H. R. 6—189
‘‘(6) Funds management, administrative management, and
acquisition of equipment for use in strengthening funds
management.
‘‘(7) Joint use of facilities, such as laboratories and libraries.
‘‘(8) Establishing or improving a development office to
strengthen or improve contributions from alumni and the pri-
vate sector.
‘‘(9) Establishing or improving an endowment fund.
‘‘(10) Creating or improving facilities for Internet or other
distance learning academic instruction capabilities, including
purchase or rental of telecommunications technology equipment
or services.
‘‘(11) Establishing or enhancing a program of teacher edu-
cation designed to qualify students to teach in public
elementary schools and secondary schools.
‘‘(12) Establishing community outreach programs that will
encourage elementary school and secondary school students
to develop the academic skills and the interest to pursue post-
secondary education.
‘‘(13) Expanding the number of Hispanic and other under-
represented graduate and professional students that can be
served by the institution by expanding courses and institutional
resources.
‘‘(14) Other activities proposed in the application submitted
pursuant to section 504 that—
‘‘(A) contribute to carrying out the purposes of this
title; and
‘‘(B) are approved by the Secretary as part of the
review and acceptance of such application.
‘‘(c) ENDOWMENT FUND LIMITATIONS.—
‘‘(1) PORTION
OF
GRANT.—A Hispanic-serving institution
may not use more than 20 percent of the grant funds provided
under this title for any fiscal year for establishing or improving
an endowment fund.
‘‘(2) MATCHING REQUIRED.—A Hispanic-serving institution
that uses any portion of the grant funds provided under this
title for any fiscal year for establishing or improving an endow-
ment fund shall provide from non-Federal funds an amount
equal to or greater than the portion.
‘‘(3) COMPARABILITY.—The provisions of part C of title III
regarding the establishment or increase of an endowment fund,
that the Secretary determines are not inconsistent with this
subsection, shall apply to funds used under paragraph (1).
‘‘SEC. 504. DURATION OF GRANT.
‘‘(a) AWARD PERIOD.—
‘‘(1) IN GENERAL.—The Secretary may award a grant to
a Hispanic-serving institution under this title for 5 years.
‘‘(2) WAITOUT PERIOD.—A Hispanic-serving institution shall
not be eligible to secure a subsequent 5-year grant award
under this title until 2 years have elapsed since the expiration
of the institution’s most recent 5-year grant award under this
title, except that for the purpose of this subsection a grant
under section 514(a) shall not be considered a grant under
this title.
‘‘(b) PLANNING GRANTS.—Notwithstanding subsection (a), the
Secretary may award a grant to a Hispanic-serving institution
H. R. 6—190
under this title for a period of 1 year for the purpose of preparation
of plans and applications for a grant under this title.
‘‘SEC. 505. SPECIAL RULE.
‘‘No Hispanic-serving institution that is eligible for and receives
funds under this title may receive funds under part A or B of
title III during the period for which funds under this title are
awarded.
‘‘PART B—GENERAL PROVISIONS
‘‘SEC. 511. ELIGIBILITY; APPLICATIONS.
‘‘(a) 
INSTITUTIONAL
ELIGIBILITY.—Each 
Hispanic-serving
institution desiring to receive assistance under this title shall sub-
mit to the Secretary such enrollment data as may be necessary
to demonstrate that the institution is a Hispanic-serving institution
as defined in section 502, along with such other data and informa-
tion as the Secretary may by regulation require.
‘‘(b) APPLICATIONS.—
‘‘(1) APPLICATIONS
REQUIRED.—Any institution which is
eligible for assistance under this title shall submit to the Sec-
retary an application for assistance at such time, in such form,
and containing such information, as may be necessary to enable
the Secretary to evaluate the institution’s need for assistance.
Subject to the availability of appropriations to carry out this
title, the Secretary may approve an application for a grant
under this title only if the Secretary determines that—
‘‘(A) the application meets the requirements of sub-
section (b); and
‘‘(B) the institution is eligible for assistance in accord-
ance with the provisions of this title under which the
assistance is sought.
‘‘(2) PRELIMINARY
APPLICATIONS.—In carrying out para-
graph (1), the Secretary may develop a preliminary application
for use by Hispanic-serving institutions applying under this
title prior to the submission of the principal application.
‘‘(c) CONTENTS.—A Hispanic-serving institution, in the institu-
tion’s application for a grant, shall—
‘‘(1) set forth, or describe how the institution will develop,
a comprehensive development plan to strengthen the institu-
tion’s academic quality and institutional management, and
otherwise provide for institutional self-sufficiency and growth
(including measurable objectives for the institution and the
Secretary to use in monitoring the effectiveness of activities
under this title);
‘‘(2) include a 5-year plan for improving the assistance
provided by the Hispanic-serving institution to Hispanic stu-
dents and other low-income individuals;
‘‘(3) set forth policies and procedures to ensure that Federal
funds made available under this title for any fiscal year will
be used to supplement and, to the extent practical, increase
the funds that would otherwise be made available for the
purposes of section 501(b), and in no case supplant those funds;
‘‘(4) set forth policies and procedures for evaluating the
effectiveness in accomplishing the purpose of the activities for
which a grant is sought under this title;
H. R. 6—191
‘‘(5) provide for such fiscal control and fund accounting
procedures as may be necessary to ensure proper disbursement
of and accounting for funds made available to the institution
under this title;
‘‘(6) provide that the institution will comply with the limita-
tions set forth in section 516;
‘‘(7) describe in a comprehensive manner any proposed
project for which funds are sought under the application and
include—
‘‘(A) a description of the various components of the
proposed project, including the estimated time required
to complete each such component;
‘‘(B) in the case of any development project that con-
sists of several components (as described by the institution
pursuant to subparagraph (A)), a statement identifying
those components which, if separately funded, would be
sound investments of Federal funds and those components
which would be sound investments of Federal funds only
if funded under this title in conjunction with other parts
of the development project (as specified by the institution);
‘‘(C) an evaluation by the institution of the priority
given any proposed project for which funds are sought
in relation to any other projects for which funds are sought
by the institution under this title, and a similar evaluation
regarding priorities among the components of any single
proposed project (as described by the institution pursuant
to subparagraph (A));
‘‘(D) a detailed budget showing the manner in which
funds for any proposed project would be spent by the
institution; and
‘‘(E) a detailed description of any activity which
involves the expenditure of more than $25,000, as identified
in the budget referred to in subparagraph (D);
‘‘(8) provide for making reports, in such form and containing
such information, as the Secretary may require to carry out
the Secretary’s functions under this title, including not less
than one report annually setting forth the institution’s progress
toward achieving the objectives for which the funds were
awarded and for keeping such records and affording such access
to such records, as the Secretary may find necessary to assure
the correctness and verification of such reports; and
‘‘(9) include such other information as the Secretary may
prescribe.
‘‘(d) PRIORITY.—With respect to applications for assistance
under this section, the Secretary shall give priority to an application
that contains satisfactory evidence that the Hispanic-serving
institution has entered into or will enter into a collaborative
arrangement with at least one local educational agency or commu-
nity-based organization to provide such agency or organization with
assistance (from funds other than funds provided under this title)
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.
‘‘(e) ELIGIBILITY DATA.—The Secretary shall use the most recent
and relevant data concerning the number and percentage of stu-
dents receiving need-based assistance under title IV in making
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eligibility determinations and shall advance the base-year for the
determinations forward following each annual grant cycle.
‘‘SEC. 512. WAIVER AUTHORITY AND REPORTING REQUIREMENT.
‘‘(a) WAIVER REQUIREMENTS; NEED-BASED ASSISTANCE STU-
DENTS.—The Secretary may waive the requirements set forth in
section 502(a)(2)(A)(i) in the case of an institution—
‘‘(1) that is extensively subsidized by the State in which
the institution is located and charges low or no tuition;
‘‘(2) that serves a substantial number of low-income stu-
dents as a percentage of the institution’s total student popu-
lation;
‘‘(3) that is contributing substantially to increasing higher
education opportunities for educationally disadvantaged, under-
represented, or minority students, who are low-income individ-
uals;
‘‘(4) which is substantially increasing higher educational
opportunities for individuals in rural or other isolated areas
which are unserved by postsecondary institutions; or
‘‘(5) wherever located, if the Secretary determines that
the waiver will substantially increase higher education
opportunities appropriate to the needs of Hispanic Americans.
‘‘(b) WAIVER DETERMINATIONS; EXPENDITURES.—
‘‘(1) WAIVER DETERMINATIONS.—The Secretary may waive
the requirements set forth in section 502(a)(2)(A)(ii) if the Sec-
retary determines, based on persuasive evidence submitted by
the institution, that the institution’s failure to meet the require-
ments is due to factors which, when used in the determination
of compliance with the requirements, distort such determina-
tion, and that the institution’s designation as an eligible institu-
tion under part A is otherwise consistent with the purposes
of this title.
‘‘(2) EXPENDITURES.—The Secretary shall submit to Con-
gress every other year a report concerning the institutions
that, although not satisfying the requirements of section
502(a)(2)(A)(ii), have been determined to be eligible institutions
under part A. Such report shall—
‘‘(A) identify the factors referred to in paragraph (1)
that were considered by the Secretary as factors that dis-
torted the determination of compliance with clauses (i)
and (ii) of section 502(a)(2)(A); and
‘‘(B) contain a list of each institution determined to
be an eligible institution under part A including a state-
ment of the reasons for each such determination.
‘‘SEC. 513. APPLICATION REVIEW PROCESS.
‘‘(a) REVIEW PANEL.—All applications submitted under this title
by Hispanic-serving institutions shall be read by a panel of readers
composed of individuals who are selected by the Secretary and
who include individuals representing Hispanic-serving institutions.
The Secretary shall ensure that no individual assigned under this
section to review any application has any conflict of interest with
regard to the application that might impair the impartiality with
which the individual conducts the review under this section.
‘‘(b) INSTRUCTION.—All readers selected by the Secretary shall
receive thorough instruction from the Secretary regarding the
evaluation process for applications submitted under this title that
are consistent with the provisions of this title, including—