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prescribed under this title, that will bias experi-
mental results.
‘‘(c) REGULATORY
AND
STATUTORY
RELIEF
FOR
SMALL VOLUME INSTITUTIONS.—The Secretary, following
discussions with representatives of eligible institutions
(other than eligible institutions described in section
481(a)(1)(C)) that have obtained in each of the 2 most re-
cent award years prior to the date of enactment of the High-
er Education Amendments of 1998 less than $200,000 in
funds through this title, shall review and evaluate ways in
which regulations under and provisions of this Act affecting
the institutions may be improved, streamlined, or elimi-
nated, and shall submit, not later than 1 year after the en-
actment of the Higher Education Amendments of 1998, 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 Sec-
retary’s findings and recommendations, including a time-
table for implementation of any recommended changes.
‘‘(d) DEFINITIONS.—For purposes of this section, the
term ‘current award year’ is defined as the award year dur-
ing which the participating institution indicates the insti-
tution’s intention to cease participation.’’.
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SEC. 490A. DISTANCE EDUCATION DEMONSTRATION PRO-
GRAMS.
Part G (20 U.S.C. 1088 et seq.) is amended by insert-
ing after section 487B (20 U.S.C. 1094a) the following:
‘‘SEC. 487C. DISTANCE EDUCATION DEMONSTRATION PRO-
GRAMS.
‘‘(a) PURPOSE.—It is the purpose of this section—
‘‘(1) to allow demonstration programs that are
strictly monitored by the Department to test the qual-
ity and viability of expanded distance education pro-
grams currently restricted under this Act;
‘‘(2) to help determine the specific statutory and
regulatory requirements which should be altered to
provide greater access to high quality distance edu-
cation programs; and
‘‘(3) to help determine the appropriate level of
Federal assistance for students enrolled in distance
education programs.
‘‘(b) DEMONSTRATION PROGRAMS AUTHORIZED.—
‘‘(1) IN GENERAL.—The Secretary, in accordance
with the provisions of subsection (d), is authorized to
select institutions of higher education or consortia of
such institutions for voluntary participation in a
Distance Education Demonstration Program that
provides participating institutions with the ability to
offer distance education programs that do not meet all
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or a portion of the sections or regulations described
in paragraph (2).
‘‘(2) WAIVERS.—The Secretary is authorized to
waive for any institution of higher education, system
of institutions of higher education, or consortium par-
ticipating in a Distance Education Demonstration
Program, the requirements of section 472(5) as the
section relates to computer costs, sections 481(d) and
481(e) as such sections relate to requirements for a
minimum number of weeks of instruction, sections
472(10), 481(a)(3)(A), 481(a)(3)(B), 484(l)(1), or 1
or more of the regulations prescribed under this part
or part F which inhibit the operation of quality dis-
tance education programs.
‘‘(3) SPECIAL RULES.—
‘‘(A) ELIGIBLE
INSTITUTIONS.—Only an
institution of higher education that provides at
least a 2-year, or 4-year program of instruction
for which the institution awards an associate or
a baccalaureate degree, or provides a graduate
degree, shall be eligible to participate in the dem-
onstration program authorized under this sec-
tion.
‘‘(B) PROHIBITION.—An institution of high-
er education described in section 481(a)(1)(C)
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shall not be eligible to participate in the dem-
onstration program authorized under this sec-
tion.
‘‘(C) SPECIAL RULE.—Subject to subpara-
graph (B), an institution of higher education
that meets the requirements of subsection (a) of
section 481, other than the requirement of para-
graph (3)(A) or (3)(B) of such subsection, shall
be eligible to participate in the demonstration
program authorized under this section.
‘‘(D) REQUIREMENT.—Notwithstanding any
other provision of this paragraph, Western Gov-
ernors University shall be considered eligible to
participate in the demonstration program au-
thorized under this section, and the Secretary
may, in addition to the waivers described in
paragraph (2), waive for such university such
other requirements of this title as the Secretary
determines to be appropriate because of the
unique characteristics of such university. In car-
rying out the preceding sentence, the Secretary
shall ensure that adequate program integrity
and accountability measures apply to such uni-
versity’s participation in the demonstration pro-
gram authorized under this section.
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‘‘(c) APPLICATION.—
‘‘(1) IN GENERAL.—Each institution or consortia
of institutions desiring to participate in a demonstra-
tion program under this section shall submit an ap-
plication 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 or con-
sortium’s consultation with a recognized accred-
iting agency or association with respect to qual-
ity assurances for the distance education pro-
grams to be offered;
‘‘(B) a description of the statutory and reg-
ulatory requirements described in subsection
(b)(2) for which a waiver is sought and the rea-
sons for which the waiver is sought;
‘‘(C) a description of the distance education
programs to be offered;
‘‘(D) a description of the students to whom
distance education programs will be offered;
‘‘(E) an assurance that the institution or
consortium will offer full cooperation with the
ongoing evaluations of the demonstration pro-
gram provided for in this section; and
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‘‘(F) 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 section,
the Secretary is authorized to select for participation
in the program not more than 15 institutions, sys-
tems of institutions, or consortia of institutions. For
the third year of the demonstration program author-
ized under this title, the Secretary may select not
more than 35 institutions, systems, or consortia, in
addition to the institutions, systems, or consortia se-
lected pursuant to the preceding sentence, to partici-
pate in the demonstration program if the Secretary
determines that such expansion is warranted based on
the evaluations conducted in accordance with sub-
sections (f) and (g).
‘‘(2) CONSIDERATIONS.—In selecting institutions
to participate in the demonstration 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;
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‘‘(B) the Department’s capacity to oversee
and monitor each institution’s participation;
and
‘‘(C) an institution’s—
‘‘(i) financial responsibility;
‘‘(ii) administrative capability; and
‘‘(iii) program or programs being of-
fered via distance education.
‘‘(e) NOTIFICATION.—The Secretary shall make avail-
able to the public and 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
a list of institutions or consortia selected to participate in
the demonstration program authorized by this section. Such
notice shall include a listing of the specific statutory and
regulatory requirements being waived for each institution
or consortia and a description of the distance education
courses to be offered.
‘‘(f) EVALUATIONS AND REPORTS.—
‘‘(1) EVALUATION.—The Secretary, on an an-
nual basis, shall evaluate the demonstration programs
authorized under this section. Such evaluations shall
specifically review—
‘‘(A) the number and types of students par-
ticipating in the programs being offered, includ-
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ing the progress of participating students toward
recognized associate, bachelor’s, or graduate de-
grees, and the degree to which participation in
such programs increased;
‘‘(B) issues related to student financial as-
sistance for distance education; and
‘‘(C) the extent to which statutory or regu-
latory requirements not waived under the dem-
onstration program present difficulties for stu-
dents or institutions.
‘‘(2) POLICY ANALYSIS.—In addition, the Sec-
retary shall review current policies and identify those
policies which present impediments to the develop-
ment and use of distance education and other non-
traditional methods of expanding access to education.
‘‘(3) 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—
‘‘(i) the evaluations of the demonstra-
tion programs authorized under this section;
and
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‘‘(ii) any proposed statutory changes
designed to enhance the use of distance edu-
cation.
‘‘(B) ADDITIONAL REPORTS.—The Secretary
shall provide additional reports to the Committee
on Labor and Human Resources of the Senate
and the Committee on Education and the Work-
force of the House of Representatives on an an-
nual basis regarding—
‘‘(i) the demonstration programs au-
thorized under this section; and
‘‘(ii) the number and types of students
receiving assistance under this title for in-
struction leading to a recognized certificate,
as provided for in section 484(l)(1), includ-
ing the progress of such students toward rec-
ognized certificates and the degree to which
participation in such programs leading to
such certificates increased.
‘‘(g) INDEPENDENT EVALUATION.—
‘‘(1) IN
GENERAL.—The Secretary shall enter
into a contract with the National Academy of
Sciences to study the quality of and student learning
outcomes in distance education programs. Such study
shall include—
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‘‘(A) identification of the elements by which
quality in distance education can be assessed,
such as subject matter, interactivity, and student
outcomes; and
‘‘(B) identification of the types of students
which can most benefit from distance education
in areas such as access to higher education, per-
sistence, and graduation.
‘‘(2) SCOPE.—Such study shall include distance
education programs offered by the institutions or con-
sortia participating in the demonstration program
authorized by this section, as well as the distance edu-
cation programs offered by other institutions.
‘‘(3) INTERIM AND FINAL REPORTS.—The Sec-
retary shall request that the National Academy of
Sciences submit an interim report to the Secretary,
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 December 31, 2000, and a final report not later
than December 31, 2002, regarding the study.
‘‘(4) FUNDING.—The Secretary shall make avail-
able not more than $1,000,000 for the study required
by this subsection.
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‘‘(h) OVERSIGHT.—In conducting the demonstration
program authorized under this section, the Secretary shall,
on a continuing basis—
‘‘(1) assure compliance of institutions or consor-
tia with the requirements of this title (other than the
sections and regulations that are waived under sub-
section (b)(2));
‘‘(2) provide technical assistance;
‘‘(3) monitor fluctuations in the student popu-
lation enrolled in the participating institutions or
consortia; and
‘‘(4) consult with appropriate accrediting agen-
cies or associations and appropriate State regulatory
authorities.
‘‘(i) DEFINITION.—For the purpose of this section, the
term ‘distance education’ means an educational process that
is characterized by the separation, in time or place, between
instructor and student. Distance education may include
courses offered principally through the use of—
‘‘(1) television, audio, or computer transmission,
such as open broadcast, closed circuit, cable, micro-
wave, or satellite transmission;
‘‘(2) audio or computer conferencing;
‘‘(3) video cassettes or discs; or
‘‘(4) correspondence.’’.
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SEC. 490B. ADVISORY COMMITTEE ON STUDENT FINANCIAL
ASSISTANCE.
Section 491 (20 U.S.C. 1098) is amended—
(1) in subsection (b)—
(A) in the second sentence, by striking ‘‘and
expenditures’’ and inserting ‘‘, expenditures and
staffing levels’’; and
(B) by inserting after the third sentence the
following: ‘‘Reports, publications, and other doc-
uments, including such reports, publications,
and documents in electronic form, shall not be
subject to review by the Secretary.’’;
(2) in subsection (e)—
(A) by redesignating paragraphs (3), (4),
and (5), as paragraphs (4), (5), and (6), respec-
tively; and
(B) by inserting after paragraph (2) the fol-
lowing:
‘‘(3) No officers or full-time employees of the
Federal Government shall serve as members of the Ad-
visory Committee.’’;
(3) in subsection (g), by striking ‘‘(1) Members’’
and all that follows through ‘‘of the United States
may’’ and inserting ‘‘Members of the Advisory Com-
mittee may’’;
(4) in subsection (h)(1)—
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(A) by inserting ‘‘determined’’ after ‘‘as
may be’’; and
(B) by adding at the end the following:
‘‘The Advisory Committee may appoint not more
than 1 full-time equivalent, nonpermanent, con-
sultant without regard to the provisions of title
5, United States Code. The Advisory Committee
shall not be required by the Secretary to reduce
personnel to meet agency personnel reduction
goals.’’;
(5) in subsection (i), by striking ‘‘$750,000’’ and
inserting ‘‘$800,000’’;
(6) by amending subsection (j) to read as follows:
‘‘(j) SPECIAL ANALYSES AND ACTIVITIES.—The Advi-
sory Committee shall—
‘‘(1) monitor and evaluate the modernization of
student financial aid systems and delivery processes,
including the implementation of a performance-based
organization within the Department, and report to
Congress regarding such modernization on not less
than an annual basis, including recommendations for
improvement;
‘‘(2) assess the adequacy of current methods for
disseminating information about programs under this
title and recommend improvements, as appropriate,
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regarding early needs assessment and information for
first-year secondary school students;
‘‘(3) assess and make recommendations concern-
ing the feasibility and degree of use of appropriate
technology in the application for, and delivery and
management of, financial assistance under this title,
as well as policies that promote use of such technology
to reduce cost and enhance service and program integ-
rity, including electronic application and reapplica-
tion, just-in-time delivery of funds, reporting of dis-
bursements and reconciliation;
‘‘(4) assess the implications of distance education
on student eligibility and other requirements for fi-
nancial assistance under this title, and make rec-
ommendations that will enhance access to postsecond-
ary education through distance education while main-
taining access, through on-campus instruction at eli-
gible institutions, and program integrity; and
‘‘(5) make recommendations to the Secretary re-
garding redundant or outdated provisions of and reg-
ulations under this Act, consistent with the Sec-
retary’s requirements under section 498A(b)(3).’’;
(7) in subsection (k), by striking ‘‘1998’’ and in-
serting ‘‘2004’’; and
(8) by repealing subsection (l).
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SEC. 490C. REGIONAL MEETINGS AND NEGOTIATED RULE-
MAKING.
Section 492 (20 U.S.C. 1098a) is amended—
(1) in subsection (a)—
(A) in paragraph (1)—
(i) by inserting ‘‘D,’’ after ‘‘B,’’; and
(ii) by striking ‘‘Such meetings shall
include’’ and inserting ‘‘The Secretary shall
obtain the advice of and recommendations
from’’; and
(B) in paragraph (2)—
(i) by striking ‘‘During such meetings
the’’ and inserting ‘‘The’’;
(ii) by inserting ‘‘D,’’ after ‘‘B,’’; and
(iii) by striking ‘‘1992’’ and inserting
‘‘1998 through such mechanisms as regional
meetings and electronic exchanges of infor-
mation’’; and
(2) in subsection (b)—
(A) by striking ‘‘After’’ and inserting the
following:
‘‘(1) IN GENERAL.—After’’;
(B) in paragraph (1) (as redesignated by
subparagraph (A))—
(i) by striking ‘‘holding regional meet-
ings’’ and inserting ‘‘obtaining the advice
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and recommendations described in sub-
section (a)(1)’’;
(ii) by inserting ‘‘D,’’ after ‘‘B,’’;
(iii) by striking ‘‘1992’’ and inserting
‘‘1998’’; and
(iv) by striking ‘‘The Secretary shall
follow the guidance provided in sections
305.82–4 and 305.85–5 of chapter 1, Code
of Federal Regulations, and any successor
recommendation, regulation, or law.’’; and
(C) by adding at the end the following:
‘‘(2) EXPANSION OF NEGOTIATED RULEMAKING
IN STUDENT LOAN PROGRAMS.—All regulations per-
taining to the student assistance programs in parts
B, D, G, and H, that are promulgated after the date
of enactment of this paragraph, shall be subject to the
negotiated rulemaking process, unless the Secretary
determines that exceptional circumstances exist mak-
ing negotiated rulemaking unnecessary or inadvisable
with respect to given regulations and publishes the
basis for such determination in the Federal Register
at the same time as the proposed regulations in ques-
tions are first published. All published proposed regu-
lations shall conform, unless impracticable, to agree-
ments resulting from such negotiated rulemaking.
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Such negotiated rulemaking shall be conducted in ac-
cordance with the provisions of paragraph (1).’’.
SEC. 
490D. 
PROCEDURES 
FOR 
CANCELLATIONS 
AND
DEFERMENTS FOR ELIGIBLE DISABLED VET-
ERANS.
Part G of title IV (20 U.S.C. 1088 et seq.) is amended
by adding at the end the following:
‘‘SEC. 
493A. 
PROCEDURES 
FOR 
CANCELLATIONS 
AND
DEFERMENTS FOR ELIGIBLE DISABLED VET-
ERANS.
‘‘The Secretary, in consultation with the Secretary of
Veterans Affairs, shall develop and implement a procedure
to permit Department of Veterans Affairs physicians to pro-
vide the certifications and affidavits needed to enable dis-
abled veterans enrolled in the Department of Veterans Af-
fairs health care system to document such veterans’ eligi-
bility for deferments or cancellations of student loans made,
insured, or guaranteed under this title. Not later than 6
months after the date of enactment of the Higher Education
Amendments of 1998, the Secretary and the Secretary of
Veterans Affairs jointly shall report to Congress on the
progress made in developing and implementing the proce-
dure.’’.
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PART H—PROGRAM INTEGRITY TRIAD
SEC. 491. STATE ROLE AND RESPONSIBILITIES.
Subpart 1 of part H of title IV (20 U.S.C. 1099a et
seq.) is amended to read as follows:
‘‘Subpart 1—State Role
‘‘SEC. 495. STATE RESPONSIBILITIES.
‘‘(a) STATE RESPONSIBILITIES.—As part of the integ-
rity program authorized by this part, each State, through
1 State agency or several State agencies selected by the
State, shall—
‘‘(1) furnish the Secretary, upon request, infor-
mation with respect to the process for licensing or
other authorization for institutions of higher edu-
cation to operate within the State;
‘‘(2) notify the Secretary promptly whenever the
State revokes a license or other authority to operate
an institution of higher education; and
‘‘(3) notify the Secretary promptly whenever the
State has credible evidence that an institution of
higher education within the State—
‘‘(A) has committed fraud in the adminis-
tration of the student assistance programs au-
thorized by this title; or
‘‘(B) has substantially violated a provision
of this title.
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‘‘(b) INSTITUTIONAL RESPONSIBILITY.—Each institu-
tion of higher education shall provide evidence to the Sec-
retary that the institution has authority to operate within
a State at the time the institution is certified under subpart
3.’’.
SEC. 492. ACCREDITING AGENCY RECOGNITION.
(a) AMENDMENTS TO HEADINGS.—Subpart 2 of part
H of title IV (20 U.S.C. 1099b et seq.) is amended—
(1) in the subpart heading, by striking ‘‘Ap-
proval’’ and inserting ‘‘Recognition’’; and
(2) in the heading for section 496, by striking
‘‘APPROVAL’’ and inserting ‘‘RECOGNITION’’.
(b) RECOGNITION OF ACCREDITING AGENCY OR ASSO-
CIATION.—Section 496 (20 U.S.C. 1099b) is amended—
(1) in the heading for subsection (a), by striking
‘‘STANDARDS’’ and inserting ‘‘CRITERIA’’;
(2) in subsection (a)—
(A) in the matter preceding paragraph (1),
by striking ‘‘standards’’ each place the term ap-
pears and inserting ‘‘criteria’’;
(B) in paragraph (4)—
(i) by striking ‘‘at the institution’’ and
inserting ‘‘offered by the institution’’; and
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(ii) by inserting ‘‘, including distance
education courses or programs,’’ after
‘‘higher education’’; and
(C) in paragraph (5)—
(i) by striking subparagraph (I);
(ii) by redesignating subparagraphs
(A) through (H) as subparagraphs (B)
through (I), respectively;
(iii) by inserting before subparagraph
(B) the following:
‘‘(A) success with respect to student achieve-
ment in relation to the institution’s mission, in-
cluding, as appropriate, consideration of course
completion, State licensing examination, and job
placement rates;’’;
(iv) in subparagraph (I) (as redesig-
nated by clause (ii)), by striking ‘‘in clock
hours or credit hours’’; and
(v) in subparagraph (L)—
(I) by inserting ‘‘record of’’ before
‘‘compliance’’;
(II) by striking ‘‘Act, including
any’’ and inserting ‘‘Act based on the’’;
(III) by inserting ‘‘any’’ after ‘‘re-
views, and’’; and
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(IV) in the matter following sub-
paragraph (L), by striking ‘‘(G),’’;
(3) by amending paragraph (1) of subsection (l)
to read as follows: ‘‘(1)(A)(i) If the Secretary deter-
mines that an accrediting agency or association has
failed to apply effectively the standards in this sec-
tion, or is otherwise not in compliance with the re-
quirements of this section, the Secretary shall—
‘‘(I) after notice and opportunity for a
hearing, limit, suspend, or terminate the ap-
proval of the agency or association; or
‘‘(II) require the agency or association to
take appropriate action to bring the agency or
association into compliance with such require-
ments within a timeframe specified by the Sec-
retary, except that—
‘‘(aa) such timeframe shall not exceed
12 months unless the Secretary extends such
period for good cause; and
‘‘(bb) if the agency or association fails
to bring the agency or association into com-
pliance within such timeframe, the Sec-
retary shall, after notice and opportunity
for a hearing, limit, suspend, or terminate
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the approval of the agency or association.’’;
and
(4) in subsection (n)(3), by adding at the end the
following: ‘‘When the Secretary decides to recognize
an accrediting agency or association, the Secretary
shall determine the agency or association’s scope of
recognition. If the agency or association reviews insti-
tutions offering distance education courses or pro-
grams and the Secretary determines that the agency
or association meets the requirements of this section,
then the agency shall be recognized and the scope of
recognition shall include accreditation of institutions
offering distance education courses or programs.’’.
SEC. 493. ELIGIBILITY AND CERTIFICATION PROCEDURES.
(a) SINGLE APPLICATION FORM.—Section 498(b) (20
U.S.C. 1099c(b)) is amended—
(1) in paragraph (1), by striking ‘‘and capabil-
ity’’ and inserting ‘‘financial responsibility, and ad-
ministrative capability’’;
(2) by amending paragraph (3) to read as fol-
lows:
‘‘(3) requires—
‘‘(A) a description of the third party
servicers of an institution of higher education;
and
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‘‘(B) the institution to maintain a copy of
any contract with a financial aid service pro-
vider or loan servicer, and provide a copy of any
such contract to the Secretary upon request;’’;
(3) in paragraph (4), by striking the period and
inserting ‘‘; and’’; and
(4) by adding at the end the following:
‘‘(5) provides, at the option of the institution, for
participation in 1 or more of the programs under
part B or D.’’.
(b) FINANCIAL RESPONSIBILITY STANDARDS.—Section
498(c) (20 U.S.C. 1099c(c)) is amended—
(1) in paragraph (2), by striking ‘‘with respect
to operating losses, net worth, asset to liabilities ra-
tios, or operating fund deficits’’ and inserting ‘‘re-
garding ratios that demonstrate financial responsibil-
ity,’’;
(2) in paragraph (3)(A), by striking ‘‘Secretary
third party’’ and all that follows through ‘‘payable to
the Secretary’’ and inserting ‘‘Secretary any third
party guarantees, which the Secretary determines are
reasonable, that’’; and
(3) in paragraph (4)—
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(A) in the matter preceding subparagraph
(A), by striking ‘‘ratio of current assets to cur-
rent liabilities’’ and inserting ‘‘criteria’’; and
(B) in subparagraph (C), by striking ‘‘cur-
rent operating ratio requirement’’ and inserting
‘‘criteria’’.
(c) FINANCIAL GUARANTEES FROM OWNERS.—Section
498(e) (20 U.S.C. 1099c(e)) is amended—
(1) in the subsection heading, by inserting ‘‘OF
FOR-PROFIT INSTITUTIONS’’ after ‘‘OWNERS’’;
(2) in paragraph (1)(A), by striking ‘‘from an’’
and inserting ‘‘from a for-profit’’;
(3) in paragraph (2)—
(A) in the matter preceding clause (i) of
subparagraph (A), by inserting ‘‘for-profit’’ after
‘‘or more’’;
(B) in subparagraph (B), by inserting ‘‘for-
profit’’ after ‘‘or more’’;
(4) in paragraph (3), by striking ‘‘operation of,
an institution or’’ and inserting ‘‘operation of, a for-
profit institution or the’’; and
(5) by adding at the end the following:
‘‘(6) Notwithstanding any other provision of law,
any individual, whom the Secretary determines, in
accordance with paragraph (2), exercises substantial
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control over an institution participating in, or seek-
ing to participate in, a program under this title, re-
quired to pay, on behalf of a student or borrower, a
refund of unearned institutional charges to a lender,
or to the Secretary, who willfully fails to pay such re-
fund or willfully attempts in any manner to evade
payment of such refund, shall, in addition to other
penalties provided by law, be liable to the Secretary
for the amount of the refund not paid, to the same ex-
tent with respect to such refund that such an individ-
ual would be liable as a responsible person for a pen-
alty under section 6672(a) of Internal Revenue Code
of 1986 with respect to the nonpayment of taxes.’’.
(d) APPLICATIONS AND SITE VISITS.—Section 498(f)
(20 U.S.C. 1099c(f)) is amended—
(1) in the subsection heading by striking ‘‘; SITE
VISITS AND FEES’’ and inserting ‘‘AND SITE VISITS’’;
(2) in the second sentence, by striking ‘‘shall’’
and inserting ‘‘may’’;
(3) in the third sentence, strike ‘‘may’’ and in-
sert ‘‘shall’’; and
(4) by striking the fourth sentence.
(e) TIME LIMITATIONS ON, AND RENEWAL OF, ELIGI-
BILITY.—Subsection (g) of section 498 (20 U.S.C. 1099c)
is amended to read as follows:
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‘‘(g) TIME LIMITATIONS ON, AND RENEWAL OF, ELIGI-
BILITY.—
‘‘(1) GENERAL RULE.—After the expiration of
the certification of any institution under the schedule
prescribed under this section (as in effect prior to the
enactment of the Higher Education Act Amendments
of 1998), or upon request for initial certification from
an institution not previously certified, the Secretary
may certify the eligibility for the purposes of any pro-
gram authorized under this title of each such institu-
tion for a period not to exceed 6 years.
‘‘(2) NOTIFICATION.—The Secretary shall notify
each institution of higher education not later than 6
months prior to the date of the expiration of the insti-
tution’s certification.
‘‘(3) 
INSTITUTIONS
OUTSIDE
THE
UNITED
STATES.—The Secretary shall promulgate regulations
regarding the recertification requirements applicable
to an institution of higher education outside of the
United States that meets the requirements of section
481(a)(1)(C) and received less than $500,000 in funds
under part B for the most recent year for which data
are available.’’.
(f) PROVISIONAL CERTIFICATION.—Section 498(h) (20
U.S.C. 1099c(h)) is amended—
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(1) in paragraph (1)(B)(ii), by striking ‘‘an eli-
gible’’ and inserting ‘‘a for-profit eligible’’; and
(2) in paragraph (2), by striking ‘‘the approval’’
and inserting ‘‘the recognition’’.
(g) TREATMENT OF CHANGES OF OWNERSHIP.—Sec-
tion 498(i) (20 U.S.C. 1099c(i)) is amended—
(1) in the subsection heading, by inserting ‘‘OF
FOR-PROFIT INSTITUTIONS’’ after ‘‘OWNERSHIP’’; and
(2) in paragraph (2)—
(A) in subparagraph (A), by inserting ‘‘for-
profit’’ before ‘‘institution’’;
(B) in subparagraph (C), by striking ‘‘two’’
and inserting ‘‘a for-profit institution with one’’;
(C) in subparagraph (D), by inserting ‘‘for-
profit’’ before ‘‘institutions’’;
(D) in subparagraph (E), by inserting ‘‘for-
profit’’ before ‘‘institutions’’; and
(E) in subparagraph (F), by inserting ‘‘for-
profit’’ before ‘‘institution’’.
(h) TREATMENT OF BRANCHES.—The second sentence
of section 498(j)(1) (20 U.S.C. 1099c(j)(1)) is amended by
inserting ‘‘after the branch is certified by the Secretary as
a branch campus participating in a program under title
IV,’’ after ‘‘2 years’’.
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SEC. 494. PROGRAM REVIEW AND DATA.
Section 498A (20 U.S.C. 1099c–1) is amended—
(1) in subsection (a)—
(A) in paragraph (2)—
(i) in the matter preceding subpara-
graph (A), by striking ‘‘may’’ and inserting
‘‘shall’’;
(ii) by amending subparagraph (C) to
read as follows:
‘‘(C) institutions with a significant fluctua-
tion in Federal Stafford Loan volume, Federal
Direct Stafford/Ford Loan volume, or Federal
Pell Grant award volume, or any combination
thereof, in the year for which the determination
is made, compared to the year prior to such
year, that are not accounted for by changes in
the Federal Stafford Loan program, the Federal
Direct Stafford/Ford Loan program, or the Pell
Grant program, or any combination thereof;’’;
(iii) by amending subparagraph (D) to
read as follows:
‘‘(D) institutions reported to have defi-
ciencies or financial aid problems by the State
licensing or authorizing agency, or by the appro-
priate accrediting agency or association;’’;
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(iv) in subparagraph (E), by inserting
‘‘and’’ after the semicolon; and
(v) by striking subparagraphs (F) and
(G), and inserting the following:
‘‘(F) such other institutions that the Sec-
retary determines may pose a significant risk of
failure to comply with the administrative capa-
bility or financial responsibility provisions of
this title; and’’; and
(B) in paragraph (3)(A), by inserting ‘‘rel-
evant’’ after ‘‘all’’; and
(2) by amending subsection (b) to read as fol-
lows:
‘‘(b) SPECIAL ADMINISTRATIVE RULES.—
‘‘(1) IN GENERAL.—In carrying out paragraphs
(1) and (2) of subsection (a) and any other relevant
provisions of this title, the Secretary shall—
‘‘(A) establish guidelines designed to ensure
uniformity of practice in the conduct of program
reviews of institutions of higher education;
‘‘(B) make available to each institution par-
ticipating in programs authorized under this
title complete copies of all review guidelines and
procedures used in program reviews;
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‘‘(C) permit the institution to correct or
cure an administrative, accounting, or record-
keeping error if the error is not part of a pattern
of error and there is no evidence of fraud or mis-
conduct related to the error;
‘‘(D) base any civil penalty assessed against
an institution of higher education resulting from
a program review or audit on the gravity of the
violation, failure, or misrepresentation; and
‘‘(E) inform the appropriate State and ac-
crediting agency or association whenever the Sec-
retary takes action against an institution of
higher education under this section, section 498,
or section 432.
‘‘(2) UNIFORMITY OF APPLICATION OF REGULA-
TIONS.—The Secretary shall review the regulations of
the Department and the application of such regula-
tions to ensure the uniformity of interpretation and
application of the regulations.
‘‘(3) NONDUPLICATION AND COORDINATION.—The
Secretary shall establish a process for ensuring that
eligibility and compliance issues, such as institu-
tional audit, program review, and recertification, are
considered simultaneously, and shall establish a proc-
ess for identifying unnecessary duplication of report-
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ing and related regulatory requirements. In develop-
ing such processes, the Secretary shall consult with
relevant representatives of institutions participating
in the programs authorized by this title.’’.
PART I—ADMINISTRATIVE PROVISIONS FOR
DELIVERY OF STUDENT FINANCIAL ASSISTANCE
SEC. 495. PERFORMANCE-BASED ORGANIZATION FOR THE
DELIVERY OF FEDERAL STUDENT FINANCIAL
ASSISTANCE.
Title IV (20 U.S.C. 1070 et seq.) is amended by adding
at the end the following:
‘‘PART I—ADMINISTRATIVE PROVISIONS FOR
DELIVERY OF STUDENT FINANCIAL ASSISTANCE
‘‘SEC. 499. PERFORMANCE-BASED ORGANIZATION FOR THE
DELIVERY OF FEDERAL STUDENT FINANCIAL
ASSISTANCE.
‘‘(a) ESTABLISHMENT.—The Secretary shall establish
in the Department a performance-based organization (here-
after in this part referred to as the ‘PBO’) to administer
various functions relating to student financial assistance
programs authorized under this title.
‘‘(b) OVERSIGHT AND AUTHORITY.—
‘‘(1) POLICY OVERSIGHT AND DIRECTION.—The
Secretary shall maintain responsibility for the policy
relating to functions managed by the PBO, and the
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PBO shall remain subject to the Secretary’s oversight
and direction.
‘‘(2) AUDITS AND REVIEW.—The PBO shall be
subject to the usual and customary Federal audit pro-
cedures and to review by the Inspector General of the
Department.
‘‘(3) CHANGES.—
‘‘(A) IN GENERAL.—The Secretary and the
Chief Operating 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 performance plan de-
scribed in subsection (e).
‘‘(B) REVISIONS TO AGREEMENT.—The Sec-
retary and the Chief Operating Officer may re-
vise the annual performance agreement described
in subsection (f)(2) in light of policy, market, or
other changes that occur after the Secretary and
the Chief Operating Officer enter into the agree-
ment.
‘‘(c) PURPOSES OF PBO.—The purposes of the PBO
are—
‘‘(1) to improve service to students and other
participants in the student financial assistance pro-
grams authorized under this title, including making
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those programs more understandable to students and
their parents;
‘‘(2) to reduce the costs of administering those
programs;
‘‘(3) to increase the accountability of the officials
responsible for administering those programs;
‘‘(4) to provide greater flexibility in the adminis-
tration of those programs;
‘‘(5) to improve and integrate the information
and delivery systems that support those programs;
and
‘‘(6) to develop and maintain a student financial
assistance system that contains complete, accurate,
and timely data to ensure program integrity.
‘‘(d) FUNCTIONS.—
‘‘(1) IN GENERAL.—Subject to subsection (b) of
this section, the PBO shall be responsible for adminis-
tration of the information and financial systems that
support student financial assistance programs author-
ized under this title, including—
‘‘(A) collecting, processing, and transmit-
ting applicant data to students, institutions, and
authorized third parties, as provided for in sec-
tion 483;
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‘‘(B) contracting for the information and fi-
nancial systems supporting student financial as-
sistance programs under this title;
‘‘(C) developing technical specifications for
software and systems that support those pro-
grams; and
‘‘(D) providing all customer service, train-
ing, and user support related to systems that
support those programs.
‘‘(2) ADDITIONAL
FUNCTIONS.—The Secretary
may allocate to the PBO such additional functions as
the Secretary determines necessary or appropriate to
achieve the purposes of the PBO.
‘‘(e) PERFORMANCE PLAN AND REPORT.—
‘‘(1) PERFORMANCE PLAN.—
‘‘(A) IN
GENERAL.—Each year, the Sec-
retary and Chief Operating Officer shall agree
on, and make available to the public, a perform-
ance plan for the PBO for the succeeding 5 years
that establishes measurable goals and objectives
for the organization.
‘‘(B) CONSULTATION.—In developing the 5-
year performance plan and any revision to the
plan, the Secretary and the Chief Operating Of-
ficer shall consult with students, institutions of
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higher education, Congress, lenders, and other
interested parties not less than 30 days prior to
the implementation of the performance plan or
revision.
‘‘(C) AREAS.—The plan shall address the
PBO’s responsibilities in the following areas:
‘‘(i) IMPROVING SERVICE.—Improving
service to students 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 in-
tegrating the information and delivery sys-
tems 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.
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‘‘(2) ANNUAL REPORT.—(A) IN GENERAL.—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 perform-
ance plan described in paragraph (1) for the preced-
ing year.
‘‘(B) CONSULTATION
WITH
STAKEHOLDERS.—
The Chief Operating Officer, in preparing the report
described in subparagraph (A), shall establish appro-
priate means to consult with borrowers, institutions,
lenders, guaranty agencies, secondary markets, and
others involved in the delivery system of student aid
under this title—
‘‘(i) regarding the degree of satisfaction
with the delivery system; and
‘‘(ii) to seek suggestions on means to im-
prove the delivery system.
‘‘(f) CHIEF OPERATING OFFICER.—
‘‘(1) APPOINTMENT.—
‘‘(A) IN GENERAL.—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
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years and compensated without regard to chap-
ters 33, 51, and 53 of title 5, United States Code.
‘‘(B) BASIS.—The appointment shall be
made on the basis of demonstrated ability in
management and experience in information tech-
nology or financial services.
‘‘(C) REAPPOINTMENT.—The Secretary may
reappoint the Chief Operating Officer to subse-
quent 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 perform-
ance agreement described in paragraph (2), is
satisfactory.
‘‘(2) PERFORMANCE AGREEMENT.—
‘‘(A) IN
GENERAL.—Each year, the Sec-
retary and the Chief Operating Officer shall
enter into an annual performance agreement,
that shall set forth measurable organization and
individual goals for the Chief Operating Officer.
‘‘(B) TRANSMITTAL.—The final agreement,
and any revision 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 Re-
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sources of the Senate, and made publicly avail-
able.
‘‘(3) 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 Serv-
ice under section 5382 of title 5, United States
Code, including any applicable locality-based
comparability payment that may be authorized
under section 5304(h)(2)(C) of such title.
‘‘(B) BONUS.—In addition, the Chief Oper-
ating 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 per-
formance 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 cause the Chief Operating Of-
ficer’s total aggregate compensation in a cal-
endar year to equal or exceed the amount of the
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President’s salary under section 102 of title 3,
United States Code.
‘‘(4) REMOVAL.—The Chief Operating Officer
shall be removable—
‘‘(A) by the President; or
‘‘(B) by the Secretary for misconduct or
failure to meet the goals set forth in the perform-
ance agreement described in paragraph (2).
‘‘(g) 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 serv-
ice.
‘‘(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 re-
lating to classification and General Schedule pay
rates.
‘‘(2) PERFORMANCE
AGREEMENT.—Each year,
the Chief Operating Officer and each senior manager
appointed under this subsection shall enter into an
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annual performance agreement that sets forth measur-
able organization and individual goals.
‘‘(3) COMPENSATION.—
‘‘(A) IN GENERAL.—A senior manager ap-
pointed 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 Exec-
utive Service under section 5382 of title 5,
United States Code, including any applicable lo-
cality-based comparability payment that may be
authorized under section 5304(h)(2)(C) of such
title 5.
‘‘(B) BONUS.—In addition, a senior man-
ager 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, in-
cluding any applicable locality-based com-
parability payment, based upon the Chief Oper-
ating Officer’s evaluation of the manager’s per-
formance in relation to the goals set forth in the
performance agreement described in paragraph
(2).
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‘‘(4) REMOVAL.—A senior manager shall be re-
movable by the Secretary or by the Chief Operating
Officer.
‘‘(h) 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.
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—The Sec-
retary shall allocate from funds made available under sec-
tion 458 such funds as are appropriate to the functions as-
sumed by the PBO. In addition, there are authorized to be
appropriated such sums as may be necessary to carry out
the purposes of this part, including transition costs.
‘‘SEC. 499A. PERSONNEL FLEXIBILITIES.
‘‘(a) GENERAL PROVISIONS.—
‘‘(1) CERTAIN LIMITATIONS NOT APPLICABLE.—
The PBO shall not be subject to any limitation relat-
ed to the number or grade of its employees.
‘‘(2) APPLICABLE PROVISIONS OF TITLE 5.—
‘‘(A) PROVISIONS.—Any flexibilities pro-
vided under this section shall be exercised in a
manner consistent with the following provisions
of title 5, United States Code:
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‘‘(i) Chapter 23, relating to merit sys-
tem principles and prohibited personnel
practices.
‘‘(ii) Provisions relating to preference
eligibles.
‘‘(iii) Section 5307, relating to the ag-
gregate limitation on pay.
‘‘(iv) Chapter 71, relating to labor-
management relations, except to the extent
provided by paragraph (3).
‘‘(B) EXERCISE OF AUTHORITY.—The exer-
cise of any authorities provided under this sec-
tion shall be subject to subsections (b) and (c) of
section 1104 of title 5, United States Code, as
though such authorities were delegated to the
PBO under subsection (a)(2) of such section. The
PBO shall provide the Office of Personnel Man-
agement with any information the Office re-
quires in carrying out its responsibilities under
this subsection.
‘‘(3) LABOR ORGANIZATION AGREEMENTS.—Em-
ployees within a unit to which a labor organization
is accorded exclusive recognition under chapter 71 of
title 5, United States Code, shall not be subject to any
flexibility provided under this section unless the ex-
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clusive representative and PBO have entered into a
written agreement which specifically provides for the
exercise of that flexibility. A written agreement may
not be imposed by the Federal Services Impasses
Panel under section 7119 of title 5, United States
Code.
‘‘(4) FLEXIBILITIES.—
‘‘(A) PRIOR APPROVAL.—The PBO may ex-
ercise any of the flexibilities provided under sub-
sections (b), (c)(1), and (d) without prior ap-
proval of the Office of Personnel Management.
‘‘(B) PLAN AND APPROVAL.—The PBO may
exercise the flexibilities described in subsection
(c)(2) only after a specific plan for implementa-
tion of those flexibilities is submitted to and ap-
proved by the Director of the Office of Personnel
Management.
‘‘(5) DEMONSTRATION PROJECTS.—
‘‘(A) IN
GENERAL.—The exercise of any
flexibilities under this section shall not affect the
authority of the PBO to implement a demonstra-
tion project subject to chapter 47 of title 5,
United States Code, and as provided in subpara-
graph (B).
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‘‘(B) APPLICATION OF TITLE 5.—In apply-
ing section 4703 of title 5, United States Code,
to a project described in subparagraph (A)—
‘‘(i) section 4703(b)(1) shall be deemed
to read as follows:
‘‘ ‘(1) develop a plan for such project which de-
scribes its purpose, the employees to be covered, the
project itself, its anticipated outcomes, and the meth-
od of evaluating the project;’;
‘‘(ii) section 4703(b)(3) shall not
apply;
‘‘(iii) the 180-day notification period
in section 4703(b)(4) shall be deemed to be
a 30-day notification period;
‘‘(iv) 
section 
4703(b)(6) 
shall 
be
deemed to read as follows:
‘‘ ‘(6) provide each House of Congress with the
final version of the plan.’;
‘‘(v) section 4703(c)(1) shall be deemed
to read as follows:
‘‘ ‘(1) subchapter V of chapter 63 or subpart G
of part III of this title;’;
‘‘(vi) section 4703(d) shall not apply;
and
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‘‘(vii) section 4703(f) shall not apply,
and, in lieu thereof, paragraph (3) of this
subsection shall apply as though the dem-
onstration project were a flexibility author-
ity provided under this subsection.
‘‘(b) PERFORMANCE MANAGEMENT.—
‘‘(1) IN GENERAL.—The PBO shall establish a
performance management system that—
‘‘(A) maintains individual accountability
by—
‘‘(i) establishing 1 or more retention
standards for each employee related to the
work of the employee and expressed in terms
of individual performance, and commu-
nicating such retention standards to em-
ployees;
‘‘(ii) making periodic determinations
of whether each employee meets or does not
meet the employee’s established retention
standards; and
‘‘(iii) taking actions, in accordance
with applicable laws and regulations, with
respect to any employee whose performance
does not meet established retention stand-
ards, including denying any increase in
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basic pay, promotions, and credit for per-
formance under section 3502 of title 5,
United States Code, and taking 1 or more
of the following actions:
‘‘(I) Reassignment;
‘‘(II) An action under chapter 43
or 75 of title 5, United States Code; or
‘‘(III) Any other appropriate ac-
tion to resolve the performance prob-
lem; and
‘‘(B) strengthens its effectiveness by provid-
ing for—
‘‘(i) establishing goals or objectives for
individual, group, or organizational per-
formance (or any combination thereof), con-
sistent with the annual performance agree-
ment described in section 499(f)(2) and
PBO performance planning procedures, in-
cluding those established under the Govern-
ment Performance and Results Act of 1993,
and communicating such goals or objectives
to employees;
‘‘(ii) using such goals and objectives to
make performance distinctions among em-
ployees or groups of employees; and
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‘‘(iii) using performance assessments
as a basis for granting employee awards,
adjusting an employee’s rate of basic pay,
and other appropriate personnel actions, in
accordance with applicable provisions or
law and regulation.
‘‘(2) PERFORMANCE.—
‘‘(A) ASSESSMENT.—For purposes of para-
graph (1)(B), the term ‘performance assessment’
means a determination of whether or not reten-
tion standards established under paragraph
(1)(A)(i) are met, and any additional perform-
ance determination made on the basis of per-
formance goals and objectives established under
paragraph (1)(B)(i).
‘‘(B) UNACCEPTABLE
PERFORMANCE.—For
purposes of title 5, United States Code, the term
‘unacceptable performance’ with respect to an
employee of the PBO means performance of the
employee which fails to meet a retention stand-
ard established under paragraph (1)(A)(i).
‘‘(3) AWARDS PROGRAM.—
‘‘(A) IN GENERAL.—The PBO may establish
an awards program designed to provide incen-
tives for and recognition of organizational,
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group, and individual achievements by provid-
ing for granting awards to employees who, as in-
dividuals or members of a group, contribute to
meeting the performance goals and objectives es-
tablished under this part by such means as a su-
perior individual or group accomplishment, a
documented productivity gain, or sustained su-
perior performance.
‘‘(B) LIMITATION.—Notwithstanding section
4502(b) of title 5, United States Code, the PBO
may grant a cash award in an amount not ex-
ceeding $25,000, with the approval of the Chief
Operating Officer.
‘‘(c) CLASSIFICATION AND PAY FLEXIBILITIES.—
‘‘(1) IN GENERAL.—
‘‘(A) DEFINITION.—For purposes of this sec-
tion, the term ‘broad-banded system’ means a
system for grouping positions for pay, job eval-
uation, and other purposes that is different from
the system established under chapter 51 and sub-
chapter III of chapter 53 of title 5, United States
Code, as a result of combining grades and relat-
ed ranges of rates of pay in 1 or more occupa-
tional series.
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‘‘(B) ESTABLISHMENT.—The PBO may,
subject to criteria to be prescribed by the Office
of Personnel Management, establish 1 or more
broad-banded systems covering all or any por-
tion of its workforce. The Office may require the
PBO to submit to the Office such information re-
lating to its broad-banded systems as the Office
may require. Laws and regulations pertaining to
General Schedule employees (other than chapter
52 and subchapter II of chapter 53 of title 5,
United States Code) shall continue to be applica-
ble to employees under a broad-banded system.
‘‘(C) CRITERIA.—The criteria to be pre-
scribed by the Office of Personnel Management
shall, at a minimum—
‘‘(i) ensure that the structure of any
broad-banded system maintains, through
linkage to the General Schedule, the prin-
ciple of equal pay for substantially equal
work;
‘‘(ii) establish the minimum and maxi-
mum number of grades that may be com-
bined into pay bands;
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‘‘(iii) establish requirements for adjust-
ing the pay of an employee within a pay
band;
‘‘(iv) establish requirements for setting
the pay of a supervisory employee whose po-
sition is in a pay band or who supervises
employees whose positions are in pay bands;
and
‘‘(v) establish requirements and meth-
odologies for setting the pay of an employee
upon conversion to a broad-banded system,
initial appointment, change of position or
type of appointment (including promotion,
demotion, transfer, reassignment, reinstate-
ment, placement in another pay band, or
movement to a different geographic loca-
tion), and movement between a broad-band-
ed system and another pay system.
‘‘(2) ALTERNATIVE
JOB
EVALUATION
SYSTEMS
FLEXIBILITIES.—
‘‘(A) IN GENERAL.—With the approval of
the Office of Personnel Management in accord-
ance with subsection (a)(4)(B), the PBO may es-
tablish 1 or more alternative job evaluation sys-
tems that include any positions or groups of po-
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sitions that the PBO determines, for reasons of
effective administration—
‘‘(i) should not be classified under
chapter 51 of title 5, United States Code, or
paid under the General Schedule;
‘‘(ii) should not be classified or paid
under subchapter IV of chapter 53 of such
title; or
‘‘(iii) should not be paid under section
5376 of such title.
‘‘(B) PAY.—
‘‘(i) GENERAL LIMITATION.—An alter-
native job evaluation system established
under this section that includes positions
described in clause (i) or (ii), or both, of
subparagraph (A) may not provide a rate of
basic pay for any employee in excess of the
maximum rate of pay under the General
Schedule.
‘‘(ii) SPECIFIC LIMITATION.—An alter-
native job evaluation system established
under this section that includes positions
described in clause (iii) of subparagraph
(A) may not provide a rate of basic pay for
any employee in excess of the annual rate
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of basic pay of the Chief Operating Officer
under the first sentence of section 499(f)(3).
‘‘(C) IMPLEMENTATION.—An alternative job
evaluation system established under this section
shall be implemented in such a way as to ensure
the maintenance of the principle of equal pay for
substantially equal work.
‘‘(D) APPLICABILITY OF LAWS.—Except as
otherwise provided under this part, employees
under an alternative job evaluation system shall
continue to be subject to the laws and regulations
covering employees under the pay system that
would otherwise apply to them. If the alternative
job evaluation system combines employees from
different pay systems into a single system, the
plan submitted under subsection (a)(4)(B) shall
address the applicability of the laws and regula-
tions for the different pay systems.
‘‘(d) STAFFING FLEXIBILITIES.—
‘‘(1) APPOINTMENT.—
‘‘(A) CONDITIONS.—Except as otherwise
provided under this subsection, an employee of
the PBO may be selected for a permanent ap-
pointment in the competitive service in the PBO
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through internal competitive promotion proce-
dures if—
‘‘(i) the employee has completed, in the
competitive service, 2 years of current con-
tinuous service under a term appointment
or any combination of term appointments;
‘‘(ii) such term appointment or ap-
pointments were made under competitive
procedures prescribed for permanent ap-
pointments;
‘‘(iii) 
the 
employee’s 
performance
under such term appointment or appoint-
ments met established retention standards;
and
‘‘(iv) the vacancy announcement for
the term appointment from which the con-
version is made stated that there was a po-
tential for subsequent conversion to a per-
manent appointment.
‘‘(B) SIMILAR APPOINTMENT.—An appoint-
ment under this section may be made only to a
position in the same line of work as a position
to which the employee received a term appoint-
ment under competitive procedures.
‘‘(2) CATEGORY RATING SYSTEMS.—
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‘‘(A) IN
GENERAL.—Notwithstanding sub-
chapter I of chapter 33 of title 5, United States
Code, the PBO may establish category rating
systems for evaluating job applicants for posi-
tions in the competitive service. Qualified can-
didates under such rating systems shall be di-
vided into 2 or more quality categories on the
basis of relative degrees of merit, rather than as-
signed individual numerical ratings. Each ap-
plicant who meets the minimum qualification re-
quirements for the position to be filled shall be
assigned to an appropriate category based on an
evaluation of the applicant’s knowledge, skills,
and abilities relative to those needed for success-
ful performance in the position to be filled.
‘‘(B) 
PREFERENCE
ELIGIBLES.—Within
each quality category established under subpara-
graph (A), preference eligibles shall be listed
ahead of individuals who are not preference eli-
gibles. For other than scientific and professional
positions at or higher than level GS–9 (or equiv-
alent), preference eligibles who have a compen-
sable service-connected disability of 10 percent or
more, and who meet the minimum qualification
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standards, shall be listed in the highest quality
category.
‘‘(C) SELECTION.—An appointing authority
may select any applicant from the highest qual-
ity category or, if fewer than 3 candidates have
been assigned to the highest quality category,
from a merged category consisting of the highest
and second highest quality categories. Notwith-
standing the preceding sentence, the appointing
authority may not pass over a preference eligible
in the same or higher category from which selec-
tion is made, unless the requirements of section
3317(b) or 3318(b) of title 5, United States Code,
as applicable, are satisfied.
‘‘(3) EXCEPTED SERVICE.—The Chief Operating
Officer may appoint, without regard to the provisions
of title 5, United States Code, governing appoint-
ments 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 classification and General Schedule pay rates.
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‘‘(4) RULE OF CONSTRUCTION.—Notwithstanding
paragraphs (1) through (3), no provision of this sub-
section exempts the PBO from—
‘‘(A) any employment priorities established
under direction of the President for the place-
ment of surplus or displaced employees; or
‘‘(B) its obligations under any court order
or decree relating to the employment practices of
the PBO or the Department of Education.
‘‘SEC. 499B. PROCUREMENT FLEXIBILITY.
‘‘(a) PROCUREMENT AUTHORITY.—Subject to the au-
thority, direction, and control of the Secretary, the Chief
Operating Officer of a PBO may exercise the authority of
the Secretary to procure property and services in the per-
formance of functions managed by the PBO. For the pur-
poses of this section, the term ‘PBO’ includes the Chief Op-
erating Officer of the PBO and any employee of the PBO
exercising procurement authority under the preceding sen-
tence.
‘‘(b) APPLICABILITY OF PROCUREMENT LAWS.—Ex-
cept to the extent otherwise authorized in this section, a
PBO shall comply with all laws and regulations that are
generally applicable to procurements of property and serv-
ices by the head of an executive agency of the Federal Gov-
ernment.
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‘‘(c) USE OF MUTUAL BENEFIT CORPORATION.—The
PBO may acquire services related to the title IV delivery
system from any mutual benefit corporation that has the
capability and capacity to meet the requirements for the
system, as determined by the Chief Operating Officer of the
PBO.
‘‘(d) 
TWO-PHASE
SOURCE-SELECTION
PROCE-
DURES.—
‘‘(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 con-
tracting officer for the procurement shall publish
a notice of the procurement 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 pur-
pose for sources to make informed business
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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 contracting officer determines appro-
priate.
‘‘(B) 
INFORMATION
SUBMITTED
BY
OFFERORS.—Each offeror for the procurement
shall submit basic information, such as informa-
tion on the offeror’s qualifications, the proposed
conceptual approach, costs likely to be associated
with the proposed conceptual approach, and past
performance of the offeror on Federal Govern-
ment contracts, together with any additional in-
formation that is requested by the contracting of-
ficer.
‘‘(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 contracting officer shall
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limit the number of the selected offerors to the
number of sources that the contracting officer de-
termines 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 selec-
tion process in accordance with sections 303A
and 303B of the Federal Property and Adminis-
trative 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 participate in the second
phase.
‘‘(C) SINGLE
OR
MULTIPLE
PROCURE-
MENTS.—The second phase may include a single
procurement or multiple procurements within
the scope, or for the purpose, described in the no-
tice pursuant to paragraph (2)(A).
‘‘(4) PROCEDURES CONSIDERED COMPETITIVE.—
The procedures used for selecting a source for a pro-
curement under this subsection shall be considered
competitive procedures for all purposes.
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‘‘(e) USE OF SIMPLIFIED PROCEDURES FOR COMMER-
CIAL ITEMS.—Whenever the PBO anticipates that commer-
cial 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 with-
out 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 procure-
ment, the PBO may—
‘‘(A) apply a shorter waiting period for the
issuance of a solicitation after the publication of
a notice under section 18 Office of Federal Pro-
curement Policy Act (41 U.S.C. 416) than is re-
quired under subsection (a)(3)(A) of such section;
and
‘‘(B) notwithstanding subsection (a)(3) of
such section, establish any deadline for the sub-
mission of bids or proposals that affords poten-
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tial 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.
‘‘(3) CONSISTENCY
WITH
APPLICABLE
INTER-
NATIONAL AGREEMENTS.—If an international agree-
ment 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 re-
quirements of the PBO for a system incrementally by
carrying out successive 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 un-
less the module is useful independently of the other
modules or useful in combination with another mod-
ule previously procured for the system.
‘‘(3) CONDITIONS FOR USE OF AUTHORITY.—The
PBO may use procedures authorized under paragraph
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(4) for the procurement 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 in-
cluded—
‘‘(i) a general description of the entire
system that was sufficient to provide poten-
tial offerors with reasonable notice of the
general scope of future modules;
‘‘(ii) other information sufficient for
potential offerors to make informed business
judgments regarding whether to submit of-
fers for the contract for the first module;
and
‘‘(iii) a statement that procedures au-
thorized 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 con-
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tract 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 pro-
cured for the system under competitive proce-
dures or procedures authorized under subpara-
graph (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 having been selected for
award of the contract under this subpara-
graph or other competitive procedures; and
‘‘(ii) at least one other offeror that sub-
mitted an offer for a module previously pro-
cured for the system and is expected, on the
basis of the offer for the previously 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.—
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‘‘(A) PUBLICATION.—Not less than 30 days
before issuing a solicitation for offers for a con-
tract for a module for a system under procedures
authorized under subparagraph (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 re-
spect to a use of procedures authorized under
paragraph (4) if the contractor referred to in
that subparagraph (who is to be solicited to sub-
mit 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 pub-
lished under subparagraph (A) with respect to a
use of procedures described in paragraph (4)
shall contain the information required under sec-
tion 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
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the best interest of the Federal Government to-
gether with information supporting the assertion.
‘‘(6) DOCUMENTATION.—The basis for an award
of a contract under this subsection shall be docu-
mented. However, a justification 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
PROCE-
DURES.—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 COM-
MERCIAL ITEMS.—
‘‘(1) AUTHORITY.—The PBO may use special
simplified procedures for a procurement of services
that are not commercial items if—
‘‘(A) the procurement is in an amount not
greater than $1,000,000;
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‘‘(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 associ-
ated with the services procured are items of sup-
ply expected to be less than 20 percent of the
total contract price.
‘‘(2) INAPPLICABILITY
TO
CERTAIN
PROCURE-
MENTS.—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 Adminis-
trator for Federal Procurement Policy, shall issue
guidance for the use by PBO personnel of the author-
ity provided in this section.
‘‘(2) GUIDANCE FROM OFPP.—As part of the con-
sultation required under paragraph (1), the Adminis-
trator for Federal Procurement Policy shall provide
the PBO with guidance that is designed to ensure, to
the maximum extent practicable, that the authority
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under this section is exercised by the PBO in a man-
ner that is consistent with the exercise of the author-
ity by the heads of the other performance-based orga-
nizations.
‘‘(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 department 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)
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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) MUTUAL BENEFIT CORPORATION.—The term
‘mutual benefit corporation’ means a corporation or-
ganized and chartered as a mutual benefit corpora-
tion under the laws of any State governing the incor-
poration of nonprofit corporations.
‘‘(4) 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 solicit-
ing an offer or offers from, and negotiating with, only
that source.
‘‘(5) 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 Fed-
eral Property and Administrative Services Act of
1949 (41 U.S.C. 253(g)(1)) and section 31 of the Of-
fice of Federal Procurement Policy Act (41 U.S.C.
427).
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‘‘(6) SPECIAL
SIMPLIFIED
PROCEDURES.—The
term ‘special simplified procedures’ means the proce-
dures applicable to purchases of property and services
for amounts not greater than the simplified acquisi-
tion threshold that are set forth in the Federal Acqui-
sition 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. 496. STUDENT LOAN OMBUDSMAN OFFICE.
Title IV (20 U.S.C. 1070 et seq.) is amended by adding
after part I (as added by section 495) the following:
‘‘PART J—STUDENT LOAN OMBUDSMAN OFFICE
‘‘SEC. 499F. STUDENT LOAN OMBUDSMAN OFFICE.
‘‘(a) OFFICE ESTABLISHED.—The Secretary shall es-
tablish, within the Department, a Student Loan Ombuds-
man Office.
‘‘(b) INDEPENDENCE OF STUDENT LOAN OMBUDSMAN
OFFICE.—In the exercise of its functions, powers, and du-
ties, the Student Loan Ombudsman Office shall be inde-
pendent of the Secretary and the other offices and officers
of the Department.
‘‘(c) STUDENT LOAN OMBUDSMAN.—The Student Loan
Ombudsman Office shall be managed by the Student Loan
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Ombudsman, who shall be appointed by the Secretary to
a 5-year term. The Secretary shall appoint the Student
Loan Ombudsman not later than 6 months after the date
of enactment of the Higher Education Amendments of 1998.
The appointment shall be made without regard to political
affiliation or activity. The Secretary may reappoint the
Student Loan Ombudsman to subsequent terms.
‘‘(d) DUTIES AND RESPONSIBILITIES.—The Student
Loan Ombudsman Office shall—
‘‘(1) directly assist student loan borrowers with
loans made, insured, or guaranteed under this title;
‘‘(2) ensure that student loan borrower com-
plaints and requests for assistance are promptly re-
solved and responded to by the Secretary, contractors
or servicers, guaranty agencies, lenders, and other
loan holders, or the agents of such individuals or enti-
ties;
‘‘(3) investigate and resolve complaints of stu-
dent loan borrowers;
‘‘(4) provide information on the experience of
borrowers with respect to existing and proposed stat-
utes, regulations, and Department directives and ac-
tions;
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‘‘(5) track and analyze complaint data by loan
program, institution, lender, guaranty agency, and
servicer, as applicable; and
‘‘(6) report annually to the appropriate commit-
tees of Congress, which report shall be made available
to the public, regarding the responsibilities and per-
formance of the Student Loan Ombudsman Office, in-
cluding an analysis of complaint data described in
paragraph (5).
‘‘(e) STUDENT LOAN OMBUDSMAN OFFICE ACCESS TO
RECORDS.—The Student Loan Ombudsman Office shall,
upon presentation of a signed release form from a student
loan borrower, have full and complete access to all records
regarding the borrower’s loan and education program that
are necessary to carry out the Student Loan Ombudsman’s
duties. The Student Loan Ombudsman shall maintain per-
sonal identifying information in the strictest confidence
and use such information only for the purpose of assisting
the borrower in pursuing resolution of the individual’s com-
plaint, unless written authorization is obtained to use such
information for other specified purposes.
‘‘(f) ACCESSIBILITY FOR BORROWERS.—The Student
Loan Ombudsman Office shall maintain a toll-free tele-
phone number and Internet web site for receiving borrower
complaints.
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‘‘(g) NOTIFICATION
TO BORROWERS.—The Student
Loan Ombudsman Office shall encourage maximum out-
reach to borrowers by all appropriate parties, including the
Department, Congress, lenders, institutions of higher edu-
cation, loan servicers, and guaranty agencies, to provide on-
going notice, to student loan borrowers, of the Student Loan
Ombudsman Office. Such notice, including the toll-free tele-
phone number, at a minimum, shall be given to borrowers
in publications and on Internet web sites.
‘‘(h) CONFLICT OF INTEREST.—Employees of the Stu-
dent Loan Ombudsman Office shall not be employees or offi-
cers of any participant in the student loan programs under
this Act (other than the Department), including any lender,
guaranty agency, proprietary institution of higher edu-
cation, postsecondary vocational institution, institution of
higher education, loan servicer, collections agency, or trade
association or education advocacy group representing any
such entity. The Student Loan Ombudsman Office shall
avoid all conflicts of interest and appearances of impropri-
ety.
‘‘(i) SUPPLEMENT AND NOT SUPPLANT.—The remedies
and procedures of the Student Loan Ombudsman Office
shall supplement and not supplant any other consumer
remedies and procedures available to borrowers.
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‘‘(j) FUNDING.—In each fiscal year, not less than
$2,000,000 of the amount appropriated for the fiscal year
for salaries and expenses at the Department shall be avail-
able to carry out this section.’’.
TITLE V—GRADUATE AND POST-
SECONDARY 
IMPROVEMENT
PROGRAMS
SEC. 501. REPEALS, TRANSFERS, AND REDESIGNATIONS.
(a) IN GENERAL.—Title V (20 U.S.C. 1101 et seq.) is
amended—
(1) by amending the title heading to read as fol-
lows:
‘‘TITLE V—GRADUATE AND POST-
SECONDARY 
IMPROVEMENT
PROGRAMS’’;
(2) by repealing parts A, B, C, D, E, and F of
title V (20 U.S.C. 1102 et seq., 1103 et seq., 1104 et
seq., 1107 et seq., 1111 et seq., and 1113 et seq.);
(3) by transferring part C of title IX, part D of
title IX, part A of title XI, and part A of title X (20
U.S.C. 1134h et seq., 1134l et seq., 1136 et seq., and
1135 et seq.) to title V and redesignating such parts
as parts A, B, D, and E, respectively;
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(4) by redesignating sections 931 through 935
(20 U.S.C. 1134h et seq. and 1134k–1 et seq.) as sec-
tions 501 through 505, respectively;
(5) by redesignating sections 941 through 947
(20 U.S.C. 1134l and 1134q–1) as section 511
through 517, respectively;
(6) by redesignating sections 1101 through 1109
(20 U.S.C. 1136 through 1136h) as sections 531
through 539, respectively; and
(7) by redesignating sections 1001, 1002, 1003,
1004, and 1011 (20 U.S.C. 1135, 1135a–1, 1135a–2,
1135a–3, and 1135a–11) as sections 541, 542, 543,
544, and 551, respectively.
(b) CROSS REFERENCE CONFORMING AMENDMENTS.—
(1) JACOB K. JAVITS FELLOWSHIP PROGRAM.—
Section 504(a) (as redesignated by subsection (a)(4))
(20 U.S.C. 1134k(a)) is amended by striking ‘‘933’’
and inserting ‘‘503’’.
(2) GRADUATE
ASSISTANCE
IN
AREAS
OF
NA-
TIONAL NEED.—Part B of title V (as redesignated by
paragraphs (3) and (5) of subsection (a)) (20 U.S.C.
1134l et seq.) is amended—
(A) in section 514(b)(7) (as redesignated by
subsection (a)(5)) (20 U.S.C. 1134o(b)(7)), by
striking ‘‘945’’ and inserting ‘‘515’’; and
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(B) in section 515(c) (as redesignated by
subsection (a)(5)) (20 U.S.C. 1134p(c))—
(i) by striking ‘‘946(a)’’ and inserting
‘‘516(a)’’; and
(ii) by striking ‘‘944(b)(2)’’ and insert-
ing ‘‘514(b)(2)’’.
(3) URBAN AND COMMUNITY SERVICE.—Part C
of title V (as redesignated by paragraphs (3) and (6)
of subsection (a)) (20 U.S.C. 1136 et seq.) is amend-
ed—
(A) in section 532(b) (20 U.S.C. 1136a(b)),
by striking ‘‘1104’’ and inserting ‘‘534’’;
(B) 
in 
section 
534(12) 
(20 
U.S.C.
1136c(12)), by striking ‘‘1103(a)(2)(B)’’ and in-
serting ‘‘533(a)(2)(B)’’; and
(C) in section 538(1) (20 U.S.C. 1136g(1)),
by striking ‘‘1103’’ and inserting ‘‘533’’.
(4) FIPSE.—Subsections (b) and (c) of section
544 (as redesignated by subsection (a)(7)) (20 U.S.C.
1135a–3) each are amended by striking ‘‘1001(b)’’
and inserting ‘‘541(b)’’.
SEC. 502. PURPOSE.
Section 500 (20 U.S.C. 1101) is amended to read as
follows:
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‘‘SEC. 500. PURPOSE.
‘‘It is the purpose of this title—
‘‘(1) to authorize national graduate fellowship
programs—
‘‘(A) in order to attract students of superior
ability and achievement, exceptional promise,
and demonstrated financial need, into high-qual-
ity graduate programs and provide the students
with the financial support necessary to complete
advanced degrees; and
‘‘(B) that are designed to—
‘‘(i) sustain and enhance the capacity
for graduate education in areas of national
need;
‘‘(ii) encourage talented students to
pursue scholarly careers in the humanities,
social sciences, and the arts; and
‘‘(iii) encourage talented individuals
from underrepresented groups to pursue fac-
ulty careers in higher education; and
‘‘(2) to promote postsecondary programs.’’.
PART A—JACOB K. JAVITS FELLOWSHIP
PROGRAM
SEC. 511. AWARD OF FELLOWSHIPS.
(a) AWARD OF JACOB K. JAVITS FELLOWSHIPS.—Sec-
tion 501 (as redesignated by section 501(4)) is amended—
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(1) in subsection (a)—
(A) in the first sentence, by inserting ‘‘, fi-
nancial need,’’ after ‘‘demonstrated achieve-
ment’’;
(B) in the second sentence—
(i) by striking ‘‘students intending’’
and inserting ‘‘students who are eligible to
receive any grant, loan, or work assistance
pursuant to section 484 and intend’’; and
(ii) by striking ‘‘commonly accepted’’
and all that follows through ‘‘degree-grant-
ing institution’’ and inserting ‘‘the terminal
highest degree awarded in the area of
study’’; and
(C) in the third sentence, by inserting ‘‘fol-
lowing the fiscal year’’ after ‘‘July 1 of the fiscal
year’’; and
(2) by adding at the end the following:
‘‘(d) PROCESS AND TIMING OF COMPETITION.—The
Secretary shall make applications for fellowships under this
part available not later than October 1 of the academic year
preceding the academic year for which fellowships will be
awarded, and shall announce the recipients of fellowships
under this section not later than March 1 of the academic
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year preceding the academic year for which the fellowships
are awarded.
‘‘(e) AUTHORITY TO CONTRACT.—The Secretary is au-
thorized to enter into a contract with a nongovernmental
agency to administer the program assisted under this part
if the Secretary determines that entering into the contract
is an efficient means of carrying out the program.’’.
(b) ALLOCATION OF FELLOWSHIPS.—Section 502 (as
redesignated by section 501(4)) (20 U.S.C. 1134i) is amend-
ed—
(1) in subsection (a)—
(A) in the third sentence of paragraph (1),
by striking ‘‘knowledgeable about and have expe-
rience’’ and inserting ‘‘representative of a range
of disciplines’’; and
(B) in paragraph (2)—
(i) by amending subparagraph (B) to
read as follows:
‘‘(B) establish general criteria for the award
of fellowships in academic fields identified by the
Board, or, in the event that the Secretary enters
into a contract with a nongovernmental entity to
administer the program assisted under this part,
by such nongovernmental entity;’’; and
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(ii) in subparagraph (C), by inserting
‘‘except that, in the event that the Secretary
enters into a contract with a nongovern-
mental entity to administer the program,
such panels may be appointed by such non-
governmental entity’’ before the semicolon;
and
(2) in the first sentence of subsection (b), by in-
serting ‘‘except that in the event that the Secretary
enters into a contract with a nongovernmental entity
to administer the program, such panels may be ap-
pointed by such nongovernmental entity’’ before the
period.
(c) STIPENDS.—Section 503 (as redesignated by sec-
tion 501(4)) (20 U.S.C. 1134j) is amended—
(1) in subsection (a)—
(A) by striking ‘‘1993–1994’’ and inserting
‘‘1999–2000’’; and
(B) by striking ‘‘according to measurements
of need approved by the Secretary’’ and inserting
‘‘determined in accordance with part F of title
IV’’; and
(2) in subsection (b)(1)(A)—
(A) in clause (i)—
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(i) by striking ‘‘$6,000’’ and inserting
‘‘$10,000’’; and
(ii) by striking ‘‘1993–1994’’ and in-
serting ‘‘1999–2000’’; and
(B) in clause (ii)—
(i) in the matter preceding subclause
(I), by striking ‘‘1993–1994’’ and inserting
‘‘1999–2000’’;
(ii) in subclause (I), by striking
‘‘$9,000 for the academic year 1993–1994’’
and inserting ‘‘$10,000 for the academic
year 1999–2000’’; and
(iii) in subclause (II), by striking
‘‘$9,000’’ and inserting ‘‘$10,000’’.
(d) AUTHORIZATION
OF APPROPRIATIONS.—Section
505 (as redesignated by section 501(4)) (20 U.S.C. 1134k–
1) is amended by striking ‘‘1993’’ and inserting ‘‘1999’’.
PART B—GRADUATE ASSISTANCE IN AREAS OF
NATIONAL NEED
SEC. 521. GRADUATE ASSISTANCE IN AREAS OF NATIONAL
NEED.
(a) DESIGNATION OF AREAS OF NATIONAL NEED.—
Subsection (b) of section 513 (as redesignated by section
501(5)) (20 U.S.C. 1134n) is amended to read as follows:
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‘‘(b) DESIGNATION OF AREAS OF NATIONAL NEED.—
After consultation with the National Science Foundation,
the National Academy of Sciences, and other appropriate
Federal and nonprofit agencies and organizations, the Sec-
retary shall designate areas of national need. In making
such designations, the Secretary shall take into consider-
ation—
‘‘(1) the extent to which the national interest in
the area is compelling;
‘‘(2) the extent to which other Federal programs
support postbaccalaureate study in the area con-
cerned; and
‘‘(3) an assessment of how the program may
achieve the most significant impact with available re-
sources.’’.
(b) CONTENT OF APPLICATIONS.—Section 514(b) (as
redesignated by section 501(5)) (20 U.S.C. 1134o(b)) is
amended—
(1) in paragraph (2)—
(A) by striking ‘‘funds’’ and inserting
‘‘sources’’; and
(B) by inserting ‘‘, which contribution may
be in cash or in kind, fairly valued’’ before the
semicolon;
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(2) by redesignating paragraphs (4) through (9)
as paragraphs (5) through (10), respectively;
(3) by inserting after paragraph (3) the follow-
ing:
‘‘(4) describe the number, types, and amounts of
the fellowships that the applicant intends to offer with
grant funds provided under this part;’’ and
(4) in paragraph (5)(A) (as redesignated by
paragraph (2)), by striking ‘‘criteria developed by the
institution’’ and inserting ‘‘part F of title IV’’.
(c) AWARDS.—Section 515 (as redesignated by section
501(5)) (20 U.S.C. 1134p) is amended—
(1) in the third sentence of subsection (b)—
(A) by striking ‘‘1993–1994’’ and inserting
‘‘1999–2000’’; and
(B) by striking ‘‘according to measurements
of need approved by the Secretary’’ and inserting
‘‘determined in accordance with part F of title
IV’’; and
(2) in subsection (c), by striking ‘‘such pay-
ments’’ and inserting ‘‘such excess’’.
(d) INSTITUTIONAL PAYMENTS.—Section 516(a)(1) (as
redesignated by section 501(5)) (20 U.S.C. 1134q(a)(1)) is
amended—
(1) in subparagraph (A)—
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(A) by striking ‘‘$6,000 annually’’ and in-
serting ‘‘$10,000 for each academic year,’’; and
(B) by striking ‘‘1993–1994’’ and inserting
‘‘1999–2000’’; and
(2) in subparagraph (B)—
(A) in the matter preceding clause (i), by
striking ‘‘1993–1994’’ and inserting ‘‘1999–
2000’’;
(B) in clause (i), by striking ‘‘$9,000 for the
academic 
year 
1993–1994’’ 
and 
inserting
‘‘$10,000 for the academic year 1999–2000’’; and
(C) in clause (ii), by striking ‘‘$9,000’’ and
inserting ‘‘$10,000’’.
(e) AUTHORIZATION
OF APPROPRIATIONS.—Section
517 (as redesignated by section 501(5)) (20 U.S.C. 1134q–
1) is amended by striking ‘‘$40,000,000 for fiscal year
1993’’ and inserting ‘‘$30,000,000 for fiscal year 1999’’.
PART C—FACULTY DEVELOPMENT PROGRAM
SEC. 531. FACULTY DEVELOPMENT PROGRAM REAUTHOR-
IZED.
Title V (20 U.S.C. 1101 et seq.) is amended further
by inserting after part B (as redesignated by section
501(a)(3)) the following:
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‘‘PART C—FACULTY DEVELOPMENT
FELLOWSHIPS
‘‘SEC. 521. FACULTY DEVELOPMENT FELLOWSHIPS AUTHOR-
IZED.
‘‘(a) IN GENERAL.—The Secretary shall make grants
to institutions of higher education, or consortia of such in-
stitutions, to enable such institutions to award fellowships
to talented graduate students in order to increase the access
of individuals from underrepresented groups to pursue
graduate study, and to teach in institutions of higher edu-
cation.
‘‘(b) UNDERREPRESENTED GROUPS DEFINED.—For
the purpose of this part, the term ‘underrepresented groups’
means African Americans, Hispanic Americans, Asian
Americans, Native Americans, Pacific Islanders, Native
Hawaiians, and individuals who are pursuing graduate
study in academic disciplines in which the individuals are
underrepresented for the individuals’ gender.
‘‘(c) PREFERENCE.—In making awards under this
part, the Secretary shall give preference to applicants with
a demonstrated record of—
‘‘(1) admitting students from the Ronald E.
McNair Postbaccalaureate Achievement Program or a
program with a similar purpose;
‘‘(2) graduating individuals from groups under-
represented in graduate education; and
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‘‘(3) placing the graduates of the institution or
consortium in faculty positions in institutions of
higher education.
‘‘(d) REPORTING.—Each institution of higher edu-
cation or consortium receiving a grant under this section
shall, on an annual basis, provide to the Secretary evidence
regarding—
‘‘(1) the success of the institution in attracting
underrepresented students into graduate programs;
‘‘(2) graduating the students; and
‘‘(3) the success of each graduate in obtaining a
faculty position in an institution of higher education.
‘‘(e) APPLICATION REQUIRED.—
‘‘(1) IN GENERAL.—Each academic department
or program of an institution of higher education de-
siring a grant under this part shall submit an appli-
cation to the Secretary at such time, in such manner,
and containing such information as the Secretary
may reasonably require.
‘‘(2) ADDITIONAL ASSURANCES.—Each applica-
tion submitted pursuant to paragraph (1) shall—
‘‘(A) provide an assurance that, in the event
that funds made available to the academic de-
partment or program under this part are insuf-
ficient to provide assistance due a student under
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a commitment entered into between the academic
department and the student, the academic de-
partment or program will endeavor, from funds
available to the department or program, to fulfill
the commitment made to the student; and
‘‘(B) contain such other assurances as the
Secretary may reasonably require.
‘‘(3) APPROVAL
OF
APPLICATIONS.—The Sec-
retary shall prescribe criteria for the approval of ap-
plications submitted under paragraph (1).
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to carry out this part
$30,000,000 for fiscal year 1999 and such sums as may be
necessary for each of the 4 succeeding fiscal years.’’.
PART D—URBAN COMMUNITY SERVICE
SEC. 541. URBAN COMMUNITY SERVICE.
(a) PRIORITY.—Section 533(b) (as redesignated by sec-
tion 501(a)(6)) (20 U.S.C. 1136b(b)) is amended by adding
at the end the following: ‘‘In addition, the Secretary shall
give priority to eligible institutions submitting applications
that demonstrate the eligible institution’s commitment to
urban community service.’’.
(b) AUTHORIZATION
OF APPROPRIATIONS.—Section
539 (as redesignated by section 501(a)(6)) (20 U.S.C.
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1136h) is amended by striking ‘‘1993’’ and inserting
‘‘1999’’.
PART E—FUND FOR THE IMPROVEMENT OF
POSTSECONDARY EDUCATION
SEC. 551. FUND FOR THE IMPROVEMENT OF POSTSECOND-
ARY EDUCATION.
(a) AUTHORITY.—Section 541(a) (as redesignated by
section 501(a)(7)) (20 U.S.C. 1135(a)) is amended—
(1) in the matter preceding paragraph (1)—
(A) by striking ‘‘or combinations of such in-
stitutions’’ and inserting ‘‘, combinations of such
institutions,’’; and
(B) by striking ‘‘institutions and combina-
tions of such institutions’’ and inserting ‘‘insti-
tutions, combinations, and agencies’’; and
(2) in paragraph (2)—
(A) by striking ‘‘and programs involving
new’’ and inserting ‘‘, programs and joint efforts
involving’’; and
(B) by striking ‘‘new combinations’’ and in-
serting ‘‘combinations’’.
(b) TECHNICAL EMPLOYEES.—Section 543(a) (as re-
designated by section 501(a)(7)) (20 U.S.C. 1135a–2(a)) is
amended by striking ‘‘5 technical’’ and inserting ‘‘7 tech-
nical’’.
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(c) AUTHORIZATION
OF APPROPRIATIONS.—Section
544 (as redesignated by section 501(a)(7)) (20 U.S.C.
1135a–3) is amended—
(1) in subsection (a), by striking ‘‘$20,000,000
for fiscal year 1993’’ and inserting ‘‘$26,000,000 for
fiscal year 1999’’; and
(2) in subsection (b), by striking ‘‘1993’’ and in-
serting ‘‘1999’’.
(d) AREAS OF NATIONAL NEED.—
(1) AREAS.—Section 551(c) (as redesignated by
section 501(a)(7)) (20 U.S.C. 1135a–11(c)) is amend-
ed—
(A) in paragraph (2), by striking ‘‘Campus
climate and culture’’ and inserting ‘‘Institu-
tional restructuring to improve learning and
promote cost efficiencies’’;
(B) in paragraph (3), by inserting ‘‘of
model programs’’ after ‘‘dissemination’’; and
(C) by adding at the end the following:
‘‘(4) Articulation between 2-year and 4-year in-
stitutions of higher education, including developing
innovative methods for ensuring the successful trans-
fer of students from 2-year to 4-year institutions of
higher education.’’.
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(2) AUTHORIZATION OF APPROPRIATIONS.—Sec-
tion 551(d) (as redesignated by section 501(a)(7)) (20
U.S.C. 1135a–11(d)) is amended by striking ‘‘1993’’
and inserting ‘‘1999’’.
PART F—HIGHER EDUCATION ACCESS FOR STU-
DENTS WITH DISABILITIES; HISPANIC-SERV-
ING INSTITUTIONS; GENERAL PROVISIONS
SEC. 561. HIGHER EDUCATION ACCESS FOR STUDENTS
WITH DISABILITIES; HISPANIC-SERVING IN-
STITUTIONS; GENERAL PROVISIONS.
Title V (20 U.S.C. 1101 et seq.) is amended further
by adding at the end the following:
‘‘PART F—HIGHER EDUCATION ACCESS FOR
STUDENTS WITH DISABILITIES
‘‘SEC. 571. HIGHER EDUCATION ACCESS FOR STUDENTS
WITH DISABILITIES.
‘‘(a) PURPOSE.—It is the purpose of this part—
‘‘(1) to support the development of model pro-
grams to provide technical assistance or training, and
professional development, for faculty and administra-
tors in institutions of higher education, as defined in
section 481(a), to provide the faculty and administra-
tors with the skills and assistance to teach effectively
students with disabilities; and
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‘‘(2) to ensure effective evaluation and dissemi-
nation of such model programs.
‘‘(b) GRANTS AUTHORIZED.—
‘‘(1) IN GENERAL.—The Secretary is authorized
to award grants to institutions of higher education to
carry out the purposes of this part.
‘‘(2) MODEL PROGRAMS.—To the extent feasible,
the model programs developed under this part shall be
developed for a range of types and sizes of institutions
of higher education.
‘‘(3) GEOGRAPHIC DISTRIBUTION.—In awarding
grants under this part, the Secretary shall consider—
‘‘(A) providing an equitable geographic dis-
tribution of such grants; and
‘‘(B) distributing such grants to urban and
rural areas.
‘‘(4) APPROACHES.—The Secretary shall award
grants under this part for a range of approaches to
providing support to faculty and administrators, such
as in-service training, professional development, cus-
tomized and general technical assistance, workshops,
summer institutes, distance learning and the use of
educational technology.
‘‘(c) DISSEMINATION OF GRANTS.—The Secretary may
award grants to institutions of higher education that have
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demonstrated exceptional programs for students with dis-
abilities under this part in order to disseminate those pro-
grams.
‘‘(d) APPLICATIONS.—Each institution of higher edu-
cation desiring a grant under this part shall submit an ap-
plication to the Secretary at such time, in such manner,
and accompanied by such information as the Secretary
may require. Each such application shall include—
‘‘(1) a plan to assess the needs of the institution
of higher education in order to meet the purposes of
this part, in consultation with a broad range of per-
sons within that institution; and
‘‘(2) a plan for coordinating with or collaborat-
ing with the office within the institution that pro-
vides services to students with disabilities, and the
equal opportunity office within the institution, if the
offices exist.
‘‘(e) USE OF FUNDS.—Any institution of higher edu-
cation receiving a grant under this part—
‘‘(1) shall use the grant funds to—
‘‘(A) meet the purposes of this section; and
‘‘(B) ensure that projects assisted under this
part include components for model development,
demonstration, evaluation, and dissemination to
other institutions of higher education; and
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‘‘(2) may include, to the extent practicable, grad-
uate teaching assistants in the services provided
under the grant.
‘‘(f) GRANT AWARDS.—The Secretary shall award
grants under this part for a period of 3 years.
‘‘(g) CONSTRUCTION.—Nothing in this section shall be
construed to impose any additional duty, obligation, or re-
sponsibility on an institution of higher education, or on
the institution’s administrators, faculty, or staff, in addi-
tion to the requirements of section 504 of the Rehabilitation
Act of 1973 and the Americans with Disabilities Act of
1990.
‘‘(h) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section
$10,000,000 for fiscal year 1999 and such sums as may be
necessary for each of the 4 succeeding fiscal years.
‘‘PART G—HISPANIC-SERVING INSTITUTIONS
‘‘SEC. 580. 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 education are increasing. Between 1973
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and 1994, enrollment of white secondary school grad-
uates in 4-year institutions of higher education in-
creased at a rate 2 times higher than that of His-
panic secondary school graduates.
‘‘(3) Despite significant limitations in resources,
Hispanic-serving institutions provide a significant
proportion of postsecondary opportunities for His-
panic students.
‘‘(4) Relative to other institutions of higher edu-
cation, Hispanic-serving institutions are under-
funded. Such institutions receive significantly less in
State and local funding, per full-time equivalent stu-
dent, than other institutions of higher education.
‘‘(5) Hispanic-serving institutions are succeeding
in educating Hispanic students despite significant re-
source 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 ad-
ministrative stability of such institutions.
‘‘(6) There is a national interest in remedying
the disparities described in paragraphs (2) and (4)
and ensuring that Hispanic students have an equal
opportunity to pursue postsecondary opportunities.
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‘‘SEC. 581. PURPOSE.
‘‘The purpose of this part is to—
‘‘(1) expand educational opportunities for, and
improve the academic attainment of, Hispanic stu-
dents; and
‘‘(2) expand and enhance the academic offerings,
program quality, and institutional stability of col-
leges and universities that are educating the majority
of Hispanic college students and helping large num-
bers of Hispanic students and other low-income indi-
viduals complete postsecondary degrees.
‘‘SEC. 582. PROGRAM AUTHORIZED.
‘‘(a) IN GENERAL.—The Secretary shall provide grants
and related assistance to Hispanic-serving institutions to
enable such institutions to improve and expand their capac-
ity to serve Hispanic students and other low-income indi-
viduals.
‘‘(b) AUTHORIZED ACTIVITIES.—
‘‘(1) TYPES
OF
ACTIVITIES
AUTHORIZED.—
Grants awarded under this section shall be used by
Hispanic-serving institutions of higher education to
assist such institutions to plan, develop, undertake,
and carry out programs to improve and expand such
institutions’ capacity to serve Hispanic students and
other low-income students.
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‘‘(2) EXAMPLES OF AUTHORIZED ACTIVITIES.—
The programs described in paragraph (1) may in-
clude—
‘‘(A) purchase, rental, or lease of scientific
or laboratory equipment for educational pur-
poses, including instructional and research pur-
poses;
‘‘(B) renovation and improvement in class-
room, library, laboratory, and other instruc-
tional facilities;
‘‘(C) support of faculty exchanges, and fac-
ulty development and faculty fellowships to as-
sist in attaining advanced degrees in their field
of instruction;
‘‘(D) curriculum development and academic
instruction;
‘‘(E) purchase of library books, periodicals,
microfilm, and other educational materials;
‘‘(F) funds and administrative manage-
ment, and acquisition of equipment for use in
strengthening funds management;
‘‘(G) joint use of facilities such as labora-
tories and libraries;
‘‘(H) academic tutoring and counseling pro-
grams and student support services; and
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‘‘(I) expanding the number of Hispanic and
other underrepresented graduate and professional
students that can be served by the institution by
expanding courses and institutional resources.
‘‘(3) ENDOWMENT FUND.—
‘‘(A) IN GENERAL.—A Hispanic-serving in-
stitution may use not more than 20 percent of
the grant funds provided under this part to es-
tablish or increase an endowment fund at the in-
stitution.
‘‘(B) MATCHING REQUIREMENT.—In order
to be eligible to use grant funds in accordance
with subparagraph (A), the Hispanic-serving in-
stitution shall provide matching funds, in an
amount equal to the Federal funds used in ac-
cordance with subparagraph (A), for the estab-
lishment or increase of the endowment fund.
‘‘(C) COMPARABILITY.—The provisions of
part C of title III regarding the establishment or
increase of an endowment fund, that the Sec-
retary determines are not inconsistent with this
paragraph, shall apply to funds used under sub-
paragraph (A).
‘‘(c) WAIT-OUT-PERIOD.—Each Hispanic-serving in-
stitution that receives a grant under this part shall not be
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eligible to receive an additional grant under this part until
2 years after the date on which the preceding grant period
terminates.
‘‘SEC. 583. APPLICATION PROCESS.
‘‘(a) INSTITUTIONAL ELIGIBILITY.—Each Hispanic-
serving institution desiring to receive assistance under this
part shall submit to the Secretary such enrollment data as
may be necessary to demonstrate that the institution is a
Hispanic-serving institution as defined in section 585,
along with such other data and information as the Sec-
retary may by regulation require.
‘‘(b) APPLICATIONS.—Any institution which is deter-
mined by the Secretary to be a Hispanic-serving institution
(on the basis of the data and information submitted under
subsection (a)) may submit an application for assistance
under this part to the Secretary. Such application shall in-
clude—
‘‘(1) a 5-year plan for improving the assistance
provided by the Hispanic-serving institution to His-
panic students and other low-income individuals; and
‘‘(2) such other information and assurance as the
Secretary may require.
‘‘(c) PRIORITY.—With respect to applications for as-
sistance under this section, the Secretary shall give priority
to an application that contains satisfactory evidence that
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the Hispanic-serving institution has entered into or will
enter into a collaborative arrangement with at least one
local educational agency or community-based organization
to provide such agency or organization with assistance
(from funds other than funds provided under this part) in
reducing dropout rates for Hispanic students, improving
rates of academic achievement for Hispanic students, and
increasing the rates at which Hispanic secondary school
graduates enroll in higher education.
‘‘SEC. 584. SPECIAL RULE.
‘‘No Hispanic-serving institution that is eligible for
and receives funds under this part may receive funds under
part A or B of title III during the period for which funds
under this part are awarded.
‘‘SEC. 585. DEFINITIONS.
‘‘For purposes of this part:
‘‘(1) HISPANIC-SERVING INSTITUTION.—The term
‘Hispanic-serving institution’ means an institution of
higher education which—
‘‘(A) is an eligible institution under section
312(b);
‘‘(B) at the time of application, has an en-
rollment of undergraduate full-time equivalent
students that is at least 25 percent Hispanic stu-
dents; and
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‘‘(C) provides assurances that not less than
50 percent of its Hispanic students are low-in-
come individuals.
‘‘(2) LOW-INCOME INDIVIDUAL.—The term ‘low-
income individual’ means an individual from a fam-
ily whose taxable income for the preceding year did
not exceed 150 percent of an amount equal to the pov-
erty level determined by using criteria of poverty es-
tablished by the Bureau of the Census.
‘‘SEC. 586. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this part $45,000,000 for fiscal year 1999 and such sums
as may be necessary for each of the 4 succeeding fiscal years.
‘‘PART H—THURGOOD MARSHALL LEGAL
EDUCATIONAL OPPORTUNITY PROGRAM
‘‘SEC. 588. LEGAL EDUCATIONAL OPPORTUNITY PROGRAM.
‘‘(a) PROGRAM
AUTHORITY.—The Secretary shall
carry out a program to be known as the ‘Thurgood Marshall
Legal Educational Opportunity Program’ designed to pro-
vide low-income, minority, or disadvantaged college stu-
dents with the information, preparation, and financial as-
sistance to gain access to and complete law school study.
‘‘(b) ELIGIBILITY.—A college student is eligible for as-
sistance under this section if the student is—
‘‘(1) from a low-income family;
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‘‘(2) a minority; or
‘‘(3) from an economically or otherwise dis-
advantaged background.
‘‘(c) CONTRACT OR GRANT AUTHORIZED.—The Sec-
retary is authorized to enter into a contract with, or make
a grant to, the Council on Legal Education Opportunity,
for a period of not less than 5 years—
‘‘(1) to identify college students who are from
low-income families, are minorities, or are from dis-
advantaged backgrounds described in subsection
(b)(3);
‘‘(2) to prepare such students for study at ac-
credited law schools;
‘‘(3) to assist such students to select the appro-
priate law school, make application for entry into
law school, and receive financial assistance for such
study;
‘‘(4) to provide support services to such students
who are first-year law students to improve retention
and success in law school studies; and
‘‘(5) to motivate and prepare such students with
respect to law school studies and practice in low-in-
come communities.
‘‘(d) SERVICES PROVIDED.—In carrying out the pur-
poses described in subsection (c), the contract or grant shall
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provide for the delivery of services through prelaw informa-
tion resource centers, summer institutes, midyear seminars,
and other educational activities, conducted under this sec-
tion. Such services may include—
‘‘(1) information and counseling regarding—
‘‘(A) accredited law school academic pro-
grams, especially tuition, fees, and admission re-
quirements;
‘‘(B) course work offered and required for
graduation;
‘‘(C) faculty specialties and areas of legal
emphasis; and
‘‘(D) undergraduate preparatory courses
and curriculum selection;
‘‘(2) tutoring and academic counseling, includ-
ing assistance in preparing for bar examinations;
‘‘(3) prelaw mentoring programs, involving law
school faculty, members of State and local bar asso-
ciations, and retired and sitting judges, justices, and
magistrates;
‘‘(4) 
assistance 
in 
identifying 
preparatory
courses and material for the law school aptitude or
admissions tests;
‘‘(5) summer institutes for Thurgood Marshall
Fellows that expose the Fellows to a rigorous curricu-
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lum that emphasizes abstract thinking, legal analysis,
research, writing, and examination techniques; and
‘‘(6) midyear seminars and other educational ac-
tivities that are designed to reinforce reading, writ-
ing, and studying skills of Thurgood Marshall Fel-
lows.
‘‘(e) DURATION OF THE PROVISION OF SERVICES.—
The services described in subsection (d) may be provided—
‘‘(1) prior to the period of law school study;
‘‘(2) during the period of law school study; and
‘‘(3) during the period following law school study
and prior to taking a bar examination.
‘‘(f) SUBCONTRACTS AND SUBGRANTS.—For the pur-
poses of planning, developing, or delivering one or more of
the services described in subsection (d), the Council on Legal
Education Opportunity shall enter into subcontracts with,
and make subgrants to, institutions of higher education,
law schools, public and private agencies and organizations,
and combinations of such institutions, schools, agencies,
and organizations.
‘‘(g) STIPENDS.—The Secretary shall annually estab-
lish the maximum stipend to be paid (including allowances
for participant travel and for the travel of the dependents
of the participant) to Thurgood Marshall Fellows for the
period of participation in summer institutes and midyear
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seminars. A Fellow may be eligible for such a stipend only
if the Fellow maintains satisfactory academic progress to-
ward the Juris Doctor or Bachelor of Laws degree, as deter-
mined by the respective institutions.
‘‘(h) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section
$5,000,000 for fiscal year 1999 and each of the 4 succeeding
fiscal years.
‘‘PART I—GENERAL PROVISIONS
‘‘SEC. 591. ADMINISTRATIVE PROVISIONS FOR PARTS A, B,
AND C.
‘‘(a) COORDINATED ADMINISTRATION.—In carrying
out the purpose described in section 500(1), the Secretary
shall provide for coordinated administration and regulation
of graduate programs assisted under parts A, B, and C with
other Federal programs providing assistance for graduate
education in order to minimize duplication and improve
efficiency to ensure that the programs are carried out in
a manner most compatible with academic practices and
with the standard timetables for applications for, and noti-
fications of acceptance to, graduate programs.
‘‘(b) HIRING AUTHORITY.—For purposes of carrying
out parts A, B, and C, the Secretary shall appoint, without
regard to the provisions of title 5, United States Code, that
govern appointments in the competitive service, such ad-
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ministrative and technical employees, with the appropriate
educational background, as shall be needed to assist in the
administration of such parts. The employees shall be paid
without regard to the provisions of chapter 51 and sub-
chapter III of chapter 53 of such title relating to classifica-
tion and General Schedule pay rates.
‘‘(c) USE FOR RELIGIOUS PURPOSES PROHIBITED.—
No institutional payment or allowance under section 503(b)
or 516 shall be paid to a school or department of divinity
as a result of the award of a fellowship under part A or
B, respectively, to an individual who is studying for a reli-
gious vocation.
‘‘(d) EVALUATION.—The Secretary shall evaluate the
success of assistance provided to individuals under part A,
B, or C with respect to graduating from their degree pro-
grams, and placement in faculty and professional positions.
‘‘(e) CONTINUATION AWARDS.—The Secretary, using
funds appropriated to carry out parts A and B, and before
awarding any assistance under such parts to a recipient
that did not receive assistance under part C or D of title
IX (as such parts were in effect prior to the date of enact-
ment of the Higher Education Amendments of 1998) shall
continue to provide funding to recipients of assistance
under such part C or D (as so in effect), as the case may
be, pursuant to any multiyear award of such assistance.’’.
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TITLE VI—INTERNATIONAL
EDUCATION PROGRAMS
SEC. 601. INTERNATIONAL AND FOREIGN LANGUAGE STUD-
IES.
Part A of title VI (20 U.S.C. 1121 et seq.) is amended
to read as follows:
‘‘PART A—INTERNATIONAL AND FOREIGN
LANGUAGE STUDIES
‘‘SEC. 601. FINDINGS AND PURPOSES.
‘‘(a) FINDINGS.—The Congress finds that—
‘‘(1) the well-being of the United States, its econ-
omy and long-range security, is dependent on the edu-
cation and training of Americans in international
and foreign language studies and on a strong research
base in these areas;
‘‘(2) knowledge of other countries and the ability
to communicate in other languages is essential to the
promotion of mutual understanding and cooperation
among nations; and
‘‘(3) systematic efforts are necessary to enhance
the capacity of institutions of higher education in the
United States for—
‘‘(A) 
producing 
graduates 
with 
inter-
national and foreign language expertise and
knowledge; and
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‘‘(B) research regarding such expertise and
knowledge.
‘‘(b) PURPOSES.—It is the purpose of this part—
‘‘(1) to assist in the development of knowledge,
international study, resources and trained personnel;
‘‘(2) to stimulate the attainment of foreign lan-
guage acquisition and fluency;
‘‘(3) to develop a pool of international experts to
meet national needs; and
‘‘(4) to coordinate the programs of the Federal
Government in the areas of foreign language, area
and other international studies, including profes-
sional international affairs education, and research.
‘‘SEC. 602. GRADUATE AND UNDERGRADUATE LANGUAGE
AND AREA CENTERS AND PROGRAMS.
‘‘(a) NATIONAL LANGUAGE AND AREA CENTERS AND
PROGRAMS AUTHORIZED.—
‘‘(1) CENTERS AND PROGRAMS.—
‘‘(A) IN GENERAL.—The Secretary is au-
thorized—
‘‘(i) to make grants to institutions of
higher education, or combinations thereof,
for the purpose of establishing, strengthen-
ing, and operating comprehensive language
and area centers and programs; and
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‘‘(ii) to make grants to such institu-
tions or combinations for the purpose of es-
tablishing, strengthening, and operating a
diverse network of undergraduate language
and area centers and programs.
‘‘(B) NATIONAL
RESOURCES.—The centers
and programs referred to in paragraph (1) shall
be national resources for—
‘‘(i) teaching of any modern foreign
language;
‘‘(ii) instruction in fields needed to
provide full understanding of areas, regions,
or countries in which such language is com-
monly used;
‘‘(iii) research and training in inter-
national studies, and the international and
foreign language aspects of professional and
other fields of study; and
‘‘(iv) instruction and research on
issues in world affairs which concern one or
more countries.
‘‘(2) AUTHORIZED ACTIVITIES.—Any such grant
may be used to pay all or part of the cost of establish-
ing or operating a center or program, including the
cost of—
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‘‘(A) faculty, staff, and student travel in
foreign areas, regions, or countries;
‘‘(B) teaching and research materials;
‘‘(C) curriculum planning and development;
‘‘(D) bringing visiting scholars and faculty
to the center to teach or to conduct research;
‘‘(E) establishing and maintaining linkages
with overseas institutions of higher education
and other organizations that may contribute to
the teaching and research of the center or pro-
gram; and
‘‘(F) training and improvement of the staff,
for the purpose of, and subject to such conditions
as the Secretary finds necessary for, carrying out
this section.
‘‘(3) GRANTS
TO
MAINTAIN
LIBRARY
COLLEC-
TIONS.—The Secretary may make grants to centers
described in paragraph (1) having important library
collections, as determined by the Secretary, for the
maintenance of such collections.
‘‘(4) OUTREACH
GRANTS
AND
SUMMER
INSTI-
TUTES.—The Secretary may make additional grants
to centers described in paragraph (1) for any one or
more of the following purposes:
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‘‘(A) Programs of linkage or outreach be-
tween foreign language, area studies, and other
international fields and professional schools and
colleges.
‘‘(B) Programs of linkage or outreach with
2-year and 4-year colleges and universities.
‘‘(C) Programs of linkage or outreach with
departments or agencies of Federal and State
Governments.
‘‘(D) Programs of linkage or outreach with
the news media, business, professional, or trade
associations.
‘‘(E) Summer institutes in foreign area,
foreign language, and other international fields
designed to carry out the programs of linkage
and outreach in subparagraphs (A), (B), (C),
and (D).
‘‘(b) STIPENDS FOR FOREIGN LANGUAGE AND AREA
STUDIES.—
‘‘(1) IN GENERAL.—The Secretary is authorized
to make grants to institutions of higher education or
combinations of such institutions for the purpose of
paying stipends to individuals undergoing advanced
training in any center or program approved by the
Secretary.
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‘‘(2) REQUIREMENTS.—Students receiving sti-
pends described in paragraph (1) shall be individuals
who are engaged in an instructional program with
stated performance goals for functional foreign lan-
guage use or in a program developing such perform-
ance goals, in combination with area studies, inter-
national studies, or the international aspects of a pro-
fessional studies program.
‘‘(3) ALLOWANCES.—Stipends awarded to grad-
uate level recipients may include allowances for de-
pendents and for travel for research and study in the
United States and abroad.
‘‘(c) SPECIAL RULE WITH RESPECT TO TRAVEL.—No
funds may be expended under this part for undergraduate
travel except in accordance with rules prescribed by the Sec-
retary setting forth policies and procedures to assure that
Federal funds made available for such travel are expended
as part of a formal program of supervised study.
‘‘SEC. 603. LANGUAGE RESOURCE CENTERS.
‘‘(a) LANGUAGE RESOURCE CENTERS AUTHORIZED.—
The Secretary is authorized to make grants to and enter
into contracts with institutions of higher education, or com-
binations of such institutions, for the purpose of establish-
ing, strengthening, and operating a small number of na-
tional language resource and training centers, which shall
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serve as resources to improve the capacity to teach and
learn foreign languages effectively.
‘‘(b) AUTHORIZED ACTIVITIES.—The activities carried
out by the centers described in subsection (a)—
‘‘(1) shall include effective dissemination efforts,
whenever appropriate; and
‘‘(2) may include—
‘‘(A) the conduct and dissemination of re-
search on new and improved teaching methods,
including the use of advanced educational tech-
nology;
‘‘(B) the development and dissemination of
new teaching materials reflecting the use of such
research in effective teaching strategies;
‘‘(C) the development, application, and dis-
semination of performance testing appropriate to
an educational setting for use as a standard and
comparable measurement of skill levels in all
languages;
‘‘(D) the training of teachers in the admin-
istration and interpretation of performance tests,
the use of effective teaching strategies, and the
use of new technologies;
‘‘(E) the publication and dissemination to
individuals and organizations in the foreign lan-
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guage field of instructional materials in the less
commonly taught languages;
‘‘(F) the development and dissemination of
materials designed to serve as a resource for for-
eign language teachers at the elementary and
secondary school levels; and
‘‘(G) the operation of intensive summer lan-
guage institutes to train advanced foreign lan-
guage students, provide professional development,
and improve language instruction through
preservice and inservice language training for
teachers.
‘‘(c) CONDITIONS FOR GRANTS.—Grants under this
section shall be made on such conditions as the Secretary
determines to be necessary to carry out the provisions of
this section.
‘‘SEC. 604. UNDERGRADUATE INTERNATIONAL STUDIES
AND FOREIGN LANGUAGE PROGRAMS.
‘‘(a) INCENTIVES FOR THE CREATION OF NEW PRO-
GRAMS AND THE STRENGTHENING OF EXISTING PROGRAMS
IN UNDERGRADUATE INTERNATIONAL STUDIES AND FOR-
EIGN LANGUAGES.—
‘‘(1) AUTHORITY.—The Secretary is authorized
to make grants to institutions of higher education,
combinations of such institutions, or partnerships be-
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tween nonprofit educational institutions and institu-
tions of higher education, to assist such institutions,
combinations or partnerships in planning, develop-
ing, and carrying out programs to improve under-
graduate instruction in international studies and for-
eign languages. Such grants shall be awarded to insti-
tutions, combinations or partnerships seeking to cre-
ate new programs or to strengthen existing programs
in area studies, foreign languages, and other inter-
national fields.
‘‘(2) FEDERAL SHARE AND USE OF FUNDS.—
Grants made under this section may be used to pay
not more than 50 percent of the cost of projects and
activities which are an integral part of such a pro-
gram, such as—
‘‘(A) planning for the development and ex-
pansion of undergraduate programs in inter-
national studies and foreign languages;
‘‘(B) teaching, research, curriculum develop-
ment, faculty training in the United States or
abroad, and other related activities, including
the expansion of library and teaching resources;
‘‘(C) expansion of opportunities for learning
foreign languages, including less commonly
taught languages;
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‘‘(D) programs under which foreign teachers
and scholars may visit institutions as visiting
faculty;
‘‘(E) programs designed to develop or en-
hance linkages between 2-year and 4-year insti-
tutions of higher education, or baccalaureate and
post-baccalaureate programs or institutions;
‘‘(F) the development of undergraduate
study abroad programs in locations abroad in
which such study opportunities are not otherwise
available and the integration of these programs
into specific on-campus degree programs;
‘‘(G) the development of model programs to
enhance the effectiveness of study abroad, includ-
ing predeparture and post return programs;
‘‘(H) the development of programs designed
to integrate professional and technical education
with area studies, foreign languages, and other
international fields;
‘‘(I) the conduct of summer institutes in for-
eign area, foreign language, and other inter-
national fields for purposes that are consistent
with the projects and activities described in this
subsection; and
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‘‘(J) the development of partnerships be-
tween institutions of higher education and the
private sector, government, and elementary and
secondary education institutions to enhance
international knowledge.
‘‘(3) NON-FEDERAL
SHARE.—The non-Federal
share of the cost of the programs assisted under this
subsection may be provided either in cash or in kind.
Such assistance may be composed of institutional and
noninstitutional funds, including State, private sec-
tor, corporation, or foundation contributions.
‘‘(4) PRIORITY.—In awarding grants under this
section, the Secretary shall give priority to applica-
tions from institutions of higher education, combina-
tions or partnerships that require entering students to
have successfully completed at least 2 years of second-
ary school foreign language instruction or that re-
quire each graduating student to earn 2 years of post-
secondary credit in a foreign language (or have dem-
onstrated equivalent competence in the foreign lan-
guage) or, in the case of a 2-year degree granting in-
stitution, offer 2 years of postsecondary credit in a
foreign language.
‘‘(5) GRANT
CONDITIONS.—Grants under this
subsection shall be made on such conditions as the
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Secretary determines to be necessary to carry out this
subsection.
‘‘(6) APPLICATION.—Each application for assist-
ance under this subsection shall include—
‘‘(A) evidence that the applicant has con-
ducted extensive planning prior to submitting
the application;
‘‘(B) an assurance that the faculty and ad-
ministrators of all relevant departments and
programs served by the applicant are involved in
ongoing collaboration with regard to achieving
the stated objectives of the application;
‘‘(C) an assurance that students at the ap-
plicant institutions, as appropriate, will have
equal access to, and derive benefits from, the pro-
gram assisted under this subsection; and
‘‘(D) an assurance that each institution,
combination or partnership will use the Federal
assistance provided under this subsection to sup-
plement and not supplant funds expended by the
institution, prior to the receipt of the Federal as-
sistance, for programs to improve undergraduate
instruction in international studies and foreign
languages.
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‘‘(7) EVALUATION.—The Secretary may establish
requirements for program evaluations and require
grant recipients to submit annual reports that evalu-
ate the progress and performance of students partici-
pating in programs assisted under this subsection.
‘‘(b) PROGRAMS
OF NATIONAL SIGNIFICANCE.—The
Secretary may also award grants to public and private
nonprofit agencies and organizations, including profes-
sional and scholarly associations, whenever the Secretary
determines such grants will make an especially significant
contribution to improving undergraduate international
studies and foreign language programs.
‘‘SEC. 605. RESEARCH; STUDIES; ANNUAL REPORT.
‘‘(a) AUTHORIZED ACTIVITIES.—The Secretary may,
directly or through grants or contracts, conduct research
and studies that contribute to achieving the purposes of this
part. Such research and studies may include—
‘‘(1) studies and surveys to determine needs for
increased or improved instruction in foreign lan-
guage, area studies, or other international fields, in-
cluding the demand for foreign language, area, and
other international specialists in government, edu-
cation, and the private sector;
‘‘(2) studies and surveys to assess the utilization
of graduates of programs supported under this title by
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governmental, educational, and private sector organi-
zations and other studies assessing the outcomes and
effectiveness of programs so supported;
‘‘(3) evaluation of the extent to which programs
assisted under this title that address national needs
would not otherwise be offered;
‘‘(4) comparative studies of the effectiveness of
strategies to provide international capabilities at in-
stitutions of higher education;
‘‘(5) research on more effective methods of pro-
viding instruction and achieving competency in for-
eign languages;
‘‘(6) the development and publication of special-
ized materials for use in foreign language, area stud-
ies, and other international fields, or for training for-
eign language, area, and other international special-
ists;
‘‘(7) studies and evaluations of effective practices
in the dissemination of international information,
materials, research, teaching strategies, and testing
techniques throughout the education community, in-
cluding elementary and secondary schools; and
‘‘(8) the application of performance tests and
standards across all areas of foreign language instruc-
tion and classroom use.
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‘‘(b) ANNUAL REPORT.—The Secretary shall prepare,
publish, and announce an annual report listing the books
and research materials produced with assistance under this
section.
‘‘SEC. 606. SELECTION OF CERTAIN GRANT RECIPIENTS.
‘‘(a) COMPETITIVE
GRANTS.—The Secretary shall
award grants under section 602 competitively on the basis
of criteria that separately, but not less rigorously, evaluates
the applications for comprehensive and undergraduate lan-
guage and area centers and programs.
‘‘(b) SELECTION CRITERIA.—The Secretary shall set
criteria for grants awarded under section 602 by which a
determination of excellence shall be made to meet the differ-
ing objectives of graduate and undergraduate institutions.
‘‘(c) EQUITABLE DISTRIBUTION
OF GRANTS.—The
Secretary shall, to the extent practicable, award grants
under this part (other than section 602) in such manner
as to achieve an equitable distribution of the grant funds
throughout the United States, based on the merit of a pro-
posal as determined pursuant to a peer review process in-
volving broadly representative professionals.
‘‘SEC. 607. EQUITABLE DISTRIBUTION OF CERTAIN FUNDS.
‘‘(a) SELECTION CRITERIA.—The Secretary shall make
excellence the criterion for selection of grants awarded
under section 602.
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‘‘(b) EQUITABLE DISTRIBUTION.—To the extent prac-
ticable and consistent with the criterion of excellence, the
Secretary shall award grants under this part (other than
section 602) in such a manner as will achieve an equitable
distribution of funds throughout the United States.
‘‘(c) SUPPORT FOR UNDERGRADUATE EDUCATION.—
The Secretary shall also award grants under this part in
such manner as to ensure that an appropriate portion of
the funds appropriated for this part (as determined by the
Secretary) are used to support undergraduate education.
‘‘SEC. 608. AMERICAN OVERSEAS RESEARCH CENTERS.
‘‘(a) CENTERS AUTHORIZED.—The Secretary is au-
thorized to make grants to and enter into contracts with
any American overseas research center that is a consortium
of institutions of higher education (hereafter in this section
referred to as a ‘‘center’’) to enable such center to promote
postgraduate research, exchanges and area studies.
‘‘(b) USE OF GRANTS.—Grants made and contracts
entered into pursuant to this section may be used to pay
all or a portion of the cost of establishing or operating a
center or program, including—
‘‘(1) the cost of faculty and staff stipends and
salaries;
‘‘(2) the cost of faculty, staff, and student travel;
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‘‘(3) the cost of the operation and maintenance
of overseas facilities;
‘‘(4) the cost of teaching and research materials;
‘‘(5) the cost of acquisition, maintenance, and
preservation of library collections;
‘‘(6) the cost of bringing visiting scholars and
faculty to a center to teach or to conduct research;
‘‘(7) the cost of organizing and managing con-
ferences; and
‘‘(8) the cost of publication and dissemination of
material for the scholarly and general public.
‘‘(c) LIMITATION.—The Secretary shall only award
grants to and enter into contracts with centers under this
section that—
‘‘(1) receive more than 50 percent of their fund-
ing from public or private United States sources;
‘‘(2) have a permanent presence in the country
in which the center is located; and
‘‘(3) are organizations described in section
501(c)(3) of the Internal Revenue Code of 1986 which
are exempt from taxation under section 501(a) of
such Code.
‘‘(d) DEVELOPMENT GRANTS.—The Secretary is au-
thorized to make grants for the establishment of new centers.
The grants may be used to fund activities that, within 1
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year, will result in the creation of a center described in
subsection (c).
‘‘SEC. 609. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this part $80,000,000 for fiscal year 1999, and such sums
as may be necessary for each of the 4 succeeding fiscal
years.’’.
SEC. 602. BUSINESS AND INTERNATIONAL EDUCATION PRO-
GRAMS.
Part B of title VI (20 U.S.C. 1130 et seq.) is amend-
ed—
(1) in section 612 (20 U.S.C. 1130–1)—
(A) in subsection (c)—
(i) in paragraph (1)—
(I) in subparagraph (B), by strik-
ing ‘‘advanced’’; and
(II) in subparagraph (C), by
striking ‘‘evening or summer’’; and
(ii) in paragraph (2)(C), by inserting
‘‘foreign language,’’ after ‘‘studies,’’; and
(B) in subsection (d)(2)(G), by inserting ‘‘,
such as a representative of a community college
in the region served by the center’’ before the pe-
riod; and
(2) in section 614 (20 U.S.C. 1130b)—
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(A) in subsection (a), by striking ‘‘1993’’
and inserting ‘‘1999’’; and
(B) in subsection (b), by striking ‘‘1993’’
and inserting ‘‘1999’’.
SEC. 603. INSTITUTE FOR INTERNATIONAL PUBLIC POLICY.
Part C of title VI (20 U.S.C. 1131 et seq.) is amend-
ed—
(1) in section 621(e) (20 U.S.C. 1131(e))—
(A) by striking ‘‘one-fourth’’ and inserting
‘‘one-half’’; and
(B) by adding at the end the following:
‘‘The non-Federal contribution shall be made
from private sector sources.’’;
(2) by redesignating sections 622 through 627
(20 U.S.C. 1131a and 1131f) as sections 623 through
628, respectively; and
(3) by inserting after section 621 (20 U.S.C.
1131) the following:
‘‘SEC. 622. INSTITUTIONAL DEVELOPMENT.
‘‘(a) IN GENERAL.—The Institute shall award grants,
from amounts available to the Institute for each fiscal year,
to historically Black colleges and universities, Hispanic-
serving institutions, Tribally Controlled Colleges or Univer-
sities, and minority institutions, to enable such colleges,
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universities, and institutions to strengthen international af-
fairs programs.
‘‘(b) APPLICATION.—No grant may be made by the In-
stitute unless an application is made by the college, univer-
sity, or institution at such time, in such manner, and ac-
companied by such information as the Institute may re-
quire.
‘‘(c) DEFINITIONS.—In this section—
‘‘(1) the term ‘historically Black college and uni-
versity’ has the meaning given the term in section
322;
‘‘(2) the term ‘Hispanic-serving institution’ has
the meaning given the term in section 585;
‘‘(3) the term ‘Tribally Controlled College or
University’ has the meaning given the term in section
2 of the Tribally Controlled College or University As-
sistance Act of 1978 (25 U.S.C. 1801); and
‘‘(4) the term ‘minority institution’ has the
meaning given the term in section 365.’’;
(4) in section 623 (as redesignated by paragraph
(2))—
(A) in the section heading, by striking
‘‘JUNIOR YEAR’’ and inserting ‘‘STUDY’’;
(B) in subsection (b)(2)—
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(i) by inserting ‘‘, or completing the
third year of study in the case of a summer
abroad program,’’ after ‘‘study’’; and
(ii) by striking ‘‘junior year’’ and in-
serting ‘‘study’’;
(C) in subsection (c)—
(i) in the matter preceding paragraph
(1), by striking ‘‘junior year’’ and inserting
‘‘study’’;
(ii) in paragraph (1), by striking
‘‘junior year’’ and inserting ‘‘study’’; and
(iii) in paragraph (2)—
(I) by striking ‘‘one-half’’ and in-
serting ‘‘one-third’’; and
(II) by striking ‘‘junior year’’ and
inserting ‘‘study’’;
(5) in section 627 (as redesignated by paragraph
(2)) (20 U.S.C. 1131e), by striking ‘‘625’’ and insert-
ing ‘‘626’’; and
(6) in section 628 (as redesignated by paragraph
(2)) (20 U.S.C. 1131f), by striking ‘‘1993’’ and insert-
ing ‘‘1999’’.
SEC. 604. GENERAL PROVISIONS.
Section 632 (20 U.S.C. 1132–1) is repealed.
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TITLE VII—RELATED PROGRAMS
AND AMENDMENTS TO OTHER
ACTS
PART A—INDIAN EDUCATION PROGRAMS
SEC. 711. TRIBALLY CONTROLLED COMMUNITY COLLEGE
ASSISTANCE ACT OF 1978.
(a) REAUTHORIZATION.—
(1) AMOUNT OF GRANTS.—Section 108(a)(2) of
the Tribally Controlled Community College Assistance
Act of 1978 (25 U.S.C. 1808(a)(2)) is amended by
striking ‘‘$5,820’’ and inserting ‘‘$6,000’’.
(2) AUTHORIZATION OF APPROPRIATIONS.—
(A) TITLE I.—Section 110(a) of the Trib-
ally Controlled Community College Assistance
Act of 1978 (25 U.S.C. 1810(a)) is amended—
(i) in paragraph (1), by striking
‘‘1993’’ and inserting ‘‘1999’’;
(ii) in paragraph (2), by striking
‘‘$30,000,000 for fiscal year 1993’’ and in-
serting ‘‘$40,000,000 for fiscal year 1999’’;
(iii) in paragraph (3), by striking
‘‘1993’’ and inserting ‘‘1999’’; and
(iv) in paragraph (4), by striking
‘‘1993’’ and inserting ‘‘1999’’.
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(B) TITLE III.—Section 306(a) of the Trib-
ally Controlled Community College Assistance
Act of 1978 (25 U.S.C. 1836(a)) is amended by
striking ‘‘1993’’ and inserting ‘‘1999’’.
(C) TITLE IV.—Section 403 of the Tribal
Economic Development and Technology Related
Education Assistance Act of 1990 (25 U.S.C.
1852) is amended by striking ‘‘1993’’ and insert-
ing ‘‘1999’’.
(b) NAME CHANGE.—The Tribally Controlled Commu-
nity College Assistance Act of 1978 (25 U.S.C. 1801 et seq.)
is amended—
(1) by striking ‘‘community college’’ each place
the term appears and inserting ‘‘college or univer-
sity’’;
(2) by striking ‘‘Community College’’ each place
the term appears (other than when such term is pre-
ceded by the term ‘‘Navajo’’) and inserting ‘‘College or
University’’;
(3) by striking ‘‘community colleges’’ each place
the term appears and inserting ‘‘colleges or univer-
sities’’;
(4) by striking ‘‘such college’’ each place the term
appears and inserting ‘‘such college or university’’;
and
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(5) by striking ‘‘community college’s’’ and insert-
ing ‘‘college or university’s’’.
SEC. 712. AMERICAN INDIAN, ALASKA NATIVE, AND NATIVE
HAWAIIAN 
CULTURE 
AND 
ART 
DEVELOP-
MENT.
Section 1531 of the American Indian, Alaska Native,
and Native Hawaiian Culture and Art Development Act
(20 U.S.C. 4451) is amended to read as follows:
‘‘SEC. 1531. AUTHORIZATION OF APPROPRIATIONS.
‘‘There is authorized to be appropriated to carry out
part A $5,000,000 for fiscal year 1999.’’.
SEC. 713. NAVAJO COMMUNITY COLLEGE ACT.
Section 5(a)(1) of the Navajo Community College Act
(25 U.S.C. 640c–1(a)(1)) is amended by striking ‘‘1993’’
and inserting ‘‘1999’’.
PART B—ADVANCED PLACEMENT INCENTIVE
PROGRAM
SEC. 721. ADVANCED PLACEMENT INCENTIVE PROGRAM.
(a) PROGRAM ESTABLISHED.—The Secretary of Edu-
cation is authorized to make grants to States having appli-
cations approved under subsection (d), from allotments
under subsection (b), to enable the States to reimburse low-
income individuals to cover part or all of the cost of ad-
vanced placement test fees, if the low-income individuals—
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(1) are enrolled in an advanced placement class;
and
(2) plan to take an advanced placement test.
(b) ALLOTMENT.—From the sum appropriated under
subsection (j) for a fiscal year, the Secretary shall allot to
each State an amount that bears the same relation to the
sum as the number of low-income individuals in the State
bears to the number of low-income individuals in all States.
(c) INFORMATION DISSEMINATION.—The State edu-
cational agency may use not more than 5 percent of grant
funds received for a fiscal year to disseminate information
regarding the availability of test fee payments under this
section to eligible individuals through secondary school
teachers and guidance counselors.
(d) REQUIREMENTS
FOR APPROVAL
OF APPLICA-
TIONS.—In approving applications for grants the Secretary
of Education shall—
(1) require that each such application contain a
description of the advance placement test fees the
State will pay on behalf of individual students;
(2) require an assurance that any funds received
under this section, other than funds used in accord-
ance with subsection (c), shall be used only to pay ad-
vanced placement test fees; and
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(3) contain such information as the Secretary
may require to demonstrate that the State will ensure
that a student is eligible for payments under this sec-
tion, including the documentation required by chapter
1 of subpart 2 of part A of title IV of the Higher
Education Act of 1965 (20 U.S.C. 1070a–11 et seq.).
(e) FUNDING RULE.—Funds provided under this sec-
tion shall be used to supplement and not supplant other
Federal, State, local or private funds available to assist low-
income individuals in paying for advanced placement test-
ing, except that such funds may be used to supplant the
funds so available if the funds used to supplant are used
to increase the participation of low-income individuals in
advanced placement courses through teacher training and
other activities directly related to increasing the availabil-
ity of advanced placement courses.
(f) SPECIAL RULE.—The Secretary of Education shall
only award grants under this section for a fiscal year if
the amount the College Board spends for the College Board’s
fee assistance program for low-income students for the fiscal
year is not less than the amount the College Board spent
for such program for the preceding fiscal year.
(g) REGULATIONS.—The Secretary of Education shall
prescribe such regulations as are necessary to carry out this
section.
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(h) REPORT.—Each State annually shall report to the
Secretary of Education regarding—
(1) the number of low-income individuals in the
State who receive assistance under this section; and
(2) the teacher training and other activities de-
scribed in subsection (e).
(i) DEFINITION.—In this section:
(1) ADVANCED
PLACEMENT
TEST.—The term
‘‘advanced placement test’’ includes only an advanced
placement test approved by the Secretary of Edu-
cation for the purposes of this section.
(2) LOW-INCOME INDIVIDUAL.—The term ‘‘low-
income individual’’ has the meaning given the term
in section 402A(g)(2) of the Higher Education Act of
1965 (20 U.S.C. 1070a–11(g)(2)).
(j) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated $10,000,000 for fiscal year
1999 and such sums as may be necessary for each of the
4 succeeding fiscal years to carry out this section.
PART C—UNITED STATES INSTITUTE OF PEACE
SEC. 731. AUTHORITIES OF THE UNITED STATES INSTITUTE
OF PEACE.
The United States Institute of Peace Act (22 U.S.C.
4601 et seq.) is amended—
(1) in section 1705 (22 U.S.C. 4604)—
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(A) in subsection (f), by inserting ‘‘personal
service and other’’ after ‘‘may enter into’’; and
(B) in subsection (o), by inserting after
‘‘Services’’ the following: ‘‘and use all sources of
supply and services of the General Services Ad-
ministration’’;
(2) 
in 
section 
1710(a)(1) 
(22 
U.S.C.
4609(a)(1))—
(A) by striking ‘‘1993’’ and inserting
‘‘1999’’; and
(B) by striking ‘‘6’’ and inserting ‘‘4’’; and
(3) in the second and third sentences of section
1712 (22 U.S.C. 4611), by striking ‘‘shall’’ each place
the term appears and inserting ‘‘may’’.
PART D—COMMUNITY SCHOLARSHIP
MOBILIZATION
SEC. 741. SHORT TITLE.
This part may be cited as the ‘‘Community Scholar-
ship Mobilization Act.’’
SEC. 742. FINDINGS.
Congress finds that—
(1) the local community, when properly orga-
nized and challenged, is one of the best sources of aca-
demic support, motivation toward achievement, and
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financial resources for aspiring postsecondary stu-
dents;
(2) local communities, working to complement or
augment services currently offered by area schools and
colleges, can raise the educational expectations and
increase the rate of postsecondary attendance of their
youth by forming locally-based organizations that
provide both academic support (including guidance,
counseling, mentoring, tutoring, encouragement, and
recognition) and tangible, locally raised, effectively
targeted, publicly recognized, financial assistance;
(3) proven methods of stimulating these commu-
nity efforts can be promoted through Federal support
for the establishment of regional, State or community
program centers to organize and challenge community
efforts to develop educational incentives and support
for local students; and
(4) using Federal funds to leverage private con-
tributions to help students from low-income families
attain educational and career goals is an efficient
and effective investment of scarce taxpayer-provided
resources.
SEC. 743. DEFINITIONS.
In this part:
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(1) REGIONAL, STATE OR COMMUNITY PROGRAM
CENTER.—The term ‘‘regional, State or community
program center’’ means an organization that—
(A) is a division or member of, responsible
to, and overseen by, a national organization;
and
(B) is staffed by professionals trained to
create, develop, and sustain local entities in
towns, cities, and neighborhoods.
(2) LOCAL
ENTITY.—The term ‘‘local entity’’
means an organization that—
(A) is a nonprofit organization that is de-
scribed in section 501(c)(3) of the Internal Reve-
nue Code of 1986, and exempt from taxation
under section 501(a) of such Code (or shall meet
this criteria through affiliation with the national
organization);
(B) is formed for the purpose of providing
educational scholarships and academic support
for residents of the local community served by
such organization;
(C) solicits broad-based community support
in its academic support and fund-raising activi-
ties;
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(D) is broadly representative of the local
community in the structures of its volunteer-op-
erated organization and has a board of directors
that includes leaders from local neighborhood or-
ganizations and neighborhood residents, such as
school or college personnel, parents, students,
community agency representatives, retirees, and
representatives of the business community;
(E) awards scholarships without regard to
age, sex, marital status, race, creed, color, reli-
gion, national origin or disability; and
(F) gives priority to awarding scholarships
for postsecondary education to deserving students
from low-income families in the local commu-
nity.
(3) NATIONAL
ORGANIZATION.—The term ‘‘na-
tional organization’’ means an organization that—
(A) has the capacity to create, develop and
sustain local entities and affiliated regional,
State or community program centers;
(B) has the capacity to sustain newly cre-
ated local entities in towns, cities, and neighbor-
hoods through ongoing training support pro-
grams;
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(C) is described in section 501(c)(3) of the
Internal Revenue Code of 1986, and exempt from
taxation under section 501(a) of such Code;
(D) is a publicly supported organization
within the meaning of section 170(b)(1)(A)(iv) of
such Code;
(E) ensures that each of the organization’s
local entities meet the criteria described in sub-
paragraphs (C) and (D); and
(F) has a program for or experience in co-
operating with secondary and postsecondary in-
stitutions in carrying out the organization’s
scholarship and academic support activities.
(4) HIGH POVERTY AREA.—The term ‘‘high pov-
erty area’’ means a community with a higher per-
centage of children from low-income families than the
national average of such percentage and a lower per-
centage of children pursuing postsecondary education
than the national average of such percentage.
(5) STUDENTS FROM LOW-INCOME FAMILIES.—
The term ‘‘students from low-income families’’ means
students determined, pursuant to part F of title IV of
the Higher Education Act of 1965 (20 U.S.C. 1087kk
et seq.), to be eligible for a Federal Pell Grant under
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subpart 1 of part A of title IV of such Act (20 U.S.C.
1070a).
SEC. 744. PURPOSE, ENDOWMENT GRANT AUTHORITY.
(a) PURPOSE.—It is the purpose of this part to estab-
lish and support regional, State or community program
centers to enable such centers to foster the development of
local entities in high poverty areas that promote higher edu-
cation goals for students from low-income families by—
(1) providing academic support, including guid-
ance, counseling, mentoring, tutoring, and recogni-
tion; and
(2) providing scholarship assistance for the cost
of postsecondary education.
(b) ENDOWMENT GRANT AUTHORITY.—From the funds
appropriated pursuant to the authority of section 746, the
Secretary shall award an endowment grant, on a competi-
tive basis, to a national organization to enable such organi-
zation to support the establishment or ongoing work of re-
gional, State or community program centers that foster the
development of local entities in high poverty areas to im-
prove high school graduation rates and postsecondary at-
tendance through the provision of academic support services
and scholarship assistance for the cost of postsecondary edu-
cation.
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SEC. 745. GRANT AGREEMENT AND REQUIREMENTS.
(a) IN GENERAL.—The Secretary shall award one or
more endowment grants described in section 744(b) pursu-
ant to an agreement between the Secretary and a national
organization. Such agreement shall—
(1) require a national organization to establish
an endowment fund in the amount of the grant, the
corpus of which shall remain intact and the interest
income from which shall be used to support the activi-
ties described in paragraphs (2) and (3);
(2) require a national organization to use 70
percent of the interest income from the endowment
fund in any fiscal year to support the establishment
or ongoing work of regional, State or community pro-
gram centers to enable such centers to work with local
communities to establish local entities in high poverty
areas and provide ongoing technical assistance, train-
ing workshops, and other activities to help ensure the
ongoing success of the local entities;
(3) require a national organization to use 30
percent of the interest income from the endowment
fund in any fiscal year to provide scholarships for
postsecondary education to students from low-income
families, which scholarships shall be matched on a
dollar-for-dollar basis from funds raised by the local
entities;
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(4) require that at least 50 percent of all the in-
terest income from the endowment be allocated to es-
tablish new local entities or support regional, State or
community program centers in high poverty areas;
(5) require a national organization to submit,
for each fiscal year in which such organization uses
the interest from the endowment fund, a report to the
Secretary that contains—
(A) a description of the programs and ac-
tivities supported by the interest on the endow-
ment fund;
(B) the audited financial statement of the
national organization for the preceding fiscal
year;
(C) a plan for the programs and activities
to be supported by the interest on the endowment
fund as the Secretary may require; and
(D) an evaluation of the programs and ac-
tivities supported by the interest on the endow-
ment fund as the Secretary may require; and
(E) data indicating the number of students
from low-income families who receive scholar-
ships from local entities, and the amounts of
such scholarships;
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(6) contain such assurances as the Secretary
may require with respect to the management and op-
eration of the endowment fund; and
(7) contain an assurance that if the Secretary
determines that such organization is not in substan-
tial compliance with the provisions of this part, then
the national organization shall pay to the Secretary
an amount equal to the corpus of the endowment fund
plus any accrued interest on such fund that is avail-
able to the national organization on the date of such
determination.
(b) RETURNED FUNDS.—All funds returned to the Sec-
retary pursuant to subsection (a)(7) shall be available to
the Secretary to carry out any scholarship or grant pro-
gram assisted under title IV of the Higher Education Act
of 1965 (20 U.S.C. 1070 et seq.).
SEC. 746. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out
this part $10,000,000 for fiscal year 2000.
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PART E—GRANTS TO STATES FOR WORKPLACE
AND 
COMMUNITY 
TRANSITION 
TRAINING
FOR INCARCERATED YOUTH OFFENDERS
SEC. 751. GRANTS TO STATES FOR WORKPLACE AND COM-
MUNITY TRANSITION TRAINING FOR INCAR-
CERATED YOUTH OFFENDERS.
(a) FINDINGS.—Congress makes the following findings:
(1) Over 150,000 youth offenders age 21 and
younger are incarcerated in the Nation’s jails, juve-
nile facilities, and prisons.
(2) Most youth offenders who are incarcerated
have been sentenced as first-time adult felons.
(3) Approximately 75 percent of youth offenders
are high school dropouts who lack basic literacy and
life skills, have little or no job experience, and lack
marketable skills.
(4) The average incarcerated youth has attended
school only through grade 10.
(5) Most of these youths can be diverted from a
life of crime into productive citizenship with available
educational, vocational, work skills, and related serv-
ice programs.
(6) If not involved with educational programs
while incarcerated, almost all of these youths will re-
turn to a life of crime upon release.
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(7) The average length of sentence for a youth of-
fender is about 3 years. Time spent in prison pro-
vides a unique opportunity for education and train-
ing.
(8) Even with quality education and training
provided during incarceration, a period of intense su-
pervision, support, and counseling is needed upon re-
lease to ensure effective reintegration of youth offend-
ers into society.
(9) Research consistently shows that the vast ma-
jority of incarcerated youths will not return to the
public schools to complete their education.
(10) There is a need for alternative educational
opportunities during incarceration and after release.
(b) DEFINITION.—For purposes of this part, the term
‘‘youth offender’’ means a male or female offender under
the age of 25, who is incarcerated in a State prison, includ-
ing a prerelease facility.
(c) GRANT PROGRAM.—The Secretary of Education
(in this section referred to as the ‘‘Secretary’’) shall estab-
lish a program in accordance with this section to provide
grants to the State correctional education agencies in the
States, from allocations for the States under subsection (i),
to assist and encourage incarcerated youths to acquire func-
tional literacy, life, and job skills, through the pursuit of
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a postsecondary education certificate, or an associate of arts
or bachelor’s degree while in prison, and employment coun-
seling and other related services which start during incar-
ceration and continue through prerelease and while on pa-
role.
(d) APPLICATION.—To be eligible for a grant under
this section, a State correctional education agency shall sub-
mit to the Secretary a proposal for a youth offender pro-
gram that—
(1) identifies the scope of the problem, including
the number of incarcerated youths in need of post-
secondary education and vocational training;
(2) lists the accredited public or private edu-
cational institution or institutions that will provide
postsecondary educational services;
(3) lists the cooperating agencies, public and pri-
vate, or businesses that will provide related services,
such as counseling in the areas of career development,
substance abuse, health, and parenting skills;
(4) describes the evaluation methods and per-
formance measures that the State correctional edu-
cation agency will employ, which methods and meas-
ures—
(A) shall be appropriate to meet the goals
and objectives of the proposal; and
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(B) shall include measures of—
(i) program completion;
(ii) student academic and vocational
skill attainment;
(iii) success in job placement and re-
tention; and
(iv) recidivism;
(5) describes how the proposed programs are to
be integrated with existing State correctional edu-
cation programs (such as adult education, graduate
education degree programs, and vocational training)
and State industry programs;
(6) addresses the educational needs of youth of-
fenders who are in alternative programs (such as boot
camps); and
(7) describes how students will be selected so that
only youth offenders eligible under subsection (f) will
be enrolled in postsecondary programs.
(e) PROGRAM REQUIREMENTS.—Each State correc-
tional education agency receiving a grant under this section
shall—
(1) integrate activities carried out under the
grant with the objectives and activities of the school-
to-work programs of such State, including—
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(A) work experience or apprenticeship pro-
grams;
(B) transitional worksite job training for
vocational education students that is related to
the occupational goals of such students and close-
ly linked to classroom and laboratory instruc-
tion;
(C) placement services in occupations that
the students are preparing to enter;
(D) employment-based learning programs;
and
(E) programs that address State and local
labor shortages;
(2) annually report to the Secretary and the At-
torney General on the results of the evaluations con-
ducted using the methods and performance measures
contained in the proposal; and
(3) provide to each State for each student eligible
under subsection (f) not more than $1,500 annually
for tuition, books, and essential materials, and not
more than $300 annually for related services such as
career development, substance abuse counseling, par-
enting skills training, and health education, for each
eligible incarcerated youth.
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(f) STUDENT ELIGIBILITY.—A youth offender shall be
eligible for participation in a program receiving a grant
under this section if the youth offender—
(1) is eligible to be released within 5 years (in-
cluding a youth offender who is eligible for parole
within such time); and
(2) is 25 years of age or younger.
(g) LENGTH OF PARTICIPATION.—A State correctional
education agency receiving a grant under this section shall
provide educational and related services to each participat-
ing youth offender for a period not to exceed 5 years, 1
year of which may be devoted to study in a graduate edu-
cation degree program or to remedial education services for
students who have obtained a secondary school diploma.
Educational and related services shall start during the pe-
riod of incarceration in prison or prerelease and may con-
tinue during the period of parole.
(h) EDUCATION DELIVERY SYSTEMS.—State correc-
tional education agencies and cooperating institutions
shall, to the extent practicable, use high-tech applications
in developing programs to meet the requirements and goals
of this section.
(i) ALLOCATION OF FUNDS.—From the amounts ap-
propriated pursuant to subsection (j), the Secretary shall
allot to each State an amount that bears the same relation-
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ship to such funds as the total number of students eligible
under subsection (f) in such State bears to the total number
of such students in all States.
(j) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to carry out this section
$14,000,000 for fiscal year 1999 and such sums as may be
necessary for each of the 4 succeeding fiscal years.
PART F—WEB-BASED EDUCATION COMMISSION
SEC. 753. SHORT TITLE; DEFINITIONS.
(a) IN GENERAL.—This part may be cited as the
‘‘Web-Based Education Commission Act’’.
(b) DEFINITIONS.—In this part:
(1) 
COMMISSION.—The 
term 
‘‘Commission’’
means the Web-Based Education Commission estab-
lished under section 754.
(2) INFORMATION TECHNOLOGY.—The term ‘‘in-
formation technology’’ has the meaning given that
term in section 5002 of the Information Technology
Management Reform Act of 1996 (110 Stat. 679).
(3) STATE.—The term ‘‘State’’ means each of the
several States of the United States and the District of
Columbia.
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SEC. 754. ESTABLISHMENT OF WEB-BASED EDUCATION
COMMISSION.
(a) ESTABLISHMENT.—There is established a commis-
sion to be known as the Web-Based Education Commission.
(b) MEMBERSHIP.—
(1) COMPOSITION.—The Commission shall be
composed of 14 members, of which—
(A) 3 members shall be appointed by the
President, from among individuals representing
the Internet technology industry;
(B) 3 members shall be appointed by the
Secretary, from among individuals with exper-
tise in accreditation, establishing statewide cur-
ricula, and establishing information technology
networks pertaining to education curricula;
(C) 2 members shall be appointed by the
Majority Leader of the Senate;
(D) 2 members shall be appointed by the
Minority Leader of the Senate;
(E) 2 members shall be appointed by the
Speaker of the House of Representatives; and
(F) 2 members shall be appointed by the
Minority Leader of the House of Representatives.
(2) DATE.—The appointments of the members of
the Commission shall be made not later than 45 days
after the date of enactment of this Act.
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(c) PERIOD OF APPOINTMENT; VACANCIES.—Members
shall be appointed for the life of the Commission. Any va-
cancy in the Commission shall not affect its powers, but
shall be filled in the same manner as the original appoint-
ment.
(d) INITIAL MEETING.—No later than 30 days after
the date on which all members of the Commission have been
appointed, the Commission shall hold its first meeting.
(e) MEETINGS.—The Commission shall meet at the call
of the Chairperson.
(f) QUORUM.—A majority of the members of the Com-
mission shall constitute a quorum, but a lesser number of
members may hold hearings.
(g) CHAIRPERSON
AND VICE CHAIRPERSON.—The
Commission shall select a chairperson and vice chairperson
from among its members.
SEC. 755. DUTIES OF THE COMMISSION.
(a) STUDY.—
(1) IN GENERAL.—The Commission shall conduct
a thorough study to assess the educational software
available in retail markets for secondary and post-
secondary students who choose to use such software.
(2) PUBLIC HEARINGS.—As part of the study
conducted under this subsection, the Commission shall
hold public hearings in each region of the United
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States concerning the assessment referred to in para-
graph (1).
(3) EXISTING
INFORMATION.—To the extent
practicable, in carrying out the study under this sub-
section, the Commission shall identify and use exist-
ing information related to the assessment referred to
in paragraph (1).
(b) REPORT.—Not later than 6 months after the first
meeting of the Commission, the Commission shall submit
a report to the President and Congress that shall contain
a detailed statement of the findings and conclusions of the
Commission resulting from the study, together with its rec-
ommendations—
(1) for such legislation and administrative ac-
tions as the Commission considers to be appropriate;
and
(2) regarding the appropriate Federal role in de-
termining quality educational software products.
(c) FACILITATION OF EXCHANGE OF INFORMATION.—
In carrying out the study under subsection (a), the Commis-
sion shall, to the extent practicable, facilitate the exchange
of information concerning the issues that are the subject of
the study among—
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(1) officials of the Federal Government, and
State governments and political subdivisions of
States; and
(2) educators from Federal, State, and local in-
stitutions of higher education and secondary schools.
SEC. 756. POWERS OF THE COMMISSION.
(a) HEARINGS.—The Commission may hold such hear-
ings, sit and act at such times and places, take such testi-
mony, and receive such evidence as the Commission consid-
ers advisable to carry out the purposes of this part.
(b) INFORMATION FROM FEDERAL AGENCIES.—The
Commission may secure directly from any Federal depart-
ment or agency such information as the Commission con-
siders necessary to carry out the provisions of this part.
Upon request of the Chairperson of the Commission, the
head of such department or agency shall furnish such infor-
mation to the Commission.
(c) POSTAL SERVICES.—The Commission may use the
United States mails in the same manner and under the
same conditions as other departments and agencies of the
Federal Government.
(d) GIFTS.—The Commission may accept, use, and
dispose of gifts or donations of services or property.
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SEC. 757. COMMISSION PERSONNEL MATTERS.
(a) COMPENSATION OF MEMBERS.—Except as pro-
vided in subsection (b), each member of the Commission who
is not an officer or employee of the Federal Government
shall serve without compensation. All members of the Com-
mission who are officers or employees of the United States
shall serve without compensation in addition to that re-
ceived for their services as officers or employees of the
United States.
(b) TRAVEL EXPENSES.—The members of the Commis-
sion shall be allowed travel expenses, including per diem
in lieu of subsistence, at rates authorized for employees of
agencies under subchapter I of chapter 57 of title 5, United
States Code, while away from their homes or regular places
of business in the performance of services for the Commis-
sion.
(c) STAFF.—
(1) IN GENERAL.—The Chairperson of the Com-
mission may, without regard to the civil service laws
and regulations, appoint and terminate an executive
director and such other additional personnel as may
be necessary to enable the Commission to perform its
duties. The employment of an executive director shall
be subject to confirmation by the Commission.
(2) COMPENSATION.—The Chairperson of the
Commission may fix the compensation of the execu-
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tive director and other personnel without regard to
the provisions of chapter 51 and subchapter III of
chapter 53 of title 5, United States Code, relating to
classification of positions and General Schedule pay
rates, except that the rate of pay for the executive di-
rector and other personnel may not exceed the rate
payable for level V of the Executive Schedule under
section 5316 of such title.
(d) DETAIL OF GOVERNMENT EMPLOYEES.—Any Fed-
eral Government employee may be detailed to the Commis-
sion without reimbursement, and such detail shall be with-
out interruption or loss of civil service status or privilege.
(e) PROCUREMENT OF TEMPORARY AND INTERMIT-
TENT SERVICES.—The Chairperson of the Commission may
procure temporary and intermittent services under section
3109(b) of title 5, United States Code, at rates for individ-
uals that do not exceed the daily equivalent of the annual
rate of basic pay prescribed for level V of the Executive
Schedule under section 5316 of such title.
SEC. 758. TERMINATION OF THE COMMISSION.
The Commission shall terminate on the date that is
90 days after the date on which the Commission submits
its report under section 755(b).
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SEC. 759. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There are authorized to be appro-
priated $650,000 for fiscal year 1999 to the Commission
to carry out this part.
(b) AVAILABILITY.—Any sums appropriated under the
authorization contained in this section shall remain avail-
able, without fiscal year limitation, until expended.
PART G—EDUCATION OF THE DEAF
SEC. 761. SHORT TITLE.
This part may be cited as the ‘‘Education of the Deaf
Amendments of 1998’’.
SEC. 762. ELEMENTARY AND SECONDARY EDUCATION PRO-
GRAMS.
Section 104(b) of the Education of the Deaf Act of 1986
(20 U.S.C. 4034(b)) is amended—
(1) in paragraph (1)—
(A) in subparagraph (A), by inserting
‘‘and’’ after the semicolon;
(B) in subparagraph (B), by striking ‘‘;
and’’ and inserting a period; and
(C) by striking subparagraph (C);
(2) in the matter preceding subparagraph (A) of
paragraph (2)—
(A) by striking ‘‘paragraph (1)’’ and insert-
ing ‘‘paragraph (1)(B)’’; and
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(B) by striking ‘‘section 618(b)’’ and insert-
ing ‘‘section 618(a)(1)(A)’’;
(3) in paragraph (3), by striking ‘‘intermediate
educational unit’’ and inserting ‘‘educational service
agency’’;
(4) in paragraph (4)—
(A) in subparagraph (A), by striking ‘‘in-
termediate educational unit’’ and inserting ‘‘edu-
cational service agency’’; and
(B) in subparagraph (B), by striking ‘‘in-
termediate educational units’’ and inserting
‘‘educational service agencies’’; and
(5) by amending subparagraph (C) to read as
follows:
‘‘(C) provide the child a free appropriate
public education in accordance with part B of
the Individuals with Disabilities Education Act
and procedural safeguards in accordance with
the following provisions of section 615 of such
Act:
‘‘(i) paragraphs (1), and (3) through
(6), of subsection (b).
‘‘(ii) Subsections (c) through (g).
‘‘(iii) Subsection (h), except for the
matter in paragraph (4) pertaining to
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transmission of findings and decisions to a
State advisory panel.
‘‘(iv) Paragraphs (1) and (2) of sub-
section (i).
‘‘(v) Subsection (j)—
‘‘(I) except that such subsection
shall not be applicable to a decision by
the University to refuse to admit a
child; or
‘‘(II) to dismiss a child, except
that, before dismissing any child, the
University shall give at least 60 days
written notice to the child’s parents
and to the local educational agency in
which the child resides, unless the dis-
missal involves a suspension, expul-
sion, or other change in placement cov-
ered under section 615(k).
‘‘(vi) Subsections (k) through (m).’’.
SEC. 763. AGREEMENT WITH GALLAUDET UNIVERSITY.
Section 105(a) of the Education of the Deaf Act of
1986 (20 U.S.C. 4305(a)) is amended—
(1) by striking ‘‘within 1 year after enactment
of the Education of the Deaf Act Amendments of
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1992, a new’’ and inserting ‘‘and periodically update,
an’’; and
(2) by amending the second sentence to read as
follows: ‘‘The Secretary or the University shall deter-
mine the necessity for the periodic update described
in the preceding sentence.’’.
SEC. 764. AGREEMENT FOR THE NATIONAL TECHNICAL IN-
STITUTE FOR THE DEAF.
Paragraph (2) of section 112(a) of the Education of
the Deaf Act of 1986 (20 U.S.C. 4332(a)) is amended to
read as follows:
‘‘(2) The Secretary and the institution of higher edu-
cation with which the Secretary has an agreement under
this section—
‘‘(A) shall periodically assess the need for modi-
fication of the agreement; and
‘‘(B) shall periodically update the agreement as
determined necessary by the Secretary or the institu-
tion.’’.
SEC. 765. DEFINITIONS.
Section 201 of the Education of the Deaf Act of 1986
(20 U.S.C. 4351) is amended—
(1) in paragraph (1)(C), by striking ‘‘Palau (but
only until the Compact of Free Association with
Palau takes effect),’’; and
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(2) in paragraph (5)—
(A) by inserting ‘‘and’’ after ‘‘Virgin Is-
lands,’’; and
(B) by striking ‘‘, and Palau (but only
until the Compact of Free Association with
Palau takes effect)’’.
SEC. 766. GIFTS.
Subsection (b) of section 203 of the Education of the
Deaf Act of 1986 (20 U.S.C. 4353) is amended to read as
follows:
‘‘(b) INDEPENDENT
FINANCIAL
AND
COMPLIANCE
AUDIT.—
‘‘(1) IN GENERAL.—Gallaudet University shall
have an annual independent financial and compli-
ance audit made of the programs and activities of the
University, including the national mission and school
operations of the elementary and secondary education
programs at Gallaudet. The institution of higher edu-
cation with which the Secretary has an agreement
under section 112 shall have an annual independent
financial and compliance audit made of the programs
and activities of such institution of higher education,
including NTID, and containing specific schedules
and analyses for all NTID funds, as determined by
the Secretary.
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‘‘(2) COMPLIANCE.—As used in paragraph (1),
compliance means compliance with sections 102(b),
105(b)(4), 112(b)(5), and 203(c), paragraphs (2) and
(3) of section 207(b), subsections (b)(2), (b)(3), and
(c) through (f), of section 207, and subsections (b) and
(c) of section 210.
‘‘(3) SUBMISSION OF AUDITS.—A copy of each
audit described in paragraph (1) shall be provided to
the Secretary within 15 days of acceptance of the
audit by the University or the institution authorized
to establish and operate the NTID under section
112(a), as the case may be, but not later than Janu-
ary 10 of each year.’’.
SEC. 767. REPORTS.
Section 204(3) of the Education of the Deaf Act of
1986 (20 U.S.C. 4354(3)) is amended—
(1) in subparagraph (A), by striking ‘‘The an-
nual’’ and inserting ‘‘A summary of the annual’’; and
(2) in subparagraph (B), by striking ‘‘the an-
nual’’ and inserting ‘‘a summary of the annual’’.
SEC. 768. MONITORING, EVALUATION, AND REPORTING.
Section 205(c) of the Education of the Deaf Act of 1986
(20 U.S.C. 4355(c)) is amended by striking ‘‘1993, 1994,
1995, 1996, and 1997’’ and inserting ‘‘1998 through 2003’’.
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SEC. 769. INVESTMENTS.
Section 207 of the Education of the Deaf Act of 1986
(20 U.S.C. 4357) is amended—
(1) in subsection (c)(1), by inserting ‘‘the Fed-
eral contribution of’’ after ‘‘shall invest’’;
(2) in subsection (d)(3)(A), by striking ‘‘prior’’
and inserting ‘‘current’’; and
(3) in subsection (h)—
(A) in paragraph (1), by striking ‘‘1993
through 1997’’ and inserting ‘‘1998 through
2003’’; and
(B) in paragraph (2), by striking ‘‘1993
through 1997’’ and inserting ‘‘1998 through
2003’’.
SEC. 770. INTERNATIONAL STUDENTS.
Section 210(a) of the Education of the Deaf Act of
1986 (20 U.S.C. 4359a(a)) is amended by inserting before
the period ‘‘, except that in any school year no United
States citizen who is qualified to be admitted to the Univer-
sity or NTID and applies for admission to the University
or NTID shall be denied admission because of the admission
of an international student’’.
SEC. 771. RESEARCH PRIORITIES.
Section 211 of the Education of the Deaf Act of 1986
(20 U.S.C. 4360) is amended to read as follows:
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‘‘SEC. 211. RESEARCH PRIORITIES.
‘‘(a) RESEARCH PRIORITIES.—Gallaudet University
and the National Technical Institute for the Deaf shall each
establish and disseminate priorities for their national mis-
sion with respect to deafness related research, development,
and demonstration activities, that reflect public input,
through a process that includes consumers, constituent
groups, and the heads of other federally funded programs.
The priorities for the University shall include activities
conducted as part of the University’s elementary and sec-
ondary education programs under section 104.
‘‘(b) RESEARCH
REPORTS.—The University and
NTID shall each prepare and submit an annual research
report, to the Secretary, the Committee on Education and
the Workforce of the House of Representatives, and the Com-
mittee on Labor and Human Resources of the Senate, not
later than January 10 of each year, that shall include—
‘‘(1) a summary of the public input received as
part of the establishment and dissemination of prior-
ities required by subsection (a), and the University’s
and NTID’s response to the input; and
‘‘(2) a summary description of the research un-
dertaken by the University and NTID, the start and
projected end dates for each research project, the pro-
jected cost and source or sources of funding for each
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project, and any products resulting from research
completed in the prior fiscal year.’’.
SEC. 772. AUTHORIZATION OF APPROPRIATIONS.
Title II of the Education of the Deaf Act of 1986 (20
U.S.C. 4351 et seq.) is amended by adding at the end the
following:
‘‘SEC. 212. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) GALLAUDET UNIVERSITY.—There are authorized
to be appropriated such sums as may be necessary for each
of the fiscal years 1998 through 2003 to carry out the provi-
sions of titles I and II, relating to—
‘‘(1) Gallaudet University;
‘‘(2) Kendall Demonstration Elementary School;
and
‘‘(3) the Model Secondary School for the Deaf.
‘‘(b) NATIONAL
TECHNICAL
INSTITUTE
FOR
THE
DEAF.—There are authorized to be appropriated such sums
as may be necessary for each of the fiscal years 1998
through 2003 to carry out the provisions of titles I and II
relating to the National Technical Institute for the Deaf.’’.
SEC. 773. COMMISSION ON EDUCATION OF THE DEAF.
The Education of the Deaf Act of 1986 (20 U.S.C. 4301
et seq.) is amended by adding at the end the following:
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‘‘TITLE III—COMMISSION ON
EDUCATION OF THE DEAF
‘‘SEC. 301. COMMISSION ESTABLISHED.
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—The Secretary shall establish
a Commission on the Education of the Deaf to iden-
tify those education-related factors in the lives of in-
dividuals who are deaf that result in barriers to suc-
cessful postsecondary education experiences and em-
ployment, and those education-related factors in the
lives of individuals who are deaf that contribute to
successful postsecondary education experiences and
employment.
‘‘(2) DEFINITION
OF
INDIVIDUALS
WHO
ARE
DEAF.—In this title, the term ‘individuals who are
deaf’ means all persons with hearing impairments,
including those who are hard-of-hearing, those deaf-
ened later in life, and those who are profoundly deaf.
‘‘(b) COMPOSITION.—
‘‘(1) IN
GENERAL.—The Commission shall be
composed of 13 members appointed by the Secretary
from recommendations made by the National Associa-
tion of the Deaf, the American Society for Deaf Chil-
dren, the Alexander Graham Bell Association, the
President of Gallaudet, the Vice President of the Na-
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tional Technical Institute for the Deaf, State Schools
for the Deaf, projects to train teachers of the deaf
funded under section 673(b) of the Individuals with
Disabilities Education Act, parent training and in-
formation centers funded under section 682 of such
Act, the Regional Centers on Postsecondary Edu-
cation for Individuals who are Deaf funded under sec-
tion 672 of such Act, Self-Help for Hard of Hearing
People, and the Cothe Council on Education of the
Deaf.
‘‘(2) QUALIFICATIONS.—
‘‘(A) IN GENERAL.—Members of the Com-
mission shall be appointed from among individ-
uals who have broad experience and expertise in
deafness, program evaluation, education, reha-
bilitation, and job training generally, which ex-
pertise and experience shall be directly relevant
to the issues to be addressed by the Commission.
‘‘(B) DEAF
INDIVIDUALS.—At least 1⁄3 of
members of the Commission shall be individuals
who are deaf.
‘‘(C) CHAIRPERSON.—The chairperson of
the Commission shall be elected by a simple ma-
jority of the Commission.
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‘‘(D) ASSISTANT SECRETARY.—One member
of the Commission shall be the Assistant Sec-
retary for Special Education and Rehabilitative
Services.
‘‘(3) DATE.—Members of the Commission shall
be appointed not later than 90 days after the date of
enactment of the Education of the Deaf Amendments
of 1998.
‘‘SEC. 302. DUTIES, REPORT, AND DURATION OF THE COM-
MISSION.
‘‘(a) IDENTIFICATION OF FACTORS.—The Commission
shall identify, with respect to individuals who are deaf, fac-
tors that pose barriers to or factors that facilitate—
‘‘(1) educational performance and progress of
students who are deaf in high school;
‘‘(2) educational performance and progress of
students who are deaf in postsecondary education;
‘‘(3) career exploration and selection;
‘‘(4) job performance and satisfaction in initial
postsecondary employment; and
‘‘(5) career advancement and satisfaction.
‘‘(b) REPORT.—The Commission shall report to the
President and Congress such interim reports that the Com-
mission deems appropriate, and not later than 18 months
after the date of enactment of the Education of the Deaf
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Amendments of 1998, a final report containing the findings
of the Commission with respect to the factors identified
under subsection (a). The final report shall include rec-
ommendations, including legislative proposals, that the
Commission deems advisable.
‘‘(c) TERMINATION.—The Commission shall terminate
90 days after the date on which the Commission submits
the Commission’s final report described in subsection (b).
‘‘SEC. 303. ADMINISTRATIVE PROVISIONS.
‘‘(a) PERSONNEL.—
‘‘(1) IN GENERAL.—The Commission may ap-
point such personnel, including a staff director, as the
Commission deems necessary without regard to the
provisions of title 5, United States Code, except that
the rate pay for any employee of the Commission may
not exceed the rate payable for level V of the Executive
Schedule under section 5316 of title 5, United States
Code.
‘‘(2) PROCUREMENT OF TEMPORARY AND INTER-
MITTENT SERVICES.—The Chairperson of the Com-
mission may procure temporary and intermittent
services under section 3109(b) of title 5, United States
Code, at rates for individuals which do not exceed the
daily equivalent of the annual rate of basic pay pre-
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scribed for level V of the Executive Schedule under
section 5316 of such title.
‘‘(b) HEARINGS; QUORUM.—
‘‘(1) HEARINGS.—The Commission or, with the
authorization of the Commission, any committee of
the Commission, may, for the purpose of carrying out
the provisions of this title, hold such hearings, sit,
and act at such times and such places in the United
States as the Commission or such committee may
deem advisable.
‘‘(2) QUORUM.—Seven members of the Commis-
sion shall constitute a quorum, but 2 or more mem-
bers may conduct hearings.
‘‘(3) HEARINGS
AND
PUBLIC
INPUT.—In con-
ducting hearings and acquiring public input under
this title, the Commission may use various tele-
communications media, including teleconferencing,
video-conferencing, the Internet, and other media.
‘‘(c) CONSULTATION; INFORMATION AND STATISTICS;
AGENCY COOPERATION.—
‘‘(1) IN GENERAL.—In carrying out the Commis-
sion’s duties under this title and to the extent not
prohibited by Federal law, the Commission is author-
ized to secure consultation, information, statistics,
and cooperation from Federal agencies, entities fund-
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ed by the Federal Government, and other entities the
Commission deems advisable.
‘‘(2) SPECIAL
RULE.—The Commission is au-
thorized to use, with their consent, the services, per-
sonnel, information, and facilities of other Federal,
State, local, and private agencies with or without re-
imbursement.
‘‘SEC. 304. COMPENSATION OF MEMBERS.
‘‘(a) UNITED STATES OFFICER AND EMPLOYEE MEM-
BERS.—Members of the Commission who are officers or full-
time employees of the United States shall serve without com-
pensation in addition to that received for their services as
officers or employees of the United States; but may be al-
lowed travel expenses, including per diem in lieu of subsist-
ence, at rates authorized for employees of agencies under
subchapter I of chapter 57 of title 5, United States Code,
while away from their homes or regular places of business
in the performance of services for the Commission.
‘‘(b) PUBLIC MEMBERS.—Members of the Commission
who are not officers or full-time employees of the United
States shall receive compensation at a rate that does not
exceed the daily rate payable for level V of the Executive
Schedule under section 5316 of title 5, United States Code,
for each day (including travel time) during which such
members are engaged in the actual performance of the du-
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ties of the Commission. In addition, such members may be
allowed travel expenses, including per diem in lieu of sub-
sistence, at rates authorized for employees of agencies under
subchapter I of chapter 57 of title 5, United States Code,
while away from their homes or regular places of business
in the performance of services for the Commission.
‘‘SEC. 305. AUTHORIZATIONS OF APPROPRIATIONS.
‘‘There is authorized to be appropriated to carry out
this title such sums as may be necessary for each of the
fiscal years 1999 and 2000.’’.
PART H—REPEALS
SEC. 781. REPEALS.
(a) HIGHER EDUCATION ACT OF 1965.—The following
provisions of the Act (20 U.S.C. 1001 et seq.) are repealed:
(1) The heading for, sections 701 and 702 of,
and parts A, C, D, and E of, title VII (20 U.S.C.
1132a, 1132a–1, 1132b et seq., 1132d et seq., 1132f et
seq., and 1132i et seq.).
(2) Title VIII (20 U.S.C. 1133 et seq.).
(3) The heading for, section 901 of, and parts A,
B, E, F, and G of, title IX (20 U.S.C. 1134, 1134a
et seq., 1134d et seq., 1134r et seq., 20 U.S.C. 1134s
et seq., and 1134u et seq.).
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(4) The heading for, subpart 2 of part B of, and
parts C, D and E of, title X (20 U.S.C. 1135c et seq.,
1135e et seq., 1135f, and 1135g et seq.).
(5) The heading for, and part B of, title XI (20
U.S.C. 1137 et seq.).
(b) HIGHER EDUCATION AMENDMENTS OF 1992.—The
following provisions of the Higher Education Amendments
of 1992 (Public Law 102–325; 106 Stat 448) are repealed:
(1) Parts E, F, and G of title XIII of the Higher
Education Amendments of 1992 (25 U.S.C. 3332 et
seq., 3351 et seq., 3371) are repealed.
(2) Title XIV.
(3) Title XV.
PART I—MISCELLANEOUS
SEC. 791. YEAR 2000 REQUIREMENTS AT THE DEPARTMENT
OF EDUCATION.
In order to ensure that the processing, delivery, and
administration of grant, loan, and work assistance pro-
vided under title IV of the Higher Education Act of 1965
is not interrupted due to operational problems related to
the inability of computer systems to indicate accurately
dates after December 31, 1999, the Secretary shall—
(1) take such actions as are necessary to ensure
that all internal and external systems, hardware and
data exchange infrastructure administered by the De-
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partment of Education that are necessary for the
processing, delivery, and administration of the grant,
loan, and work assistance are year 2000 compliant,
such that there will be no business interruption after
December 31, 1999;
(2) ensure that the Robert T. Stafford Federal
Student Loan Program and the William D. Ford
Federal Direct Loan Program are equal in level of
priority with respect to addressing, and that resources
are managed to provide for successful resolution of,
the year 2000 computer problem in both programs by
December 31, 1999;
(3) work with institutions of higher education,
guaranty agencies, third party servicers, and other
persons to ensure successful data exchanges necessary
for the processing, delivery, and administration of the
grant, loan, and work assistance;
(4) ensure that the Inspector General of the De-
partment of Education (or an external, independent
entity selected by the Inspector General) performs and
publishes a risk assessment of the systems and hard-
ware under the Department’s management, that has
been reviewed by an independent entity, and make
such assessment publicly available not later than 60
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days after the date of enactment of the Higher Edu-
cation Amendments of 1998;
(5) not later than June 30, 1999, ensure that the
Inspector General (or an external, independent entity
selected by the Inspector General) conducts a review
of the Department’s Year 2000 compliance for the
processing, delivery, and administration systems and
data exchange systems for the grant, loan, and work
assistance, and submits a report reflecting the results
of that review to the Chairperson of the Committee on
Labor and Human Resources of the Senate and the
Chairperson of the Committee on Education and the
Workforce of the House of Representatives;
(6) develop a contingency plan to ensure the pro-
grams under title IV of the Higher Education Act of
1965 will continue to run uninterrupted in the event
of a computer failure after December 31, 1999, which
the contingency plan shall include a prioritization of
mission critical systems and strategies to allow data
partners to transfer data; and
(7) alert Congress at the earliest possible time if
mission critical deadlines will not be met.
SEC. 792. GRANTS TO COMBAT VIOLENT CRIMES AGAINST
WOMEN ON CAMPUSES.
(a) GRANTS AUTHORIZED.—
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(1) IN GENERAL.—The Attorney General is au-
thorized to make grants to institutions of higher edu-
cation, for use by consortia consisting of campus per-
sonnel, student organizations, campus administrators,
security personnel, and regional crisis centers affili-
ated with the institution, to develop and strengthen
effective security and investigation strategies to com-
bat violent crimes against women on campuses, and
to develop and strengthen victim services in cases in-
volving violent crimes against women on campuses,
which may include partnerships with local criminal
justice authorities and community-based victim serv-
ices agencies.
(2) AWARD BASIS.—The Attorney General shall
award grants and contracts under this section on a
competitive basis.
(3) EQUITABLE
PARTICIPATION.—The Attorney
General shall make every effort to ensure—
(A) the equitable participation of private
and public institutions of higher education in
the activities assisted under this section; and
(B) the equitable geographic distribution of
grants under this section among the various re-
gions of the United States.
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(b) USE OF GRANT FUNDS.—Grants funds awarded
under this section may be used for the following purposes:
(1) To provide personnel, training, technical as-
sistance, data collection, and other equipment with re-
spect to the increased apprehension, investigation,
and adjudication of persons committing violent
crimes against women on campus.
(2) To train campus administrators and campus
security personnel to more effectively identify and re-
spond to violent crimes against women on campus,
including the crimes of sexual assault, stalking, and
domestic violence.
(3) To develop, train, or expand campus security
personnel and campus administrators with respect to
specifically targeting violent crimes against women
on campus, including the crimes of sexual assault,
stalking, and domestic violence.
(4) To develop and implement more effective
campus policies, protocols, orders, and services spe-
cifically devoted to prevent, identify, and respond to
violent crimes against women on campus, including
the crimes of sexual assault, stalking, and domestic
violence.
(5) To develop, install, or expand data collection
and communication systems, including computerized
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systems, linking campus security to the local law en-
forcement for the purpose of identifying and tracking
arrests, protection orders, violations of protection or-
ders, prosecutions, and convictions with respect to
violent crimes against women on campus, including
the crimes of sexual assault, stalking, and domestic
violence.
(6) To develop, enlarge, or strengthen victim
services programs for the campus and to improve de-
livery of victim services on campus.
(7) To provide capital improvements on campus
to address violent crimes against women on campus,
including the crimes of sexual assault, stalking, and
domestic violence.
(8) To support improved coordination among
campus administrators, campus security personnel,
and local law enforcement to reduce violent crimes
against women on campus.
(c) APPLICATIONS.—
(1) IN GENERAL.—In order to be eligible to be
awarded a grant under this section for any fiscal
year, an institution of higher education shall submit
an application to the Attorney General at such time
and in such manner as the Attorney General shall
prescribe.
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(2) CONTENTS.—Each application submitted
under paragraph (1) shall—
(A) describe the need for grant funds and
the plan for implementation for any of the pur-
poses described in subsection (b);
(B) describe how the campus authorities
shall consult and coordinate with nonprofit, non-
governmental victim services programs, includ-
ing sexual assault and domestic violence victim
services programs;
(C) describe the characteristics of the popu-
lation being served, including type of campus,
demographics of the population, and number of
students;
(D) provide measurable goals and expected
results from the use of the grants funds;
(E) provide assurances that the Federal
funds made available under this section shall be
used to supplement and, to the extent practical,
increase the level of funds that would, in the ab-
sence of Federal funds, be made available by the
institution for the purposes described in sub-
section (b); and
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(F) include such other information and as-
surances as the Attorney General reasonably de-
termines to be necessary.
(d) GRANTEE REPORTING.—Each institution of higher
education receiving a grant under this section, upon com-
pletion of the grant period under this section, shall file a
performance report with the Attorney General explaining
the activities carried out under the grant, together with an
assessment of the effectiveness of the activities in achieving
the purposes described in subsection (b).
(e) DEFINITIONS.—In this section—
(1) the term ‘‘domestic violence’’ includes acts or
threats of violence, not including acts of self defense,
committed by a current or former spouse of the vic-
tim, by a person with whom the victim shares a child
in common, by a person who is cohabitating with or
has cohabitated with the victim, by a person similarly
situated to a spouse of the victim under the domestic
or family violence laws of the jurisdiction, or by any
other person against a victim who is protected from
that person’s acts under the domestic or family vio-
lence laws of the jurisdiction;
(2) the term ‘‘sexual assault’’ means any conduct
proscribed by chapter 109A of title 18, United States
Code, whether or not the conduct occurs in the special
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maritime and territorial jurisdiction of the United
States or in a Federal prison, including both assaults
committed by offenders who are strangers to the vic-
tim and assaults committed by offenders who are
known or related by blood or marriage to the victim;
and
(3) the term ‘‘victim services’’ means a non-
profit, nongovernmental organization that assists do-
mestic violence or sexual assault victims, including
campus women’s centers, rape crisis centers, battered
women’s shelters, and other sexual assault or domestic
violence programs, including campus counseling sup-
port and victim advocate organizations with domestic
violence, stalking, and sexual assault programs,
whether or not organized and staffed by students.
(f) GENERAL TERMS AND CONDITIONS.—
(1) NONMONETARY ASSISTANCE.—In addition to
the assistance provided under this section, the Attor-
ney General may request any Federal agency to use
the agency’s authorities and the resources granted to
the agency under Federal law (including personnel,
equipment, supplies, facilities, and managerial, tech-
nical, and advisory services) in support of campus se-
curity, and investigation and victim service efforts.
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(2) REPORTING.—Not later than 180 days after
the end of the fiscal year for which grants are award-
ed under this section, the Attorney General shall sub-
mit to the committees of the House of Representatives
and the Senate responsible for issues relating to high-
er education and crime, a report that includes—
(A) the number of grants, and the amount
of funds, distributed under this section;
(B) a summary of the purposes for which
the grants were provided and an evaluation of
the progress made under the grant;
(C) a statistical summary of the persons
served, detailing the nature of victimization, and
providing data on age, sex, race, ethnicity, lan-
guage, disability, relationship to offender, geo-
graphic distribution, and type of campus; and
(D) an evaluation of the effectiveness of pro-
grams funded under this section.
(3) REGULATIONS
OR
GUIDELINES.—Not later
than 120 days after the date of enactment of this sec-
tion, the Secretary shall publish proposed regulations
or guidelines implementing this section. Not later
than 180 days after the date of enactment of this sec-
tion, the Attorney General shall publish final regula-
tions or guidelines implementing this section.
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(g) AUTHORIZATION OF APPROPRIATIONS.—For the
purpose of carrying out this section, there are authorized
to be appropriated $10,000,000 for each of the fiscal years
1999 through 2002.
SEC. 793. AUTHORITY TO ADMINISTER SUMMER TRAVEL
AND WORK PROGRAMS.
The Director of the United States Information Agency
is authorized to administer summer travel and work pro-
grams without regard to preplacement requirements.
SEC. 794. IMPROVING UNITED STATES UNDERSTANDING OF
SCIENCE, ENGINEERING, AND TECHNOLOGY
IN EAST ASIA.
(a) ESTABLISHMENT.—The Director of the National
Science Foundation is authorized, beginning in fiscal year
2000, to carry out an interdisciplinary program of edu-
cation and research on East Asian science, engineering, and
technology. The Director shall carry out the interdiscipli-
nary program in consultation with the Secretary of Edu-
cation.
(b) PURPOSES.—The purposes of the program estab-
lished under this section shall be to—
(1) increase understanding of East Asian re-
search, and innovation for the creative application of
science and technology to the problems of society;
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(2) provide scientists, engineers, technology man-
agers, and students with training in East Asian lan-
guages, and with an understanding of research, tech-
nology, and management of innovation, in East
Asian countries;
(3) provide program participants with opportu-
nities to be directly involved in scientific and engi-
neering research, and activities related to the manage-
ment of scientific and technological innovation, in
East Asia; and
(4) create mechanisms for cooperation and part-
nerships among United States industry, universities,
colleges, not-for-profit institutions, Federal labora-
tories (within the meaning of section 4(6) of the Ste-
venson-Wydler Technology Innovation Act of 1980 (15
U.S.C. 3703(6))), and government, to disseminate the
results of the program assisted under this section for
the benefit of United States research and innovation.
(c) PARTICIPATION BY FEDERAL SCIENTISTS, ENGI-
NEERS, AND MANAGERS.—Scientists, engineers, and man-
agers of science and engineering programs in Federal agen-
cies and the Federal laboratories shall be eligible to partici-
pate in the program assisted under this section on a reim-
bursable basis.
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(d) REQUIREMENT
FOR MERIT REVIEW.—Awards
made under the program established under this section shall
only be made using a competitive, merit-based review proc-
ess.
(e) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$10,000,000 for fiscal year 2000.
SEC. 795. UNDERGROUND RAILROAD EDUCATIONAL AND
CULTURAL PROGRAM.
(a) PROGRAM ESTABLISHED.—The Secretary of Edu-
cation, in consultation and cooperation with the Secretary
of the Interior, is authorized to make grants to 1 or more
nonprofit educational organizations that are established to
research, display, interpret, and collect artifacts relating to
the history of the Underground Railroad.
(b) GRANT AGREEMENT.—Each nonprofit educational
organization awarded a grant under this section shall enter
into an agreement with the Secretary of Education. Each
such agreement shall require the organization—
(1) to establish a facility to house, display, and
interpret the artifacts related to the history of the Un-
derground Railroad, and to make the interpretive ef-
forts available to institutions of higher education that
award a baccalaureate or graduate degree;
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(2) to demonstrate substantial private support
for the facility through the implementation of a pub-
lic-private partnership between a State or local public
entity and a private entity for the support of the fa-
cility, which private entity shall provide matching
funds for the support of the facility in an amount
equal to 4 times the amount of the contribution of the
State or local public entity, except that not more than
20 percent of the matching funds may be provided by
the Federal Government;
(3) to create an endowment to fund any and all
shortfalls in the costs of the on-going operations of the
facility;
(4) to establish a network of satellite centers
throughout the United States to help disseminate in-
formation regarding the Underground Railroad
throughout the United States, if such satellite centers
raise 80 percent of the funds required to establish the
satellite centers from non-Federal public and private
sources;
(5) to establish the capability to electronically
link the facility with other local and regional facili-
ties that have collections and programs which inter-
pret the history of the Underground Railroad; and
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(6) to submit, for each fiscal year for which the
organization receives funding under this section, a re-
port to the Secretary of Education that contains—
(A) a description of the programs and ac-
tivities supported by the funding;
(B) the audited financial statement of the
organization for the preceding fiscal year;
(C) a plan for the programs and activities
to be supported by the funding as the Secretary
may require; and
(D) an evaluation of the programs and ac-
tivities supported by the funding as the Sec-
retary may require.
(c) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to carry out this section
$6,000,000 for fiscal year 1999, $6,000,000 for fiscal year
2000, $6,000,000 for fiscal year 2001, $3,000,000 for fiscal
year 2002, and $3,000,000 for fiscal year 2003.
SEC. 796. GNMA GUARANTEE FEE.
(a) IN GENERAL.—Section 306(g)(3)(A) of the Na-
tional Housing Act (12 U.S.C. 1721(g)(3)(A)) is amended
by striking ‘‘No fee or charge’’ and all that follows through
‘‘States)’’ and inserting ‘‘The Association shall assess and
collect a fee in an amount equal to 9 basis points’’.
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(b) EFFECTIVE DATE.—The amendment made by this
section shall take effect on October 1, 2002.
SEC. 797. PROTECTION OF STUDENT SPEECH AND ASSOCIA-
TION RIGHTS.
(a) PROTECTION OF RIGHTS.—It is the sense of Con-
gress that no student attending an institution of higher edu-
cation on a full- or part-time basis should, on the basis
of participation in protected speech or protected associa-
tion, be excluded from participation in, be denied the bene-
fits of, or be subjected to discrimination or official sanction
under any education program, activity, or division of the
institution directly or indirectly receiving financial assist-
ance under the Higher Education Act of 1965, whether or
not such program, activity, or division is sponsored or offi-
cially sanctioned by the institution.
(b) CONSTRUCTION.—Nothing in this section shall be
construed—
(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 auspices of the insti-
tution of higher education; or
(2) to prevent an institution of higher education
from taking appropriate and effective action to pre-