neering Education’’ and inserting in lieu thereof ‘‘Edu-
cation and Human Resources’’.
(d) EDUCATION
FOR ECONOMIC SECURITY ACT
AMENDMENTS.—Section 107 of Education for Economic
Security Act (20 U.S.C. 3917) is repealed.
(e) TECHNICAL
AMENDMENT.—The second sub-
section (g) of section 3 of the National Science Foundation
Act of 1950 is repealed.
SEC. 125. INDIRECT COSTS.
(a) MATCHING FUNDS.—Matching funds required
pursuant to section 204(a)(2)(C) of the Academic Re-
search Facilities Modernization Act of 1988 (42 U.S.C.
1862c(a)(2)(C)) shall not be considered facilities costs for
purposes of determining indirect cost rates.
(b) REPORT.—The Director of the Office of Science
and Technology Policy, in consultation with other relevant
agencies, shall prepare a report analyzing what steps
would be needed to—
(1) reduce by 10 percent the proportion of Fed-
eral assistance to institutions of higher education
that are allocated for indirect costs; and
(2) reduce the variance among indirect cost
rates of different institutions of higher education, in-
cluding an evaluation of the relative benefits and
burdens of each option on institutions of higher edu-
cation. Such report shall be transmitted to the Con-
gress no later than December 31, 1996.
SEC. 126. FINANCIAL DISCLOSURE.
Persons temporarily employed by or at the Founda-
tion shall be subject to the same financial disclosure re-
quirements and related sanctions under the Ethics in Gov-
ernment Act of 1978 as are permanent employees of the
Foundation in equivalent positions.
SEC. 127. EDUCATIONAL LEAVE OF ABSENCE FOR ACTIVE
DUTY.
In order to be eligible to receive funds from the Foun-
dation after September 30, 1996, an institution of higher
education must provide that whenever any student of the
institution who is a member of the National Guard, or
other reserve component of the Armed Forces of the Unit-
ed States, is called or ordered to active duty, other than
active duty for training, the institution shall grant the
member a military leave of absence from their education.
Persons on military leave of absence from their institution
shall be entitled, upon release from military duty, to be
restored to the educational status they had attained prior
to their being ordered to military duty without loss of aca-
demic credits earned, scholarships or grants awarded, or
tuition and other fees paid prior to the commencement of
the military duty. It shall be the duty of the institution
to refund tuition or fees paid or to credit the tuition and
fees to the next semester or term after the termination
of the educational military leave of absence at the option
of the student.
SEC. 128. SCIENCE STUDIES INSTITUTE.
(a) AMENDMENT.—Section 822 of the National De-
fense Authorization Act for Fiscal 1991 (42 U.S.C. 6686)
is amended—
(1) by striking ‘‘Critical Technologies Institute’’
in the section heading and in subsection (a), and in-
serting in lieu thereof ‘‘Science Studies Institute’’;
(2) in subsection (b) by striking ‘‘As deter-
mined by the chairman of the committee referred to
in subsection (c), the’’ and inserting in lieu thereof
‘‘The’’;
(3) by striking subsection (c), and redesignating
subsections (d), (e), (f), and (g) as subsections (c),
(d), (e), and (f), respectively;
(4) in subsection (c), as so redesignated by
paragraph (3) of this subsection—
(A) by inserting ‘‘science and’’ after ‘‘de-
velopments and trends in’’ in paragraph (1);
(B) by striking ‘‘with particular emphasis’’
in paragraph (1) and all that follows through
the end of such paragraph and inserting in lieu
thereof ‘‘and developing and maintaining rel-
evant informational and analytical tools.’’;
(C) by striking ‘‘to determine’’ and all that
follows through ‘‘technology policies’’ in para-
graph (2) and inserting in lieu thereof ‘‘with
particular attention to the scope and content of
the Federal science and technology research
and develop portfolio as it affects interagency
and national issues’’;
(D) by amending paragraph (3) to read as
follows:
‘‘(3) Initiation of studies and analysis of alter-
natives available for ensuring the long-term strength
of the United States in the development and applica-
tion of science and technology, including appropriate
roles for the Federal Government, State govern-
ments, private industry, and institutions of higher
education in the development and application of
science and technology.’’;
(E) by inserting ‘‘science and’’ after ‘‘Ex-
ecutive branch on’’ in paragraph (4)(A); and
(F) by amending paragraph (4)(B) to read
as follows:
‘‘(B) to the interagency committees and
panels of the Federal Government concerned
with science and technology.’’;
(5) in subsection (d), as so redesignated by
paragraph (3) of this subsection, by striking ‘‘sub-
section (d)’’ and inserting in lieu thereof ‘‘subsection
(c)’’; and
(6) by amending subsection (f), as so redesig-
nated by paragraph (3) of this subsection, to read
as follows:
‘‘(f) SPONSORSHIP.—The Director of the Office of
Science and Technology Policy shall be the sponsor of the
Institute.’’.
(b) CONFORMING USAGE.—All references in Federal
law or regulations to the Critical Technologies Institute
shall be considered to be references to the Science Studies
Institute.
SEC. 129. EDUCATIONAL IMPACT.
(a) FINDINGS.—The Congress finds that—
(1) Federal research funds made available to
institutions of higher education often create incen-
tives for such institutions to emphasize research over
undergraduate teaching and to narrow the focus of
their graduate programs; and
(2) National Science Foundation funds for Re-
search and Related Activities should be spent in the
manner most likely to improve the quality of under-
graduate and graduate education in institutions of
higher education.
(b) EDUCATIONAL IMPACT.—(1) The impact that a
grant or cooperative agreement by the National Science
Foundation would have on undergraduate and graduate
education at an institution of higher education shall be
a factor in any decision whether to award such grant or
agreement to that institution.
(2) Paragraph (1) shall be effective with respect to
any grant or cooperative agreement awarded after Sep-
tember 30, 1997.
(c) REPORT.—The Director shall provide a plan for
the implementation of subsection (b) of this section, no
later than December 31, 1996, to the Committee on
Science of the House of Representatives and the Commit-
tee on Commerce, Science, and Transportation and the
Committee on Labor and Human Resources of the Senate.
SEC. 130. DIVISIONS OF THE FOUNDATION.
(a) AMENDMENT.—Section 8 of the National Science
Foundation Act of 1950 (42 U.S.C. 1866) is amended by
inserting ‘‘The Director may appoint, in consultation with
the Board, not more than 6 Assistant Directors to assist