I
105TH CONGRESS
2D SESSION
H. R. 3479
To provide for the implementation of recommendations of the National
Commission on the Cost of Higher Education, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 17, 1998
Mr. MCKEON (for himself, Mr. GOODLING, and Mr. CASTLE) introduced the
following bill; which was referred to the Committee on Education and the
Workforce
A BILL
To provide for the implementation of recommendations of
the National Commission on the Cost of Higher Edu-
cation, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Tuition Reduction and
Information Act of 1998’’.
SEC. 2. IMPROVEMENTS IN MARKET INFORMATION AND
PUBLIC ACCOUNTABILITY IN HIGHER EDU-
CATION.
(a) IMPROVED DATA COLLECTION.—
(1) DEVELOPMENT
OF
UNIFORM
METHODOL-
OGY.—The Secretary shall convene a series of fo-
rums to develop a nationally uniform methodology
for reporting costs incurred by postsecondary insti-
tutions in providing postsecondary education.
(2) SEPARATION
OF
UNDERGRADUATE
AND
GRADUATE COSTS.—Such uniform methodology shall
permit the Secretary to collect and disseminate sepa-
rate data with respect to the costs incurred in pro-
viding undergraduate and graduate postsecondary
education.
(3) REDESIGN OF IPEDS.—On the basis of the
methodology developed pursuant to paragraph (1),
the Secretary shall redesign relevant parts of the in-
tegrated postsecondary education data system to im-
prove the usefulness and timeliness of the data col-
lected by such system.
(b) DATA DISSEMINATION.—The Secretary shall es-
tablish a system for the publication, in both printed and
electronic form, of the data collected pursuant to sub-
section (a). Such data shall be available in a form that
permits the review and comparison of the data submis-
sions of individual institutions of higher education. Such
data shall be presented in a form that is easily under-
standable and allows parents and students to make in-
formed decisions based on—
(1) tuition charges published by the institution;
(2) the institution’s cost of educating students
on a full-time equivalent basis;
(3) the general subsidy on a full-time equivalent
basis;
(4) instructional cost by level of instruction;
(5) the total price of attendance; and
(6) the average amount of per student financial
aid received, including and excluding assistance in
the form of loans.
SEC. 3. REGULATORY REFORM.
Title XII of the Higher Education Act of 1965 is
amended by adding at the end the following new section:
‘‘SEC. 1211. REGULATORY REFORM.
‘‘(a) BIENNIAL REVIEW OF REGULATIONS.—In every
even-numbered year (beginning with 1998), the Sec-
retary—
(1) shall review all regulations issued under
title IV of the Higher Education Act of 1965 in ef-
fect at the time of the review that apply to the oper-
ations or activities of any participant in those pro-
grams; and
(2) shall determine whether any such regulation
is no longer necessary in the public interest.
‘‘(b) EFFECT OF DETERMINATION.—The Secretary
shall repeal, consolidate, simplify or otherwise modify any
regulation the Secretary determines to be no longer nec-
essary in the public interest.
‘‘(c) REPORT TO CONGRESS.—The Secretary shall re-
port to the Congress any legislative changes necessary to
permit regulatory simplification under this section.’’.
SEC. 4. DIFFERENTIAL REGULATION.
(a) GAO STUDY.—The Comptroller General shall
conduct a study of the extent to which unnecessary costs
are imposed on postsecondary education as a consequence
of the applicability to postsecondary facilities and equip-
ment of regulations prescribed for purposes of regulating
industrial and commercial enterprises.
(b) REPORT REQUIRED.—Within one year after the
date of enactment of this Act, the Comptroller General
shall submit a report to the Congress on the results of
the study required by subsection (a).
SEC. 5. ANNUAL REPORT ON COST OF HIGHER EDUCATION.
(a) GAO REPORT
REQUIRED.—The Comptroller
General shall conduct an on-going analysis of the follow-
ing:
(1) The increase in tuition compared with other
commodities and services.
(2) Trends in college and university administra-
tive costs, including administrative staffing, ratio of
administrative staff to instructors, ratio of adminis-
trative staff to students, remuneration of adminis-
trative staff, and remuneration of college and univer-
sity presidents or chancellors.
(3) Trends in (A) faculty workload and remu-
neration (including the use of adjunct faculty), (B)
faculty-to-student ratios, (C) number of hours spent
in the classroom by faculty, and (D) tenure prac-
tices, and the impact of such trends on tuition.
(4) Trends in (A) the construction and renova-
tion of academic and other collegiate facilities, and
(B) the modernization of facilities to access and uti-
lize new technologies, and the impact of such trends
on tuition.
(5) The extent to which increases in institu-
tional financial aid and tuition discounting have af-
fected tuition increases, including the demographics
of students receiving such aid, the extent to which
such aid is provided to students with limited need in
order to attract such students to particular institu-
tions or major fields of study, and the extent to
which Federal financial aid, including loan aid, has
been used to offset such increases.
(6) The extent to which Federal, State, and
local laws, regulations, or other mandates contribute
to increasing tuition, and recommendations on re-
ducing those mandates.
(7) The establishment of a mechanism for a
more timely and widespread distribution of data on
tuition trends and other costs of operating colleges
and universities.
(8) The extent to which student financial aid
programs have contributed to changes in tuition.
(9) Trends in State fiscal policies that have af-
fected college costs.
(10) Other related topics determined to be ap-
propriate by the Comptroller General.
(b) ANNUAL REPORT TO CONGRESS.—The Comptrol-
ler General shall submit to the Congress an annual report
on the results of the analysis required by subsection (a).
SEC. 6. VOLUNTARY RETIREMENT INCENTIVE PLANS OR
ARRANGEMENTS.
(a) IN GENERAL.—Section 4 of the Age Discrimina-
tion in Employment Act of 1967 (29 U.S.C. 623) is
amended by adding at the end the following:
‘‘(m) Notwithstanding subsection (f)(2)(B), it shall
not be a violation of subsection (a), (b), (c), (e), or (i)
solely because a plan of an institution of higher education
(as defined in section 1201(a) of the Higher Education
Act of 1965 (20 U.S.C. 1141(a))) offers employees who
are serving under a contract of unlimited tenure (or simi-
lar arrangement providing for unlimited tenure) additional
benefits upon voluntary retirement that are reduced or
eliminated on the basis of age, if—
‘‘(1) such institution does not implement with
respect to such employees any age-based reduction
or elimination of benefits that are not such addi-
tional benefits, except as permitted by other provi-
sions of this Act; and
‘‘(2) with respect to each of such employees
who have, as of the time the plan is adopted, at-
tained the minimum age and satisfied all non-age-
based conditions for receiving a benefit under the
plan, such employee is not precluded on the basis of
age from having 1 opportunity lasting not less than
180-days to elect to retire and to receive the maxi-
mum benefit that would be available to a younger
employee if such younger employee were otherwise
similarly situated to such employee.’’.
(b) CONSTRUCTION.—
(1) APPLICATION.—Nothing in the amendment
made by subsection (a) shall be construed to affect
the application of section 4 of the Age Discrimina-
tion in Employment Act of 1967 (29 U.S.C. 623)
with respect to—
(A) any employer other than an institution
of higher education (as defined in section
1201(a) of the Higher Education Act of 1965);
or
(B) any plan not described in subsection
(m) of section 4 of such Act (as added by sub-
section (a)).
(2) RELATIONSHIP
TO
PROVISIONS
RELATING
TO
VOLUNTARY
EARLY
RETIREMENT
INCENTIVE
PLANS.—Nothing in the amendment made by sub-
section (a) shall be construed to imply that a plan
described in subsection (m) of section 4 of such Act
(as added by subsection (a)) may not be considered
to be a plan described in section 4(f)(2)(B)(ii) of
such Act (29 U.S.C. 623(f)(2)(B)(ii)).
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—This section shall take effect
on the date of enactment of this Act.
(2) EFFECT ON CAUSES OF ACTION EXISTING
BEFORE
DATE
OF
ENACTMENT.—The amendment
made by subsection (a) shall not apply with respect
to any cause of action arising under the Age Dis-
crimination in Employment Act of 1967 prior to the
date of enactment of this Act.
SEC. 7. FUND FOR THE IMPROVEMENT OF POSTSECOND-
ARY EDUCATION.
(a) SPECIAL PROJECTS.—Section 1011 of the Higher
Education Act of 1965 (20 U.S.C. 1035a–11) is amend-
ed—
(1) by striking paragraphs (1), (2), and (3) of
subsection (c) and inserting the following:
‘‘(1) institutional restructuring to improve
learning and promote productivity, efficiency, quality
improvement, and cost and price control;
‘‘(2) articulation agreements between two-year
and four-year institutions;
‘‘(3) evaluation and dissemination of model pro-
grams; and
‘‘(4) international cooperation and student ex-
change among postsecondary educational institu-
tions.’’; and
(2) by striking subsection (d).
(b) AUTHORIZATION OF APPROPRIATIONS.—Section
1004 of such Act (20 U.S.C. 1035a-3) is amended to read
as follows:
‘‘SEC. 1004. 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.’’.
SEC. 8. PERFORMANCE-BASED ORGANIZATION FOR THE
DELIVERY OF FEDERAL STUDENT FINANCIAL
ASSISTANCE.
Title I (as amended by part A of this title) is amend-
ed—
(1) by striking ‘‘TITLE I—GENERAL PRO-
VISIONS’’ and inserting the following:
‘‘TITLE I—GENERAL AND
ADMINISTRATIVE PROVISIONS
‘‘PART A—GENERAL PROVISIONS’’;
and
(2) by adding at the end the following new part:
‘‘PART B—ADMINISTRATIVE PROVISIONS FOR
DELIVERY OF STUDENT FINANCIAL ASSISTANCE
‘‘SEC. 131. PERFORMANCE-BASED ORGANIZATION FOR THE
DELIVERY OF FEDERAL STUDENT FINANCIAL
ASSISTANCE.
‘‘(a) ESTABLISHMENT AND PURPOSE.—
‘‘(1) ESTABLISHMENT.—There is established in
the Department a Performance-Based Organization
(hereafter referred to as the ‘PBO’) which shall be
a discrete management unit responsible for manag-
ing the information systems supporting the pro-
grams authorized under title IV of this Act, as speci-
fied in subsection (b).
‘‘(2) PURPOSES.—The purposes of the PBO
are—
‘‘(A) to improve the level of service to stu-
dents and participants in the programs;
‘‘(B) to reduce the costs of administering
the Federal student financial assistance pro-
grams authorized under title IV;
‘‘(C) to increase the accountability of the
officials responsible for administering the oper-
ational aspects of these programs;
‘‘(D) to provide greater flexibility in the
management of the operational functions of the
Federal student financial assistance programs;
‘‘(E) to integrate the information systems
supporting the Federal student financial assist-
ance programs; and
‘‘(F) to implement an open, common, inte-
grated system for the delivery of student finan-
cial assistance under title IV.
‘‘(b) AUTHORITY.—
‘‘(1) AUTHORITY
OF
SECRETARY.— Notwith-
standing any other provision of this Act, the Sec-
retary shall maintain responsibility for the develop-
ment and promulgation of policy relating to the pro-
grams of student financial assistance under title IV.
In the exercise of its functions, the PBO shall be
subject to the direction of the Secretary. The Sec-
retary shall—
‘‘(A) request the advice of, and work in co-
operation with, the Chief Operating Officer in
developing regulations, policies, administrative
guidance, or procedures affecting the informa-
tion systems administered by the PBO, and
other functions performed by the PBO;
‘‘(B) request cost estimates from the Chief
Operating Officer for system changes required
by specific policies proposed by the Secretary;
‘‘(C) consider the Chief Operating Officer’s
comments and estimates prior to finalizing such
regulations, policies, administrative guidance, or
procedures;
‘‘(D) assist the Chief Operating Officer in
identifying goals for the administration and
modernization of the delivery system for stu-
dent financial assistance under title IV; and
‘‘(E) if necessary, arrange for additional
funding to ensure that the PBO can efficiently
perform its functions.
‘‘(2) FUNCTIONS.—The PBO shall carry out
the following functions:
‘‘(A) All aspects of contracting for the data
and information systems supporting student fi-
nancial assistance under title IV, including the
operational administration of the William D.
Ford Federal Direct Loan Program, but not in-
cluding the development of policy relating to
such programs.
‘‘(B) The administrative, accounting, and
financial management functions of the delivery
system for Federal student assistance, includ-
ing—
‘‘(i) the collection, processing and
transmission of applicant data to students,
institutions and authorized third parties,
as provided for in section 483;
‘‘(ii) technical specifications for soft-
ware development and systems supporting
the delivery of student financial assistance
under title IV;
‘‘(iii) information technology and sys-
tems infrastructure related to the delivery
and management of student financial as-
sistance under title IV;
‘‘(iv) all software and hardware acqui-
sitions and all information technology con-
tracts related to the delivery and manage-
ment of student financial assistance under
title IV; and
‘‘(v) all customer service, training and
user support related to the functions de-
scribed in clauses (i) through (iv).
‘‘(C) Annual development of a budget for
the operations and services of the PBO, in con-
sultation with the Secretary, and for consider-
ation and inclusion in the Department’s annual
budget submission.
‘‘(D) Annual development of goals, in con-
sultation with the Secretary, for the administra-
tion and modernization of the system for deliv-
ery of student financial assistance under title
IV.
‘‘(E) Other functions proposed by the Sec-
retary, and agreed to by the Chief Operating
Officer as are not inconsistent with the func-
tions of the PBO.
‘‘(3) INDEPENDENCE.—In carrying out its
functions, the PBO shall exercise independent con-
trol of its budget allocations and expenditures, per-
sonnel decisions and processes, procurements, and
other administrative and management functions.
‘‘(4) REVIEW OF PBO.—The PBO shall be sub-
ject to the usual and customary Federal audit proce-
dures, and be subject to review by the Inspector
General of the Department.
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—For the
purpose of funding the administrative costs incurred by
the PBO in administering systems supporting programs
under this part, there are authorized to be appropriated
such sums as may be necessary for fiscal year 1999 and
each of the 4 succeeding fiscal years, except that funds
authorized under section 458 shall be made available to
the PBO by the Secretary for administrative costs author-
ized to be funded under that section.
‘‘(d) ORGANIZATIONAL REPORTS.—
‘‘(1) PERFORMANCE PLAN.—Within 6 months
of the hiring of the Chief Operating Officer, and
every 12 months thereafter, the Secretary and the
Chief Operating Officer of the Department shall de-
‘‘(A) an independent financial audit of the
expenditures of both the PBO and programs
administered by it;
‘‘(B) financial and performance require-
ments applicable to the PBO under the Chief
Financial Officer Act of 1990 and the Govern-
ment Performance and Results Act of 1993;
‘‘(C) the results achieved by the PBO dur-
ing the year relative to the goals established in
the organization’s performance plan;
‘‘(D) the results of the evaluations of per-
formance of the Chief Operating Officer and
senior managers under subsections (e)(2) and
(f)(2), including the amounts of bonus com-
pensation awarded to these individuals;
‘‘(E) a discussion of the effectiveness of co-
ordination between the PBO and the Secretary;
‘‘(F) recommendations for legislative and
regulatory changes to improve service to stu-
dents and their families, and to or improve pro-
gram efficiency and integrity; and
‘‘(G) other such information as the Direc-
tor of the Office of Management and Budget
shall prescribe for performance based organiza-
tions.
‘‘(e) CHIEF OPERATING OFFICER.—
‘‘(1) IN
GENERAL.—The management of the
PBO shall be vested in a Chief Operating Officer
who shall be appointed by the Secretary to a 5-year
term and compensated without regard to chapters
33, 51, and 53 of title 5, United States Code. The
Secretary shall appoint the Chief Operating Officer
within 6 months of the date of enactment of this
part. The Secretary shall consult with the Chairmen
of the Committee on Education and the Workforce
of the House of Representatives and the Committee
on Labor and Human Resources of the Senate prior
to making an appointment. The appointment shall
be made on the basis of demonstrated management
ability and expertise in information technology, in-
cluding extensive experience in the financial services
industry, and without regard to political affiliation
or activity. The Secretary may reappoint the Chief
Operating Officer to subsequent terms so long as the
performance of the Chief Operating Officer, as set
forth in the performance agreement, is satisfactory
or better. The Chief Operating Officer may be re-
moved by—
‘‘(A) the President; or
‘‘(B) the Secretary, for misconduct or fail-
ure to meet performance goals set forth in the
performance agreement in paragraph (2).
The President or Secretary shall communicate the
reasons for any such removal to the appropriate
committees of Congress.
‘‘(2) PERFORMANCE
AGREEMENT.—The Sec-
retary and the Chief Operating Officer shall enter
into an annual performance agreement which shall
set forth measurable organization and individual
goals for the Chief Operating Officer in key oper-
ational areas. The agreement shall be subject to re-
view and renegotiation at the end of each term. The
final agreement shall be transmitted to the Commit-
tee on Education and the Workforce of the House
of Representatives and the Committee on Labor and
Human Resources of the Senate, and made publicly
available.
‘‘(3) COMPENSATION.—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 Service 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)(B) of
such title 5. In addition, the Chief Operating Officer
may receive a bonus in an amount up to, but not
in excess of, 50 percent of such annual rate of basic
pay, based upon the Secretary’s evaluation of the
Chief Operating Officer’s performance in relation to
the performance goals set forth in the performance
agreement described in paragraph (2). Payment of
a bonus under this paragraph may be made to the
Chief Operating Officer only to the extent that such
payment does not cause the Chief Operating Offi-
cer’s total aggregate compensation in a calendar
year to equal or exceed the amount of the Presi-
dent’s salary under section 102 of title 3, United
States Code.
‘‘(f) SENIOR MANAGEMENT.—
‘‘(1) IN GENERAL.—The Chief Operating Offi-
cer may appoint up to 5 senior managers as may be
necessary without regard to the provisions of title 5,
United States Code, governing appointments in the
competitive service, and who may be paid without re-
gard to the provisions of chapter 51 and subchapter
III of chapter 53 of such title relating to classifica-
tion and General Schedule pay rates.
‘‘(2) PERFORMANCE
AGREEMENT.—The Chief
Operating Officer shall enter into an annual per-
formance agreement with each senior manager ap-
pointed under this subsection which shall set forth
measurable organization and individual goals in key
operational areas. The agreement shall be subject to
review and renegotiation at the end of each term.
‘‘(3) COMPENSATION.—The Chief Operating
Officer is authorized to pay senior managers at an
annual rate of basic pay not to exceed 75 percent of
the maximum rate of basic pay for the Senior Exec-
utive Service 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 5. In addi-
tion, a senior manager may receive a bonus in an
amount up to, but not in excess of, 50 percent of
such annual rate of basic pay, based upon the Chief
Operating Officer’s evaluation of the manager’s per-
formance in relation to the performance goals set
forth in the performance agreement described in
paragraph (2).
‘‘(g) PERSONNEL FLEXIBILITY.—
‘‘(1) PERSONNEL
CEILINGS.—The PBO shall
not be subject to any ceiling relating to the number
or grade of employees.
‘‘(2) 
ADMINISTRATIVE
FLEXIBILITY.—The
Chief Operating Officer shall work with the Office of
Personnel Management to develop and implement
personnel flexibilities in staffing, classification, and
pay that meet the needs of the PBO, subject to com-
pliance with title 5, United States Code.
‘‘(h) ESTABLISHMENT OF A FAIR AND EQUITABLE
SYSTEM FOR MEASURING STAFF PERFORMANCE.—The
PBO shall establish an annual performance management
system, subject to compliance with title 5, United States
Code and consistent with applicable provisions of law and
regulations, which strengthens the organizational effec-
tiveness of the PBO by providing for establishing goals
or objectives for individual, group, or organizational per-
formance (or any combination thereof), consistent with the
performance plan of the PBO and its performance plan-
ning procedures, including those established under the
Government Performance and Results Act of 1993, and
communicating such goals or objectives to employees.
‘‘(i) PROCUREMENT FLEXIBILITY.—
‘‘(1) IN GENERAL.—Except as provided in this
subsection, the PBO shall abide by all applicable
Federal procurement laws and regulations when pro-
curing property and services. The PBO shall—
‘‘(A) enter into contracts for information
systems supporting the programs authorized
under title IV to carry out the functions set
forth in subsection (b)(2); and
‘‘(B) obtain the services of experts and
consultants without regard to section 3109 of
title 5, United States Code, and set pay in ac-
cordance with such section.
‘‘(2) PERFORMANCE
BASED
SERVICING
CON-
TRACTS.—The Chief Operating Officer shall, to the
extent practicable, maximize the use of performance
based servicing contracts, consistent with guidelines
for such contracts published by the Office of Federal
Procurement Policy, to achieve cost savings and im-
prove service.
‘‘(3) FEE FOR SERVICE ARRANGEMENTS.—The
Chief Operating Officer shall, to the extent prac-
ticable and consistent with the purpose of the PBO,
utilize services available outside of the Federal Gov-
ernment in the delivery of Federal student financial
assistance. To achieve this purpose, the PBO is au-
thorized to pay fees to an organization that are
equivalent to those paid by other entities for such
services, if the Chief Operating Officer determines
that such organization currently provides an infor-
mation system or service that meets the require-
ments of the PBO.
‘‘(j) FOCUS GROUPS.—To facilitate information shar-
ing and customer involvement, the Chief Operating Officer
may establish focus groups composed of students, institu-
tions, and other participants in the programs authorized
by title IV to provide advice on student aid delivery mat-
ters.
‘‘SEC. 132. ADMINISTRATIVE SIMPLIFICATION OF STUDENT
AID DELIVERY.
‘‘(a) IN GENERAL.—The Secretary and the Chief Op-
erating Officer shall improve the efficiency and effective-
ness of the student aid delivery system by encouraging and
participating in the establishment of voluntary consensus
standards and requirements for the electronic trans-
mission of information necessary for the administration of
programs under title IV.
‘‘(b) ADOPTION OF VOLUNTARY CONSENSUS STAND-
ARDS.—Except with respect to the common financial re-
porting form under section 483(a), the Secretary shall
adopt voluntary consensus standards for transactions re-
quired under title IV, and common data elements for such
transactions, to enable information to be exchanged elec-
tronically between systems administered by the Depart-
ment and among participants in the Federal student aid
delivery system.
‘‘(c) REQUIREMENTS FOR ADOPTION OF VOLUNTARY
CONSENSUS
STANDARDS.—Any 
voluntary 
consensus
standard adopted under this section shall—
‘‘(1) be a standard that has been developed,
adopted, or modified by a standard setting organiza-
tion that is open to the participation of the various
entities engaged in the delivery of Federal student
financial assistance; and
‘‘(2) be consistent with the objective of reducing
the administrative costs of delivering student finan-
cial assistance under title IV.
‘‘(d) PARTICIPATION IN STANDARD SETTING ORGA-
NIZATIONS.—
‘‘(1) The Chief Operating Officer shall partici-
pate in the activities of standard setting organiza-
tions in carrying out the provisions of this section.
‘‘(2) The Chief Operating Officer shall encour-
age higher education groups seeking to develop com-
mon forms, standards, and procedures in support of
the delivery of Federal student financial assistance
to conduct these activities within a standard setting
organization.
‘‘(3) The Chief Operating Officer may pay nec-
essary dues and fees associated with participating in
standard setting organizations pursuant to this sub-
section from funds available under subsection (j).
‘‘(e) PROCEDURES FOR ADOPTION AND IMPLEMEN-
TATION
OF VOLUNTARY CONSENSUS STANDARDS.—In
adopting voluntary consensus standards and implementa-
tion timetables under this section, including modifications
of existing standards, the Secretary shall follow the proce-
dures for negotiated rulemaking in section 492.
‘‘(f) INITIAL VOLUNTARY CONSENSUS STANDARDS
TO BE ADOPTED.—Through coordinated participation be-
tween the Chief Operating Officer and standard setting
organizations, the initial standards adopted by the Sec-
retary shall include the following:
‘‘(1) ELECTRONIC PERSONAL IDENTIFIER NUM-
BER.—The Secretary shall adopt standards for a
single electronic personal identifier number for stu-
dents receiving assistance under title IV.
‘‘(2) ELECTRONIC SIGNATURE.—The Secretary,
in coordination with the Secretary of Commerce,
shall adopt standards specifying procedures for the
electronic transmission and authentication of signa-
tures with respect to transactions requiring a signa-
ture under title IV.
‘‘(3) SINGLE INSTITUTIONAL IDENTIFIER.—The
Secretary shall adopt standards for a single identi-
fier for eligible institutions under title IV.
‘‘(g) USE OF CLEARINGHOUSES.—Nothing in this
section shall restrict the ability of participating institu-
tions and lenders from using a clearinghouse to comply
with the standards for the exchange of information estab-
lished under this section.
‘‘(h) APPLICABILITY TO CURRENT SYSTEMS.—
‘‘(1) GENERAL RULE.—Except as provided in
paragraphs (2) and (3), this section shall apply to
all Department of Education information systems
supporting the delivery of programs under title IV
no later than 12 months from the date of enactment
of this part.
‘‘(2) NATIONAL
STUDENT
LOAN
DATA
SYS-
TEM.—This section shall apply to sections 485B(e)
and (f) no later than 18 months after the date of
enactment of this part.
‘‘(3) INTEGRATED POSTSECONDARY EDUCATION
DATA SYSTEM.—The Secretary shall coordinate the
adoption of voluntary consensus standards under
this section to ensure that standards are compatible
with the integrated postsecondary education data
system (IPEDS).
‘‘(i) DATA SECURITY.—Any entity that maintains or
transmits information under a transaction covered by this
section shall maintain reasonable and appropriate admin-
istrative, technical, and physical safeguards—
‘‘(1) to ensure the integrity and confidentiality
of the information; and
‘‘(2) to protect against any reasonably antici-
pated security threats, or unauthorized uses or dis-
closures of the information.
‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated in any fiscal year or
made available from funds appropriated to carry out ac-
tivities in this section in any fiscal year such sums as may
be necessary to carry out the provisions of this section,
except that if no funds are appropriated pursuant to this
subsection, the Secretary shall make funds available to
carry out this section from amounts appropriated for the
operations and expenses of the Department of Education.
‘‘(k) DEFINITIONS.—For purposes of this section:
‘‘(1) The term ‘voluntary consensus standard’
means a standard developed or used by a standard
setting organization accredited by the American Na-
tional Standards Institute.
‘‘(2) The term ‘standard setting organization’
means a standard setting organization accredited by