
graph (B), an institution of higher education
that meets the requirements of subsection (a) of 
section 102, other than the requirement of 
paragraph (3)(A) or (3)(B) of such subsection, 
and that provides a 2-year or 4-year program of 
instruction for which the institution awards an 
associate or baccalaureate degree, shall be eligi-
ble to participate in the demonstration program 
authorized under this section. 
‘‘(c) APPLICATION.—
‘‘(1) IN GENERAL.—Each institution, system, 
or consortium of institutions desiring to participate 
in a demonstration program under this section shall 
submit an application to the Secretary at such time 
and in such manner as the Secretary may require. 
‘‘(2) CONTENTS.—Each application shall in-
clude—
‘‘(A) a description of the institution, sys-
tem, or consortium’s consultation with a recog-
nized accrediting agency or association with re-
spect to quality assurances for the articulation 
programs to be offered; 
‘‘(B) a description of the articulation pro-
gram to be offered; 
‘‘(C) a description of the students to whom 
the articulation programs will be offered;
‘‘(D) an assurance that the institution, 
system, or consortium will offer full cooperation 
with the ongoing evaluations of the demonstra-
tion program provided for in this section; and 
‘‘(E) such other information as the Sec-
retary may require. 
‘‘(d) SELECTION.—
‘‘(1) IN GENERAL.—For the first year of the 
demonstration program authorized under this sec-
tion, the Secretary is authorized to select for partici-
pation in the program not more than 100 institu-
tions, systems of institutions, or consortia of institu-
tions. For the third year of the demonstration pro-
gram authorized under this section, the Secretary 
may select not more than 250 institutions, systems, 
or consortia, in addition to the institutions, systems, 
or consortia selected pursuant to the preceding sen-
tence, to participate in the demonstration program if 
the Secretary determines that such expansion is war-
ranted based on the evaluations conducted in accord-
ance with subsections (f) and (g). 
‘‘(2) CONSIDERATIONS.—In selecting institu-
tions to participate in the articulation program in 
the first or succeeding years of the program, the 
Secretary shall take into account—
‘‘(A) the number and quality of applica-
tions received; 
‘‘(B) the Department’s capacity to oversee 
and monitor each institution’s participation; 
‘‘(C) an applicant’s—
‘‘(i) financial responsibility; 
‘‘(ii) administrative capability; and 
‘‘(D) the need to ensure the participation 
of a diverse group of institutions with respect to 
size, mission, and geographic distribution. 
‘‘(3) PRIORITY.—In selecting institutions to 
participate in the articulation program in the first or 
succeeding years of the program, the Secretary shall 
give priority to applicants that involve a large num-
ber of schools; public and private agreements; inno-
vative technology to help reduce costs; and, multi-
state projects. 
‘‘(4) NOTIFICATION.—The Secretary shall make 
available to the public and to the Committee on 
Labor and Human Resources of the Senate and the 
Committee on Education and the Workforce of the 
House of Representatives a list of institutions, sys-
tems or consortia selected to participate in the ar-
ticulation program authorized by this section. 
‘‘(e) EVALUATIONS AND REPORTS.——
‘‘(1) EVALUATION.—The Secretary shall evalu-
ate the demonstration programs authorized under 
this section on an annual basis. Such evaluations 
specifically shall review—
‘‘(A) the extent to which the institution, 
system or consortium has met the goals set 
forth in its application to the Secretary; 
‘‘(B) the number and types of institutions 
participating in the programs offered; 
‘‘(C) the cost containment strategies pur-
sued and the success of such strategies; and 
‘‘(D) the effective use of technologies to 
keep college prices low, while maintaining qual-
ity. 
‘‘(2) REPORTS.—
‘‘(A) IN GENERAL.—Within 18 months of 
the initiation of the demonstration program, the 
Secretary shall report to the Committee on 
Labor and Human Resources of the Senate and 
the Committee on Education and the Workforce 
of the House of Representatives with respect to 
the evaluations of the demonstration programs 
authorized under this section. 
‘‘(B) ADDITIONAL
REPORTS.—The Sec-
retary shall provide additional reports to the
Committee on Labor and Human Resources of 
the Senate and the Committee on Education 
and the Workforce of the House of Representa-
tives on an annual basis regarding—
‘‘(i) the demonstration programs au-
thorized under this section; and 
‘‘(ii) best practices to contain college 
costs.’’. 
SEC. 10. ADVISORY COMMITTEE ON STUDENT FINANCIAL 
ASSISTANCE. 
Section 491(j) (20 U.S.C. 1098(j)) is amended 
(1) by striking ‘‘and’’ at the end of paragraph 
(4); 
(2) by striking the period at the end of para-
graph (5) and inserting ‘‘; and’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(6) convene a task force of experts, to be rep-
resentative of the key constituents in higher edu-
cation—
‘‘(A) to determine the best methods to fi-
nance higher education in the long-term; 
‘‘(B) to help public institutions utilize 
long-term budgeting to plan for the future;
‘‘(C) to review the trends of financing of 
higher education; 
‘‘(D) to define the role played by the 
States, the Federal government, families, and 
outside entities in financing higher education, 
and determine the best methods to strengthen 
this partnership.’’.
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