‘‘(b) ADMINISTRATIVE PROVISION.— 
‘‘(1) IN GENERAL.—To carry out this section, 
the Secretary may— 
‘‘(A) make grants to or contracts with in-
stitutions of higher education, or combinations 
of such institutions; and 
‘‘(B) make grants to or contracts with 
other public or private nonprofit agencies or or-
ganizations, whenever such grants or contracts 
will make an especially significant contribution 
to attaining the objectives of this section. 
‘‘(2) LIMITATION.— 
‘‘(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