H. R. 6—185
consequence of the applicability to the facilities and equipment
of such institutions of regulations prescribed for purposes of
regulating industrial and commercial enterprises.
‘‘(b) REGULATORY AND STATUTORY RELIEF FOR SMALL VOLUME
INSTITUTIONS.—The Secretary shall review and evaluate ways in
which regulations under and provisions of this Act affecting institu-
tion of higher education (other than institutions described in section
102(a)(1)(C)), that have received in each of the two most recent
award years prior to the date of the enactment of the Higher
Education Amendments of 1998 less than $200,000 in funds through
this title, may be improved, streamlined, or eliminated.
‘‘(c) CONSULTATION.—In carrying out subsections (a) and (b),
the Secretary shall consult with relevant representatives of institu-
tions participating in the programs authorized by this title.
‘‘(d) REPORTS TO CONGRESS.—
‘‘(1) IN GENERAL.—The Secretary shall submit, not later
than 1 year after the date of the enactment of the Higher
Education Amendments of 1998, a report to the Committee
on Labor and Human Resources of the Senate and the Commit-
tee on Education and the Workforce of the House of Representa-
tives detailing the Secretary’s findings and recommendations
based on the reviews conducted under subsections (a) and (b),
including a timetable for implementation of any recommended
changes in regulations and a description of any recommenda-
tions for legislative changes.
‘‘(2) ADDITIONAL REPORTS.—Not later than January 1, 2003,
the Secretary shall submit a 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
detailing the Secretary’s findings and recommendations based
on the review conducted under subsection (a), including a time-
table for implementation of any recommended changes in regu-
lations and a description of any recommendations for legislative
changes.’’.
TITLE V—DEVELOPING INSTITUTIONS
SEC. 501. ESTABLISHMENT OF NEW TITLE V.
Title V (20 U.S.C. 1101 et seq.) is amended to read as follows:
‘‘TITLE V—DEVELOPING INSTITUTIONS
‘‘PART A—HISPANIC-SERVING INSTITUTIONS
‘‘SEC. 501. FINDINGS; PURPOSE; AND PROGRAM AUTHORITY.
‘‘(a) FINDINGS.—Congress makes the following findings:
‘‘(1) Hispanic Americans are at high risk of not enrolling
or graduating from institutions of higher education.
‘‘(2) Disparities between the enrollment of non-Hispanic
white students and Hispanic students in postsecondary edu-
cation are increasing. Between 1973 and 1994, enrollment of
white secondary school graduates in 4-year institutions of
higher education increased at a rate two times higher than
that of Hispanic secondary school graduates.
H. R. 6—186
‘‘(3) Despite significant limitations in resources, Hispanic-
serving institutions provide a significant proportion of post-
secondary opportunities for Hispanic students.
‘‘(4) Relative to other institutions of higher education, His-
panic-serving institutions are underfunded. Such institutions
receive significantly less in State and local funding, per full-
time equivalent student, than other institutions of higher edu-
cation.
‘‘(5) Hispanic-serving institutions are succeeding in educat-
ing Hispanic students despite significant resource problems
that—
‘‘(A) limit the ability of such institutions to expand
and improve the academic programs of such institutions;
and
‘‘(B) could imperil the financial and administrative
stability of such institutions.
‘‘(6) There is a national interest in remedying the dispari-
ties described in paragraphs (2) and (4) and ensuring that
Hispanic students have an equal opportunity to pursue post-
secondary opportunities.
‘‘(b) PURPOSE.—The purpose of this title is to—
‘‘(1) expand educational opportunities for, and improve the
academic attainment of, Hispanic students; and
‘‘(2) expand and enhance the academic offerings, program
quality, and institutional stability of colleges and universities
that are educating the majority of Hispanic college students
and helping large numbers of Hispanic students and other
low-income individuals complete postsecondary degrees.
‘‘(c) PROGRAM AUTHORITY.—The Secretary shall provide grants
and related assistance to Hispanic-serving institutions to enable
such institutions to improve and expand their capacity to serve
Hispanic students and other low-income individuals.
‘‘SEC. 502. DEFINITIONS; ELIGIBILITY.
‘‘(a) DEFINITIONS.—For the purpose of this title:
‘‘(1) EDUCATIONAL AND GENERAL EXPENDITURES.—The term
‘educational and general expenditures’ means the total amount
expended by an institution for instruction, research, public
service, academic support (including library expenditures), stu-
dent services, institutional support, scholarships and fellow-
ships, operation and maintenance expenditures for the physical
plant, and any mandatory transfers that the institution is
required to pay by law.
‘‘(2) ELIGIBLE INSTITUTION.—The term ‘eligible institution’
means—
‘‘(A) an institution of higher education—
‘‘(i) that has an enrollment of needy students as
required by subsection (b);
‘‘(ii) except as provided in section 512(b), the aver-
age educational and general expenditures of which are
low, per full-time equivalent undergraduate student,
in comparison with the average educational and gen-
eral expenditures per full-time equivalent undergradu-
ate student of institutions that offer similar instruc-
tion;
‘‘(iii) that is—
H. R. 6—187
‘‘(I) legally authorized to provide, and provides
within the State, an educational program for which
the institution awards a bachelor’s degree; or
‘‘(II) a junior or community college;
‘‘(iv) that is accredited by a nationally recognized
accrediting agency or association determined by the
Secretary to be reliable authority as to the quality
of training offered or that is, according to such an
agency or association, making reasonable progress
toward accreditation;
‘‘(v) that meets such other requirements as the
Secretary may prescribe; and
‘‘(vi) that is located in a State; and
‘‘(B) any branch of any institution of higher education
described under subparagraph (A) that by itself satisfies
the requirements contained in clauses (i) and (ii) of such
subparagraph.
For purposes of the determination of whether an institution
is an eligible institution under this paragraph, the factor
described under subparagraph (A)(i) shall be given twice the
weight of the factor described under subparagraph (A)(ii).
‘‘(3) ENDOWMENT
FUND.—The term ‘endowment fund’
means a fund that—
‘‘(A) is established by State law, by a Hispanic-serving
institution, or by a foundation that is exempt from Federal
income taxation;
‘‘(B) is maintained for the purpose of generating income
for the support of the institution; and
‘‘(C) does not include real estate.
‘‘(4) FULL-TIME EQUIVALENT STUDENTS.—The term ‘full-time
equivalent students’ means the sum of the number of students
enrolled full time at an institution, plus the full-time equivalent
of the number of students enrolled part time (determined on
the basis of the quotient of the sum of the credit hours of
all part-time students divided by 12) at such institution.
‘‘(5) HISPANIC-SERVING INSTITUTION.—The term ‘Hispanic-
serving institution’ means an institution of higher education
that—
‘‘(A) is an eligible institution;
‘‘(B) at the time of application, has an enrollment of
undergraduate full-time equivalent students that is at least
25 percent Hispanic students; and
‘‘(C) provides assurances that not less than 50 percent
of the institution’s Hispanic students are low-income
individuals.
‘‘(6) JUNIOR
OR
COMMUNITY
COLLEGE.—The term ‘junior
or community college’ means an institution of higher edu-
cation—
‘‘(A) that admits as regular students persons who are
beyond the age of compulsory school attendance in the
State in which the institution is located and who have
the ability to benefit from the training offered by the
institution;
‘‘(B) that does not provide an educational program
for which the institution awards a bachelor’s degree (or
an equivalent degree); and
‘‘(C) that—
H. R. 6—188
‘‘(i) provides an educational program of not less
than 2 years in duration that is acceptable for full
credit toward such a degree; or
‘‘(ii) offers a 2-year program in engineering, mathe-
matics, or the physical or biological sciences, designed
to prepare a student to work as a technician or at
the semiprofessional level in engineering, scientific, or
other technological fields requiring the understanding
and application of basic engineering, scientific, or
mathematical principles of knowledge.
‘‘(7) 
LOW-INCOME
INDIVIDUAL.—The 
term 
‘low-income
individual’ means an individual from a family whose taxable
income for the preceding year did not exceed 150 percent of
an amount equal to the poverty level determined by using
criteria of poverty established by the Bureau of the Census.
‘‘(b) ENROLLMENT OF NEEDY STUDENTS.—For the purpose of
this title, the term ‘enrollment of needy students’ means an enroll-
ment at an institution with respect to which—
‘‘(1) at least 50 percent of the degree students so enrolled
are receiving need-based assistance under title IV in the second
fiscal year preceding the fiscal year for which the determination
is made (other than loans for which an interest subsidy is
paid pursuant to section 428); or
‘‘(2) a substantial percentage of the students so enrolled
are receiving Federal Pell Grants in the second fiscal year
preceding the fiscal year for which determination is made,
compared to the percentage of students receiving Federal Pell
Grants at all such institutions in the second fiscal year preced-
ing the fiscal year for which the determination is made, unless
the requirement of this paragraph is waived under section
512(a).
‘‘SEC. 503. AUTHORIZED ACTIVITIES.
‘‘(a) TYPES OF ACTIVITIES AUTHORIZED.—Grants awarded under
this title shall be used by Hispanic-serving institutions of higher
education to assist the institutions to plan, develop, undertake,
and carry out programs to improve and expand the institutions’
capacity to serve Hispanic students and other low-income students.
‘‘(b) AUTHORIZED ACTIVITIES.—Grants awarded under this sec-
tion shall be used for one 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.
‘‘(3) Support of faculty exchanges, faculty development,
curriculum development, academic instruction, and faculty
fellowships to assist in attaining advanced degrees in the fel-
low’s field of instruction.
‘‘(4) Purchase of library books, periodicals, and other edu-
cational materials, including telecommunications program
material.
‘‘(5) Tutoring, counseling, and student service programs
designed to improve academic success.